Framing activities and the co-evolvement of products and operations in new ventures

New ventures need to simultaneously develop both their first offering and the operations of the venture itself. This paper extends the notion of problem-solution co-evolvement from product design to venture design, presenting results from four new Finnish ventures in the midst of creating their first offering market-ready. Based on qualitative analysis of interviews of the entrepreneur teams of these ventures, it is suggested that differences in how the venture idea is initially approached translates into different types of co-evolvement between the offering and the operations of the new ventures. In two of the companies, the product frame had been collaboratively created and remained relatively stable. Development activities within product, business model and working practices did not require large changes in the other arenas. In contrast, the product frame was shifting in the two other ventures, and the coevolvement of the product problem and solutions had major implications for the business model and operations, and vice versa. The entrepreneurs in these companies would have seemingly benefited from having more structured systematic micro-level working practices to balance the variance in the offering and operations. By conceptually linking venture formation to co-evolvement resulting from the initial frame of development efforts, the study serves to strengthen the link between product development and entrepreneurship research.