Value Addition for Technology Start-Ups Through Physical Co-Location

Authors

  •   Radhika Venkat PhD Scholar (Management), Jain University, 319, 17th Cross, 25th Main, JP Nagar, 6th Phase, Bangalore – 560 078, Karnataka
  •   Amit Gupta Former Professor, Jain University, 319, 17th Cross, 25th Main, JP Nagar, 6th Phase, Bangalore – 560 078, Karnataka
  •   Jayanta Banerjee Associate Professor, Christ University, Hosur Road, Bangalore – 560 029, Karnataka.
  •   Ramesh Babu Chellappan Management Researcher and Consultant & PhD Scholar (Management), Jain University, 319, 17th Cross, 25th Main, JP Nagar, 6th Phase, Bangalore – 560 078, Karnataka

DOI:

https://doi.org/10.17010/pijom/2021/v14i11/166978

Keywords:

Co-location

, Start-up Life Cycle, Value Addition, Vicarious Learning, Opportunity, Coworking.

JEL Classification Codes

, L26, M13, N75.

Paper Submission Date

, May 25, 2021, Paper Sent Back for Revision, September 25, Paper Acceptance Date, October 20, Paper Published Online, November 20, 2021.

Abstract

Numerous economic theories, knowledge, social, and communication theories have extensively explored the phenomenon of ‘physical co-location’ in various contexts. However, limited scholarly attention has been given to co-location in emerging contexts such as co-working spaces, predominantly used by start-ups. One of the critical questions examined is how co-location adds value to technology start-ups in the early and growth stages of their development. We chose a premium coworking space in Bangalore, India’s start-up capital, as the study’s research setting during January – March 2020. The qualitative research employed semi-structured interviews to explore the phenomenon. Our findings revealed that start-ups actively used co-located resources to explore, experiment, and validate new business ideas in the early stage. As they transitioned into the growth phase, they exploited co-located industry networks to expand into new markets. They also learned vicariously from other co-located resources and used them to solve complex problems and refined their processes and routines. As start-ups begin to grow and expand, co-location infrastructure-related costs are not justifiable, operations are less secure, and the meta culture of the co-located environment is in conflict with the firm’s operating culture. The results of this study have the potential to be significant for technology start-ups that are exploring new ways of working and addressing uncertainties during the early and growth stages of their development.

Downloads

Download data is not yet available.

Author Biographies

Radhika Venkat, PhD Scholar (Management), Jain University, 319, 17th Cross, 25th Main, JP Nagar, 6th Phase, Bangalore – 560 078, Karnataka

ORCID iD : https://orcid.org/0000-0003-1600-1705

Jayanta Banerjee, Associate Professor, Christ University, Hosur Road, Bangalore – 560 029, Karnataka.

ORCID iD : https://orcid.org/0000-0002-2079-8983

Ramesh Babu Chellappan, Management Researcher and Consultant & PhD Scholar (Management), Jain University, 319, 17th Cross, 25th Main, JP Nagar, 6th Phase, Bangalore – 560 078, Karnataka

ORCID iD : https://orcid.org/0000-0002-2709-7549

Downloads

Published

2021-11-15

How to Cite

Venkat, R., Gupta, A., Banerjee, J., & Chellappan, R. B. (2021). Value Addition for Technology Start-Ups Through Physical Co-Location. Prabandhan: Indian Journal of Management, 14(11), 8–24. https://doi.org/10.17010/pijom/2021/v14i11/166978

Issue

Volume 14, Issue 11, November 2021

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

References

Aggarwal, V. (2019). A conceptual study on factors of entrepreneurial potentiality and their impact on entrepreneurial intention with the moderating role of entrepreneurship education. Prabandhan : Indian Journal of Management, 12(6), 7–19. https://doi.org/10.17010/pijom/2019/v12i6/144932

Alcácer, J., & Delgado, M. (2016). Spatial organization of firms and location choices through the value chain. Management Science, 62(11), 3213–3234. https://doi.org/10.1287/mnsc.2015.2308

Bagla, R. K., & Khan, J. (2017). Customers’ expectations and satisfaction with online food ordering portals. Prabandhan : Indian Journal of Management, 10(11), 31–44. https://doi.org/10.17010/pijom/2017/v10i11/119401

Bajaj, K., & Mehendale, S. (2016). Food - delivery start-ups: In search of the core. Prabandhan : Indian Journal of Management, 9(10), 42–53. https://doi.org/10.17010/pijom/2016/v9i10/103073

Baker, M., Robinson, J. S., & Kolb, D. (2012). Aligning Kolb’s experiential learning theory with a comprehensive agricultural education model. Journal of Agricultural Education, 53(4), 1–16. https://doi.org/10.5032/jae.2012.04001

Barwinski, R. W., Qiu, Y., Aslam, M. M., & Clauss, T. (2020). Changing with the time: New ventures’ quest for innovation. Journal of Small Business Strategy, 30(1), 18–30. https://libjournals.mtsu.edu/index.php/jsbs/article/view/1662

Beaudry, C., & Swann, G. M. (2009). Firm growth in industrial clusters of the United Kingdom. Small Business Economics, 32, 409–424. https://doi.org/10.1007/s11187-007-9083-9

Becerra, M., Lunnan, R., & Huemer, L. (2008). Trustworthiness, risk, and the transfer of tacit and explicit knowledge between alliance partners. Journal of Management Studies, 45(4), 691–713. https://doi.org/10.1111/j.1467-6486.2008.00766.x

Belderbos, R., Olffen, W. V., & Zou, J. (2011). Generic and specific social learning mechanisms in foreign entry location choice. Strategic Management Journal, 32(12), 1309–1330. https://doi.org/10.1002/smj.938

Bilandzic, M., Schroeter, R., & Foth, M. (2013). Gelatine: Making coworking places gel for better collaboration and social learning. OzCHI’13: Proceedings of the 25th Australian Computer-Human Interaction Conference: Augmentation, Application, Innovation, Collaboration (pp. 427–436). https://doi.org/10.1145/2541016.2541027

Bouncken, R. B., & Fredrich, V. (2016). Joint knowledge creation and protection in coopetitive business model innovation. Academy of Management Proceedings, Vol. 2016(1), 1688–1693. https://doi.org/10.5465/ambpp.2016.48

Bouncken, R. B., Laudien, S. M., Fredrich, V., & Görmar, L. (2018). Coopetition in coworking-spaces: Value creation and appropriation tensions in an entrepreneurial space. Review of Managerial Science, 12, 385–410. https://doi.org/10.1007/s11846-017-0267-7

Bouncken, R., Ratzmann, M., Barwinski, R., & Kraus, S. (2020). Coworking spaces: Empowerment for entrepreneurship and innovation in the digital and sharing economy. Journal of Business Research, 114, 102–110. https://doi.org/10.1016/j.jbusres.2020.03.033

Braun, V., & Clarke, V. (2019). Reflecting on reflexive thematic analysis. Qualitative Research in Sport, Exercise and Health, 11(4), 589–597. https://doi.org/10.1080/2159676X.2019.1628806

Braun, V., & Clarke, V. (2021). One size fits all? What counts as quality practice in (reflexive) thematic analysis? Qualitative Research in Psychology, 18(3), 328–352. https://doi.org/10.1080/14780887.2020.1769238

Burt, R. S. (2000). The network structure of social capital. Research in Organizational Behavior, 22, 345–423. https://doi.org/10.1016/s0191-3085(00)22009-1

Capdevila, I. (2014). Different inter-organizational collaboration approaches in coworking spaces in Barcelona. SSRN Electronic Journal, 1–30. https://doi.org/10.2139/ssrn.2502816

Chakraborty, D., & Altekar, S. (2021). Work from home (WFH), COVID-19, and its impact on women. Prabandhan : Indian Journal of Management, 14(9), 22–29. https://doi.org/10.17010/pijom/2021/v14i9/166294

Cho, Y.- K. (2018). Knowledge-based approach and total factor productivity: Focusing on Korean manufacturing industry. Korea Association for International Commerce and Information, 20(3), 235–259. https://doi.org/10.15798/kaici.2018.20.3.235

Collins, H. (2010). Tacit and explicit knowledge. https://doi.org/10.7208/chicago/9780226113821.001.0001

Csaszar, F. A., & Levinthal, D. A. (2016). Mental representation and the discovery of new strategies. Strategic Management Journal, 37(10), 2031–2049. https://doi.org/10.1002/smj.2440

Deeds, D. L., Decarolis, D., & Coombs, J. (2000). Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms. Journal of Business Venturing, 15(3), 211–229. https://doi.org/10.1016/S0883-9026(98)00013-5

Delgado, M. (2020). The co-location of innovation and production in clusters. Industry and Innovation, 27(8), 842–870. https://doi.org/10.1080/13662716.2019.1709419

Denzin, N. K., & Lincoln, Y. S. (1995). Transforming qualitative research methods: Is it a revolution? Journal of Contemporary Ethnography, 24(3), 349–358. https://doi.org/10.1177/089124195024003006

Dorry, S. (2014). Innovating in urban economies: Economic transformation in Canadian city-regions. Space and Polity, 20(2), 246–248. https://doi.org/10.1080/13562576.2016.1189036

Dubé, J., Brunelle, C., & Legros, D. (2016). Location theories and business location decision: A micro-spatial investigation of a nonmetropolitan area in Canada. Review of Regional Studies, 46(2), 143–170. https://doi.org/10.52324/001c.8039

Dworkin, S. L. (2012). Sample size policy for qualitative studies using in-depth interviews. Archives of Sexual Behavior, 41(6), 1319–1320. https://doi.org/10.1007/s10508-012-0016-6

Edgeworth, F. Y. (1895). [Review of Principles of Economics., by A. Marshall]. The Economic Journal, 5(20), 585–589. https://doi.org/10.2307/2956644

Folta, T. B., Cooper, A. C., & Baik, Y. - S. (2006). Geographic cluster size and firm performance. Journal of Business Venturing, 21(2), 217–242. https://doi.org/10.1016/j.jbusvent.2005.04.005

Frese, M. (2009). Towards a psychology of entrepreneurship - An action theory perspective. Foundations and Trends in Entrepreneurship, 5(6), 437–496. https://doi.org/10.1561/0300000028

Ghaljaie, F., Naderifar, M., & Goli, H. (2017). Snowball sampling: A purposeful method of sampling in qualitative research. Strides in Development of Medical Education, 14(3). https://doi.org/10.5812/sdme.67670

Graebner, M. E. (2004). Momentum and serendipity: How acquired leaders create value in the integration of technology firms. Strategic Management Journal, 25(8–9), 751–777. https://doi.org/10.1002/smj.419

Hite, J. M., & Hesterly, W. S. (2001). The evolution of firm networks: From emergence to early growth of the firm. Strategic Management Journal, 22(3), 275–286. https://doi.org/10.1002/smj.156

Kalnins, A., & Chung, W. (2004). Resource-seeking agglomeration: A study of market entry in the lodging industry. Strategic Management Journal, 25(7), 689–699. https://doi.org/10.1002/smj.403

Kor, Y. Y., & Misangyi, V. F. (2008). Outside directors’ industry-specific experience and firms’ liability of newness. Strategic Management Journal, 29(12), 1345–1355. https://doi.org/10.1002/smj.709

Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(S2), 95–112. https://doi.org/10.1002/smj.4250141009

Levitt, B., & March, J. G. (1988). Organizational learning. Annual Review of Sociology, 14, 319–338. https://doi.org/10.1146/annurev.so.14.080188.001535

Lichtenstein, B. B., Dooley, K. J., & Lumpkin, G. T. (2006). Measuring emergence in the dynamics of new venture creation. Journal of Business Venturing, 21(2), 153–175. https://doi.org/10.1016/j.jbusvent.2005.04.002

Lokhande, M. A. (2017). Analysis of entrepreneurial skill development of disadvantaged group entrepreneurs. Prabandhan : Indian Journal of Management, 10(3), 7–18. https://doi.org/10.17010/pijom/2017/v10i3/111423

Malmberg, A., & Maskell, P. (2006). Localized learning revisited. Growth and Change, 37(1), 1–18. https://doi.org/10.1111/j.1468-2257.2006.00302.x

Malmberg, A., Solvell, O., & Zander, I. (1996). Spatial clustering, local accumulation of knowledge and firm competitiveness. Geografiska Annaler : Series B, Human Geography, 78(2), 85–97. https://doi.org/10.1080/04353684.1996.11879699

Mathias, B. D., McCann, B. T., & Whitman, D. S. (2020). A meta-analysis of agglomeration and venture performance: Firm-level evidence. Strategic Entrepreneurship Journal, 15(3), 430–453. https://doi.org/10.1002/sej.1390

McCann, B. T., & Folta, T. B. (2009). Demand- and supply-side agglomerations: Distinguishing between fundamentally different manifestations of geographic concentration. Journal of Management Studies, 46(3), 362–392. https://doi.org/10.1111/j.1467-6486.2008.00815.x

Moriset, B. (2017). Inventing new places in the creative city: coworking spaces, Territory in movement. Revue de géographie et aménagement [Online], 34. https://doi.org/10.4000/tem.3868

Muegge, S. (2013). Platforms, communities, and business ecosystems: Lessons learned about technology entrepreneurship in an interconnected world. Technology Innovation Management Review, 3(2), 5–15. https://doi.org/10.22215/timreview655

Nambisan, S., & Baron, R. A. (2013). Entrepreneurship in innovation ecosystems: Entrepreneurs’ self-regulatory processes and their implications for new venture success. Entrepreneurship Theory and Practice, 37(5), 1071–1097. https://doi.org/10.1111/j.1540-6520.2012.00519.x

O’Mahony, S., & Bechky, B. A. (2008). Boundary organizations: Enabling collaboration among unexpected allies. Administrative Science Quarterly, 53(3), 422–459. https://doi.org/10.2189/asqu.53.3.422

Patton, M. Q. (1999). Enhancing the quality and credibility of qualitative analysis. Health Services Research, 34(5 Pt 2),1189–1208. http://www.ncbi.nlm.nih.gov/pubmed/10591279%0Ahttp://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=PMC1089059

Pe’er, A., Vertinsky, I., & King, A. (2008). Who enters, where and why? The influence of capabilities and initial resource endowments on the location choices of de novo enterprises. Strategic Organization, 6(2), 119–149. https://doi.org/10.1177/1476127008090007

Pfeffermann, N., Minshall, T., & Mortara, L. (2013). Strategy and communication for innovation. https://doi.org/10.1007/978-3-642-41479-4

Pollard, J. (2003). Book Review: Knowledge economies: Clusters, learning and cooperative advantage. Progress in Human Geography, 27(1), 125–127. https://doi.org/10.1177/030913250302700111

Porter, M. E. (2000). Location, competition, and economic development: Local clusters in a global economy. Economic Development Quarterly, 14(1), 15–34. https://doi.org/10.1177/089124240001400105

Posen, H. E., & Chen, J. S. (2013). An advantage of newness : Vicarious learning despite limited absorptive capacity. Organization Science, 24(6). https://doi.org/10.1287/orsc.1120.0815

Rawley, E., & Seamans, R. (2020). Internal agglomeration and productivity: Evidence from microdata. Strategic Management Journal, 41(10), 1770–1798. https://doi.org/10.1002/smj.3200

Scott, M., & Bruce, R. (1987). Five stages of growth in small business. Long Range Planning, 20(3), 45–52. https://doi.org/10.1016/0024-6301(87)90071-9

Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469. https://doi.org/10.1287/orsc.11.4.448.14602

Sperindé, S., & Nguyen-Duc, A. (2020). Fostering open innovation in coworking spaces: A study of Norwegian start-ups. In, A. Nguyen-Duc, J. Münch, R. Prikladnicki, X. Wang, & P. Abrahamsson (eds.), Fundamentals of software startups. Springer, Cham. https://doi.org/10.1007/978-3-030-35983-6_10

Spinuzzi, C. (2012). Working alone together : Coworking as emergent collaborative activity. Journal of Business and Technical Communication, 26(4), 399–441. https://doi.org/10.1177/1050651912444070

Steiber, A. (2020). Technology management: Corporate-startup co-location and how to measure the effects. Journal of Technology Management and Innovation, 15(2), 11–22. https://doi.org/10.4067/s0718-27242020000200011

Tajpour, M., Salamzadeh, A., Salamzadeh, Y., & Braga, V. (2021). Investigating social capital, trust and commitment in family business: Case of media firms. Journal of Family Business Management, Ahead of Print. https://doi.org/10.1108/JFBM-02-2021-0013

Tomar, J. S. (2017). State of IT adoption in SMEs in India. Prabandhan : Indian Journal of Management, 10(1), 40–53. https://doi.org/10.17010/pijom/2017/v10i1/109102

Van Der Panne, G. (2004). Agglomeration externalities: Marshall versus Jacobs. Journal of Evolutionary Economics, 14, 593–604. https://doi.org/10.1007/s00191-004-0232-x

Venkat, R., Gupta, A., Banerjee, J., & Chellappan, R. B. (2021). Physical co-location: An intersection of problem-solving and vicarious learning. Action Learning: Research and Practice. https://doi.org/10.1080/14767333.2021.1954879

Wang, L., Madhok, A., & Li, S. X. (2014). Agglomeration and clustering over the industry life cycle: Toward a dynamic model of geographic concentration. Strategic Management Journal, 35(7), 995–1012. https://doi.org/10.1002/smj.2141

Wright, M., & Drori, I. (2018). Accelerators: Successful venture creation and growth. Accelerators: Successful Venture Creation and Growth, 1–212. https://doi.org/10.4337/9781786434098

Zhang, Y., & Li, H. (2010). Innovation search of new ventures in a technology cluster : The role of ties with service intermediaries. Strategic Management Journal, 31(1), 88–109. https://doi.org/10.1002/smj.806