Showing papers on "Entrepreneurship published in 2009"
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TL;DR: The Theory of the Growth of the Firm has illuminated and inspired thinking in strategy, entrepreneurship, knowledge creation, and innovation as discussed by the authors, and only a handful in business and management whose insights and ideas last for 50 years and more.
Abstract: There are not many books that are genuine classics, and only a handful in business and management whose insights and ideas last for 50 years and more. This book is one of the very few 'must reads' for anybody seriously interested in the role of management within the firm. Originally published in 1959, The Theory of the Growth of the Firm has illuminated and inspired thinking in strategy, entrepreneurship, knowledge creation, and innovation. Edith Penrose's tightly-argued classic laid the foundations for the resource based view of the firm, now the dominant framework in business strategy. She analyses managerial activities and decisions, organizational routines, and also the factors that inevitably limit a firm's growth prospects. For this new anniversary edition, Christos Pitelis has written a new introduction which both tells the story of Penrose's extraordinary life, and provides a balanced assessment of her key ideas and their continuing relevance and freshness.
7,683 citations
TL;DR: In this paper, a cumulative body of knowledge about entrepreneurship orientation has been collected and used in the context of entrepreneurship research, with the focus on entrepreneurship orientation (EO) being one of the few areas in entrepreneurship research where a cumulative knowledge base is available.
Abstract: Entrepreneurial orientation (EO) has received substantial conceptual and empirical attention, representing one of the few areas in entrepreneurship research where a cumulative body of knowledge i ...
2,764 citations
TL;DR: This article developed a knowledge spillover theory of entrepreneurship, which argued that knowledge created endogenously results in knowledge spillovers, which allow entrepreneurs to identify and exploit opportunities, and then use this knowledge to increase economic growth.
Abstract: Contemporary theories of entrepreneurship generally focus on the recognition of opportunities and the decision to exploit them. Although the entrepreneurship literature treats opportunities as exogenous, the prevailing theory of economic growth suggests they are endogenous. This paper advances the microeconomic foundations of endogenous growth theory by developing a knowledge spillover theory of entrepreneurship. Knowledge created endogenously results in knowledge spillovers, which allow entrepreneurs to identify and exploit opportunities.
1,407 citations
TL;DR: The second edition of The Economics of Entrepreneurship as discussed by the authors is an essential resource for scholars following the current state of this fast-moving field, covering a broad range of topics in unparalleled depth.
Abstract: This second edition of The Economics of Entrepreneurship is an essential resource for scholars following the current state of this fast-moving field, covering a broad range of topics in unparalleled depth. Designed to be used both as a textbook for specialist degree courses on the economics of entrepreneurship, and as a reference text for academic research in the field, the book draws on theoretical insights and recent empirical findings to show how economics can contribute to our understanding of entrepreneurship. New topics, such as crowdfunding, entrepreneurship education and microenterprise field experiments, appear for the first time, while existing treatments of topics like regional entrepreneurship, innovation and public policy are considerably deepened. Parker also discusses new empirical methods, including quasi-experimental methods and field experiments. Every section - indeed every page - of the new edition has been updated, resulting in a rigorous scientific account of entrepreneurship today.
1,295 citations
TL;DR: In this paper, the authors argue that the typical start-up is not innovative, creates few jobs, and generates little wealth, and that by eliminating incentives to create these low probability companies, policy makers can improve the average performance of new businesses.
Abstract: Policy makers often think that creating more start-up companies will transform depressed economic regions, generate innovation, and create jobs. This belief is flawed because the typical start-up is not innovative, creates few jobs, and generates little wealth. Getting economic growth and jobs creation from entrepreneurs is not a numbers game. It is about encouraging the formation of high quality, high growth companies. Policy makers should stop subsidizing the formation of the typical start-up and focus on the subset of businesses with growth potential. While government officials will not be able to “pick winners,” they can identify start-ups with a low probability of generating jobs and enhancing economic growth. By eliminating incentives to create these low probability companies, policy makers can improve the average performance of new businesses.
1,233 citations
TL;DR: In this paper, the authors present a comprehensive review of women directors on corporate boards, incorporating and integrating research from over 400 publications in psychology, sociology, leadership, gender, finance, management, law, corporate governance and entrepreneurship domains.
Abstract: Manuscript Type: Conceptual (Review)
Research Question/Issue: This review examines how gender diversity on corporate boards influences corporate governance outcomes that in turn impact performance. We describe extant research on theoretical perspectives, characteristics and impact of women directors on corporate boards (WOCB) at micro, meso and macro levels: individual, board, firm and industry/environment.
Research Finding/Insights: To the best of our knowledge, this is the first comprehensive review of WOCBs, incorporating and integrating research from over 400 publications in psychology, sociology, leadership, gender, finance, management, law, corporate governance and entrepreneurship domains. In addition, we organized our findings to provide a new lens enabling the field to be readily examined by level and by theoretical perspective. The review indicates that WOCB research is about improving corporate governance through better use of the whole talent pool’s capital, as well as about building more inclusive and fairer business institutions that better reflect their present generation stakeholders.
Theoretical/Academic Implications: With only one in ten papers addressing theoretical development, the predominant perspectives are human and social capital theories and gender schema at individual level; social identity, token and social networks theories at board level; resource dependency, institution and agency theories at firm level, and institutional, critical and political theories at environmental level. We provide a short synopsis of findings at each level, and conclude with an outline of fruitful directions for future research.
Practitioner/Policy Implications: There are increasing pressures for WOCBs, from diverse stakeholders such as the European Commission, national governments, politicians, employer lobby groups, shareholders, Fortune and FTSE rankings, best places for women to work lists as well as expectations from highly qualified women who are likely to leave if they see no women board members. Rationales generally draw on the business case, however the moral justice case is also used by those who seek a fairer gender balance in all aspects of society. From our review, the ‘Impact’ section charts the effect of WOCB at all four levels of analysis.
1,155 citations
TL;DR: In this paper, a review of this literature reveals that conceptual articles outnumber empirical studies, and empirical efforts often lack formal hypotheses and rigorous methods, and that social entrepreneurship research remains in an embryonic state.
Abstract: Social entrepreneurship has been a topic of academic inquiry for nearly 20 years, yet relatively little scholarly output has appeared in mainstream management and entrepreneurship journals Our review of this literature reveals that conceptual articles outnumber empirical studies, and empirical efforts often lack formal hypotheses and rigorous methods These findings suggest that social entrepreneurship research remains in an embryonic state Future research would benefit from the incorporation of multivariate methods to complement the case study techniques that have dominated previous efforts Our review also suggests that social entrepreneurship is informed by common areas of interest to management scholars like entrepreneurship, public/nonprofit management, and social issues, all of which represent fruitful venues for future research efforts Therefore, we recommend that scholars embrace key themes in strategic entrepreneurship and frame their research using established theories, such as contingency theory, creation theory, discovery theory, innovation diffusion theory, resource dependence theory, and other theoretical bases relevant to strategic entrepreneurship research Copyright © 2009 Strategic Management Society
1,123 citations
TL;DR: The authors examines in microcosm such institutional voids and illustrates the activities of an entrepreneurial actor in rural Bangladesh aimed at addressing them, and depicts the crafting of new institutional arrangements as an ongoing process of bricolage and unveil its political nature as well as its potentially negative consequences.
1,033 citations
TL;DR: In this article, the authors examine how entrepreneurs shape organizational boundaries and construct markets through an inductive, longitudinal study of five ventures and propose that power is the underlying boundary logic and indicate the "soft-power" strategies by which entrepreneurs compete in highly ambiguous markets.
Abstract: We examine how entrepreneurs shape organizational boundaries and construct markets through an inductive, longitudinal study of five ventures. Our central contribution is a framework of how successful entrepreneurs attempt to dominate nascent markets by co-constructing organizational boundaries and market niches using three processes: claiming, demarcating, and controlling a market. We propose that power is the underlying boundary logic and indicate the “soft-power” strategies by which entrepreneurs compete in highly ambiguous markets. Overall, we develop a holistic view of organizational boundaries and offer insights into institutional entrepreneurship and resource dependence theories. Our most important contribution is reinvigorating the study of interorganizational power.
953 citations
TL;DR: In this paper, a multi-dimensional ESE instrument is developed and tested on a diverse sample that includes nascent entrepreneurs, and its implications for entrepreneurship theory and entrepreneurship education are discussed, as well as the importance of ESE in an intentionality model.
Abstract: A growing number of studies on entrepreneurial motivation, intentions, and behavior include entrepreneurial self-efficacy (ESE) as an explanatory variable. While there is broad consensus among researchers on the importance of including ESE in an intentionality model, there remain inconsistencies in the definition, dimensionality, and measurement of ESE. This study takes an important step toward refinement and standardization of ESE measurement. Within a new venture creation process framework, a multi-dimensional ESE instrument is developed and tested on a diverse sample that includes nascent entrepreneurs. Implications for entrepreneurship theory and entrepreneurship education are discussed.
952 citations
TL;DR: In this paper, the authors conceptualize CE strategy as a useful focal point for corporate entrepreneurship (CE) strategy, and conceptualize it as a complementary knowledge base to the general knowledge of entrepreneurship.
Abstract: Our knowledge of corporate entrepreneurship (CE) continues to expand. However, this knowledge remains quite fragmented and non–cumulative. Herein, we conceptualize CE strategy as a useful focal poi...
TL;DR: The concept of policy entrepreneurship has been used extensively in the literature to explain the dynamics of public policy change as discussed by the authors, and the role played by specific advocates of policy change has been frequently noted.
Abstract: This article reviews the concept of policy entrepreneurship and its use in explaining policy change. Although the activities of policy entrepreneurs have received close attention in several studies, the concept of policy entrepreneurship is yet to be broadly integrated within analyses of policy change. To facilitate more integration of the concept, we here show how policy entrepreneurship can be understood within more encompassing theorizations of policy change: incrementalism, policy streams, institutionalism, punctuated equilibrium, and advocacy coalitions. Recent applications of policy entrepreneurship as a key explanation of policy change are presented as models for future work. Room exists for further conceptual development and empirical testing concerning policy entrepreneurship. Such work could be undertaken in studies of contemporary and historical policy change. Scholars of public policy often seek to explain how particular policy ideas catch on. The dynamics of policy change have been theorized and explored empirically from a range of perspectives during the past few decades. In these investigations, the role played by specific advocates of policy change has been frequently noted. Highly motivated individuals or small teams can do much to draw attention to policy problems, present innovative policy solutions, build coalitions of supporters, and secure legislative action. Of course, no political activity or policy initiative can go anywhere without many actors getting involved. The question then arises: By what means can advocates of policy change come to have broad influence? Several policy scholars have argued that such advocates achieve success because they exhibit a high degree of entrepreneurial flare. According to this line of argument, by closely observing the practices of advocates of policy change, we can come to appreciate how they perform a function in the policy process equivalent to entrepreneurs in the business context. Following an emerging convention, we here define such advocates of policy change as policy entrepreneurs. This article foregrounds policy entrepreneurship as an explanation of policy change. While the activities of policy entrepreneurs have received close attention in several studies (Crowley, 2003; Kingdon, 1984/1995; Mintrom, 2000; Roberts & King, 1991; Weissert, 1991), the concept of policy entrepreneurship is yet to be broadly integrated within studies of policy change. We contend that new applica
TL;DR: In this article, a multilevel perspective integrating entrepreneurship theory with institutional (macro-level) and collective identity theories was employed to examine the role institutions and collective identities play in the recognition and exploitation of opportunities in the informal economy.
Abstract: The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multilevel perspective integrating entrepreneurship theory (microlevel) with institutional (macrolevel) and collective identity (mesolevel) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence the transition to the formal economy.
TL;DR: In this article, a new gender-aware framework is proposed to provide a springboard for furthering a holistic understanding of women's entrepreneurship, which is based on an existing framework articulating the 3Ms (markets, money and management) required for entrepreneurs to launch and grow ventures.
Abstract: Purpose – The purpose of this paper is to offer a new gender‐aware framework to provide a springboard for furthering a holistic understanding of women's entrepreneurship.Design/methodology/approach – The paper builds on an existing framework articulating the “3Ms” (markets, money and management) required for entrepreneurs to launch and grow ventures. Drawing on institutional theory, it is argued that this “3M” framework needs further development and “motherhood” and “meso/macro environment” are added to extend and mediate the “3Ms” and construct a “5M” framework to enable the study of women's entrepreneurship in its own right.Findings – It was found that “Motherhood” is a metaphor representing the household and family context of female entrepreneurs, which might have a larger impact on women than men. The meso/macro environment captures considerations beyond the market, such as expectations of society and cultural norms (macro), and intermediate structures and institutions (meso).Practical implications – ...
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TL;DR: In this paper, a multi-level perspective integrating entrepreneurship theory with institutional (macro-level) and collective identity theories was employed to examine the role institutions and collective identities play in the recognition and exploitation of opportunities in the informal economy and explore factors that influence transition to the formal economy.
Abstract: The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multi-level perspective integrating entrepreneurship theory (micro-level) with institutional (macro-level) and collective identity (meso-level) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence transition to the formal economy.
TL;DR: This paper found that the underlying dimensions of the business model are resource structure, transactive structure and value structure, and discussed the nature and implications of dimensional dominance for firm characteristics and behavior.
Abstract: While the term “business model” has gained widespread use in the practice community, the academic literature on this topic is fragmented and confounded by inconsistent definitions and construct boundaries. In this study, we review prior research and reframe the business model with an entrepreneurial lens. We report on a discourse analysis of 151 surveys of practicing managers to better understand their conceptualization of a business model. We find that the underlying dimensions of the business model are resource structure, transactive structure, and value structure, and discuss the nature and implications of dimensional dominance for firm characteristics and behavior. These findings provide new directions for theory development and empirical studies in entrepreneurship by linking the business model to entrepreneurial cognition, opportunity co-creation and organizational outcomes.
TL;DR: The authors demonstrate a negative relationship between entrepreneurs' optimism and the performance (revenue and employment growth) of their new ventures and illustrate the benefits of applying a social cognitive perspective toward efforts to understand key aspects of the new venture creation and development process.
Abstract: Previous research indicates that entrepreneurs are generally high in dispositional optimism—the tendency to expect positive outcomes even when such expectations are not rationally justified. Findings of the current study demonstrate a negative relationship between entrepreneurs' optimism and the performance (revenue and employment growth) of their new ventures. Past experience creating ventures and industry dynamism moderated these effects, strengthening the negative relationship between entrepreneurs' optimism and venture performance. These findings illustrate the benefits of applying a social cognitive perspective toward efforts to understand key aspects of the new venture creation and development process.
TL;DR: This paper investigated the extent to which venture capitalists' perceptions of "entrepreneurial passion" influence the VCs' investment decisions, and defined entrepreneurial passion as an entrepreneurial pursuit.
Abstract: We investigated the extent to which venture capitalists' (VCs') perceptions of “entrepreneurial passion” influence the VCs' investment decisions. We defined entrepreneurial passion as an entreprene...
TL;DR: In this paper, the authors address attributes of highperforming alliance portfolios but not how executives originate such portfolios, and propose a method to find the optimal alliance portfolio for a given firm.
Abstract: Alliance portfolios are ubiquitous and influential for firm performance. Extant research addresses attributes of high-performing alliance portfolios but not how executives originate such portfolios...
TL;DR: In this paper, a model was proposed and empirically tested on a sample of 300 university students in Turkey, where entrepreneurial intention was taken as a function of educational, relational, and structural supports, and the results showed that educational and structural support factors affect the entrepreneurial intention of students.
Abstract: – Fostering entrepreneurship needs a twofold policy that should focus on both the current situation and future prospect of entrepreneurship. Although many scholars and policy makers devote their attention to the first foci of issue, it is equally important to map out the future context of entrepreneurship. The purpose of this paper is to fill this void by analysing the impacts of some contextual factors on entrepreneurial intention of university students., – In the study, a model was proposed and empirically tested on a sample of 300 university students in Turkey. The entrepreneurial support model (ESM) considers predominantly the impact of contextual factors on entrepreneurial intention. In the model, entrepreneurial intention is taken as a function of educational, relational, and structural supports., – The results of the survey showed that educational and structural support factors affect the entrepreneurial intention of students., – The paper contributes to the literature by theorizing and empirically testing how some factors affect the entrepreneurial intention of university students. Although the study is subject to some limitations, it is believed that these limitations can be overcome with further studies., – The results of the study may have valuable implications for the policy makers and educators., – Since today's youth are the potential entrepreneurs of the future, understanding their perception about contextual factors can be a contribution to the development of the literature and an important step in designing a more effective policy mechanism.
TL;DR: The authors developed an integrative model of small business growth that is both broad in scope and parsimonious in nature, and derived a set of propositions that suggest how entrepreneurial orientation, environmental characteristics, firm resources, and managers' personal attitudes directly and/or indirectly influence the growth of small businesses.
Abstract: The purpose of this article is to develop an integrative model of small business growth that is both broad in scope and parsimonious in nature. Such a “big picture” model provides an opportunity (1) to gauge how much we really know about small business growth, when we simultaneously consider the constructs from the dominant perspectives, (2) to assess the contribution of each of these perspectives, (3) to examine the indirect effects that some constructs from one perspective might have on small business growth through constructs from another perspective, and (4) to consider different levels of analysis. Based on an analysis of data from 413 small businesses, we derive a set of propositions that suggest how entrepreneurial orientation, environmental characteristics, firm resources, and managers’ personal attitudes directly and/or indirectly influence the growth of small businesses.
TL;DR: In this paper, the authors analyze the field of international entrepreneurship (IE), which is in desperate need of further theory development, and identify theoretical inconsistencies, conflicting predictions, and knowledge gaps that all forestall the further development of IE research.
TL;DR: In this article, the authors define entrepreneurship as efforts to bring about new economic, social, institutional, and cultural environments through the actions of an individual or group of individuals, and define it as "an attempt to create new economic and social, social and institutional environments".
Abstract: We define "entrepreneuring" as efforts to bring about new economic, social, institutional, and cultural environments through the actions of an individual or group of individuals. Thus, we view entr ...
TL;DR: The authors argue that more theoretical frameworks are needed for exploring the varieties of social change that entrepreneurship may bring about, and they also discuss what difference this would make in extant entrepreneurship perspectives, by reframing entrepreneurship as positive economic activity to social change.
Abstract: We engage in a critical theoretical exercise to extend the boundaries of entrepreneurship theory and research by reframing “entrepreneurship as positive economic activity” to “entrepreneurship as social change.” Reframing entrepreneurship through feminist analytical lenses, we argue that more theoretical frameworks are needed for exploring the varieties of social change that entrepreneurship may bring about. We also discuss what difference this would make in extant entrepreneurship perspectives. Theoretically, methodologically, and analytically, such reframing is the main contribution of this paper.
TL;DR: In this paper, the authors examined how large-scale social movements external to an industry can influence the creation of new market opportunities and hence encourage entrepreneurship in the U.S. wind energy sector, and found that the direct and indirect effects of social resources (e.g., environmental groups) had a larger impact on entrepreneurial activity in this sector than the availability of natural resources such as land with high-quality wind.
Abstract: Through a study of the emergent U.S. wind energy sector, 1978–1992, this paper examines how large-scale social movements external to an industry can influence the creation of new market opportunities and hence encourage entrepreneurship. We theorize that through the construction and propagation of cognitive frameworks, norms, values, and regulatory structures, and by offering a preexisting social structure, social movement organizations influence whether entrepreneurs attempt to start ventures in emerging sectors. We find that the direct and indirect effects of social resources (e.g., environmental groups) had a larger impact on entrepreneurial activity in this sector than the availability of natural resources such as land with high-quality wind. Greater numbers of environmental movement organization members increased nascent entrepreneurial activity, and this effect was mediated by favorable state regulatory policy. Greater membership numbers also enhanced the effects of important natural resources, mark...
TL;DR: In this paper, the authors posit that better control of corruption will also be associated with rising levels of innovation and entrepreneurship, and that monitoring and other transactions cost should restrict the scale and scope of trade and thus, hamper productivity and investment in innovation.
TL;DR: In this article, the authors investigate the sense-making that scientists engage in as part of their participation in technology transfer and postulate that this process involves a potential modification in their role identity.
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TL;DR: In this paper, the authors found that the positive impact of sustainability orientation vanishes with business experience, and suggested measures to nourish an evidently existing potential for sustainable entrepreneurship, based on survey data collected from students and alumni of a German technical university.
Abstract: Do individuals who are concerned by issues of sustainability also exhibit strong entrepreneurial intentions? Given that existing imperfections in the market create numerous opportunities for entrepreneurship connected with sustainable development, adding individual sustainability orientation to models of entrepreneurial intention could increase their explanatory power. Based on survey data collected from students and alumni of a German technical university, we provide evidence that entering sustainability orientation into the equation is actually meaningful. However, our findings suggest that the positive impact of sustainability orientation vanishes with business experience. Consequently, we suggest measures to nourish an evidently existing potential for sustainable entrepreneurship.
Book•
28 Sep 2009
TL;DR: Lerner as discussed by the authors examines the ways governments have supported entrepreneurs and venture capitalists across decades and continents and provides valuable insights into why some public initiatives work while others are hobbled by pitfalls, and he offers suggestions for how public ventures should be implemented in the future.
Abstract: Silicon Valley, Singapore, Tel Aviv--the global hubs of entrepreneurial activity--all bear the marks of government investment. Yet, for every public intervention that spurs entrepreneurial activity, there are many failed efforts that waste untold billions in taxpayer dollars. When has governmental sponsorship succeeded in boosting growth, and when has it fallen terribly short? Should the government be involved in such undertakings at all? Boulevard of Broken Dreams is the first extensive look at the ways governments have supported entrepreneurs and venture capitalists across decades and continents. Josh Lerner, one of the foremost experts in the field, provides valuable insights into why some public initiatives work while others are hobbled by pitfalls, and he offers suggestions for how public ventures should be implemented in the future.
Discussing the complex history of Silicon Valley and other pioneering centers of venture capital, Lerner uncovers the extent of government influence in prompting growth. He examines the public strategies used to advance new ventures, points to the challenges of these endeavors, and reveals the common flaws undermining far too many programs--poor design, a lack of understanding for the entrepreneurial process, and implementation problems. Lerner explains why governments cannot dictate how venture markets evolve, and why they must balance their positions as catalysts with an awareness of their limited ability to stimulate the entrepreneurial sector.
As governments worldwide seek to spur economic growth in ever more aggressive ways, Boulevard of Broken Dreams offers an important caution. The book argues for a careful approach to government support of entrepreneurial activities, so that the mistakes of earlier efforts are not repeated.
TL;DR: In this paper, the authors investigate the performance of female-owned businesses, making comparisons to male owned businesses, using regression estimates and a decomposition technique, and explore the role that human capital, especially through prior work experience, and financial capital play in contributing to why female owned businesses have lower survival rates, profits, employment, and sales.
Abstract: Using confidential microdata from the U.S. Census Bureau, we investigate the performance of female-owned businesses, making comparisons to male-owned businesses. Using regression estimates and a decomposition technique, we explore the role that human capital, especially through prior work experience, and financial capital play in contributing to why female-owned businesses have lower survival rates, profits, employment, and sales. We find that female-owned businesses are less successful than male-owned businesses because they have less startup capital, less business human capital acquired through prior work experience in a similar business, and less prior work experience in a family business. We also find some evidence that female business owners work fewer hours and may have different preferences for the goals of their businesses, which may have implications for business outcomes.