To Pivot or Not To Pivot: On the Relationship between Pivots and Revenue among Startups

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dc.contributor.authorBandera, Cesar
dc.contributor.authorThomas, Ellen
dc.date.accessioned2019-01-03T00:38:12Z
dc.date.available2019-01-03T00:38:12Z
dc.date.issued2019-01-08
dc.description.abstractThe concept of the pivot, whereby a new venture alters its offering or business model, is standard practice among new ventures seeking to validate their value proposition in uncertain markets. Whereas a new venture begins with a business model driven by the entrepreneur’s perception of the market, pivots driven by market feedback align the venture with market need. However, we argue that executing too many pivots can adversely affect firm performance by postponing the maturation of the firm. Using change in a venture’s NAICS code as a proxy for pivoting, we show an inverted-U relationship between revenue and the number of pivots among Kauffman Firm Survey participants. This longitudinal empirical study is one of the first on the relationship between pivoting and performance. It aims to attract attention to this important topic of entrepreneurship, and help the entrepreneur facing the difficult decision of whether or not she should pivot.
dc.format.extent6 pages
dc.identifier.doi10.24251/HICSS.2019.655
dc.identifier.isbn978-0-9981331-2-6
dc.identifier.urihttp://hdl.handle.net/10125/59981
dc.language.isoeng
dc.relation.ispartofProceedings of the 52nd Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectInnovation and Entrepreneurship Theory and Practice
dc.subjectKnowledge Innovation and Entrepreneurial Systems
dc.subjectentrepreneurial strategy, longitudinal, pivots, revenue, startups
dc.titleTo Pivot or Not To Pivot: On the Relationship between Pivots and Revenue among Startups
dc.typeConference Paper
dc.type.dcmiText

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