International Journal of Entrepreneurial Venturing (9 papers in press)
What It Takes to Succeed as an Entrepreneur: The Self-Assessment
by ANAS ALBAKRI
Abstract: This study explored the importance of Passion, Self-discipline, Confidence and Strong Backbone of entrepreneurs in Qatar to be successful. In addition, the study explored the main drivers and obstacles that entrepreneur faced in Qatar. The survey instrument was administered in both on-line and hard copy formats depending on the preferences of the respondents. Several different methods were used to analyze the primary data collected for this study, including the Chronbachs alpha and factor analysis to test for the reliability of the variables. In addition, a one-way ANOVA and an independent samples test (i.e., Levene's Test for Equality of Variances) were used to analyze the variables in the various domains that were operationalized in the survey instrument which were the focus of this study. A close look at the scale of self-assessment of entrepreneurs reveals a positive overall average of 6.75, implying that factors of self-assessment have a positive influence on a successful entrepreneur. Keywords: Entrepreneur, entrepreneurship, risk, emerging economies, new entrepreneurs, self-assessment, passion, self-discipline, confidence Abbreviations: GDP: Gross domestic product
Keywords: Entrepreneur; entrepreneurship; risk.
Dynamic Capabilities for Opportunity Exploration: Insights from an Explorative Case Study
by Sandra Baumbach, Anna Maria Oberlaender, Maximilian Röglinger, Michael Rosemann
Abstract: Digital technologies offer organizations new opportunities. However, unlike well-defined problem-response strategies (e.g., Lean Management), it remains elusive how to identify and leverage opportunities, particularly for public sector organizations. As extant knowledge lacks corresponding theory-guided and empirically validated opportunity management prac-tices, this study provides insights on opportunity management practices through an explora-tory case study. The case of interest is Queensland Urban Utilities, a utility provider which developed a strong focus on opportunity exploration despite operating in a low-competition environment. Building upon organizational ambidexterity and dynamic capabilities as theo-retical lenses, we present a conceptual framework distinguishing two opportunity types, namely core and new business opportunities. Along this framework, we present 15 practice areas and actionable practices, supported by real-life examples. Thereby, we identify two facets of exploration demanding divergent capabilities to sense and seize opportunities. Our study contributes to the understanding of exploration capabilities and supports practitioners in developing opportunity management practices.
Keywords: Opportunity; opportunity management; organizational ambidexterity; opportunity exploration; dynamic capabilities; case study research; single case study.
Sharing economy: a bibliometric analysis of the state of research
by Sascha Kraus, Matthias Filser, Jonathan Spitzer, Norbert Kailer, Victor Tiberius, Ricarda B. Bouncken
Abstract: The sharing economy has received increased attention in entrepreneurship research, resulting in a complex research landscape that is hard to overlook. Using a bibliometric analysis, we aim to further synthesize the field by 1) summarizing the most important definitions given by extant literature to capture the common understanding of the sharing economy, 2) identifying three thematic clusters based on the top 20 most cited publications, 3) conducting a citation analysis to show interdependencies between all authors, and 4) identifying the research methods used in the SE publications. Our results show) many definitions with different emphases, 2) conceptualisation, collaborative consumption/ownership and the disruptive character of the sharing economy as three dominant research clusters, 3) a fairly even citation practice allowing for unbiased future research, and 4) that conceptual publications and quantitative as well as qualitative studies are fairly evenly published.
Keywords: Bibliometrics; business models; citation analysis; collaborative consumption; disruption; literature review; regulations; sharing economy.
Digital due diligence activities and goal setting in equity crowdfunding: exploring the differences between novice and experienced investors
by Frederik J. Riar, Christoph Hienerth, Morten Berg Jensen
Abstract: Investor background can have major implications for decision-making processes in start-up financing. We investigate the differences between novice and experienced investors in equity crowdfunding. To date, empirical information about the specifics of these investor types in the crowdfunding literature is limited, as most studies do not investigate the micro level, i.e. the actions and decisions of individuals. Our empirical results, based on data from a major European equity crowdfunding platform, show similarities but also clear differences among the different types of investors with regard to information search, communication, signaling effects, and investment motives. The insights of our study contribute to the crowdfunding literature by developing a better understanding of crowd investor types active in crowdfunding. Moreover, our findings specifically contribute to research on information assembly, communication, signaling, and investment motives in equity crowdfunding.
Keywords: Crowdfunding; investor types; due diligence; decision-making; entrepreneurship.
The effects of managerial preferences on the financial behaviour of small firms: a demand-side perspective
by Christopher Weigand, Reinhard Schulte
Abstract: In this study, we argue that the financial behaviour of small firms is largely affected by the preferences of owners, who aim for either independence or wealth maximization. By analysing survey data from Germany, we observe that owners with a preference for minimizing capital costs and maintaining decision-making autonomy deploy more internal financing and raise short-term debt to meet temporary capital requirements. In contrast, owners raise more long-term debt when banks also provide non-financial complementary resources, but they seem to acquire external equity instead of debt to develop new resources and capabilities in collaboration with new co-owners. In light of our findings, we propose a dichotomy of a financial bootstrapping and an added-value pecking-order that small firm owners follow depending on their overarching goal. Overall, our findings indicate that small firm capital acquisition in Germany nowadays reflects more demand-driven rather than supply-constrained behaviour.
Keywords: small business finance; small firm capital acquisition; entrepreneurial finance; pecking-order hypothesis; financial decision-making; capital structure decision; small firm financing.
Play, Print, and Share: 3D printing enthusiasts as user innovators and entrepreneurs
by Lars Bengtsson, Izabelle Bäckström
Abstract: The main aim of this paper is to explore how these 3D printing enthusiasts make sense of their 3D printing activities online and offline, and how these activities can be explained in terms of the theoretical concepts user innovation and user entrepreneurship. This paper builds on an in-depth interview study and reveals four ideal types (Halkier, 2011) of 3D printing enthusiasts: entrepreneurial, hobby, individual, and sharing. Based on the theoretical concepts of user innovation and user entrepreneurship, the four ideal types of 3D printing enthusiasts show varying degrees of willingness to engage in 3D communities and disseminate their ideas and innovations beyond inhouse or in-community use. We contribute to user innovation and user entrepreneurship research by highlighting 3D printing enthusiasts as a specific group of user innovators/entrepreneurs with characteristics especially favourable to the diffusion of their ideas, designs, and innovations peer-to-peer or commercially.
Keywords: 3D printing; user innovation; user entrepreneurship; collaboration; 3D community; diffusion; ideal types.
It wasnt me: entrepreneurial failure attribution and learning from failure
by Frederik J. Riar, Peter M. Bican, Jannes Fischer
Abstract: Can entrepreneurs learn from failure? Using frameworks from attribution theory, we draw on unique qualitative data from entrepreneurs who had experienced failure before re-engaging in entrepreneurial activities. We find that the direction of failure attribution, as either attributed to external or internal causes, affects learning from failure differently and propose that while an excessive focus on self-attribution may harm future prospects of entrepreneurial activity, over-attributing failure to external causes might possibly hinder positive returns from learning from failure. Moreover, external and internal aspects influence how entrepreneurs learn from previously failed ventures. Failure shall not be romanticized, as it entails profound consequences for attribution and its effects on learning. Implications for research on failure, learning from failure, and attribution theory, as well as implications for practice are further discussed. Propositions for future research endeavors are derived.
Keywords: entrepreneurial failure; attribution; learning from failure; entrepreneurship.
What matters most in Technology Venture Valuation? Importance and Impact of Non-Financial Determinants for Early-Stage Venture Valuation.
by Christoph P. Wessendorf, Jared Schneider, Martin A. Gresch, Orestis Terzidis
Abstract: The valuation of early-stage ventures represents a difficult and often subjective task. In an attempt to operationalise and objectivise valuation of early-stage ventures, thereby reducing uncertainty, we analyse non-financial determinants of early-stage technology venture valuation through means of an Analytical Hierarchy Process (AHP) and a Choice- based Conjoint Analysis (CBC). To achieve meaningful results in a challenging research setting, triangulation methods were applied. The data obtained from 75 venture capital investment professionals enable us to quantify the relative importance of relevant determinants and derive their impact on valuation. Our analysis shows that Entrepreneurial Spirit is considered the most important determinant for venture capital investors and a key driver of early-stage technology venture valuation. Next, a strong Unique Selling Proposition impacts value significantly, followed by Intellectual Property and Market Growth. Further, our results demonstrate that valuation determinants do not vary significantly by investor type, i.e. business angel or venture capitalist.
Keywords: New Technology-Based Firm; NTBF; technology venture; valuation determinants; venture capital; entrepreneurial finance; Analytical Hierarchy Process; Conjoint Analysis; .
Communication management of start-ups - An empirical analysis of entrepreneurs communication and networking success on Facebook
by Fabian Eggers, Christian Rudeloff, Sigrid Bekmeier-Feuerhahn, Stefanie Pakura
Abstract: Social networks attract increasing attention from practice and academia, yet social media networks as part of a start-ups strategic communication efforts remain under-studied. To fill this gap, we conceptualize start-up social media communication within the framework of communication management theory. We set up five hypotheses regarding the influence of different communication activities on start-ups communication success and the moderating role of firm age. We collected data through structured questionnaires using a sample size of 244 start-ups in Germany and ran OLS regression analyses. Results indicate that social media communication management is a significant driver of communication success. Two main factors, environmental scanning and networking, are revealed. Furthermore, we find different communication and networking practices depending on the start-ups age: In early phases, ad hoc monitoring, personal networks and business-to-consumer networking are key elements. In contrast, a long-term communication plan, professional networks and business-to-business networking are crucial in later stage start-ups.
Keywords: Communication Management; Networking; Entrepreneurship; Facebook; Marketing; Social Media; Start-Ups.