S. Vishnu Sharma
IIM Lucknow researchers have decoded the success strategies of unicorn startups, companies that surpass a billion-dollar valuation through a pioneering study.
This groundbreaking research highlights how the unique cognitive abilities of startup founders drive their firms to achieve such remarkable growth.
Researchers
Led by Prof. Sabyasachi Sinha, along with research scholars Dr. Vivek Kumar Jha and Mr. Ravi Roshan, the study demonstrates the profound impact of ambidextrous orientation on the journey of startup teams, say sources from IIM Lucknow.
It was published in the prestigious International Journal of Entrepreneurial Behaviour & Research.
The findings reveal that startups led by founders adept in both exploration (innovation and opportunity discovery) and exploitation (efficiency and scaling up) reach unicorn status significantly faster.
Pioneering Effort
This research stands out as a pioneering effort in India, examining the success stories of 83 Indian unicorn startups through 220 interviews with their founders.
Models
Using advanced statistical models like the Cox Hazard model and linear ordinary least squares regression, the study by IIM Lucknow presents a compelling case: the stronger the collective ambidextrous orientation of the founding team, the swifter their journey to a billion-dollar valuation.
Significance
Prof. Sabyasachi Sinha, Associate Professor, Strategic Management, IIM Lucknow spoke about the significance of the research.
This research is a testament to the critical balance that startup founders must strike between exploring new opportunities and efficiently scaling their operations, said Prof Sabyasachi of IIM Lucknow.
Our findings clearly show that startups with highly ambidextrous founding teams navigate uncertainties better and capitalize on opportunities more effectively, accelerating their path to unicorn status, he said.
Key Findings
Key findings of the research include:
Founder Characteristics: Startups, often led by small, agile teams, thrive on the personal characteristics of their founders, including their ambidextrous capabilities.
This study provides invaluable insights into the traits that drive startup success.
Resource Constraints: With limited resources, startups must expertly balance innovation and efficiency.
This research reveals how ambidextrous founders manage these competing priorities to drive growth.
Investor Insights: Investors seek resilient, opportunistic teams.
Ambidextrous founding teams exemplify these traits, influencing investment decisions and informing strategic startup growth.
Roadmap
Prof. Sabyasachi Sinha of IIM Lucknow spoke on how this study offers a roadmap for aspiring entrepreneurs.
Our research addresses a critical gap by exploring ambidexterity in startups rather than established firms, he said.
We believe these cognitive skills are crucial for startup growth and can significantly speed up the attainment of unicorn status, said Prof Sinha of IIM Lucknow.
By focusing on the ambidextrous capabilities of their founding teams, startups can enhance their internal strengths and expedite their journey to becoming unicorns, he said.
Aim
As startups globally aim to replicate the success of unicorns, understanding and leveraging ambidextrous capabilities among founder teams is vital.
This research not only enriches academic discourse but also provides actionable strategies for investors and policymakers to support high-growth ventures.
About IIM Lucknow
IIM Lucknow, established in 1984, is the fourth in the prestigious IIM family of management schools to be established in India after IIM Calcutta, IIM Ahmedabad and IIM Bangalore.
In 2005, IIM Lucknow expanded its area of influence in the realm of management education by becoming the first IIM to set up a satellite campus exclusively for Executive Education at NOIDA in Delhi NCR region.
IIM Lucknow is accredited by AACSB and AMBA while its EQUIS Accreditation is ongoing.
The institute features in the prestigious FT -100 Top Global Business schools for both the 2-year Flagship PGP program and One-year IPMX Program.
It is also consistently ranked amongst top business schools in the NIRF Rankings.
IIM Lucknow was the first IIM to start a 2-year full time MBA program in Sustainable Management 8 years back.
It also has a long-standing full-time MBA program in Agri Business Management.
Throughout its last 39 years’ journey IIML has touched millions of lives through its academic programs, executive education programs, research and consulting.
The centres for excellence at IIM Lucknow including the Centre for Public Policy, Centre for Food and Agribusiness Management, Centre for Business Sustainability, Centre for Marketing in Emerging Economies, to name a few, regularly carry out evidence-based research and interventions in public policy and management practice.
Faculty of IIM Lucknow also feature in top 2% of global scientists for research output and impact.
The alumni of IIM Lucknow now occupy top positions in the world of business, public policy and in several other fields.
Situated in a city known for its cultural heritage, the campus is spread over more than 190 acres of beautifully landscaped area.
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With its foundation in the city of “Tehzeeb”, IIM Lucknow inculcates human values and professional ethics in the students to help them make a positive impact not just on the nation but on a global platform.
IIM Lucknow has an ideal setup conducive to learning, accessibility and excellence.