Strategic Entrepreneurship

We examine the effects of team structure and experience on the impact of inventions produced by scientific teams. Whereas multidisciplinary, collaborative teams have become the norm in scientific production, there are coordination costs commensurate with managing such teams. We use patent citation analysis to examine the effect of prior collaboration and patenting experience on invention impact of 282 patents granted in human embryonic stem cell (hESC) research from 1998 to 2010. Our results reveal that team experience outside the domain may be detrimental to project performance in a setting where the underlying knowledge changes. In stem cell science, we show that interdepartmental collaboration has a negative effect on invention impact. Scientific proximity between members of the team has a curvilinear relationship, suggesting that teams consisting of members with moderate proximity get the highest impact. We elaborate on these findings for theories of collaboration and coordination and its implications for radical scientific discoveries.

We investigate the rapid internationalization of many multinationals from emerging economies through acquisition in advanced economies. We conceptualize these acquisitions as an act and form of entrepreneurship, aimed to overcome the 'liability of emergingness' incurred by these firms and to serve as a mechanism for competitive catch-up through opportunity seeking and capability transformation. Our explanation emphasizes (1) the unique asymmetries (and not necessarily advantages) distinguishing emerging ...

The social network perspective has become an important analytical lens for understanding strategic actions among entrepreneurs. Social theorists offer two competing visions of networks' confi gurations: one of infi nite opportunities for individuals to develop heterogeneous circles of affi liations and the other of constrained opportunities privileging only certain individuals. We draw on this tension to describe three models of network formation-random, small world, and truncated scale free-and apply them to entrepreneurial team formation and resource mobilization strategies undertaken by entrepreneurs. We compare and contrast two models of team formation-a rational process model and an interpersonal relations model-and identify the network contexts under which each is most applicable. Mundane entrepreneurial teams arise within localized clusters and appear unlikely to take advantage of what network theorists have called small world networks, which depend upon bridging ties between clusters. Nonetheless, there are entrepreneurial strategies through which new ventures might achieve the advantages of small world networks. To the extent that new ventures emerge in truncated scale free networks, their founders must work within a highly centralized structure, with its institutionalized standards making team formation and entrepreneurial search more instrumental than within small worlds.

In this article, we examine competitive moves by which fi rms achieve superior performance. In contrast to prior work that has focused on moves and the related competitive advantages of large fi rms, we draw attention to entrepreneurial fi rms. Based on 32 runs of a multi-round experiential simulation and in-depth participant interviews, we fi nd that entrepreneurial fi rms require competitive strategies that are different from those of a control group of comparable large fi rms. Entrepreneurial fi rms that stay below the radar in established markets and are quick to explore in new markets perform better. They succeed in established markets with a strategy that works around large fi rm competition but ultimately surprises them, and in new markets with a strategy that sets the standards of competition swiftly by continuously creating and destroying new strongholds ahead of large fi rms. Overall, successful entrepreneurs use a combination of selective, invisible, and asynchronous strategies that vary depending on whether the market is established or new. Our fi ndings contribute to literatures on evolutionary learning, exploration and exploitation, and competitive dynamics.

We develop a process model of how users, an understudied source of entrepreneurship, create, evaluate, share, and commercialize their ideas. We compare and contrast our model to the classic model of the entrepreneurial process, highlighting the emergent and collective nature of the user's entrepreneurial process. Users are often 'accidental' entrepreneurs who happen upon an idea through their own use and then share it with others; more specifi cally, the development of an idea and subsequent experimentation, adaptation, and preliminary adoption often occur before that idea is formally evaluated as the basis of a commercial venture. Users also tend to engage in collective creative activity prior to fi rm formation-often within the social context provided by user communities-that results in the improvement of ideas. Finally, we provide detailed data on the prevalence of user entrepreneurship in the juvenile products industry.

The purpose of this article is to prove the need to perceive revenues as a manageable variable by applying an active approach to companies' management during the COVIDization of the economy. In this regard, the article illustrates the role of revenues as a factor and as a result. Revenues underlie the formation of all major financial indicators. They are key measures of a company's growth and performance. This dual nature of revenues is revealed in the context of economics, accounting and financial management. Their importance determines the need to adopt an active approach to revenue management of the economy during COVID-19 pandemic or other similar future occurrences. From a theoretical point of view, the active approach has been justified in the context of the classical strategic management methods emphasising the leading role of marketing. The main research hypothesis tested is that in the conditions of a sharp change in the economy during COVIDization, the importance of the active approach of operating revenue management as the main variable (KPI), cannot be understated.

Many incumbent firms respond to the emergence of a disruptive business model by adding the business model into their existing ones. But, not all incumbents perform better after adding new business models to their existing ones; that raises the question about the conditions under which adding a new business model improves incumbent performance. We develop a theoretical framework to address that question. After identifying two types of incumbent assets, complementary and conflicting, we highlight the influence of two managerial choices-timing and organizational mode of the new business model addition-that create opportunities to translate the potential provided by incumbent assets into higher performance. The proposed discriminating alignment thesis states that incumbent performance after new business model addition improves when the incumbent firm aligns complementary assets with earlier addition of the new business model and conflicting assets with an autonomous business unit for the new business model. To test these hypotheses, we analyzed the performance change of those physical store-based retailers that added online retailing as a new business model. The test results supported all hypotheses, and key theoretical and managerial implications are presented.

This research explores the relationship between strategic learning capability-a fi rm's proficiency at generating, and then acting on, strategic knowledge-and entrepreneurial orientation (EO). While theory posits the inevitably of building strategic learning capability from behaving entrepreneurially, there is little empirical research to validate this proposition and even less understanding of how and why EO contributes to strategic learning capability. Empirical results from 110 manufacturing fi rms confi rm the direct effect of EO on strategic learning capability, and support is found for three constructs-structural organicity, market responsiveness, and strategy formation mode-that fully mediate the EO-strategic learning capability relationship.

Strategic entrepreneurship is developing a more entrepreneurial orientation for sustainable competitive advantage. The study established the effect of entrepreneurship management practice for sustainable development among agro-allied businesses in Nigeria. The instrument of data collection is the research questions structured in close-ended five-point Likert scale. The evaluation of the relationship between dependent of sustainable development and independent variables of strategic entrepreneurship management practice was performed using the Ordinary Least Square regression technique. The study found that strategic entrepreneurship management practice has a positive and statistically significant relationship with firm performance in sustainable development. This implies that strategic entrepreneurship management has capacity to sustain development among agro-allied small businesses in Nigeria. It was recommended that the government at various tiers should review business laws adverse to the survival and growth of small businesses to enhance development; identify supportive infrastructures needed to stimulate agro-allied businesses in order to prioritise the execution of infrastructures needed to facilitate technological advancement, boost sustainable development of agro-allied small businesses and the economy as well as equipping intending investors with adequate knowledge of the agro-allied business due to the specialised and delicate nature of agricultural business in Nigeria to avoid losses of investment.

Bu çalışmada, değer yaratmak amacıyla fırsat arama davranışı ile özdeşleştirilebilecek girişimci bir eylemle ile rekabet avantajı geliştirme davranışı ile özdeşleştirilebilecek stratejik bir eylemin eş anlı olarak bütünleştirilmesi olarak tanımlanan yeni bir kavram olan stratejik girişimcilik olgusu kavramsal açıdan irdelenerek bir stratejik girişimcilik modeli geliştirilmiştir. Yazın taraması eşliğinde geliştirilen model, herhangi bir örnekleme yapılmaksızın, tanımlayıcı bir araştırma konusu olarak Borsa İstanbul'da görgül açıdan test edilmiştir. Geliştirilen anket formu BİST -100 Endeksi'nde işlem gören işletmelerde görev yapan katılımcılara iletilmiş; Pearson ve Spearman korelasyon analizleri ile stratejik girişimcilik modelinin alt boyutlarını oluşturan fırsatların ayırt edilmesi, stratejik girişimci düşünce biçimi, stratejik girişimci liderlik, girişimci kültür, stratejik kaynak yönetimi, stratejik yenilikçilik, büyüme, ortalama piyasa değeri ve örgütsel öğrenme arasındaki ilişkiler belirlenmeye çalışılmıştır. Bulgular doğrultusunda, stratejik girişimcilik modelini oluşturan temel boyutların düşük kuvvetliden kuvvetliye uzanan bir aralıkta, buna karşın sıklıkla kuvvetli ve tümüyle pozitif bir ilişki içerisinde olduğunu söylemek mümkündür.

Frank Fetter's contributions to entrepreneurship and the theory of the firm are usually overlooked, even though his original treatments are relevant to both the history of economic thought and contemporary entrepreneurship research. I highlight three ways Fetter's work adds to our understanding of the entrepreneurial process. First, entrepreneurs direct their enterprises via the careful delegation of authority to managers, thereby maintaining residual control over the firm; similar views were pioneered by Frank Knight and the Austrian economists, who continue to study cognate problems like judgmental decision-making and " proxy-entrepreneurship. " Second, Fetter foreshadows Knight's influential distinction between risk and uncertainty, arguing that entrepreneurs bear uncertainty through their investment decisions; however, Fetter adds to Knight's work by explicitly considering the role chance and luck play in entrepreneurial success, a problem still debated in entrepreneurship studies. Third, Fetter argues that scarcity implies the active investment of resources, and thus, the need for entrepreneurship; this view hints at current research on entrepreneurial bricolage, as well as work emphasizing investment rather than opportunity as the defining concept of entrepreneurship. It also provides " microfoundations " for strategic entrepreneurship research.

This research examines the nature of the relationship between entrepreneurial orientation (EO) and small firm performance. The results from a sample of 258 Swedish small firms indicate an inverted U-shaped relationship between EO and small firm performance. Drawing upon resource orchestration theory, we theorize that information and communication technology capability and network capability help small firms overcome their resource-related 'liabilities of smallness' and observe these capabilities to increase the optimal levels and performancerelated returns from EO. In the absence of these capabilities, returns to firm performance from increasing EO were observed to reach harmful levels. The study implications are discussed.

This research explores the relationship between strategic learning capability—a firm's proficiency at generating, and then acting on, strategic knowledge—and entrepreneurial orientation (EO). While theory posits the inevitably of building strategic learning capability from behaving entrepreneurially, there is little empirical research to validate this proposition and even less understanding of how and why EO contributes to strategic learning capability. Empirical results from 110 manufacturing firms confirm the direct effect of EO on strategic learning capability, and support is found for three constructs—structural organicity, market responsiveness, and strategy formation mode—that fully mediate the EO-strategic learning capability relationship. Copyright © 2009 Strategic Management Society.

Applying real options logic, we build and test a multi-level model that explicates the influence of a country's intellectual property protection regime on the effect of human and financial capital on growth aspirations. The results suggest that the strength of the intellectual property regime moderates negatively the relationship between an individual's education and entrepreneurial growth aspirations; and it moderates positively the relationship between an individual's household income and growth aspirations. Intellectual property protection thereby encourages specialization amongst differently qualified entrepreneurs. Our findings support claims that strategic entrepreneurial behaviors cannot be fully understood without giving attention to the context in which those behaviors are observed.

It is also possible that your web browser is not configured or not able to display style sheets. In this case, although the visual presentation will be degraded, the site should continue to be functional. We recommend using the latest version of Microsoft or Mozilla web browser to ...

This article provides an overview of the literature on international entrepreneurship (henceforth, IE). In doing so, we adopt a broad perspective on IE, consistent with the notion that entrepreneurship refers to how opportunities to create future goods and services are discovered, evaluated, and exploited (Venkataraman, 1997). After providing focused summaries of the articles included in the special issue, we outline a research agenda to improve our understanding of the determinants and outcomes of IE. We also highlight several methodological issues of particular importance to IE research.

Strategic entrepreneurship refers to fi rms' pursuit of superior performance via simultaneous opportunity-seeking and advantage-seeking activities. Both small and large fi rms face impediments while pursuing strategic entrepreneurship. While small fi rms' opportunity-seeking skills may be strong, their limited knowledge stocks and lack of market power inhibit their ability to enact the competitive advantages necessary to appropriate value from opportunities the fi rms choose to pursue. In contrast, large fi rms are skilled at establishing competitive advantages, but their heavy emphasis on the effi ciency of their existing businesses often undermines their ability to continuously explore for additional opportunities. Building on a variety of theories, including network, learning, resource-based, and real options, we suggest that collaborative innovation can enable both types of fi rms to overcome their respective challenges. Collaborative innovation is the pursuit of innovations across fi rm boundaries through the sharing of ideas, knowledge, expertise, and opportunities. For small fi rms, we contend that pursuing entrepreneurship collaboratively allows them to preserve their creativity and fl exibility while mitigating the inherent liabilities of smallness. We argue that collaborative innovation permits large fi rms to exploit their advantage-creating skills while concurrently exploring for opportunities outside their current domain. Thus, small and large fi rms that learn how to integrate strategic entrepreneurship and collaborative innovation are well positioned to create wealth.

In developed markets including the United States, family-controlled fi rms, in particular founder-controlled fi rms, have been associated with higher fi rm performance than their nonfamily counterparts. Such family-controlled fi rms have concentrated ownership, which, according to agency theory, reduces agency costs and leads to superior fi rm value. Extant research, however, is not clear whether it is the family control or concentrated ownership that bestows the advantages that lead to enhanced fi rm performance. By examining different types of concentrated ownership, this study evaluates whether family ownership adds value beyond that provided by concentrated ownership. Based on analyses of panel data from the Indian corporate sector, we fi nd that, in general, fi rms with concentrated ownership outperform fi rms with dispersed ownership. Surprisingly, and more importantly, however, we fi nd there are no signifi cant performance differences among family-controlled fi rms and fi rms controlled by either foreign corporations or the state. This result is consistent with the notion that concentrated ownership, not family control, is a key determinant of fi rm performance.

International knowledge is a key intangible resource for international entrepreneurship. Yet, given the liabilities of newness and foreignness, how do new ventures obtain international knowledge? In this study, we draw on the knowledge-based view to investigate both internal and external sources of international knowledge for 206 new ventures. The fi ndings suggest international knowledge may be sourced externally, including from alliance partners, venture capital fi rms, and fi rms in close proximity. Interestingly, and contrary to absorptive capacity arguments, new ventures with limited internationally experienced top management teams benefi ted most from external international knowledge sources.

This study traces the origins of innovative strategies by examining the attributes of 'innovative entrepreneurs.' In an inductive grounded theory study of innovative entrepreneurs, we develop a theory that innovative entrepreneurs differ from executives on four behavioral patterns through which they acquire information: (1) questioning; (2) observing; (3) experimenting; and (4) idea networking. We develop operational measures of each of these behaviors and fi nd signifi cant differences between innovative entrepreneurs and executives in a large sample survey of 72 successful and unsuccessful innovative entrepreneurs and 310 executives. Drawing on network theory, we develop a theory of entrepreneurial opportunity recognition that explains why these behaviors increase the probability of generating an idea for an innovative venture. We contend that one's ability to generate novel ideas for innovative new businesses is a function of one's behaviors that trigger cognitive processes to produce novel business ideas. We also posit that innovative entrepreneurs are less susceptible to the status quo bias and engage in these information-seeking behaviors with a motivation to change the status quo.

Research summary: Entrepreneurs develop innovations, fulfill customer needs, and spur economic growth by recognizing, evaluating, and exploiting opportunities. Despite progress, scholarly understanding of how entrepreneurs achieve these objectives may be incomplete. For instance, little explanation exists for why entrepreneurs may pursue activities seemingly at random, nor is there a clear endpoint to the entrepreneurship process. To address these concerns, we present a framework that integrates sensemaking and structuration perspectives to specify the cognitive and behavioral influences on the entrepreneurship process. Within this framework, entrepreneurs ultimately pursue opportunities through developing and deploying capabilities to create value for customers.

Strategic Entrepreneurship is an activity that enables the firm to take advantage of important opportunities or to cope with consequential environmental threats. Innovation is one of the critical elements of strategic entrepreneurship that supports strategies of firms to achieve and/or sustain competitive advantage in turbulent markets. This contribution presents different innovation strategies for strategic entrepreneurship to increase and/or sustain competitiveness and performance of firms in markets, and also how strategic entrepreneurship could be accompanied by crisis management.

Purpose – The purpose of this paper is to investigate the relationship among strategic entrepreneurship and organizational ambidexterity through exploration and exploitation. Design/methodology/approach – A questionnaire, designed as a self-reported survey, was distributed to individuals working in Middle East University, with a collected sample size of 29 individuals. Findings – Results show that strategic entrepreneurship has a direct positive ef ect on organizational Ambidexterity (exploitation and exploration) activities. Research limitations/implications – This study is the first to integrate Strategic Entrepreneurship with exploration and exploitation outcomes. population was limited to include university leaders who work at Middle East University in Amman, Jordan only. Practical implications – The close connection among strategic entrepreneurship with its dimensions (Entrepreneurial Opportunities Management, Entrepreneurial resource management, Entrepreneurial Culture), and organizational Ambidexterity suggests that evaluating, supporting and training entrepreneurship becomes a vital activity for boards, investors and managers. If management wants to increase exploration, they should pay particular attention to creating a culture that is supportive of Entrepreneurial practices. Organizations should recruit and train leadership for Entrepreneurial strategies and regularly assess culture to ensure a balance between exploration and exploitation activities. Originality/value – The main contribution of this study is highlighting the role of Strategic Entrepreneurship as a main driver for organizational ambidexterity measured by exploration and exploitation activities in academic institutions.

This study examined the infl uence of genetic factors on the tendency to engage in entrepreneurship. We found that, in the particular sample we examined, between 37 and 42 percent of the variance in the tendency of people to engage in entrepreneurship is accounted for by genetic factors. A substantial part of this variance was mediated by the psychological trait of sensation seeking, suggesting that genes affect the tendency of people to engage in entrepreneurship by affecting the distribution of sensation seeking across people.

Corporate venture capital (CVC) investments serve as interfi rm relationships that enable established fi rms to tap into emerging technology markets. Nevertheless, fi rms may also leverage their strategic alliances to this end. Does alliance formation reinforce or attenuate a fi rm's tendency to invest in entrepreneurial ventures? We introduce a resource-based perspective whereby resource complementarity and network resource visibility prompt a reinforcing association between CVC investment and alliance formation. In turn, external resource redundancy and internal resource allocation constraints yield an attenuating effect of alliance formation on CVC investment. Analyzing the alliances and CVC investments of 372 software fi rms during the 1990s, we reconcile these opposing arguments by revealing an inverted U-shaped association between CVC investment and alliance formation. Accordingly, the number of CVC investments fi rst increases, but then decreases, with the number of alliances formed. Moreover, the positive association between CVC investment and alliance formation diminishes as fi rms invest in their internal resource stocks, mature, and accumulate experience with prior CVC investments. We advance strategic entrepreneurship research by elucidating the tendency of established fi rms to engage in CVC investment and by unpacking the complex association between different types of interfi rm relationships that these fi rms leverage.

The age distribution of a population may infl uence aggregate entrepreneurship and economic growth. Because of rigidities in the mobility of resources and the substitutability of employment across age groups, countries whose populations are excessively skewed toward old or young cohorts may experience low levels of entrepreneurial activity. We develop a model characterizing the conditions suffi cient for aggregate entrepreneurship to decrease as a population ages or becomes younger. At a time when poorer countries confront unprecedented increases in population and developed ones see their populations aging, we provide important insights on the relationship between demographic structure, aggregate entrepreneurship, and growth.

Public organizations are relatively understudied in the strategic entrepreneurship literature. In this article, we submit that public organizations are usefully analyzed as entities that create and capture value in both the private and public sectors and that a capabilities lens sheds important new insights on their behavior. As they try to create and capture value, public organizations can act entrepreneurially by creating or leveraging bundles of capabilities, which may then shape subsequent entrepreneurial action. Such processes can involve complex interactions among public and private actors. For example, public organizations often partner with private firms to produce existing products, create new products, and establish new markets which, in turn, generate new capabilities for both public and private actors. Yet such coevolutionary processes are not guaranteed to create value, and capabilities acquired in the pursuit of public interests may, over time, enable activities that damage those same interests. We show how a capabilities approach helps explain the nature and evolution of public organizations and we apply this approach to a series of cases on the growth and diversification of public organizations, the private provision of public goods, and related issues.

This study examines the characteristics that make start-up biotechnology firms attractive alliance partners. We distinguish between firm specific and location-specific characteristics as well as between foreign and domestic corporate partners. We present and test a longitudinal model of alliance development based on data from 64 public biotechnology firms. The results provide evidence that foreign and domestic alliance capital inflows are driven by different factors. Firmspecific factors explain minimal variance in capital inflows from foreign alliance partners; rather, location-specific factors seem to matter more. The reverse is true for domestic alliance partners. Further, our results suggest that firm size moderates the relationship between location-specific factors and capital inflows from foreign alliance partners such that larger firms benefit more when located in technologically munificent environments. D

We contrast the performance consequences of intra-family vs. external ownership transfers. Investigating a sample of all private family firms in Sweden that went through ownership transfers during ten years, we find family firms transferred to external owners outperforming those transferred within the family, but that survival is higher among intra-family transfers. We attribute these performance differences to the long-term orientation

This paper reviews and critiques the "opportunity discovery" approach to entrepreneurship and argues that entrepreneurship can be more thoroughly grounded, and more closely linked to more general problems of economic organization, by adopting the Cantillon-Knight-Mises understanding of entrepreneurship as judgment. I begin by distinguishing among occupational, structural, and functional approaches to entrepreneurship and distinguishing among two influential interpretations of the entrepreneurial function, discovery and judgment. I turn next to the contemporary literature on opportunity identification and argue that this literature misinterprets Kirzner's instrumental use of the discovery metaphor and mistakenly makes "opportunities" the unit of analysis. I then describe an alternative approach in which investment is the unit of analysis and link this approach to Austrian capital theory. I close with some applications to organizational form and entrepreneurial teams.

This paper develops a formal model of the impact of entrepreneurship on macroeconomic performance. It examines the role of entrepreneurs in creating markets for novel products. Entrepreneurs take over the coordination role that in traditional neoclassical economic models is performed by the Walrasian auctioneer. Entrepreneurs specialize in collecting information that permits them to make judgmental decisions about innovation. The quality of their judgment determines the success of innovations, and thereby impacts the long-run performance of the economy. The model demonstrates rigorously that constraints on the supply of entrepreneurship reduce economic performance, and serves to identify the policy instruments that can improve performance by alleviating these constraints. Copyright © 2008 Strategic Management Society.

We consider how a venture capital fi rm's perceived uncertainty in new and uncertain industry environments affects its decisions to retain founder-CEOs at companies they take public. We further consider how the human capital of the founder-CEO, the overall experience of the venture capital fi rm (VCF), and the VCF's specifi c experience with the new industry moderate the relationship between industry-based uncertainty and founder-CEO retention. We explore these issues in the context of 340 venture capital fi rm investments in Internet sector start-ups that went public from 1995 to 2000. We fi nd evidence that industry-based uncertainty decreases the likelihood of founder-CEO retention, that founder-CEO human capital and VCF Internetsector experience decreases the effects of these uncertainties on founder-CEO retention for business-to-business (B2B) fi rms, but increases them for business-to consumer (B2C) fi rms, and that VCF age further decreases the likelihood that the founder-CEOs of B2C fi rms will be retained.