Resources and bridging: the role of spatial context in rural entrepreneurship

This article contributes to the emerging discussion on the role of context in entrepreneurship as well as the development of theorizing on rural entrepreneurship. It does so by exploring the role of spatial context for rural entrepreneurs. Through a case study of 28 ventures, two modes of spatializing rural entrepreneurial activities are identified in the form of resource endowments and spatial bridging. Additionally, we develop a typology of rural entrepreneurs, which captures hitherto unexplored heterogeneity within this group of entrepreneurs. Spatial context is found to be of considerable significance to the rural entrepreneurial process and hence this study contributes to a micro-level understanding of place-specific entrepreneurial practices and the non-local circulation of value that can enrich local economies.     

Entrepreneurship and Firm Boundaries: The Theory of A Firm

abstract In this paper, we consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed. We start from the premise that while entrepreneurs believe themselves to have superior ideas in one or multiple parts of the value chain, they are characteristically short of cash, and of the ability to convince others to provide it. This premise motivates a simple model in which the entrepreneur has a value‐adding set of ideas for ‘upstream’ and ‘downstream’ parts of a value chain, as well as for the ways to make these two parts of the value chain work better when joined under unitary control. Assuming that the entrepreneur's objective is to maximize her wealth, we observe that even in the presence of transactional risks or other factors that might make integration preferable to specialization, initial scope depends also on relatively unexplored factors such as (a) how severe the entrepreneur's cash constraint is, and (b) how much value the entrepreneur's ideas add at each part of the value chain. Entrepreneurs will focus on the areas that provide the maximum profit yield per available cash – a criterion which implies that scope choices depend on cash availability and the depth of the demand for the new idea along the value chain. We also note that entrepreneurs make money not only from the operating profits of their firms, but also from the appreciation of the assets the firm has accumulated. This consideration can change the optimal choice of the firms’ boundaries, as entrepreneurs must be sensitive to choosing the segment that will enable them to benefit not only in terms of profit, but also in terms of asset appreciation. We propose that, in the entrepreneurial context especially, it is helpful to focus on the multiple considerations affecting the choice of boundaries for ‘a’ firm – the context faced by an individual entrepreneur – rather than on generic considerations affecting ‘the’ (representative) firm. Scope choices reflect the entrepreneur's own theory of ‘how to make money’.     

Negotiating business and family demands within a patriarchal society – the case of women entrepreneurs in the Nepalese context

ABSTRACT

The aim of this paper is to advance our understanding of how women negotiate their business and family demands in a developing country context. The highest cited motivation for women’s pursuit of entrepreneurship has been their need to attend to these demands. Yet, empirically we know little about the negotiating actions taken by, and the business satisfaction of women in the context of both livelihood challenges and patriarchal contexts, despite several scholarly calls for contextualized accounts of women’s entrepreneurship. We explore these issues by employing a qualitative study of 90 women engaged in primarily informal entrepreneurial activities in three Nepalese regions. Our findings highlight three main and interrelated themes – negotiating consent, family resource access and gaining status. These themes allow us to contextualize the process of negotiating business and family demands by highlighting how women legitimize their business activities, respond to family/societal expectations and mobilize support for, and find satisfaction in their business. Overall, our study contributes towards accounts of business–family interface that incorporate the everyday practices of entrepreneurial activities amongst those less privileged in terms of resource access in particular sociocultural contexts.     

Sustainable entrepreneurship,innovation, and business models: Integrative framework and propositions for future research

This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, “someone” who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so‐called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.     

Place in Entrepreneurial Storytelling: A Study of Cultural Entrepreneurship in a Deprived Context

We extend the cultural entrepreneurship perspective by investigating how entrepreneurs in deprived contexts gain legitimacy by leveraging proprietary and public places in their entrepreneurial storytelling. Inspired by the sociology of place, we present a longitudinal study of ten new venture journeys over four years in Kasoa, Ghana. We identify three distinct ways places are used in entrepreneurial narratives: projective significance of place, connective significance of place, and authoritative significance of place. We show how impoverished entrepreneurs construct and communicate places in diverse ways, not only as locations, but also as material and symbolic resources that provide legitimacy for their venturing activities. Drawing from our findings, we generate a model of place-based cultural entrepreneurship and elaborate place as a central resource in cultural entrepreneurship and new venture creation in deprived contexts.     

The cultural embeddedness of professional service purchasing—A comparative study of German and Swedish companies

Research on professional service purchasing generally takes a culturally universalistic approach, implicitly assuming the generalizability of research findings and normative models to different cultural contexts. However, research in related disciplines points to the influence of national culture on managers’ decisions, thereby questioning the culturally universalistic approach. The purpose of this paper is to explore differences in professional service purchasing in different cultural contexts. Based on a survey of large organizations, we analyze how the purchasing process for a specific type of professional services – management consulting services – is organized in two cultural contexts (i.e. Germany and Sweden). The results indicate that organizations in Germany and Sweden differ in the way they approach key aspects of the purchasing process. These differences are discussed in relation to two central cultural dimensions – uncertainty avoidance and masculinity–femininity – in which Germany and Sweden take very different positions. It is proposed that uncertainty avoidance mainly influences the first steps in the purchasing process (specify, select and contract) whereas masculinity–femininity mainly influences the remaining steps (order, expedite and evaluate). The paper contributes to the purchasing and supply management literature by empirically illustrating differences in purchasing practices in different cultural contexts and developing theory-driven propositions for the influence of national culture on the professional service purchasing process.     

Living on the slopes: entrepreneurial preparedness in a context under continuous threat

ABSTRACT

In this paper, we examine how entrepreneurs living in communities under continuous threat prepare themselves to continue with their enterprising activities or engage in new ones after the expected crisis occurs. Most of the crisis literature on disasters and entrepreneurship focuses on aftermath responses, but the antecedents of such entrepreneurial behaviour and its connection to past and future crises remains largely unexplored. Based on a two-stage exploratory study pre and post the Calbuco Volcano eruptions in 2015 and 2016 in Chile, we introduce the notion of entrepreneurial preparedness in a context of continuous threat and elaborate on its four central attributes: anchored reflectiveness, situated experience, breaking through, and reaching out. Subsequently, our work develops a refined understanding of pre and post-disaster entrepreneurship and offers a novel base for theorizing on the relationship between entrepreneurial preparedness in contexts of continuous threat.     

Entrepreneurship and mutuality: social capital in processes and practices

Social capital, which offers the broader theoretical construct to which networks and networking relate, is now recognized as an important influence in entrepreneurship. Broadly understood as resources embedded in networks and accessed through social connections, research has mainly focused on measuring structural, relational and cognitive dimensions of the concept. While useful, these measurements tell us little about how social capital, as a relational artefact and connecting mechanism, actually works in practice. As a social phenomenon which exists between individuals and contextualized through social networks and groups, we draw upon established social theory to offer an enhanced practical understanding of social capital – what it does and how it operates. Drawing on the work of Pierre Bourdieu and Robert Putnam, we contribute to understanding entrepreneurship as a socially situated and influenced practice. From this perspective, our unit of analysis is the context within which entrepreneurs are embedded. We explored the situated narratives and practices of a group of 15 entrepreneurs from ‘Inisgrianan’, a small town in the northwest of Ireland. We adopted a qualitative approach, utilizing an interpretive naturalistic philosophy. Findings show how social capital can enable, and how the mutuality of shared interests allows, encourages and engages entrepreneurs in sharing entrepreneurial expertise.     

Institutional theory and HRM: A new look

The context of HRM is important but undertheorized (Paauwe, 2009) and subsequently underresearched (Jackson, Schuler, & Jiang, 2014). We offer two recent perspectives of institutional theory—institutional logics and institutional work—as theoretical lenses through which scholars can explore the influence of institutional context on HRM and more intriguingly the influence of HRM professionals on their institutional contexts. Though others have introduced institutional theory to HRM scholarship (e.g. Paauwe & Boselie, 2003), we bring a conceptualization of institutional theory that reflects its advances over the last fifteen years, advances highly relevant to HRM scholars. While previous conceptualizations of institutional theory focus on the direct constraint of institutions on HRM, institutional logics emphasizes complexity, multilevel dynamics, and agency. Similarly, institutional work addresses agency at the day-to-day level, exploring how actors create, maintain, and disrupt the institutional contexts in which they are embedded. Directions for HRM research are discussed.     

Struggling with social capital: Pakistani women micro entrepreneurs’ challenges in acquiring resources

Abstract

A crucial aspect of successful venturing is social capital. In contrast to traditional Western-oriented research where social capital is construed positively, we found that in the traditional, patriarchal society of Pakistan, social capital puts high restrictions on women micro entrepreneurs – where social capital prevents or slows venturing efforts. Results also show that although women do get some selective access to resources from family members, they are restricted by limited access to social capital outside of family members. As women entrepreneurs have the potential to play an important role in the development of any society, and especially so in developing countries, based on the insights derived from this qualitative study, we propose suggestions for further research on women micro entrepreneurs in non-Western contexts.     

International entrepreneurship and the small business

The topic of ‘international entrepreneurship’ is becoming increasingly popular with researchers concerned with examining how international and entrepreneurial activities intersect when people in organizations engage in pro-active brokering and risk-taking behaviour in cross-border contexts. Some caution is needed in over-generalizing the meaning and significance of international entrepreneurship – especially in relation to small businesses. Not all entrepreneurial risk-taking, brokering and opportunity-seeking activities lead to internationalization (as the statistics on small business international activities indicate). This might suggest then that the only truly internationally entrepreneurial firms are those that are ‘born global’. However, their entrepreneurial activities are more ‘spatial’, concerned with what can be constructed again in relation to global markets rather than in relation to the local/regional context in which the business is located. For small firms that internationalize a few years after start-up (late starters), processes of international entrepreneurship are different. For ‘later starters’, international entrepreneurship is distinctive in that it is characterized by extending and modifying entrepreneurial understandings and practices that have been socially constructed in relation to the local and regional context in which the small firm is located.     

A configurational approach to understanding gender differences in entrepreneurial activity: a fuzzy set analysis of 40 countries

This paper explores entrepreneurial activity for men and women across 40 countries. Building on research grounded in social cognitive and institutional theories, we propose a configurational approach to explore how effects of different causal conditions are interdependent in explaining gender specific entrepreneurial activity. Using fuzzy-set qualitative comparative analysis, we find that no one causal element is sufficient for promoting entrepreneurial activity. Instead micro-level attributes of entrepreneurial self-efficacy and opportunity recognition in combination with macro-level business environment formal institutions and national culture create configurations of conditions that lead to high levels of entrepreneurial activity amongst men and women. Moreover, the causal factors configure in different ways for male and female entrepreneurs. This study demonstrates the value of using a configurational analytical technique to explore together the micro- and macro- complexities of what drives men and women around the world to engage in entrepreneurial activity.     

Opportunity identification for sustainable entrepreneurship: Exploring the interplay of individual and context level factors in India

Sustainable entrepreneurship is becoming an increasingly established topic within the entrepreneurship literature. The phenomenon of businesses incorporating social and environmental agendas within their core activities has gathered an increasing academic interest. However, few empirical studies have explored the stage of opportunity identification in the sustainable entrepreneurship process in a more systematic manner, even more so in non-Western contexts such as India. We structure our analysis using a framework situated in the conventional entrepreneurship literature and the literature on National Business Systems (NBS). We conduct a qualitative study to explore the motivations of Indian sustainable entrepreneurs in two sectors: sustainable energy and ethical clothing. While we find that the conventional entrepreneurship based framework provides crucial insights to understand opportunity identification within sustainable entrepreneurship, we also observe a number of features unique to sustainable entrepreneurship in the Indian context—including the personal backgrounds of the participants as well as prioritization of motivational factors. Importantly, we find notable within-country variation in the contextual factors that appear to shape motivational dynamics. In the words of one participant, “there are many Indias” rather than one monolithic approach to sustainable entrepreneurship in India.     

Telling their own stories: Māori entrepreneurship in the mainstream screen industry

We examined how factors from Indigenous entrepreneurship research (social capital, cultural capital, self-efficacy) help explain the high level of Māori entrepreneurial performance in the mainstream screen industry. Results, based on ten case studies and a one-year series of structured interviews, extend prior research by showing that these Indigenous entrepreneurs benefit jointly from two forms of capital: cultural and social. We found high levels of both forms to increase the desire for emancipation of cultural and community identity – not just individual identity – through entrepreneurship. Self-efficacy and storytelling helped ameliorate discontinuities across Indigenous and mainstream contexts. Our research sheds new light on how Indigenous ventures can pursue mainstream entrepreneurship while maintaining cultural identity. It also makes several distinct contributions to the Indigenous entrepreneurship literature. First, it provides an integrative theoretic review. Second, it illustrates a culturally appropriate methodology for researching Māori entrepreneurs with implications for other Indigenous communities. Third, it proposes cultural capital and social capital as a two-part framework for explaining Indigenous entrepreneurial action. Fourth, it shows how entrepreneurship can be empowering for Indigenous communities. Finally, our paper demonstrates that entrepreneurship is a promising mechanism for preserving and promoting the cultures of Māori and other Indigenous peoples.     

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.     

Women in the migrant economy. A positional approach to contextualize gendered transnational trajectories

ABSTRACT

Drawing on the life histories of migrant women entrepreneurs in the Netherlands and Spain, this article explores the influence of transnational trajectories on their social positions and business strategies. A translocational positional approach enables us to research the transnational strategies of women entrepreneurs more effectively in addition to examining the changes in social positions and gendered identities between the country of origin and the country of destination. This approach contributes to scholarship on ‘context’ by offering a transnational gendered dimension in relation to the effects of social, spatial and institutional factors. Our findings demonstrate how female migrant entrepreneurs redefine their social status in different contexts by establishing a business and challenge, contest or comply with gender relations in their transnational entrepreneurial journeys.     

Sustainable entrepreneurship and legitimacy building in protected areas: Overcoming distinctive barriers through activism

Sustainable entrepreneurs operating in protected areas face distinctive barriers that place additional emphasis on the need to build legitimacy. To date, how they do this has not been entirely explored. This paper addresses this need through an exploratory study of sustainable entrepreneurs in a transnational protected area. The results indicate that sustainable entrepreneurs in protected areas face barriers that can be broadly classified as cognition spanning, locale and sector-related barriers. The findings highlight that a key way sustainable entrepreneurs overcome these distinctive barriers is by building legitimacy through activism. Activism became instrumental in building legitimacy with varied stakeholders and actors. This is all geared towards overcoming barriers during the sustainable entrepreneurship process. The findings add to existing literature on the role of legitimacy building in sustainable entrepreneurship by detailing the different forms of legitimacy and how they are built through activism. The paper concludes with propositions about the conditions necessary for sustainable entrepreneurs to build legitimacy in fragile socioecological contexts through activism.     

Identity work of science-based entrepreneurs in Finland and in Russia

Abstract

This paper investigates the identity work of science-based entrepreneurs in two very different country contexts: Finland and Russia. Building on the literature investigating role identities, we first analyse the identification of individuals with the roles of a scientist and an entrepreneur; and second, how individuals manage the boundary between these two roles. Methodologically, we take a narrative approach, which regards life stories as identity constructions. Our empirical data consist of 23 biographical interviews with science-based entrepreneurs that are inductively analysed. Our findings show that the Russian informants considered being a scientist a salient part of their self-identification, distanced themselves from the role of an entrepreneur, and set discursive boundaries to segment the two roles. For the Finnish informants, identification with the professional roles as a scientist or as an entrepreneur was less salient for the personal identity as they make a clear distinction between ‘what one does’ and ‘who one is’. They also view the two roles as integrated rather than segmented, and have no significant need to justify the border-crossing between them. Our contribution is in demonstrating how science-based entrepreneurs’ identity work is influenced by importance and meanings attached to different work roles, and how these are contextualised.     

Antecedents of the small firm effect: the role of knowledge spillover and blocked mobility for employee entrepreneurial intentions

Small firms are said to produce more entrepreneurs than larger ones (“small firm effect”). Applying existing theories, we analyze how different management positions influence employee entrepreneurship in small firms. Based on a panel study of 4832 cases, we provide evidence for the fact that small firms indeed produce more entrepreneurs. Moreover, we show that lower management positions of small firm employees are responsible for this small firm effect. We conclude that small firms seem to create an environment in which employees on low management positions strongly benefit from knowledge spillover effects as they are educated necessary skills, knowledge and expertise, and are able to build up networks conducive to entrepreneurship (“knowledge spillover effect”), while not having the multifaceted advancement opportunities as in large companies (“blocked mobility effect”).