IT Investment: The Unexpected Effects on Entrepreneurial Spawning
نویسندگان
چکیده
Despite the growing interests in entrepreneurial spawning, whereby employees leave an incumbent to become entrepreneurs, there is a lack of studies examining the impact of firm strategies on the process. However, IS literature has documented various influences of IT on firms. This study attempts to bridge these two streams of research by investigating the impact of IT investment (as a form of firm strategy) on entrepreneurial spawning. Drawing upon the IT-agility theoretical lens, we propose that IT investment may impede firms’ entrepreneurial spawning. In addition, firms with higher IT investment are less adversely affected by spawns. We devise thorough empirical strategies to analyze Fortune 500 manufacturing firms from 1990 to 2006. Our study potentially contributes to the current research in entrepreneurship and business value of IT, and sheds novel insights on the retention of talents, exploitation of internal innovations and deterrence of potential competition.
منابع مشابه
Disclosure, Venture Capital and Entrepreneurial Spawning
Venture capital funds have been facing increasing regulatory scrutiny since the 2007 financial crisis, particularly in respect of calls for increased disclosure requirements. In this paper, we examine whether more stringent securities regulation helps or hinders the supply and performance of venture capital as well as new business creation (i.e., entrepreneurial spawning). Based on data from 34...
متن کاملEntrepreneurial Spawning and Firm Characteristics
We analyze the implications of entrepreneurial spawning for a variety of firm characteristics such as size, focus, profitability, and innovativeness. We examine the dynamics of spawning over time. Our model accounts for much of the empirical evidence relating to the relation between spawning and firm characteristics. Firms that have higher patent quality spawn more, as do firms that have higher...
متن کاملENTREPRENEURIAL SPAWNING AND FIRM CHARACTERISTICS ∗ Michel
We analyze the implications of entrepreneurial spawning for a variety of firm characteristics such as size, focus, profitability, and innovativeness. We examine the dynamics of spawning over time. Our model accounts for much of the empirical evidence relating to the relation between spawning and firm characteristics. Firms that have higher patent quality spawn more, as do firms that have higher...
متن کاملDoes Overconfidence Affect Entrepreneurial Investment?
This research examines the affect of overconfidence on the entrepreneurial investment choices of individuals. We argue that individual overconfidence is associated with more aggressive entrepreneurial investment decisions. We show that the propensity of an individual to begin startup activities is positively associated with the individual's level of overconfidence. Furthermore, overconfidence i...
متن کاملEntrepreneurial Risk Aversion, Net Worth Effects and Real Fluctuations
This paper examines the combined effect of asymmetric information and private entrepreneurial risk aversion on investment decisions. The standard optimal debt contract becomes modified by the introduction of insurance and a risk premium that entrepreneurs demand due to the uncertainty of their investment returns: the private equity premium. In general equilibrium, the private equity premium may...
متن کامل