Entrepreneurial Startups (de novo), Diversifying Entrants (de alio) and Incumbent Firms

Abstract

Definition: De novo or entrepreneurial start-up firms are new firms created in the focal industry context. De alio or diversifying firms are pre-existing firms in other industries that enter (diversify) into the focal industry context. Incumbent firms are pre-existing firms in the focal industry context. Abstract: We discuss the differences between incumbent firms and new entrants, indicating their heterogeneity in terms of technological capabilities, complementary assets and cognitive frames. Moreover, we highlight the heterogeneity within new entrants, based on their firm-level prior experience in related industries or their founder-level prior experiences as academics, users or ex-employees of existing firm