David C Lingelbach

The emergence of marketing in Millennial new ventures

Purpose – The purpose of this paper is to develop a conceptual framework, based in entrepreneurship theory, which explains how marketing emerges in startups founded by members of the Millennial generation.Design/methodology/approach – Following a literature review, from which propositions are derived, an earlier process model of organizational speciation is adapted to marketing by Millennial entrepreneurs.Findings – A four‐stage cycle model of entrepreneurial marketing by Millennials is developed, consisting of enabling through resource scarcity, bonding through social media, new product introduction through incremental stealth, and replicating through variation, selection, and retention.Research limitations/implications – Model development would be enhanced through empirical data.Practical implications – Marketers in entrepreneurial firms founded by Millennials can follow a few simple rules to enhance market penetration. Resource scarcity is something to be sought, not avoided. A thoughtful social media ...

The Innovation Process in Emerging Economies: An Effectuation Perspective

The authors investigate the impact of two contrasting logics, effectuation and causation, on the innovation process in emerging economies (EEs). Effectuation theory, which emphasizes responses to uncertainty, is integrated with the innovation process literature, which emphasizes resource constraints. In particular, the authors show that in EEs the flexibility dimension of effectuation is underemphasized, while its pre-commitment dimension is overemphasized. The combination of effectuation and causation mechanisms is influenced by the industry context, as well as by the type, degree and timing of resource constraints. Employing longitudinal data from six innovation process cases across one industry (financial services) and four EEs (Botswana, Ethiopia, Ghana and South Africa), the authors employ a process approach using real-world data to support their propositions.

Paradise postponed? Venture capital emergence in Russia

Purpose – How does venture capital (VC) emerge in emerging and developing economies? This paper aims to use case data from an early Russian VC fund to extend a previous model exploring that question.Design/methodology/approach – Case studies of VC emergence from South Africa, Botswana, and Russia are compared, from which a conceptual model is developed.Findings – VC emerges in a process consisting of four stages: enabling, coproducing, diffusing, and replicating. The Russian case shows that these stages are linked in a circular process, i.e. replicating can lead to enabling. VC emergence can also begin at any stage. A higher degree of public‐private coproduction may outweigh the absence of a completed enabling stage, suggesting that strength in one stage can compensate for weakness in others.Research limitations/implications – This paper invites scholars to reconsider VC emergence in a more nuanced manner that takes into account its complex, processual nature. The inclusion of Russian data also encourages...

Business angels in sub-Saharan Africa

Definitional concerns are an issue when researching business angels in sub-Saharan Africa. In the chapter the author focuses on this subject in his review of our knowledge of business angels in sub-Saharan Africa. He emphasizes the need to consider the institutional context and the heterogeneity between countries as well as the differences from Western countries. He argues that the recent increase in gross domestic product growth in several African economies, combined with a slow reduction in the level of violence, has contributed to an increase in entrepreneurial activity and, as a consequence, we can expect an increase in business angel investments. However, these activities will not mimic the behavior of BAs in developed economies, but will evolve a practice that is suited to local conditions. National levels of business angel investing activity are likely to continue to vary, influenced by formal and informal institutions.

Developing venture capital when institutions change

This paper investigates the impact of formal institutional change on the venture capital (VC) development process. Specifically, it contrasts VC development processes taking place in stable and volatile formal institutional environments. It shows that formal institutional change – both improvement and decline – facilitates the VC development process, and that more change is more beneficial to that process than less change. Macro institutional change plays a larger role in facilitating the VC development process than micro institutional change, and changes in two macro-level dimensions – rule of law and political stability – have the largest positive impact on that process. Employing longitudinal interview and archival data from four emerging economies with a range of institutional change and quality levels, Botswana, Indonesia, Pakistan, and South Africa, empirical support is provided for the propositions.

Segmenting the toy industry: a study of pre‐teen Millennials

Purpose – The purpose of the study is to investigate the preferences of young Millennials for a salient product category (toys) and to investigate possible within‐group differences that have relevance for marketers.Design/methodology/approach – The study carried out analysis of commercially collected survey data (538 pre‐teen Millennials) from Harris On‐Line using cluster and correspondence analyses.Findings – Segments exist within the younger Millennial cohort. Specifically, four clusters emerged including enthusiasts, social/intellectuals, creatives and the disengaged.Research limitations/implications – One limitation is the selection of the toy characteristics included in the cluster variate, which were based on scarce published research and the opinion of Harris On‐Line experts. A second limitation is that the toys were never differentiated between traditional toys and electronic toys. A third limitation revolves around the maturation of the Millennials and how that may affect the clusters over time.P...

Financial crises and venture capital development: evidence from Indonesia

ABSTRACT This exploratory study examines how financial crises impede or support venture capital (VC) development in the context of Indonesia and the 1997–1998 Asian financial crisis (AFC). Using a mixed-methods research methodology, the study finds that financial crises have divergent effects on VC development. Financial crises support VC development through accelerated VC practise diffusion, but impede that development by slowing VC enabling conditions. The effects of the substantial macro institutional changes often associated with financial crises are insufficient to overcome these impediments, resulting in a smaller VC industry.