The business of entrepreneurial ventures is commonly embedded in innovative technologies and inventive business concepts. Despite their originality, entrepreneurial ventures suffer from skepticism concerning their ability to produce price, that prevents them from achieving market success or gaining crucial resources. to deal with this issue, entrepreneurial ventures typically leverage public language in mass media (e.g., newspapers, press releases) as a strategic suggests that to justify their price and to form their business purposeful to external stakeholders like investors.
Such linguistic ways square measure significantly purposeful as a result of external stakeholders have comparatively very little access to entrepreneurial ventures’ internal data and thus typically have faith in their self-disclosure to judge their prospects and to form relevant strategic choices. As a result, entrepreneurial ventures’ press releases, that “announce vital milestones, actions and achievements,†become a valuable data supply for external stakeholders /For example, skilled investors typically use press releases to hunt potential investments. As a result, entrepreneurial ventures’ linguistic ways, like storytelling or), identity claims and analogies and metaphors play a vital role in their efforts to realize legitimacy, to ascertain new markets, and to accumulate resources from investors.
Despite the additive insights, living analysis during this vein has nevertheless to theorize a crucial development in entrepreneurial ventures’ strategic use of public language. On the one hand, they need to reveal the noveltyof their business to line a transparent distinction from established practices and to underscore their distinctive price to stakeholders. The strategy to try and do thus includes light characteristics like original or updated options of their product, their avant-garde technologies or technological enhancements over existing technologies, moreover because the creative thinking of their business concepts. On the opposite hand, entrepreneurial ventures’ technologies and business concepts square measure typically unestablished practices, and stakeholders might have problem understanding what they are doing. As a result, entrepreneurial ventures should facilitate comprehension by victimization linguistic operations that make a way of familiarityand highlight the commonalities and linkages between their new offerings and existing ones.
As noted by entrepreneurial ventures got to show the novelty of their innovations however should “present the which means and price of their innovations†in language that provides the innovations “the look of acquainted ideasâ€. Similarly,)argued that to form their product perceivable and engaging, entrepreneurial ventures ought to describe “the unfamiliar in terms of the familiar†(p. 443). Despite such understandings, existing analysis has neither formally theorized entrepreneurial ventures’ language concerning novelty and familiarity as a twofold linguistic strategy, nor tied this strategy to their resource acquisition from venture capitalists (VCs).
As a result, we have a tendency to don’t totally perceive the theoretical mechanisms related to such linguistic operations or their impact on entrepreneurial ventures’ growth, we have a tendency to address this void by drawing on the framing perspective to create by mental act entrepreneurial ventures’ linguistic strategy concerning novelty and familiarity. though totally different framing views exist, we have a tendency to significantly specialise in the framing that issues however social actors influence audiences’ interpretation and action by victimization linguistic frames, made by selective use of vocabularies.
How can novelty and familiarity frames employed by entrepreneurial ventures influence their VC funding opportunities?
We prefer to study this analysis question as a result of VCs became a serious supply of finance for entrepreneurial ventures. Indeed, by operating with VCs, entrepreneurial ventures might profit in multiple ways that to boost their probability of survival and overall performance. To capture entrepreneurial ventures’ funding opportunities, we have a tendency to follow previous studies to specialise in the entire quantity of funding associate degree enterpriser might get in an exceedingly specific investment event. we have a tendency to suppose that novelty and familiarity frames can singly and put together drive the number of funding. we have a tendency to any explore the potential tension between the 2 frames by examining trade capital intensity as a condition of novelty and familiarity frames. we have a tendency to check our hypotheses victimization knowledge from 2883 U.S.-based data technology (IT) ventures that were concerned in 5849 investment events from 2003 to 2014.
Our analysis makes many contributions. First, it contributes to the entrepreneurship literature by being the primary to use the framing perspective to theorize and analyze entrepreneurial ventures’ linguistic ways. Linking linguistic frames to VC funding, our study demonstrates that novelty and familiarity frames absolutely influence the number of funding which the coincidental use of each frames can any strengthen this influence. Thus, our study highlights the importance of linguistic frames in entrepreneurial ventures’ funding strategy. we have a tendency to additionally recommend that the effectiveness of linguistic frames is also industry-specific. Second, our study contributes to the framing literature by introducing 2 new framing ideas, novelty and familiarity frames, that square measure extensively employed in entrepreneurial contexts. we provide proof that entrepreneurial ventures’ strategic use of linguistic frames (e.g., novelty and familiarity frames) might cause concrete outcomes like increased opportunities for funding, significantly once these frames work the trade conditions.
