In the context of China’s emerging economy and transition economy, the unpredictability and high volatility of the environment make new ventures face greater challenges, and new ventures need to maintain a high degree of vigilance and flexibility. In previous studies, " improvisation” as a common behavior in the process of entrepreneurship has become a hot topic in entrepreneurial researches. Improvisation can effectively help new ventures deal with unexpected events, and it plays a vital role in the survival of new ventures in highly volatile environments. However, according to the effectuation theory, the improvisation which is just like " crossing the river by feeling the stones” tends to have higher uncertainty. At the same time, related researches show that routines can not only make firms stay stable in adapting to changes, but also increase organizational flexibility by reorganizing, so that organizations with significant inertia can survive and often have excellent performance. However, as a newborn in the market, new ventures do not have sufficient routines to learn from. And researches show that routines are not innate, but gradually formed. This is a process from scratch, which means that although routines exist in large numbers in mature companies, most of them are caused by the formation and accumulation in the process of entrepreneurship. So what is the connection between routines and improvisation? In the existing literature, the formation mechanism of improvisation of new ventures has not been effectively revealed. Therefore, based on the perspective of entrepreneurial learning, this paper introduces the transactive memory system, and reveals the formation mechanism of improvisation into routines of new ventures. We think that the improvisation to create knowledge is one of the sources of routines of new ventures. And entrepreneurial learning behaviors of new ventures provide a way for new knowledge from being produced to being solidified in organizations which finally changes into routines of organizations. The transactive memory system provides support for entrepreneurial learning behaviors in which new ventures acquire, transfer, integrate and utilize knowledge. In the level of theory, this paper not only helps improve the effectiveness of improvisation of new ventures to improve the survival rate of new ventures in an unpredictable environment, but also contributes to the formation of routines in new ventures that lay a solid foundation for the long-term development of new ventures. It can guide the survival and development of new ventures in practice as well.
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Foreign Economics & Management
Shaohua Zheng, Editor-in-Chief Rong Lu, Vice Editor-in-Chief
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The Formation Mechanism of Improvisation into Routines of New Ventures: Based on the Entrepreneurial Learning Perspective
Foreign Economics & Management Vol. 40, Issue 11, pp. 116 - 128 (2018) DOI:10.16538/j.cnki.fem.2018.11.009
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Ma Hongjia, Wu Juan, Lang Chunting. The Formation Mechanism of Improvisation into Routines of New Ventures: Based on the Entrepreneurial Learning Perspective[J]. Foreign Economics & Management, 2018, 40(11): 116-128.
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