Regulatory focus theory and the entrepreneurial process

Regulatory focus theory delineates how people engage in self-regulation, the process of bringing oneself into alignment with one's standards and goals. At any given point in time, people may engage in self-regulation with a promotion focus or a prevention focus. When promotion-focused, people's growth and advancement needs motivate them to try to bring themselves into alignment with their ideal selves, thereby heightening the salience of potential gains to be attained (felt presence of positive outcomes). When prevention-focused, people's security and safety needs prompt them to attempt to bring themselves into alignment with their ought selves, thereby increasing the salience of potential losses to be avoided (felt absence of negative outcomes). For certain aspects of the entrepreneurial process (e.g., generating ideas with the potential to be successful), greater promotion focus is necessary. For other aspects of the entrepreneurial process (e.g., doing the “due diligence” when screening ideas), greater prevention focus is necessary. In addition to providing a framework for future research on entrepreneurship, regulatory focus theory offers some informed speculations about the level and nature of entrepreneurship that may be expected in the aftermath of the September 11 terrorist attacks.     

Implementation intentions in the entrepreneurial process: concept,empirical findings,and research agenda

Prior studies find sizable gaps between entrepreneurial intentions and subsequent actions. We extend models of entrepreneurial intentions by drawing on action phase theory to better understand how entrepreneurial intentions translate into actions. Our study focuses on the effects of implementation intentions on taking entrepreneurial action. The analysis uses two waves of survey data on 422 individuals, from the Swedish general population, who had an explicit interest in starting a business and who reported on their actions 6 months later. We test and find support for a moderated mediation model in which implementation intentions mediate the effects of goal intentions on taking entrepreneurial action. We further find the mediated effect to be even stronger for those confirming a strong intention to start a new business. We provide an in-depth discussion of the concept of implementation intention and an extensive research agenda.     

The effects of embeddedness on the entrepreneurial process

This paper uses Giddens' theory of structuration to develop the conception of entrepreneurship as an embedded socio-economic process. The qualitative examination of the actions of rural entrepreneurs finds that embeddedness plays a key role in shaping and sustaining business. Being embedded in the social structure creates opportunity and improves performance. Embedding enabled the entrepreneurs to use the specifics of the environment. Thus, both recognition and realisation of opportunity are conditioned by the entrepreneurs' role in the social structure.     

The role of networks in the entrepreneurial process

The extent to which the entrepreneur interacts with the networks in his local environment during the process of starting a new firm was studied. This study was based on the premise that, during this process, he is seeking not only the resources of equipment, space, and money, but also advice, information, and reassurance. Consequently the help and guidance received from both the formal networks (banks, accountants, lawyers, SBA) and the informal networks (family, friends, business contacts) will influence the nature of the firm substantially.The study was conducted in St. Joseph County, Indiana, a county that has experienced the same economic problems as many other towns in the midwest smoke-stack belt during the 1970s. In 1982, in response to this general decline in the business climate, a fund was raised to create and manage a new industrial strategy. Before this, there was no collective strategy for nurturing either the small firm or the new firm. Therefore, in order to determine the extent to which an interventionist strategy was appropriate, a research project was designed that posed three basic questions: what does the environment look like; does it need changing; and, if so, in what ways? This article reports part of that study—a survey of firms that had started in the county in the previous five years (1977–1982). It was concerned with two issues: the characteristics of the St.Joseph County entrepreneur and the usage of the formal and informal networks.The results of the survey show that the aggregate characteristics of the St. Joseph County entrepreneur are similar to those found in other studies. The new firms were founded by local people from small firms who started their small firms in similar industries that were local in nature. Moreover, the majority (90%) not only started small, but also grew very little subsequently—firms that have been classified elsewhere as life-style ventures. It is to be expected that such people would have a strong local network, both formal and informal, particularly in a county with a population of only 220,000. However, the results of the second part of the study showed that the main sources of help in assembling the resources of raw materials, supplies, equipment, space, employees, and orders were the informal contacts of family, friends, and colleagues. The only institution that was mentioned with any regularity was the bank, which was approached towards the end of the process when many of the resources were assembled and the elements of the business set in the entrepreneur's mind. This was not because the formal sources were unwilling to offer guidance, but rather that the entrepreneur and his social network appeared to be unaware of what was available. Moreover, in using only business contacts, family, and friends, the entrepreneur was likely to re-create the elements of previous employment, even when he was starting business in an entirely new market. Further, there was no significant difference between growth and no-growth firms. It would appear that in this county, the formal network was uniformally inefficient.This research shows that a major aim of the new strategy should be to increase the awareness of the community to the formal sources and types of help that are available. However, whilst most of the institutions are prepared to solve specific problems, they are not in the business of diagnosis or counseling. The network needs a hub or an enterprise office.The data on the start-up process and the role of networks in relation to new firms are very sparse and often anecdotal. This study was conducted in one environment, a small midwest county with a jaded entrepreneurial tradition. Further studies are necessary. Research questions include the extent to which networking is crucial in the start-up process, the length of time it took for the sophisticated networks of Boston's Route 128 and California's Silicon Valley to develop, and the effect of different geographic, cultural, and economic conditions. Only in this way is it possible to determine the extent to which regional, regeneration strategies for new firm creation should be county specific rather than state or country wide.     

Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development

By demonstrating the importance of entrepreneurial exit to the entrepreneur, the firm, the industry, and the economy I contend that our understanding of the entrepreneurial process is incomplete without the inclusion of entrepreneurial exit. I define entrepreneurial exit and demonstrate how this conceptualization provides concepts that are unique from those addressed by researchers in other domains; thus outlining a space for it within the literature. In each phase of the entrepreneurial process I explore the development of an exit strategy, reasons for exit and options for exit.     

From bureaucratic company to entrepreneurial management: A process of change

In their efforts to adapt to a market economy and capitalism, companies in the Eastern and Central European countries find themselves confronted with a challenge in many ways similar to the situation faced by certain overly bureaucratic companies closed to the outside environment in the capitalist system today. Due to market conditions, monopolistic or oligopolistic concerns such as utilities, railway companies, and airlines are having to abandon traditional practice in order to become outward-looking, customer-oriented companies. This involves changing from bureaucratic management toward entrepreneurial management, from closed organizational systems to ones that are open and dynamic—a process affecting the management of all the different subsystems within the firm, including the production, finance, commercial and administration departments, and very especially the management of human resources. In the Eastern and Central European countries, the change will be especially profound since it affects nearly all the companies in the socialist economy. But for overly bureaucratic companies in the capitalist system, the challenge is equally great, since they are being forced into change by new demands arising from the market situation or, as in the case of Spain, by government demands for adequate profitability.     

Overconfidence and entrepreneurship: A meta-analysis of different types of overconfidence in the entrepreneurial process

While research on overconfidence and entrepreneurship has grown rapidly in recent decades, extant studies provide conflicting theoretical predictions and empirical results about the role of overconfidence for entrepreneurship. To help resolve the controversy in the literature, we draw on information-processing theory to propose a theoretical framework that disentangles the influence of three types of overconfidence (i.e., overprecision, overestimation, and overplacement) in three major phases of the entrepreneurial process. The results of meta-analytical structural equation modeling (MASEM) based on 62 primary studies reveal varying effects of the three types of overconfidence in the entrepreneurial process. We discuss the implications of these findings and identify future research opportunities to advance this stream of research.     

A process study of entrepreneurial team formation: the case of a research-based spin-off

This paper describes how a team of entrepreneurs is formed in a high-tech start-up, how the team copes with crisis situations during the start-up phase, and how both the team as a whole and the team members individually learn from these crises. The progress of a high-tech university spin-off has been followed up from the idea phase until the post-start-up phase. Adopting a prospective, qualitative approach, the basic argument of this paper is that shocks in the founding team and the position of its champion co-evolve with shocks in the development of the business.     

Organizations as biomes of entrepreneurial life: Towards a clarification of the corporate entrepreneurship process

In 1983, Robert A. Burgelman published an influential paper in the field of strategic entrepreneurship, holding that the autonomous entrepreneurial initiative of employees and top management's desire for it might be simultaneously present, simultaneously absent, or go in opposite directions, yielding paradoxical results. To the best of our knowledge, this proposition, that translates into four types of organizations with regards to the process of corporate entrepreneurship, has however never been empirically tested before. Our results partially confirm Burgelman's ideas, while uncovering an unexpected transitional organizational archetype. Borrowing from Biology we metaphorically identify these archetypes as biomes of entrepreneurial life. This study takes an important step towards understanding the corporate entrepreneurial process, contributing not only to scholarship in the domain, but also rendering our conclusions particularly relevant for practitioners. The uncovering of a transitional archetype also holds significant implications for the main entrepreneurship literature in what refers to startup teams.     

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.     

Some Features of the Early Merger Movements in British Manufacturing Industry

This paper argues that a number of non-conventional types of foreign direct investments – such as free-standing firms – that fit awkwardly in models where multinational firms arise to exploit abroad their firm-specific advantages, can be explained by looking at the role of these institutions in the international transfer of financial capital. The paper develops a theory to explain why a particular form of transfer will be used based on the choice between price and hierarchical transfer on one hand, and intermediated versus non-intermediated transfer on the other. Hierarchical transfer (equity) will be favoured when transaction costs in the market for investible funds are high. Intermediation will take place when there is considerable asymmetry between savers and investors. Non-intermediated equity transfers (free-standing firms) will arise to finance projects offering no collateral (hence equity) but of low scale and known technology (hence non-intermediated).     

汇率波动对机电行业就业影响的分析

本文利用2001-2010年我国机电行业的203家上市公司的面板数据以及2000-2010年我国机电行业各子行业的季度数据,分别从微观层面和行业层面实证研究汇率变动对我国机电行业就业的影响。研究发现,人民币实际有效汇率波动对机电行业就业的负面影响的短期效应明显低于长期效应,且具有明显滞后性,表明更富弹性的汇率制度有利于缓解汇率波动对就业的影响。同时机电企业规模经济的发展、产品附加值的提升对就业有显著支撑作用,因此在人民币汇率日益走高的背景下,机电行业更应加速行业资源整合和产业升级。     

The cumulative nature of the entrepreneurial process: The contribution of human capital,planning and environment resources to small venture performance

The study is theoretically grounded in the resource-based view and applied to a service industry-tourism. It examined the performance of small ventures by utilizing an integrated dynamic model of entrepreneur choices and resource accumulation. Each phase in the process is added to previous one. Findings from 305 small tourism ventures revealed that the human capital of the entrepreneur, particularly managerial skills, were the greatest contributing factor to performance. This was followed by venture type. The study illustrates the unique nature of the entrepreneurial process among small ventures, often defined as “lifestyle businesses”.     

The influence of entrepreneurial marketing processes and entrepreneurial self-efficacy on community vulnerability,risk, and resilience

This paper uses the 2010/2011 Christchurch earthquake and re-development efforts as an exemplar to explore how entrepreneurial marketing processes combined with entrepreneurial self-efficacy can be leveraged to help a community reduce its vulnerability to natural disasters and enhance its resilience. Manyena's (Manyena, S. B. (2006). The concept of resilience revisited. Disasters, 30, 433–450; Manyena, S. B. (2012). Disaster and development paradigms: Too close for comfort? Development Policy Review, 30, 327–345) vulnerability–resilience theory is used as the conceptual framework to delineate the prophylactic benefits of building a community's entrepreneurial marketing process capabilities and the notion of entrepreneurial self-efficacy as defensive mechanisms to mitigate the effect of disasters. This work has resulted in an augmented disaster risk equation that considers: (1) the risk that a natural disaster poses on a community (as a function of the vulnerability of the community's tangible assets); (2) the hazard potential of the disaster; and (3) the resilience of its social and economic systems. This paper develops a measure of the symbiotic interrelationship of a community's entrepreneurial marketing process capabilities and community-level entrepreneurial self-efficacy to illustrate how leveraging the entrepreneurial, marketing, social, and engineering educational resources of a community can create a less vulnerable and more resilient community. In doing so, the paper develops a set of research propositions to guide future research and policy.     

Culture, entrepreneurial orientation, and global competitiveness

Based on Lumpkin and Dess’s conceptualization of entrepreneurial orientation (EO), this paper presents a cultural model of entrepreneurship. We propose that a society’s propensity to generate autonomous, risk-taking, innovative, competitively aggressive and proactive entrepreneurs and firms will depend on its cultural foundation. The role of economic, political/legal, and social factors as moderators of the relationship between culture and entrepreneurial orientation (EO) are also considered. Overall, it is proposed that only those countries with specific cultural tendencies will engender a strong EO, hence experiencing more entrepreneurship and global competitiveness. Specific country examples are discussed.     

Religion,social class,and entrepreneurial choice

While considerable concern has emerged about the links between religion and economic growth, little is actually known about how religion and social class impact the decision making of individuals. Using institutional theory and social dominance theory, this paper examines the influence of religion and social class on individuals' occupational choices. Based on a large-scale database from India, this paper finds that while some religions are relatively conducive to self-employment, some others have a negative impact on self-employment choices. Furthermore, individuals belonging to social classes that are lower in the social hierarchy are less likely to be self-employed. The role of both religion and social class in influencing the likelihood of choosing self-employment suggests an important link between religion, social class, and occupational decision-making.     

Union power,entrepreneurial risk,and entrepreneurship

The paper proposes that a trade-off can be identified between the union power and the entry rate of new enterprises. It suggests that union power increases the entrepreneurial failure risk, thereby discouraging entrepreneurship and reducing the employment opportunities. In addition, we show that high price uncertainty and a union-controlled labour market is a harmful combination for entrepreneurship.