Habitual entrepreneurs: Possible cases of entrepreneurship addiction?

We examine the underlying psychological processes that may motivate habitual entrepreneurs to engage in entrepreneurship repeatedly. By drawing on the psychology literature on behavioral addictions, such as workaholism and Internet use, we develop a framework that defines the symptomatology of what we identify as a “behavioral addiction to entrepreneurship.” Through interviews with two habitual entrepreneurs, we demonstrate how these addiction symptoms manifest in the entrepreneurial context. We also demonstrate how psychological, emotional, and physiological aspects of the entrepreneurial experience reinforce a behavioral addiction to entrepreneurship. Our theorizing offers insights into the psychological origins of repeated engagement in venture creation activities and yields insights into possible “dark side” of entrepreneurship outcomes.     

Broadening the concept of international entrepreneurship: ‘Consumers as International Entrepreneurs’

We integrate theories from international business, entrepreneurship, innovation, marketing and network economics to develop a four-part typology of ‘consumers as international entrepreneurs’. This broadens the concept of international entrepreneurship and complements the firm-level focus customary in research on international new ventures and entrepreneurs within those ventures. We develop our arguments in the context of the new economy and discuss areas for investigation in this emerging area of inquiry.     

Diana: a symbol of women entrepreneurs’ hunt for knowledge,money, and the rewards of entrepreneurship

This article discusses the questions and issues that prompted the founding of the Diana Project, a multi-university research program aimed at identifying factors that support and enable high growth in women-led ventures. Despite the fact that women business owners comprise a significant portion of the economy, women face challenges in acquiring the resources needed to expand their businesses. This article details both the myths and realities associated with women’s entrepreneurship in their quest for growth. In particular, we examine the strategies that women entrepreneurs use to position their firms for growth, especially those strategies related to growth capital. Our results show that women seeking venture capital (VC) have degrees, graduate degrees, and experience that should not preclude them from obtaining financing. We also found that even though women-led businesses are frequently clustered in industries less attractive to financiers, women seeking equity funding are in the appropriate industries. Further, women spend a considerable amount of time using both formal and informal networks in their search for capital and in seeking capital. Because of the importance of the VC industry as a provider of growth capital and its reliance on its network for investment referrals, we also examined the participation and role of women as decision-makers in industry. Women’s participation in the VC industry has not kept pace with industry growth, and women have exited the industry at a faster rate than men, thus creating a significant barrier for women entrepreneurs in that it is less likely that their networks will overlap with the financial supplier networks, despite any effort they may expend networking and seeking capital.

Domestic market context and international entrepreneurs’ relationship portfolios

The importance of relationships to international entrepreneurs’ internationalization is well recognized, but we still know little concerning how entrepreneurs find, develop and use different types of relationships for their internationalization. In a study based on international entrepreneurship and network theories, we examine how having or not having a domestic market affects the relationship portfolios developed by born global software entrepreneurs. We find it profoundly influences the personal relationship strength they seek in new international relationships, and their activeness towards developing new relationships that are embedded in foreign markets. Further, the analytical model we develop shows how and why the presence of a domestic market influences international entrepreneurs’ portfolios of relationships.     

The effects of subsidiary’s leadership and entrepreneurship on international marketing knowledge transfer and new product development

This study investigates the role of a strong subsidiary leadership and entrepreneurial culture in the promotion of marketing knowledge inflows. We further examine their consequences on the subsidiary’s ability to develop new products when moderated by the tacitness of knowledge. The data were collected from 202 Portuguese subsidiaries of multinational corporations and were analyzed using partial least squares structural equation modelling to test the hypotheses. The results indicate that subsidiaries’ strong leadership support and entrepreneurial culture are fundamental mechanisms that foster marketing knowledge inflows from both the headquarters and peer subsidiaries. Moreover, marketing knowledge inflows enhance the focal subsidiary’s innovation abilities. We also find that tacit knowledge exerts contradictory moderating effects on the transfers of marketing knowledge, carrying distinct implications for a subsidiary’s knowledge management. The results expand our understanding of the effectiveness of transferring marketing knowledge among multinational corporations’ (MNCs) subsidiaries.     

How financing and information drive international corporate entrepreneurs’ innovations

Journal of International Entrepreneurship - This research combines the literature on social entrepreneurship and international corporate entrepreneurship to determine the relevance financial...     

Varieties of entrepreneurship: exploring the institutional foundations of different entrepreneurship types through ‘Varieties-of-Capitalism’ arguments

While entrepreneurship researchers agree that institutions ‘matter’ for entrepreneurship, they also have a rather encompassing understanding of institutions as almost any external factor that influences entrepreneurship. Ultimately, this literature thus comes up with a long list of institutional factors that may explain entrepreneurial differences between countries. But which institutions are most influential? How do these institutions relate to different types of entrepreneurship? And to what extent are institutions complementary to each other in the way they sustain different entrepreneurship types? The literature on ‘Varieties-of-Capitalism’ (VoC) offers a parsimonious theoretical framework to address these questions. Based on the VoC literature, we theoretically derive a consistent set of institutional indicators that can explain differences in entrepreneurship types between countries. Based on principal component and cluster analyses, we illustrate how 21 Western developed economies cluster around four distinct institutional settings. Furthermore, we use simple OLS regressions to show how these institutional constellations are related to different types of entrepreneurship. We conclude that four different ‘Varieties of Entrepreneurship’ can be identified across the Western world. The main implication of our findings is that a ‘perfect’ institutional constellation, equally facilitating different types of entrepreneurship, does not exist. Policy-makers seeking to stimulate entrepreneurship are thus faced with the trade-off of targeting policy reforms to that entrepreneurship type they intend to promote—at the expense of other types of entrepreneurship and the broader societal consequences such reforms will have.     

Parents’ performance in entrepreneurship as a “double-edged sword” for the intergenerational transmission of entrepreneurship

We investigate how perceived parents’ performance in entrepreneurship (PPE) affects the entrepreneurial career intentions of offspring. We argue that while perceived PPE enhances offspring’s perceived entrepreneurial desirability and feasibility because of exposure mechanisms, it inhibits the translation of both desirability and feasibility perceptions into entrepreneurial career intentions due to upward social comparison mechanisms. Thus, perceived PPE acts as a double-edged sword for the intergenerational transmission of entrepreneurship. Our predictions are tested and confirmed on a sample of 21,895 individuals from 33 countries. This study advances the literature on intergenerational transmission of entrepreneurship by providing a foundation for understanding the social psychological conditions necessary for such transmission to occur.     

Health and cosmetics: Investigating consumers’ values for buying organic personal care products

In investigating consumers’ intentions to re-purchase organic personal care products (PCP), this study extends the theory of planned behaviour by including perceived value dimensions as the antecedents of attitude in the model. The findings revealed that most of the hypothesised relationships linking the consumer perceived value constructs (namely, health, safety, hedonic and environmental) with attitude towards the rebuying of organic PCP, were supported. Also, better product knowledge about organic PCP would lead to more positive attitudes towards re-purchasing the product. In contrast, social value was not important in predicting attitude. Similarly, the influence of subjective norm on rebuying intention was not supported. In terms of ranking of importance with regards to prediction of re-purchasing intention, attitude was the most important predictor followed by perceived behavioural control, product knowledge, hedonic value, environmental value and safety value.     

Business leaders’ personal values,organisational culture and market orientation

In a world where competitive advantages based on technology, physical assets and large advertising budgets are fungible, business leaders’ personal values as an alternative or complementary influence on decision-making and market orientation have an intuitive appeal. Research findings based on data collected from 370 business leaders of independent indigenous companies in China suggest that business leaders with different sets of personal values create and develop different types of organisational culture. Leaders with openness to change values form an adhocracy culture, while leaders expressing conservation values promote a hierarchy culture. Different organisational cultures have different influences on market orientation. The hypothesised relationships between self-enhancement leaders and market culture and between self-transcendence leaders and clan culture were not supported. Finally, the article discusses the theoretical contribution of the study, managerial implications and suggestions for future research.     

The private financial gains to entrepreneurship: Is it a good use of public money to encourage individuals to become entrepreneurs?

Recent evidence comparing earnings from entrepreneurship versus wage earning shows that, after allowing for obvious observable differences, most entrepreneurs in most developed countries earn less than similar wage-earning employees. Does this mean that the decision to become an entrepreneur should be discouraged? The answer depends in part on whether we believe that entrepreneurs report their income truthfully or not. Adjusting for what is considered to be underreporting by entrepreneurs lifts entrepreneurial earnings by between 10 and 40 %, reversing the fortunes of the entrepreneur such that they appear to be earning much more than their counterparts in a wage-earning job. If this adjustment should prove to be appropriate, then there is no obvious reason to increase the incentive for individuals to become entrepreneurs (such as with tax breaks or direct start-up subsidies) in developed countries, and there is reason, instead, to discuss decreasing these subsidies.     

Understanding the relationships between online entrepreneurs’ personal innovativeness,risk taking,and satisfaction: Comparison of pure-play and click-and-mortar

The purpose of this study is to investigate the effects of personal innovativeness and risk taking on online entrepreneurs’ satisfaction. Two types of online entrepreneurs (pure-play and click-and-mortar) are compared and contrasted. Specifically, our study investigates the effect of personal innovativeness and risk-taking propensity on the satisfaction of online entrepreneurs, and compares the similarities and differences among varying types of online entrepreneurs. A survey of online entrepreneurs conducted in Taiwan, a country characterized as good for small and medium enterprises entrepreneurship and as having substantial e-commerce development, indicates that personal general innovativeness has a significant positive effect on personal information technology innovativeness (the entrepreneur’s level of innovation regarding information technology), entrepreneurial satisfaction, and life satisfaction. Entrepreneurs’ life satisfaction also determined by their degrees of entrepreneurial satisfaction. Finally, risk-taking propensity significantly influences entrepreneurial satisfaction for pure-play entrepreneurs only. The results can be referenced by other countries in general, and Chinese regions in particular.     

The effect of human capital, social capital, and perceptual values on nascent entrepreneurs�� export intentions

This study investigates the influence of human capital, social capital, and cognition on nascent entrepreneurs' export intentions. The results indicate that while human capital and social capital influence the level of intended export, cognitive characteristics, such as self-efficacy and risk aversion, do not seem to influence entrepreneurs' intended level of export. The study makes three original contributions to international entrepreneurship research. The first one is the focus on “Real” Born Globals, i.e. entrepreneurs who express export intentions in the prefounding phase. The second is the focus on the individual-level factors rather than firm-level factors that explain export. Finally, the effect of experience is investigated from a path-dependency perspective rather than a “the-more-the-better” perspective. Our study suggests that it may be productive for researchers to look further into the concept of intention, as entrepreneurs' decision to internationalize presupposes a conscious intention of carrying out the action. Thus, the factors influencing the decision to internationalize may have been present prior to the founding of the venture.     

It’s personal: The emotional dimension of psychic distance perception in intercultural knowledge transfer

Psychic distance (PD) is a perceived obstacle to information flows in knowledge transfer between individuals in different national markets. However, the impact of individuals’ subjective perceptions of macro-level distance factors disrupting these flows has been undertheorized. Prior research has conceptualized PD as a geospatial concept – symmetric, continuous and stable over time. Using appraisal theory and a qualitative study of a Chinese multinational, we analyse individual-level psychic distance stimuli. We examine how perceived psychic distance is impacted in the appraisal of personal concerns, triggering salient emotions in the process of individual’s cross-border interactions. Our key contribution is to trace and explain how individual-level psychic distance is created in intercultural knowledge transfer. We theorize that it is created by a psychological mechanism involving emotionally charged processes of individuals coping with concerns arising from emotional encounter. We find that conventional macro-level psychic distance is moderated by the emotions of individuals.     

The ineffectiveness of entrepreneurship policy: is policy formulation to blame?

Entrepreneurship policy has been criticised for its lack of effectiveness. Some scholars, such as Scott Shane in this journal, have argued that it is ‘bad’ public policy. But this simply begs the question why the legislative process should generate bad policy? To answer this question this study examines the UK’s enterprise policy process in the 2009–2010 period. It suggests that a key factor for the ineffectiveness of policy is how it is formulated. This stage in the policy process is seldom visible to those outside of government departments and has been largely ignored by prior research. The application of institutional theory provides a detailed theoretical understanding of the actors and the process by which enterprise policy is formulated. We find that by opening up the ‘black box’ of enterprise policy formulation, the process is dominated by powerful actors who govern the process with their interests.     

The community dynamics of entrepreneurship: The birth of the american film industry, 1895–1929

This paper provides insight for practitioners by exploring the collective process of entrepreneurship in the context of the formation of new industries. In contrast to the popular notions of entrepreneurship, with their emphasis on individual traits, we argue that successful entrepreneurship is often not solely the result of solitary individuals acting in isolation. In many respects, entrepreneurs exist as part of larger collectives. First and foremost, there is the population of organizations engaging in activities similar to those of the entrepreneurial firm, which constitute a social system that can affect entrepreneurial success. In addition, there is also a community of populations of organizations characterized by interdependence of outcomes. Individual entrepreneurs may be more successful in the venturing process if they recognize some of the ways in which their success may depend on the actions of entrepreneurs throughout this community. Thus, we urge practitioners and theorists alike to include a community perspective in their approach to entrepreneurship. We also suggest that one way of conceptualizing the community of relevance might be in terms of populations of organizations that constitute the value chain. For example, in the early film industry a simple value chain with three functions—production, distribution, and exhibition—is a convenient heuristic for considering what populations of organizations might be relevant. As we show in our case study of that industry, a community model offers insights into the collective nature of entrepreneurship and the emergence of new industries.Our basic thesis is that the role of entrepreneurship in the creation of new industries can be conceptualized in terms of the dynamics of a community of organizational populations. At least three implications of this view may be important for practitioners. First, the kind of widespread and fundamental economic and social change that has often been linked with entrepreneurship requires a variety of behaviors. While most definitions of entrepreneurship have recognized that entrepreneurship requires the introduction of innovation, they have tended to ignore the importance of behaviors that subsequently support that innovation. To encompass these important behaviors, we believe that a broad definition of entrepreneurial behaviors is justified. To capture this, the framework of entrepreneurial behaviors that we develop includes the variety of behaviors that are important to the success of a collective process of entrepreneurship. We believe that recognition of a variety of different behaviors that are important to the success of the entrepreneurial process can help practicing entrepreneurs to understand more fully the complex dynamics of new industry creation. In terms of our framework, the range of behaviors of potential importance to entrepreneurship includes all of the following: creating a firm that innovates, creating a new business that imitates the practices of others, innovating within an existing business, and imitating by creating change in an existing business. In addition, we recognize that the kinds of innovative change that support entrepreneurship in the context of new industry creation are not narrowly technological; other kinds of product and service changes as well as administrative innovations may also be relevant.Second, entrepreneurship in one part of the community often creates the opportunity for entrepreneurial activity elsewhere in the community. For example, the founding of movie palaces did not begin until feature length films appeared. The challenge for entrepreneurs is to recognize these opportunities and act on them. Third, and related, the long-term success of entrepreneurial behaviors in one population of the community frequently requires that supportive entrepreneurial behaviors occur in other populations in the community. For example, the success of feature length films was hastened by the development of distribution organizations to replace traveling shows and localized markets. Their success was also hastened by the movement away from nickelodeons towards larger, more comfortable exhibition outlets, such as theaters and show palaces. When the interdependence among populations in the community is stated this way, another challenge to entrepreneurs becomes clear: the facilitation and encouragement of supportive behaviors in other populations.We are not the first to propose that the community is important, but we contribute to this idea by showing in a specific context how various types of behaviors interact and ultimately promote entrepreneurship throughout the community. Our contribution for practitioners is twofold. We would urge practitioners to consider the variety of behaviors necessary to create, reinforce, and maintain fundamental and widespread change. Further, we would suggest that practitioners consider how activities in a broad community of organizations can set the stage for entrepreneurship and have a high impact on its ultimate success or failure. Thus, we would suggest that practitioners who seek to innovate should search broadly for opportunities and understand the importance of relations with businesses elsewhere in the community. The success of their entrepreneurial efforts may depend on the occurrence of supportive entrepreneurial changes in those businesses as well. Their ability to do this will be enhanced by a broad understanding of entrepreneurial behaviors and sensitivity to the opportunities that their entrepreneurial behaviors may create for others.     

International entrepreneurial culture—Toward a comprehensive opportunity-based operationalization of international entrepreneurship

Despite the abundance of international entrepreneurship studies, there is a need to develop valid measures of the international entrepreneurship construct. Based on prior conceptual studies, we contribute to the literature by advancing a scale of the international entrepreneurial culture (IEC) that considers opportunity-based behavior; and, aims to capture the overarching context of international entrepreneurship. We followed established scale development practices and conducted a research on UK and US medium-sized firms. Our proposed six-dimensional operationalization of IEC, which sufficiently matches the initial conceptualization, consists of international entrepreneurial orientation; international market orientation; international motivation; international learning orientation; international networking orientation with competitors; and, international networking orientation with non-competitors. The main implication from this study is that international entrepreneurship scholars can use in future research these six dimensions of the encompassing IEC context rather than a confined international entrepreneurship construct.     

Expatriates’ international opportunity recognition and innovativeness: The role of metacognitive and cognitive cultural intelligence

International opportunity recognition has become increasingly important in both the international business and international entrepreneurship fields. While previous international entrepreneurship research has suggested a wide variety of innovation-inducing factors, it has neglected the role of cross-cultural competences and the expatriate as a potential actor. Building on the experiential learning theory and a model of opportunity recognition, we argue how and why metacognitive and cognitive cultural intelligence are important cross-cultural competences that stimulate and enable expatriates to discover international opportunities and be innovative. We use a mixed method approach to analyze differences in the innovativeness of expatriates.     

The benefits and implementation of performance transparency: The why and how of letting your customers ‘see through’ your business

While some organizations swear by the benefits of transparency and are eager to learn and implement transparency practices, many managers are still reluctant or even afraid to use them. Our research reveals that only a few innovative companies have taken steps to leverage a potentially useful form of transparency: the provision of accessible and objective information to customers (e.g., sharing unbiased benchmark data, publishing unfiltered customer comments, or providing candid product reviews that may praise but also criticize the company’s products). Our study also shows that many companies remain wary and view greater calls for transparency as a challenge to be managed rather than an opportunity to be traded upon. This is partly due to limited research into the performance benefits of giving customers access to objective information, and lack of practical guidelines on how to actually implement it. This article addresses these shortcomings. First, we investigate whether performance transparency leads to customer outcomes that can be profitable for an organization and, second, we analyze the characteristics of successful transparency initiatives in a wide range of industries. Our research shows that customers exhibit more trust and are willing to pay a premium to deal with transparent businesses. Also, it uncovers seven effective strategies to leverage transparency. This article provides convincing empirical evidence for the benefits of performance transparency and the ways in which management may implement it successfully.