On the generalized principal-agent problem: a comment

Faynzilberg and Kumar (Rev Econ Design 5(1):23–58, 2000) show that the usual Mirrlees–Rogerson conditions to validate the first-order approach in moral hazard agency models are no longer valid in the generalized agency case. They consider the risk-averse agent case and identify one set of technological conditions, where the production technology satisfies the linear distribution function condition in actions and types, that validates ex-ante the first-order approach. With the usefulness of their decomposition approach, we show that the first-order approach in the generalized agency case can be checked ex-ante under the Mirrlees–Rogerson conditions when the agent is risk-neutral but there is a binding limited liability constraint on the agent’s wage.      

On the generalized principal-agent problem: Decomposition and existence results

This paper addresses the class of generalized agency problems: situations in which adverse selection and moral hazard are jointly present. We present a decomposition of the principal's optimization problem under the first-order approach that sheds light on the interactions between the two types of private information, and also significantly improves tractability. We use the decomposition to (1) provide examples of closed form solutions of the optimal contract, and (2) analyze the existence of optimal contracts. We also show that the first-order approach is valid in generalized agency problems if the production technology satisfies the linear distribution function condition (LDFC) in actions and types. For more general production technologies the Mirrlees-Rogerson sufficient conditions need to be extended to include restrictions on the form of the optimal contract. Received: 11 August 1997 / 26 September 1999     

The entrepreneurial university: Examining the underlying academic tensions

With increasing pressure on universities to play a role in the national innovation process, this exploratory case study investigates how the concept of the entrepreneurial university (Etzkowitz et al., 2000) is manifesting itself within the context of a comprehensive European university setting. Semi-structured interviews with key professors spanning the diverse disciplines of the university were conducted to uncover attitudes towards the entrepreneurial third mission and the underlying complexities of developing a unified entrepreneurial character within the institution. The case study identifies the emergence of an increasing schizophrenic divide between disciplines within the university. This attitudinal split has the potential to cause widespread disharmony amongst the academic community and impede progress towards achievement of the third mission. The case findings reveal that a strong top-down push towards the ideal of the entrepreneurial university would actually reduce overall entrepreneurial activity across the university. This case study finds support for Burgelman's (1983) understanding of the entrepreneurial process, and identifies a number of key barriers to realising the entrepreneurial ideal. Ultimately, the case study calls into question the assertion of Etzkowitz et al. (2000) that the concept of the entrepreneurial university is a global phenomenon with an isomorphic development path.     

The principal-agent problem with smooth ambiguity

We study a principal-agent model in which the (effort-dependent) realisation of output levels is ambiguous, and the agent is ambiguity averse (while the principal is ambiguity neutral). We show that introducing ambiguity aversion will lower profits if the action that the principal wants to implement is the most ambiguous one, while they may increase otherwise. Regarding the design of the optimal contract, we show that under ambiguity aversion the optimal incentive scheme may not be monotone even if a natural generalization of the monotone likelihood ratio property is satisfied, and illustrate how this fact could affect the design of contracts in an applied economic context. We also find that the individual rationality constraint need not bind in the presence of ambiguity aversion unless preferences satisfy constant absolute ambiguity aversion.     

From green entrepreneurial intentions to green entrepreneurial behaviors: the role of university entrepreneurial support and external institutional support

International Entrepreneurship and Management Journal - Green entrepreneurship is playing an increasing role in ecological environmental protection. Based on existing literature, this study aims to...     

Regional variations in entrepreneurial cognitions: Start-up intentions of university students in Spain

Empirical research has recently paid considerable attention to the role of environmental factors in explaining regional variations in entrepreneurial activity. However, cognitive models have not usually included these factors in their analyses. Therefore, the main objective of this study is to identify some of the environmental cognitive elements that may explain regional differences in start-up intentions. Thus, an entrepreneurial intention model is developed, theoretically based on the planned behaviour approach, institutional economic theory and social capital theory. The empirical analysis is carried out using structural equation techniques over a sample of 549 final year university students from two Spanish regions (Catalonia and Andalusia). Results confirm that valuation of entrepreneurship in each region helps explain regional differences in entrepreneurial intentions. As expected, social valuation of the entrepreneur was higher in the more developed region (Catalonia), positively affecting perceived subjective norms and behavioural control. In Andalusia, the influence of perceived valuation of the entrepreneur in the closer environment was more important, affecting attitude towards the behaviour and subjective norms. These results explain some of the differences in the pool of potential entrepreneurs in each region. They also justify the need by public-policy decision-makers to promote more positive entrepreneurial values in relatively backward regions.     

The contribution of yoga to the entrepreneurial potential of university students: a SEM approach

The literature suggests that all entrepreneurs share certain psychological and cognitive characteristics. Yoga is currently experiencing a surge in popularity due to both the physical and psychological benefits gained by yogi (practitioners of yoga). Irrespective of its more philosophical dimension, changes attributable to yoga have been identified in individuals’ psychological and behavioural patterns. It is in this context that this study analyses the characteristics associated both with entrepreneurs and yogis, seeking to specifically understand the respective personal attributes or the psychological and cognitive predispositions of both groups. The results of this study demonstrate that students who do engage in yoga show a propensity towards or strengthening of the psychological and cognitive attributes that are commonly associated with an entrepreneurial profile. Thus the study suggests that if entrepreneurial behaviour is a priority, then yoga should be integrated as a compulsory subject into general education from the primary school onwards.     

A university budget problem: a priority-based approach

The budgeting problem in a university environment is considered, using the Analytic Hierarchy Process (AHP) developed by Saaty. This approach allows the priorization of all relevant budget considerations both from the benefit to the school's future evolution and from the cost of operation viewpoints. This approach allows using the derived priority structure to arrive at a budget allocation. In addition to the systematic manner by which this budget is determined, the approach also provides an “audit trail” that is very important in explaining the specific allocation.     

Influence of institutional environment on entrepreneurial intention: a comparative study of two countries university students

Institutional environment influences the perceptions of desirability and feasibility, society’s social and cultural environment, such as beliefs, values and attitudes, conditions behaviour and decisions made by individuals. This research evaluates the influence of institutional environment on entrepreneurial intention using a comparative analysis of different attitudes among university students in two countries: Portugal and Spain. In particular, this study aims to examine the perceptions of desirability, feasibility and intention toward the creation of one’s own business and how that variables influence the entrepreneurial intention as compared these two different institutional contexts. Results revealed difference among attitudes toward entrepreneurship in both countries. With respect to the perception of feasibility, the majority of students in Extremadura (Spain) consider that it is easier to create a business in nowadays than it was several decades ago. However, from the students of Beira Interior (Portugal) consider that it is more difficult. Furthermore, in Extremadura, the entrepreneurial intention is higher than in Beira Interior.     

Developing an entrepreneurial typology: the roles of entrepreneurial alertness and attributional style

This study develops an entrepreneurial typology employing two dimensions, high versus low entrepreneurial alertness and internal versus external attributional styles that helps illustrate why entrepreneurs start new businesses. The resulting 2 × 2 typology of entrepreneurs identifies four entrepreneur types based on these two dimensions: the true believer, clueless, practical, and reluctant. Using a representative sample of 315 nascent entrepreneurs from the Panel Study of Entrepreneurial Dynamics, we found that some types differed across three key entrepreneurial characteristics, need for achievement, risk-taking propensity, and commitment, thereby providing some preliminary empirical support for the typology’s validity. We conclude by discussing future research avenues.     

Feeling the risks: effects of the development of emotional competences with outdoor training on the entrepreneurial intent of university students

Nowadays, one of the roles of universities is the promotion of entrepreneurship, particularly, among students. Research on entrepreneurship at an individual level of analysis focuses on the personal characteristics and the entrepreneurial attitude that stimulate its development, studying the factors affecting that some individuals discover and exploit opportunities by creating a company, while others do not. Yet, it has been proved that psychological characteristics of individuals affect their entrepreneurial intention. Additionally, experiential learning techniques, such as outdoor training have been showed as useful to change emotional competences. However, there is not any research on how changes in emotional competencies influence individual entrepreneurial intent in university students, particularly after participating in an outdoor training experience. This paper analyses quantitative and qualitative data of last-year university students who participated in an outdoor training experience, measuring its emotional competences and entrepreneurial orientation, before and after that experience. It contributes to the understanding on how changes in emotional competences affect the entrepreneurial intent of university students. Results indicate that changes in emotional competences, such as self-management, social awareness, and relationship management affect entrepreneurial orientation, particularly innovation and risk, affecting, thus, entrepreneurial intention.     

Unveiling the role of entrepreneurial knowledge and cognition as antecedents of entrepreneurial intention: a meta-analytic study

Although entrepreneurial intention has been regarded as one of the most important drivers of creativity, innovation, and performance in firms, a comprehensive framework that integrates the relevant influential factors has yet to be developed. Drawing on the theory of planned behavior and the social cognitive career theory, this study investigates the critical antecedents, mediators, and moderators of entrepreneurial intention. A meta-analytic approach is employed to validate the proposed hypotheses, and 89 primary studies with a total sample size of 51,919 are analyzed. The results indicate the existence of differences in the manner in which entrepreneurial knowledge influences cognitive antecedents in the individuals who participate in new ventures. Furthermore, personal attitude and self-efficacy play a vital role in predicting entrepreneurial intention. Demographic characteristics (such as age, gender, and education background) significantly moderate the relationship between cognitive antecedents and entrepreneurial intention, indicating that men tend to adopt more entrepreneurial behaviors than women, that older individuals with more positive attitudes have a higher propensity to start ventures than younger ones, and that those with higher education attainment tend to have lower self-employment. These findings offer several recommendations. They could provide valuable references for further academic work, which should aim to extend and validate them. The findings are also very beneficial for professional experts tasked with the design of effective programs for enhancing entrepreneurial behavior.

     

Marketing in SMEs: the role of entrepreneurial sensemaking

Marketing literature has emphasized the factors hampering marketing planning and strategizing in small firms, in particular resource scarcity, lack of specialized structures and competences. Recent streams of literature in entrepreneurial marketing have nonetheless shown that small firms do engage in peculiar marketing strategies and activities that do not necessarily reflect codified processes observed in large organizations. Within this line of research, the article aims at contributing to extant theory in entrepreneurial marketing placing under scrutiny the generative moments of marketing strategies in small firms. Through the integration of literature in entrepreneurial marketing and in entrepreneurship and through the analysis of four case studies, the article proposes a conceptual framework that emphasizes the centrality of entrepreneurial sensemaking in small and medium-sized enterprises?? marketing strategies. We posit that entrepreneurs are engaged in the construction of interpretive frameworks that, when explicated and made accessible to consumers and stakeholders, legitimate novel business ideas and logics. These interpretive frameworks structure the content and processes of marketing activities. Theoretically, the article aims at contributing to the debate on marketing in small businesses shedding light on the processes underlying the formation of marketing strategies. Propositions are offered to guide future empirical research based on the proposed conceptual framework.     

Entrepreneurial self-efficacy and entrepreneurial intention: the Turkish case

This paper examines the relationship of entrepreneurial self-efficacy (ESE) and entrepreneurial intention in the Turkish culture. Sub-dimensions of ESE were investigated and the level of entrepreneurial intention was discussed. The sample comprised of 245 undergraduate students of a university in Turkey. Results suggest that students have a high intention to be entrepreneurs. ESE has a strong effect on entrepreneurial intention, but sub-dimensions of ESE have different impacts. The results of the study were compared with a previously published study conducted in the USA and Korea by a group of researchers. In this comparison, the national cultural context was considered as an influential factor in entrepreneurship.     

The entrepreneurial process: an integrated model

In this study, a model for examining the process of how a person becomes an entrepreneur was developed by integrating planned behavior theory (PBT) with motivation-opportunity-ability (MOA) theory. The model posits that motivation, opportunity, and ability affect entrepreneurial intentions through personal attitude, subjective norms, and perceived behavioral control. A sample of 258 valid questionnaires was collected from entrepreneurial training-course participants in Taiwan. Based on this sample, a structural-equation analysis reveals several interesting results. First, personal attitude and perceived behavior control have a direct effect on entrepreneurial intentions. Second, subjective norms indirectly affect entrepreneurial intentions through personal attitude and perceived behavior control. Third, motivation affects entrepreneurial intentions through personal attitude and perceived behavioral control. Fourth, ability exhibits a directly positive association with entrepreneurial intentions, and indirectly affects entrepreneurial intentions through perceived behavioral control. Fifth, subjective norms affect entrepreneurial intentions through personal attitude and perceived behavioral control. These findings suggest that our model provides more information than those offered by PBT or MOA in understanding the process of becoming an entrepreneur.     

Culture and entrepreneurial orientation: a multi-country study

Entrepreneurial orientation (EO) has been proven as an essential attribute of high performing firms, and the role of culture has been highlighted for generating robust EO. The purpose of this study is to investigate the role of culture by identifying differences among the selected nations in terms of EO dimensions. This is an empirical study based on the data collected from university students in the U.S., Korea, Fiji, India, and Malaysia representing nations with significantly different cultural contexts. The result showed significant differences among the nations in most EO dimensions. This implies that customized education approaches based on unique cultural context are needed for developing EO among college students.     

Gender and entrepreneurial orientation: a multi-country study

The purpose of this comparative study is to investigate the role of gender and culture in entrepreneurial orientation (EO) among students in the selected nations. EO dimensions are important variables in the study of organizational performance. We adopted Lumpkin and Dess’ EO dimensions. We statistically analyzed the collected data from 389 university students in the US (96), Korea (114), Fiji (80), and Malaysia (99). The results showed significant differences in most EO dimensions between genders and among the nations. Thus, it is important that customized approaches based on gender and unique cultural context are needed for developing EO among college students.     

The entrepreneurial motivation in academia: a multidimensional construct

In this paper we propose a model to analyse the motivation of academic entrepreneurs that comprises six dimensions: personal, relating to the entrepreneurial opportunity, to scientific knowledge, to the availability of resources, to the incubator organization, and to the social environment. The model is tested based on information from a survey administered to 152 Spanish academic entrepreneurs. Our results show that entrepreneurial opportunity is not part of the entrepreneurial motivation, but is of the utmost importance to academic entrepreneurs. Also, we find the scientific knowledge is the main driver of entrepreneurial activity in the academia.     

Collision density: driving growth in urban entrepreneurial ecosystems

The growth of entrepreneurial ecosystems is becoming increasingly dynamic. We introduce the concept of collision density, defined as the potential frequency of interdisciplinary interactions, to explain this phenomenon. We develop hypotheses about the impact of collision density on the growth of entrepreneurial ecosystems. This impact is hypothesized to be amplified by the presence of angel financing. We find support for our hypotheses in panel data from 89 urban entrepreneurial ecosystems of 92,229 investments between 2007 and 2014. We conclude with discussions of the the implications for research and practice.