CHALLENGES TO THEORY DEVELOPMENT IN ENTREPRENEURSHIP RESEARCH*

Why do some new ventures succeed while others fail? What is the essence of entrepreneurship? Who is most likely to become a successful entrepreneur and why? How do entrepreneurs make decisions? What market, regulatory, and organizational environments foster the most successful entrepreneurial activities? Entrepreneurship research is plagued by these and other fundamental unanswered questions, for which there does not exist a cohesive explanatory, predictive, or normative theory. In this article we identify major challenges for entrepreneurship theory development, and offer insights into promising directions for future research. Our conclusion suggests that it may be too ambitious to expect a complete and robust theory due to the interdisciplinary nature of entrepreneurship. However, we show that by integrating perspectives and by applying analytic, empirical and experimental tools from a range of fields, some of the fundamental questions can be answered.     

Management turnover expectations: a variable to explain company readiness to engage in continuous management training

What makes companies give their support to Continuous Management Training (CMT) and why, on occasion, do they block its progress? If a company thinks its managers might leave in the near future, would there be reasons for it to provide continuous training of these professionals? Do companies interpret all likely resignations in the same way? We attempt to provide an answer to these questions, by analysing the behaviour of companies' vis-à-vis continuous management training in terms of their expectations of the appropriability of the benefits that stem from such training. Appropriability is in turn assessed with regard to firms' expectations that their managers will leave their organisation without it having had the chance to recover the outlay invested in training. The analysis of business behaviour also demands an understanding of how these turnover expectations are produced and, more specifically, of the variables on which turnover expectations depend or might depend. The empirical study we carried out with over 300 Spanish companies revealed that company projections for voluntary turnover of management employees are positively connected with earlier experiences of turnover, with markets prone to change, and with business risk situations, and negatively associated with developed social management networks, satisfied managers and their degree of specificity in relation to the company. Nevertheless, no significant relationship was observed between expected turnover and the intensity of continuous management training. In general, companies make their management training investment decisions independently of the overall turnover expectations they might have. Different causes might exist for this absence of a relationship, centred in particular on the need for management training and an associated sense of urgency, which takes precedence over the risk of not recovering the investment when the business decision is taken, and on the nature of the management turnover perceived by the company, which is more complex than a strictly economic one.     

Voting on Pensions: A Survey

Abstract. The paper presents a nonexhaustive survey of the literature designed to explain emergence, size and political sustainability of pay‐as‐you‐go pension systems. It proposes a simple framework of analysis (a small, open, two overlapping generation economy model), around which some variants are displayed. Dictatorship of the median voter is assumed. The text is organized to answer the following questions: (i) Do political equilibria with PAYG pension schemes exist? (ii) Why do they emerge? (iii) What are the conditions for the participation constraint of the pension game to be verified?, and finally, (iv) What is the size of the pension system chosen by the median voter and how is this size influenced by an exogenous (e.g. demographic) shock?     

Introduction

Leadership is under review and open for criticism in ways not seen for some time. Where is leadership when we need it, we ask? Where are the leaders who can solve our problems? Moreover, change is the new constant, and we need leaders who are prepared to embrace change and ambiguity and help followers deal with change. Sometimes it feels like we are in permanent whitewater. Where are the leaders who can deal with the ever‐changing landscape and help us move to a positive future? Many of them are among us. They are the up‐and‐coming emerging leaders of Generations X and Y. This symposium focuses on these leaders of the future—the emerging leaders among us. What challenges do they face? What kind of leaders do they want to be? How do we best prepare them? The five articles that follow present a variety of views for our consideration, and the authors hope to start a boarder conversation about the next generation of leaders and their leadership challenges. Mhatre and Conger stress that authentic leadership principles are needed in workplaces now and in the future. They remind us that organizations are often composed of individuals born during different times, circumstances,and situations, thereby creating challenges for leaders in those organizations. Current research related to Gens X and Y, cited by the authors, highlights some of the generational differences and preferences. The authors see that the differences could create a “fertile ground for intraorganizational conflict, especially differences in how to manage and work within changing organizational climates.” One potential solution, according to Mhatre and Conger, can be found in the four components of authentic leadership principles: self‐awareness, internalized moral perspective, balanced processing, and relational transparency. If authentic leadership is in place, Gens X and Y can lead authentically, thereby facilitating sustainable and positive work environments. The authors predict positive results for organizations when authentic leadership is in place. Carucci and Epperson also focus on cross‐generational relationships and voice their concern with the negative consequences of labeling various age groups as Millennials, Boomers, Xers, Yers—labels that emphasize the divide. What we need, they argue, is less polarization and more connections. The article explores what it means for leaders of multigenerations to thrive together in partnership. They discuss the “elusive contest between the legacy of incumbent leaders and the potential of emerging leaders and ask us to consider mutual vulnerability as common ground.” They also summarize research on mentoring that looks at the gap between the numbers of emerging leaders who are mentored compared with the large numbers who desire mentors and ongoing relationships. The research follows up on earlier work on this topic explored in their books Leadership Divided and Bridging the Leadership Divide. Their article provides a personal case study demonstrating how generations can come together in partnership, thereby strengthening their organizations as well as the individuals involved. Perucci follows up on some of the themes highlighted by Carucci and Epperson as well as Mhatre and Conger and focuses on the way Millennials (Gen Y) are shaping organizations in the 21st century. Perucci reminds us that as we consider the implications of multiple generations working within the same organization, we must emphasize the crosscultural dimensions of intragenerational leadership. Globalization is reshaping leadership not only at the vertical level (multiple generations working side by side), but also horizontally (communication and technology reshaping the way Millennials interact across national boundaries). He suggests that just as leadership involves leaders, followers, and shared goals, successful leadership also requires an awareness of leading across cultures. He argues that effective leaders will be those who learn to work together “across boundaries in order to solve complex global problems.” Penney's article, “Voices of the Future: Leadership for the 21st Century,” focuses on both Generations X and Y (primarily X) and explores how those emerging leaders see leadership in the future and what kind of leaders they want to be. What leadership qualities/behaviors do they see as important? Themes of collaboration and inclusiveness are important to these emerging leaders, and they place high values on trust and integrity. Because they value inclusiveness, they work more easily across racial, ethnic, and gender differences and lines than did previous generations. The article also discusses what organizations need to do to attract and retain Generations X and Y. More flexible work arrangements are important as is having business organizations committed to corporate social responsibility and green initiatives. The findings come from the recent book Next Generation Leadership: Insights from Emerging Leaders (Penney & Neilson 2010). Tulgan and his colleagues at RainmakerThinking, Inc., have been conducting interviews with young people in the workplace for two decades. His article has a theme similar to Penney's in that he discusses ways to develop new leaders, primarily Generation Y. He addresses issues such as, how do we help them step into leadership roles successfully? He also addresses the question of why some of them are reluctant to take on supervisory roles. The article offers specific suggestions about ways to guide young professionals to prepare them for assuming leadership roles. He suggests that senior leaders should give frequent feedback to the top performers in Gen Y rather than leaving them on their own. He argues that too often we ignore high performers as we focus time and effort on the not‐so‐successful ones. According to Tulgan, more generous reward systems and hospitable work conditions are needed to retain high performers. In addition, he wants senior leaders to do more to help Gen Yers establish their credibility when they are given roles of increased responsibility. Conclusions There is a sense of optimism in play as you read these articles. Although there are differences found between Generations X and Y, overall the next generation of leaders also share some commonalities. They are more collaborative and inclusive than previous generations. And these emerging leaders are bringing a fresh approach to leadership and moving us away from the leader as “hero” or all‐knowing source of power and influence. Their desire for collaboration can help bridge the generation gap between Boomers and young professionals. Each brings particular strengths to their organizations, so as they work together, stronger institutions can be the result. Integrity is also important to emerging leaders, and authentic leadership behaviors hold much promise for strengthening our organizations. These emerging leaders can work well across cultures and are more comfortable with inclusion and diversity than those of previous generations. The authors provide several suggestions for working with and retaining young professionals so that their leadership skills are strengthened. Emerging leaders need support and honest feedback; they want reward systems that differentiate; they request flexible work arrangements. They also want to see corporate social responsibility in place in the business world. Emerging leaders of Generations X and Y are ready to assume leadership roles, but many do not want to lead as they have been led. We must do all we can as senior leaders, as academics, and as colleagues to prepare them for these responsibilities. As we pass the torch to a new generation of leaders, let's be certain they are well equipped for the task and ready to lead.     

Leaders' Networking Behaviours in a Time of Crisis: A Qualitative Study on the Frontline against COVID-19

What do leaders do when they interact with followers and stakeholders in a time of crisis? What networking behaviours do leaders manifest in such a context of emergency? We answer these questions through qualitative research and cluster analysis conducted on a sample of leaders involved in community management in the most affected region in northern Italy during the three key phases of the COVID-19 pandemic. Our findings span a period of 18-months and show that leaders display a behavioural repertoire that includes six networking actions. Grouped together, these actions identify three clusters of leaders: Churners, who engage mainly in network generation and network termination; Divergent leaders, who manifest high levels of network conflict and re-construal; and Sense-makers, who are high in network deepening and teleology. Our research contributes to unveil the idiographic micro-foundations of networking behaviour during organizational jolts.     

On the dynamic selection of mechanisms for provision of public projects

How do individuals' spatial decisions affect the institutions for public goods provision over time? This paper describes a dynamic model in which the provision mechanism for a public project is itself the object of locational choice of individuals. Individuals in an ongoing society must choose between a location with a Majority Rule mechanism and one with a Voluntary Contribution mechanism. Each mechanism determines a funding decision for a local public project which is repeated over time. Generations of individuals asynchronously supercede their ‘parents’, creating an entry/exit process that allows individuals with possibly different beliefs to enter society. A self-confirming equilibrium (SCE) belief process describes an evolution of beliefs in this society consistent with a self-confirming equilibrium (Fudenberg and Levine, 1993) of the repeated location/provision game. It is shown that the process with belief mutation as new individuals enter society results in a globally absorbing state in which the Majority Rule mechanism is the unique survivor of the two.     

Shadow Banking,Chinese Style

Shadow banks are broadly defined as entities which conduct credit intermediation outside the formal banking system. Poorly regulated, engaging in opaque forms of intermediation, deeply interconnected with the official banking system, and operating with implicit government guarantees, they pose a major source of systemic risk. Yet shadow banks provide an important service by channeling credit to excluded investors, and can complement the formal banking sector. What explains the rapid proliferation of shadow banks in China? How large are they and what forms do they take? What types of risks do they pose to the financial system? And how best can China utilise the services of shadow banks while at the same time ensuring that they do not create systemic risks for the financial system?     

Locke's Contract: would People consent to It?

Abstract . Examination of Locke's theory political obligation suggests some of the difficulties which beset any consent theory. Stress is placed on the need for the state of nature as a real alternative to civil society, if Locke is to maintain that people have consented. It is shown that Locke has precluded a decision to remain in the state of nature and, therefore, people have not consented. This conclusion inspires a reconstruction of Locke's theory wherein people consent hypothetically: they would consent to legitimate government, if they had the opportunity to found government anew. What would they consent to? What are the criteria of legitimate government? The provisions of the Lockeian contract set out and found wanting People, as Locke sees them and living under conditions which he describes, would not consent to his contract.     

The Worldwide Movement in Private Universities: Revolutionary Growth in Post-Secondary Higher Education

The end of the Cold War, which resulted from the collapse of communism and the spread of free market ideas in the former Soviet Union, China, and nations in Eastern Europe, has brought about many dramatic and momentous changes on the world scene. One remarkable development not widely recognized outside specialized academic circles is the emergence of new institutions of higher learning in the private sector of previously command economies and also in many developing countries that had been wedded to a culture of socialism for decades. The “privatization” of higher education is by all accounts a global phenomenon. Very few systematic studies of these new trends in private post‐secondary education exist to date, although the impact of this development could be far‐reaching not only for higher education but also for the social and economic development of many societies in the world. In this paper we attempt to analyze the phenomenon of new private universities in non‐Western nations, focusing on the developing world in general, and Asia in particular. What missions have these institutions chosen? Which models are these institutions following? What challenges do they face? How are they coping with their relationship to existing public universities? How are they dealing with tuition and budgetary issues? What sources of funding are they tapping into? How are they dealing with issues of equity, excellence, and access? In the composition of their faculty, student body, and curriculum, are these institutions sufficiently international? How are the funding institutions and universities in the West helping these fledgling universities? Are these trends expected to accelerate in the future? We attempt to answer these questions within the context of a few case studies that reflect the breadth and diversity of this revolutionary growth in post‐secondary higher education.     

Uncovering competitive and institutional drivers of HRM practices in multinational corporations

Current international human resource management (IHRM) literature focusing on multinational corporations (MNCs) presents evidence of both similarities and differences in the HR practices adopted in different global locations. However, the drivers behind this duality require more detailed investigation. This article focuses on exploring why MNCs position themselves within global markets as they do, exploring how extant theory can help explain the drivers behind both global and national HR practices. Based on a worldwide sample of in‐depth interview‐based case studies of well‐known MNCs, we explore the ways in which different firms react to both institutional and competitive pressures in selecting their approach to HRM. The findings uncover a differentiation between external global competitive isomorphic pressures, external national institutional isomorphic pressures, and internal processes of strategic choice and competitive differentiation. It is suggested that MNCs face all three drivers of HRM simultaneously, leading to different patterns of practice adoption, adaptation and innovation.     

Briefing Paper: What Economists can learn from Game Theory

Game theory is a branch of mathematics which analyses interdependent decision-making. It attempts to explain how decision-makers might take into account the likely response of others in formulating their own decisions. It has long been applied to microeconomics especially to the theory of the firm under oligopoly where the firm, in devising its pricing and production strategy, will take into account the likely reactions of other firms within the industry. More recently it has been appreciated that many situations in macroeconomics can be analysed in terms of game theory. For example, if one country introduces import controls, how will others react? If one country tries to control inflation by adopting a tough monetary policy, or tries to reflate, what will other countries do? How will exchange rate speculators respond to the government's announcement that it will not intervene in currency markets? Will they believe the government or will they adopt actions which will eventually force the government to intervene? How will markets respond if the government changes its macro-economic strategy? In some cases the “players” are the government and the business community, in other cases one government may be playing against another. In this Briefing Paper we introduce some ideas and results from game theory and show how they can be applied to macroeonomics as well as microeconomics.     

Co‐Authorship in Management and Organizational Studies: An Empirical and Network Analysis*

In recent decades there has been growing interest in the nature and scale of scientific collaboration. Studies into co‐authorship have taken two different approaches. The first one attempts to analyse the reasons why authors collaborate and the consequences of such decision ( Laband and Tollison, 2000 ). The second approach is based on the idea that co‐authorship creates a social network of researchers ( Barabási et al., 2002 ; Moody, 2004 ; Newman, 2001 ). In this study we have carried out an exploratory analysis of co‐authorships in the field of management from the two aforementioned approaches. The results obtained show a growing tendency of the co‐authored papers in the field of management, similar to what can be observed in other disciplines. Our study analyses some of the underpinning factors, which have been highlighted in the literature, explaining this tendency. Thus, the progressive quantitative character of research and the influence of the collaboration on the articles' impact are enhanced. The network analysis permits the exploration of the peculiarities of the management in comparison with other fields of knowledge, as well as the existing linkages between the most central and prominent authors within this discipline.     

SUBJECTIVITY, SOPHISTRY AND SYMBOLISM IN MANAGEMENT SCIENCE

Three common criticisms of management science are highlighted: first, the tendency of researchers to subjectively bias substantive approaches, methodologies and research findings; second, the failure to establish within the discipline a core of consensually validated knowledge or commonly accepted body of truth about the nature of management; and three, the inability of management theory to provide tools and techniques of greater pragmatic relevance to corporate decision-makers. Though a basis for these characterizations of management science is confirmed, their significance is reinterpreted. Instead of being regarded as pathologies, they are viewed as inevitable, and not necessarily dysfunctional, concomitants of the emergence and development of management science as a field of intellectual activity possessing reality and significance in its own right.     

Everyday Lives in Vertical Neighbourhoods: Exploring Bangladeshi Residential Spaces in Toronto's Inner Suburbs

In the Toronto Census Metropolitan Area (CMA), almost a third of the total housing stock is comprised of high‐rise apartment buildings. Not only do most new immigrants reside in these structures upon arrival, they often continue living here for a prolonged period, for a variety of interrelated economic and psychological reasons. It is therefore important to ask: How do these vertical structures affect the life worlds of the residents? What functions do these spaces perform? How do immigrants develop attachments to these spaces, and how do they make them their own? By drawing upon the experiences of 30 Bangladeshi immigrant households in Toronto's inner suburbs, I demonstrate that even though these vertical stacks are not conducive to frequent social interaction by design, the residents variously transform such functional spaces into unique ‘Bengali’ neighbourhoods that are filled with ambivalent feelings of hope and despair, imaginations of the future, becoming a place they can call home away from home.     

Migrants Encounter Migrants in the City: the Changing Context of ‘Home’ for Second‐Generation Greek‐American Return Migrants

This article looks at the ‘return’ migration of second‐generation Greek Americans to their parents’ homeland, Greece. It is based on interviews with, and written accounts supplied by, 40 participants in the research, all now living in the Athens region. The article addresses two main sets of questions. First, why do they relocate to Greece, what are they looking for, and how do they cope with difficulties and disappointments? Second, and more specifically, how do they react to the fact that Greece is no longer a homogenous hellenistic society, but has become in recent years a de facto multicultural one due to the presence of hundreds of thousands of immigrant workers and their families? Three hypotheses are proposed for this inter‐migrant encounter: returnees, shocked by the ‘new immigration’, view it negatively as upsetting the ‘pure Greek’ homeland they had hoped to find; returnees are more sympathetic because of their own families’ history as immigrants in multicultural America; and returnees differentiate themselves as ‘good’ migrants from Greece’s immigrants who are constructed as ‘bad’ migrants. Evidence from the migrants’ testimonies is found to support all three hypotheses; however, there is more support for the second one. In addition, a fourth outcome was voiced: that of discrimination against Greek Americans who are made to feel, in certain circumstances, outsiders by the ‘true’ Greeks. Suggestions are made for further comparative research.     

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.     

Health Effects of Air Pollution: A Statistical Review

We critically review and compare epidemiological designs and statistical approaches to estimate associations between air pollution and health. More specifically, we aim to address the following questions:

• 1 Which epidemiological designs and statistical methods are available to estimate associations between air pollution and health?
• 2 What are the recent methodological advances in the estimation of the health effects of air pollution in time series studies?
• 3 What are the the main methodological challenges and future research opportunities relevant to regulatory policy?

In question 1, we identify strengths and limitations of time series, cohort, case‐crossover and panel sampling designs. In question 2, we focus on time series studies and we review statistical methods for: 1) combining information across multiple locations to estimate overall air pollution effects; 2) estimating the health effects of air pollution taking into account of model uncertainties; 3) investigating the consequences of exposure measurement error in the estimation of the health effects of air pollution; and 4) estimating air pollution‐health exposure‐response curves. Here, we also discuss the extent to which these statistical contributions have addressed key substantive questions. In question 3, within a set of policy‐relevant‐questions, we identify research opportunities and point out current data limitations.     

How do high-involvement work processes influence employee outcomes? An examination of the mediating roles of skill utilisation and intrinsic motivation

How do high-involvement work processes influence employee outcomes? In this paper, we use Vandenberg et al.'s [Vandenberg, R. J., Richardson, H. A., & Eastman, L. J. (1999). The impact of high involvement work processes on organisational effectiveness: A second order latent variable approach. Group and Organisational Management, 24, 300–339] elaboration of Lawler's [Lawler, E. E. (1986). High-involvement management: Participative strategies for improving organizational performance. San Francisco, CA: Jossey-Bass] model to test direct links and to explore skill utilisation and intrinsic motivation as mediators. Survey data were collected from a large New Zealand organisation providing distribution services and results were analysed through structural equation modelling. While there are important direct effects, the results demonstrate that both skill utilisation and intrinsic motivation transmit high-involvement processes into valuable outcomes for employees. The benefits to employees of such processes are direct but also lie in the way they make the work itself more motivating and enable them to deploy and grow their skills. This implies that forms of work organisation and supervision that offer workers greater opportunity for discretion, and involvement in the decisions that concern them, create the conditions for greater learning and, in turn, contribute to their well-being.     

The private equity business model and associated strategies for HRM: evidence and implications?

Are private equity firms significant actors in the UK market for corporate control? Do they represent a new organizational form befitting a new business model? What are the direct and indirect pressures on management that flow from the diffusion of this business model and its associated organizational form? In terms of human resource management does acquisition by private equity have a significant or negligible effect? This paper looks at the development and diffusion of private equity and the ‘take private’ private equity business model (PEBM) and the effects of these on the management of HR. In addition to this the paper evaluates the PEBM within comparative institutional approaches to international business and HRM.     

The Sociology of Knowledge as a Tool for Research Into the History of Economic Thought

A bstract . Hill and Rouse's formulation of Mannheim's framework for the sociology of knowledge as a means of examining the history of economic thought is rejected although it is held that they render an important service to economics by arguing the need for employment of the sociology of knowledge as a research tool. They have not appropriated Mannheim's categories authentically and they apply them in an overly simplified and undialectical manner. Even Mannheim's authentic formulation of the sociology of knowledge suffered limitations which more recent work enables us to overcome. What is believed to be a superior sociology of knowledge framework for investigating the evolution of economic thought is constructed by joining the Berger-Luckmann model of legitimation with Habermas's philosophical anthropology. Increasingly economists are recognizing that their discipline is in a state of crisis. The crucial issue is how we can better understand the sociological nature of economic thought—its social functioning—to enable us to formulate our own economic theory so as to maximize human welfare.