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volume 45, issue 6, june 2024
1. title: poised for growth: exploring the relationship between accelerator program design and startup performance
authors: valentina a. assenova,�raphael amit
abstract: accelerator programs provide valuable market feedback and education to participants that may improve startup performance. however, it is unclear whether the average effect of accelerator participation on startup performance post acceleration is positive, and if so, how this effect varies with accelerator program design. we analyze data from 8580 startups that made it past the initial selection stage at 408 accelerators in 176 countries between 2013 and 2019. we compare accelerated and non-accelerated startups and find a positive average effect of accelerator participation on startup performance post acceleration. moreover, we find that this effect varies substantially with program design, and depends on venture stage, industry, and founder expertise. our findings highlight the impact of program design on the benefits that startups derive from accelerator participation.
2. title: bribery, insecurity, and firm performance: evidence from the boko haram insurgency in nigeria
authors: stefan dimitriadis
abstract: during armed conflicts, when the rule of law collapses, bribery often becomes prevalent. yet, the effect of bribery on firm performance under those circumstances remains unclear. bribery could provide access to scarce resources, but it could also be the result of extortion. this study argues that bribes can improve firm performance during certain conflicts, when violence reduces public officials' ability to threaten firms. using longitudinal data from businesses in nigeria during the boko haram insurgency in 2009�2014, i find that firms exposed to boko haram attacks that bribed outperformed firms that did not bribe. qualitative data suggest that the insurgency limited public officials' ability to threaten firms, making bribes less a means of rent extraction and more a way for firms to access resources.
3. title: the cue-ball effect: how an advantaged firm's closer competitors can propagate the impact of its advantage to more distant competitors
authors: natarajan balasubramanian,�richard makadok,�wan-ting chiu
abstract: cost advantage helps a firm at the expense of its rivals, but may hurt some rivals worse than others. conventional wisdom suggests that an advantaged firm will do more harm to closer competitors, but the opposite may occur if competitors can reposition themselves. closer competitors have stronger incentives to reposition away from the advantaged firm, thereby potentially encroaching on rivals more distant from the advantaged firm and propagating the harm to them like the cue ball in billiards transfers energy from cue stick to target ball. our formal model compares an advantaged firm's closer and farther competitors, when repositioning is allowed or prohibited, and demonstrates when its advantage hurts farther competitors worse than closer ones. we provide an illustrative case study from grocery retailing.
4. title: the inside track: entrepreneurs' corporate experience and startups' access to incumbent partners' resources
authors: sarath balachandran
abstract: startups are increasingly turning to incumbent firms for venture capital, anticipating access to the investor's knowledge and complementary assets. however, startups' eventual access to these resources varies widely. this article highlights one important driver of such variance, whether startups' managers were previously employed by an incumbent in the same industry. using data from the life sciences, i find that such corporate experience can precipitate technical knowledge flows to startups by enabling the generation of relational capital with incumbent firm managers. it also helps startups navigate incumbents' decision-processes to formalize access to downstream complementary assets via alliances. the former effect is stronger when corporate experience is technology-focused, the latter when it is commercialization-focused. corporate experience at the investing incumbent firm amplifies informal knowledge-flows but not formal alliances.
5. title: sweeping it under the rug: positioning and managing pollution-intensive activities in organizational hierarchies
authors: juyoung lee,�pratima bansal
abstract: many corporate groups have multiple layers with parent companies owning subsidiaries, which own other subsidiaries, and so forth, in a pyramid-like ownership structure. we argue that corporate groups perform their pollution-intensive activities at the lower levels of the corporate hierarchy to buffer the parent from pollution-related regulatory risks. our analysis of 7400 us-based business establishments owned by the 67 largest us-headquartered chemical manufacturing corporate groups supported this argument. we also found that they were even more likely to do so in states with greater environmental stringency, whether it be in the home state of the parent or the host state of the subsidiary. our research calls into question the effectiveness of environmental regulations if companies have the opportunity to shift polluting activities lower in their corporate hierarchy.
6. title: transportation networks and competition in the market for corporate control
authors: marco testoni
abstract: while competition in the market for corporate control determines firms' ability to capture value from acquisitions, there is limited evidence of factors that influence such competition. this study explores whether airline routes intensify competition in this market and affect the target's returns. targets can become better connected to distant latent acquirers (dlas), which can increase the targets' bargaining power. similarly, better connectivity can allow acquirers to reach distant latent targets (dlts) and therefore increase the acquirers' bargaining power. examining acquisitions between us public companies during 1980�2018, i find that lower travel time between the target and its dlas increases the target's returns and the number of competing bids. instead, the travel time between the acquirer and its dlts does not play a role.
7. title: a scientific approach to entrepreneurial decision-making: large-scale replication and extension
authors: arnaldo camuffo,�alfonso gambardella,�danilo messinese,�elena novelli,�emilio paolucci,�chiara spina
abstract: this article runs a large-scale replication of camuffo and colleagues in 2020, involving 759 firms in four randomized control trials. the larger sample generates novel and more precise insights about the teachability and implications of a scientific approach in entrepreneurship. we observe a positive impact on idea termination and results that are consistent with a nonlinear effect on radical pivots, with treated firms running few over no or repeated pivots. we provide a theoretical interpretation of the empirical results: the scientific approach enhances entrepreneurs' efficiency in searching for viable ideas and raises their methodic doubt because, like scientists, they realize that there may be alternative scenarios from the ones that they theorize.
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