Corporate venturing and the rent cycle

This study views entrepreneurial rents as renewable opportunities and explores how firms can effectively utilize corporate venturing to create and sustain economic rents. Schumpeterian entrepreneurs create rents by harnessing corporate venturing to exploit attractive economic opportunities. The Schumpeterian rent is composed of Ricardian and Austrian rents. Ricardian rents result from unique and non-reproducible characteristics or competencies of the firm, and hence, are not appropriable by imitators. Conversely, Austrian rents, or economic profit, are subject to dissipation by imitators and attract entry by competitors or Austrian entrepreneurs until they are bid to zero or destroyed by another Schumpeterian innovation. In this formulation, Austrian entrepreneurs are modeled as infra-marginal rent seekers. Consequently, to sustain rents, firms must cycle between using corporate venturing to create or discover Schumpeterian entrepreneurial opportunities and using venturing as a mechanism to exploit existing rent generating opportunities.     

Sharing my way to success: A case study on developing entrepreneurial ventures using social capital in an OSS community

While Open Source Software (OSS) communities provide opportunities for knowledge creation, we have a limited understanding of how entrepreneurs leverage OSS communities for their entrepreneurial ventures. Using social capital theory in a mixed methods case study, we compare entrepreneur and non-entrepreneur behaviors to investigate how entrepreneurs build social capital within an OSS community. This study shows that entrepreneurs differentiate themselves from non-entrepreneurs by focusing on cognitive and relational capital building activities, which in return makes it possible for them to leverage their social capital to influence and shape the environment in which they are operating. Our findings suggest that entrepreneurs strategically select which activities within the community to expend their limited resources on (e.g., developing code over participating in email conversations) and build their social capital more through their actions than through their words (e.g., showing their commitment to the community through code commits, bug fixes, and documentation). Given the liabilities of newness and smallness as well as other challenges faced by entrepreneurs, applying an open innovation strategy in OSS communities could be one approach where entrepreneurs, by developing and freely revealing their intellectual property to the community, share their way to success via OSS-infused entrepreneurial business ventures.     

Venture capitalists and entrepreneurs become venture philanthropists

• Non‐traditional charitable sources of revenue may be categorised as follows:
  • Venture philanthropy: Human resources and funding invested as donation in the charity by entrepreneurs, venture capitalists, trusts and corporations in search of a social return on their investment. It involves high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income.
  • Commercial ventures: They seek a financial return on investment by creating a social enterprise operated by charities and their trading/holding companies alone or in partnership with the corporate sector, venture capitalists or investors to provide funding. Venture philanthropists may also ‘invest’ without establishing an equity position in the commercial enterprise. Any profits are re‐directed to mission‐related activity, although the business activity may or may not be mission related.
  • Social venture capital: It funds commercial ventures (as above) but may not seek a complete return on investment; instead the investor may off set some or all of the investment against social outcomes.
• Within the context of venture philanthropy, this paper demonstrates how charities, venture capitalists and entrepreneurs may work together in strategic alliances. It explores venture philanthropy from the perspective of venture capitalists and entrepreneurs, giving examples. Charities are shown how to prepare themselves to take advantage of these entrepreneurial opportunities.
• Although the emphasis in this paper is on venture philanthropy, the processes outlined may be used to help a charity take advantage of opportunities within the broader social entrepreneurial context. Successful venture capitalists and entrepreneurs have demonstrated the ability to turn outline business ideas into big results, frequently in highly competitive business environments.
• A common characteristic that appears to unite these individuals when they divert their interest toward social ventures is a desire to apply their business‐like approach, which includes planning processes, milestones and outcome measurement to their social venture activity.

Copyright © 2005 John Wiley & Sons, Ltd.     

Entrepreneurs’ achieved success: developing a multi-faceted measure

Firm performance is typically measured via objective financial indicators. However, researchers increasingly acknowledge that entrepreneurs do not measure their success solely in financial terms but that a range of often subjective indicators matter to them. This article contributes to the debate on entrepreneurial performance by studying how entrepreneurs assess their achieved success. ‘Entrepreneurs’ achieved success’ was conceptualized as a multi-faceted construct that includes entrepreneurs’ self-reported achievement of firm performance, workplace relationships, personal fulfilment, community impact, and personal financial rewards. It was measured via the Subjective Entrepreneurial Success–Achievement Scale (SES-AS). Over the course of three studies (N?=?390) the factorial structure of ‘entrepreneurs’ achieved success’ was established and largely replicated in two cultures. Based on a nomological network, we documented relationships among ‘entrepreneurs’ achieved success’, quasi-objective indicators of firm performance, and entrepreneurs’ financial satisfaction, creativity, and health. Based on our research, we propose a new conceptual framework to study performance in the context of entrepreneurship. This framework acknowledges both the success criteria that entrepreneurs wish to achieve and those that they actually achieve, and extends our understanding of firm performance.

     

Entrepreneurial Hustle: Navigating Uncertainty and Enrolling Venture Stakeholders through Urgent and Unorthodox Action

Entrepreneurs need to act under conditions of uncertainty and resource constraints to bring new, often-unrecognizable products to market and convince an unknown set of stakeholders to support their endeavours. The type of action entrepreneurs take to navigate uncertain entrepreneurial contexts is underspecified. We analysed 48 interviews with entrepreneurs to inductively identify an action-oriented construct we labelled as entrepreneurial hustle – an entrepreneur’s urgent, unorthodox actions that are intended to be useful in addressing immediate challenges and opportunities under conditions of uncertainty. In a follow-up study, we use an experimental vignette approach to assess the impact of an entrepreneur’s hustle on venture stakeholders. Findings suggest that entrepreneurial hustle positively influences stakeholder perceptions of the entrepreneur’s leadership effectiveness and a venture’s legitimacy, mediated by perceptions of the entrepreneur’s ability-based trustworthiness. We conclude that entrepreneurial hustle is a fundamental behaviour that enables entrepreneurs to enrol new venture stakeholders and lead their entrepreneurial efforts.     

The influence of entrepreneurs’ immigrant status and time on the perceived likelihood of exporting

We contribute in this paper to the scant literature on the factors and conditions influencing the development of different perceptions of potential international opportunities for immigrant and native entrepreneurs in the pre-internationalization phase. Specifically, we investigate what factors influence the perceived likelihood entrepreneurs have of exporting. Building on entrepreneurial intentions and opportunity-based entrepreneurial processes, we propose a cognitive account of perceived likelihood of exporting based on entrepreneurs’ perceptions of the desirability and feasibility of export opportunities. We investigate how the immigrant status (i.e., individual characteristics) and time (i.e., contextual factors) influence the relationship between the desirability and feasibility of exporting, and entrepreneurs’ perceived likelihood of exporting. We employ an experimental design on a matched-pair sample of 108 native and immigrant entrepreneurs in domestic technology-based firms. The results are a unique account of the cognitive antecedents of the perceived likelihood of exporting under different temporal conditions, comparing immigrant and native entrepreneurs. We discuss theoretical and practical implications.

     

The influence of the media on the history of business success

All the main indicators related to entrepreneurship have increased since 2011 (Global Entrepreneurship Monitor 2018, 2019). The positive perception of this phenomenon was boosted by the socio-economic situation and by a specific agent of the entrepreneurial ecosystem: the economic specialized media. The aim of this study is to demonstrate that the economic media has given their readers an excessively positive discourse, linked to success and to the lack of analysis of the entrepreneurial phenomenon. The sample is defined in terms of a linguistic corpus comprising content related to entrepreneurship drawn from the digital editions of the three most important Spanish economic newspapers for the period 2010 to 2018. A systematic standardize assignment of categories to the contents and an analysis of the relationships between those categories has been carried out (Riffe et al. 2019). These categories are ‘number of contents’, ‘information treatment’, ‘percentage of success stories’, ‘percentage of content analysis’ and ‘sources’. The results reveal a clear intention of the media to offer an overly optimistic perception of the entrepreneurial phenomenon considering the survival rate of the projects mentioned. There is evidence for a selection of information linked to success, a lack of follow-up of the stories and a poor preparation by the media, which lacks specialized journalists and, above all, replicates agency contents. This study provides empirical evidence that helps to identify the optimistic perception imposed by the media for the entrepreneurial phenomenon. This perception, together with other relevant facts, contribute to the creation of an ‘information bubble’ (Cervantes-Zacarés 2019) during the period under study.

     

Explorers of the twenty-first century? A systematic literature review of the scholarship on international entrepreneurs from developed economies

Throughout history, expeditionists and explorers have discovered foreign countries and new worlds, markedly influencing the lives of succeeding generations. However, as multinational enterprises have come to drive globalisation, the existence of entrepreneurial individuals without the resources of large corporations is a relatively recent phenomenon. Although research on migrant entrepreneurs demonstrates the positive impact that foreign entrepreneurial activity can have on job creation and innovation, a clear perspective on entrepreneurs from developed economies venturing abroad is lacking. The study aggregates evidence from 33 articles to establish a unifying framework that describes the foreign entrepreneurial process originating in developed economies. The framework proposes categorising foreign entrepreneurial activity according to social and economic dimensions and introduces four archetypes of foreign entrepreneurs, helping us understand the dynamics of the institutional context and the motivations for venturing into foreign environments. Finally, the study discusses the implications for foreign entrepreneurs and considers future research avenues.

     

Why are some graduate entrepreneurs more innovative than others? The effect of human capital,psychological factor and entrepreneurial rewards on entrepreneurial innovativeness

This study investigates the innovation behaviour of graduate start-ups at the individual level. It bridges the graduate enterprise literature and innovative entrepreneurship literature to put forward three arguments that ascertain why highly educated graduate entrepreneurs are not always innovative in starting new businesses. First, anchoring on the individual opportunity costs–entrepreneurial rewards nexus, it argues that graduate entrepreneurs will exploit opportunities innovatively if they expect the levels of entrepreneurial rewards that match their high human capital and high opportunity costs. Second, it is argued that entrepreneurial innovativeness is conditional on psychological factors such as students’ managerial self-efficacy and overconfidence. Third, it is also argued that the nonlinear relationship between entrepreneurial innovativeness and entrepreneurial rewards will drive graduate entrepreneurs to exploit even riskier opportunities in search for high rewards. This study operationalizes the theoretical framework with an empirical model and estimates it using a graduate entrepreneur sample from a questionnaire survey in China. Our results suggest that innovation behaviour of graduate start-ups is influenced by the quantity of human capital, psychological make-up and expectations of entrepreneurial rewards.     

Core entrepreneurial competencies and their interdependencies: insights from a study of Irish and Iranian entrepreneurs,university students and academics

The purpose of this paper is to advance our understanding of core entrepreneurial competencies and their interdependencies. Developing entrepreneurial competencies is increasingly seen as important to foster entrepreneurship. Studies to date have highlighted different entrepreneurial competencies in the context of different sectors, regions and countries. However, there has been a lack of consensus in relation to the perceived relative importance of core entrepreneurial competences and their interdependencies among students, academic and entrepreneurs. Our paper focuses on two key questions: first, what are the core entrepreneurial competencies that need to be developed in educational contexts? Second, what are the interdependencies between these entrepreneurial competencies that need to be developed in educational contexts? Using a collective intelligence methodology a comparative study of Iran and Ireland was undertaken that involved three stakeholder groups of students, academics and entrepreneurs. This methodology was used to identify, rank, and structure entrepreneurial competencies considered important for university students. The results of the study indicated that productive thinking, motivation, interpersonal skills and leadership are core entrepreneurial competences that need to be developed in educational contexts. Findings also highlight critical interdependencies between entrepreneurial competencies and the relative influence of different competencies across groups and regions. We outline the implications of our findings for designing a curriculum for improving students’ entrepreneurial competencies.     

创业拼凑与机会开发过程模型--基于大学生创业的单案例分析

在"双创"教育的指引下,越来越多的大学生投身到创业活动之中,如何提高大学生创业存活率成为理论界与实践界关注的焦点。本文以一家大学生新创企业为例,采用纵向案例研究构建了大学生创业情境下"机会-资源一体化"过程模型,揭示了大学生新创企业利用创业拼凑进行机会开发的微观机制。研究发现在探索期,新创企业以资源为导向,采用物质拼凑和技能拼凑,实现"发现型机会"的开发;在稳定期,新创企业以机会为导向,采用网络拼凑和技能拼凑,实现"发现+创造型"机会的开发;在发展期,新创企业以顾客为导向,采用客户拼凑和技能拼凑,实现"创造型机会"的开发。研究结果可为揭示创业拼凑内部机理的形成提供方向,也可为从校园走出的大学生新创企业利用手边资源、开发有潜力的创业机会、实现企业可持续发展提供有益的借鉴和启示。     

Entrepreneurship through Bricolage: a study of displaced entrepreneurs at times of war and conflict

ABSTRACT

War and conflict brings about adverse changes for those who are displaced. How do entrepreneurial individuals respond to such adversity to either set-up, or continue with their existing entrepreneurial endeavours that would improve their own livelihood or that of others who have been affected? Whilst previous studies have found local knowledge, networks and resources to be crucial in the development of ventures in the war and conflict context, alienation from mainstream society within the host location often means that to succeed, those who are displaced require alternative strategies and approaches. Through examining the entrepreneurial ventures of six internally displaced entrepreneurs in Pakistan, our study identifies that entrepreneurial individuals find different ways to adapt to the new order, with both internal and external bricolage becoming the key strategies deployed to either re-establish their previous businesses or to develop new endeavours in the host location. To compensate for lack of local knowledge, networks and resources, we found that entrepreneurs followed closely their previous paths in their bricolage attempts, relying on reconfigurations of their pre-existing competencies, as well as utilizing pre-established and clandestine networks.     

Full circle support: unpacking the relationship between women entrepreneurs’ family-to-work support and work interference with family

With an anchoring in conservation of resources theory, this study examines the mediating role of women entrepreneurs’ work-related emotional exhaustion in the relationship between their family-to-business support and work interference with family, as well as the moderating role of the entrepreneurial character of their company’s strategy in this process. Survey data collected from women entrepreneurs in Argentina indicate that a notable reason that business support received from the family diminishes work interference with that same family is that it abates the sense of being overburdened by work. This benefit of reduced exhaustion is especially prominent to the extent that women entrepreneurs pursue an energy-consuming, entrepreneurial strategy for their business. For entrepreneurship scholars and practitioners, this research accordingly reveals a critical channel through which supportive family relationships can decrease the probability that women entrepreneurs bring work challenges home (i.e., diminished depletion of work energy), and it shows how this explanatory factor varies with the strategic profile they adopt for their business.

     

Leveraging entrepreneurial ecosystems as human resource systems: A theory of meta-organizational human resource management

Entrepreneurs require human resources to establish and scale their ventures; however, constraints often prevent entrepreneurs from investing in formal human resource systems. How entrepreneurs overcome human resource challenges by leveraging their entrepreneurial ecosystems as informal inter-organizational talent management systems has been overlooked by scholars. We propose a model of entrepreneurial ecosystem human resource management, theorizing that ecosystem participants collectively perform the human resource management function for entrepreneurship communities. Drawing from economic rents theory, we explain how entrepreneurial ecosystems encourage a form of meta-organizational human resource management that allows ecosystem participants to coordinate talent acquisition, learning and development, performance management and rewards, and retention. Coordinated entrepreneurial ecosystems improve entrepreneurial performance by sourcing talent, onboarding selected members, enculturating ecosystem values, developing entrepreneurial skills, and retaining human resources, which in turn generates rents. We discuss how our theory catalyzes research at the HR and entrepreneurial ecosystems interface and reveals insights for practitioners.     

创业者网络能力、创业激情与创业绩效——基于资源编排与风险承担双重传导路径

创业者及其新创企业面临较大的生存压力,研究其如何借助外部关系网络提升创业绩效具有重要意义。本文基于创业网络理论,以大学生创业者为样本进行实证研究,结果显示:关系建立能力负向影响创业资源编排,正向影响创业风险承担,而关系协调能力对创业资源拼凑和创业风险承担均具有正向影响。创业资源编排正向影响创业绩效,而创业风险承担对创业绩效的影响呈倒U型;创业激情正向调节创业者网络能力对其创业绩效的影响。本文从网络能力视角深化了创业绩效提升机制研究,提出创业者应提高网络能力、对外部资源的利用能力和对企业经营管理的能力,政府应进行及时有效的创业扶持,从而为创业者实现创业成长提供实践指导。     

The importance of ‘fitting in’: collaboration and social value creation in response to community norms and expectations

Abstract

This article explores the effects of embeddedness in communities upon entrepreneurial practices. Based on the lived experiences of 10 craft entrepreneurs, this study reveals that within certain contexts, such as craft communities, entrepreneurs are expected to exhibit high levels of camaraderie and generosity, which leads them to create social value by supporting their peers and freely sharing their resources. Entrepreneurs achieve ‘fitting in’ not only by learning accepted norms, but also by performing strategic actions which allow them to temporarily adapt their conduct to meet the expectations of community members. Thus, this study exposes a largely concealed element of social entrepreneurial practice. This article also reveals that embeddedness in communities can lead entrepreneurs to collaborate with potential competitors. Craft entrepreneurs share their economic, cultural, social and symbolic capital in order to support and help revitalise their communities, to perpetuate their respective industries and to sustain a genuine interest in hand-crafted products. They consider such supportive behaviour a social responsibility that is shared among community members and a task that is passed from one generation to the next. Thus, this article reveals that collaboration and social value creation can be embraced in response to community norms and expectations.     

The value of entrepreneurship by gender on regional behaviour

This paper examines how the value of entrepreneurship by gender is related to regional behaviour. Researchers have traditionally defined entrepreneurial organization as separate to gender and to economic growth. Using the Global Entrepreneurship Monitor (GEM) we complete a dataset of 50 countries using variables such as total early-stage entrepreneurial activity (TEA) and opportunity-driven entrepreneurial activity (OPP). The methodology used proposes an analysis of regional convergence, comparing the evolution over time of both the rate of entrepreneurial activity and the ratios of opportunity-driven and need-driven entrepreneurial activity, distinguishing by gender. On the other hand, a regression model is proposed that explains the greater presence of female entrepreneurship. The results show that entrepreneurship by gender is an important factor to define different cluster of countries according to how men and women entrepreneurs create new economic opportunities.

     

Revisiting the difference between mixed methods and multimethods: Is it all in the name?

The literature on mixed methods and multimethods has burgeoned over the last 20 years, and researchers from a growing number and diversity of fields have progressively embraced these approaches. However, rapid growth in any movement inevitably gives rise to gaps or shortcomings, such as “identity crises” or divergent conceptual views. Although some authors draw a clear and sometimes opinionated distinction between mixed methods and multimethods, for others, they are synonymous. The concepts underlying both terms therefore have become blurred and generated much confusion. The aim of this article is to explore the origins of the confusion, describe our view of mixed methods and multimethod studies, and by doing so, help to clearly delineate the two concepts. The authors have presented their opinion of how these terms and concepts should be distinguished and call for a constructive debate of the issues involved in the mixed methods and multimethod literature. This is a way truly to propel the field forward.     

The influence of perceptions on potential entrepreneurs

Much research has tried to explain why some people, but not others, choose to become entrepreneurs. The cognitive approach provides a useful insight to explore the entrepreneur-related phenomena through perceptions and intentions. Cross-national studies of this kind are rare, since large international surveys are needed. In this sense, the GEM-project questionnaire includes some questions about entrepreneurial perceptions of the adult population. Thus, the main objective of this paper is building a theoretical framework of entrepreneurial perceptions and testing their influence on entrepreneurial intentions with GEM data. This may allow overcoming some of the weaknesses of previous studies in entrepreneurial intentions. Three kinds of perceptions are identified: individual perceptions, perceptions about entrepreneurial opportunities, and socio-cultural perceptions. Their effect on intentions is tested along with some control variables. Results confirm that these perceptions are relevant variables in explaining the entrepreneurial intention of individuals across nations. At the same time, results from this paper would contribute to the opening up of a new line of analysis using GEM-project data: the conception stage of the new venture process; that is, the study of potential entrepreneurs.     

The best of both worlds: how rural entrepreneurs use placial embeddedness and strategic networks to create opportunities

Entrepreneurial activities are strongly influenced by the context in which they occur. It is therefore imperative to understand how different contexts enable entrepreneurs to create opportunities. In this paper, we focus on the spatial context of rural entrepreneurs and explore how the rural context impacts on their opportunity creation. Based on a multiple case study, we find that rural entrepreneurs mix what we refer to as placial embeddedness – an intimate knowledge of and concern for the place – with strategically built non-local networks, i.e. the best of two worlds. Notably, the entrepreneurs seek to exhaust the localized resource base before seeking out non-local resources. Our findings thus contribute to our understanding of entrepreneurship in context and challenge future research to explore how different forms of contexts are bridged in different settings to create varieties of entrepreneurial activities.