New ventures are an important driving source of wealth in societies. Small and especially young ventures have a fundamental impact on the whole economy. Activities of new ventures provide various positive effects, such as the creation of employment, contribution to technol-ogical advance, innovation and the overall competitiveness of a society’s economy (e.g. Brinckmann 2008, pp. 1).
It is a big challenge for founders to assure that their new ventures survive and prosper. Many aspects have to be considered and high uncertainty is faced. One question which entrepreneurial research frequently tries to answer is whether planning in new ventures is positively related with performance. Plenty of research has been done on this question with rather incomplete and inconsistent results.
Rather than trying to answer the question whether planning is beneficial in a strict yes or no manner, this thesis focuses on a contingent view on the stated problem. Several external factors, so called moderators that might have an impact on the success of planning, shall be examined in more detail.
The first part of the thesis provides conclusions for planning in new ventures in context of the corporate life cycle concept. Specific planning requirements and topics will be discussed in the context of early stages of the corporate life cycle. First of all, the question whether and under what condition planning in new ventures pays off will be dealt with. Related to the first two age states following Adizes (1998) the relevance of written business plans and market entry strategies will be discussed.
The contingent view on the problem will be completed in the second part of the thesis by looking at new ventures in different founding environments. The challenges of two types of new ventures with very specific environments will be discussed in this part. New internet ventures are acting in a completely different environment in terms of communication and therefore, have specific requirements for planning and e.g. marketing instruments. Also new ventures entering high technology markets are challenged by specific characters of their environment, especially because of the even higher uncertainty in comparison to other new ventures.
Finally implications for further research and concrete advice for practitioners will be given.
Table of Contents
- 1. Introduction
- 2. Definitions and Concepts
- 2.1 New Venture
- 2.2 Strategic Planning
- 2.3 The Corporate Life Cycle Concept
- 2.4 The Contingency Approach
- 3. New Venture Planning in the Early Phases of the Corporate Life Cycle
- 3.1 Basic Considerations
- 3.1.1 To Plan or Not to Plan?
- 3.1.2 The Importance of “Outsiders” in New Venture Planning
- 3.1.2.1 Involving Outsiders in the Planning Process
- 3.1.2.2 Outsiders as Addressee of the Outcome of Planning
- 3.2 The Courtship Phase
- 3.2.1 Do Founders of Successful New Ventures Write Business Plans?
- 3.2.2 The Impact of Written Business Plans
- 3.3 The Infancy Phase - A Framework to New Venture Market Entry Strategies
- 4. New Venture Planning by Market Context
- 4.1 New Ventures in the Internet Market
- 4.1.1 Specific Context for New Ventures in the Internet
- 4.1.1.1 New Forms of Communication
- 4.1.1.2 Critical Success Factors
- 4.1.2 Selected Online-Marketing Instruments
- 4.1.2.1 Search Engine Marketing
- 4.1.2.2 E-Branding
- 4.1.2.3 Direct Marketing
- 4.2 New Ventures in a High Technology Environment
- 4.2.1 Specific Challenges
- 4.2.1.1 Technological Uncertainty
- 4.2.1.2 Market Uncertainty
- 4.2.2 Strategic Planning for New Ventures in High Technology Markets
- 4.2.2.1 Definition of the Relevant Market
- 4.2.2.2 Implications for Strategic Planning
- 5. Conclusions
- 5.1 Implications for Management
- 5.2 Implications for Research
Objectives and Key Themes
This thesis examines the relationship between planning and performance in new ventures, challenging the simplistic "yes or no" approach by adopting a contingency perspective. It investigates how external factors influence the success of planning, exploring this relationship within the context of the corporate life cycle and different market environments.
- The impact of planning on new venture success
- The role of the corporate life cycle in shaping planning needs
- The influence of market context (internet and high-tech) on planning strategies
- The importance of external factors (moderators) in determining planning effectiveness
- Implications for management practices and future research
Chapter Summaries
1. Introduction: This chapter introduces the significance of new ventures in driving economic growth and highlights the central research question concerning the relationship between planning and new venture performance. It establishes the thesis's approach of using a contingency perspective, emphasizing the influence of external factors on the effectiveness of planning. The chapter outlines the structure of the thesis, signaling a focus on planning within the corporate life cycle and in specific market contexts (internet and high-tech).
2. Definitions and Concepts: This chapter provides crucial definitions for understanding the subsequent analysis. It defines "new venture," differentiating it from established organizations, emphasizing its characteristics of newness, small size, and inherent uncertainty. The chapter also defines "strategic planning," outlining its core elements and its goal of achieving desired objectives through resource allocation and communication. This lays the groundwork for the discussion of planning's role in navigating the challenges faced by new ventures.
3. New Venture Planning in the Early Phases of the Corporate Life Cycle: This chapter explores planning in the context of the corporate life cycle, focusing on the early phases. It delves into the fundamental question of whether and when planning is beneficial for new ventures, examining the role of written business plans and market entry strategies in the courtship and infancy phases. The discussion connects the planning process to specific stages of growth, highlighting the differing needs and challenges at each stage.
4. New Venture Planning by Market Context: This chapter investigates the impact of differing market contexts on new venture planning. It examines the unique challenges and opportunities presented by the internet and high-technology markets. By contrasting these contexts, the chapter demonstrates how environmental factors significantly shape the planning process, emphasizing the need for tailored strategies. Specific aspects such as technological uncertainty and communication methods are considered, linking these to successful planning approaches.
Keywords
New ventures, strategic planning, corporate life cycle, contingency approach, market entry strategies, internet marketing, high-technology markets, business plans, entrepreneurial research, uncertainty.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this text?
This text is a comprehensive language preview of a thesis examining the relationship between planning and performance in new ventures. It uses a contingency perspective, considering how external factors influence planning's success within different corporate life cycle stages and market environments (internet and high-tech).
What are the key themes explored in the text?
The key themes include the impact of planning on new venture success; the role of the corporate life cycle in shaping planning needs; the influence of market context (internet and high-tech) on planning strategies; the importance of external factors in determining planning effectiveness; and implications for management practices and future research.
What is the structure of the text?
The text is structured into five chapters: an introduction; a chapter defining key concepts (new venture, strategic planning, corporate life cycle, contingency approach); a chapter on new venture planning in the early phases of the corporate life cycle; a chapter on new venture planning by market context (internet and high-tech); and concluding remarks with implications for management and research.
What aspects of new venture planning are covered in the early phases of the corporate life cycle?
This section delves into whether and when planning is beneficial, the role of written business plans, and market entry strategies during the courtship and infancy phases. It connects planning to specific growth stages, highlighting their unique needs and challenges.
How does the text address the impact of different market contexts on new venture planning?
The text examines the unique challenges and opportunities of internet and high-technology markets. It shows how environmental factors shape the planning process, emphasizing the need for tailored strategies. Specific aspects like technological uncertainty and communication methods are linked to successful planning approaches.
What are the key definitions provided in the text?
The text defines "new venture," differentiating it from established organizations; "strategic planning," outlining its core elements and goal; and explains the "corporate life cycle concept" and the "contingency approach."
What are the key findings or conclusions of the text?
The conclusions highlight implications for management practices and future research, emphasizing the need for a nuanced understanding of the relationship between planning and new venture performance, considering contextual factors and the stage of the corporate life cycle.
What are the keywords associated with this text?
Keywords include: New ventures, strategic planning, corporate life cycle, contingency approach, market entry strategies, internet marketing, high-technology markets, business plans, entrepreneurial research, uncertainty.
What is the overall approach of the thesis?
The thesis adopts a contingency perspective, arguing against a simplistic "yes or no" approach to planning and emphasizing the crucial role of external factors in determining planning effectiveness for new ventures.
Who is the intended audience of this text?
This text is intended for academic use, supporting the analysis of themes related to new venture planning and performance. It is suitable for researchers and students in business, management, and entrepreneurship.
- Quote paper
- Simon Barth (Author), 2009, Planning in new Ventures, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/164611
