The Art of the Pivot: How New Ventures Manage Identification Relationships with Stakeholders as They Change Direction

Abstract

Many new ventures have to pivot – radically transform what they are about – because their original approach has failed. However, pivoting risks disrupting relationships with key stakeholders, such as user communities, who identify with ventures. Stakeholders may respond by withdrawing support and starving ventures of the resources needed to thrive. This can pose an existential threat to ventures, yet it is unclear how they can manage this problem. To explore this important phenomenon, we conduct a qualitative process study of The Impossible Project, a photography venture which encountered significant resistance from its user community as it pivoted from an analog focus to an analog-digital p..