Showing papers on "Entrepreneurship published in 2001"
TL;DR: In this article, the authors explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-Businesses that have recently become publicly traded corporations create value.
Abstract: We explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. We observe that in e-business new value can be created by the ways in which transactions are enabled. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, we develop a model of the sources of value creation. The model suggests that the value creation potential of e-businesses hinges on four interdependent dimensions, namely: efficiency, complementarities, lock-in, and novelty. Our findings suggest that no single entrepreneurship or strategic management theory can fully explain the value creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, we offer the business model construct as a unit of analysis for future research on value creation in e-business. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. We propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers. Copyright © 2001 John Wiley & Sons, Ltd.
5,082 citations
TL;DR: In this paper, the authors examine the relationship between resource-based theory and entrepreneurship and develop insights that advance the boundaries of resource based theory and begin to address important questions in entrepreneurship.
1,782 citations
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TL;DR: The authors define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation, and propose a framework that focuses on how entrepreneurial stories facilitate the crafting of a new venture identity that serves as a touchstone upon which legitimacy may be conferred by investors, competitors, and consumers.
Abstract: We define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation. We propose a framework that focuses on how entrepreneurial stories facilitate the crafting of a new venture identity that serves as a touchstone upon which legitimacy may be conferred by investors, competitors, and consumers, opening up access to new capital and market opportunities. Stories help create competitive advantage for entrepreneurs through focal content shaped by two key forms of entrepreneurial capital: firm-specific resource capital and industry-level institutional capital. We illustrate our ideas with anecdotal entrepreneurial stories that range from contemporary high technology accounts to the evolution of the mutual fund industry. Propositions are offered to guide future empirical research based on our framework. Theoretically, we aim to extend recent efforts to synthesize strategic and institutional perspectives by incorporating insights from contemporary approaches to culture and organizational identity.
1,672 citations
TL;DR: For instance, this article found that individuals with both an internal locus of control and innovative orientation appeared more frequently in highly individualistic and low uncertainty cultures than in collectivistic, high uncertainty avoidance cultures.
1,657 citations
TL;DR: The authors drew upon strategic management theory, organizational behavior theory, organization theory, and entrepreneurship models to form an integrated model of venture growth including 17 concepts from different domains including strategic management and organizational behavior.
Abstract: We drew upon strategic management theory, organizational behavior theory, organization theory, and entrepreneurship models to form an integrated model of venture growth including 17 concepts from f...
1,554 citations
TL;DR: The authors define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation, and propose a framework that focuses on how entrepreneurial stories facilitate the crafting of a new venture identity that serves as a touchstone upon which legitimacy may be conferred by investors, competitors, and consumers.
Abstract: We define cultural entrepreneurship as the process of storytelling that mediates between extant stocks of entrepreneurial resources and subsequent capital acquisition and wealth creation. We propose a framework that focuses on how entrepreneurial stories facilitate the crafting of a new venture identity that serves as a touchstone upon which legitimacy may be conferred by investors, competitors, and consumers, opening up access to new capital and market opportunities. Stories help create competitive advantage for entrepreneurs through focal content shaped by two key forms of entrepreneurial capital: firm-specific resource capital and industry-level institutional capital. We illustrate our ideas with anecdotal entrepreneurial stories that range from contemporary high-technology accounts to the evolution of the mutual fund industry. Propositions are offered to guide future empirical research based on our framework. Theoretically, we aim to extend recent efforts to synthesize strategic and institutional perspectives by incorporating insights from contemporary approaches to culture and organizational identity. Copyright © 2001 John Wiley & Sons, Ltd.
1,518 citations
TL;DR: In this paper, the authors explore strategic entrepreneurship in several important organizational domains to include external networks and alliances, resources and organizational learning, innovation and internationalization, and integrate, extend and test theory and research from entrepreneurship and strategic management in new ways such as creative destruction (discontinuities), resource-based view, organizational learning and transaction costs.
Abstract: Entrepreneurship involves identifying and exploiting entrepreneurial opportunities. However, to create the most value entrepreneurial firms also need to act strategically. This calls for an integration of entrepreneurial and strategic thinking. We explore this strategic entrepreneurship in several important organizational domains to include external networks and alliances, resources and organizational learning, innovation and internationalization. The research in this special issue examines both traditional (e.g., contingency theory, strategic fit) and new theory (e.g., cultural entrepreneurship, business model drivers). The research also integrates, extends, and tests theory and research from entrepreneurship and strategic management in new ways such as creative destruction (discontinuities), resource-based view, organizational learning, network theory, transaction costs and institutional theory. The research presented herein provides a basis for future research on strategic entrepreneurship for wealth creation. Copyright © 2001 John Wiley & Sons, Ltd.
1,325 citations
TL;DR: In this article, the authors developed a refined multidimensional measure of intrapreneurship to be cross-culturally generalizable because its refined dimensions' scales include only cross-culture comparable items.
1,189 citations
TL;DR: In this paper, a theory of interactive learning is proposed for building blocks in a building block block and a heuristic of discovery is used to find the best block for each block.
Abstract: 1. Purpose and Scope PART I: BUILDING-BLOCKS 2. Management and Organization 3. Innovation, Entrepreneurship, and Competence 4. Evolution 5. Institutions 6. Knowledge 7. Language PART II: CONSTRUCTION 8. A Theory of Interactive Learning 9. A Heuristic of Discovery 10. An Elaboration with Scripts 11. Integration and Disintegration PART III: APPLICATION 12. Innovation Systems 13. Organizational Learning 14. Conclusions and Further Research 15. Summary
1,140 citations
TL;DR: Personal initiative is defined as self-starting and proactive work behavior that overcomes barriers to achieve a goal as discussed by the authors, and it is argued that future workplaces will require people to show more personal initiative than before, and that current concepts of performance and organizational behavior are more reactive than desirable.
1,129 citations
TL;DR: In this paper, the authors draw on the resource-based view of the firm to suggest that four capabilities (market orientation, entrepreneurship, innovativeness, and organizational learning) each contribute to the creation of positional advantages for some firms.
Abstract: A recent series of articles in the Strategic Management Journal has discussed the potential value of an organization developing a market orientation in its quest to achieve success. We posit that market orientation can enhance success, but that its potential value should not be considered in isolation. Specifically, we draw on the resource-based view of the firm to suggest that four capabilities—market orientation, entrepreneurship, innovativeness, and organizational learning—each contribute to the creation of positional advantages for some firms. The data used are drawn from 181 large multinational corporations (MNC). The results indicate that positional advantages arising from the confluence of market orientation, entrepreneurship, innovativeness, and organizational learning have a positive effect on MNC performance (five-year average change in ROI, income, and stock price). Overall, the results support the contention that market orientation can enhance success, albeit within the context of other important phenomena. Copyright © 2001 John Wiley & Sons, Ltd.
TL;DR: In this article, the authors define entrepreneurship as the dialogic between individual and new value creation, within an ongoing process and within an environment that has specific characteristics, emphasizing the fact that we will not understand the phenomenon of entrepreneurship if we do not consider the individual (the entrepreneur), the project, the environment and also the links between them over time.
TL;DR: In this paper, the authors developed a concept of an alignment between market and entrepreneurship orientations and reported the results of a study designed to investigate its effect on a firm's product innovation, and found that these groups of firms significantly differ with respect to both subjective and objective measures of new product performance, and with product innovation strategies and activities pertaining to timing of market entry, product quality, marketing synergy, proficiency of market launch, and management support for innovation.
Abstract: This article develops a concept of an alignment between market and entrepreneurship orientations and reports the results of a study designed to investigate its effect on a firm's product innovation. A sample of 181 firms was classified into four categories labeled as market/entrepreneurship orientation (ME), entrepreneurship orientation (EO), market-oriented (MO), and conservative (CO) firms. One-way ANOVA and planned contrast tests (PCT) were used to identify whether or not specific product innovation decisions, activities, and performance vary across the groups. The results indicate that these groups of firms significantly differ with respect to both subjective and objective measures of new product performance, and with product innovation strategies and activities pertaining to timing of market entry, product quality, marketing synergy, proficiency of market launch, and management support for innovation. Further, the findings suggest that these groups of firms are not significantly different with respect to perceived environmental hostility and intensity of market competition. This finding suggests that the groups of firms are robust across environments and that the findings presented in this study are not an artifact of environmental variation. Managerial and research implications of the results are discussed.
TL;DR: In this paper, the authors make a first step identifying and articulating the differences between the entrepreneurial and the managed economies by contrasting the most fundamental elements of the newly emerging entrepreneurial economy with those of the managed economy.
Abstract: textThe purpose of this paper is to document the fundamental shift that is taking place in OECD countries. This shift is from the managed economy to the entrepreneurial economy. While politicians and policy makers have made a plea for guidance in the era of entrepreneurship, scholars have been slow to respond. This paper attempts to make a first step identifying and articulating these differences. We do this by contrasting the most fundamental elements of the newly emerging entrepreneurial economy with those of the managed economy. We identify fourteen trade-offs confronting these two polar worlds. The common thread throughout these trade-offs is the increased role of new and small enterprises in the entrepreneurial economy. A particular emphasis is placed on changes in economic policy demanded by the entrepreneurial economy vis-?-vis the managed economy.
TL;DR: The resource-based view (RBV) of the firm has become an influential theoretical perspective in recent international business research as discussed by the authors, and a broad, expanding, and cumulative knowledge base is emerging to connect IB and strategy research through the RBV.
TL;DR: In this paper, the authors identify three elements indispensable to an understanding of entrepreneurial success: process, context, and outcomes, and propose a taxonomy of environmental forces at different levels of analysis (population, community, and society).
Abstract: More than a decade ago, Low and MacMillan identified three elements indispensable to an understanding of entrepreneurial success: process, context, and outcomes. Since their critique, three important advances include (a) a shift in theoretical emphasis from the characteristics of entrepreneurs as individuals to the consequences of their actions, (b) a deeper understanding of how entrepreneurs use knowledge, networks, and resources to construct firms, and (c) a more sophisticated taxonomy of environmental forces at different levels of analysis (population, community, and society) that affect entrepreneurship. Although our knowledge of entrepreneurial activities has increased dramatically, we still have much to learn about how process and context interact to shape the outcome of entrepreneurial efforts. From an evolutionary approach, process and context (strategy and environment) interact in a recursive continuous process, driving the fate of entrepreneurial efforts. Thus, integrating context and process into research designs remains a major challenge. Such integration constitutes a necessary step to a more complete evolutionary approach and a better understanding of entrepreneurial success.
TL;DR: In this paper, the authors describe how these insights can be classified as entrepreneurial and strategic actions, and discuss how greater wealth can be created when firms integrate these actions when seeking to create wealth.
Abstract: Creating wealth is at the heart of both entrepreneurship and strategic management. For general managers and entrepreneurs, a keen interest is to learn how to apply entrepreneurial and strategic tools, techniques, and concepts in ways that help the firm create increasing amounts of wealth. Many of the activities that organizations engage in to create wealth take place within six domains: innovation, networks, internationalization, organizational learning, top management teams and governance, and growth. Importantly, the entrepreneurship and strategic management literatures have insights for entrepreneurs and general managers about the value to be gained by paying attention to these six domains. We describe how these insights can be classified as entrepreneurial and strategic actions, and discuss how greater wealth can be created when firms integrate these actions when seeking to create wealth.
TL;DR: In this paper, the authors conducted a two-year research project on the sources of success in regional clusters of entrepreneurship and innovation like Silicon Valley and found that the economic factors that give rise to the start of a cluster can be very different from those that keep it going.
Abstract: This paper discusses the results of a two-year research project on the sources of success in regional clusters of entrepreneurship and innovation like Silicon Valley. Our project has studied a number of locations, most of which have shown spectacular rates of growth of information and communcations technology-related activities during the 1990s. Our case studies comprise some emerging regions, notably in Ireland, India, Israel and Taiwan, along with more advanced areas like Northern Virginia in the US, Cambridge, UK, the Scandinavian countries and the Silicon Valley 40 years ago by way of the memory of one of its `father founders`, Gordon Moore. Through visits, interviews and other materials, we uncovered some regularities about the determinants of success of these entrepreneurial-led models of economic growth. We find that the economic factors that give rise to the start of a cluster can be very different from those that keep it going. Agglomeration economies, external effects and 'social increasing returns' of any sort arise almost naturally after a cluster has taken off. But the most difficult and risky part is to get the new clusters started. At that stage, 'old economy' factors like firm-building capabilities, managerial skills, a substantial supply of skilled labor and connection to markets were crucial for the take off of these 'new economy' clusters (including Silicon Valley 40 years ago).
TL;DR: In this article, the authors outline the development of an entrepreneurial culture in the US Capitol region and the formation of a regional industrial cluster and show that supportive social capital, venture capital and entrepreneurial support services, as well as actively engaged research universities, are conditions that reflect the successful establishment of a successful entrepreneurial culture.
Abstract: This paper outlines the development of an entrepreneurial culture in the US Capitol region and the formation of a regional industrial cluster. The conditions that the literature associates with entrepreneurship lag rather than lead the development of the cluster. Supportive social capital, venture capital and entrepreneurial support services, as well as actively engaged research universities, are conditions that reflect the successful establishment of an entrepreneurial culture, built by the actions of pioneering entrepreneurs who often adapted to constructive crisis. Copyright 2001 by Oxford University Press.
TL;DR: The JEMS special issue on immigrant entrepreneurship and mixed embeddedness as discussed by the authors introduced a three-level strategy for analysing the opportunity structure and its underlying dynamics, based on national, urban/regional and neighbourhood levels of comparison.
Abstract: This paper introduces the JEMS special issue on immigrant entrepreneurship and mixed embeddedness. The special issue has grown out of an EC-funded programme of networking research entitled 'Working on the Fringes: Immigrant Businesses, Economic Integration and Informal Practices'. Our opening paper provides a contextual overview for the case-study papers which follow. We pay particular attention to the mixed-embeddedness thesis and especially focus on the demand side of the opportunity structures framework which confronts potential immigrant entrepreneurs. We propose a three-level strategy for analysing the opportunity structure and its underlying dynamics, based on national, urban/regional and neighbourhood levels of comparison. In the nal part of the paper, we identify several possible future lines of research.
01 Jan 2001
TL;DR: Several other scholars have contributed to increasing our understanding about entre-preneurship on different levels of analysis, ranging from the individual to the economy-at-large as discussed by the authors.
Abstract: 'Introduction' In their path-breaking article, Low & MacMillan (1988) suggest that entrepreneurship be defined as the 'creation of new enterprise'. The purpose of entrepreneurship research should be to 'explain and facilitate the role of new enterprise in furthering economic progress' (p. 141). Such a delineation, they hold, would encourage researchers to consider both micro and macro perspec-tives. They argued that researchers must acknowledge that entrepreneurship studies could and should be carried out at multiple levels of analysis and that these analyses complement each other. The reasons for studying entrepreneurship on multiple levels of analysis lie in the charac-teristics of the entrepreneurial phenomenon itself. Entrepreneurship takes place and has effects on different societal levels simultaneously. Schumpeter (1934) already linked the entrepreneurial initiatives of individuals to the creation and destruction of industries as well as to economic de-velopment. Several other scholars have contributed to increasing our understanding about entre-preneurship on different levels of analysis, ranging from the individual to the economy-at-large. The following paragraph highlights some of the levels of analysis that have been identified. In doing so it illustrates the richness of approaches.
It is individuals who carry out entrepreneurial initiatives (Schumpeter, 1934). These initia-tives take place in organizational contexts (Moran & Ghoshal, 1999, Shane & Venkataraman, 2000), often resulting in the formation of new firms (Gartner, 1988; Schumpeter, 1934) or the rejuvenation and improved performance of established firms (Covin & Slevin, 1991; Lumpkin & Dess, 1996; Wiklund, 1998; Zahra, 1991). Entrepreneurial initiatives often result in innovations, which in turn may alter existing industries (Schumpeter, 1934), or create new ones (Aldrich & Martinez, this issue). The belief that such processes have profound effects on employment and economic growth on the societal level (Baumol, 1993; Birch, 1979; McGrath, 1999) is one of the major reasons for the increased interest in entrepreneurship.
The above does not only illustrate that studies on different levels of analysis can be valu-able, but clearly shows that these levels are intimately entwined. Therefore, as Low and MacMil-lan suggested (1988, p. 152), there may be reason to integrate different levels of analysis in em-pirical research......(continues)
In the remainder of the article, level of analysis refers to the hierarchy of aggregation in terms of micro and aggregate level. More fine-grained categorizations of micro (e.g. individual, team, firm) and aggregate (e.g. region, nation) levels are possible as well as alternative hierar-chies (e.g., firm, industry, economy-at-large vs. firm, region, nation). The level on which the principal research questions are posed and analyses carried out rather than the level at which data are collected determines the level of analysis. It is, for instance, common to first collect and then aggregate data from individuals in regional studies of entrepreneurship. If the analyses compare regional differences in entrepreneurial activity based on the aggregation of individuals, this would be a study at the regional level even though data were collected from individuals.
TL;DR: In this article, the distinctiveness of entrepreneurship and small business development in countries that are at different stages of transformation to market-based economies is discussed, following a discussion of the potential relevance of selected conceptualisations of entrepreneurship to transition conditions, the authors present original empirical data referring to the characteristics of entrepreneurs and their businesses.
Abstract: This paper is concerned with the distinctiveness of entrepreneurship and small business development in countries that are at different stages of transformation to market based economies. Following a discussion of the potential relevance of selected conceptualisations of entrepreneurship to transition conditions, the authors present original empirical data referring to the characteristics of entrepreneurs and their businesses from countries at different stages of market reform. Distinctive features of entrepreneurial behaviour identified reflect the unstable and hostile nature of the external environment and the scarcity of key resources, particularly capital. In an unstable and weakly structured environment, informal networks often play a key role in helping entrepreneurs to mobilise resources, win orders and cope with the constraints imposed by highly bureaucratic structures and often unfriendly officials. Moreover, the social context inherited from the former socialist period appears to affect both the attitudes and behaviour of entrepreneurs and the attitudes of society at large towards entrepreneurship.
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TL;DR: In this paper, the authors present an authoritative analysis of modern economic growth from the Industrial Revolution to the 'New Economy' of today, charting the history of five technological revolutions: waterpowered mechanization, steam-powered mechanisation, electrification, motorization, and computerization.
Abstract: How can we best understand the impact of revolutionary technologies on the business cycle, the economy, and society? Why is economics meaningless without history and without an understanding of institutional and technical change? Does the 'new economy' mean the 'end of history'?an we best understand the impact of revolutionary technologies on business organization and the business cycle? These are some of the questions addressed in this authoritative analysis of modern economic growth from the Industrial Revolution to the 'New Economy' of today. Chris Freeman has been one of the foremost researchers on innovation for a long time and his colleague Francisco Louca is an outstanding historian of economic theory and an analyst of econometric models and methods. Together they chart the history of five technological revolutions: water-powered mechanization, steam-powered mechanization, electrification, motorization, and computerization. They demonstrate the necessity to take account of politics, culture, organizational change, and entrepreneurship, as well as science and technology in the analysis of economic growth. This is an well-informed, highly topical, and persuasive study of interest across all the social sciences. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance/0199251053/toc.html
TL;DR: The study shows that the probability that an invention will be commercialized through firm formation is influenced by its importance, radicalness, and patent scope.
Abstract: Research on the creation of new high-technology companies has typically focused either on industry-level factors such as market structure and technology regime or on individual-level factors such as the work experience of entrepreneurs. This study complements these approaches by examining the effect of technological opportunities on firm formation. In particular, the study shows that the probability that an invention will be commercialized through firm formation is influenced by its importance, radicalness, and patent scope.
TL;DR: Low and MacMillan as mentioned in this paper argued that the purpose of entrepreneurship research should be to "explain and facilitate the role of new enterprise in furthering economic progress" (p. 141).
Abstract: In their path-breaking article, Low and MacMillan (1988) suggest that entrepreneurship be defined as the “creation of new enterprise.” The purpose of entrepreneurship research should be to “explain and facilitate the role of new enterprise in furthering economic progress” (p. 141). Such a delineation, they hold, would o- and macro-perspectives. They argue that researchers must acknowledge that entrepreneurship studies could and should be carried out at multiple levels of analysis and that these analyses complement each other. The reasons for studying entrepreneurship on multiple levels of analysis lie in the characteristics of the entrepreneurial phenomenon itself.
TL;DR: In this article, the importance of global and local factors in the current development of universities in Western countries is examined, and three concepts dealing with recent changes to universities, namely managerialism, academic capitalism and entrepreneurial universities, are examined for their usefulness in explaining what is happening to universities in Europe and North America.
Abstract: The paper examines the importance of global and local factors in the current development of universities in Western countries. Globalisation is a fashionable theoretical stance but care needs to be taken in applying it to education, not least because social theorists cannot agree on definitions and implications. Three concepts dealing with recent changes to universities--new managerialism, academic capitalism and entrepreneurial universities--are examined for their usefulness in explaining what is happening to universities in Europe and North America. Following a critical analysis of the theoretical and empirical basis of Slaughter & Leslie's 'Academic Capitalism' and Clark's 'Creating Entrepreneurial Universities', it is suggested that, in searching for similarities and convergence in universities in different countries, more localised factors affecting higher education institutions may be under-emphasised. Furthermore, some of the data used in the comparative case-studies of universities analysed in the...
TL;DR: In this article, the authors studied latent entrepreneurship across nations and found that large numbers of people in the industrial countries say they would prefer to be self-employed, while the probability of being employed is strongly increasing with age.
TL;DR: In this article, the authors developed an empirically tested structural equation model of financing antecedents of family businesses and found that firm size, family control, business planning, and business objectives are significantly associated with debt.
TL;DR: The authors found that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital they had access to, and that the proportion of equity and debt capital in the businesses of female entrepreneurs is the same as in those of their male counterparts.
Abstract: Female and male entrepreneurs differ in the way they finance their businesses. This difference can be attributed to the type of business and the type of management and experience of the entrepreneur (indirect effect). Female start-ups may also experience specific barriers when trying to acquire start-up capital. These may be based upon discriminatory effects (direct effect). Whether gender has an impact on size and composition of start-up capital and in what way, is the subject of the present paper. The indirect effect is represented by the way women differ from men in terms of type of business and management and experience. The direct effect cannot be attributed to these differences and is called the gender effect. We use of a panel of 2000 Dutch starting entrepreneurs, of whom approximately 500 are female to test for these direct and indirect effects. The panel refers to the year 1994. We find that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital. On average the proportion of equity and debt capital (bank loans) in the businesses of female entrepreneurs is the same as in those of their male counterparts.
01 Jan 2001
TL;DR: Tidd, Bessant and Pavitt as mentioned in this paper have provided a thorough update and included new material that reflects the latest developments in research and practice into the management of innovation, which was also widely used by managers in both service and manufacturing sectors.
Abstract: The first edition of Managing Innovation quickly became established as a bestselling text for MBA and MSc course on management of technology, innovation management, and entrepreneurship. It was also widely used by managers in both service and manufacturing sectors. In this second edition, Tidd, Bessant and Pavitt have provided a thorough update and included new material that reflects the latest developments in research and practice into the management of innovation.