International Journal of Entrepreneurial Venturing (9 papers in press)
Reorganisation success in bankruptcy
by Stefan Mayr, Christine Mitter, Christine Duller, Viktoria Mooshammer
Abstract: We examine, how entrepreneur experience, characteristics and commitment impact the success of a firms reorganisation. We refer to the resource-based view and upper echelons theory as a theoretical basis. Empirical research is based on a sample of 158 bankrupt Austrian SMEs. To test our model, we applied bivariate analyses and logistic regression. The personality of the entrepreneur, in particular strong dynamic-creative talents, as well as concentrated ownership and financial contributions as reflections of owners commitment appear to be important drivers for overcoming a crisis successfully. While management and industry experience of the entrepreneur as well as education seem not to influence reorganisation success, having a reorganisation plan appears to be the most decisive factor. Our findings indicate that the entrepreneurial traits that are essential for company growth and the avoidance of failure do not impact the success of the firms reorganisation.
Keywords: reorganisation; entrepreneur characteristics; SMEs; financial crisis; bankruptcy.
This article is being considered for Open Access
COWORKING SPACES: PLACES THAT STIMULATE SOCIAL CAPITAL FOR ENTREPRENEURS
by Victor Cabral
Abstract: This study examines how social networking facilitated by coworking spaces help entrepreneurs. Drawing on previous research in the different social science disciplines, a conceptual model is proposed that links coworking space interventions to social capital, and performance benefits. The model distinguishes three coworking interventions, i.e. design of the physical space, facilitative tools, and community management. Furthermore, the model differentiates bridging and bonding social capital. Nineteen interviews were conducted with entrepreneurs who work in three coworking spaces. The findings confirm the relationship between coworking space interventions, bridging and bonding social capital, and performance benefits. Theoretically, this study contributes in developing further knowledge about the increasing social value of coworking spaces. Managerially, this study highlights how the curation of collaborative workspaces can help promoting social capital as well as better conditions for individuals who seek to work in social environments.
Keywords: Bridging social capital; Bonding social capital; Social networks; Coworking spaces; Performance.
Macroenvironmental Organizational Practices Adopted by Innovative Small and Medium Enterprises: A Study with Brazilian Entrepreneurs
by Eugênio De Oliveira Simonetto, Daniel Arenhardt
Abstract: Despite the large number of existing researches on innovation in small and medium-sized enterprises (SMEs),few studies have so far deepened the organizational practices that innovative SMEs adopt in their daily lives,especially in developing countries.Based on in-depth interview data, and preceded by an extensive literature review,this study presents organizational practices used by innovative SMEs operating in Brazil.The results demonstrate that the use of public funding, cooperation/collaboration with customers, suppliers, universities and research institutes, the presence in the international market and the location close to the logistics chain are procedures adopted by small innovative companies in the country.On the other hand, it was evidenced that the excess of bureaucracy to access public resources, to establish partnerships with universities and export procedures interfere in the performance of innovative companies In addition,it was found that participation in corporate networks and location in an innovative environment are not important for the companies.
Keywords: Innovative small and medium enterprises; organizational practices; bureaucracy; entrepreneurs; SMEs.
Revising the Taxonomy of Corporate Accelerators: Moving towards an Evolutionary Perspective
by Philipp Veit, Alexander Kramer, Dominik K. Kanbach, Stephan Stubner
Abstract: Corporate accelerators have become integral actors in entrepreneurial ecosystems. They are heterogeneous and rapidly developing entities differing significantly in objectives and design. In this article, we provide a comprehensive corporate accelerator taxonomy and present its evolution over time. We analyse the population of corporate accelerator programmes active in Germany in late 2019. Building on a unique dataset of 87 semi-structured interviews with managing directors of corporate accelerators, participating startups and corporate documents, we derive distinctive archetypes, differing in strategic objectives and defining characteristics. Based on this contemporary taxonomy, we discuss how corporate accelerators have evolved over recent years and delimit them to similar concepts such as incubators. Thereby, we contribute a holistic understanding of corporate accelerator commonalities and differences and provide the foundation for an evolutionary perspective to the field of corporate accelerator research. For entrepreneurial practice, we add novel insights on the experience-based learnings behind a considerable archetype evolution.
Keywords: corporate accelerator; accelerator taxonomy; accelerator evolution; corporate venturing; technology business incubation; startup assistance programmes;.
The role of trust in government and institutional environment in future business climate
by Gentjan Çera, Edmond Çera, Humberto Ribeiro, Sadik Maloku
Abstract: Though numerous studies have focused on the relationship between institutional environment shape entrepreneurship, yet it is not clear enough the effects of institutional constraints and institutional trust on future business climate. This study aims to investigate these relationships in the context of a transition country. The research combines two perspectives: institution theory and institutional trust. The data are collected using a face-to-face survey. Three ordinal regressions were performed in a dataset of 393 small and medium-sized enterprises from Albania. The results contribute into understanding the nature of entrepreneurship in a transition setting. After controlling for firm characteristics, analyses revealed that future business climate is negatively influenced by legal environment-related constraints, and positively by trust in government. Thus, favourable business climate can be achieved by applying not heavily business legislation and regulation framework, and by building trust in institution. This paper offers insights for scholars studying entrepreneurship and institutional environments.
Keywords: entrepreneurship; institutional constraints; institutional trust; future business climate; ordinal regression; Albania.
When Opportunity Knocks: How the Individual Opportunity Nexus Explains Evaluations of New Business Models
by Patrick Spieth, Christian Klusmann, Sascha Klein
Abstract: The business model concept represents an important assisting mechanism in the venture creation process. However, in the light of opportunity evaluation - a fundamental concept in entrepreneurship literature - the role of the business model lacks clarity. Therefore, we synergise insights from entrepreneurship and business model research. In contrast to previous research that emphasised the antecedents of entrepreneurial intentions, we propose and test quantitatively a causal model with an experimental research design, concerning the link between an individuals general entrepreneurial intention and the evaluation of opportunities. Additionally, we investigate the moderating influence of cognitive decision-making patterns, allowing to contribute to the understanding of cognitive biases in the venture creation. Finally, our empirical investigation offers contributions to both entrepreneurship and business model research by highlighting the role of the business model as an opportunity evaluation concept that accounts for intentional and cognitive differences of individual entrepreneurs and non-entrepreneurs.
Keywords: Entrepreneurship; Opportunity Evaluation; Business Model; Business Model Innovation; Entrepreneurial Intention; Experimental Research Design.
Evaluation of Tech Ventures Evolving Business Models: Rules for Performance-related Classification
by Marc König, Monon Enjolras, Christina Ungerer, Mauricio Camargo, Guido Baltes
Abstract: At the early stage of a successful tech ventures life cycle, it is assumed that the business model will evolve to higher quality over time. However, there are few empirical insights into business model evolution patterns for the performance-related classification of early-stage tech ventures. We created relevant variables evaluating the evolution of the venture-centric network and the technological proposition of both digital and non-digital ventures business models using the text of submissions to the official business plan award in the German State of Baden-W
Keywords: network theory; business model dynamics; life cycle; rough set theory; principal component analysis; tech ventures.
More than words: How press releases predict the performance of start-ups
by Leonard Stuckenborg, Johannes Klein, Jens Leker
Abstract: This study analyses the predictive power of press releases for the performance of FinTech start-ups. Using quantitative content analysis, we investigate a sample of 1,570 press releases, issued between 2007 and 2016, and refer to the structural, linguistic and content elements of these business disclosures. Our results suggest that the sentiment, complexity, psychological distance and future-orientation of announcements are positively associated with the FinTechs performance, while a negative interaction is revealed for the frequency. With regard to the content categories, we provide evidence that news about financing rounds, partnerships, and business development are positively related to the venture growth.
Keywords: FinTech; quantitative content analysis; start-ups; business disclosures; press releases; sentiment; entrepreneurship; firm performance; venture growth; small business development.
Assessing Risk in Lending Crowdfunding: An Investor and Platform Manager Perspective
by Susana Bernardino, José Freitas Santos
Abstract: Lending crowdfunding (CF) is a new promising funding mechanism. Although all the potentials offered, CF also involves some risks, mainly the credit risk that is taken by crowdfunders. This investigation intends to understand if the risks involved in an operation of lending CF are assessed in the same way either by crowdfunders and CF platform managers. This study uses a quantitative method, to examine the data related to the operations performed in a Portuguese lending CF platform (Raize). The results indicate that the interest rate charged is influenced by the organization and loan characteristics although the major determinant is the organizations risk classification. There is also evidence of some convergence within the evaluation made by the CF platform staff members and the crowdfunders. However, investors and the staff of Raize platform have different perceptions of the risks involved in a lending operation as investors applied slightly higher interest rates.
Keywords: Crowdfunding; lending crowdfunding; risk assessment; crowdfunders; crowdfunding platforms; Portugal.