Editorial to the special issue “Structured Literature Reviews in Entrepreneurship Research-Taking Stock and Setting the Agenda”

Management Review Quarterly - Entrepreneurship as a phenomenon has changed a lot over the last years. At the same time entrepreneurship as an interdisciplinary research field has seen strong growth...     

When is a Compositional Effect not a Compositional Effect?

The question of compositional effects (that is, the effect of collective properties of a pupil body on the individual members), or Aggregated Group-Level Effects (AGLEs) as the author prefers to call them, has been the subject of considerable controversy. Some authors, e.g. Rutter et al. [Fifteen thousand hours: Secondary Schools and Their Effects on Children. London: Open Books.], Willms [Oxford Review of Education 11(1): 33–41; (1986). American Sociological Review, 51, 224–241.], Bondi [British Educational Research Journal, 17(3), 203-218.], have claimed to find such effects, while on the other hand Mortimore et al. [School Matters: the Junior Years. Wells: Open Books.] and Thomas and Mortimore [Oxford Review of Education 16(2): 137–158.] did not. Others, for example Hauser [1970], have implied that many apparent AGLEs may be spurious, while Gray et al. [Review of Research in Education, 8, 158–193.] have suggested that at least in certain circumstances such apparent effects may arise as a result of inadequate allowance for pre-existing differences. A possible statistical mechanism for this is outlined in the work of Burstein [In R. Dreeben, & J. A. Thomas (Eds.), The Analysis of Educational Productivity. Volume 1: Issues in Microanalysis, Cambridge, MASS: Ballinger, pp. 119–190] on the effect of aggregating the data when a variable is omitted from the model used. This paper suggests another way in which spurious AGLEs can arise. It shows mathematically that even if there are no omitted variables, measurement error in an explanatory variable could give rise to apparent, but spurious, AGLEs, when analysed using a multilevel modelling procedure. Using simulation methods, it investigates what the practical effects of this are likely to be, and shows that statistically significant spurious effects occur systematically under fairly standard conditions.     

Winning the tournament for named professorships in management

We apply tournament theory to explain the process within which selection of named professorships takes place and a procedural justice test to justify winning the named professorship tournament. Specifically, we estimate the probability that management professors hold one of the highest rewards for academic research productivity, a named professorship, as a function of his or her research credentials, as measured by the number of articles published in a small core of elite management journals. Alphabetically, these are Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Operations Management, Management Science, Operations Research, Organization Science, and Strategic Management Journal. Although each of the eight journals is positively related to the probability of attaining a named professorship, the Academy of Management Review and the Academy of Management Journal emerge as the two most influential management journals.     

Drivers of entrepreneurial aspirations at the country level: the role of start-up motivations and social security

This paper investigates whether various start-up motivations and a country’s level of social security can explain the prevalence of entrepreneurial aspirations. For entrepreneurial aspirations and motivations we use country-level data from the Global Entrepreneurship Monitor (GEM) for the year 2005. We distinguish between the necessity motive, independence motive and increase wealth motive and between aspirations in terms of innovativeness, job growth and export orientation. Our findings indicate that social security negatively affects a country’s supply of ambitious entrepreneurship. Our results also suggest that entrepreneurial aspirations in terms of job growth and export relate positively to the increase wealth motive.     

Entrepreneurial ecosystems and the lifecycle of university business incubators: An integrative case study

University business incubators (UBIs) are an important part of the ecosystem that supports entrepreneurial activities and economic development. Extant research has focused on examining UBI activities at a single point in time, but there is a paucity of theoretical and empirical work aimed at understanding the forces that explain why and how UBIs change over time. This is an important gap because establishing a university business incubator does not assure its development and growth. We address this issue by drawing upon the Fisher et al. Academy of Management Review, 41(3), 383-409 (2016) Identity-Legitimacy-Life Cycle model to explain how the pursuit of resources and organizational legitimacy shapes the development of UBIs along key strategic and operational dimensions, which has implications for performance evaluation over time. We illustrate with a case study about the creation and evolution of the DMZ, a leading UBI at Ryerson University in Canada. This case provides new insights about the dynamics of UBIs and their relationships with the entrepreneurial ecosystems in which they are embedded. Implications for future research, management practice, and public policy are discussed.

     

Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors

The main objective of this study is to investigate the impact of corporate research and development (R&D) activities on firm performance, measured by labour productivity. To this end, the stochastic frontier technique is used on a unique unbalanced longitudinal dataset comprising top European R&D investors over the period 2000–2005. In this framework, this study quantifies technical inefficiency of individual firms. From a policy perspective, the results of this study suggest that if the aim is to leverage firms’ productivity, the emphasis should be put on supporting corporate R&D in high-tech sectors and, to some extent, in medium-tech sectors. On the other hand, corporate R&D in the low-tech sector is found to have a minor effect in explaining productivity. Instead, encouraging investment in fixed assets appears important for the productivity of low-tech industries. Hence, the allocation of support for corporate R&D seems to be as important as its overall increase and an ‘erga omnes’ approach across all sectors appears inappropriate. However, with regard to technical efficiency, R&D intensity is found to be a pivotal factor in explaining firm efficiency and this turns out to be true for all industries.     

Public inputs and dynamic producer behavior: endogenous growth in U.S. agriculture

This paper is an attempt to understand the impact of public R&D and public infrastructure on the performance of the U.S. agricultural sector during the last part of the twentieth century. A neoclassical Solow growth model is not sufficient for this understanding given the sustained growth performance of the sector. We base our analysis on a well-known endogenous growth model, the ‘AK model’ where non-convexities are introduced through non-rival inputs. Based on these models and within the dynamic models that rationalize private and public decision making, we have identified three testable hypotheses regarding the aggregate agricultural production technology. They are: (1) increasing returns to scale over all inputs; (2) positive effect of additional units of public inputs on the long-run demand for private capital; and (3) negative impact of public inputs on cost. They are tested using two estimation procedures on two data sets for U.S. agriculture. One, covering the period 1948–1994, developed by USDA, the other, covering the period 1926–1990, from Thirtle et al. Maximum likelihood estimates do not conform to the regularity and behavioral properties of the economic model rendering them unusable for testing these hypotheses. Bayesian estimates, although not totally satisfactory, do not reject the hypotheses after prior imposition of some of the regularity conditions. This supports the notion of an important role for public inputs on the rapid and sustained growth of the sector. We calculate that, on average, one additional dollar spent on public R&D stock reduces private cost by $6.5, implying a return on these public expenses of 190%.

Entrepreneurship,income distribution and economic growth

Traditionally different factors and variables have been considered in the economic growth models. Following Solow’s model, economists considered physical capital and technology during 1950s–1980s. With the introduction of endogenous growth models, new forms of capital were introduced in the production function; human capital, public capital and more recently social capital. However, the consideration of qualitative variables is necessary to improve the economic growth analysis. The improvement of statistical information has favored their introduction in the economic growth models. Recently, “entrepreneurship” concept has been considered in this type of analysis. Entrepreneurship considers the capacity and ability to create new business and production activity. It is an activity not an occupation. Some authors like Schumpeter have included it in their models and they have analysed its effects on economic growth. But it is also necessary to include the role of social climate, that in a schumpterian way it could be represented by income distribution. The main objective of the paper is to analyze the relationship between entrepreneurship, income distribution and economic growth following the ideas developed by Schumpeter and we will contrast them from a empirical analysis using the GEM (Global Entrepreneurship Monitor) data.     

Increasing human and social capital by applying job embeddedness theory

Most modern lives are complicated. When employees feel that their organization values the complexity of their entire lives and tries to do something about making it a little easier for them to balance all the conflicting demands, the employees tend to be more productive and stay with those organizations longer. Job embeddedness captures some of this complexity by measuring both the on-the-job and off-the-job components that most contribute to a person's staying. Research evidence as well as ample anecdotal evidence (discussed here and other places) supports the value of using the job embeddedness framework for developing a world-class retention strategy based on corporate strengths and employee preferences.To execute effectively their corporate strategy, different organizations require different knowledge, skills and abilities from their people. And because of occupational, geographic, demographic or other differences, these people will have needs that are different from other organizations. For that reason, the retention program of the week from international consultants won’t always work. Instead, organizations need to carefully assess the needs/desires of their unique employee base. Then, these organizations need to determine which of these needs/desires they can address in a cost effective fashion (confer more benefits than the cost of the program). Many times this requires an investment that will pay off over a longer term – not just a quarter or even year. Put differently, executives will need to carefully understand the fully loaded costs of turnover (loss of tacit knowledge, reduced customer service, slowed production, lost contracts, lack of internal candidates to lead the organization in the future, etc., in addition to the obvious costs like recruiting, selecting and training new people). Then, these executives need to recognize the expected benefits of various retention practices. Only then can leaders make informed decisions about strategic investments in human and social capital.

Selected bibliography

A number of articles have influenced our thinking about the importance of connecting employee retention strategies to business strategies:

• R. W. Beatty, M. A. Huselid, and C. E. Schneier. “New HR Metrics: Scoring on the Business Scorecard,” Organizational Dynamics, 2003, 32 (2), 107–121.

• Bradach. “Organizational Alignment: The 7-S Model,” Harvard Business Review, 1998.

• J. Pfeffer. “Producing Sustainable Competitive Advantage Through the Effective Management of People,” Academy of Management Executive, 1995 (9), 1–13.

• C. J. Collins, and K. D. Clark. “Strategic Human Resources Practices and Top Management Team Social Networks: An Examination of the Role of HR Practices in Creating Organizational Competitive Advantage,” Academy of Management Journal, 2003, 46, 740–752.

The theoretical development and empirical support for the Unfolding Model of turnover are captured in the following articles:

• T. Lee, and T. Mitchell. “An Alternative Approach: The Unfolding Model of Voluntary Employee Turnover,” Academy of Management Review, 1994, 19, 57–89.

• B. Holtom, T. Mitchell, T. Lee, and E.Inderrieden. “Shocks as Causes of Turnover: What They Are and How Organizations Can Manage Them,” Human Resource Management, 2005, 44(3), 337–352.

The development of job embeddedness theory is captured in the following articles:

• T. Mitchell, B. Holtom, T. Lee, C. Sablynski, and M. Erez. “Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover,” Academy of Management Journal, 2001, 44, 1102–1121.

• T. Mitchell, B. Holtom, and T. Lee. “How To Keep Your Best employees: The Development Of An Effective Retention Policy,” Academy of Management Executive, 2001, 15(4), 96–108.

• B. Holtom, and E. Inderrieden. “Integrating the Unfolding Model and Job Embeddedness To Better Understand Voluntary Turnover,” Journal of Managerial Issues, in press.

• D.G. Allen. “Do Organizational Socialization Tactics Influence Newcomer Embeddedness and Turnover?” Journal of Management, 2006, 32, 237–257.

Executive SummaryEmployee turnover is costly to organizations. Some of the costs are obvious (e.g., recruiting, selecting, and training expenses) and others are not so obvious (e.g., diminished customer service ability, lack of continuity on key projects, and loss of future leadership talent). Understanding the value inherent in attracting and keeping excellent employees is the first step toward investing systematically to build the human and social capital in an organization. The second step is to identify retention practices that align with the organization's strategy and culture. Through extensive research, we have developed a framework for creating this alignment. We call this theory job embeddedness. Across multiple industries, we have found that job embeddedness is a stronger predictor of important organizational outcomes, such as employee attendance, retention and performance than the best, well-known and accepted psychological explanations (e.g., job satisfaction and organizational commitment). The third step is to implement the ideas. Throughout this article we discuss examples from the Fortune 100 Best Companies to Work For and many others to demonstrate how job embeddedness theory can be used to build human and social capital by increasing employee retention.     

The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results

International Entrepreneurship and Management Journal - Although the field of strategic entrepreneurship has received much attention in recent years, the relationship of strategic entrepreneurship...