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Organizational design choices of high-tech startups: How middle management drives innovation performance


Grimpe, Christoph; Murmann, Martin; Sofka, Wolfgang (2019). Organizational design choices of high-tech startups: How middle management drives innovation performance. Strategic Entrepreneurship Journal, 13(3):359-378.

Abstract

Innovative products and services are the inspiration for many startups. However, founders find that the management of existing operations competes with the attention that they can devote to innovation. We investigate whether and how establishing a middle management level frees up attention for innovation when firms are newly started. We argue that middle management is positively related to introducing product innovations and that the effect is stronger when founders have larger stocks of pre-existing knowledge and when the startup's industry provides more innovation opportunities. These hypotheses are supported by an analysis of 2,431 German high-tech startups founded between 2005 and 2012.

Abstract

Innovative products and services are the inspiration for many startups. However, founders find that the management of existing operations competes with the attention that they can devote to innovation. We investigate whether and how establishing a middle management level frees up attention for innovation when firms are newly started. We argue that middle management is positively related to introducing product innovations and that the effect is stronger when founders have larger stocks of pre-existing knowledge and when the startup's industry provides more innovation opportunities. These hypotheses are supported by an analysis of 2,431 German high-tech startups founded between 2005 and 2012.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Business and International Management
Social Sciences & Humanities > Economics and Econometrics
Social Sciences & Humanities > Strategy and Management
Language:English
Date:25 July 2019
Deposited On:25 Sep 2019 14:11
Last Modified:29 Jul 2020 11:22
Publisher:Wiley-Blackwell Publishing, Inc.
ISSN:1932-4391
OA Status:Closed
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.1002/sej.1330
Other Identification Number:merlin-id:18323

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