Showing papers in "Entrepreneurship Theory and Practice in 2002"
TL;DR: The failure of past "entrepreneurial personality" based research to clearly distinguish the unique contributions to the entrepreneurial process of entrepreneurs as people, has created a vacuum with....
Abstract: The failure of past “entrepreneurial personality”—based research to clearly distinguish the unique contributions to the entrepreneurial process of entrepreneurs as people, has created a vacuum with...
1,153 citations
TL;DR: The relationship between cultural characteristics and entrepreneurship has been discussed for decades as discussed by the authors. But only in the last 10 years has this relationship been the focus of empiric studies. But this relationship has not yet been explored empirically.
Abstract: Conceptual arguments for the association between cultural characteristics and entrepreneurship have existed for decades but only in the last 10 years has this relationship been the focus of empiric...
1,061 citations
TL;DR: This article investigated the relationship between career choice and people's attitudes toward income, independence, risk, and work effort, and found that career choice affects people's attitude toward risk, risk and effort.
Abstract: This paper investigates the relationship between career choice and people's attitudes toward income, independence, risk, and work effort. Entrepreneurs are often described in terms of the strength ...
961 citations
TL;DR: In this article, the authors utilized data from 1,067 firms in six countries to clarify the psychometric properties of the entrepreneurial orientation (EO) measure, and the first research question addressed dimensional information.
Abstract: This study utilized data from 1,067 firms In six countries to clarify the psychometric properties of the entrepreneurial orientation (EO) measure. The first research question addressed dimensionali...
735 citations
TL;DR: This article used a cognitive approach to examine opportunity evaluation, as the perception of opportunity is essentially a cognitive phenomenon, and found that illusion of control and belief in the law of small numbers are related to how entrepreneurs evaluate opportunities.
Abstract: Even though the entrepreneurship literature places much emphasis on opportunity recognition, little is known about how entrepreneurs actually evaluate opportunities. This study uses a cognitive approach to examine opportunity evaluation, as the perception of opportunity is essentially a cognitive phenomenon. We present a model that consists of four independent variables (overconfidence, belief in the law of small numbers, planning fallacy, and illusion of control), a mediating variable (risk perception), two control variables (demographics and risk propensity), and the dependent variable (opportunity evaluation). We find that illusion of control and belief in the law of small numbers are related to how entrepreneurs evaluate opportunities. Our results also indicate that risk perception mediates opportunity evaluation.
650 citations
TL;DR: This paper drew from three theoretical perspectives to develop a new perspective that broadens the view of the creation of organizations from a masculine gender framework, which is often cast within a masculine perspective.
Abstract: Literature on the creation of organizations is often cast within a masculine gender framework. This paper draws from three theoretical perspectives to develop a new perspective that broadens the vi...
609 citations
TL;DR: The authors assesses two individual differences (general self-efficacy and regretful thinking) in the context of technological innovation, using a random sample of 217 patent applications from the US Patent Office.
Abstract: This research assesses two individual differences—general self–efficacy and regretful thinking—in the context of technological innovation. Results, obtained from a random sample of 217 patent inven...
547 citations
TL;DR: In this article, the authors examine three research questions concerned with entrepreneurial cognition and culture: (1) Do entrepreneurs have cognitions distinct from those of other business people? (2) To what extent do entrepreneurs have different beliefs from other people?
Abstract: In this study we examine three research questions concerned with entrepreneurial cognition and culture: (1) Do entrepreneurs have cognitions distinct from those of other business people? (2) To wha...
409 citations
TL;DR: The authors found no significant differences between male and female-controlled businesses with respect to total income to total assets (TITTA), the return on assets (ROA), or the ROE.
Abstract: Previous research has found that female-owned businesses generally underperform male-owned businesses on a variety of measures such as sales and profit. Further, this underperformance appears to persist even after controlling for demographic differences. However, previous studies have tended to limit their assessment of performance to output measures (sales or profit, for example) without relating these output measures to appropriate inputs (such as total assets or owner's equity). This would appear to be a significant oversight.After controlling for industry, age of business, and the number of days a business operated, this study finds no significant differences between male- and female-controlled businesses with respect to total income to total assets (TITTA), the return on assets (ROA), or the return on equity (ROE). Interestingly, if the control variables are removed, there is evidence to suggest that female-controlled businesses outperform male-controlled businesses.
336 citations
TL;DR: In this paper, the role that expectancy of entrepreneurial performance based on perceived ability plays in motivating persons to persevere on an entrepreneurial task is investigated, and the role of the perceived ability in motivating people to succeed in their entrepreneurial tasks is discussed.
Abstract: Research to date has not adequately explained the role that expectancy of entrepreneurial performance based on perceived ability plays in motivating persons to persevere on an entrepreneurial task....
325 citations
TL;DR: In this article, the authors explored the domain of corporate venturing using a theoretically grounded classification typology as an organizing scheme and applied it in a field study of corporations that a...
Abstract: This study explores the domain of corporate venturing using a theoretically grounded classification typology as an organizing scheme. The typology is applied in a field study of corporations that a...
TL;DR: In this paper, the authors test whether extraordinary high growth (e.g., sales growth rates of 500 percent to 31,000 percent over five years) is correlated to firm profitability, using longitudinal data from three separate cohorts of Inc. 500 firms (from 1992 to 1996, 1993 to 1997, and 1994 to 1998).
Abstract: This research note tests whether extraordinary high growth (e.g., sales growth rates of 500 percent to 31,000 percent over five years) is correlated to firm profitability. Using longitudinal data from three separate cohorts of Inc. 500 firms (from 1992 to 1996; 1993 to 1997; and 1994 to 1998), firm growth was operationalized in terms of sales and number of employees. Controlling for industry sector and ranking on the Inc. 500 lists, analyses found that extraordinary high growth—in terms of sales and number of employees—was not related to firm profitability. Firm age, however, was significantly, and inversely, related to profitability; younger firms experience slightly higher profitability rates. Implications for management and future study of extraordinary high-growth firms are discussed.
TL;DR: In this paper, Burgel et al. have suggested that small and medium-sized enterprise (SME) international entry mode selection is an important new research are studied, e.g., Burgel & Murray, 2000; Jones, 1999; and Zacharakis, 1997.
Abstract: Scholars (e.g., Burgel & Murray, 2000; Jones, 1999; Zacharakis, 1997) have suggested that small and medium–sized enterprise (SME) international entry mode selection is an important new research are...
TL;DR: In this paper, the authors adapt an intentions-based model of how to promote entrepreneurial thinking from its original domain of individual entrepreneurship and translate that model to the domain of corporate entrepreneurship.
Abstract: Research has identified crucial antecedents of corporate entrepreneurship. Research has also identified crucial antecedents of entrepreneurial thinking. This article uses lessons from social cognition to explicitly link these two issues. We adapt an intentions-based model of how to promote entrepreneurial thinking from its original domain of individual entrepreneurship and translate that model to the domain of corporate entrepreneurship. From our intentions-based model of the social cognition of entrepreneurial teams, we emphasize the importance of perceptions of desirability and feasibility and that these perceptions are from the team as well as the individual perspective. This leads to three propositions about entrepreneurial teams and an outline of the opportunities for future research.
TL;DR: This paper examined the influence that national culture has on the relationship between entrepreneurial orientation and strategic alliance formation using a sample of small- to medium-sized enterp... and found that the influence of national culture on entrepreneurial orientation has a strong influence on the formation of strategic alliances.
Abstract: This study examines the influence that national culture has on the relationship between entrepreneurial orientation and strategic alliance formation. Using a sample of small- to medium-sized enterp...
TL;DR: A central focus of economic development in China over the past 20 years has led to a steady economic transformation that has created many opportunities for entrepreneurial firms as discussed by the authors, which has also led to the creation of many new companies.
Abstract: Economic reforms in China over the past 20 years have led to a steady economic transformation that has created many opportunities for entrepreneurial firms. A central focus in this economic develop...
TL;DR: In this paper, the authors test how dimensions of national culture affect entrepreneurs' collective perceptions of the business environment and the performances of newly created firms in the United States, and find that the dimensions affect the perceptions of new companies' performance.
Abstract: This empirical study tests how dimensions of national culture affect entrepreneurs' collective perceptions of the business environment and the performances of newly created firms in the United Stat...
TL;DR: A recent special issue on the relationship between culture and entrepreneurship as mentioned in this paper focuses on the relationships between cultural variables and entrepreneurial behavior and outcomes and highlights theoretical and methodological innovations necessary to improve research in this area.
Abstract: X he influence of culture on entrepreneurs hip has been of continued scholarly interest for over three decades. Researchers have explored the effect of national, regional, and organizational cultures on wealth creation through new venture creation, innovation, and risk taking. Using data from multiple countries and applying diverse research methods, organizational scholars have explored the relationship between cultural variables and entrepreneurial behavior and outcomes. As empirical findings corroborate some patterns and significant relationships, it is essential to review past studies and identify new avenues to be explored in future research. While considerable progress has been made, we believe that substantial components and manifestations of culture and its contingent influence on entrepreneurial outcomes are yet unexplored, providing new opportunities for scholarly inquiry. This special issue focuses on the relationship between culture and entrepreneurship. It adopts a broad definition of both culture and entrepreneurship. Culture is used to refer to the enduring set of values of a nation, a region, or an organization. Entrepreneurship is defined as the act and process by which societies, regions, organizations, or individuals identify and pursue business opportunities to create wealth. The objectives of this special issue include: (a) synthesizing what we know about the relationship between culture and entrepreneurship; (b) identifying areas and research questions that deserve attention in future research; and (c) highlighting theoretical and methodological innovations necessary to improve research in this area. Culture is an important and complex construct. Likewise, entrepreneurship captures a wide spectrum of activities and is multifaceted. We believe that greater progress could be made in future research if methodological and theoretical innovations are introduced. As you read the papers included in this issue, we hope that you will agree that we have assembled a number of interesting articles. We have worked hard to ensure the diversity and breadth of the contributions represented in this special issue. First, we organized a symposium on the topic in the Academy of Management meetings where authors of some of the papers presented their original ideas. Also, we contacted other authors, from the U.S. and elsewhere, to encourage them to submit their work for consideration and possible inclusion in this special issue. Submitted manuscripts underwent a double-blind review process with two rounds of reviews. We are pleased that the review process identified studies that have a clear message and promise to shape future scholarship in this growing area of research.
TL;DR: This paper found that formality, comprehensiveness, and user orientation of CA activities are positively associated with new venture performance, but strategic uncertainty and venture origin also significantly moderate the relationship between CA and new venture's performance.
Abstract: Effective competitive analysis (CA) is important for success in today's marketplace. CA may be particularly important to new ventures that may lack experience in their industries and knowledge of their rivals. Using survey data from 228 new ventures, this study concludes that the formality, comprehensiveness, and user orientation of CA activities are positively associated with new venture performance. Strategic uncertainty and venture origin also significantly moderate the relationship between CA and new venture performance.
TL;DR: Since most researchers use the terms "culture" and "nation" interchangeably, the majority of empirical cross-cultural studies aiming to isolate the role of culture tend to be cross-national studies.
Abstract: Since most researchers use the terms “culture” and “nation” interchangeably, the majority of empirical cross-cultural studies aiming to isolate the role of culture tend to be cross-national studies...
TL;DR: This article found that entrepreneurs in smaller, younger, firms, who are considering pioneering, are more likely to exhibit illusion of control, law of small numbers, and reasoning by analogy, contributing to underestimating competition, overestimating demand, and overlooking requisite assets.
Abstract: Although biases influence the decision to take entrepreneurial actions, studies have not differentiated among entrepreneurial decision environments. These environments vary greatly and affect which biases arise and their context–specific consequences. Focusing on the role of firm size, age, and type of product introduction, we propose that entrepreneurs in smaller, younger, firms, who are considering pioneering, are more likely to exhibit illusion of control, law of small numbers, and reasoning by analogy. These biases contribute to underestimating competition, overestimating demand, and overlooking requisite assets. We hope to spur researchers to examine information processing across different types of entrepreneurial firms and actions.
TL;DR: In this article, the authors report responses from 412 children of owner-managers (61% sons and 39% daughters) with regard to their attitudes to family and business issues.
Abstract: This paper reports responses from 412 children of owner-managers (61% sons and 39% daughters) with regard to their attitudes to family and business Issues. The assumption in the study was that respondents would display a consistent set of attitudes toward the relationship between the family and the business. For example, those who believed that “management successors should be chosen from the family” would also consider “the business (to be) stronger with family members involved.” Moreover, this group would view their parents’ business as a family business and would have joined or intend to join. The reverse would also apply. In other words, those who did not believe that “management successors should be chosen from the family” would nor view their parents’ business as a family business, and would have no intention to join.In the study, two distinct clusters of attitude were identified and were labelled the Family in and Family Out groups. While those in the Family in group were more likely to consider th...
TL;DR: In this article, the management team of a small firm plays a key role in internationalization outcomes and it is hypothesized that a greater degree of behavioral integration is associated with better internationalization performance.
Abstract: The premise of this article is that the management team of a small firm plays a key role in internationalization outcomes Specifically, it is hypothesized that a greater degree of behavioral integ
TL;DR: In this paper, the relevance of power issues to success and the need for cultural sensitivity in evaluating women's opportunities to achieve positive enterprise outcomes are highlighted through the example of women's involvement in the microenterprise sector in South Asia.
Abstract: This paper demonstrates weaknesses in the ability of orthodox microenterprise development theory to represent issues relevant to women's success in the sector. Researchers tend to use gender simply as a variable to explain success without understanding gender as a social construct. Such work disregards how culturally specific power relations influence women's opportunities for success. Gender and microenterprise development theorists do better at incorporating power relations into explanations of why women start microenterprises and why their performance differs from that of men. They also take a broader view of microenterprise success by combining economic and empowerment outcomes, recognizing the diverse roles self employment plays for women. The relevance of power issues to success and the need for cultural sensitivity in evaluating women's opportunities to achieve positive enterprise outcomes are highlighted through the example of women's involvement in the microenterprise sector in South Asia.
TL;DR: In this article, the authors compared the performance of entrepreneurial development programs in rural versus non-rural settings and found that virtually no significant relationships were found between urban and rural states, defined by the proportion of the population living in nonmetropolitan counties.
Abstract: Although numerous countries have developed policies and programs to encourage entrepreneurial behavior in rural areas, there have been few attempts to compare the performance of entrepreneurial development programs in rural versus non rural settings. The existing literature led us to expect that such programs will be more efficient and effective in urban areas. However, in this study, virtually no significant relationships were found between urban and rural states—defined by the proportion of the population living in non-metropolitan counties—on the variables used to measure the performance of an entrepreneurship development program. This suggests that the need for special programs tailored to rural entrepreneurs deserves further, more critical, evaluation.
TL;DR: A good musician was a good musician, so I thought, what better thing than to start a music company? as mentioned in this paper, and I did it, and it worked out well.
Abstract: …I was a good musician, so I thought, what better thing than to start a music company?