Endogenous capability building and start-up advantage In creating new markets
Name
974488505-MIT.pdf
Description
Full printable version
Size
3.15 MB
Format
Adobe PDF
Checksum (MD5)
bae3e68877bad071573dff0c22019872
Author(s)
Hashemian, MohammadMahdi
Advisor(s)
Hazhir Rahmandad.
Date Issued
2016
Publisher
Massachusetts Institute of Technology
Abstract
Startups play a major role in establishing many new markets. This is theoretically puzzling because existing firms have more resources and relevant core and peripheral capabilities that should advantage them in diversifying into new markets. Here, we explore one mechanism that differentiates startups from existing firms: the stronger link between past performance and resources available for future capability building for startups than for existing firms. Using a simulation model, we show that this reinforcing loop leads entrepreneurial financial markets to quickly focus on more promising startups and, despite initial disadvantage, enable the most promising startups to overtake projects in well-endowed diversifying entrants. We analyze how different markets and technological opportunities can affect these dynamics.
Description
Thesis: S.M. in Management Research, Massachusetts Institute of Technology, Sloan School of Management, 2016.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 27-30).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
Terms of Use
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