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Exploratory Orientation, Business Model Innovation and New Venture Growth

Author

Listed:
  • Hao Zhang

    (School of Business Administration, Northeastern University, Shenyang 110169, China)

  • Xinbo Sun

    (School of Business Administration, Northeastern University, Shenyang 110169, China)

  • Chan Lyu

    (School of Business, Macau University of Science and Technology, Taipa, Macau 999078, China)

Abstract

Why are some start-ups more successful than other companies? In view of this question, this paper deconstructs the growth mechanism of the present new Chinese ventures from the perspective of Internet entrepreneurship and points out that exploratory orientation and business model innovation play an important role in the new ventures growth process. Based on this, through the investigation of 210 start-ups in China, the research found that: (1) exploratory orientation is in a positive relationship with the growth of new ventures; (2) business model innovation plays a mediated role between exploratory orientation and new business growth; (3) Internet embeddedness is found as a moderator in the relationship between exploratory orientation and the growth of new ventures. This finding will not only help further deepen the new research in the new venture growth process but also help to further expand exploratory orientation, business model innovation and the important role of the Internet embeddedness in the growth of new ventures.

Suggested Citation

  • Hao Zhang & Xinbo Sun & Chan Lyu, 2017. "Exploratory Orientation, Business Model Innovation and New Venture Growth," Sustainability, MDPI, vol. 10(1), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2017:i:1:p:56-:d:124563
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    References listed on IDEAS

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    1. Andreja Pucihar & Gregor Lenart & Mirjana Kljajić Borštnar & Doroteja Vidmar & Marjeta Marolt, 2019. "Drivers and Outcomes of Business Model Innovation—Micro, Small and Medium-Sized Enterprises Perspective," Sustainability, MDPI, vol. 11(2), pages 1-17, January.
    2. Jihye Jeong & Juhee Kim & Hanei Son & Dae-il Nam, 2020. "The Role of Venture Capital Investment in Startups’ Sustainable Growth and Performance: Focusing on Absorptive Capacity and Venture Capitalists’ Reputation," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    3. Michael Lang, 2020. "Modern Business Model Innovation Methodologies: A Systematic Literature Review (2015-2020)," Business Management and Strategy, Macrothink Institute, vol. 11(2), pages 94-116, December.

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