Showing papers in "Journal of Enterprising Culture in 2010"

The role of creativity in entrepreneurship

Abstract: This paper evaluates the contribution of creativity to entrepreneurship theory and practice in terms of building an holistic and transdisciplinary understanding of its impact. Acknowledgement is made of the subjectivist theory of entrepreneurship which embraces randomness, uncertainty and ambiguity but these factors should then be embedded in wider business and social contexts. The analysis is synthesised into a number of themes, from consideration of its definition, its link with personality and cognitive style, creativity as a process and the use of biography in uncovering data on creative entrepreneurial behaviour. Other relevant areas of discussion include creativity's link with motivation, actualisation and innovation, as well as the interrogation of entrepreneurial artists as owner/managers. These factors are embedded in a critical evaluation of how creativity contributes to successful entrepreneurship practice. Modelling, measuring and testing entrepreneurial creativity are also considered and the paper includes detailed consideration of several models of creativity in entrepreneurship. Recommendations for future theory and practice are also made.

The interplay between orientations: entrepreneurial, technology and customer orientations in software companies

Abstract: This study examines the interplay between entrepreneurial, technology and customer orientations and company performance using data from 164 software companies. To conduct the analysis, the study applies PLS (partial least squares) modeling to understand the direct and indirect effects of entrepreneurial, customer and technology orientations on the performance of a software company. The results indicate that entrepreneurial and customer orientations directly affect performance, but, in this context, they do not support the view that a technology orientation directly enhances performance. More importantly, results suggest that an entrepreneurial orientation positively affects both customer and technology orientations. It appears that software companies need a capability to serve customers well, but also need to recognize new business opportunities from within their current customer relationships. The results suggest that to achieve high levels of performance, software companies need to balance the elements of entrepreneurial proactiveness and innovation with customer needs.

LEADERSHIP STYLES, MANAGEMENT SYSTEMS AND GROWTH: EMPIRICAL EVIDENCE FROM UK OWNER-MANAGED SMEs

Abstract: Apart from starting, growing and/or sustaining a business, owner-managers in small firms have the responsibility to balance business goals and managerial priorities, with ownership control tendencies and family values (as in the case of the prolific family enterprise) in a fashion that can comfort all business stakeholders. Understanding the inter-relationship among owner-manager's leadership style, intra-organisational management systems, and business growth can enable us to develop insights into how small business leaders masterfully construct a management approach that is conducive to sustainable performance. This empirical paper draws evidence from a large-scale postal survey (5710 respondents) of small and medium sized enterprises (SMEs) in the UK and explores the association of small business managerial style and performance. Logistic regression analysis reveals that the managerial style of entrepreneurs is influenced by a series of demographic and situational factors. Moreover, owner-managed businesses characterised by delegation of authority appear to achieve higher growth in sales and operationalise in a more professional way. The paper concludes with a discussion of the implications. The role of managerial style in interpreting business's growth performance will complement the leadership literature.

Determinants of entrepreneurial interest and risk tolerance among russian university students: empirical study

Abstract: This paper, examines the determinants of entrepreneurial interest and risk tolerance among Russian university students using the ordered logit model. The data for the paper was retrieved from a survey conducted in spring of 2008 involving 200 students from three St Petersburg-based universities. The paper produced three main findings. Firstly, the students were highly interested in pursuing entrepreneurial careers and had moderate risk tolerance. Secondly, the respondents with high entrepreneurial interest included males, students of business/economic specialties, students with family business backgrounds, students with experience of being self-employed, and those students who had favourable attitudes toward entrepreneurial behaviour, perceived social norms about entrepreneurship and higher entrepreneurial self-efficacy. Thirdly, the respondents who tended to have the lowest level of risk tolerance were females, students of technical specialties, students without entrepreneurial experience and students with lower entrepreneurial self-efficacy.

Challenges in female entrepreneurial development — a case analysis of nigerian entrepreneurs

Abstract: The paper examines the validity of stereotypical image of challenges female entrepreneurs (FE) encounter in the development of their business. The study which is conducted in the context of Nigeria, a large transition economy, throws light on a number of general and culture-dominated issues specific to traditional societies. FE, particularly those coming from self-employed parental households, are good at acquiring education and training in their line of business and work much harder at it. However, they struggle to balance family and work life, a job that is made difficult owing to lack of recognition from spouse and business groups they deal with, gender discrimination and sexual harassment. Religious values and previous work experience comes out a positive factor in dealing with challenges. Policy recommendations for the government lie in the identification of potential FE and providing them with necessary training and assistance and key inputs necessary for the growth of a business.

Buyer-supplier relationship development: an empirical study among dutch purchasing professionals

Abstract: Case study based literature on relationship development presents in-depth information on contextual factors in relationship development. However, little quantitative evidence is available about key aspects of buyer-supplier relationships in each stage of its development, such as the level of trust/commitment, buyer's and supplier's dependence. The study will try to fill this gap by identifying and quantifying these aspects from the buyer's perspective in each development stage. A comprehensive survey among 238 Dutch purchasing professionals provides evidence on how these characteristics of relationships change when relationships develop over time. The results largely confirm the hypotheses, which stem from the extant literature about organizational dependence and trust/commitment. A notable finding is that the buyer perceives to be dependent on the supplier, even in a desirable relationship. Managerial implications are that: (1) industrial marketers should be aware that professional purchasers feel dominated by them, even in relationships that are positively evaluated and therefore desirable in the view of the buyer; and (2) that purchasers should be aware that dependence implies vulnerability, even when the relationship is still developing in an otherwise desirable way.

The effect of human capital on social capital among entrepreneurs

Abstract: Using data collected from 714 entrepreneurs in a random sample of 10,000 Danes, this study provides an investigation of the effect of human capital on social capital among entrepreneurs. Previous entrepreneurship research has extensively investigated the separated effect of human capital and social capital on different entrepreneurial outputs. The study takes a step back and investigates how these two capital concepts are related — specifically how human capital influences social capital. In general, human capital and social capital were found to be co-productive, and increased human capital seems to increase the level of social capital concurrently. The dependence between human capital and social capital has tremendous implications for policy making and entrepreneurs.

Integrating theory and practice for student entrepreneurs: an applied learning model

Abstract: This paper reports on an innovative pilot project embedded in a capstone unit of Australia's leading undergraduate degree program in Entrepreneurship. The project was developed as part of an industry linkage pilot agreement between the Entrepreneurship program and one of the 'Big Four' consultancy companies, Deloitte Touche Tohmatsu. A pedagogically innovative model of applied learning is proposed that enabled Higher Education students enrolled in a Bachelor of Business (Entrepreneurship) degree to apply in a dynamic (and sometimes chaotic) environment skill and capabilities they already possessed (as opposed to work-based learning about a particular job). Results presented in this paper indicate that educating young entrepreneurs in a Higher Educational setting needs to be like the practice itself; creative, risky, exciting and above all highly satisfying.

Starting a new company — which types of personal experience help?

Abstract: This paper investigates the relationship between different types of personal experience and start-up success. We propose four extensions to earlier studies on the subject. First, we distinguish between management, technical, industry, and entrepreneurial experience of founders. Second, we consider decreasing marginal effects of different types of experience on start-up success. Third, our measures for start-up success correspond to the different stages of the entrepreneurial process. Fourth, we measure the "breadth" of experience in different fields in addition to the "depth" of experience per field. In the empirical part of the paper, we test all hypotheses using a sample of 137 German start-ups.

The role of 'professional advisors on financial matters' in entrepreneurial networks

Abstract: This study investigated the influence that ‘professional advisors on financial matters’ have in comparison with other people with whom entrepreneurs discuss their venture. Based on follow-up surveys completed in relation to the Danish participation in the Global Entrepreneurship Monitor (GEM) survey, it was found that professional advisors on financial matters only play a minor role in the two early phases of the entrepreneurial process before the venture is actually started. It was further revealed that the ties between professional advisors on financial matters and entrepreneurs often are weaker than the ties entrepreneurs have with others in their discussion network. Two practical implications for professional advisors on financial matters emerged from the study.

Defining listed family controlled corporations - an agency theory perspective

Abstract: Recent research shows that a significant proportion of listed corporations in a number of major financial markets across the world are classified as family firms. That classification is based on a number of different definitions of a family firm, using criteria such as an ownership threshold and/or the presence of a family member on the board of directors and/or in the top managerial positions. The lack of a universal definition of listed family controlled corporations may undermine the comparability or even the validity of any empirical results reported. This paper aims to resolve the diversity of definitions in use by developing an operational definition of listed family controlled corporations that is consistent with agency theory — the most commonly adopted theoretical framework in existing empirical studies. Based on agency theory, I argue that the key difference between family and non-family firms lies in the control of the decision making processes of the corporation. I further argue that a family needs to dominate the management control structure in order to control decision making processes.

Teaching scientists entrepreneurship: a dialectical approach

Abstract: Today, we know relatively well about what should be taught in the entrepreneurship program for non-business majors. However, our understanding of how should the non-business students be taught is still limited. To address this issue, we study the entrepreneurship curriculum developed for students in the Nontraditional Doctor of Pharmacy (NTPD) program at the University of Maryland Baltimore. In principle, the core of this entrepreneurship curriculum resembles a typical business school entrepreneurship course with an emphasis on developing a business or a project plan at the end of a two-semester, six-credit course sequence. This entrepreneurship curriculum for PharmD has a successful track record. From 1995 to 2003; 35% to 40% of the business plans developed by the NTPD students have been successfully funded. Although the program is structured in a similar manner as many other short-term entrepreneurship curricula in non-business programs, its implementation and dialectic approach create a dynamic learning environment that has effectively assisted non-business major graduate students to engage in business venturing activities. The infusion of dialectical inquiry at the NTPD program enables clinical pharmacy students to exploit their professional expertise while developing competence in business planning. Students are expected to plan for the implementation of some new aspect of clinical pharmacy into a new or existing practice. In this research, we reported the design of NTPD entrepreneurship curriculum and the training of business planning. Given the lack of foundation business knowledge and course time limitation in NTPD (and other hybrid programs), we posit that the effective implementation of dialectical inquiry will help students improve the quality of new venture planning.

A Heuristic-Inducing Method for Generating Initial Ideas for Opportunities: an Application to the Australasian Dating Market

Abstract: This paper presents a heuristics-inducing method for generating initial ideas for opportunities. It consists of the presentation of snippets of theory and research, selected for their inspirational value and relevance to a particular industry, to business owners in that industry to brainstorm about applications in products and services. In this approach, the researcher bridges the worlds of academia and business, and actively contributes to the opportunity recognition process by selecting, presenting and discussing information. The method is applied to the dating market: searching, matching and/or interacting services, whether internet based or real-life. Participants were ten Australians or New Zealanders dating service owners. The presented information concerns social psychological research outcomes on factors that contribute to attraction and forming bonds, and specific issues relevant to the dating market, e.g., gender imbalances in enrollment. A range of initial ideas for future possibilities in the dating market are presented.

Understanding the antecedents to an entrepreneurial firm's intent to engage in international strategic alliances

Abstract: Most research has looked at international strategic alliances from the view of large and well-established firms but comparatively little is known about alliances in entrepreneurial settings. This conceptual paper looks into the antecedents of the entrepreneurial firm's intentions of entering into international strategic alliances. Focus is placed on the entrepreneurial firm's dual liabilities of "newness" and "smallness". Secondly, the impact of entrepreneurial orientation as a main resource and capability of small firms has been examined and employed in the study of cooperative relationships between firms. Thirdly, this paper takes the view that entrepreneurial intention is crucial for those who care to understand about the formation of cooperative relationships. This paper adopts Shapero's (1982) model of the "Entrepreneurial Event", implicitly an intention model and specific to the domain of entrepreneurship, to develop a framework for understanding the antecedents leading to the intentions of entrepreneurial firms entering into international cooperative relationships.

RETURNING TO ROOTS FOR REDUCING INVENTORY COSTS IN SMEs: A CASE OF INDIAN LOCK INDUSTRY

Abstract: Achieving uninterrupted production, increasing profitability and productivity, protection against stock-outs, and improving customer service levels have been the major benefits of holding inventory. Maintaining inventory levels beyond a certain limit is, however, an undesirable phenomenon. While practitioners and researchers are aiming at minimum possible cost of inventory, many small business owners in India still fail to appreciate fully the true costs of carrying inventory. In this context the present study examines a case of the lock manufacturing industry in the Aligarh district of the state Uttar Pradesh. The investigations reveal that lock manufacturing units, by-and-large, are either unaware of even the fundamental techniques of inventory management or do not practice them for one reason or the other. The case attempts to illustrate how SMEs can reduce their inventory costs, and hence improve profitability, through the application of basic models of inventory management.

Entrepreneurial and regional growth activity in finland

Abstract: Audretsch & Feldman (2004) argue that an agglomeration is a collection of localized firms with a common focus. As firms thrive, resources are attracted to the region. They state that, if entrepreneurship serves as a mechanism for knowledge spillovers, measures of entrepreneurial activity should be linked positively to regional growth performance. In Schumpeterian economics the engine of economic development is entrepreneurial innovation. Creative destruction makes way for new innovations and growth. In this study, we simultaneously examine the regional entrepreneurial activity and regional growth activity in Finland. A further aim of the study was to find out if entrepreneurial activity and growth activity also play a deagglomerating role. We find, first, that the indicators used are very well suited to measure the dynamic environment, especially in manufacturing, since the regions with the most dynamic environment were areas with high small-business activity. Furthermore, the study indicates that growth ...

STAKEHOLDER TREATMENT AMONGST IPOs AND THE ACQUISITION OF RESOURCES FOR ENTREPRENEURIAL VENTURES

Abstract: Entrepreneurs bring together the various stakeholders necessary to create new products and services; however, stakeholders face a high level of uncertainty when determining whether to invest their resources in the venture. This paper draws from signaling theory and stakeholder theory to explain how firms that have reputations for outstanding treatment of stakeholders send a signal to potential resource investors that reduces the uncertainty they perceive to be associated with the venture. Perceived uncertainty is reduced because of an enhanced ability to acquire necessary resources, a smaller probability that unexpected events will occur, an increased ability to plan for changes that do occur in the external environment, and the possibility that the strong stakeholder network itself may be a source of sustainable competitive advantage for the firm. While these ideas are applicable to entrepreneurial ventures at many stages, the context examined herein is firms that are preparing for an initial public offering because they have had sufficient time to establish reputations.

Japanese corporate strategies on location choices of r&d activities in china: identifying the role of knowledge spillovers

Abstract: The objective of this research is to analyze the geographical distribution of the research and development (R&D) collaboration of Japanese multinational enterprises (MNEs) in China. We analyze location strategies of overseas R&D activities on a regional instead of a national level. We first discuss the linkage of foreign direct investment (FDI) and ensue knowledge spillovers from MNEs to a host country, and further analyze how the knowledge spillovers influence MNEs in making their decisions on location choices in China. Using conditional logit estimation from U.S. patent data, we find that Japanese MNEs are in proximity to the R&D-intensive locations and to the clustering of Japanese MNEs, but have a tendency to keep a distance from R&D-competitive locations that would be endangered by outward knowledge spillovers. In addition, small and medium MNEs are influenced more by location factors, such as R&D and FDI, than large MNEs. So are capital-intensive MNEs than non-capital-intensive MNEs.

Asian american-founded ventures in silicon valley: challenges, strategic partnership, and performance

Abstract: This paper examines the performance of Silicon Valley ventures with Asian-American founding teams. We review some challenges faced by these ventures, compare their performance with that of other ventures, and analyze the impact of strategic partnerships on their performance. Our results indicate that firms founded by Asian American entrepreneurs tend to require more time to reach initial public offering (IPO) status than do other ventures in Silicon Valley. Our results further show that, despite needing this extra time, Asian American-founded ventures significantly outperformed their counterparts in 12-month post-IPO share price gain. This superior short-term post-IPO performance suggests that Asian American firms, particularly those that lacked relationships with U.S.-based strategic investors, might have been undervalued prior to and at IPO.