New Venture Legitimacy and Investment Acquisition in the Context of Business Model Imitation
Type
conference paper
Date Issued
2016
Author(s)
Research Team
https://www.alexandria.unisg.ch/persons/9249
Abstract (De)
In this paper we investigate the conditions under which business model copycats (BMCs) in emerging economies enjoy initial legitimacy and increase their chances for investment by imitating leading business models from advanced economies. We develop testable hypotheses against the backdrop of institutional theory. Using a conjoint experimental design and 736 assessments nested within 46 venture investors, we find venture investors are more likely to invest when the copied business model matches the legitimacy requirement of BMC’s domestic institutional environment and when investors perceive the copied firm’s business model is cognitively legitimated. Further, we show the similarity of the teams’ backgrounds (the copycat’s team and the copied firm’s team) acts as an enhancing moderator in investors’ assessments. Our study sheds new light on the literature of new venture legitimacy and entrepreneurship in emerging economies. It cautions future work to investigate carefully the institutional context of any business model imitation.
Language
English
HSG Classification
contribution to scientific community
Publisher
Academy of Management
Publisher place
Academy of Management Proceedings
Subject(s)
Division(s)
Eprints ID
263489