Lean Startups and Innovation Strategy: Towards a New Paradigm? Andy - - PowerPoint PPT Presentation

Lean Startups and Innovation Strategy: Towards a New Paradigm?

Andy Wu & David Clough Academy of Management Annual Meeting 5th August 2017

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The Lean Startup framework

• Ideas popularized by Eric Ries and Steve Blank
• They put forward a systematic process for finding a new

venture business model, for low up front cost

• Some major components of the process

– ‘Customer Development’ – ‘Minimum Viable Product’ – ‘Validated Learning’ & ‘Build-Measure-Learn’ – ‘Pivot or persevere’ decisions – A/B Testing

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The method has been broadly adopted amongst practitioners and gets taught in many entrepreneurship programs

The Lean Startup framework

“Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was

• interesting. When customers ultimately communicate, through their indifference, that

they don't care about the idea, the startup fails.” Eric Ries, theleanstartup.com

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Is ‘The Lean Startup’ being cited in academic research?

• As of 2nd August 2017, Eric Ries’ book has 2,083 Google Scholar Citations
• 26 articles in the top management & entrepreneurship journals cite Ries

2 4 6 8 10 12 2011 2012 2013 2014 2015 2016 H1 2017

Articles citing Ries 2011, count by year (15 top management / entrepreneurship journals)

Is ‘The Lean Startup’ being cited in academic research?

• As of 2nd August 2017, Eric Ries’ book has 2,083 Google Scholar Citations
• 26 articles in the top management & entrepreneurship journals cite Ries

2 4 6 8 10 12 2011 2012 2013 2014 2015 2016 H1 2017

Articles citing Ries 2011, count by year (15 top management / entrepreneurship journals)

Is ‘The Lean Startup’ being cited in academic research?

• As of 2nd August 2017, Eric Ries’ book has 2,083 Google Scholar Citations
• 26 articles in the top management & entrepreneurship journals cite Ries

2 4 6 8 10 12 2011 2012 2013 2014 2015 2016 H1 2017

Articles citing Ries 2011, count by year (15 top management / entrepreneurship journals)

1st edition of this PDW

Is ‘The Lean Startup’ being cited in academic research?

• As of 2nd August 2017, Eric Ries’ book has 2,083 Google Scholar Citations
• 26 articles in the top management & entrepreneurship journals cite Ries

1 2 3 4 5 6 ETP JBV SEJ RP AMR JMS AMP AMD ASQ

Articles citing Ries 2011, count by journal (15 top management / entrepreneurship journals)

Where does Lean Startup methodology intersect with academic research?

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Searching for business model / for

• pportunities

Lean Startup

(Entrepreneurial) Learning from failure

e.g. McGrath, 1999

Organizational strategic change Engaging users in entrepreneurial process New Product Development process Deliberate learning from experimentation

e.g. Marx, Gans & Hsu, 2014 e.g. Shah & Tripsas, 2007 e.g. Erat & Kavadias, 2008 e.g. Amit & Zott, 2001; Pontikes & Barnett, 2017 e.g. Thomke, 1998

Where does Lean Startup methodology intersect with academic research?

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Searching for business model / for

• pportunities

Lean Startup

(Entrepreneurial) Learning from failure

e.g. McGrath, 1999

Organizational strategic change Engaging users in entrepreneurial process New Product Development process Deliberate learning from experimentation

e.g. Marx, Gans & Hsu, 2014 e.g. Shah & Tripsas, 2007 e.g. Erat & Kavadias, 2008 e.g. Amit & Zott, 2001; Pontikes & Barnett, 2017 e.g. Thomke, 1998

Interdependence

• f elements of strategy

Some speculative research questions to ‘prime the pump’

• RQ1: Does adopting Lean Startup methodology raise venture performance?

– What research designs and settings could test this?

• RQ2: Can we theorize about the Lean Startup methodology?

– What existing theoretical frameworks map onto Lean Startup—or conflict with it?

• RQ3: What are the boundary conditions or moderators of a Lean Startup innovation

strategy? – For what environments is it more / less effective? – For what types of organizations is it more / less effective?

• RQ4: Are the constituent elements of the Lean Startup methodology intrinsically

complementary? – Which elements work best together, and why? – How might we model this, e.g. formally or with simulation?

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