Entrepreneurial Organizations and the Use of Strategic Silence

Abstract

Drawing on research about dynamic capabilities and external organizational communication, this study examines ways in which entrepreneurial organizations use silence as an effective communication strategy to reduce external uncertainty and to nurture growth during critical periods of development. Data were collected tracking the external communication of 54 entrepreneurial organizations that focus on mobile news application development. Results show a significant relationship between the attention organizations attract after product launch and an organization’s performance. More specifically, the greater the magnitude of change from pre-launch to post-launch, from less frequent external communication to more frequent external communication, the more likely there is to be an increase in the product performance of an entrepreneurial organization. The findings highlight the role of strategic silence in entrepreneurial organizations in the early stages of development and emphasize a more nuanced understanding of external communication as a strategic tool.