More Than One Way to Pivot: The Case for Opportunity and Survival Pivots

Research describes pivots as quick and comprehensive change in venture direction triggered by (external) opportunity-based information suggesting a better opportunity. We discovered two distinct pivot types in a qualitative study (Study 1), neither of which fully aligns with prior research. "Opportunity pivots" are triggered by opportunity-based information but are slower and less comprehensive than previously described; "survival pivots" are rapid and comprehensive but triggered by (internal) threat-based information. Lacking theory to explain our discoveries, we tested competing theories in an experimental vignette study involving 1,945 entrepreneurs (Study 2). We find that entrepreneurial learning explains opportunity but not survival pivots, and prospect theory explains survival but not opportunity pivots. The discovery of distinct pivot types provides a foundation for exploring additional pivoting variation; finding support for a different theoretical explanation for each pivot type suggests important limits to core theories used to explain pivoting.