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139 Strategic experimentation: Understanding change and performance in new ventures??Original Research ArticleJournal of Business Venturing, Volume 15, Issues 5-6, September-November 2000, Pages 493-521Charlene L. Nicholls-Nixon, Arnold C. Cooper, Carolyn Y. Woo ?Close preview??|?? Purchase PDF (142 K) ??|?? Related articles??|??Related reference work articles???? AbstractAbstract | Figures/TablesFigures/Tables | ReferencesReferences Abstract This research was motivated by an interest in understanding more about the extent to which entrepreneurs initiate changes along various dimensions of strategy, the nature of those changes and their implications for firm performance. Our interest in this topic began with the observation that, within the large body of strategic-change literature, the research effort has focused almost exclusively on large and established firms. Moreover, a fundamental assumption underlying much of this work is that strategic change involves movement from one dominant strategic approach to another. This premise does little to motivate or contribute to the understanding of change and strategy in new ventures, where it is less likely that a dominant approach exists. Thus, we drew upon the literature in managerial cognition to develop the idea of strategic experimentation as the conceptual foundation for studying change and strategy in new ventures. Our basic premise is that in new ventures, changes along dimensions of strategy are reflective of a process of trial and error learning, whereby the entrepreneur seeks to develop an understanding of the competitive situation and determine how to compete within that context. Further, we suggest that some aspects of the firms strategy are more likely to be the focus of experimentation than others. Building on these premises we developed a series of research hypotheses which propose that the greater the level of perceived environmental hostility, the higher the level of strategic experimentation th