Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity

This study introduces a novel multidimensional measure of the entrepreneurial environment that reveals how differences in institutional arrangements influence both the rate and the type of entrepreneurial activity in a country. Drawing from institutional theory, the measure examines the regulatory, normative, and cognitive dimensions of entrepreneurial activity, and introduces a novel conducive dimension that measures a country's capability to support high-impact entrepreneurship. Our findings suggest that differences in institutional arrangements are associated with variance in both the rate and type of entrepreneurial activity across countries. For the formation of innovative, high-growth new ventures, the regulative environment matters very little. For high-impact entrepreneurship an institutional environment filled with new opportunities created by knowledge spillovers and the capital necessary for high-impact entrepreneurship matter most.     

Nascent Entrepreneurship and the Level of Economic Development

Based upon two strands of literature, this paper hypothesizes a U-shaped relationship between a country’s rate of entrepreneurial dynamics and its level of economic development. This would imply a different scope for entrepreneurship policy across subsequent stages of development. Regressing global entrepreneurship (GEM) 2002 data for nascent entrepreneurship in 36 countries on the level of economic development as measured either by per capita income or by an index for innovative capacity, we find support for a U-shaped relationship. The results suggest that a ‘natural rate’ of nascent entrepreneurship is to some extent governed by ‘laws’ related to the level of economic development. For the most advanced nations, improving incentive structures for business start-ups and promoting the commercial exploitation of scientific findings offer the most promising approach for public policy. Developing nations, however, may be better off pursuing the exploitation of scale economies, fostering foreign direct investment and promoting management education. An erratum to this article is available at .     

The Diana Project: pioneering women studying pioneering women

The 2007 winner of the International Award for Entrepreneurship and Small Business Research is the Diana Project team (Candida Brush, Nancy Carter, Elizabeth Gatewood, Patricia Greene and Myra Hart). The Diana Project builds on the vast experience of the team in the field of entrepreneurship in general and women entrepreneurship, business growth and venture capital in particular. The Diana Project has investigated the supply and demand side of growth capital for women entrepreneurs. The research contributes to entrepreneurship theory as well as to practice, filling a void in knowledge on growth-oriented women entrepreneurship. In this article we present and discuss the research contribution of the Diana Project, in the areas of entrepreneurship, women entrepreneurship and venture capital. We specifically discuss the value of researching a specific group of women entrepreneurs, those who want to grow their businesses, that very clearly demonstrates the positive potential of female entrepreneurship. The Diana Project has also moved research on women’s entrepreneurship forward since its framework does not treat women entrepreneurs as “other,” i.e., the project does not presuppose that women’s entrepreneurship is similar to or different from men’s entrepreneurship. It assumes that women’s entrepreneurship is entrepreneurship and studies it from that point of view. Carin Holmquist is professor at Stockholm School of Economics and member of the Prize Committee for The International Award for Entrepreneurship and Small Business Research. Sara Carter is professor at University of Strathclyde. Both have written extensively in several of the areas covered by the Diana Project. The prize is awarded by the Swedish Foundation for Small Business Research (FSF) and the Swedish Board of Industrial and Technical Development (NUTEK). An important aim with this prize is to attract broader attention to this research field. A precondition for choosing the winner of the award is that the research for which the award has been granted is a significant contribution to the theory and empirical understanding of entrepreneurship and the importance of entrepreneurship, new firm formation and small businesses in economic development. Besides the honor, the prize consists of SEK 0.5 million (roughly USD 80,000). It has been awarded annually since 1996. More information about the prize and previous winners is available at .     

Being in Someone Else’s Shoes: the Role of Gender in Nascent Entrepreneurship

Several studies have shown the existence of significant differences in the rate of new business creation between men and women. Specifically, it has been shown that women are much less likely to be involved in entrepreneurship than men worldwide. It is not yet understood, however, if such differences are the result of personal characteristics of the individual and of her economic environment or are, instead, the result of universal and, perhaps, evolutionary phenomena. Our empirical analysis is conducted using representative samples of population for 37 countries and a special form of bootstrapping that allows us to equalize individuals’ conditions and, as a result, analyze the choices of men and women put in identical economic environments and socio-economic circumstances.      

Linking international entrepreneurship to uncertainty,opportunity discovery,and cognition

In this paper, we suggest a model of international entrepreneurship that links cognition, noticing opportunities, absorbing uncertainty, and bearing uncertainty, to international entrepreneurial action, which is important because of the increased interest in international entrepreneurship. The ways in which cognition affects opportunity identification are discussed to show how international entrepreneurs’ cognitive processes work in terms of identifying opportunities. We also explore the role of cultural differences, with respect to tolerance for bearing uncertainty, on international entrepreneurship. Finally, the model is used to identify areas for future international entrepreneurship research.     

What a Difference a Y makes-Female and Male Nascent Entrepreneurs in Germany

In western industrialized countries men are on average more than twice as active in entrepreneurship as women. Based on data from a recent representative survey of the adult population in Germany this paper uses an empirical model for the decision to become self-employed to test for differences between women and men in the ceteris paribus impact of several characteristics and attitudes, taking the rare events nature of becoming an entrepreneur into account. Furthermore, a non-parametric approach using Mahalanobis- distance matching of man and woman which are as similar as possible in all characteristics and attitudes but the “small difference” is used to investigate the difference in the propensity to become self-employed by sex. A core finding is that the difference between men and women in both the extent and the effect of considering fear of failure to be a reason not to start one’s own business is important for the explanation of the gap in entrepreneurship by sex.     

Josh Lerner: recipient of the 2010 Global Award for Entrepreneurship Research

This article describes the academic contributions of the 2010 recipient of the Global Award for Entrepreneurship Research, Professor Josh Lerner of the Harvard Business School. Lerner’s empirical research on the inter-relationship between venture capital, innovation and entrepreneurship has greatly extended and improved our understanding of one of the major drivers of growth in modern economies. The first part of this article explains Lerner’s contributions as regards the structure and organization of the venture capital industry. Later, his most important publications on entrepreneurship, innovation and intellectual property rights are surveyed. Several aspects of Lerner’s policy-oriented work are then outlined, before the article closes with a brief conclusion.     

Lifesizing Entrepreneurship: Lonergan, Bias and The Role of Business in Society

In an era of downsizing and disposable ethics, there is a need to redefine the role of business in society. Central to such a discussion is the frame of reference of the entrepreneur. A traditional business model defines entrepreneurship based on endowing resources with new wealth producing capabilities. This paper defines entrepreneurship as a calling to endow resources with new value. In support of the impact such a distinction would have on repositioning the role of business in society, the paper weaves together writings from the Pope, Drucker, and Lonergan, with emphasis on applying Lonergan’s discussion of bias to the discussion of ethics in business. Adapting the term, “lifesizing”, which was coined by the author in a previous article, to entrepreneurship, the paper takes the position that lifesized entrepreneurship can act as a catalyst similar to Lonergan’s cosmopolis and play a key role in countering bias and repositioning the role of business in society.     

Serial entrepreneurship: impact of human capital on time to re-entry

This study uses a longitudinal matched employer–employee database to examine how ex-entrepreneurs’ levels of general and specific human capital influence their likelihood of re-entering entrepreneurship over time, in a different firm, thereby becoming serial entrepreneurs. The results reveal a negative effect of general human capital on the hazard of becoming a serial entrepreneur; the impact of entrepreneurial-specific human capital on the hazard of re-entering entrepreneurship is in general positive. This research provides a dynamic approach to serial entrepreneurship revealing that specific types of human capital play distinct roles on individuals’ entrepreneurial behavior.     

Relationship between individualist–collectivist culture and entrepreneurial activity: evidence from Global Entrepreneurship Monitor data

This paper examines how one dimension of national culture (an individualist–collectivist orientation) is related to Total Entrepreneurial Activity, depending on the level of economic development, measured by GDP per capita. Researchers have traditionally associated individualism with high rates of firm creation, arguing that an orientation towards achievement and the pursuit of personal objectives (dominant aspects in individualist cultures) are determinants of entrepreneurial activity. The current analysis shows that a country’s culture correlates to entrepreneurship, but cannot uphold the idea that higher levels of individualism mean higher rates of entrepreneurship. Using data from the Global Entrepreneurship Monitor on 52 countries, the results show that a country’s entrepreneurship rate is negatively related to individualism when development is medium or low, and positively related to individualism when the level of development is high. Thus, individualism is not related to entrepreneurship in the same way in countries with differing levels of development.     

Only the lonely? The influence of the spouse on the transition to self-employment

Previous research showed that married individuals are overrepresented among the self-employed. Few studies proposed skill-spillover between the spouses within the marriage as an explanation. This paper deviates from the previous research by exploring different relationship contexts (e.g., cohabitation, being married or divorced, a widow(er) or single) and the role of partner influences under these contexts. It argues that the interaction between gender and relationship status implies variation in not only resources but also constraints, and hence sorts individuals into two different types of self-employment: entrepreneurial self-employment (i.e., incorporated business) and unincorporated self-employment. Using “Panel Study of Income Dynamics (PSID) 1965–2005” data, results of the competing risk models show that marital status contributes to both types of self-employment transitions, especially for men, but also for women. Cohabitation is a less supportive context for entrepreneurship and a partner’s self-employment experience increases only women’s likelihood of entering into entrepreneurship. These results suggest that skill-spillover between partners might be context dependent and only in one direction (from men to women).     

A Study of the Relationship Between Personal Values and Moral Reasoning of Undergraduate Business Students

This study examines values and value types as well as scores in levels of moral reasoning for␣students enrolled in a business program. These two factors are measured using the Schwartz Personal Values␣Questionnaire and the Defining Issues Test 2. No statistically significant differences in levels of moral␣reasoning, rankings of values, and value types could be attributed to gender. However, eight significant correlations between value types and levels of moral reasoning provide evidence that a systematic relationship exists. The relationships are not only internally consistent but also consistent with the model of values based on motivational goals (Schwartz S. H. and K. Boenke: 2004, Journal of Research in Personality, 38 230–255). Dr. George Lan, (Ph.D. Management, Queen’s University, Canada) is an Associate Professor of Accounting and a member of the Certified General Accountants of Ontario. His research interest and publications are in the area of business ethics and governance, accounting education and earnings management. Dr. Maureen P. Gowing (Ph.D. Management, Queen’s University, Canada) is an Assistant Professor of Accounting. She is a co-author of both a financial and managerial accounting text and has published articles on ethics and cost control, efficacy of health systems management, and gender differences in oral communication. Dr. Sharon McMahon (Ed.D. Wayne State University, Detroit, Michigan in Curriculum Development and Counseling is an Associate Professor, Faculty of Nursing. Research interests include health and wellness of children and families, health behavior outcomes, and learner’s satisfaction. Author and co-author of publications related to nonprofit governance she integrates her lived experience as a board member on several nonprofit boards and professional organizations. Dr. Fritz Rieger (Ph.D. in Management, McGill University, Canada) is an Associate Professor of Business Policy and Strategy. His research interests and publications are in the areas of ethics, organizational behavior, systems theory, modeling, culture, and immigrant entrepreneurship. Dr. Norman King (Ph.D. in Religious Studies, University of St. Michael’s College, Canada) is a Full Professor (retired) in the department of Languages, Literatures and Cultures. He has authored and co-authored many publications in contemporary spirituality and Western religious thought and remains an active board member of the Children’s Aid Society.     

Scott A. Shane: winner of the Global Award for Entrepreneurship Research

Scott A. Shane is the 2009 winner of the Global Award for Entrepreneurship Research. In this article we discuss and analyze Shane’s most important contributions to the field of entrepreneurship. His contribution is extraordinarily broad in scope, which makes it difficult to pinpoint one or a few specifics that we associate with Shane’s scholarship. Instead, they can be summarized in the following three points. First, he has influenced what we view as central aspects of entrepreneurship. Shane has been a leading figure in redirecting the focus on entrepreneurship research itself. Second, he has influenced how we view entrepreneurship. Shane’s research is arguably theory driven and it applies and develops theoretical lenses that greatly improve our understanding of entrepreneurship. Third, he has contributed to how we conduct entrepreneurship research. Shane has been a forerunner in examining relevant units of analysis that are difficult to sample; research designs and databases specifically designed for studying entrepreneurial processes; and sophisticated analytical methods. This has contributed to advancing the methodological rigor of the field. Summing them up, the contributions are very impressive indeed.

Behaviours and entrepreneurial intention: Empirical findings about secondary students

This paper aims to identify some factors that may be explaining differences among secondary students in start-up intentions. For that, the study develops an entrepreneurial intention model sustained by the use of Azjen’s Theory of Planned Behaviour (TBP). Using a sample of students aged between 14 and 15 years old, a questionnaire based on the Li?án and Chen’s Entrepreneurial Intention Questionnaire was administrated. The purpose is to test a model of entrepreneurial intention using structural equations. The findings point that TPB is an appropriate tool to model the development of entrepreneurial intention through pedagogical processes and learning contexts. The education and training should centre itself much more in changing personal attitudes than in knowledge. Moreover, it is desirable that an entrepreneurship educational programme could contribute to the development of competences related to entrepreneurship, social and civic skills, and cultural awareness.     

An Essay on the Origins of Entrepreneurial Opportunity

In this article, we apply a process of logical inference to draw conclusions about the origins of entrepreneurial opportunity from existing conversations in the field of strategic management. We equate the execution of a competitive strategy – as described in the strategic management literature – to the exploitation of an entrepreneurial opportunity – as described in the entrepreneurship literature. Given this assumption, we survey five extant theories of strategy in an attempt to categorize and describe the circumstances that define how and with what consequence entrepreneurial opportunity exploitation results in future opportunity. Given this review, we characterize the `outcomes’ of strategy execution as a function of the ‹match’ between strategy and environment in an effort to extend and refine Holcombe’s [Holcombe, Randall, 2003, Review of Austrian Economics 16(1), 25–43] position that entrepreneurial opportunity is born of prior entrepreneurial action.

‘Let your hook always be cast; in the pool where you least expect it, there will be a fish.’ Ovid, A.D. 17

     

Growth via Intellectual Property Rights Versus Gendered Inequity in Emerging Economies: An Ethical Dilemma for International Business

In this paper, we critique the emergent international normative framework of growth – the knowledge economy. We point out that the standardized character of knowledge economy’s flagship – intellectual property rights (IPRs) – has an adverse impact on women in emerging economies, such as India. Conversely, this impact on women, a significant consumer segment, has a feedback effect in terms of market growth. Conceptually, we analyze the consequences of knowledge economy and standardized IPR through a feminist lens. We extend the analyses by pointing to various contradictions surrounding growth norms; for example, there are inherent contradictions between established “formal” legalistic interpretation of IPR, “soft law” norms of corporate social responsibility, a fluid situation of moral claims of human rights, and different institutional capabilities at the international and domestic level. Consequently, we are able to demonstrate how standard IPR laws fail to deliver equity for all. We argue our case through exploring the growth aspects of the agricultural sector in India and the adverse impact of standard biopatenting on women farmers’ rights (as producers and consumers) and preservation of environment. We suggest that desired gendered equity is better achieved when there is a constellation of actors – private-sector business, the state, and civil-society leaders – working together to ensure a balanced development through tailoring of IPR to local needs.     

Entrepreneurship,export orientation,and economic growth

In this paper the relationship between a country’s prevalence of new ventures and its rate of economic growth is investigated, while taking into account new ventures’ export orientation. It is generally acknowledged that new venture creation as well as export activity may both be important strategies for achieving national economic growth. However, to our knowledge no attempt has been made to investigate empirically the role of export-driven new ventures in economic growth. We focus on the national level and use data for a sample of 34 countries over the period 2002–2008. Our results suggest that, on top of a positive relation between entrepreneurial activity in general and subsequent macroeconomic growth, there is an additional positive effect of export-oriented early-stage entrepreneurship in higher-income countries. However, there is no such additional effect in lower-income countries.     

Evolution of entrepreneurship and organizational configurations at Zildjian, 1623�C2010

This work uses a case-based research approach and Siggelkow’s (Acad Manag J 47:125–159, 2002) four-phase organizational configuration model to analyze Zildjian’s evolutionary growth and entrepreneurial initiatives in the global music industry. Zildjian is a unique and well-respected cymbal manufacturer that originated out of Turkey in 1623 and continues to be a major force in the music instruments sector. Turkey was a growing market during the periods of 1700 and 1800 that helped Zildjian to become an increasingly successful company. This also led to creating 13 generations of a successful family business. The work discusses Zildjian’s 387-year family genealogy and its growth within the domains of entrepreneurship, organizational configurations, and strategic inertia. The work finds that behind Zildjian’s marvelous expansion and well-known cymbals, there is a tightly knit family firm that continues to operate like an entrepreneurial venture, dealing with thousands of artists, musicians, educators, orchestras, and bands worldwide. As of 2011, the company may not be a large multinational corporation but its business model is a classic addition to the international entrepreneurship literature. Staunchly traditional in its family business, Zildjian thrives as a privately held company and protects its closely guarded metallurgical formula. The significance of this work lies in its unique methodology within the evolution of Zildjian’s entrepreneurial growth and organizational configurations.     

The Influence of an Organisation’s Corporate Values on Employees Personal Buying Behaviour

This article explores the influence that an organisation’s corporate values have on employees’ behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues that an organisation’s corporate values influence not only its employees’ behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees’ buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation’s value system may go beyond the purely business context. Organisations need to be aware of their impact on employees’ behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures.