Strategy Formation, Entrepreneurial Learning and New Venture Performance

Chen Biao

Foreign Economics & Management Vol. 39, Issue 09, pp. 3 - 15 (2017)  DOI:10.16538/j.cnki.fem.2017.09.001

Abstract

Strategy formation is the behavior of formulating and implementing strategies, and is very significant for new ventures. To reveal its role mechanism, this paper uses planning mode and emergency mode to explain strategy formation, and uses 396 questionnaires of new ventures to explain the relationship between strategy formation and new venture performance and whether entrepreneurial learning can improve the effectiveness of strategy formation. The research results show that both planning mode and emergency mode have positive effects on new venture performance; entrepreneurial learning positively moderates the relationship between emergency mode and new venture performance, and negatively moderates the relationship between planning mode and new venture performance. This paper reveals the importance of strategy formation for new ventures and explains the effect of entrepreneurial learning on the effectiveness of strategy formation. It improves the strategy management theory, and enriches the understanding of the path of the effect of entrepreneurial learning on new venture performance.

Keywords

entrepreneurial learning; strategy formation; planning mode; emergency mode; new venture performance