Venture idea newness, relatedness and performance in nascent ventures

Abstract

The study of venture idea characteristics and their contextual fit are key research goals in entrepreneurship (Davidsson, 2004). In line with this, the present study investigated the importance of newness and relatedness in the venture idea on the venture creation process among nascent entrepreneurs. Progress in the venturing process is examined in terms of the pace of progress measured by the completion of gestation activities. Study hypothesized that venture idea newness slows down the venturing process and relatedness facilitates the venturing process. Results of 727 nascent entrepreneurs in Australia indicated that there is no support for the hypothesis that relatedness assists the gestation progress. Newness in terms of product/service is significant but, on the contrary to the expectation, has a positive impact on the venture creation progress.