International Journal of Entrepreneurship and Innovation Management (41 papers in press)
Supporting Entrepreneurship Policy: An Overview of Italian Start-up Competitions
by Renato Passaro, Ivana Quinto, Antonio Thomas
Abstract: Innovative start-ups are currently considered to be an important channel for industrial change and for the renewal of economic systems. Among the initiatives that have been implemented to promote their diffusion, start-up competitions (SUCs) have received much recognition from policy-makers, followers and participants. Although the number of SUCs has grown, there are no comprehensive or systematic overviews of SUCs in the literature. Hence, this paper presents a cross-sectional exploratory analysis of Italian SUCs to provide an overview of their core characteristics. This in-depth study will support the diffusion of SUCs and will provide a foundation for the creation of a suitable ecosystem to improve the processes of business start-ups. The results show that the diffusion of SUCs is accompanied by deep structural changes, which can be interpreted as a consequence of the growing involvement of private organizations in promoting SUCs. Nevertheless, wide-ranging public intervention appears to be necessary to increase the effectiveness of SUCs.
Keywords: Entrepreneurship policy instrument; Start-up Competitions; Business Plan Competitions; Start-up ecosystem; Entrepreneurial process; Innovation; Policy-maker.
The hierarchical relationships between CEO characteristics, innovation strategy and firm performance in open innovation
by Joon Mo Ahn
Abstract: Open innovation (OI) has become an important business norm of successful firms; however, its strategic aspects and the role of a key individual, such as a chief executive officer (CEO) in its adoption, have been under-researched. This paper aims to investigate whether OI is relevant to SMEs and how CEO characteristics influence firm performance through OI. The hierarchical relationships between a firm and CEO characteristics are analysed with structural equation modelling (SEM) using data from 401 innovation-oriented SMEs in Korea. The results indicate that (1) openness can make a greater contribution to firm performance, (2) CEO characteristics are positively associated with openness, and (3) government support positively influences both openness and internal R&D. The research suggests that the human elements in SMEs should place a greater emphasis on OI to enhance firm performance and that policy makers should consider developing various programmes for key decision makers in SMEs to increase their awareness of OI.
Keywords: open innovation;CEO;SME;structural equation modeling.
ASSESSMENT CRITERIA FOR SEED ACCELERATORS IN ENTREPRENEURIAL PROJECT SELECTIONS
by Teresa Mariño-Garrido, Domingo García-Pérez-de-Lema, Antonio Duréndez
Abstract: This paper contributes to the literature on accelerators by filling the gap concerning the criteria used to select venture projects. Seed accelerators develop strict and rated assessment criteria for project selection that grants them objectivity and guarantees program success. This study uses a sample of 309 cases to analyse the criteria applied by an accelerator when selecting projects. Among these cases, 15 entered the accelerator stage. Our work first examines variables linked to the business project, such as the extent of innovation, extent of investability, speed of acceleration and extent of team consistency. It then assesses entrepreneurial skills such as negotiation, teamwork, creativity, communication and leadership. Our findings show that extent of team consistency and speed of acceleration are the most widely-used variables to assess a business project, while the most valued entrepreneurial skills are leadership followed by creativity. Furthermore, the project is more likely to enter the acceleration stage in the presence of higher team consistency and creativity.
Keywords: Seed accelerator; entrepreneurship; start-up; venture capital.
EVOLUTION OF INBOUND OPENNESS PROFILES IN THE INNOVATION PRACTICES OF SMALL AND MEDIUM-SIZED ENTERPRISES IN SPAIN AND PORTUGAL
by Franciane Hochleitner, Anna Arbussà, Germà Coenders
Abstract: The purpose of this article is to shed light on the patterns of inbound open innovation practices of SMEs and to explore potential size and country specificities. We base the analysis on data provided by three waves of the Eurostat Community Innovation Survey (CIS) for Spanish and Portuguese firms. The study identifies 5 innovation clusters with different openness profiles: closed innovators, absorbers of specialised knowledge, acquirers, co-operators and absorbers of industry knowledge. We find no substantial differences between small and medium-sized firms with regards to their innovation profiles, but there are substantial differences between the profiles of Spanish and Portuguese firms and the trends in said profiles. Portuguese firms increasingly rely on technology acquisition and Spanish firms on public institutions. These results could help shape national policy on intellectual property and public research systems, among others.
Keywords: Cluster analysis; SMEs; open innovation; innovation activities; innovation policy.
How does the Organizational Structure influence a Work Environment for Innovation?
by Eliana Gaspary, Gilnei Luiz De Moura, Douglas Wegner
Abstract: Companies operating in dynamic and rapidly changing markets need to design an organizational structure that fosters innovation. However, there are still remaining gaps in literature regarding the impact of organizational structure on the development of an environment that stimulates creativity and innovation. This paper analyzes the influence of different dimensions of organizational structure on the development of a work environment for innovation. A case study with a mixed method approach was conducted in the Brazilian subsidiary of a multinational company recognized worldwide for its innovative capacity. The results contribute to the theory by showing that several structural dimensions mainly the level of communication, level of formalization and job codification affect the work environment for innovation. The study also enriches the comprehension on how managers should design specific structural dimensions to stimulate creativity and innovation.
Keywords: innovation management; work environment for innovation; climate for innovation; creativity; organizational structure; matrix organization; human resources.
Venture capital firms valuation in bull and bear markets: Evidence from Sweden
by Anders Isaksson, Öystein Fredriksen
Abstract: This study uses an experimentally designed case study approach to investigate Swedish venture capital firms valuation practices in two different economic contextsthe economic boom (bull market) of 1999 and the downturn (bear market) of 2002. A key finding in our study is that during economic downturns, venture capital firms employed fewer and less advanced valuation methodsrelying more on rules of thumb and gut feeling than during boom times. We conclude that investor behaviour is considerably affected by current economic conditions and advocate strongly that it be considered in future research on not only venture capital valuation, but also investor behaviour in general. This study thus enriches the knowledge of venture capitalists valuation practices, in general, and how market conditions affect them. Furthermore, the results can also aid researchers in developing more relevant theories of valuation, valuation models, and valuation practices.
Keywords: venture capital; private equity; valuation; asset-based valuation; discounted cash flow valuation; required rate of return; cost of capital; dot-com bubble; economic bubbles; capital market myopia; bull market; bear market; investor behaviour.
Can we build resilience by way of creativity? Artistic ventures in a London hospice
by Thomas Hirschmann, Nigel Hartley, Steffen Roth
Abstract: Resilience and stress management are considered key factors for entrepreneurial success. In this research we propose that controlled, creative confrontation with adversity not only does not harm but, instead, helps to overcome stressful experience by fostering resilience. Our research is based on a neuronal network-model that pictures resilience and its relation to creativity. This model is applied to several cases of a UK hospice that successfully uses art to deal with the stressful conditions of dying inpatients. On this background we outline the concept of Controlled Creative Confrontation that harnesses the creativity-inherent potential for catalytic change to build resilience and permanently transform the self-perception of patients. This concept is illustrated in three exemplary cases of patients who successfully coped with their impending death by using art to confront, overcome, and re-build themselves in the face of this ultimate adversity. Describing these cases we point out which specific aspects of resilience we presume to be fostered by creativity. We conclude the research giving an outlook on suggested future studies providing quantitative support for and deeper insight into the causal relationship between the two concepts of creativity and resilience and their impact on the success of entrepreneurial ventures.
Keywords: Creativity; resilience; stress; coping; dying; art; entrepreneurial success.
SHARING YOUTUBE CONTENT IN OFFLINE MODE: AN ATTEMPT TO EXPLORE CONVERSATION THROUGH AN EXPERIMENTAL STUDY
by Janarthanan Balakrishnan, Susobhan Goswami
Abstract: Various researches have added up productive insights on users motivation and psychology behind online video sharing. Given that sharing involves communication and other related factors, this study aims to investigate the users communication needs and personality traits working behind sharing online videos in an offline platform. Given the popularity, YouTube was chosen for investigating the above research objective. With a differential approach, this study has employed social network analysis to understand the communication diffusion through quasi- experiment methodology. Three video genres-blocks; movie review videos, sports videos and music videos were chosen to understand the difference among the network structures. Further, personality of test units (five-factor model) and their communication factors (expertise, trustworthiness, attractiveness, social tie and homophily) are keyed out through the measures of eigenvector centrality, betweenness centrality and closeness centrality from the three network structures. The results indicated that the central units of movie reviews and music videos exhibited an extrovert personality, on the other hand, the central units from sports videos displayed an openness trait. Alongside the results of personality, it was understood that social tie, homophily and trustworthiness happen to be the most influencing factors in the communication diffusion of movie reviews, sports and music videos respectively.
Keywords: YouTube content; Social Network Analysis; Communication factors; Big Five personality traits; Centrality; Experiment method.
Innovation strategy and organizational structure:
insights from an Italian family firm
by Elisa Truant, Laura Broccardo
Abstract: Innovation is a key driver for national and international economic development and growth. Nevertheless, especially during a period of crisis, companies ration resources, limiting investments in research and innovation.
The objective of this study was to verify whether an innovation strategy might offer a competitive advantage, even during periods of crisis, to a family business operating in the automotive sector. In addition, it was also investigated if the company had modified its organizational structure to enhance strategy implementation.
The research methodology first focused on a review of the international literature relevant to innovation in family businesses and the strategy-structure alignment. Then, based on the literature, a relevant Italian case study about a leader in the European vehicle-transport sector was selected and examined. In recent years, crisis has strongly affected this sector, increasing the average life of commercial vehicles. To survive and thrive over this period, in contrast with the behavior of other companies, the family business owner adopted a proactive approach based on an innovation-focused strategy.
This paper adds specific findings related to the management of innovation in family firms, contributing to the expansion of the literature on innovation in family businesses and organizational structure while providing some useful practical insights.
Keywords: innovation; strategy; organizational structure; family firm; case study.
THE INFLUENCE OF NATIONAL CULTURE AND SUPPORT TO INNOVATE ON OPENNESS TO INNOVATION
by Leandro Santos, Rafael Pereira, Felipe Borini, Muhammad Raziq, Moacir Oliveira Jr.
Abstract: Fast environmental changes have increased the importance of innovation for firms. In this sense, the national culture of innovation is an important factor to promote openness to innovation and improve a countrys firms innovation process. This research seeks to answer the following question: Does the support to innovate intensify the influence of the national cultural on firms openness to innovation? The aim is to verify whether the relationship between national culture and openness to innovation is mediated by the support to innovate. Using a database from the Global Entrepreneurship Monitor (GEM) composed by 2.636 companies and applying the Structural Equations Modeling (SEM) technique, this study achieved contributions after testing some determinants for openness to innovation, revealing the importance of two prior aspects for openness to innovation: national culture and support to innovate. It also confirmed that support to innovate show notable effects improving the relationship between national culture and openness to innovation.
Keywords: National Culture; Support to Innovate; Openness to Innovation; Structural Equations Modeling; Global Entrepreneurship Monitor.
Complexity and Social Capital in Solidarity Economy: an empirical evidence of enterprises in Brazil
by Maria De Nazaré Soares, Aurio Leocadio, Silvia Maria Rebouças
Abstract: Solidarity economy is a social construction based on a social movement. This paper investigates the relationship between the principles of complexity and the generation of social capital in the solidarity economy enterprises and how network strategy affects this relationship. The data were collected through a national survey of 11,138 enterprises in Brazil and analysed statistically by a multiple linear regression analysis. Findings reveal a positive and significant relation between the principles of complexity and the generation of social capital. The principle of self-management has a particular effect on social capital under the influence of networks leading the enterprises to empowerment and local development. Regarding the principles of cooperation and autonomy, they contribute more to the generation of social capital without the influence of networking. This could be explained according to a critical comprehension of some authors, who reflect that, as they become bigger, enterprise lose cooperation and autonomy. Despite that, there is a generation of social capital by self-management principle.
Keywords: solidarity economy; social entrepreneurship; social inequality; complexity; self-management; cooperation; autonomy; social capital; networks of cooperation; social movements; social innovation; local development; Brazil.
Network characteristics and the adoption of organizational innovation in the food sector
by Zam-Zam Abdirahman, Ghasem Shiri, Loic Sauvée
Abstract: The purpose of this article is to assess the impact of network characteristics on non- technological, i.e. organizational innovations (hereafter OI), adopted by food companies. In the food sector context, we specifically put forward the importance of partnerships and networking activities, where this question is relevant. Indeed, relatively little is known about the importance of network characteristics, such as the diversity of partners or categories of networks (business clubs, technology parks, industry associations....), for the adoption of OI. Based upon a sample of 348 European food companies we were able to test hypotheses linking network characteristics with the adoption of OI in the food sector. The results of the research highlight the positive effects of network competence, of heterogeneity of members and of the category of club networks on the adoption OI by food companies.
Keywords: adoption; food sector; organizational innovation; network.
Examining conditions for successful entrepreneurship in Chinas firms
by Morris Foster, Lorraine Watkins-Mathys
Abstract: We examine the question of what factors might be likely to increase the probability of success for entrepreneurial activity by FIEs and domestic firms in China. We first examine the possibility of there being a distinct and separate notion of Chinese entrepreneurship but find that unlikely. The issue then becomes what contextual factors may be necessary to enable entrepreneurial activity in China to flourish and we locate four such factors. We acknowledge that our posited set of necessary factors is probably not a sufficient set but they are at the minimum a useful starting point.
Keywords: entrepreneurship; China; FDI; domestic investments; higher added value; context.
Comparison of online customer ratings between the eco-labelled and non-eco-labelled hotels of Oslo
by Hulisi Binbasioglu
Abstract: Online guest reviews are now playing an increasingly important role in consumer purchase decisions. Online booking websites are considered excellent sources of information, thanks to their millions of reviews. This paper contributes to research into eco-labels in the hospitality industry by discussing the online ratings of hotels with reference to different attributes, such as average daily rate, number of rooms, number of detailed reviews, and overall customer rating, as well as specific ratings for staff, value for money, location, facilities, comfort, cleanliness and free Wi-Fi. The results of this study indicate that there was a statistically significant difference between eco-labelled and non-eco-labelled hotels in terms of average daily rates and number of rooms. Eco-labelled hotels were found to have significantly better scores than non-eco-labelled hotels. However, there was no statistically significant difference between eco-labelled and non-eco-labelled hotels in terms of the number of detailed reviews and the customer ratings regarding the different attributes that measure customer satisfaction.
Keywords: online reviews; online hotel ratings; electronic word-of-mouth (eWOM); eco-labels.
Practices for building innovation capabilities of local employees at German manufacturing subsidiaries in China
by Wenqian Zhou, Vivek K. Velamuri
Abstract: Many German multinational companies aim to transform their subsidiaries in China that previously solely focused on manufacturing into subsidiaries that also drive innovation. However, these companies face numerous challenges, due to local differences compared to the West. In order to facilitate the process, this paper studies practices for building innovation capabilities at German manufacturing subsidiaries in China, taking into account the local challenges. Based on in-depth interviews with managers in China, this study identifies three practices for driving the built-up of innovation capabilities within the subsidiary organization: build knowledge, establish a mindset for innovation, and increase measures for employee retention. The study adds to extant research by detailing these practices with approaches that target local challenges. Compared to the West, the local challenges include differences in skills and knowledge, culture, as well as work behavior.
Keywords: building innovation capabilities; German subsidiaries; China.
The influence of innovation stimulus, facilitating factors and support mechanisms on innovation performance in Brazilian small textile firms
by Giancarlo Gomes, Antonio Majocchi, Joaquín Alegre, Linda Jessica De Montreuil Carmona
Abstract: The ability of the organisation to develop new products is crucial in rapidly changing business environments, and thus, customer demographics, consumers expectations and buying behaviour play an important role. Hence, exploring the antecedents of innovation performance becomes more important. This study analyses the relationships among innovation stimulus, facilitating factors and support mechanisms for innovative performance in the textile industry of Santa Catarina, Brazil. The sample included 128 respondents, who were all employees of five small and medium-sized textile firms; data were analysed using structural equation modelling. We found that innovation stimulus, facilitating factors and support mechanisms are correlated, while support mechanisms have no influence on innovation performance. The results also highlight a concern regarding the cost and time spent on developing innovation projects. This research contributes to innovation performance literature by analysing innovation antecedents including visions of innovation as both a process, represented by efficiency, and a result, represented by efficacy.
Keywords: Innovation stimulus; innovation facilitating factors; innovation support mechanisms; innovation performance; textile industry.
Family Business, Strategic Planning and Corporate Entrepreneurship
by Charbel Salloum, Jacques Digout, Laura Salloum, Catherine Mercier-Suissa
Abstract: The aim of this paper is to examine whether willingness to change, generational involvement, perceived technological opportunities, and competitive aggressiveness, in addition to strategic planning, affect the corporate entrepreneurship of family firms in Lebanon. Using a sample of 85 Lebanese family firms, our results suggest that family-business-related characteristics and strategic planning have a positive relationship with corporate entrepreneurship. Our study provides important insights to regulators and practitioners interested in enhancing governance practices in family firms in Lebanon based on the impact of family-business-related characteristics and strategic planning on corporate entrepreneurship. More importantly, our paper helps understand how corporate entrepreneurship in a Middle Eastern country can be affected by willingness to change, generational involvement, perceived technological opportunities, and competitive aggressiveness.
Keywords: Family Business; Corporate Entrepreneurship; Performance; Strategic Planning.
User Acceptance of Enterprise Resource Planning Systems: A Study in Small and Medium Enterprises in Vietnam
by Minh-Duc Le
Abstract: This study aims at investigating important antecedents affecting the user acceptance of Enterprise Resource Planning (ERP) systems. The research model was developed based on the Technology Acceptance Model (TAM). The model was empirically tested using data obtained from an online survey of ERP users in 63 Small and Medium-sized Enterprises (SMEs) in Vietnam. A total of 416 responses were gathered in which 14 uncompleted questionnaires were removed, leaving 402 usable questionnaires. The results revealed that almost proposed factors positively influenced the User Attitude toward Using ERP Systems directly and indirectly through the two TAM beliefs, except the paths from Management Support to Perceived Ease of Use and from Technical Complexity to Perceived Usefulness, while Perceived Usefulness together with User Attitude, in turn, enhanced Behavioral Intention to Use ERP Systems. Additionally, Income, Employees Position, and Work Nature were found to have moderating effects in the conceptual framework.
Keywords: ERP; User Acceptance; Technology Acceptance Model (TAM); Small and Medium-sized Enterprises (SMEs); SEM.
A Longitudinal Study of the Creation Methods Used by Entrepreneurs to Develop New Products and Services
by José De Sordi, Reed Nelson, Manuel Meireles, Marco Hashimoto, Milton Chagas
Abstract: This paper presents a longitudinal study of the development of products and services (P/S) by entrepreneurs from the perspective of nine creation methods: copy, new product development, improvement, frugal innovation, adaptation, new combination, exaptation, nonaptation spandrels, and nonaptation junk. Our sample consisted of 51 entrepreneurs whose ventures had been operational for over 42 months in a recessive environment characterized by very high failure rates. Our informants provided perceptions of technological and commercial certainty for 180 P/S launches that they executed. We observed that the creation methods which involved higher levels of uncertainty, such as adaptation and new combination, were only employed later, after the first successful implementation of a new P/S. The initial trajectory of these entrepreneurs is typified by creation methods involving low commercial and technological uncertainty followed by some more complex and uncertain initiatives, but always preferring safer innovations. Aside from offering the entrepreneur greater control over the commercial and technological environment, this strategy provides greater financial security due to the returns generated by the first successful P/S launch. We also observed that entrepreneurs who developed new projects at the request of clients presented greater mastery and diversity of creation methods.
Keywords: creation; uncertainty; entrepreneur; product; service.
Startups in a corporate accelerator: what is satisfying, what is relevant and what can corporates improve?
by Tobias Gutmann, Cornelius Maas, Dominik Kanbach, Stephan Stubner
Abstract: Corporate accelerators have emerged rapidly over the last few years and have become a cross-industrial global phenomenon. Established companies interact with startups through these programmes in a structured approach. Recent academic research shows that programmes exist with diverse characteristics, providing various resources and services such as investment capital, office space, mentoring or training to the startups. Currently, the corporate accelerator landscape is undergoing change, with companies adjusting their programme characteristics. One reason for this development seems to be that companies struggle to provide the right resources to startups. The extant corporate accelerator literature, however, does not provide any insights into the value of the different resources provided to startups in such programmes. Thus, we analyse, empirically and in-depth, one of the longest active corporate accelerator programmes, taking the startups perspective. Investigating Wayra, the corporate accelerator of Telef
Keywords: Corporate Accelerator; Corporate Venturing; Venture Client; Wayra; Telefónica; Startup.
Public sector entrepreneurial orientation in South Africa: A focus on organisational boundaries, strategy and resources
by Boris Urban
Abstract: Recognising the gap in the literature on public sector entrepreneurship in emerging markets, hypotheses are formulated to explain the influence of organisational antecedents on entrepreneurial orientation (EO) at municipalities in South Africa. Correlational and regression analyses are used to test the hypotheses. Findings show that the organisational antecedents of structure and culture explain a significant amount of variation in the EO dimensions of innovativeness, pro-activeness and risk-taking. The findings provide a meaningful understanding of a relatively new topic in entrepreneurship and innovation in an emerging market context. The study adds to the literature by providing causal links between organisational antecedents and each of the EO dimensions. Moreover, the study takes place in an under-researched country, where understanding the role that organisational factors may play in shaping EO in the public sector could prove highly valuable.
Keywords: Entrepreneurship; innovation; risk taking; pro-activeness; organisational antecedents; structure; rewards; culture; public sector; South Africa.
Venture Capital and Innovation: Tug of War?
by James Taylor, Mohammad Saud Khan
Abstract: Although majority work within the field of innovation has revolved around the theme that venture capital supports innovation, a critical and convincing stream of literature has emerged; promoting a contrasting hypothesis. It is argued that venture capitalists dont promote innovation, but rather thwart it, presenting empirical evidence in support of their position. Therefore, a question remains unanswered: do venture capitalists support innovation, as prevailing literature argues, or do they thwart it? Therefore, the questions of how, why and if venture capital supports innovation, and the importance of the answers for policy, forms the basis of this article.
Keywords: Venture Capital; Innovation; Entrepreneurship.
Knowledge for innovation: creative routines and weak signal processing
by Ana Cristina Fachinelli, Jairo Moran Carvalho Ribeiro, Fernanda D´Arrigo
Abstract: The monitoring of business environments allows companies to identify signals that, when processed, become external stimulation to the creative process and innovation sources. This study aimed to investigate the use of creative routines for signal processing and innovation performance in a corporate group. The research is based on a case study carried out in six companies which are part of a Brazilian corporate group. The methodology used was mixed methods with the concurrent embedded design. We collected qualitative and quantitative data in multiple units of analysis. The results indicate that companies that have developed creative routines perform better on innovation. They also reveal that innovation agents act locally and around their environment. Therefore, there is an endogenous potential for the use of creative routines to foster innovation.
Keywords: Knowledge; Innovation; Creative routines; Weak signals.
Solving the heterogeneity puzzle: a comparative look at SMEs growth determinants in open and closed innovation patterns
by Cristina Marullo, Alberto Di Minin, Irene Martelli, Andrea Piccaluga
Abstract: This study enhances the current understanding of the extent to which the open innovation paradigm is embedded in SMEs by identifying and comparing three different and unrelated configurations of innovation practices (closed, partner-oriented and user-oriented innovation). It also contributes to the ongoing empirical debate on open innovation in SMEs by exploring the influence that new knowledge generation capacity, absorptive capacity and appropriation capacity exert as growth determinants in the different patterns. The results have both theoretical and practical relevance, giving consistency to the hypothesis that SMEs pursuing different innovation patterns have different paths to growth.
Keywords: open innovation; SMEs; configurations; strategies; R&D; knowledge generation; absorptive capacity; appropriation; performance; growth.
The Four Stages of Knowledge Sharing Process in SMEs
by Amitabh ANAND, Isabelle Walsh
Abstract: The literature on knowledge sharing process (KS), mostly focuses on larger firms and very few studies investigate KS process in the context of small and medium size enterprises (SMEs). Studies conducted in SMEs have concentrated more on the antecedents of KS, from individual, group and organizational perspectives, with many researchers highlighting the process of improvisation and facilitation through empirical research and theoretical frameworks. The literature is too fragmented to identify clearly the various mechanisms involved in the KS process in SMEs. This paper attempts to take an exploratory and qualitative stance to investigate and understand how SMEs share knowledge in a dyadic situation. Through participant observation and interviews with both supervisors and employees. Our qualitative analysis produced four essential stages of the KS process among employees in SMEs: identification, medium selection, engagement, and feedback.
Keywords: Knowledge sharing; knowledge sharing process; Dyadic Relation; SMEs; India.
Reinforcement contingencies of innovative behaviour: Antecedent and consequent factors
by Alipio Veiga Neto, Rodrigo De Siqueira Christo, Antonio Jorge Fernandes, Cristine Hermann Nodari
Abstract: This study aimed to investigate the antecedent stimulus and consequent reinforcement that produce the innovative behaviour. Based on Foxall (2009), this study is proposing a model to analyze the Contingencies of Innovative Behaviour (CIB) which was tested using multivariate data analysis in an exploratory research. We identified 38 variables which stimulate the subjects to innovate and what can induce the avoidance of innovation. Using a sample of 224 entrepreneurs, business owners or company managers located throughout Brazil we found the social interaction and learning as the main factor that stimulates innovative behaviour and, as a conclusion, innovative behaviour occurs in organisations, regardless of the difficulties or barriers that can minimize the occurrence of innovative practice.
Keywords: innovative behaviour; antecedent stimulus; consequent reinforcement; contingences; competitiveness; differentiation; avoidance; utilitarian reinforcement; informative reinforcement; social interaction; learning.
Perceptions and Role of University Spin-offs on the Employment of Young Graduates
by Fernando Luis Almeida, José Duarte Santos
Abstract: This study intends to characterize and analyze the role that university spinoffs play in the employability of recent graduates and their function in opposing youth unemployment. For that purpose, this study uses empirical data from Portugal to analyze the evolution of the population with higher education levels, the evolution of the unemployment rate and the geographical distribution of university spinoffs. Additionally, a survey was adopted to collect data from 117 Portuguese university spin-offs to identify the main advantages and difficulties in hiring young graduates. The results indicate that the number of young graduates in these companies is small, representing only 11,8% of their total employees. The main advantages of hiring young graduates include their learning ability and new knowledge brought from abroad. By contrast, the main difficulties are their low capacity in dealing with pressure, low autonomy, and difficulties in taking responsibilities.
Keywords: university spin-off; employment; entrepreneurship; graduate employability; higher education.
Entrepreneurial opportunity recognition: an empirical study in Iranian agriculture sector
by Ehsan Masoomi, Kurosh Rezaei-Moghaddam
Abstract: One of the central questions in the field of entrepreneurship is that how are opportunities recognized? This question is still need to be answered in agriculture sector. Recognizing entrepreneurial opportunities by agricultural entrepreneurs is one of the most understudied topics in entrepreneurship research. The aim of this study was to investigate the factors related to the entrepreneurial opportunity recognition in agriculture sector. We considered different groups of factors including demographic, individual, and contextual factors. A simple random sampling of 205 awarded agricultural entrepreneurs at national level in Iran was selected (N=440). The study was designed using survey research. The results indicated that entrepreneurs social networks, prior knowledge, self-efficacy, creativity, and perception about agricultural environmental opportunities had positive effects on entrepreneurial opportunity recognition. The results also revealed the significant difference in opportunity recognition between agricultural entrepreneurs place of residence, education level, and work experience level. Theoretical and practical implications for entrepreneurial opportunity recognition by agricultural entrepreneurs have been provided.
Keywords: Agricultural entrepreneurship; Opportunity recognition; Agriculture sector; Iran.
Platform-based sustainable business models: reducing food waste in food services
by Malla Mattila, Nina Mesiranta, Anna Heikkinen
Abstract: Food waste is a growing sustainability challenge for companies operating in the food services sector in developed countries. In this study, we examine how platform-based business models for food waste reduction can contribute to sustainability. We draw from the literature on business sustainability, sustainable business models (SBMs), and digital platforms, scrutinising two real-life business cases that provide digital services that help food service companies to reduce their food waste. Our findings identify the value network (user, producer, and support networks) and sustainable value proposition (economic, environmental, and social dimensions) as key elements for addressing sustainability in platform-based businesses. The study contributes to the SBM literature by developing an empirical and systemic understanding of platform-based SBMs. The cases illustrate that these SBMs have the potential to contribute to sustainability through scalability and attractiveness. From a managerial standpoint, the study offers companies insights into how to develop sustainability in their business operations.
Keywords: sustainability; sustainable business model; platform; digital; food service; restaurant; food waste; food waste reduction; business model; value network; value proposition; digital service; application; case study.
The role of social capital in the growth of innovative nascent firms: the moderating effect of incubators
by Valerie Francois, Christophe Lafaye, Matthieu Belarouci
Abstract: The concept of social capital is increasingly used in entrepreneurship studies to explain the growth of innovative nascent firms. However, empirical findings about the role of social capital (SC) in the growth of young firms have been contradictory to date. We focused on the relational dimension of social capital and differentiated between internal social capital (ISC) and external social capital (ESC). We analysed the perceived utility which is rarely used in SC studies of resources received from the networks of innovative nascent firms in their first six years of existence. We implemented the two-stage least squares (2SLS) analysis to avoid the endogeneity bias. The results indicated that during the early years, nascent firms' external social capital is a decisive resource for growth. This was not the case for internal social capital. We observed that joining an incubator appears to have no impact on either growth or the relationship under study.
Keywords: Social capital; innovative nascent firm; incubator; growth.
Special Issue on: Migration and Diaspora Entrepreneurship Tackling the Heterogeneity
Transnational entrepreneurship: a systematic review of the literature
by Diana Carolina Muñoz-Castro, Sandra Milena Santamaría-Alvarez, Sara Isabel Marín-Zapata
Abstract: This article presents a systematic review of the research literature on transnational entrepreneurship, addressing perspectives on the topic from different academic fields and providing an overall assessment of the main theoretical and empirical advances made to date, including research trends and gaps. To achieve this, we identified and revised the most relevant literature on transnational entrepreneurship published between 1995 and 2016. The results suggest that although institutions play a vital role for transnational entrepreneurs, their networks, human capital and motivations are crucial, since these resources can help them overcome structural constraints. We also found that most articles reporting on qualitative case studies focused on particular communities, suggesting there is a need for more comparative studies. We conclude that it is imperative to establish a more developed theoretical framework for the study of transnational entrepreneurship that would broaden scientific knowledge by integrating diverse disciplinary perspectives covering multiple fields of study.
Keywords: transnational; entrepreneur; diaspora; migrant; systematic review; institutions; networks; drivers; capital; entrepreneurship.
Entrepreneurship and economic integration of immigrants: a critical review of literature
by Jan Brzozowski
Abstract: This study provides a critical investigation of the research on immigrant entrepreneurship and economic integration of immigrants. Based on a sample of 44 articles, the paper shows the main theoretical concepts, methodological approaches and findings. The results of the literature review show surprising shortages in the studies on immigrant entrepreneurship as the immigrant's self-employment status is usually perceived as a desired outcome of economic integration. Consequently, some important gaps in the knowledge on immigrant entrepreneurship are identified, and the most urgent directions for further studies are proposed.
Keywords: entrepreneurship; immigrant; economic integration; economic adaptation; literature review.
The impact of institutions and cognition on context: a case study approach in international entrepreneurship
by Arnim Decker
Abstract: This paper suggests a framework for context. Departing from the perspective of structuration theory, we propose that cognitive processes enable agents to act within structures. Cognition is dependent on institutional configurations which range from stable to fast moving and dynamic. It is argued that the degree of the agents' embeddedness affects the cognition of the agent, which, in turn, enables the agents' abilities to act upon and influence structures in the understanding of structuration theory. Through this mechanism, context emerges. A case study to depict the way a firm engages in cross-border activities and navigates within different institutional environments is presented. We propose that cognition is the link which connects institutions to the structure/agent system. The discussion concludes that cognition affects the creation of structures that form the context in which the firm operates.
Keywords: structuration theory; institutions; cognition; international entrepreneurship; transnational entrepreneurship; social media; Denmark; Lithuania.
Exploring the role of context in motivating entrepreneurial behaviours: the motivations of migrant entrepreneurs in the Republic of Ireland and Northern Ireland
by Steven Lucas
Abstract: The personality traits approach is a popular way of understanding entrepreneurial motivation. This approach emphasises the importance of internal characteristics as drivers of entrepreneurial motivation. One of the central issues with the personality traits literature is therefore a tendency to overlook the importance of the actor's external context in facilitating entrepreneurial motivations. The purpose of the paper is to address this gap by making three exploratory arguments, each of which is demonstrated through an analysis of the motivations of 43 migrant entrepreneurs in the Republic of Ireland and Northern Ireland. The arguments are: 1) that context is an active force influencing entrepreneurial motivation; 2) that external environments are experienced differentially by actors; 3) that context has both spatial and temporal elements.
Keywords: migrant; return migrant; entrepreneurship; self-employment; business; agency; context; biographical embeddedness; mixed embeddedness; personality traits; Ireland.
The role of social media in the collaboration, interaction, co-creation and co-delivery of a social venture in an uncertain conflict environment
by Cherry Cheung, Caleb Kwong, Charan Bhattarai
Abstract: This research case study examines the creation and development of a bottom-up social entrepreneurial venture (SEV) immediately after the outbreak of a civil war in an Arab country by a group of young patriots in the aftermath of the Arab Spring uprisings in the 2010s. Drawing on Linders' (2012) model of social action lifecycle, our study examines the co-creation of the SEV, and the subsequent processes of co-production and co-delivery of the social actions. We found the role of social media to be critical. In our case study, social media was not intended for mass-mobilisation, but for selected mobilisation amongst those within the network. This is due to the insecure environment and the fear of infiltration from opposing parties. We also examine how new actors were, over time, being carefully screened and selected, and potential harmful players being excluded, which in turn contributed to the evolving nature of the SEV.
Keywords: interaction; collaboration; uncertainty; war and conflict; social entrepreneurship; youth.
Motivations and barriers to crowdlending as a tool for diasporic entrepreneurial finance
by Cécile Fonrouge, Daniela Bolzani
Abstract: The flow of money from members of diasporas and their descendants back to their homelands is significant. In fact, such investments, when made in the form of loans aimed at sustaining entrepreneurship, can contribute to the economic development of the diasporan's home country. Given the increasing relevance of crowdlending as a method of entrepreneurial finance in developing countries, what are the factors that motivate diasporans to invest through online crowdlending instead of through more traditional options, and what barriers hinder them from doing so? We present a theoretical analysis that draws on the existing literature on crowdfunding and transnational entrepreneurship combined with field interviews with three founders of online diasporic platforms. We discuss the variables that must be taken into account when explaining the motivations of diasporans and the barriers hindering their engagement in online microlending. Several areas are highlighted for future theoretical and empirical research to study this largely under-researched phenomenon.
Keywords: crowdfunding; crowdlending; microlending; entrepreneurship; entrepreneurial finance; migration; diaspora; diasporan; diasporic investment; diasporic finance; transnational; developing countries.
Special Issue on: ICMC 2017 Innovative Digital Business Models as Levers of Organisational Sustainability
Applying the Circular Economy to a Business Model: An Illustrative Case Study of a Pioneering Energy Company
by Ville-Veikko Piispanen, Kaisa Henttonen, Eeva Aromaa
Abstract: While the circular economy (CE) has awakened discussion in business model literature, understanding of the Circular Business Model (CBM) and value-creation opportunities in practice have been limited. This study focuses on one sustainable business model archetype: creating value from waste. It supports sustainable development by material circulation. We aim to provide an answer to the question of how a company converts its resources and capabilities into economic value by creating value from waste. This single case study in the Finnish energy sector focuses on a pioneering company applying CBM. The analysis more specifically illustrates the nine main elements of a business model: customer value proposition, segments, customer relationships, channels, key resources, key activities, partners, costs and revenues. Furthermore, we illustrate the internal and external adoption factors required to transform a Business Model Canvas (BMC) to a CBM framework.
Keywords: circular economy; sustainability; business model; business model canvas; innovation; case study; business opportunity; value creation.
Delighted Niche Driven Entrepreneurial Odyssey: A Case Study of Maharaja Masala Udyog
by H.M. Jha Bidyarthi, Mayur A. Dande, Pawan M. Kuchar, Satya Mohan Mishra, Ashish K. Shrivastava
Abstract: In 50 years (1968 2018), Santosh Satyanarayanji Didwaniya, the entrepreneur of Maharaja Masala Udyog, Khamgaon led his Udyog from mere 1516 kilograms of mixed spices sale to a monthly turnover of 25,000 kilograms. of Maharaja Mix Garam Masala selling in only three districts, namely, Akola, Buldhana, and Jalna of Maharashtra capturing 75% to -80% of market and claiming an annual growth of 7%-8%. The unbelievably successful entrepreneurial odyssey of Santoshbhai is embedded with single product sale (and hence no diversification ) through zero level distribution channel with a negligible modernization of processing section and a very little modernization of packaging and storage, and use of conventional management method. His consumers are so delighted with the unique taste and flavor of the Maharaja Mix Garam Masala that his market territory is fortified even amidst the presence of many multinational companies (MNCs) and some leading local brands. The case comprises rich knowledge and intense thought provocation relating to entrepreneurship and innovation management based on traditional management practices. and niche marketing concepts. Ignorance is no excuse in the eyes of law but the proprietor of this firm has been many a times victim of his ignorance of government rules and regulations encompassing small industries which has been his major challenge.
Keywords: niche market; entrepreneurship; product positioning; innovations; consumer delight.
Dare to Defy the Challenges of Online Business
by Ruchi Jain, Ruchi Khandelwal
Abstract: The Innerwear industry is one of the less researched businesses in India and is dealt as niche vertical of apparel industry. For the yesteryears customers, buying innerwear was a covert and backroom affair but globalization, Internet and bright entrepreneurial ideas have changed the trajectory. Taking leverage of changing industry dynamics, a budding entrepreneur- Pallavi Khandelwal dared to step into this less explored territory. She banked upon her entrepreneurial skills and strategic decision-making for creating an identity through her internet- based startup to optimize the opportunity and defy the challenges of online business arena
The case serves as the setup to elaborate the aspirations and obstacles confronted by a budding entrepreneur. It provides perfect background to understand how strategic options, resource requirements and Critical Success Factors (CSFs) undergo transformation with the different stages of business life cycle.
Industry analysis conducted through references gathered from various reports by business consultancies, industry players, and whitepapers written on this field accompanied an in-depth personal interview with the protagonist Pallavi Khandelwal for establishing facts and data used in the case. Literature review and academic experience of authors steered to establish the theoretical underpinning of the case.
Keywords: Innerwear industry; Entrepreneurial Opportunity; Bootstrapping; Critical Success Factors (CSFs); Entrepreneurial Decision-making.
Show it with Feeling: Performed Emotions in Critical Sensemaking
by Eeva Aromaa, Päivi Eriksson, Tero Montonen
Abstract: This article draws attention to emotion in sensemaking within small entrepreneurial organisations. More specifically, it illustrates how performed emotion is related to enactment of a formative context, sensemaking and agency. The article also enriches the critical sensemaking heuristic by exploring a conversation between a leader and employees concerning adoption of a new online service. The analysis is based on videotaped data gathered from a two-year study of a franchise-based rental and real estate company. The contributions of the article are twofold: (1) it argues that performed emotions are important because they may have an influence on the sensemaking of others and the possibility of exercising agency and (2) it demonstrates that videotaped material is a fertile source of data for studies on critical sensemaking in small entrepreneurial organisations.
Keywords: emotion; critical sensemaking; formative context; agency; franchising; video.
University Spin-off Managers and the Ideal Funding Process
by Olli-Matti Nevalainen, Paivi Eriksson, Tero Montonen
Abstract: This article explores the university spin-off financing process through the experiences of the managers who act as surrogate entrepreneurs in these companies. Based on narrative interviews, managers experiences of the financing process were analyzed through the meta-micro narrative approach. The findings highlight how managers micro-narratives construct particular understandings of the ideal financing process for university spin-off companies, as represented by the meta-narrative. In managers micro narratives, local understandings of the values, roles and contributions of different investors during different funding cycles are drawn from and reproduced, but also challenged through alternative narratives. The findings contribute to a discussion of entrepreneurial and spin-off finance by illuminating the interplay of different investors from the entrepreneurs perspective, which is situated in a wider social context.
Keywords: Entrepreneurial finance; university spinoff; surrogate entrepreneur; spin-off manager; meta-narrative; micro-narrative.