A network view of entrepreneurial cognition in corporate entrepreneurship contexts: A socially situated approach
TL;DR: In this article, the authors proposed a formal model in which information acquisition, distribution and interpretation are tested as a function of cognition-based trust, perceived expertise and tie strength between organizational members in two different corporate entrepreneurship (CE) types.
Abstract: Research in entrepreneurial cognition has called for a better understanding of interactions between contextual variables and cognitive processes. Based on previous work done on organizational learning and social networks, the purpose of this paper is to propose a formal model in which information acquisition, distribution and interpretation are tested as a function of cognition-based trust, perceived expertise and tie strength between organizational members in two different corporate entrepreneurship (CE) types.,The authors conduct a quantitative analysis based on network data in two companies located in India. Special procedures known as quadratic assignment procedure and multiple regression quadratic assignment procedure were used to run the correlations and multiple regressions, respectively. The authors complement this analysis with interviews and qualitative information to build a rich description in each of these cases.,The results indicate moderate support for the model. The evidence suggests that between both types of CE types, domain redefinition requires higher levels of tie strength, trust and perceived expertise. Sustained regeneration shows moderate significant results in tie strength, and cognition-based trust.,The authors combined insights on social network and organizational cognitive processes to analyze interactions between context and cognition. The authors were also able to compare two different companies. The authors found consistent results regarding tie strength, but the authors also found differences between both companies, which suggest that different CE types tend to require different dynamics between context and cognitive processes.
Citations
More filters
Posted Content•
TL;DR: In this article, the authors highlight the importance of boards of directors and absorptive capacity for gaining access to varied and current knowledge that enriches CE activities and suggest that boards and absorbptive capacity complement each other in fueling CE activities.
Abstract: As companies move from one stage of their cycle to the next, they often have to revamp their skills and build innovative capabilities to survive, achieve profitability, and stimulate growth. Corporate entrepreneurship (CE) activities give these firms a foundation for building and exploiting these capabilities. In turn, stimulating and sustaining CE requires the infusion of resources and new knowledge into the firm''s operations, using multiple external sources. In this paper, we highlight the importance of boards of directors and absorptive capacity for gaining access to varied and current knowledge that enriches CE. We suggest that boards and absorptive capacity complement each other in fueling CE activities. Further, boards can sometimes substitute for poor absorptive capacity and vice versa, influencing the intensity of CE activities. Managing these complementarities (or substitutions) is crucial for sustaining CE initiatives and creating value from them
47 citations
TL;DR: In this article, a review and analysis of corporate entrepreneurship within family businesses and small and medium enterprises (SMEs) is presented, providing a review of the current state of research and suggesting a future research agenda.
Abstract: This study aimed to review and analyze corporate entrepreneurship (CE) within family businesses and small and medium enterprises (SMEs), providing a review of the current state of research and suggesting a future research agenda. In a systematic literature review, 1040 articles indexed in Scopus were initially subjected to bibliometric and qualitative analysis. Finally, 53 papers published in various academic journals, focusing on corporate entrepreneurship, family businesses, and SMEs, were subjected to bibliometric analysis and qualitative research to identify the new potential state of the art in corporate entrepreneurship. CE in family businesses and SMEs is not a general research trend in the entrepreneurial area. This research shows that the literature on CE models and tools in family businesses and SMEs is still sparse. The review results correlate the actors of CE, behavior, and activities, including entrepreneurial orientation, entrepreneurial management, and entrepreneurial leadership and performance, as outcomes in family business and SMEs.
10 citations
TL;DR: Zhang et al. as mentioned in this paper built a theoretical model to explore the impact of entrepreneurial cognition on business model innovation choice, its intermediary mechanism and boundary conditions, and found that entrepreneurial configuration cognition, willing cognition and ability cognition indirectly affect the business model innovations of new ventures.
Abstract: How to achieve business model innovation has always been a focus topic in the field of entrepreneurship. Based on cognitive theory, this study takes new ventures as the research object to build a theoretical model to explore the impact of entrepreneurial cognition on business model innovation choice, its intermediary mechanism and boundary conditions. We test our framework with a sample of 242 questionnaires, the empirical research results show that entrepreneurial configuration cognition, willing cognition and ability cognition indirectly affect the business model innovation of new ventures. Strategic sensitivity mediated the relationship between entrepreneurial cognition and business model innovation, knowledge diversity positively moderates the relationship between strategic sensitivity and business model innovation. Machine learning algorithm research has found three prediction models for business model innovation of new ventures. By constructing a theoretical analysis framework of business model innovation from the perspective of cognition, the results deepen the relevant research on business model innovation of new ventures, clarify the source of unique characteristics and capabilities of entrepreneurs, provide a new research perspective for analyzing the impact mechanism of entrepreneurial cognition on business model innovation, enrich the research results in the field of "situation-cognition-behavior", and further clarify the important role of knowledge for the development of new ventures.
9 citations
TL;DR: In this article, the authors evaluated the effect of opportunity relatedness and uncertainty on the decision of a corporate entrepreneur to pursue a venturing opportunity, and found that slack was found to diminish the positive effect of product relatedness on the likelihood to pursue new venture opportunity.
Abstract: The purpose of this study is to evaluate the effect of opportunity relatedness and uncertainty on the decision of a corporate entrepreneur to pursue a venturing opportunity.,The study uses a conjoint experimental design to reveal the structure of respondents' decision policies. Data were gathered from 47 useable replies from corporate entrepreneurs and were analyzed with hierarchical linear modeling (HLM).,Results show that product relatedness, market relatedness, perceived certainty about expected outcomes and slack resources all have a positive effect on the willingness of a corporate entrepreneur to pursue a new venture idea. Moreover, slack was found to diminish the positive effect of product relatedness on the likelihood to pursue a venturing opportunity.,By providing a better understanding of decision-making schemas of corporate entrepreneurs, the findings of this study help improve the practice of entrepreneurship at the organizational level. In order to make more accurate opportunity assessments, corporate entrepreneurs need to be aware of their cognitive strategies and need to factor in the salient criteria affecting such assessments.,This paper adds to the limited understanding of corporate-level decision-making with regard to pursuing venturing opportunities. More specifically, the paper adds new insights regarding how relatedness and uncertainty affect new venture opportunity assessments in the presence (or lack thereof) of slack resources.
7 citations
TL;DR: In this article , the role of inter-firm supply chain social capital and intrafirm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the moderating and mediating effect of absorptive capacity.
Abstract: PurposeThis paper studies the role of inter-firm supply chain social capital and intra-firm social capital in enabling Corporate Entrepreneurship (CE), and also investigates the moderating and mediating effect of absorptive capacity.Design/methodology/approachA correlational descriptive survey research is employed for 200 firms; adopting a 13-item Likert scale obtained from Wang and Li (2016) for measuring inter-firm social capital, and an eight item Likert scale for measuring absorptive capacity. This is in addition to a nine item Likert scale obtained from De Clercq et al. (2013) to measure the intra-firm social capital, and a nine item semantic differential scale developed by Covin and Slevin (1989) for measuring the level of corporate entrepreneurship. Statistical analysis packages SPSS V.24 and AMOS V.24 were used.FindingsResults provide evidence that structural supply chain social capital has an effect on corporate entrepreneurship; mediated by potential absorptive capacity. Additionally, the effect of relational supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. Furthermore, the effect of cognitive supply chain social capital on corporate entrepreneurship is fully mediated by potential absorptive capacity. On the other hand, results show that both intra-firm social capital and realized absorptive capacity moderate the relationship between potential absorptive capacity and corporate entrepreneurship.Research limitations/implicationsThe convenience sampling technique increases the probability of selection bias. In addition, the research focused on two aspects of intra-firm social capital, namely relational and cognitive dimensions, and overlooked the structural dimension of social capital.Practical implicationsProviding managers with insights about the critical role of developing social capital among supply chain partners to facilitate the transfer and exchange of crucial knowledge necessary for product development and innovation. This is in addition to the need to capitalize on intra-collaborations and cross-functional routines to facilitate CE.Originality/valueThis study provides a required extension to the previous literature, which has not empirically modeled the role of potential absorptive capacity as means by which supply chain social capital dimensions enable CE. Also, the research identifies contingency factors that enable the effect of potential absorptive capacity on CE; namely intra-firm social capital and realized absorptive capacity.
4 citations
References
More filters
TL;DR: In this paper, it is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another, and the impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored.
Abstract: Analysis of social networks is suggested as a tool for linking micro and macro levels of sociological theory. The procedure is illustrated by elaboration of the macro implications of one aspect of small-scale interaction: the strength of dyadic ties. It is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another. The impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored. Stress is laid on the cohesive power of weak ties. Most network models deal, implicitly, with strong ties, thus confining their applicability to small, well-defined groups. Emphasis on weak ties lends itself to discussion of relations between groups and to analysis of segments of social structure not easily defined in terms of primary groups.
37,560 citations
TL;DR: In this article, the extent to which economic action is embedded in structures of social relations, in modern industrial society, is examined, and it is argued that reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong.
Abstract: How behavior and institutions are affected by social relations is one of the classic questions of social theory. This paper concerns the extent to which economic action is embedded in structures of social relations, in modern industrial society. Although the usual neoclasical accounts provide an "undersocialized" or atomized-actor explanation of such action, reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong. Under-and oversocialized accounts are paradoxically similar in their neglect of ongoing structures of social relations, and a sophisticated account of economic action must consider its embeddedness in such structures. The argument in illustrated by a critique of Oliver Williamson's "markets and hierarchies" research program.
25,601 citations
TL;DR: In this article, the authors pointed out that there is a strong functional tie between opinions and abilities in humans and that the ability evaluation of an individual can be expressed as a comparison of the performance of a particular ability with other abilities.
Abstract: Hypothesis I: There exists, in the human organism, a drive to evaluate his opinions and his abilities. While opinions and abilities may, at first glance, seem to be quite different things, there is a close functional tie between them. They act together in the manner in which they affect behavior. A person’s cognition (his opinions and beliefs) about the situation in which he exists and his appraisals of what he is capable of doing (his evaluation of his abilities) will together have bearing on his behavior. The holding of incorrect opinions and/or inaccurate appraisals of one’s abilities can be punishing or even fatal in many situations. It is necessary, before we proceed, to clarify the distinction between opinions and evaluations of abilities since at first glance it may seem that one’s evaluation of one’s own ability is an opinion about it. Abilities are of course manifested only through performance which is assumed to depend upon the particular ability. The clarity of the manifestation or performance can vary from instances where there is no clear ordering criterion of the ability to instances where the performance which reflects the ability can be clearly ordered. In the former case, the evaluation of the ability does function like other opinions which are not directly testable in “objective reality’. For example, a person’s evaluation of his ability to write poetry will depend to a large extent on the opinions which others have of his ability to write poetry. In cases where the criterion is unambiguous and can be clearly ordered, this furnishes an objective reality for the evaluation of one’s ability so that it depends less on the opinions of other persons and depends more on actual comparison of one’s performance with the performance of others. Thus, if a person evaluates his running ability, he will do so by comparing his time to run some distance with the times that other persons have taken. In the following pages, when we talk about evaluating an ability, we shall mean specifically the evaluation of that ability in situations where the performance is unambiguous and is known. Most situations in real life will, of course, present situations which are a mixture of opinion and ability evaluation. In a previous article (7) the author posited the existence of a drive to determine whether or not one’s opinions were “correct”. We are here stating that this same drive also produces behavior in people oriented toward obtaining an accurate appraisal of their abilities. The behavioral implication of the existence of such a drive is that we would expect to observe behaviour on the part of persons which enables them to ascertain whether or not their opinions are correct and also behavior which enables them accurately to evaluate their abilities. It is consequently
16,927 citations
TL;DR: In this paper, a definition of trust and a model of its antecedents and outcomes are presented, which integrate research from multiple disciplines and differentiate trust from similar constructs, and several research propositions based on the model are presented.
Abstract: Scholars in various disciplines have considered the causes, nature, and effects of trust. Prior approaches to studying trust are considered, including characteristics of the trustor, the trustee, and the role of risk. A definition of trust and a model of its antecedents and outcomes are presented, which integrate research from multiple disciplines and differentiate trust from similar constructs. Several research propositions based on the model are presented.
16,559 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations