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Gaining Competitive Edge with a Comprehension of Complex System of Self-Organized Startup Businesses

DOI: 10.4236/ojbm.2022.105127, PP. 2553-2577

Keywords: Competitive Edge, Complex Adaptive System, Self-Organised Startups, RBV

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Abstract:

Design/Methodology/Approach: System dynamics with the use of Vensim software was used to depict the various variables used in the study, and Structural Equation Modelling (SEM) assisted in analyzing the data with a sample size of 350 responses, depicting that all the measurement models and constructs used fit the data well. Purpose: The study aimed at investigating how self-organised startups can differentiate themselves by understanding the theory of complex adaptive system for a competitive edge. This study builds on complexity theory which is a system grounded on relationships, emergence and patterns. The major problem that has led to this research is the inability of entrepreneurs to gain competitive edge over their competitors leading to high startup chaos and failures. Startups that are seen as systems and managed well can gain competitive edge, compared to their rival startups which are not recognised as a set of systems to strategically organise and reorder regularly. Findings: The three exogenous variables, namely opportunities, resources and experience which were hypothesised all came up as having positive and significant relationships with competitive edge which was the mediating variable, while the mediating variable was also statistically significant to the dependent variable—startup business. Research Limitations/ Implications: The study was conducted in a cross-sectional base and could not capture the trend in the actions of the entrepreneurs used in the research in terms of their competitive edge. In the future, researchers can expand their focus by conducting longitudinal studies in this area to analyze how competitive edge influences self-organised startups over time. Attention was not paid to the competitive edge of the entrepreneurs in relation to specific organising activities. In this regard, studies that seek to examine how competitive edge influences specific organising activities of these entrepreneurs in the future will further enhance the understanding of self-organising entrepreneur startups. Practical Implications: The study will help identify a pool of potential startup innovators and provide special support to this group to help overcome the particular

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