Peter Witt

Entrepreneurs’ networks and the success of start-ups

The network success hypothesis assumes a positive relation between the networking activities of founders and their start-up’s success. The rationale behind this hypothesis is the theory of socially embedded ties that allow entrepreneurs to get resources cheaper than they could be obtained on markets and to secure resources that would not be available on markets at all, e.g. reputation, customer contacts, etc. This paper clarifies how entrepreneurial network activities can be measured and which indicators exist to quantify start-up success. It then reviews empirical studies on the network success hypothesis. The studies have rarely come up with significant results. This surprising evidence can be explained by large differences in the way that the dependent and the independent variables were defined and by effects of unobserved variables such as the networking expertise of the founders and the entrepreneurs’ level of existing know-how in the areas of co-operation and networking (‘absorptive capacity’). The major shortcomings of existing network studies are found to be the neglect of different starting conditions, the focus on individual founders’ networks instead of multiple networks in start-ups with an entrepreneurial team, and the assumption of a linear causal relation between networking and start-up success. Accordingly, the paper develops a new, extended model for the relation between entrepreneurial networks and start-up success. Finally, we make some suggestions for the further development of entrepreneurial network theory.

Contracting, monitoring, and exiting venture investments in transitioning economies: A comparative analysis of Eastern European and German markets

This paper analyses investment practices in the private equity markets of transitioning economies in Central and Eastern Europe (CEE). Using a proprietary set of survey data and non-parametric tests, the study compares findings for the Czech Republic, Hungary and Poland to those for the more established German private equity market. The analysis also highlights the specificities of early-stage and later-stage investors in truly emerging venture-capital markets. The CEE firms surveyed display investment practices on a par with firms in established private equity markets. The more extensive investment risks faced by CEE private equity firms are largely reflected in their financial contracting and monitoring practices. Several factors hinder the further development of private equity markets in CEE, notably the supply of attractive investment and the lack of viable exit channels other than trade sales. Transformation-related issues impact the private equity markets surveyed only in restricting the level of debt financing used.

Entrepreneurial resource acquisition via personal networks: an empirical study of German start-ups

This paper presents a resource-based theoretical model for an extended version of the network success hypothesis. It derives four main hypotheses for the relationships between resources obtained from personal networks of the founders and a new ventures success. The model takes into account a broad range of control variables. In the empirical study, based on a sample of 123 German entrepreneurs, we do not find much support for our hypotheses. We conclude that, quite in contrast to most existing theories, network links have close to no impact on getting cheap or exclusive resources.

CORPORATE BRAND BUILDING IN START-UPS

In this paper, we develop a multi-stage formative measurement model to investigate which factors constitute the corporate brand of a start-up as seen from within the firm (corporate identity) and as perceived from outside (corporate image). Furthermore, we propose a structural model for brand building in start-ups, i.e. the causal relation between corporate identity and corporate image. We test this model empirically for a sample of 311 German start-ups. The study proves the importance of well-balanced and timely corporate branding activities in new ventures. It shows that internal branding activities are at least as important as those communication measures that are directly targeted at external audiences like customers and investors.

INFORMATION NETWORKS OF SMALL AND MEDIUM-SIZED ENTERPRISES

Information networks are established by communication links between firms, their business partners, personal friends, authorities, universities etc. The value of the information exchanges, especially for small and medium-sized enterprises, depends on the individual position in the information network. The paper discusses existing measures to evaluate network positions and proposes a new one. Extensive case study evidence indicates that the network position of startups and small enterprises is subject to constant changes which the individual firm cannot control completely. The paper develops a dynamic model for the development of network positions over time and indicates what firms can do to improve them. Information management in small and medium-sized enterprises can best be described as the management of dynamic information networks. Calculating position measures and development paths helps start-ups and small businesses to assess their current network position and to increase the efficiency of their information management.

Konsistenz und Wandlungsfähigkeit von Corporate Governance-Systemen

Mit dem Begriff Corporate Governance wird das Problem der Organisation von Leitung und Kontrolle in Unternehmen bezeichnet. Ein Corporate Governance-System besteht aus einzelnen Elementen, die sich in ihrer Funktionsfahigkeit gegenseitig unterstutzen, erganzen oder beeintrachtigen konnen. Corporate Governance-Systeme unterliegen einem Systemwettbewerb, in dessen Verlauf sie fortbestehen, sich verandern oder untergehen konnen. Der Beitrag untersucht, welche Bedeutung die Konsistenz der Einzelelemente fur die Entwicklung eines Corporate Governance-Systems hat. Es wird gezeigt, unter welchen Bedingungen sich auch konsistente Systeme erheblich verandern und in ganz andere, ebenfalls konsistente Systeme ubergehen konnen. Die Ergebnisse stutzen die Hypothese der Unwahrscheinlichkeit einer Konvergenz internationaler Corporate Governance-Systeme. Sie stutzen aber auch die Hypothese der Dominanz eines Systems, konkret der US-amerikanischen Corporate Governance im Systemwettbewerb. Methodisch beruht der Beitrag auf der okonomischen Theorie der Politik und der Wettbewerbstheorie. Er entwirft ein Modell der Entwicklung von Corporate Governance-Systemen durch politische und unternehmerische Einflusse.

Innovationsmanagement in Energieversorgungsunternehmen

Die Markte fur Energieversorgung stehen weltweit vor grosen Herausforderungen. Zum einen sind die Reserven an fossilen Energietragern wie Ol und Gas grundsatzlich begrenzt, was bei stetig wachsender Nachfrage nach diesen Rohstoffen zu weiter steigenden Preisen fuhren wird (Erdmann und Zweifel, Energieokonomik, Berlin, 2008, S. 125–132). Zum anderen hat sich der Klimawandel durch die weltweit ansteigenden CO2-Emissionen weiter beschleunigt, ein Grosteil dieser Emissionen ist auf die Energieerzeugung mit fossilen Energietragern wie Steinkohle, Braunkohle und Erdgas zuruckzufuhren (Strobele et al. Energiewirtschaft, 2. Aufl. Munchen, 2010, S. 64–68). Die Stromerzeugung mit Kernenergie hat zwar den Vorteil sehr geringer CO2-Emissionen, verliert aber in vielen Landern wegen der Probleme bei der Endlagerung der Brennelemente und wegen der Gefahr einer radioaktiven Verseuchung bei Kraftwerksunfallen an gesellschaftlicher Akzeptanz. Andere emissionsneutrale Verfahren der Energieerzeugung, sogenannte „erneuerbare Energien“, wie Windkraft, Biogas, Photovoltaik oder Solarthermie, sind zwar technisch verfugbar und werden auch verstarkt genutzt, sie sind aber wetter- und tageszeitabhangig nicht immer gleich gut einsatzbereit und bei den heutigen Strompreisen zum Teil auch unwirtschaftlich.

Netzwerkbildung und Gründungserfolg

▪ Der „network success approach“ der Grundungsforschung untersucht, ob und wie der Aufbau personlicher Netzwerke durch Unternehmensgrunder den Grundungserfolg po sitiv beeinflusst. Dieser Beitrag stellt die theoretischen Grundlagen dieses Forschungsansatzes dar und ordnet ihn in die bestehenden betriebswirtschaftlichen Netzwerktheorien ein. ▪ Bisherige empirische Untersuchungen zum Zusammenhang zwischen Netzwerkbildung und Grundungserfolg kommen zu sehr unterschiedlichen Ergebnissen. Das liegt vor allem an sehr verschiedenen Methoden, die unabhangigen Variablen (Netzwerkaktivitaten von Unternehmensgrundern) und die abhangige Variable (Erfolg einer Neugrundung) zu messen. ▪ In diesem Beitrag wird ein erweitertes Modell entwickelt, das neben den strukturellen auch die qualitativen Eigenschaften von einzelnen Beziehungen und ganzen Netzwerken berucksichtigt. Auf der Basis dieses Modells lasst sich u.a. die Existenz einer optimalen Netzwerkgrose herleiten.

THE MANAGEMENT OF TRANSFORMATION IN EAST GERMAN FIRMS

The transformation of East Germany from a socialist to a market economy has brought about the need to restructure all East German firms. Managing this transformation process is comparable to the planning and controlling of a large project in a quickly changing economic environment. The main goal for the managers of firms in transition is to ensure the survival of their companies and to reduce the time required for the restructuring processes. The purpose of this study is to assess stochastic activity network analysis as a tool for the management of transformation. Network analysis allows to identify the necessary management activities, to plan the optimal sequence of these activities, and to control ongoing transformation processes. Our experiences so far suggest that the stochastic activity network technique GERT is a well suited technique for the analysis of transformation processes. To illustrate this new application of GERT, the study presents a simulation of a GERT activity network for the transformation process of a firm. The simulation is based on more than 20 in-depth case studies conducted in East Germany.

Corporate Governance in mittelständischen Unternehmen

Die Erforschung der Corporate Governance, also der geeigneten Organisation von Leitung und Kontrolle in Unternehmen, hat eine lange Tradition in der Betriebswirtschaftslehre. Das gilt auch fur die Zeitschrift fur Betriebswirtschaft, die immer wieder Sonderhefte zu Fragen der Corporate Governance heraus gebracht hat.