ACE research vignette 038 : Cracking the start-up code : does it matter when you do what?

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. This vignette deals with the process of new venture creation, and specifically the sequence in which different ‘start-up activities’ are undertaken.

Power law distributions in entrepreneurship : implications for theory and research

A long-held assumption in entrepreneurship research is that normal (i.e., Gaussian) distributions characterize variables of interest for both theory and practice. We challenge this assumption by examining more than 12,000 nascent, young, and hyper-growth firms. Results reveal that variables which play central roles in resource-, cognition-, action-, and environment-based entrepreneurship theories exhibit highly skewed power law distributions, where a few outliers account for a disproportionate amount of the distribution's total output. Our results call for the development of new theory to explain and predict the mechanisms that generate these distributions and the outliers therein. We offer a research agenda, including a description of non-traditional methodological approaches, to answer this call.

ACE research vignette 040: Three steps towards more corporate entrepreneurship within an organisation

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. In this vignette, Henri Burgers investigates what managers can do to make their firm more entrepreneurial.

On the relevance of travel journalism : An introduction

Not many people will be instantly familiar with British woman Dale Sheppard-Floyd, but – at least symbolically – she represents a significant milestone in the development of travel and tourism. In fact, the milestone was so significant that the United Nations World Tourism Organization booked Madrid’s venerable Museo del Prado to announce to the world’s media her visit to Spain on 13 December 2012. For Ms Sheppard-Floyd’s arrival for a three-day trip meant that more than one billion times in that year, someone had crossed a border as a tourist. An astounding number, considering that, in 1950, there had been only 25 million tourist arrivals worldwide, and even only two decades previously – in 1990 – the number had been less than half at 435 million arrivals (World Tourism Organization, 2012a, 2012b). While people have traveled for pleasure for millennia (Towner, 1995), tourism really came into its own with the expansion of the middle classes in the 19th and 20th century, and today it is considered the world’s largest business sector, with unprecedented numbers of people venturing outside of their immediate environments to explore the world around them. In 2012, travel and tourism’s total contribution to the world economy amounted to a staggering $6.6 trillion, or 9 per cent of GDP (World Travel & Tourism Council, 2013). More than 260 million jobs were generated by it worldwide, which equates to one in every 11 jobs across the globe. While there were some hiccups during the Global Financial Crisis, growth in 2012 was stronger than in other industries, such as manufacturing, financial services and retail (World Travel & Tourism Council, 2013)...

Data replication and extension: A commentary

Honig and Samuelsson (2014) and Delmar (2015) recently had an exchange in this journal related to a replication-and-extension attempt of two papers which originally arrived at different conclusions based on the same data set. This commentary provides further clarification on the issues and links the debate to broader issues scholarly culture and practices in entrepreneurship research.

Bricolage and early stage firm performance

Bricolage is one way firms innovate in the midst of resource constraints. In this thesis bricolage in entrepreneurial firms is investigated as is its impact on firm performance. The research provides empirical tests of bricolage and firm performance and tests environmental dynamism and team compositions as moderating effects that impact the bricolage-performance relationship. The limits of bricolage during firm creation are also explored. This research offers several novel theoretical contributions and some suggestions for entrepreneurs who typically use bricolage in attempts of firm creation.

The Library beyond (just) the book: Collaboration and co-working spaces for new technology and new technological practices

Libraries have often been first adopters of many new technological innovations, such as, punch cards, computers, barcodes, and e-book readers. It is thus not surprising that many libraries have embraced the advent of the internet as an opportunity to move away from just being repositories of books, towards becoming ideas stores and local network hubs for entrepreneurial thinking and new creative practices. This presentation will look at the case of “The Edge” – an initiative of the State Library of Queensland in Brisbane, Australia, to establish a digital culture centre and learning environment deliberately designed for the co-creation and co-construction of knowledge. This initiative illustrates the potential role of libraries as testing grounds for new technologies and technological practices, which is particularly relevant in the context of the NBN rollout across Australia. It also provides an example of new engagement strategies for innovative co-working spaces that are a vital element in a trend that sees professionals, creatives and designers leave their traditional places of work and embrace the city as their office.

The dual nature of information systems in enabling a new wave of hardware ventures: Towards a theory

Hardware ventures are emerging entrepreneurial firms that create new market offerings based on development of digital devices. These ventures are important elements in the global economy but have not yet received much attention in the literature. Our interest in examining hardware ventures is specifically in the role that information system (IS) resources play in enabling them. We ask how the role of IS resources for hardware ventures can be conceptualized and develop a framework for assessment. Our framework builds on the distinction of operand and operant resources and distinguishes between two key lifecycle stages of hardware ventures: start-up and growth. We show how this framework can be used to discuss the role, nature, and use of IS for hardware ventures and outline empirical research strategies that flow from it. Our work contributes to broadening and enriching the IS field by drawing attention to its role in significant and novel phenomena.

The sweet aroma of success: Modification of products for new markets in the case of TORQ by Di Bella Coffee

In 2002, Phillip Di Bella’s childhood passion for coffee and keen entrepreneurial spirit led him to establish a small coffee roasting warehouse in in the inner suburbs of Brisbane (Di Bella, 2012). With a keen sense of direction and passion for his coffee products and providing unparalleled customer service, Di Bella Coffee quickly grew to become a key player in the coffee roasting scene. This passion for the ultimate coffee experience is evident in the firm’s logo ‘Di Bella Coffee Inspires Passion’. Phillip Di Bella stated that ‘the common denominator of this company is about inspiration and passion. We are not a coffee company, we are a people company. You know, are we inspiring you from the moment you walk in the door to the moment you leave. If you are not feeling inspired then we haven’t done our job properly as a company’. Fundamentally, providing the ultimate coffee experience, as detailed in the following case is one in which focuses on the coffee consumption experience, not the coffee itself. Over that last 10 years Di Bella Coffee has constantly strived for the ultimate coffee, while expanding business operations into the booming Asian coffee market, establishing headquarters in Shanghai in 2010. In 2011, Di Bella Coffee commenced their second international venture with the launch of operations in India (Di Bella Coffee, 2012); followed shortly by the creation of a new category of coffee, set to revolutionise to coffee industry. The fusion of two traditional forms of coffee; espresso coffee and instant coffee, to create a third category- espresso instant, led to the development of TORQ by Di Bella.

The influence of technology-mediated environments on international business experience for internationalisation: Does international experience matter?

This paper examines the role and importance of international business experience for firms operating in technologically-mediated environments. Although the key success factors of international expansion have been subject to extensive research in the international business literature, the analysis of technology-mediated environments on international business experience remains limited. This finding is unexpected given that the Internet and the technologies that have enabled it have profoundly transformed the ways in which international business is conducted. This is especially so for firms in the Australian region where the Internet has allowed business to access the scale of markets they need to grow and operate globally (Google and PWC, 2015). Given that businesses of the future will need to innovate quicker and more effectively in online settings to remain competitive, it seems appropriate that we re-visit the more traditional facets of internationalisation; such as the necessity of international business experience for firm performance. In doing so, the empirical section of this paper focuses on twelve Australian international entrepreneurial firms, who in varying degrees utilise technology to leverage their internationalisation activities. The findings suggest that international entrepreneurs with lower levels of international business experience still achieve international performance outcomes. The findings indicate that firms are recognising that the ability to adapt and evolve quickly in technologically-advanced settings is imperative. The findings also suggest that international entrepreneurs are relying less on traditional facets of international business experience, and are learning in self-taught or autodidactic ways. This is because businesses in the current global climate are now operating in complex and highly dynamic environments, characterised by rapid change; thus, the findings suggest that international business experience is becoming less important due to the evolving nature of international business environments.

ACE Research Vignette 044: Can entrepreneurship be taught (II)? Further Evidence

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international entrepreneurship researchers. This vignette, written by Professor Per Davidsson, examines new evidence on whether entrepreneurship education and training leads to more entrepreneurial action and success.

Academic entrepreneurship: A multilevel examination of individual, subunit and organizational effects

This study utilizes a multilevel approach to both estimate the relative importance of individual, subunit, and organization effects on entrepreneurial intentions in academia, as well as to investigate specific factors within the subunit effect and their interactions with other levels. Using a dataset of 2,652 researchers from 386 departments in 24 European universities, our findings reveal that intra-university differences, caused by the influence of the department, should not be ignored when studying academic entrepreneurship. Whereas researchers’ entrepreneurial intentions are mostly influenced by individual differences, department membership explains more variation than the university as a whole. Furthermore, drawing upon organizational culture literature, we identify a department’s adhocracy culture, characterized by flexibility and an external orientation, to be positively related to entrepreneurial intentions. Finally, consistent with trait activation theory, we find that strong adhocracy cultures reinforce the positive association between proactive personality and entrepreneurial intentions. This effect is further intensified when the university also has a technology transfer office with a substantial size. Our results have relevant implications for both academics and practitioners, including university managers, department heads and policy makers.

Bricolage and firm performance: The moderating role of the environment

The behavioral theory of “entrepreneurial bricolage” attempts to understand what entrepreneurs do when faced with challenges and constraints. Most research about bricolage, defined as “making do by applying combinations of the resources at hand to new problems and opportunities” (Baker & Nelson 2005: 333), has been qualitative and inductive (Garud & Karnoe, 2003). Although this has created a small body of rich descriptions and interesting insights, little deductive theory has been developed and the relationship between bricolage and firm performance has not been systematically tested. In particular, prior research has suggested bricolage can have both beneficial and harmful effects. Ciborra’s (1996) study of Olivetti suggested that bricolage helped Olivetti to adapt, but simultaneously constrained firm effectiveness. Baker & Nelson (2005) suggested that bricolage may be harmful at very high levels, but more helpful if used judiciously. Other research suggests that firm environments may play an important role in shaping the outcomes of bricolage (Fisher, 2012). In this paper, we theorize and provide preliminary test of the bricolage-performance relationship and how it is affected by environmental dynamism.

Environmental dynamism as a moderator of the relationship between bricolage and firm performance

Many firms initially face significant resource constraints during attempts to develop and grow (Shepherd et al., 2000). One promising theory that explicitly links to ways entrepreneurial firms respond to resource constraints is bricolage (Lévi-Strauss, 1966). Bricolage is defined as “making do by applying combinations of the resources at hand to new problems and opportunities” (Baker & Nelson, 2005, p. 333). Bricolage aligns with notions of resourcefulness: using what’s on hand, through making do, and recombining resources for new or novel purposes. Through a bias for action and a refusal to enact limitations on the resources that are available to create solutions, bricoleurs can tackle unexpected complex challenges, take advantage of opportunities, and go where most other firms won’t, in their attempts at firm development. Bricolage studies have previously not empirically examined the impact of bricolage on firm performance. Our work contributes to the emerging behavioral theory of bricolage by offering the first empirical test evaluating the impact of bricolage on early stage firm performance (i.e. venture emergence in nascent firms and sales in young firms). Using new product development (NPD) theories of speed of development, co-creation and innovativeness, we theorise that bricolage has a positive effect on early stage firm performance. We then introduce environmental dynamism as a moderator which influences this relationship.

Acquaintance or partner? Social economy organisations, institutional logics and regional development in Australia

The social economy as a regional development actor is gaining greater attention given its purported ability to address social and environmental problems. This growth in interest is occurring within a global environment that is calling for a more holistic understanding of development compared to traditionally economic-centric conceptions. While regional development policies and practices have long considered for-profit businesses as agents for regional growth, there is a relatively limited understanding of the role of the social economy as a development actor. The institutional environment is a large determinant of all kinds of entrepreneurial activity, and therefore understanding the relationships between the social economy and broader regional development processes is warranted. This paper moves beyond suggestions of an economic-centric focus of regional development by utilising institutional logics as a theoretical framework for understanding the role of social enterprise in regional development. A multiple case study of ten social enterprises in two regional locations in Australia suggests that social enterprise can represent competing logics to economic-centric institutional values and systems. The paper argues that dominant institutional logics can constrain or promote the inter-play between the social and the economic aspects of development, in the context of social enterprise.