Pengfei Wang

International Small Business Journal Doi: https://doi.org/10.1177/02662426231218710

How do failure events affect subsequent new venture creation? The existing literature seems to point in two opposing directions. While the information perspective suggests that failure events undermine collective beliefs about market viability, the competition view implies that failures may foster entrepreneurship via easing competition in both factor and product markets. To address this question, we adopt an inductive approach and analyse registry data in Norway. Based on the firm-level microdata, we construct an industry-region-level marketspace to analyse the number of firm failures and new ventures in different markets. Results show that failures of existing firms generally lead to more venture creation in the same market, albeit being contingent on industry features. And such effect is mainly ‘pulled’ by product market vacuum, rather than ‘pushed’ by factor abundance. However, we also observe that ventures that are created following failure events are less likely to survive.

Industrial and Corporate Change 32(5) s. 1023-1045 Doi: https://doi.org/10.1093/icc/dtad014

Prior literature has long examined innovation as a recombination process within or across the boundaries of technological domains. However, limited attention is paid to boundaries per se. Building upon recent development of categorical contrast, this study distinguishes domains with crisp boundaries from those with fuzzy boundaries and examines their effects on innovation outputs. Analyzing a large sample of US patents, we find that spanning crisp boundaries is more likely to generate impactful inventions but at the same time leads to significantly higher recombinant uncertainty. We continue to explore what types of inventors are better able to span such types of domain boundaries. Focusing specifically on the role of inventors’ knowledge expertise, we find that while both knowledge depth and breadth enhance the impact of technologies that span crisp boundaries, knowledge breadth is also found to escalate the associated uncertainty. Our emphasis on the contrast of technological domains contributes to the literature on recombinative innovation and boundary spanning.

Human Resource Management 63(2) s. 293-312 Doi: https://doi.org/10.1002/hrm.22201

Because high-status employees make disproportional contributions to firms, prior literature suggests that their departure would undermine various organizational outcomes. Building on recent literature, however, we suspect that a high-status employee may have seized disproportional resources and credits from coworkers, thereby restricting them from performing, particularly when the work context is more independent and contested. As a result, the departure of a high-status employee may bring staying coworkers more resources and incentives to perform, causing their performance to improve. To test this possibility, we examine the effect of high-status analysts' departure on the individual performance of analysts who remain, using a sample of sell-side analysts in Chinese financial brokerage firms. Employing a before-and-after treatment research design, we find evidence that after the departure of a high-status analyst, the staying coworkers' individual performance is significantly improved. It is particularly so when they share greater industry overlap with the departing analyst. Our extensional analyses also investigate additional contingencies, which helps provide valuable hints about possible mechanisms.

Strategic Organization 21(1) Doi: https://doi.org/10.1177/14761270221143984

While organization theorists have established the importance of typicality, most studiesexamine situations where producers and audiences dwell within the same category system(e.g., a country, industry, or market). However, much less attention is paid to the role oftypicality when products are introduced from one system to another. Since defining what istypical is commonly system-specific, typical products in one category system may beperceived as being atypical in others. It is therefore important to understand how typicalityshapes market exchanges when products traverse category systems. To shed light on this, weintroduce two key concepts—home typicality and host typicality—and examine specificallyhow they affect the performance of products distributed across countries. By analyzing a largesample of films, we find that films are more successful in international markets, when they aremore typical of their home countries and/or more atypical of their host countries.

Strategic Organization Doi: https://doi.org/10.1177/14761270221139760

Prior literature has emphasized that inconsistency of market signals leads to evaluation penalty. However, limited attention has been paid to the heterogeneity of audiences who deal with inconsistency. I argue that audiences differ in the extent to which they process different market signals, which may largely shape the effect of signal inconsistency. When audiences fail to process all signals, they may not perceive signal inconsistency, thereby weakening its effect on product evaluation. It is hence important to investigate audience heterogeneity in theorizing signal inconsistency. In this study, I focus on the distinction between two important audience groups: professional critics and end consumers. Specifically, I argue that signal inconsistency exerts a stronger effect on critics’ evaluations than on consumers’ evaluations, because critics are more likely than consumers to process various market signals. I argue further that critics can act as an important intermediary to bridge the effect of signal inconsistency on consumers, even though consumers may not process all signals themselves. I test these ideas in a sample of video games released between 2001 and 2016 and find general support.

Industrial and Corporate Change Doi: https://doi.org/10.1093/icc/dtab027

This study draws attention to the embedding process of market entrants, by examining the initial and subsequent partnerships of de alio entrants versus de novo entrants. Although de alio entrants have access to superior resources from their parents, they may encounter more resistance from the market as they project impure identity, introduce different logics, and pose greater competitive threats. Analyzing a sample of new entrants in the venture capital market, we find that while de alio entrants are less likely to establish initial partnerships with mainstream incumbents (i.e. receiving an overall initial resistance from the market), they are more likely than de novo entrants to establish ties with high-status incumbents (i.e. gaining more initial endorsement from the core). Results also show that initial network positions allow de alio entrants to sustain gaining prestigious endorsement in the later period, and at the same time to offset the overall resistance from mainstream incumbents. Our findings contribute to the literature on market entry and corporate demography.

Research Policy 48(9) Doi: https://doi.org/10.1016/j.respol.2019.05.007

This study adds to the product innovation literature by emphasizing the important yet understudied role of price distribution in shaping product demography (i.e. new product introductions and exits). While prior research has focused on market niches in the technological and geographic spaces in order to explain product demography, price space has received very limited attention despite the important role of price in the market. We posit that product dynamics are largely shaped by the existing price distribution. More specifically, we argue that local density in price space determines both the likelihood of existing products exiting the market and the rate of new products entering it. Analyzing product exit and entry in the U.S. workstation industry from 1980 to 1996, we find that while price density increases an existing product’s exit rate, new products are also more likely to enter the niches where the price density is high. We also draw attention to internal price density within multiproduct firms, analyzing a product’s price distance from the other products launched by the same firm. We find that this type of internal price density decreases both existing products’ exit rate and new products’ entry likelihood. Our emphasis on price space contributes to the literature on product innovation and demography.

Management science 65(2) s. 859-878 Doi: https://doi.org/10.1287/mnsc.2017.2964

Journal of Business Venturing Doi: https://doi.org/10.1016/j.jbusvent.2018.12.001

Long Range Planning 51(2) s. 234-251 Doi: https://doi.org/10.1016/j.lrp.2017.03.006

Uncertainty experienced by market audiences is the fundamental premise for status to take effect. Whereas prior research usually assumes that uncertainty is evenly distributed among audiences, this study emphasizes the heterogeneity of audiences. Audiences usually differ in the scope of firms they cover. They acquire more information and confront less uncertainty when evaluating firms under their coverage than those not. Status may thus exert different effects across audiences. My theoretical development is situated in the context of M&A. In particular, I hypothesize that although an acquirer's status is generally beneficial, it is more appealing to investors who do not cover the acquirer, as compared to covering investors. Results of the empirical analysis on the U.S. deals between 1990 and 2014 provide considerable support for my framework.

Academy of Management Journal 61(3) s. 1021-1049 Doi: https://doi.org/10.5465/amj.2015.0969

Research Policy 46(10) s. 1836-1850 Doi: https://doi.org/10.1016/j.respol.2017.09.002