To Pivot or Not To Pivot: On the Relationship between Pivots and Revenue among Startups Bandera, Cesar Thomas, Ellen 2019-01-03T00:38:12Z 2019-01-03T00:38:12Z 2019-01-08
dc.description.abstract The 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.extent 6 pages
dc.identifier.doi 10.24251/HICSS.2019.655
dc.identifier.isbn 978-0-9981331-2-6
dc.language.iso eng
dc.relation.ispartof Proceedings of the 52nd Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.subject Innovation and Entrepreneurship Theory and Practice
dc.subject Knowledge Innovation and Entrepreneurial Systems
dc.subject entrepreneurial strategy, longitudinal, pivots, revenue, startups
dc.title To Pivot or Not To Pivot: On the Relationship between Pivots and Revenue among Startups
dc.type Conference Paper
dc.type.dcmi Text
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