Showing papers in "International Entrepreneurship and Management Journal in 2017"
TL;DR: In this article, the authors explore scientific literature on innovation and entrepreneurship in the academic setting, describing how the field is organized, main terms and definitions, theoretical frameworks, and empirical models, in order to direct future research.
Abstract: In the knowledge society, universities have assumed new missions and relations in order to contribute to economic and social development, while preserving their own sustainability. This article aims to explore scientific literature on innovation and entrepreneurship in the academic setting, describing how the field is organized, main terms and definitions, theoretical frameworks, and empirical models, in order to direct future research. A systematic literature review was conducted, in which articles indexed at Web of Science were initially submitted to a bibliometric analysis. Then, the content of a set of articles best fitting the objectives of the study was analyzed. Bibliometric analysis shows an increasing literature, with publications over more than 40 years. There are studies from many disciplines, with those in business and economics prevailing, mainly related to management and originating from the USA and Europe. Content analysis shows a fragmented literature, with definitions not showing a clear relationship between innovation and entrepreneurship, or their use within universities in coherence with their traditional definitions. Both theoretical frameworks and empirical models are very heterogeneous, but four groups of studies were identified based on their theoretical frameworks, and also based on their empirical models. With only a few exceptions, empirical models do not share many components and variables, and there are no clear boundaries between the different models. Despite the increasing literature, it is still fragmented and undertheorized, requiring more systematic and holistic studies, considering both the economic and the social aspects of innovation and entrepreneurship within universities.
165 citations
TL;DR: In this paper, the authors investigate the merits and characteristics of the methods detailed by Ries through a comparison with leading theories and empirical evidence found in the scientific literature, and conclude that overall the methods find considerable backing and can in parts be recognized under already established constructs.
Abstract: The means with which entrepreneurs create and capture value can be difficult to get a comprehensive picture of. Looking at the tools they use can offer insights, and in this context, the book “The Lean Startup” by Eric Ries has received a tremendous amount of attention. Supposedly, many entrepreneurs have read the book and may have followed his advice. Hence, we investigate the merits and characteristics of the methods detailed by Ries through a comparison with leading theories and empirical evidence found in the scientific literature. The results indicate that overall the methods find considerable backing and can in parts be recognized under already established constructs. Heavy use of effectuation-logic is evident throughout the book, with a clear and explicit emphasis on experimentation over long-term planning. The paper closes with a discussion of the possible broader implications of the methods and effectuation, including the potential impact on corporate strategy.
137 citations
TL;DR: In this paper, the authors confirm a theoretical model based on Expectancy Theory to explain self-employment in terms of an individual's motivation and ability to start a business and conclude that businesses are created not only by those with the ability and aptitude to do so, but also by those who have the motivation.
Abstract: One effect of the economic crisis on the business world has been the drastic reduction in staff and this in turn highlights the need for self-employment and the creation of new companies to establish a solid industrial fabric to support the creation of wealth, employment and welfare. In this context, the aim of this research is to confirm a theoretical model based on Expectancy Theory to explain self-employment in terms of an individual’s motivation and ability to start a business. Because of the lack of additional information about entrepreneurial motivation, we conducted a field investigation of Spanish self-employed workers who had established a manufacturing company during the last three years. The results confirm the supposition that expectancy, instrumentality and valence enhance entrepreneurial motivation. This study concludes that businesses are created not only by those with the ability and aptitude to do so, but also by those with the motivation.
128 citations
TL;DR: In this paper, the authors attempted to integrate three additional constructs (perceived career option, entrepreneurial knowledge and entrepreneurial personality traits) to explain the relationship between a list of antecedents and entrepreneurial intention (EI).
Abstract: The present research endeavours to comprehend the young S&T graduates’ intention toward pursuing an entrepreneurial career in a developing nation i.e., India. Using a modified version of Ajzen’s theory of planned behaviour (TPB) as our conceptual model, we attempted to integrate three additional constructs (perceived career option, entrepreneurial knowledge and entrepreneurial personality traits) to explain the relationship between a list of antecedents and entrepreneurial intention (EI). Structural equation modelling (SEM) technique has been implemented while analysing the data, collected through a self-administered questionnaire survey of five premier technology institutes in India. Findings, using a sample size of 476 young Science & Technology graduates at Indian Institute of Technology (IITs), suggest that a positive attitude toward entrepreneurship when reinforced by required entrepreneurial knowledge and the existence of viable entrepreneurial career option significantly influence EI. We found a positive but relatively weak influence of subjective norms on intention formation. Further, our findings recognise that the relationship between entrepreneurial personality traits and EI is fully mediated by perceived self-efficacy. Moderating effect suggests that student’s perceived self-efficacy boosts the entrepreneurial personality traits to EI relationship. The results also reinforced the appropriateness of incorporating auxiliary constructs in base TPB, as our conceptual model provides additional predictive power and a better understanding of how entrepreneurial intent develops.
108 citations
TL;DR: In this paper, the authors investigated factors affecting firm performance and found that knowledge spillovers and innovation activities are endogenously related to firm performance, and that the performance of firms is influenced by knowledge spillover and innovation activity, among other firm characteristics.
Abstract: This paper investigates factors affecting firm performance. Using data from Business Environment and Enterprise Performance Surveys (BEEPS 2013–2014), findings indicate that the following have a positive effect on firm performance: (i) innovative activities; (ii) knowledge spillovers; (iii) foreign ownership; and (iv) the proportion of skilled workers in the workforce. The paper therefore argues that innovation activities are endogenously related to firm performance, and that the performance of firms is influenced by knowledge spillovers and innovation activities, among other firm characteristics. The paper contributes to the literature by identifying spillovers and innovation activities as causal variables of firm performance—a novel approach to investigating knowledge spillovers and innovation activities.
106 citations
TL;DR: In this paper, the authors proposed a knowledge spillover-based strategy for strategic entrepreneurship in a multilevel context, examining the logic of the approach and summarizing the papers contributions.
Abstract: Research on knowledge spillovers (KS) has each been the subject of much scholarly attention, but has mostly been considered independently rather than in combination with each other important issue – strategic entrepreneurship (SE). The purpose of this special issue is to integrate these two approaches and to develop theory in addition to empirically investigate the phenomenon inspiring future research on the topic. This paper draws on the knowledge spillover-based strategic entrepreneurship in a multilevel context, examines the logic of the approach, and introduces the special issue by summarizing the papers contributions. Future research suggestions from the papers included in the special journal issue are also discussed and explained.
87 citations
TL;DR: In this article, the authors argue that entrepreneurial ecosystems are influenced by two dominant institutional logics: entrepreneurial-market and community, and that intra-ecosystem variation among hybrid support organizations in the dominance of entrepreneurial market and community logics, will result in a diversity of entrepreneurship within an ecosystem.
Abstract: Growing evidence suggests entrepreneurial ecosystems are a potent engine for economic and community development. Prior research has identified an ecosystem’s culture as serving a critical role in its creation and functioning. However, it is not clear how the cultural forces in entrepreneurial ecosystems develop and are shaped by individuals, organizational actors, and ecosystem-level institutions. Drawing from institutional theory and theories of multiple logic organizations (i.e., hybrids), this paper combines entrepreneurship and management research to argue that entrepreneurial ecosystems are influenced by two dominant institutional logics: entrepreneurial-market and community. By combining both logics, hybrid support organizations, such as incubators, accelerators, and small business development centers, play a unique role in entrepreneurial ecosystems by exposing participants to the two guiding logics. Furthermore, it is argued that intra-ecosystem variation among hybrid support organizations in the dominance of entrepreneurial-market and community logics, will result in a diversity of entrepreneurship within an ecosystem. This theorizing contributes to the understanding of entrepreneurial ecosystems by shedding light on the role institutional logics and hybrid support organizations play in ecosystem formation, structuring, and function and by explaining the genesis of the cultural values that guide ecosystem participants.
69 citations
TL;DR: In this article, a comparative study of Iran and Ireland was undertaken that involved three stakeholder groups of students, academics and entrepreneurs, and the results of the study indicated that productive thinking, motivation, interpersonal skills and leadership are core entrepreneurial competences that need to be developed in educational contexts.
Abstract: The purpose of this paper is to advance our understanding of core entrepreneurial competencies and their interdependencies. Developing entrepreneurial competencies is increasingly seen as important to foster entrepreneurship. Studies to date have highlighted different entrepreneurial competencies in the context of different sectors, regions and countries. However, there has been a lack of consensus in relation to the perceived relative importance of core entrepreneurial competences and their interdependencies among students, academic and entrepreneurs. Our paper focuses on two key questions: first, what are the core entrepreneurial competencies that need to be developed in educational contexts? Second, what are the interdependencies between these entrepreneurial competencies that need to be developed in educational contexts? Using a collective intelligence methodology a comparative study of Iran and Ireland was undertaken that involved three stakeholder groups of students, academics and entrepreneurs. This methodology was used to identify, rank, and structure entrepreneurial competencies considered important for university students. The results of the study indicated that productive thinking, motivation, interpersonal skills and leadership are core entrepreneurial competences that need to be developed in educational contexts. Findings also highlight critical interdependencies between entrepreneurial competencies and the relative influence of different competencies across groups and regions. We outline the implications of our findings for designing a curriculum for improving students’ entrepreneurial competencies.
67 citations
TL;DR: In this article, a longitudinal multiple-case study revealed that although firms simultaneously use both causation and effectuation in their decision making, an increase of institutional uncertainty boosts effectuation, the intensity of both types of decision-making logic varies along the studied period in accordance to changing perceptions of uncertainty.
Abstract: The institutional context of Russia and the recent regime of foreign trade sanctions makes it a natural laboratory to study change in decision making regarding the international activities of SMEs. This research explores how the increased institutional uncertainty is evaluated, enacted and responded to by SMEs that are heavily involved in relations with international suppliers. This longitudinal multiple-case study reveals that although firms simultaneously use both causation and effectuation in their decision making, an increase of institutional uncertainty boosts effectuation. The study shows that the intensity of both types of decision-making logic varies along the studied period in accordance to changing perceptions of institutional uncertainty. Also, the studied firms use effectuation logic differently enabling us to distinguish two types of effectuation with contrasting performance implications: opportunity-driven effectuation and survival effectuation.
55 citations
TL;DR: In this paper, the authors focus on what factors influence the motivation of some entrepreneurs to seek a high-growth model as these growth oriented entrepreneurs, usually associated with opportunity-motivated firm founding, are the most likely to actually create jobs in developing countries.
Abstract: Scholars and governments presumed that growing the rate of entrepreneurs would naturally result in economic and job growth, and entrepreneurship has widely been viewed as an important tool for developing economies. Yet recently scholars have questioned the empirical evidence regarding the actual contribution of entrepreneurship to economic development. Recent contributions to the field suggest that not all entrepreneurial activity has a positive effect on economic growth in developing regions. The Theory of Planned Behavior (TPB) provides a unique lense in assisting the predictive capability of entrepreneurial motivation. In this research, we focus on what factors influence the motivation of some entrepreneurs to seek a high-growth model as these growth oriented entrepreneurs, usually associated with opportunity-motivated firm founding, are the most likely to actually create jobs in developing countries. We utilize motivation for founding, five entrepreneurial competencies and three firm characteristics to predict growth expectations of entrepreneurial growth expectations. Leveraging responses to the Global Entrepreneurship Monitor survey from more than 100,000 entrepreneurs in 19 Latin American countries, we discovered the existence of a triple interaction effect amongst opportunity-based entrepreneurs with higher levels of education and an export orientation and their growth expectations. In discussing the results, we reflect on the public policy implications for promoting the desired types of entrepreneurship in developing regions.
54 citations
TL;DR: In this paper, the authors studied the influence of three important factors, viz (a) endogenous barriers, (b) exogenous environment, and (c) university environment and support on the entrepreneurial intention among management students.
Abstract: Although literature on entrepreneurship has increasingly focused on intention-based models, not much emphasis has been laid on understanding the combined effect of contextual and situational factors along with support of university environment on the formation of entrepreneurial intention among students In an effort to make up for this shortfall, by taking Theory of Planned Behavior as basic framework, the present study seeks to understand the influence of three of the most important factors, viz (a) endogenous barriers, (b) exogenous environment, and (c) university environment and support on the entrepreneurial intention among management students The study sample consisted of 1,097 students, wherein 526 students were from India, 252 from Singapore, and 319 were from Malaysia The results indicates that along with positive attitude and perceived behavioral control that directly influences entrepreneurial intention, university environment and support and exogenous environment also have an indirect but significant impact on shaping of entrepreneurial intention among students With this, it was found that exogenous environment was found to have a negative relationship with both attitude towards behavior and perceived behavioral control for all three countries
TL;DR: In this paper, the authors introduce the concept of collision density, defined as the potential frequency of interdisciplinary interactions, to explain the growth of entrepreneurial ecosystems and find support for their hypotheses in panel data from 89 urban entrepreneurial ecosystems of 92,229 investments between 2007 and 2014.
Abstract: The growth of entrepreneurial ecosystems is becoming increasingly dynamic. We introduce the concept of collision density, defined as the potential frequency of interdisciplinary interactions, to explain this phenomenon. We develop hypotheses about the impact of collision density on the growth of entrepreneurial ecosystems. This impact is hypothesized to be amplified by the presence of angel financing. We find support for our hypotheses in panel data from 89 urban entrepreneurial ecosystems of 92,229 investments between 2007 and 2014. We conclude with discussions of the the implications for research and practice.
TL;DR: In this paper, the authors analyzed the influence of perceived management skills and perceived gender discrimination in obtaining funds on women entrepreneurs' propensity to start their businesses with or without family members, and found that perceived high management capabilities increase the likelihood that a female entrepreneur will set up her business with family members.
Abstract: Our study answers the call for a better understanding of female entrepreneurs in Morocco and the role families play in launch decisions. The purpose of this paper is to analyze the influence of perceived management skills and perceived gender discrimination in obtaining funds on women entrepreneurs’ propensity to start their businesses with or without family members. Drawing upon the family embeddedness and institutional economics theoretical frameworks, perceived high management capabilities are found to increase the likelihood that a female entrepreneur will set up her business with family members. However, when the entrepreneur perceives gender discrimination in obtaining funds, this will negatively moderate this relationship and will make it more likely that a woman will start her business alone or with nonrelatives. This research contributes to the literature by advancing knowledge of the socio-cultural factors, embedded in the family-oriented contextual framework, that affect women entrepreneurs’ ways of starting their businesses. Implications affecting the success of women-owned start-up businesses and public policy implications are discussed.
TL;DR: The importance of networks for firm internationalization has been pointed out for several decades as mentioned in this paper, especially for small and new firms, networks have been found to be an important tool to gain acces...
Abstract: The importance of networks for firm internationalization has been pointed out for several decades. Especially for small and new firms, networks have been found to be an important tool to gain acces ...
TL;DR: In this paper, a large number of prior studies were extracted from five major databases from 1991 to date and synthesized in a systematic manner to draw valid conclusions, based on the findings drawn from prior literature the study also proposes a conceptual framework and prompts further empirical research.
Abstract: The concept of entrepreneurship embedded in the backdrop of business has been increasingly applied to the context of addressing social problems and sustainability challenges. Known as ‘social entrepreneurship’ the topic has garnered the heightened attention of researchers in recent years. As a nascent stream of research social entrepreneurship is still in the early stages of development. Recent evidence suggests a growing body of scholarly research in this field; however, its conceptualisation remains obscure as it is predominantly dictated by definitional arguments. Consequently, the literature is still anecdotal in trying to unveil different dimensions of social entrepreneurship and its potential benefits that might help to battle sustainability challenges. To bridge the existing gap in social entrepreneurship research this study adopts an inductive content analysis approach. Accordingly, a sizeable number of prior studies were extracted from five major databases from 1991 to date. Findings from the prior studies were synthesised in a systematic manner to draw valid conclusions. Based on the findings drawn from prior literature the study also proposes a conceptual framework and prompts further empirical research. The implications of the study are two-fold: academic and practical. The academic implication is primarily to contribute to the relatively uncultivated area of social entrepreneurship literature. The practical implications of the study are potentially instrumental for social entrepreneurs and policy-makers who are involved in social wealth creation. Moreover, the practical implication of the study is deemed to be very significant given the rising impetus of sustainability issues, where it is believed that entrepreneurs can play a vital role in this regard.
TL;DR: In this article, the authors explore the consequences of being engaged in entrepreneurial behavior on entrepreneurial intention and find that current engagement in entrepreneurship activities produces significant differences in the intention to start a new venture between older and younger participants.
Abstract: Entrepreneurial behavior research has used intention models to explain how an individual’s beliefs shape the attitudes and motivations that influence entrepreneurial intention. Nevertheless, as entrepreneurship promotion initiatives become global, it becomes relevant to explore the consequences of being engaged in entrepreneurial behavior on entrepreneurial intention. We aim to shed light on whether the direct experience reinforces an individual’s entrepreneurial intention or reduces it. Building on an extended version of the planned behavior theory, we use the behavioral reasoning theory to propose a research design to study the influence of being currently engaged in entrepreneurial behavior on entrepreneurial intention. We introduce individual’s age as an additional moderator of the effects of directly experiencing entrepreneurial behavior. We use PLS-MGA to complete a multi-group SEM analysis for different groups of individuals (from a sample of 430), comparing groups based on their entrepreneurial activity and age group. Results of this research work evidence that current engagement in entrepreneurship activities produces significant differences in the intention to start a new venture between older and younger participants. The results suggest that engagement in entrepreneurial activity modifies entrepreneurial intention and that these effects are contingent to the individual’s age. This research work contributes to the extant call to explore reverse causality between actual behavior and an individual’s intention by introducing behavioral reasoning theory. These results provide support to initiatives to adapt entrepreneurship promotion efforts to the specific characteristics of the participants.
TL;DR: In this paper, the authors apply a "theoretical toolbox" approach to examine strategic entrepreneurship through the lens of general systems, institutional, organizational ecology, strategic choice, upper echelons, real options, agency, network, and social identity theories.
Abstract: This manuscript provides a foundation for future research on strategic entrepreneurship (SE) through the application of nine prominent organizational theories Specifically, we apply a “theoretical toolbox” approach to examine SE through the lens of general systems, institutional, organizational ecology, strategic choice, upper echelons, real options, agency, network, and social identity theories We consider the implications for SE offered by these perspectives and, using insights from each organizational theory, reflect on the nature of the challenges faced by firms when attempting the simultaneous exploration and exploitation required by SE More broadly, the application of diverse theoretical perspectives is encouraged individually and in combination within future SE research
TL;DR: In this article, the authors examined the relationship between social capital and entrepreneurial engagement of individuals in 35 nations from Europe and Asia and found that all three dimensions of social capital matter in the entrepreneurship context, albeit differently.
Abstract: The paper examines the relationship between social capital and entrepreneurial engagement of individuals in 35 nations from Europe and Asia. To the best of our knowledge, this is the first empirical research that attempts to investigate the influence of three-dimensional social capital concept – trust, networks and norms – on three stages of entrepreneurial process – preference, trial and success – using such large and comprehensive cross-sectional micro data. In general, we find that all three dimensions of social capital matter in the entrepreneurship context, albeit differently. They become beneficial in different ways and at different stages of entrepreneurial involvement. For example, among trust variables, institutional trust in general, and trust in business-oriented and business-supporting actors in particular, exert significant positive effect on entrepreneurial process. Individuals with formal membership in professional associations are more likely to perceive entrepreneurial opportunities, while some close or strong-tie networks might prevent them from progressing in the entrepreneurship ladder. Finally, individual level civic norms appear to be negatively associated with early-stage entrepreneurship, while the success in becoming an entrepreneur is not found to be bound by people’s civic norms.
TL;DR: In this paper, the authors focused on the identification, analysis and explanation of the determinants/variables that influence the intrapreneurship process in the health care service industry, including the private, public and social sectors.
Abstract: Intrapreneurship affects our daily lives and is a research topic of great importance. Given the current economic climate, its relevance to firm performance has increased considerably both among academics and practitioners. Specifically, our approach has focused on the identification, analysis and explanation of the determinants/variables that influence the intrapreneurship process in the health care service industry, including the private, public and social sectors. The methodology employed consisted of collecting primary data via a questionnaire survey. The questionnaire was sent by e-mail to health care employees and middle managers from the northern and center regions of Portugal, and the study covered 202 professionals from 45 organizations. The results show that the participating health care team members present intrapreneurial behavior, and health care organizations create favorable internal conditions that support the theoretical concepts of intrapreneurship and firm entrepreneurial orientation (FEO).
TL;DR: In this article, the authors apply the theory of planned behavior (TPB) to examine entrepreneurial intentions among university students in Iran, a developing nation in which extensive governmental efforts to promote entrepreneurship have taken place over the last decade.
Abstract: In this paper, we apply the theory of planned behavior (TPB) to examine entrepreneurial intentions among university students in Iran, a developing nation in which extensive governmental efforts to promote entrepreneurship have taken place over the last decade. We incorporate culturally driven social valuation of entrepreneurship into our model thus extending the theory. Findings show the entrepreneurial intentions among agriculture students in Iran to be quite limited. Results underline the importance of social valuation in shaping entrepreneurial intentions and support the applicability of the TPB in Iran—a factor driven economy. Practical implications for public policy and education are discussed.
TL;DR: In this article, the mediating role of organizational innovation in the relationship between entrepreneurs' passion and new venture performance in China is investigated, and the authors examine the moderating role the Zhong-yong thinking of entrepreneurs in the abovementioned relationship to explore the influencing mechanism of entrepreneurs’ passion in non-Western societies.
Abstract: This study investigates the mediating role of organizational innovation in the relationship between entrepreneurs’ passion and new venture performance in China. We also examine the moderating role of the Zhong-yong thinking of entrepreneurs in the abovementioned relationship to explore the influencing mechanism of entrepreneurs’ passion in non-Western societies. Results from 154 Chinese new ventures support the positive relationship between entrepreneurs’ passion and new venture performance and the mediating role of organizational innovation. The Zhong-yong thinking of entrepreneurs can also strengthen the relationship between entrepreneurs’ passion and organizational innovation. Finally, the theoretical and practical implications of these findings are discussed.
TL;DR: In this paper, the authors analyzed the role of individual characteristics and social norms as variables that explain early-stage entrepreneurial activity before and during the European crisis using the Global Entrepreneurship Monitor Adult Population Survey data from Southern European countries (Greece, Spain, Italy, Portugal, and Portugal) in 2007, 2010, 2012 and 2013.
Abstract: The aim of this study is to analyze the role of individual characteristics and social norms as variables that explain early-stage entrepreneurial activity before and during the European crisis We used the Global Entrepreneurship Monitor Adult Population Survey data from Southern European countries (Greece, Spain, Italy and Portugal) and Northern European countries (Sweden, Norway and Finland) in 2007, 2010, 2012 and 2013 We performed logistic regression analysis to identify the role of individual characteristics (self-efficacy, perceptions of opportunities, role model and risk perceptions) and social norms (desirable career choice, status and respect and public media) on the early-stage entrepreneurial activity (TEA) Results show that individual characteristics are the most important predictor of entrepreneurial activity, and this effect stays stable throughout the time of the crisis; and social norms have an absent or low effect on entrepreneurial activity, with slight fluctuations during the crisis These results highlight the role of individual predictors on the entrepreneurial activity despite the macroeconomic environment, which empathizes the importance of education and training to promote the entrepreneurial mindset and attitude
TL;DR: In this paper, the authors highlight how companies that strive to improve technological competencies within the firm achieve higher organizational performance through different components of corporate entrepreneurship and their interrelationships, and they seek to fill this research gap by analyzing theoretically and empirically how TDCs enhance innovation, new business venturing and proactiveness and their relationships to achieve selfrenewal and thus improve firms' organizational performance.
Abstract: Firms’ technological distinctive competencies (TDCs) help CEOs to confront their reality based on technological knowledge to achieve and exploit competitive advantage by encouraging the different dimensions of corporate entrepreneurship (innovation, new business venturing, proactiveness and self-renewal). The main purpose of this paper is thus to highlight how companies that strive to improve technological competencies within the firm achieve higher organizational performance through different components of corporate entrepreneurship and their interrelationships. This study seeks to fill this research gap by analyzing theoretically and empirically how TDCs enhance innovation, new business venturing and proactiveness and their interrelationships to achieve self-renewal and thus improve firms’ organizational performance. The methodology used is LISREL analysis. We test the model with data from 201 Spanish organizations. Our research contributes theoretical and empirical arguments on the value of TDCs to the organization, arguments that are especially important because organizations sometimes fail to achieve sustainable competitive advantage due to their limited understanding of the relationships between these strategic variables.
TL;DR: In this article, the authors investigate the relationship between the strategic orientation and performance of new ventures and find that the interaction between entrepreneurial orientation and technological orientation shows a significant positive impact on entrepreneurial performance.
Abstract: The purpose of this paper is to investigate the relationship between the strategic orientation and performance of new ventures. Based on organizational ambidexterity theory, we formed five hypotheses to describe the relationships among entrepreneurial orientation, market orientation, and technological orientation, as well as their impact on new venture performance. Using a sampling of 199 new ventures, the regression results reveal that exploration-entrepreneurial orientation and exploitation–technological orientation have a significant impact on entrepreneurial performance, whereas exploitation–market orientation does not. Interaction between entrepreneurial orientation and technological orientation shows a significant positive impact on entrepreneurial performance.
TL;DR: In this paper, the authors examined potential antecedents of strategic renewal and its impact on firm performance and found that firms that are entrepreneurially oriented and willing to learn can successfully manage strategic renewal.
Abstract: Companies need to constantly renew themselves to remain competitive in rapidly changing market environments, regardless of their size or age. Even though strategic renewal is a crucial factor for sustainable success of organizations, it is only an emergent area in literature. This article examines potential antecedents of strategic renewal and impact on firm performance. Based on 104 companies’ responses to a structured questionnaire, the empirical findings demonstrate that strategic renewal positively impacts firm performance, and that entrepreneurial orientation and organizational learning are antecedents. From a practical managerial viewpoint, our results suggest that firms following a strategic renewal approach can increase the long-term success of their organizations: Firms that are entrepreneurially oriented and willing to learn can successfully manage strategic renewal.
TL;DR: In this article, the authors examined the relationship between subjectively-measured EO and actual entrepreneurial behavior as measured through objective data, using a sample of 156 community banks in the southwestern United States.
Abstract: The Entrepreneurial Orientation (EO) research stream is quite popular in investigating how companies act entrepreneurially and how EO relates to issues such as financial performance, innovation, and founder satisfaction. Part of EO’s popularity may be that it is measured using simple, widely-accepted items. Yet the idea of how to best measure EO has become a recent topic of debate. Part of that debate is that the items measure dispositions as much as behaviors and are self-reported, which means they are somewhat subjective. This paper investigates the relationship between subjectively-measured EO and actual entrepreneurial behavior as measured through objective data. To do so, the paper examines the relationship between EO dimensions and realized risk-taking behavior. Using a sample of 156 community banks headquartered in the southwestern United States, the paper uses banks’ risk-weighted asset ratio, which captures the riskiness of the bank’s portfolio, as a measure of sustained entrepreneurial behavior. The analysis finds that subjectively-measured EO risk-taking is strongly related to objectively-measured realized bank risk-taking. There was not a significant direct relationship with the other EO dimensions, though there was some evidence of a moderated relationship. The paper lends some credibility to current EO measures and suggests how additional research is needed to improve upon EO’s measurement.
TL;DR: In this paper, the authors proposed a new framework for understanding and measuring individual entrepreneur orientation (IEO) based on the integrated use of cognitive mapping and the interactive multiple criteria decision making (TODIM) method.
Abstract: Entrepreneurship, and individuals’ predisposition toward entrepreneurial activities in particular, i.e. Individual Entrepreneurial Orientation (IEO), has been gaining increasing relevance in academia and management practice alike. Understanding IEO is a critical element not only for its promotion, but for better and more informed managerial and investor decision making as well. As such, this study proposes a new framework for understanding and measuring IEO based on the integrated use of cognitive mapping and the interactive multiple criteria decision making (TODIM) method. We present the steps for building such a framework, as well as a practical application of these steps. The results are promising: the methodology applied allowed a large number of determinants of IEO and their relationships to be mapped; and, subsequently, ranked and weighted for the creation of an IEO measurement tool. The implications of the resulting framework for theory and practice, its limitations and possibilities for further research are also discussed.
TL;DR: In this paper, the authors empirically test a model that links entrepreneurial culture, innovation outcomes and business performance, and reveal the increasing importance of fostering an entrepreneurial culture within family firms in order to yield innovation processes and performance.
Abstract: The relationships between corporate entrepreneurship, innovation and performance have been previously addressed by the literature. However, they have yielded mixed and often inconclusive results. The purpose of this paper is hence to empirically test a model that links entrepreneurial culture, innovation outcomes and business performance. In this model, the family nature of firms is subsequently included as a moderator variable. The empirical investigation is based on a sample of 145 family firms from the automotive components manufacturing sector in Spain. This study uses Partial Least Squares (PLS) path-modeling to test our research model and hypotheses. Our results reveal the increasing importance of fostering an entrepreneurial culture within family firms in order to yield innovation processes and performance.
TL;DR: In this paper, the authors analyzed how different management positions influence employee entrepreneurship in small firms and found that employees on low management positions strongly benefit from knowledge spillover effects as they are educated necessary skills, knowledge and expertise and are able to build up networks conducive to entrepreneurship.
Abstract: Small firms are said to produce more entrepreneurs than larger ones (“small firm effect”). Applying existing theories, we analyze how different management positions influence employee entrepreneurship in small firms. Based on a panel study of 4832 cases, we provide evidence for the fact that small firms indeed produce more entrepreneurs. Moreover, we show that lower management positions of small firm employees are responsible for this small firm effect. We conclude that small firms seem to create an environment in which employees on low management positions strongly benefit from knowledge spillover effects as they are educated necessary skills, knowledge and expertise, and are able to build up networks conducive to entrepreneurship (“knowledge spillover effect”), while not having the multifaceted advancement opportunities as in large companies (“blocked mobility effect”).
TL;DR: In this article, the influence of agglomeration (in metropolitan areas, industrial districts and technological districts) on the locations of high-growth firms (HGFs) was investigated.
Abstract: The challenge for economies lies in boosting employment growth, not just by fostering entrepreneurship, but also by improving the growth potential of existing firms. Consequently, many studies have focused on assessing the dynamism of firms, and especially the capacity of high-growth firms (HGFs) to generate employment. This study aimed to identify HGFs in Spain during two periods, 2003–2006 and 2007–2010 and to analyse their characteristics and territorial distribution during the initial years of the economic crisis. Accordingly, a key area of inquiry of the study was the influence of agglomeration (in metropolitan areas, industrial districts and technological districts) on the locations of HGFs. To analyse the influence of location on the probability of firms being HGFs, a logit model was estimated. The main results supported the study’s hypotheses that technological districts and large urban areas are significantly associated with the probability of firms being HGFs, because firms profit from comparative locational advantages offered by these areas. The importance of HGFs requires special emphasis in relation to Spain’s context of economic crisis and high unemployment levels because of their significant contribution to employment generation.