Contextualizing theory building in entrepreneurship research

Theory development and testing are central to the advancement of entrepreneurship as a scholarly field. For nearly three decades now, researchers have borrowed popular theories from other disciplines and adapted them to the study of diverse entrepreneurship phenomena. This has enhanced the rigor of research findings. Future studies can achieve greater rigor and relevance by paying more attention to the context of their investigations. Understanding the nature, dynamics, uniqueness and limitations of this context can enrich future studies. This article describes common problems revealed in recent entrepreneurship research when applying existing and new theories to well known vs. emerging and novel phenomena. The article also suggests strategies to enrich creative and constructive theory building.     

Learning outcomes of entrepreneurship education: Entrepreneurship education for knowing,doing, being,and living together

The authors try to identify the learning outcomes of entrepreneurship education at high schools. The statistical population of this research consists of vocational high school students in Tehran, Iran. The findings showed that learning outcomes for knowing are more than the aspects of doing, being, and living together. More specifically, 65 learning outcomes of entrepreneurship education have been identified in four pillars. This study presents a comprehensive framework for the philosophy of entrepreneurship education.     

Islam,entrepreneurship, and embeddedness

This study centers on the premise that entrepreneurship is an embedded process. Although “the entrepreneur” is inherently an “individual,” entrepreneurship can never be fully disembedded from the more general social settings within which any business venture is situated. An Islamic‐based economic discursive framework should be cognizant of the different forms of sociality, spatiality, and community as well as the various norms, codes, and symbols that define society more generally. The work of Karl Polanyi on embeddedness is engaged and juxtaposed with Islam's understanding of the ideal mode of economic discursive practices. Islamic economic models and Polanyi are both critical of the corrosive effects of unbridled capitalism and individualism that ultimately lead to reification and exploitation. The conclusion recommends more small‐N case studies by researchers and entrepreneurial educational materials that emphasize the importance of networks and local embeddedness.     

Trends in the market for entrepreneurship faculty, 1989–1998

The last decade has seen a dramatic rise in the number and status of entrepreneurship programs in schools of business and management. The popularity of entrepreneurship courses has increased dramatically among both graduate and undergraduate students. Alumni and external constituencies of schools of business have generally been supportive of the development of entrepreneurship programs, and in fact in many instances it has been the demands of these constituencies that have led to the creation or expansion of entrepreneurship programs within these schools. The growth in entrepreneurship programs has been fostered by an increase in the popularity of entrepreneurship, an increase in the status accorded entrepreneurs, as well as an increase in the recognition by the business press of the importance of entrepreneurship in the larger economy. Despite the increase in popularity within the field, there has also been considerable resistance from within the faculties of many institutions to the expansion of entrepreneurship programs. Faculty outside the field have been, and many remain, very skeptical about the validity of entrepreneurship as an academic field, the quality and rigor of entrepreneurship research and the need to hire academic faculty to teach and research in the field. The last decade has seen the confluence of these opposing forces.This disparity has created the question of whether the external forces supporting entrepreneurship are overcoming the inertia inherent in academic institutions and succeeding in institutionalizing the study of entrepreneurship within schools of business and management. This study hopes to shed some light on which of these forces is winning by addressing the question of whether the field of entrepreneurship is moving toward or has been institutionalized as part of the curriculum and research within schools of business and management. It also examines the institutionalization of the field by analyzing the change in the number and level of entrepreneurship positions, the quality of the recruiting institutions as well as the number, level and training of entrepreneurship candidates during the years 1989–1998. Data was obtained from the Academy of Management Placement Roster and The Chronicle of Higher Education for the years 1989–1998. Previous entrepreneurship education researchers have examined the number of endowed chairs and professorships, conferences, journals, programs and various centers for entrepreneurial education, however sparse research, if any, has been performed on the trends and characteristics of candidates and positions in the field of entrepreneurship.The results of this study are very encouraging. Both the demand for and the supply of entrepreneurship faculty have increased spectacularly during the last nine years. Between 1989/90 and 1997/98 the number of entrepreneurship positions increased 253% while the number of candidates increased by 94%. During this period the number of positions that list entrepreneurship as the primary field has increased ten-fold from 5 to 50 and the number of candidates that list entrepreneurship as their primary field has increased four-fold from 5 to 20. During the same period the number of secondary and tertiary positions have increased 116% and 78%, respectively, and the number of secondary and tertiary candidates have increased by 67% and 53%. The percentage of entrepreneurship positions listing entrepreneurship as the primary field has increased from 19% in 89/90 to 54% in 1997/98. Overall, the growth in the number of primary entrepreneurship positions is very encouraging.In the end, the results of this study are very encouraging. Both the demand and the supply of entrepreneurship faculty have increased spectacularly during the last nine years. The field has clearly made significant progress toward being institutionalized. However, it is still too soon to conclude that the commitment to entrepreneurship by schools of business and management is irreversible. One clear indication of the tenuous status is that, unlike strategy and international business, there has been no mandate from the American Assembly of Collegiate Schools of Business that entrepreneurship be incorporated into the curriculum of all accredited schools. Entrepreneurship remains an elective subject in most schools and therefore depends on student interest. The field has made great strides during the 1990s, but a couple of hurdles remain.     

Hidden ties in international new venturing: The case of portfolio entrepreneurship

A hitherto neglected phenomenon in international new venturing is portfolio entrepreneurship, which occurs when entrepreneurs found, own, manage and control more than one business at a time, with ownership of the new venture being distinct from that of the existing business ventures. This study introduces the phenomenon of portfolio entrepreneurship in international new venturing through a longitudinal study of a cluster of small and medium enterprises (SMEs) in Tasmania, Australia, where 6 of 11 firms in the cluster were international new ventures (INVs). The pattern of international portfolio entrepreneurship pursued by the Tasmanian entrepreneurs and coupling between firms is described. Key findings include the ability of portfolio entrepreneurs to leverage high-discretion slack resources, positive legitimacy spillovers, and learning effects and experimentation across loosely coupled INVs in the portfolio. The findings also identify dysfunctional elements of portfolio entrepreneurship, and cast doubt over the conventional use of ‘the firm’ as the focal unit of analysis in INV studies. A particular contribution of this study is to remind us of the richness and pluralism inherent in international new venturing.     

Corporate entrepreneurs and privatized firms in russia, ukraine, and belarus

This paper provides a preliminary examination of the development of corporate entrepreneurship in privatized firms in Russia, Belarus, and Ukraine, three countries with a common background as part of the Soviet Union, but with different incentives and constraints on entrepreneurship since the beginning of transition. Using large-scale surveys of newly privatized companies, the paper shows that there are differences in the nature and extent of entrepreneurship in established businesses in the three countries. The paper utilizes representative samples of general directors in 105 privatized Russian enterprises, 100 privatized Ukranian enterprises, and 68 privatized enterprises in Belarus.Evidence is presented that suggests that Russian privatized firms have lower insider stakes, greater outside ownership, less employee voice, and greater managerial power within the firm than is the case in Belarus and Ukraine. The active monitoring of managers by outsiders may be an important aspect of the transformation of Russian firms to efficient, commercially viable entities. In Ukraine and Belarus a lack of outside involvement in corporate governance may lead to managerial opportunism and low incentives to attract outside strategic investors, including foreign partners. Russia appears to be building a stronger platform for the future development and effectiveness of entrepreneurship than is the case in Ukraine and Belarus. The findings provide evidence of the importance of direct involvement and the development of relationships to counteract the shortcomings of the legal infrastructure and financial reporting mechanisms.In general, the findings of the study for Russia show that in the current hostile and rapidly changing environment, entrepreneurial priorities and actions so far have primarily focused on controlling cash flow, seeking new markets, and redefining businesses through retrenchment and restructuring. Although it is, as yet, too early to examine the longer term effects of the changes in entrepreneurial conditions, the paper presents the first large-scale comparative evidence of the indications of a divergence in entrepreneurial development between the three countries. There was a greater incidence of turnover among the senior management team in Russia. Managers in Ukraine and Belarus had more diverse strategic objectives in contrast to those in Russia where managers have behaved in a more realistic fashion by focusing on retrenchment.For academics, the study's findings suggest further research is needed to examine the longer term nature and effects of corporate entrepreneurship, compare entrepreneurship in new start-ups in the three countries, and compare with corporate entrepreneurship elsewhere in emerging markets and the barriers to the development of corporate entrepreneurship. For practitioners and policy makers, the study highlights the need to develop and enforce an appropriate regulatory framework which strengthens the rules of the game under which corporate entrepreneurship operates.     

Antecedents of Ethnic Minority Entrepreneurship in New Zealand: An Intergroup Comparison

This paper traces the antecedents of entrepreneurship across ethnic minority groups as reflected in their different rates of business formation in New Zealand, an ethnically diverse nation. The study contrasts the experiences of the Dutch, Chinese, Indian, and Pacific Peoples, groups who have historically exhibited different levels of entrepreneurship. A grounded theory approach led to a model with four linked embedding constructs—migration, settlement, identity, and business—sufficient to interpret longstanding intergroup differences in business formation rates. The findings give new insight into the nature of ethnic minority embedding and an original substantive theory of the antecedents of ethnic minority entrepreneurship.     

Discriminating “Schumpeterian” from “Austrian” informal investors—an empirical assessment

This study proposes a theoretically informed typology of international informal investors. This means that the Schumpeterian type is contrasted with Austrian informal investors. The governing paradigm in the neoclassical framework is economic equilibrium. However, the creation of disequilibrium is central to Schumpeterian entrepreneurship. This is unlike Austrian entrepreneurship, which regards movement toward economic equilibrium. Hence, Schumpeterian-type investors are perceived to facilitate disequilibrating change, whereas Austrian-type investors promote equilibrating change. Employing a two-group discriminant analysis with robust data from Norway, the findings support the concept that Schumpeterian and Austrian-type investors differ with regard to their selection of investment proposals, monitoring, and, not least, their backgrounds. The data suggest that Schumpeterian-type investors invest more actively, into the “early stage” category of new firms than Austrian-type investors. Schumpeterian-type investors are more highly educated than their counterparts and monitor their firms more actively by financial reports and stockholder meetings. By contrast, Austrian-type investors appear to have more experience than their Schumpeterian counterparts. The implications of these findings are discussed.     

Typology of diaspora entrepreneurship: Case studies in Uzbekistan

The characteristics and importance of transnational diasporans as entrepreneurs for the economy and international business of emerging countries have remained underexplored. This paper addresses types of diaspora entrepreneurship (DE) theoretically and empirically in the context of Uzbekistan. Diaspora entrepreneurship is often seen as necessity-driven and less opportunity-driven. So far, emerging Central-Asian countries are considered countries of origin (COOs) of diasporans, but not yet as countries wherein diasporans want to invest and work, that is, countries of residence (CORs). Uzbekistan is also a post-Soviet economy with limited tradition on private entrepreneurship. Thus, the paper asks what makes people become entrepreneurs in emerging countries such as Uzbekistan when they have alternative opportunities in developed countries. It explores key drivers and socio-cultural reasons for the entry and establishment decision and introduces a typology of DE. This multiple case study presents implications and findings on culturally different entrepreneurs who have decided to enter Uzbek business elucidating their motivations and role in transition economies.     

Analyzing the determinants of entrepreneurship in European cities

This study investigated the determinants of business creation as a measure of entrepreneurship in European cities. It examined supply- and demand-side elements, actual and equilibrium rates of entrepreneurship, institutions and culture. These components were characterized using a dataset consisting of 21 indicators drawn from 184 cities in 20 European countries during the years 1999–2010. The study found that city size, self-employment, and tertiary education have a significant and positive impact on the number of new businesses registered. The implications of these findings are discussed in view of the European Commission’s Small Business Act, which provides guidelines for the conception and implementation of entrepreneurship policies in the European Union. This paper’s main contribution lies in the differentiation of factors that are context-specific (e.g., city-size) and others that can be influenced by policy (e.g., tertiary education).     

Affects of alliance entrepreneurship on common vision,alliance capability and alliance performance

The underlying theoretical argument of our study concerns that value from alliance knowledge may be created not only through exploitation and augmentation of the existing organizational knowledge base, but more through entrepreneurial actions in accessing and integrating key strategic resources that exist in the alliance relationship. In this view, our study investigates the role of alliance entrepreneurship with its effects on common vision, alliance capability and alliance performance in penetrating into the foreign markets. This study develops and empirically tests a model that specifically focuses on (1) to what extent alliance entrepreneurship relates to developing a common vision between alliance and organizational knowledge, (2) to what extent alliance entrepreneurship relates to the alliance capability and alliance performance respectively, and (3) to what extent barriers to alliance knowledge acquisition and learning orientation moderate the relationship between alliance entrepreneurship and alliance capability.Based on a sample of 100 ICT firms, findings of our study reveal a positive and significant affect of alliance entrepreneurship on common vision, alliance capability and alliance performance. However, more significant support is received for the relation between alliance entrepreneurship and alliance capability through moderating interaction effects of barriers to alliance knowledge acquisition and firm level learning orientation.     

Macro-level determinants of formal entrepreneurship versus informal entrepreneurship

Based on the eclectic theory of entrepreneurship, this article analyzes macro-level determinants of national rates of formal versus informal entrepreneurship. Our evaluation of the factors identified in this theory reveals a set of empirically-testable, higher-order determinants: economic opportunities, quality of governance, macro-level resources and abilities, performance-based culture and socially-supportive culture. The results of our analysis obtained through the PLS (partial least squares) approach to structural equation modeling contribute to the entrepreneurship literature by providing an empirically-supported model that shows how formal and informal entrepreneurship are driven differently. This model clarifies the conflicting findings in previous research about the effects of socioeconomic, institutional, and cultural factors on entrepreneurship rates across countries. Finally, by showing the effect of each determinant on formal and informal entrepreneurship, this study has important implications for policymakers as well as businesses.     

Predictors and financial outcomes of corporate entrepreneurship: An exploratory study

Today, there is considerable scholarly and managerial interest in corporate entrepreneurship; that is, those activities that enhance a company's ability to innovate, take risk, and seize opportunities in its markets. Corporate entrepreneurship centers on creating new business by penetrating new markets, pursuing new business, or both.Despite the growing recognition and use of corporate entrepreneurship, little empirical research has been done on its antecedents and potential association with company financial performance. To fill this gap in the literature, this study proposes a model that identifies potential environmental, strategic, and organizational factors that may spur or stifle corporate entrepreneurship. The model also highlights the potential associations between corporate entrepreneurship and corporate financial performance.Building on the existing literature, the study advances five hypotheses that operationalize the model. The hypotheses are tested using data from 119 of the Fortune 500 industrial firms, covering the period 1986 to 1989. This exploratory study's results indicate that: (1) environmental dynamism, hostility, and heterogeneity (multiplicity and complexity of environmental components) intensify corporate entrepreneurship; (2) growth-oriented strategies are associated with increased corporate entrepreneurship, whereas a strategy of stability is not conducive to corporate entrepreneurship; (3) the scanning, formal communication, and integration components of formal organizational structure are positively related to corporate entrepreneurship—increased differentiation and extensive controls stifle corporate entrepreneurship; (4) clearly defined organizational values, whether relating to competitors or employees, are positively associated with corporate entrepreneurship; and (5) corporate entrepreneurship activities are associated with company financial performance and reduced systematic risk.     

Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning,inspiration and resources

Drawing on the theory of planned behaviour, this study tests the effect of entrepreneurship programmes on the entrepreneurial attitudes and intentions of science and engineering students. This is necessary in order to confirm (or disconfirm) conventional wisdom that entrepreneurship education increases the intention to start a business. The results show that the programmes raise some attitudes and the overall entrepreneurial intention and that inspiration (a construct with an emotional element) is the programmes' most influential benefit. The findings contribute to the theories of planned behaviour and education and have wider implications for a theory of entrepreneurial emotions and also for the practice of teaching entrepreneurship.     

Gender differences in entrepreneurship and intrapreneurship: an empirical analysis

This study examines the gender gap in start-up activities to determine whether it is family status or employment status that is responsible for the observed gender gap. We consider independent entrepreneurship and intrapreneurship as two different start-up modes: While intrapreneurship is conducted within an established organization, independent entrepreneurship is solely an independent activity. This study focuses on this fundamental distinction to identify the parameters of our empirical model. Using nationally representative US data, we find that the effects of being a part-time worker on the likelihood of becoming an independent entrepreneur differ across genders. The obtained results suggest similar findings for intrapreneurship, but in opposite directions. Furthermore, our decomposition results suggest that for both entrepreneurship and intrapreneurship, the gender differences in the employment-related variables are more significant than those in the family-related variables in affecting the observed gender gap negatively (for entrepreneurship) or positively (for intrapreneurship).     

Integrating customer orientation, corporate entrepreneurship, and learning orientation in organizations-in-transition: an empirical study

The paper addresses the issue of interrelationships between market orientation, corporate entrepreneurship, and learning orientation in the context of emerging economies. These three constructs have drawn an increasing level of interest in both marketing and management fields as organizations face challenges in a volatile environment. With a national sample of state-owned enterprises in China, the present study simultaneously tests potential relations between these structural constructs and their relationships with the organizational outcome that is reflected with marketing program dynamism. The findings of this study indicate that: (1) sampled state-owned enterprises demonstrate a higher level of changes in organizational outcome resulted from a stronger customer orientation, corporate entrepreneurship, or learning orientation; (2) learning orientation fully or partially mediates the impact of customer orientation and corporate entrepreneurship on outcome; (3) state-owned enterprises with foreign partnership have a higher level of customer orientation, entrepreneurship, and learning orientation; and (4) state-owned enterprises in the service sector have a higher level of customer orientation.     

Gender,entrepreneurial characteristics,and success: Evidence from Ethiopia

Africa‐based research on gender and entrepreneurship is very limited. This study compares the characteristics and relative successes of men and women entrepreneurs in Ethiopia with a view of isolating the unique hurdles encountered by female entrepreneurs. While both genders in this sample were pulled, rather than pushed, toward entrepreneurship, women were more influenced by family factors. With regard to personality traits, men entrepreneurs in this study were generally more confident in their ability to succeed, whereas women exhibited higher fear of failure and external locus of control. Women entrepreneurs also reported lower business and entrepreneurial skills and relied more on government funding. Furthermore, male entrepreneurs outperformed females in terms of sales, employment growth, and profitability. The study identifies areas in which the skills and competencies of Ethiopian women entrepreneurs can be developed through targeted training programs to enable them to more clearly recognize entrepreneurial opportunities and achieve business growth. The findings of this study and the concrete suggestions it offers to strengthen the success of Ethiopian women entrepreneurs may be relevant to other African countries as well.     

The Influence of Personality Traits and Demographic Factors on Social Entrepreneurship Start Up Intentions

The sheer impact of the recent global financial turmoil and scandals (such as Enron and WorldCom) has demonstrated that unbridled commercial entrepreneurs who are allowed to pursue their short-term opportunities regardless of the consequences has led to a massive depreciation of the wealth of nations, social livelihood and environmental degradation. This article suggests that the time has come for entrepreneurs to adopt a more integrative view of business that blends economic, social and environmental values. Social entrepreneurs present such a proposition through their deep commitment towards the social vision, appreciation of sustainable practices, innovativeness, ability to build social networks and also generate viable financial returns. It could be expected that social entrepreneurs often possess certain distinct personality characteristics which define their behaviours/actions. Personality traits are partly developed by innate nurturing, socialization and education. These tacit traits are also formed values/beliefs held and play an important role in driving social entrepreneurial decision making. Thus, personality traits may influence the intentions and the manner in which the individual acts. We hold that if social entrepreneurship is to be effective and impactful, business and management education can facilitate the development of these critical personality traits. Thus, this study primes at determining the personality traits that influence social entrepreneurs’ start-up intentions. It also reinforces the findings that personality traits do influence entrepreneurship in general. This study examines the influence of the Big Five personality traits on social entrepreneurship dimensions. The findings reveal that agreeableness positively influences all dimensions of social entrepreneurship, whereas openness exerts a positive influence on social vision, innovation and financial returns. Methodologically, this study develops valid and reliable scales for social entrepreneurship and verifies the adopted Big Five personality measure of Schmit et al. (Pers Psychol 53:153–193, 2000) using the five-point Likert scale. The implication of this study is that element of appreciation of social responsibility, sustainability and character development needs to be integrated within the business education curriculum to support social entrepreneurs in realizing genuine value and impact to the causes and communities they serve. Future business leaders also need to be equipped with entrepreneurship skills, while exuding independent and reflective thinking in the pursuit life-long learning. The originality of this study lies in its focus on personality traits on social rather than commercial entrepreneurship. It is hoped that the findings will trigger a paradigm shift towards greater social entrepreneurship through education by nurturing sustainable development values in future business graduates.     

Kathleen Eisenhardt: recipient of the 2012 Global Award for Entrepreneurship Research

This article reviews the academic contributions of the 2012 receiver of the Global Award for Entrepreneurship Research, Professor Kathleen Eisenhardt, Stanford Warren Ascherman Professor of Management Science and Engineering at Stanford University. The Global Award consists of 100,000 euro and a statuette by the internationally renowned Swedish sculptor Carl Milles. Eisenhardt’s work focuses on strategy, strategic decision making, and innovation in rapidly changing and highly competitive markets. Her work in the entrepreneurship field centers on strategy and organization, especially in technology-based companies, what she refers to as “high-velocity industries”. Her main empirical contribution to the entrepreneurship field is her work on ‘corporate entrepreneurship’—how existing organizations can remain innovative, including through new venture creation. More generally, Kathleen Eisenhardt’s research has bridged the two fields of entrepreneurship research and organization science.     

The Influence of Funding Approaches,Growth Expectations,and Industry Gender Distribution on High‐Growth Women Entrepreneurs

This study examines three key aspects of entrepreneurship associated with women business owners and their ability to achieve high growth: debt versus equity financing, growth expectations, and industry gender distribution. We present a number of theoretical lenses spanning disciplines such as gender studies, entrepreneurship, social psychology, and finance. Using longitudinal data from U.S. startups over an eight‐year period, our research reveals a number of interesting findings. We find that, proportionally, high‐growth women entrepreneurs are more likely to finance their growth with personal and business equity funding. Additionally, women‐owned firms in “feminine industries” are more likely to achieve high growth than women‐owned firms in “non‐feminine industries.”