Knowledge that Transforms

This case study examines Sanders Hospital's (fictitious name) decision on a strategy for developing a specialized cardiovascular program. Cardiovascular services had been identified as an opportunity to assist Sanders better compete in the turbulent hospital industry. The hospital was in the process of determining the best alternative for seizing and pursuing this opportunity. Two options were under consideration. First, Sanders could implement the program internally and compete directly in the market. The second option was to jointly develop the cardiovascular program through an alliance with one of the two regional hospitals who were contemplating entering Sanders’ market area.

Cooperative strategies are of growing interest in entrepreneurship. Current research focuses on high-tech companies, but less is known about cooperative activities in non-high-tech businesses. Differences in distinct competencies based on technology suggest that lessons from high-tech companies may not fully apply to non-high-tech companies. This research explores the nature, extent, and approaches to cooperative strategies in non-high-tech new ventures, utilizing quantitative and qualitative methods. Survey data is analyzed to assess usage and characteristics of cooperative strategies. Results show that few companies used cooperative strategies and these were not central to core operations. Field interviews comparing three non-high-tech and three high-tech new ventures examine motives and approaches to cooperative strategies. For all six cases, resource constraints motivated usage of cooperative strategies and all had cooperative arrangements with competitors. However, goals and approaches to cooperative strategies differed between non-high-tech and high-tech businesses. Findings suggest future research directions.

This study examines two types of venture capital networks — those among angels and those among venture capital firms (VCFs) — to determine if they could contribute to the fragmentation of the market for venture capital. If it were not fragmented, entrepreneurs would have very limited opportunities to present their deals to more than one source for funding. This study found evidence to support some market fragmentation, which was based on the reliability of the informants utilized by each network. Market fragmentation creates opportunities for entrepreneurs to tap at least two separate sources of funding.

This paper examines the Hungarian venture capital industry, one of the most well-developed in the emerging economies of Central and Eastern Europe. Using a combination of secondary data, mail questionnaires, and face-to-face Interviews, the paper identifies areas of both similarity and difference with experience in developed capitalist economies. The need for venture capitalists to obtain control is found to be much stronger in Hungary than in the US. The relative importance of DCF and price/earnings ratio methods of valuation are reversed when Hungary and western experience are compared. There was evidence that Hungarian domestic venture capitalists engage in less detailed monitoring than either venture capitalists elsewhere or foreign-based venture capitalists operating in Hungary.

This study was designed to evaluate the programs offered by the Venture Development Group of the University of Calgary and to discuss the manner in which program evaluations are conducted. Results show that clients of the program have (1) grown faster than the average business in Alberta, (2) perceive that the program has added value to their ventures, (3) believe the programs have met most of their expectations, and (4) often implement the advice received. Discussion of program evaluation indicates that issues of causality, generalization, control measures, nonresponse bias, and evaluator bias are among the most pressing issues that must be addressed in designing more effective impact studies.