Corporations and startups work together – it boosts resources and market power for both facilitating positive outcomes – prefer comprehensive research to speculative journalists.
Giglio et al. 23 – Carlo Giglio (PhD in Management Engineering, Innovation, and Creativity from the University of Calabria, Adjunct professor at University of Calabria); Vincenzo Corvello (PhD in Management from the University Federico II of Naples, Associate professor at University of Messina); Ilda Maria Coniglio (MA in Industrial and Management Engineering from the University of Calabria, Assistant professor of Economics and Business Management at University of Calabria); Sascha Kraus (Ph.D. in Social and Economic Sciences from Klagenfurt University, Ph.D. in Industrial Engineering and Management from Helsinki University of Technology, Professor of Management/Entrepreneurship at Free University of Bozen-Bolzano); Johanna Gast (Ph.D. in Economics and Business Administration from LUT University, MsC in Entreprenuership and Family Business from Universität Liechtenstein, Associate Professor & Head of Specialization “Strategy & Consulting” at Montpellier Business School), 8-17-2023, "Cooperation between large companies and start-ups: An overview of the current state of research", European Management Journal, https://www.sciencedirect.com/science/article/pii/S0263237323000919 /$antiP/
This study introduces a comprehensive integrative framework that synthesizes the key determinants of collaboration between start-ups and large companies. This framework consolidates the prominent antecedents, configurations, and outcomes of such collaborations identified in previous research. By summarizing these factors, our framework serves as a valuable tool for comprehending and analyzing the dynamics of start-up and large company collaboration.
Regarding the antecedents of collaboration between start-ups and large companies, our findings align with the literature, emphasizing the importance of leveraging complementary resources and capabilities through collaboration (Dyer & Singh, 1998; Mesquita et al., 2017; Salvato et al., 2017). The divergent characteristics of firm size, organizational culture, and other factors render start-ups and large companies ideal partners in accessing untapped resources and capitalizing on synergies (Prashantham & Kumar, 2011; Allmendinger & Berger, 2020; Minshall et al., 2010).
In terms of configuration, the framework underscores the significance of the structure and process of collaboration between large companies and start-ups. Prior studies have highlighted the establishment of a well-defined structure and effective communication channels between these two entities (Kanbach & Stubner, 2016; Kurpjuweit & Wagner, 2020a, 2020b; Shankar & Shepherd, 2019). This finding aligns with research that recognizes the challenges associated with interorganizational collaboration (Gulati, Wohlgezogen, & Zhelyazkov, 2012; Oliveira & Lumineau, 2019). The broader literature on cooperation also suggests the relevance of informal relationships or a combination of formal and informal structures (Poppo & Zenger, 2002; Ryall & Sampson, 2009). Hence, our results indicate the relevance of informal relationships (Prashantham & Kumar, 2011; Stern et al., 2014), which remain relatively understudied in the context of collaboration between large companies and start-ups; moreover, the impact of blending formal and informal relationships remains largely unexplored.
Regarding outcomes, our framework particularly emphasizes the role of collaboration as a driver of innovation. The literature supports this notion, indicating that collaboration between start-ups and large companies not only facilitates their exchange of resources and capabilities, thus enhancing their market power and market access (e.g., Bouncken et al., 2014; Bouncken et al., 2022; Faria et al., 2010; Freire & Gonçalves, 2022; Frydlinger et al., 2019), but also fosters the development of knowledge-sharing routines (Dyer & Singh, 1998; Salvato et al., 2017). Such knowledge sharing and its associated (un)learning processes play a crucial role in driving innovation, particularly for firms facing limitations in internal resources and knowledge (Camison-Zornoza et al., 2004). Innovation, then, emerges as a key outcome of collaboration for both start-ups and large companies (e.g., Hagedoorn & Wang, 2012; Hutter et al., 2020; Rothaermel, 2001a, 2001b).
In summary, the integrative framework offers a visual representation of the antecedents, configurations, and outcomes of collaboration between start-ups and large companies. The insights presented in Fig. 2 align with the literature cited in the theoretical section, underscoring the manifold significance of collaboration between start-ups and large companies. This work highlights the key role of formal and informal relationships in such partnerships and the collaboration potential for accessing untapped resources and for innovating; however, it identifies fundamental gaps in terms of the individual and organizational factors, the types of innovation pursuits, and the consequences of failures that impact partnership dynamics and performance.