Skip to main content
SpringerLink
Log in

Entrepreneurial Startups (de novo), Diversifying Entrants (de alio) and Incumbent Firms

  • Living reference work entry
  • First Online:
Book cover The Palgrave Encyclopedia of Strategic Management

Abstract

We discuss the differences between incumbent firms and new entrants, indicating their heterogeneity in terms of technological capabilities, complementary assets and cognitive frames. Moreover, we highlight the heterogeneity within new entrants, based on their firm-level prior experience in related industries or their founder-level prior experiences as academics, users or ex-employees of existing firms.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Agarwal, R., and S.K. Shah. 2014. Knowledge sources of entrepreneurship: Firm formation by academic, user and employee innovators. Research Policy 43: 1109–1133.

    Article  Google Scholar 

  • Agarwal, R., R. Echambadi, A.M. Franco, and M. Sarkar. 2004. Knowledge transfer through inheritance: Spin-out generation, development, and survival. Academy of Management Journal 47: 501–522.

    Article  Google Scholar 

  • Bayus, B.L., and R. Agarwal. 2007. The role of pre-entry experience, entry timing, and product technology strategies in explaining firm survival. Management Science 53: 1887–1902.

    Article  Google Scholar 

  • Carroll, G.R., L.S. Bigelow, M.D.L. Seidel, and L.B. Tsai. 1996. The fates of de novo and de alio producers in the American automobile industry 1885–1981. Strategic Management Journal 17: 117–137.

    Article  Google Scholar 

  • Chen, P.-L., C. Williams, and R. Agarwal. 2012. Growing pains: Pre-entry experience and the challenge of transition to incumbency. Strategic Management Journal 33: 252–276.

    Article  Google Scholar 

  • Christensen, C.M., and J.L. Bower. 1996. Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal 17: 197–218.

    Article  Google Scholar 

  • Cooper, A.C., and D. Schendel. 1976. Strategic responses to technological threats. Business Horizons 19: 61–69.

    Article  Google Scholar 

  • Ganco, M., and R. Agarwal. 2009. Performance differentials between diversifying entrants and entrepreneurial start-ups: A complexity approach. Academy of Management Review 34: 228–252.

    Article  Google Scholar 

  • Gort, M., and S. Klepper. 1982. Time paths in the diffusion of product innovations. Economic Journal 92: 630–653.

    Article  Google Scholar 

  • Helfat, C.E., and M.B. Lieberman. 2002. The birth of capabilities: Market entry and the importance of pre-history. Industrial and Corporate Change 11: 725–760.

    Article  Google Scholar 

  • Helfat, C.E., and R.S. Raubitschek. 2000. Product sequencing: Co-evolution of knowledge, capabilities and products. Strategic Management Journal 21: 961–979.

    Article  Google Scholar 

  • Henderson, R.M., and K.B. Clark. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly 35: 9–30.

    Article  Google Scholar 

  • Khessina, O.M., and G.R. Carroll. 2008. Product demography of de novo and de alio firms in the optical disk drive industry, 1983–1999. Organization Science 19: 25–38.

    Article  Google Scholar 

  • King, A.A., and C.L. Tucci. 2002. Incumbent entry into new market niches: The role of experience and managerial choice in the creation of dynamic capabilities. Management Science 48: 171–186.

    Article  Google Scholar 

  • Klepper, S., and K.L. Simons. 2000. Dominance by birthright: Entry of prior radio producers and competitive ramifications in the US television receiver industry. Strategic Management Journal 21: 997–1016.

    Article  Google Scholar 

  • Klepper, S., and S. Sleeper. 2005. Entry by spin-offs. Management Science 51: 1291–1306.

    Article  Google Scholar 

  • Mitchell, W. 1989. Whether and when: Probability and timing of incumbents entry into emerging industrial subfields. Administrative Science Quarterly 34: 208–230.

    Article  Google Scholar 

  • Rothaermel, F.T., and C.W.L. Hill. 2005. Technological discontinuities and complementary assets: A longitudinal study of industry and firm performance. Organization Science 16: 52–70.

    Article  Google Scholar 

  • Schumpeter, J.A. 1942. Capitalism, socialism, and democracy. New York: Harper.

    Google Scholar 

  • Shah, S.K., and M. Tripsas. 2007. The accidental entrepreneur: The emergent and collective process of user entrepreneurship. Strategic Entrepreneurship Journal 1: 123–140.

    Article  Google Scholar 

  • Shane, S.A. 2004. Academic entrepreneurship: University spin-offs and wealth creation. Cheltenham: Edward Elgar.

    Book  Google Scholar 

  • Teece, D.J. 1986. Profiting from technological innovation. Research Policy 15: 285–305.

    Article  Google Scholar 

  • Tripsas, M. 1997. Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal 18: 119–142.

    Article  Google Scholar 

  • Tripsas, M., and G. Gavetti. 2000. Capabilities, cognition, and inertia: Evidence from digital imaging. Strategic Management Journal 21: 1147–1161.

    Article  Google Scholar 

  • Tushman, M.L., and P. Anderson. 1986. Technological discontinuities and organizational environments. Administrative Science Quarterly 31: 439–465.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Management and Organization Department, Robert H Smith School of Business, 4512 Van Munching Hall, College Park, MD, 20742, USA

    Rajshree Agarwal

  2. University of North Carolina, Chapel Hill, USA

    Mahka Moeen

Authors
  1. Rajshree Agarwal
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mahka Moeen
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Rajshree Agarwal .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

Copyright information

© 2016 The Author(s)

About this entry

Cite this entry

Agarwal, R., Moeen, M. (2016). Entrepreneurial Startups (de novo), Diversifying Entrants (de alio) and Incumbent Firms. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_81-1

Download citation

  • DOI: https://doi.org/10.1057/978-1-349-94848-2_81-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation