Showing papers on "Entrepreneurship published in 1999"

Linking Entrepreneurship and Economic Growth

Abstract: In the 1980s stagflation and high unemployment caused a renewed interest in supply side economics and in factors determining economic growth. Simultaneously, the 1980s and 1990s have seen a reevaluation of the role of small firms and a renewed attention for entrepreneurship. The goal of this survey is to synthesize disparate strands of literature to link entrepreneurship to economic growth. This will be done by investigating the relationship between entrepreneurship and economic growth using elements of various fields: historical views on entrepreneurship, macro-economic growth theory, industrial economics (Porter's competitive advantage of nations), evolutionary economics, history of economic growth (rise and fall of nations) and the management literature on large corporate organizations. Understanding the role of entrepreneurship in the process of economic growth requires the decomposition of the concept of entrepreneurship. A first part of our synthesis is to contribute to the understanding of the dimensions involved, while paying attention to the level of analysis (individual, firm and aggregate level). A second part is to gain insight in the causal links between these entrepreneurial dimensions and economic growth. A third part is to make suggestions for future empirical research into the relationship between (dimensions of) entrepreneurship and economic growth.

Falling Forward: Real Options Reasoning and Entrepreneurial Failure

Abstract: Although failure in entrepreneurship is pervasive, theory often reflects an equally pervasive antifailure bias. Here, I use real options reasoning to develop a more balanced perspective on the role of entrepreneurial failure in wealth creation, which emphasizes managing uncertainty by pursuing high-variance outcomes but investing only if conditions are favorable. This can increase profit potential while containing costs. I also offer propositions that suggest how gains from entrepreneurship may be maximized and losses mitigated.

Toward a Reconciliation of the Definitional Issues in the Field of Corporate Entrepreneurship

Abstract: Although authors generally agree on the nature of entrepreneurial activities within existing firms, differences in the terminology used to describe those activities have created confusion. This article discusses existing definitions in the field of corporate entrepreneurship, reconciles these definitions, and provides criteria for classifying and understanding the activities associated with corporate venturing.

Corporate Entrepreneurship and the Pursuit of Competitive Advantage

Abstract: This paper presents a theoretical exploration of the construct of corporate entrepreneurship. Of the various dimensions of firm-level entrepreneurial orientation identified in the literature, it is...

The relationship between corporate entrepreneurship and strategic management

Abstract: This study examines the relationship between corporate entrepreneurship intensity and five specific strategic management practices in a sample of 169 U.S. manufacturing firms. The five strategic management practices include: scanning intensity, planning flexibility, planning horizon, locus of planning, and control attributes. The results of the study indicated a positive relationship between corporate entrepreneurship intensity and scanning intensity, planning flexibility, locus of planning, and strategic controls. The fine-grained nature of these results may be of practical use to firms that are trying to become more entrepreneurial and may help researchers better understand the subtleties of the interface between strategic management and corporate entrepreneurship. Copyright © 1999 John Wiley & Sons, Ltd.

The sociology of entrepreneurship

Abstract: ▪ Abstract Recent research on entrepreneurship by sociologists has focused on subsectors of the discipline rather than on entrepreneurship as a class. This review draws insights from diverse literatures to develop a sociological perspective on entrepreneurship as a whole. Until recently, the supply-side perspective, which focuses on the individual traits of entrepreneurs, has been the dominant school of research. Newer work from the demand-side perspective has focused on rates, or the context in which entrepreneurship occurs. This review emphasizes this less developed demand-side perspective—in particular, the influence of firms and markets on how, where, and why new enterprises are founded. I take stock of the differences and separation in the two perspectives and argue that sociological frameworks, an embeddedness perspective, institutional and ecological theory, and multilevel models can be used to integrate the two schools and extend their research implications.

From spare change to real change. The social sector as beta site for business innovation.

Abstract: Corporations are continually looking for new sources of innovation. Today several leading companies are beginning to find inspiration in an unexpected place: the social sector. That includes public schools, welfare-to-work programs, and the inner city. Indeed, a new paradigm for innovation is emerging: a partnership between private enterprise and public interest that produces profitable and sustainable change for both sides. In this article, the author shows how some companies are moving beyond corporate social responsibility to corporate social innovation. Traditionally, companies viewed the social sector as a dumping ground for their spare cash, obsolete equipment, and tired executives. But that mind-set hardly created lasting change. Now companies are viewing community needs as opportunities to develop ideas and demonstrate business technologies; find and serve new markets; and solve long-standing business problems. They focus on inventing sophisticated solutions through a hands-on approach. This is not charity; it is R & D, a strategic business investment. The author concedes that it isn't easy to make the new paradigm work. But she has found that successful private-public partnerships share six characteristics: a clear business agenda, strong partners committed to change, investment by both parties, rootedness in the user community, links to other organizations, and a commitment to sustain and replicate the results. Drawing on examples of successful companies such as IBM and Bell Atlantic, the author illustrates how this paradigm has produced innovations that have both business and community payoffs.

The Antecedents and Consequences of Firm-Level Entrepreneurship: The State of the Field

Abstract: Empirical research into firm-level entrepreneurship spans over a quarter of a century. This article reviews the current state of this research by identifying key trends in 45 published empirical studies; examining the key issues addressed and methods used to examine them; and outlining six key areas that need greater attention in future research.

Corporate Entrepreneurship, Knowledge, and Competence Development

Abstract: The literature highlights the importance of corporate entrepreneurship (CE) for improving a company's market and financial performance. This paper extends the literature by focusing on the knowledge-creation processes within a firm's formal and informal CE activities. This multifaceted knowledge, which encompasses organizational, technical, and social dimensions, is developed by individuals or groups and diffused throughout the organization. Whether radical or incremental, this knowledge can generate new skills, which a company can then use to reconfigure the sources of its competitive advantage. This paper also discusses the role of intrapreneurs and CE champions, particularly in the creation and use of social capital, in the development of dynamic competencies.

Small Firms, Social Capital and the Enhancement of Business Performance Through Innovation Programmes

Abstract: The paper explores the extent to which social capital is advantageous to small and medium enterprise (SME) growth Social capital is a communal property involving civic engagement, associational membership, high trust, reliability and reciprocity in social networks It is capable of being identified in social, political and economic contexts, often associated with strong communities However, not all strong communities exert the effects of social capital in respect of business activities This paper assesses government programmes to promote collaboration amongst SMEs for improving innovation capacity by increasing social capital through networking It shows that, for a sizeable proportion of programme-funded firms in Denmark, Ireland and Wales (UK) social capital building was associated with enhanced business, knowledge and innovation performance Of particular importance was the opportunity afforded to firms for linkage with external innovation networks, and the build-up of embeddedness, or the institutional basis for the enhancement of social capital As a consequence of discovering the advantages of social capital, over a third of respondents planned to continue to develop it in future, in many cases funding such activities privately rather than calling on the public purse

Markets, Firms, and the Process of Economic Development

Abstract: We develop a framework to describe value creation as a process comprising resource combinations and exchanges and use the framework to show how organizations in general, and business firms in particular, interact with markets to create economic value for themselves, for their members, and for society. The theory offers an explanation of why neither a market nor a firm, by itself, can achieve adaptive efficiency and why institutional pluralism contributes to the process of economic development.

Venture Capitalists' Assessment of New Venture Survival

Abstract: This study investigates whether VCs' assessment policies of new venture survival are consistent with those arising from the strategy literature (using two established strategy perspectives) Strategy scholars suggest the nature of the markets, competition, and decisions made by the management team affect a new venture's survival chances The findings demonstrate that VCs' assessment policies are predominantly consistent with those proposed by strategy scholars-providing insight into why VCs consider certain criteria in their assessment of new venture survival as well as why some criteria are more important in their assessment than others Through this increased understanding of venture capitalists' decision making, entrepreneurs seeking capital may be better able to address their requests for funding to those criteria venture capitalists find most critical to the survival of a new venture Venture capitalists may use these findings to better understand their own decision making process, which, in turn, provides the opportunity to increase evaluation efficiency

Linking Corporate Entrepreneurship to Strategy, Structure, and Process: Suggested Research Directions

Abstract: We endeavor to propose counterintuitive ideas or, alternatively, deny the “assumption bases” (Davis, 1971) of ETP's readers. Major sections of the paper suggest research questions concerning strategies, structures, and processes in the context of corporate entrepreneurship (CE). The issues we propose include: Are cost leadership strategies and corporate entrepreneurship inherently at odds? Are contemporary organizational forms always more compatible with CE than traditional structures? and; How can the normative guidance that permeates the popular press on entrepreneurial processes lead managers astray? Corporate entrepreneurship's unique relationship to strategy, structure, and process issues and future research questions are discussed.

Entrepreneurial Risk and Strategic Decision Making It’s a Matter of Perspective

Abstract: Risk taking has long been a central theme of the entrepreneurship literature. However, research on the risk propensity of entrepreneurs has met with virtually no empirical support even though entre...

Entrepreneurship education within the enterprise culture: Producing reflective practitioners

Abstract: The enterprise culture is founded on the premise that entrepreneurship is the engine that drives the economy One aspect of this cultural pervasion is the increase in the numbers of educational institutions teaching entrepreneurship courses Yet this hegemony of the encouragement of new business start‐up, almost for its own sake, needs to be critically reviewed One aspect is the enigmatic nature of entrepreneurship itself; what is it, and can it be taught? Another aspect is the very different expectations of those stakeholders promoting entrepreneurship education Argues that the process of entrepreneurship involves both art and science; consequently our students need more than SME management skills Graduating enterprise students must be innovative and creative to satisfy the need for entrepreneurial novelty ‐ the art Yet, paradoxically they also need to be competent and multifunctional managers ‐ the science Explores both these areas to argue that theory can bridge the art and science The final section explains briefly how the recent research and practice at Aberdeen University attempts this synthesis The intended outcome of our educational process are reflective practitioners, fit for an entrepreneurial career

Feminist Insight on Gendered Work: New Directions in Research on Women and Entrepreneurship

Abstract: This paper discusses research on female entrepreneurs in conjunction with feminist theory on gendered work. I explore the ways in which much of the research on women's experiences of entrepreneurship focuses on identifying similarities and differences between female and male business owners, and on providing explanations for the differences identified. While such an approach is useful in compensating for the exclusion of women in earlier studies of business ownership, it does not illuminate how and why entrepreneurship came to be defined and understood vis-a-vis the behaviour of only men. I argue that existing knowledge on women business owners could be enhanced through reflection on two issues — first, on the essentialism in the very construction of the category of ‘the female entrepreneur’ (which prioritizes sex over other dimensions of stratification) and second, on the ways in which the connections between gender, occupation and organizational structure differently affect female and male business owners.

Knowledge Creation and Social Networks in Corporate Entrepreneurship: The Renewal of Organizational Capability:

Abstract: This paper extends current theory by analyzing the knowledge dynamics and social structure of the internal selection-retention environment. On the knowledge side, our view is that entrepreneurial i...

A New Statecraft? Supranational Entrepreneurs and International Cooperation

Abstract: Studies of international regimes, law, and negotiation, as well as regional integration, near universally conclude that political entrepreneurship by high officials of international organizations—“supranational entrepreneurship”—decisively influences the outcomes of multilateral negotiations. Studies of the European Community (EC) have long stressed their informal agenda-setting, mediation, and mobilization. Yet the studies underlying this interdisciplinary consensus tend to be anecdotal, atheoretical, and uncontrolled. The study reported here derives and tests explicit hypotheses from general theories of political entrepreneurship and tests them across multiple cases (the five most important EC negotiations) while controlling for the actions of national governments. Two findings emerge: First, supranational entrepreneurship is generally redundant or futile; governments can almost always efficiently act as their own entrepreneurs. Second, rare cases of entrepreneurial success arise not when officials intervene to help overcome interstatecollective action problems, as current theories presume, but when they help overcome domestic(or transnational) collective action problems. This suggests fundamental refinements in the core assumptions about transaction costs underlying general theories of international regimes, law, and negotiation.

The importance of entrepreneurship for wealth concentration and mobility

Abstract: The paper conducts an empirical analysis of the importance of entrepreneurship for wealth concentration and mobility using data from the Panel Study of Income Dynamics. The data shows a marked concentration of wealth in the hands of entrepreneurs which is not merely a consequence of their higher incomes. The higher saving rates among entrepreneurs is one of the possible explanations for their higher asset holdings and this hypothesis is supported by the statistical tests conducted in the paper. The data also shows that entrepreneurs experience greater upward mobility in that they have a greater probability of moving to higher wealth classes, and this is not only a consequence of their higher incomes.

Technology, entrepreneurship and path dependence: industrial clustering in Silicon Valley and Route 128

Abstract: Silicon Valley and Route 128 have been the centers of innovation and commercialization for the electronics, computer and data communications industries in the postwar period. However, since the 1960s Silicon Valley has grown more rapidly and from approximately 1985 through 1995 Route 128 experienced retarded growth. Their success had diverged dramatically in the last decade. The most common explanations for this divergence are differing cultures, interfirm relations or/and internal organizational style organization. This paper builds upon path-dependent and dominant design explanations of technical and industrial change, arguing that the technological trajectories of the industries underlying the two regions were different and this led to their differential destinies. To explain the dynamics of the two regions, and analytical separation is made between the economy of the existing firms and a separate economy of institutions that evolved to nurture new firm formation. Copyright 1999 by Oxford University Press.

The Proactive Personality Disposition and Entrepreneurial Behavior among Small Company Presidents

Abstract: Much of the effort to understand entrepreneurship and new venture creation has focused on the characteristics of individual entrepreneurs. From the early work of McClelland (1961) which focused on the need for achievement as a personality characteristic of entrepreneurs, the field has examined a number of different traits like locus of control, propensity to take risks, personal values, and tolerance for ambiguity in a variety of different studies (see for example, Hornaday and Aboud 1971; Timmons 1978; Brockhaus 1980; Brockhaus and Horwitz 1986; Carland, Hoy, and Carland 1988; Hebert and Bass 1995). This trait-oriented line of research has come under fire as "inadequate to explain the phenomenon of entrepreneurship" (Gartner 1988, p. 12). As the preoccupation with individual traits has been de-emphasized, several other elements of entrepreneurship have been proposed to define the entrepreneur. "Behavior" has been argued as the best method to identify an entrepreneur (Gartner 1994), and it is suggested that founding a business is one behavior which certainly defines entrepreneurship (Stewart, Carland, and Carland 1996). Another type of behavior which has been linked to entrepreneurial activity is strategic planning (Olsen 1985), as entrepreneurs plan in more depth than small business owners (Carland et al. 1984). Other studies have identified a number of elements that define entrepreneurship and entrepreneurial behavior including: leadership and dimensions of teamwork, organizational creation, opportunity recognition, innovation, risk assumption, marshaling of resources, and the creation of value (Stearns and Hills 1996). While many studies have enumerated the wide variety of elements that may define an entrepreneur, it has recently been posited that perhaps we can identify several types of entrepreneurs (Stewart, Carland, and Carland 1996). This variety of perspectives is best understood through the integrative approaches that have recently evolved to explain entrepreneurial behavior. They suggest that entrepreneurship is an activity that can only be understood by simultaneously combining several of the individual elements of the phenomenon. A model developed by Gartner (1985) integrated four major dimensions of entrepreneurship: characteristics of the individual who starts the venture, the organization which is created, the environment surrounding the new venture, and the process by which the new venture is started. He emphasizes that it is the interaction of these variables that result in varying patterns of new business creation. Shaver and Scott's (1991) psychological model based on the person, the process, and the choices also attempts to explain entrepreneurial activity in terms of variable interaction. In their theoretical framework, these researchers strongly reject the solo role of "personological" approaches to understanding entrepreneurship and propose that we must also understand both how the external environment is perceived in the mind of the potential entrepreneur (the process of social cognition) and whether the person chooses to act. They emphasize that it is critical to understand how cognitive representations in the mind of the potential entrepreneur get translated into action. More recently, other models have been developed which recognize the importance of the interaction among several variables. Herron and Sapienza (1992) propose a model of new venture creation which links individual traits with the situational context experienced by the potential entrepreneur. Similarly, the role of personal characteristics interacting with perceptions of situational factors serve as the basis for a model of entrepreneurial motivation developed by Naffziger, Hornsby, and Kuratko (1994). All of these recent multi-dimensional models reflect the importance of the interface between the environment or situation and the personal characteristics of the potential entrepreneur in understanding the process of venture creation. …

The Genesis of Entrepreneurship

Abstract: The study of entrepreneurship is still in its infancy. Kuhn (1962) points out that fields of knowledge evolve through paradigm competition and the search for better answers to new sets of inquiries...

Entrepreneurship in Established Organizations: The Case of the Public Sector

Abstract: The potential role of entrepreneurship in public sector organizations is explored. Entrepreneurship is conceptualized as a manageable process with underlying dimensions of innovativeness, risk-taki...

Social entrepreneurial leadership

Abstract: Social entrepreneurial leaders are persons who create and manage innovative entrepreneurial organizations or ventures whose primary mission is the social change and development of their client group. The social enterprise’s activities and its client group’s activities can primarily be either economic or non‐economic, but the mission is social change and development. This paper examines research prospects in social entrepreneurial leadership and its relevance to mainstream entrepreneurship research and proposes useful cross‐ fertilization opportunities.

Resource Configuration, Competitive Strategies, and Corporate Entrepreneurship An Empirical Examination of Small Firms

Abstract: Relationships between firm resources and strategic orientations in small firms were explored in a study of 660 small firms. By using a resource-based view of the firm, we considered entrepreneurshi...

Human Capital-Based Strategy for Regional Economic Development

Abstract: Regional policy makers have always wrestled in vain to come up with regional economic development policies that are coherent and uniform and can be defended on economic grounds. However, most policies are either ad hoc or based on political considerations. The relevant literature dealing with regional economic development strategies is fragmented. It also does not provide any guidance to formulate an overall long-term strategy based on an integrated analytical foundation. It incorporates elements like entrepreneurship, human capital, workplace training, capital accumulation, R&D effort, innovations, technology, and technological cycles. This article proposes a human capital accumulation strategy for regional economic development that not only integrates the above diverse elements of the literature into a cohesive analytical framework but also provides the rationale for it to be part of a long-term policy for economic development on efficiency grounds.

The Blackwell handbook of entrepreneurship

Abstract: This edited volume resulted from the 1999 International State of the Art in Entrepreneurship conference held at Nova Southeastern University in Fort Lauderdale, USA. It is the fifth in a series of titles that attempt to capture the state of the art in entrepreneurship research. Most papers do not contain new studies but rather provide an authoritative review and discussion of focal topics in entrepreneurship. The book has a clearly visible focus on factors that influence firm growth as opposed to the creation of new firms. In addition, the focus is on entrepreneurship in new, small and medium sized firms thus ignoring the domain of corporate entrepreneurship. While being focused on entrepreneurship research, this book has arguably much to offer to scholars in international business. A large number of chapters systematically compare the environment for entrepreneurial ventures in different geographic regions and much can be learned about the differences and similarities of these firms in different countries. These comparisons shed light for instance on the similarities and differences in the support infrastructure, regulatory environments, but also the firm behavior in different geographic regions. That being said most of the comparisons center around the Western European, Canadian and US experiences with some coverage of European countries in transition. Entrepreneurship in other parts of the world, such as, Asia/Pacific, South America or developing countries are not covered in this book. The book’s 21 chapters are divided into four parts and conclusions. The first part of the book – Setting the stage for international research in entrepreneurship – provides a foundation for the following parts by giving an overview of the research field of entrepreneurship, its relation to other research fields and public policy, and by discussing, conceptual challenges of researching growth. Particularly, the chapter by Aldrich on national differences in entrepreneurship research and the chapter by Hitt and Ireland on the intersection of entrepreneurship and strategic management stand out. Aldrich shows that European and North-American research in entrepreneurship have in many respects developed in separation, following different research approaches and at times replicating one another. The clear message from this overview is a call for increased international dialogue. Hitt and Ireland make a similar call. They argue for cross-fertilization between entrepreneurship and strategic management. Taken together the two articles suggest that entrepreneurship research in the 21 century (and probably research in other areas as well) has to cross-traditional boundaries of topics, geographies but also in terms of research approaches. The second part – Government impacts on entrepreneurship – analyzes the role of public policy on entrepreneurial ventures in more detail. This part is largely focused on European experiences and the opportunity for a systematic comparison between European and for instance US or Canadian experiences is missed. The third part – Financing growth – zooms in on the role of external finance on growth of entrepreneurial ventures. In particular, the chapter by Manigart and Sapienza provides an excellent overview of the role of venture capital in the growth of entrepreneurial ventures. Manigart and Sapienza critique existing venture capital research for its overemphasis on value protection. The st

Conjoint analysis: A new methodological approach for researching the decision policies of venture capitalists

Abstract: Decision making is central to the ability of venture capitalists to predict those new ventures likely to succeed, yet most studies into their decision making use post-hoc methodologies that may generate biased results. People are poor at introspection and often suffer from recall and post-hoc rationalization biases among others. Therefore, researchers should consider using real-time methods that eliminate many of these biases. One such method is conjoint analysis. The purpose of this paper is to reveal the potential that conjoint analysis has to: (1) improve the validity of prior research into VCs' decision making; and (2) act as a catalyst for adopting conceptual tools from other disciplines that can be tested empirically. Both these functions have the purpose of increasing one's insight into the assessment policies of VCs.