Title: Entry, Growth, and Exit Strategies of Chinese Technology Start-Ups
Abstract:A defining characteristic of an entrepreneurial venture is its motivation to grow (Schumpeter, 1954). Such motivation is usually fuelled by the desire of entrepreneurs to improve venture performance, ...A defining characteristic of an entrepreneurial venture is its motivation to grow (Schumpeter, 1954). Such motivation is usually fuelled by the desire of entrepreneurs to improve venture performance, as well as by the excitement of associating with a growing entrepreneurial venture. Broadly speaking, several strategic alternatives are available for entrepreneurial firms. Initially, most new ventures pursue internally generated growth, where the primary goal is generic expansion. Obviously, there is a limit to this growth, as no firm is capable of generating internally driven expansion indefinitely because of managerial and organizational capabilities. Under circumstances that lead to market failure, even in modern Western economies, a firm has to engage in acquisitions of other firms to achieve boundary expansion. Although the traditional strategy for growth has been either through generic expansion or through acquisitions, more recently, an unprecedented number of firms has been entering a variety of interorganizational relationships, such as strategic alliances and joint ventures, to achieve growth. This strategy of growth does not so much reflect the focal firm’s inability to possess all the necessary resources to undertake generic expansion alone or to acquire other firms. Rather, it represents the firm’s efforts to gain access to complementary assets, thus reducing environmental uncertainties. Finally, many entrepreneurs expand the firm all the way to the limits of growth, where industry attractiveness begins to decline, existing resources cannot be used any more efficiently, and additional resources cannot be obtained. Subsequently, whenRead More
Publication Year: 2004
Publication Date: 2004-03-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 5
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