Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • January–February 2023
  • Article
  • Organization Science

External Interfaces and Internal Processes: Market Positioning and Divergent Professionalization Paths in Young Ventures

By: Alicia DeSantola, Ranjay Gulati and Pavel Zhelyazkov
  • Format:Print
  • | Pages:23
ShareBar

Abstract

We explore how the initial market positioning of entrepreneurial ventures shapes how they professionalize over time, focusing specifically on the development of functional roles. In contrast to existing literature, which has presumed a uniform march toward professionalization as ventures complete developmental milestones, we advance a contingent perspective distinguishing between the development of external interface functions (marketing & sales and customer development) and internal process functions (accounting, human resources, and finance). Specifically, we argue that positioning in an unconventional market space raises demand for external engagement that focuses ventures’ attention and resources toward developing external interface roles. At the same time, such unconventional ventures are less apt to elaborate their internal process roles relative to more conventional peers. We test these predictions using a novel longitudinal dataset on the internal organizations of 3,748 U.S.-based entrepreneurial ventures. In contrast to common assumptions of convergent professionalization, our theory and findings advance the perspective that ventures pursue divergent professionalization paths based on their initial market positioning.

Keywords

Market Positioning; Professionalization; Scaling; Entrepreneurship; Strategy; Business Startups; Growth and Development; Organizational Structure

Citation

DeSantola, Alicia, Ranjay Gulati, and Pavel Zhelyazkov. "External Interfaces and Internal Processes: Market Positioning and Divergent Professionalization Paths in Young Ventures." Organization Science 34, no. 1 (January–February 2023): 1–23.
  • Find it at Harvard
  • Read Now

About The Author

Ranjay Gulati

Organizational Behavior
→More Publications

More from the Authors

    • July–August 2023
    • Harvard Business Review

    Investing in Growth Through Uncertainty

    By: Ranjay Gulati
    • July 7, 2023
    • Inc.com

    3 Crucial Factors to Manage Your Company’s Growth Without Losing Its Spark

    By: Ranjay Gulati
    • June 30, 2023
    • Inc.com

    How to Save a Stumbling Startup

    By: Ranjay Gulati
More from the Authors
  • Investing in Growth Through Uncertainty By: Ranjay Gulati
  • 3 Crucial Factors to Manage Your Company’s Growth Without Losing Its Spark By: Ranjay Gulati
  • How to Save a Stumbling Startup By: Ranjay Gulati
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College