An empirical examination of startup success: studies on the antecedents and consequences of startup relational embeddedness and technology ambidexterity
University of Wisconsin--Whitewater
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Increasingly, entrepreneurial activity is gaining momentum, with almost 10% of the United States population engaged in either starting a business or already owning a startup. Most economic transactions have relational undertones, especially when it concerns startups. This dissertation draws upon relational embeddedness literature and information processing theory to advance a startup governance model highlighting the mediating effect of relational embeddedness on startup success. In addition, this dissertation recognizes technology in the current environment as a critical means to innovate, to introduce novelty, and to grow the business. Consequently, it draws from Information Technology (IT) and dynamic capabilities literature to establish the antecedents of technology ambidexterity and its effects on startup success. Primary survey instruments, from both existing and adapted scales, were used to capture relational embeddedness, technology ambidexterity, their antecedents, and startup success. Partial Least Squares structural equation modeling technique was used to test the structural model. In the first essay (Chapter 2), findings show that informal coordination mechanisms have a positive impact on interorganizational trust, cooperation, and network building, while formal coordination mechanisms have a positive impact on interorganizational network building. Interorganizational cooperation has a positive impact on startup success, and firm size positively moderates the impact of trust on startup success. In the second essay (Chapter 3), findings show that technology ambidexterity positively impacts startup success. Shared IT vision, IT strategic thinking and IT-enabled market orientation have significant positive impacts on technology ambidexterity, while technology ambidexterity positively mediates between these antecedents and startup success. Therefore, this dissertation has important academic and practical implications for startups, as they strive to achieve success in a hypercompetitive landscape.
New business enterprises
Success in business
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