Skip to main navigation menu Skip to main content Skip to site footer

Vol. 6 No. 4 (2018)
Foreign Entrepreneurs in China

Other Articles

Organisational Learning in Startup Development and International Growth

https://doi.org/10.15678/EBER.2018.060407

Published 2018-12-18

  • Jurgita Sekliuckiene
    • ,
  • Rimgaile Vaitkiene
    • ,
  • Vestina Vainauskiene

Jurgita Sekliuckiene
Kaunas University of Technology

Rimgaile Vaitkiene
Kaunas University of Technology

Vestina Vainauskiene
Kaunas University of Technology

Abstract

Objective: This article explores the conceptual link between the development stages of a startup and organisational learning with the aim to conceptualise the practices of organisational learning levels emerging in specific life cycle stages of a global startup.

Research Design & Methods: This article presents a review as well as a synthesis of the extant literature. The research integrates the theories of organisational learning and international entrepreneurship, and offers a conceptual framework that reveals interactions between the constructs in question.

Findings: The results suggest that the ontological level and the processes of organisation learning can vary in global startups at different life cycle stages. In addition, the research findings also indicate that, for a global startup, for a successful transition from one cycle to another, learning processes of cyclical entrepreneurship learning have to take place.

Implications & Recommendations: The findings of the study have implications in particular for global startup founders and their team members who would like to establish entrepreneurial businesses. Organisation learning practices should be applied in enterprises from the very beginning of the bootstrapping phase with the goal to develop a culture of learning and sharing knowledge when developing the startup idea.

Contribution & Value Added: The originality of this work lies in proposing a conceptual framework that examines the organisational learning in startup development and international growth and a set of important considerations for further research, as well as contributing to the literature on international entrepreneurship.

 

Keywords

startup, international growth, startup life cycle/startup development cycle, organisational learning

PDF The Author’s Statement

Supplementary File(s)

EBER_COPYRIGHT_TRANSFER_author_statement_J.Sekliuckiene

Author Biography

Jurgita Sekliuckiene

Professor of International Business and head of International Entrepreneurship research cluster at the Kaunas University of Technology. She received her PhD in Management and Business Administration from the Kaunas University of Technology. Her research interests are in the area of internationalisation, international entrepreneurship and innovation, networks, export strategies with a special interest in transition market INVs and multinationals. She is the author and co-author of conference contributions, over 40 peer-reviewed publications, and several books and monographs chapters in the field of international business, strategic management and emerging markets. She is a member of Academy of International Business (AIB) and European International Business Academy (EIBA).

Rimgaile Vaitkiene

Professor at School of Economics and Business, Kaunas University of Technology. Her research interests include strategic marketing,  innovation, knowledge management,  business and management methodology.

Vestina Vainauskiene

Bachelor of Management and Business Administration (Kaunas University of Technology, Lithuania); Master in Management and Business Administration (Kaunas University of Tech-nology, Lithuania); PhD in Management, Social sciences (Kaunas University of Technology, Lithuania). Her research interests include entrepreneurial future foresight methodologies and consumer knowledge management.

References

  1. Baum, J.A.C., Calabrese, T., & Silverman, B.S. (2000). Don’t go it alone: Alliance network composi-tion and start-ups performance in Canadian biotechnology. Strategic Management Journal, 21(3), 267-294. https://doi.org/10.1002/(SICI)1097-0266(200003)21:3<267::AIDSMJ89>3.0.CO;2-8
  2. Bjørgum, Ø., Moen, Ø., & Madsen, T.K. (2013). New ventures in an emerging industry: access to and use of international resources. International Journal of Entrepreneurship and Small Busi-ness, 20(2), 233-253. https://doi.org/10.1504/IJESB.2013.056281
  3. Blank, G., & Dorf, B. (2012). The Startup Owner’s Manual – The Step-by-Step Guide for Building a Great Company. Percadero, CA: K&S Ranch, p. 571.
  4. Blomqvist, K., & Levy, J. (2006). Collaboration capability – a focal concept in knowledge creation and collaborative innovation in networks. International Journal of Management Concepts and Philosophy, 2(1), 31-48. https://doi.org/10.1504/IJMCP.2006.009645
  5. Bosch, J., Olsson, H.H., Björk, J., & Ljungblad, L. (2013). The Early Stage Software Startup Develop-ment Model: A Framework for Operationalizing Lean Principles in Software Startups. In B. Fitzgerald, K. Conboy, K. Power, R. Valerdi, L. Morgan, & K.-J. Stol (Eds.), Proceedings of International Conference on Lean Enterprise Software and Systems (pp. 1-15). Galway, Ireland.
  6. Breslin, D., & Jones, C. (2012). The evolution of entrepreneurial learning. International Journal of Organizational Analysis, 20(3), 294-308. https://doi.org/10.1108/19348831211243811
  7. Brockman, B.K. (2013). The evolution of organizational learning in new venture development. Journal of Small Business & Entrepreneurship, 26(3), 261-275. https://doi.org/10.1080/08276331.2013.803673
  8. Chen, Y.H., Lin, T.P., & Yen, D.C. (2014). How to Facilitate Inter-organizational Knowledge
  9. Sharing: The Impact of Trust. Information & Management, 51(5), 568-578. https://doi.org/10.1016/j.im.2014.03.007
  10. Cope, J., & Watts, G. (2000). Learning by doing – An exploration of experience, critical incidents and reflection in entrepreneurial learning. International Journal of Entrepreneurial Behavior & Research, 6(3), 104-124. https://doi.org/10.1108/13552550010346208
  11. Crossan, M.M., Lane, H.W., & White, R.E. (1999). An Organizational Learning Framework: From Intuition to Institution. The Academy of Management Review, 24(3), 522-537. https://doi.org/10.2307/259140
  12. Dai, Z. (2012). Toward a learning-based view of innovation. Competitiveness Review: An Interna-tional Business Journal, 22(1), 18-27. https://doi.org/10.1108/10595421211200151
  13. Davila, A., & Foster, G. (2007). Management Control Systems in Early‐Stage Startup Companies. The Accounting Review, 82(4), 907-937. https://doi.org/10.2308/accr.2007.82.4.907
  14. Deligianni, I., & Voudouris, I. (2011). New venture strategies and performance in a catching‐up economy: Identifying a strategic typology and trajectory through case studies. Management Research Review, 34(7), 732-753. https://doi.org/10.1108/01409171111146652
  15. Dimov, D.P., & Shepherd, D.A. (2005). Human Capital Theory and Venture Capital Firms: Exploring “Home Runs” and “Strike Outs.” Journal of Business Venturing, 20(1), 1-21. https://doi.org/ 10.1016/j.jbusvent.2003.12.007
  16. Dutta, D.K., & Crossan, M.M. (2005). The Nature of Entrepreneurial Opportunities: Understanding the Process Using the 4I Organizational Learning Framework. Entrepreneurship Theory & Practice, 29(4), 425-449. https://doi.org/10.1111/j.1540-6520.2005.00092.x
  17. Ebrahami, P.B. (2000). Perceived Strategic Uncertainty and Environmental Scanning Behavior of Hong Kong Chinese Executives. Journal of Business Research, 49, 67-77. https://doi.org/10.1016/S0148-2963(98)00120-9
  18. Elia, G., Lerro, A., Passiante, G., & Schiuma, G. (2017). An intellectual Capital perspective for busi-ness model innovation in technology-based industries: empirical evidences from Italian spin-offs”. Knowledge Management Research and Practice, 15(2), 155-168.
  19. Erdelyi, P. (2010). The Matter of Entrepreneurial Learning: A Literature Review. Retrieved from http://eprints.bournemouth.ac.uk/15080/1/241_Erd%C3%A9lyi_Final%20Paper_313_The%20Matter%20of%20Entrepreneurial%20Learning.pdf on September 1, 2018.
  20. Fillis, I. (2001). Small firm internationalisation: an investigative survey and future research direc-tions. Management Decision, 39(9), 767-783
  21. Gabrielsson, P., & Gabrielsson, M. (2013). A dynamic model of growth phases and survival in international business-to-business new ventures: the moderating effect of decision-making logic. Industrial Marketing Management, 42, 1357-1373. https://doi.org/10.1016/j.indmarman.2013.07.011
  22. Geldhof, J., Malin, M., Johnson, S.K., Porter, T., Bronk, K.C., Weiner, M. … & Damon, W. (2014). Entrepreneurship in young adults: initial findings from the young entrepreneurs study. Journal of Applied Developmental Psychology, 35(5), 410-421. https://doi.org/10.1016/j.appdev.2014.07.003
  23. Gong, Y., Baker, T., & Minner, A.S. (2006). Failures of Entrepreneurial Learning in Knowledge-Based Startups. Frontiers of Entrepreneurship Research, 26(15), art. 2.
  24. Graham P. (2012). Startup = growth. Retrieved from http://paulgraham.com/growth.html on September 1, 2018.
  25. Hamidi, D.Y., Wennberg, K., & Berglund, H. (2008). Creativity in entrepreneurship education. Jour-nal of Small Business and Enterprise Development, 15(2), 304-320. https://doi.org/10.1108/14626000810871691
  26. Herzig, S.E., & Jimmieson, N.L. (2006). Middle managers’ uncertainty management during organizational change. Leadership & Organization Development Journal, 27(8), 628-645. https://doi.org/10.1108/01437730610709264
  27. Hideg, E. (2007). Theory and practice in the field of foresight. Foresight, 9(6), 36-46. https://doi.org/10.1108/14636680710837299
  28. Hofstrand, D. (2013). Types and Sources of Financing for Startup Businesses. Retrieved from Iowa State University of Science and Technology website https://www.extension.iastate.edu/agdm/wholefarm/html/c5-92.html on September 1, 2018.
  29. Horton, A. (1999). Forefront. A simple guide to successful foresight. Journal of Future Studies. Strategic Thinking and Policy, 1(1), 05-09. https://doi.org/10.1108/14636689910802052
  30. Jones, O., & Macpherson, A. (2006). Inter-Organizational Learning and Strategic Renewal in SMEs. Extending the 4I Framework. Long Range Planning, 39, 155-175. https://doi.org/10.1016/j.lrp.2005.02.012
  31. Knight, G.A.S., & Cavusgil, T. (2004). Innovation, Organizational Capabilities, and the Born-Global Firm. Journal of International Business Studies, 35(2), 124-141. https://doi.org/10.1057/palgrave.jibs.8400096
  32. Kuivalainen, O., Sundqvist, S., Saarenketo, S., & McNaughton, R. (2012). Internationalization pat-terns of small and medium-sized enterprises. International Marketing Review, 29(5), 448-465. https://doi.org/10.1108/02651331211260331
  33. Lewis, V.L., & Churchill, N.C. (1987). The Five Stages of Small Business Growth. Retrieved from Harvard Business Review website https://hbr.org/1983/05/the-five-stages-of-small-business-growth on September 1, 2018.
  34. Lichtenstein, B., Lumpkin, G., & Shrader, R. (2003). Organizational Learning by New Ventures: Concepts, Strategies and Applications. In J.A. Katz & D. Shepherd (Eds.), Advances in Entrepre-neurship: Cognitive Approaches to Entrepreneurship (pp. 11-36). Oxford: Elsevier Science.
  35. Loane, S., & Bell, J. (2006). Rapid Internationalisation among Entrepreneurial Firms in Australia, Canada, Ireland and New Zealand – An Extension to the Network Approach. International Marketing Review, 23, 467-485. https://doi.org/10.1108/02651330610703409
  36. Lumpkin, G.T., & Lichtenstein, B.B. (2005). The Role of Organizational Learning in the Opportunity Recognition Process. Entrepreneurship Theory & Practice, 29(4), 451-472. https://doi.org/10.1111/j.1540-6520.2005.00093.x
  37. Mathews, J., & Zander, I. (2007). The international entrepreneurial dynamics of accelerated inter-nationalisation. Journal of International Business Studies, 38(3), 387-403.
  38. Maurya, A. (2012). Running Lean: Iterate from Plan A to a Plan That Works (Lean Series) (2nd ed.). O'Reilly Media.
  39. Maurya, A. (2016). Scaling Lean: Mastering the Key Metrics for Startup Growth. London: Penguin.
  40. Miles, R.E., Miles, G., & Snow, C.C. (2004). Collaborative Entrepreneurship. How Groups of Net-worked Firms Use Continuous Innovation to Create Economic Wealth? Stanford University Press.
  41. Nanda, R., & Rhodes-Kropf, M. (2013). Investment cycles and startup innovation. Journal of Finan-cial Economics, 110(2), 403-418. https://doi.org/10.1016/j.jfineco.2013.07.001
  42. Nonaka, I., & Konno, N. (1998). The concept of „Ba“: building a foundation for knowledge creation. California Management Review, 40(3), 40-54. https://doi.org/10.2307/41165942
  43. Nonaka, I., Konno, N., & Toyama, R. (2001). Emergence of “Ba”. A conceptual framework for the continuous and self-transcending process of knowledge creation. In I. Nonaka & T. Nishigushi (Eds), Knowledge Emergence. Social, technical and evolutionary dimensions of knowledge creation (pp. 3-29). Oxford, New York: Oxford University Press.
  44. Osnabrugge, M., & Robinson, R.J. (2000). Angel Investing Matching Startup Funds with Startup Companies-The Guide for Entrepreneurs and Individual Investors (1st ed.). John Wiley & Sons.
  45. Oviatt, B.M., & McDougall, P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1), 45-64. https://doi.org/10.1057/palgrave.jibs.8490193
  46. Patel, N. (2015). 90% Of Startups Fail: Here's What You Need To Know About The 10%. Retrieved from Forbes website https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/3/#2061c2e8b49f on September 1, 2018.
  47. Politis, D. (2005). The Process of Entrepreneurial Learning: A Conceptual Framework. Entrepre-neurship Theory and Practice, 29(4), 399-424.
  48. Rae, D. (2017). Entrepreneurial learning: peripherality and connectedness. International Journal of Entrepreneurial Behavior & Research, 23(3), 486-503. https://doi.org/10.1108/IJEBR-05-2016-0132
  49. Rae, D., & Carswell, M. (2001). Towards a conceptual understanding of entrepreneurial learning. Journal of Small Business and Enterprise Development, 8(2), 150-158. https://doi.org/10.1108/EUM0000000006816
  50. Renta-Davids, A.I., Jimenez-Gonzalez, J.M., Fandos-Garrido, M., & Gonzalez-Soto, A.P. (2014). Transfer of learning: motivation, training design and learning-conducive work effects. Euro-pean Journal of Training and Development, 38(8), 728-744. https://doi.org/10.1108/EJTD-03-2014-0026
  51. Rialp, A., Rialp, J., & Knight, G.A. (2005). The phenomenon of early internationalizing firms: What do we know after a decade (1993-2003) of scientific inquiry?. International Business Review, 14(2), 147-166. https://doi.org/10.1016/j.ibusrev.2004.04.006
  52. Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Business (1st ed.). New York, NY: Crown Business.
  53. Ripsas, S., & Troger, S. (2014). Deutscher Startup Monitor 2014, KPMG, Berlin.
  54. Ripsas, S., Schaper, B., & Troger, S. (2015). A startup cockpit for the proof-of-concept. Handbuch Entrepreneurship. Retrieved from website https://link.springer.com/referenceworkentry/10.1007/978-3-658-05263-8_21-1on Septem-ber 1, 2018.
  55. Robin, P.G. (2014). Crowdfunding Hardware Startups in Germany. In Proceedings of Twenty Second European Conference on Information Systems, Israel: Tel Aviv. Retrieved from https://www.hiig.de/wp-content/uploads/2015/09/0664-file1.pdf on September 1, 2018.
  56. Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excel-lence, 22(1), 31-41. https://doi.org/10.1108/MBE-06-2017-0028
  57. Saarenketo, S., Puumalainen, K., Kuivalainen, O., & Kylaheiko, K. (2009). A Knowledge-Based View of Growth in New Ventures. European Business Review, 21(6), 531-546. https://doi.org/10.1108/09555340910998823
  58. Salamzadeh, A., & Kesim, H.K. (2015). Startup Companies: Life Cycle and Challenges. In Proceedings of the 4th International Conference on Employment, Education and Entrepreneurship (EEE) Serbia: Belgrade.
  59. Scarmozzino, E., Corvello, V., & Grimaldi, M. (2017). Entrepreneurial learning through online social networking in high-tech startups. International Journal of Entrepreneurial Behaviour and Re-search, 23(3), 406-425. https://doi.org/10.1108/IJEBR-12-2015-0302
  60. Schwarzkopf, J. (2005). Startup/seed stage investment by venture capital funds (in Israel): entrepreneurs in residency and executive in residency programs. Retrieved from Academia website http://www.academia.edu/30586039/Startup_Seed_Stage_Investment_by_Venture_Capital_Funds_In_Israel_Entrepreneurs_in_Residency_and_Executive_in_Residency_on September 1, 2018.
  61. Secundo, G., Schiuma, G., & Passiante, G. (2017). Entrepreneurial learning dynamics in knowledge-intensive enterprises. International Journal of Entrepreneurial Behaviour & Research, 23(30), 366-380. https://doi.org/10.1108/IJEBR-01-2017-0020
  62. Sekliuckiene, J. (2017). Factors leading to early internationalization in emerging Central and East-ern European economies: Empirical evidence from new ventures in Lithuania. European Busi-ness Review, 29(2), 219-242. https://doi.org/10.1108/EBR-12-2015-0158
  63. Silva, J. (2004). Venture capitalists' decision-making in small equity markets: a case study using participant observation. Venture Capital, 6(2-3), 125-145. https://doi.org/10.1080/13691060410001675974
  64. Sloughter, R.A. (1996). Futures studies: From individual to social capacity. Futures, 28(8), 751-762. https://doi.org/10.1016/0016-3287(96)00009-2
  65. Soetanto, D. (2017). Networks and entrepreneurial learning: coping with difficulties. International Journal of Entrepreneurial Behaviour & Research, 23(3), 547-565. https://doi.org/10.1108/IJEBR-11-2015-0230
  66. Stevenson, H., Roverts, J., & Grousbeck, I. (1994). New Business Ventures and the Entrepreneur (6th ed.). Boston: Irwin.
  67. Tam, S., & Gray, D.E. (2016). Organisational learning and the organisational life cycle. The differential aspects of an integrated relationship in SMEs. European Journal of Training and Development, 40(1), 2-20. https://doi.org/10.1108/EJTD-07-2015-0052
  68. Tanrısever, F., Erzurumlu, S.S., & Joglekar, N. (2012). Production, Process Investment, and the Survival of Debt-Financed Startup Firms. Production and Operations Management Society, 21, 637-652. https://doi.org/10.1111/j.1937-5956.2012.01319.x
  69. Vanhaverbeke, W., Du, J., & von Zedtwitz, M. (2013). Managing Open Innovation in Multinational Enterprises: Combining Open Innovation and R&D Globalization Literature. In J. Tidd (Ed.), Open Innovation Research, Management and Practice. London: Imperial College Press.
  70. Wilson, M.C. (2009). Creativity, probability and uncertainty. Journal of Economic Methodology, 16(1), 45-56. https://doi.org/10.1080/13501780802684252
  71. Yli-Renko, H., Autio, E., & Tontti, V. (2002). Social Capital, Knowledge, and the International Growth of Technology-Based New Firms. International Business Review, 11, 279-304. https://doi.org/10.1016/S0969-5931(01)00061-0
  72. Young, J.E., & Sexton, D.L. (2003). What makes entrepreneurs learn and how do they do it?. Jour-nal of Entrepreneurship, 12(2), 155-182. https://doi.org/10.1177/097135570301200201
  73. Zahra, S., Ireland, D., Guiterrez, I., & Hitt, M. (2000). Privatization and entrepreneurial transforma-tion: a review and research agenda. Academy of Management Review, 25, 509-524. https://doi.org/10.2307/259307
  74. Zhou, L., Wu, W., & Luo, X. (2007). Internationalization and the Performance of Born Global SMEs: The Mediating Role of Social Networks. Journal of International Business Studies, 38, 673-690. https://doi.org/10.1057/palgrave.jibs.8400282

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.