- IIM Lucknow’s latest research uncovers how ambidextrous founders adept in innovation and efficiency accelerate startups to billion-dollar valuations, offering key insights for investors and high-growth ventures
Indian Institute of Management Lucknow researchers have decoded the success strategies of unicorn startups, companies that surpass a billion-dollar valuation. This groundbreaking research highlights how the unique cognitive abilities of startup founders drive their firms to achieve such remarkable growth.
Led by Sabyasachi Sinha, along with research scholars Vivek Kumar Jha and Ravi Roshan, the study demonstrates the profound impact of ambidextrous orientation on the journey of startup teams. Published in the International Journal of Entrepreneurial Behaviour & Research, the findings reveal that startups led by founders adept in both exploration (innovation and opportunity discovery) and exploitation (efficiency and scaling up) reach unicorn status significantly faster.
This research stands out as a pioneering effort in India, examining the success stories of 83 Indian unicorn startups through 220 interviews with their founders.
Using advanced statistical models like the Cox Hazard model and linear ordinary least squares regression, the study presents a compelling case: the stronger the collective ambidextrous orientation of the founding team, the swifter their journey to a billion-dollar valuation.
Key findings of the research include:
- Founder Characteristics – Startups, often led by small, agile teams, thrive on the personal characteristics of their founders, including their ambidextrous capabilities. This study provides invaluable insights into the traits that drive startup success.
- Resource Constraints – With limited resources, startups must expertly balance innovation and efficiency. This research reveals how ambidextrous founders manage these competing priorities to drive growth.
- Investor Insights – Investors seek resilient, opportunistic teams. Ambidextrous founding teams exemplify these traits, influencing investment decisions and informing strategic startup growth.
As startups globally aim to replicate the success of unicorns, understanding and leveraging ambidextrous capabilities among founder teams is vital. This research not only enriches academic discourse but also provides actionable strategies for investors and policymakers to support high-growth ventures.
