When criticism becomes an asset – how academic entrepreneurs succeed better

Taking a research idea from the lab to the market is a difficult journey. However, a new research study shows that academic teams can be unexpectedly adept at using negative feedback to improve their business ideas – and thus increase their chances of commercial success.

The study is based on data from 316 teams led by researchers participating in the US National Science Foundation (NSF) I-Corps innovation program. For eight weeks, the teams followed the Lean Startup methodology and systematically documented the feedback they received from external stakeholders and how their business ideas changed over time.

Researchers distinguish between the core of the business idea and its periphery. The core consists of the most central and interconnected parts, such as the value proposition, customer segments and key activities. The periphery includes more stand-alone elements such as revenue streams, partners and channels.

Taking on board the criticism

The results show that negative feedback directed at the core of the business idea has clear consequences. When the core is criticized, academic teams make more changes to their business idea. Moreover, such criticism leads not only to adjustments in the core, but also to changes in peripheral parts. In contrast, negative feedback that only concerns peripheral aspects rarely seems to lead to any changes at all.

The most conclusive result concerns the link between change and success. Teams that make more changes to the core of the business idea show a higher probability of establishing a business they continue to work with after the program.

Challenging the image of reluctant entrepreneurs

However, changes in peripheral parts of the business idea are not linked to better commercial outcomes and may even have a negative correlation. The researchers argue that the study thus challenges the image of entrepreneurs as unwilling to change their basic ideas. Instead, it shows that entrepreneurs in academia are often receptive to criticism and willing to reconsider key assumptions.

The results also point to the value of training programs that focus on testing and developing the core business idea early in the process. When used properly, critical feedback can become a catalyst for learning, rather than an obstacle on the road to commercialization.

More about the article and the authors
The article From critique to catalyst: How academic entrepreneurs transform negative feedback into pivots and performance is published in the scientific journal Strategic Entrepreneurship Journal. Authors are D. Carrington Motley, Carnegie Mellon University, USA, Michael Leatherbee, Pontificia Universidad Católica de Chile, Chile, and Riitta Katila, Stanford University, USA.