ACE research briefing paper 002: learning and adaptation in the business creation process

This year marks the completion of data collection for year three (Wave 3) of the CAUSEE study. This report uses data from the first three years and focuses on the process of learning and adaptation in the business creation process. Most start-ups need to change their business model, their product, their marketing plan, their market or something else about the business to be successful. PayPal changed their product at least five times, moving from handheld security, to enterprise apps, to consumer apps, to a digital wallet, to payments between handhelds before finally stumbling on the model that made the a multi-billion dollar company revolving around email-based payments. PayPal is not alone and anecdotes abounds of start-ups changing direction: Sysmantec started as an artificial intelligence company, Apple started selling plans to build computers and Microsoft tried to peddle compilers before licensing an operating system out of New Mexico. To what extent do Australian new ventures change and adapt as their ideas and business develop? As a longitudinal study, CAUSEE was designed specifically to observe development in the venture creation process. In this research briefing paper, we compare development over time of randomly sampled Nascent Firms (NF) and Young Firms(YF), concentrating on the surviving cases. We also compare NFs with YFs at each yearly interval. The 'high potential' over sample is not used in this report.

The role of strategic intelligence in anticipating transnational organised crime: A literary review

Transnational Organised Crime (TOC) has become a focal point for a range of private and public stakeholders. While not a new phenomenon, the rapid expansion of TOC activities and interests, its increasingly complex structures and ability to maximise opportunity by employing new technologies at a rate impossible for law enforcement to match complicates law enforcement’s ability to develop strategies to detect, disrupt, prevent and investigate them. In an age where the role of police has morphed from simplistic response and enforcement activities to one of managing human security risk, it is argued that intelligence can be used to reduce the impact of strategic surprise from evolving criminal threats and environmental change. This review specifically focuses on research that has implications for strategic intelligence and strategy setting in a TOC context. The review findings suggest that current law enforcement intelligence literature focuses narrowly on the management concept of intelligence-led policing in a tactical, operational setting. As such the review identifies central issues surrounding strategic intelligence and highlights key questions that future research agendas must address to improve strategic intelligence outcomes, particularly in the fight against TOC.

‘Argue with us!’: audience co-creation through post-performance discussions.

In this article Caroline Heim explores an avenue for the audience's contribution to the theatrical event that has emerged as increasingly important over the past decade: postperformance discussions. With the exception of theatres that actively encourage argument such as the Staatstheater Stuttgart, most extant audience discussions in Western mainstream theatres privilege the voice of the theatre expert. Caroline Heim presents case studies of post-performance discussions held after performances of Anne of the Thousand Days and Who's Afraid of Virginia Woolf? which trialled a new model of audience co-creation. An audience text which informs the theatrical event was created, and a new role, that of audience critic, established in the process.

Entertainment architecture : constructing a framework for the creation of an emerging transmedia form

This thesis investigates the radically uncertain formal, business, and industrial environment of current entertainment creators. It researches how a novel communication technology, the Internet, leads to novel entertainment forms, how these lead to novel kinds of businesses that lead to novel industries; and in what way established entertainment forms, businesses, and industries are part of that process. This last aspect is addressed by focusing on one exemplary es-tablished form: movies. Using a transdisciplinary approach and a combination of historical analysis, industry interviews, and an innovative mode of ‘immersive’ textual analysis, a coherent and comprehensive conceptual framework for the creation of and re-search into a specific emerging entertainment form is proposed. That form, products based on it, and the conceptual framework describing it are all re-ferred to as Entertainment Architecture (‘entarch,’ for short). The thesis charac-terises this novel form as Internet-native transmedia entertainment, meaning it fully utilises the unique communicative characteristics of the Internet, and is spread across media. The thesis isolates four constitutive elements within Entertainment Architec-ture: story, play, ‘dance,’ and ‘glue.’ That is, entarch tells a story; offers playful interaction; invites social interaction between producer and consumer, and amongst consumers (‘dance’); and all components of it can be spread across many media, but are so well interconnected and mutually dependent that they are perceived as one product instead of many (‘glue’). This sets entarch apart from current media franchises like Star Wars or Halo, which are perceived as many products spread across many media. Entarch thus embraces the commu-nicative behaviour of Internet-native consumers instead of forcing them to de-sist from it, it harnesses the strengths of various media while avoiding some of their weaknesses, and it can sustain viable businesses. The entarch framework is an innovative contribution to scholarship that al-lows researchers to investigate this emerging entertainment form in a structured way. The thesis demonstrates this by using it to survey business models appro-priate to the entarch environment. The framework can also be used by enter-tainment creators — exemplified in the thesis by moviemakers — to delimit the room for manoeuvre available to them in a changing environment.

Strolling through the (post)modern city: Modes of being a flaneur in picture books

The city and the urban condition, popular subjects of art, literature, and film, have been commonly represented as fragmented, isolating, violent, with silent crowds moving through the hustle and bustle of a noisy, polluted cityspace. Included in this diverse artistic field is children’s literature—an area of creative and critical inquiry that continues to play a central role in illuminating and shaping perceptions of the city, of city lifestyles, and of the people who traverse the urban landscape. Fiction’s textual representations of cities, its sites and sights, lifestyles and characters have drawn on traditions of realist, satirical, and fantastic writing to produce the protean urban story—utopian, dystopian, visionary, satirical—with the goal of offering an account or critique of the contemporary city and the urban condition. In writing about cities and urban life, children’s literature variously locates the child in relation to the social (urban) space. This dialogic relation between subject and social space has been at the heart of writings about/of the flâneur: a figure who experiences modes of being in the city as it transforms under the influences of modernism and postmodernism. Within this context of a changing urban ontology brought about by (post)modern styles and practices, this article examines five contemporary picture books: The Cows Are Going to Paris by David Kirby and Allen Woodman; Ooh-la-la (Max in love) by Maira Kalman; Mr Chicken Goes to Paris and Old Tom’s Holiday by Leigh Hobbs; and The Empty City by David Megarrity. I investigate the possibility of these texts reviving the act of flânerie, but in a way that enables different modes of being a flâneur, a neo-flâneur. I suggest that the neo-flâneur retains some of the characteristics of the original flâneur, but incorporates others that take account of the changes wrought by postmodernity and globalization, particularly tourism and consumption. The dual issue at the heart of the discussion is that tourism and consumption as agents of cultural globalization offer a different way of thinking about the phenomenon of flânerie. While the flâneur can be regarded as the precursor to the tourist, the discussion considers how different modes of flânerie, such as the tourist-flâneur, are an inevitable outcome of commodification of the activities that accompany strolling through the (post)modern urban space.

Do balanced skills help nascent entrepreneurs to make progress in the venture creation process?

We analyze longitudinal data on innovative start-up projects and apply Lazear’s jack-of-all-trades theory to investigate the effect of nascent entrepreneurs’ balanced skills on their progress in the venture creation process. Our results suggest that those nascent entrepreneurs who exhibit a sufficiently broad set of skills undertake more gestation activities towards an operational new venture. This supports the notion that a balanced skill set is an important determinant of entrepreneurial market entry.

Action’s place in the venture creation process

This study examined the effect that venture creation action has on the outcomes of nascent entrepreneurship. A conceptual model was developed which proposes action as a fundamental mechanism in venture creation. Thus, action should rightly be considered as a means which transmits the effects of venture resource endowments on to venture creation outcomes. This conceptual model was empirically supported in a random sample of nascent ventures. Ventures with higher levels of human or social capital were found to be more active in venture creation. In turn, more active venture attempts were more likely to achieve improved venture creation outcomes. Further, human and social capital, on their own, exhibit little direct influence on the venture outcomes achieved. These findings confirm action’s central place in the venture creation process.

Re/presenting readings of the indigenous literary terrain

In this study I investigate the spectrum of authoring, publishing and everyday reading of three texts - My Place (Morgan 1987), Jandamarra and the Bunuba Resistance (Pedersen and Woorunmurra 1995) and Carpentaria (Wright 2006). I have addressed this study within the field of production and consumption, utilising amongst others the work of Edward Said (1978, 1983) and Stanley Fish (1980). I locate this work within the holism of Kombu-merri philosopher, Mary Graham's 'Aboriginal Inquiry' (2008), which promotes self-reflexivity and a concern for others as central tenets of such inquiry. I also locate this work within a postcolonial framework and in recognition of the dynamic nature of that phenomenon I use Aileen MoretonRobinson's (2003) adoption of the active verb, "postcolonising"(38). In apprehending selected texts through the people who make them and who make meaning from them - authors, publishers and everyday readers, I interviewed members of each cohort within a framework that recognises the exercise of agency in their respective practices as well as the socio-historical contexts to such textual practices. Although my research design can be applied to other critical arrangements of texts, my interest here lies principally in texts that incorporate the subjects of Indigenous worldview and Indigenous experience; and in texts that are Indigenous authored or Indigenous co-authored.

The relationship between lower intelligence, crime and custodial outcomes : a brief literary review of a vulnerable group

The relationship between intellectual functioning and criminal offending has received considerable focus within the literature. While there remains debate regarding the existence (and strength) of this relationship, there is a wider consensus that individuals with below average functioning (in particular cognitive impairments) are disproportionately represented within the prison population. This paper focuses on research that has implications for the effective management of lower functioning individuals within correctional environments as well as the successful rehabilitation and release of such individuals back into the community. This includes a review of the literature regarding the link between lower intelligence and offending and the identification of possible factors that either facilitate (or confound) this relationship. The main themes to emerge from this review are that individuals with lower intellectual functioning continue to be disproportionately represented in custodial settings and that there is a need to increase the provision of specialised programs to cater for their needs. Further research is also needed into a range of areas including: (1) the reason for this over-representation in custodial settings, (2) the existence and effectiveness of rehabilitation and release programs that cater for lower IQ offenders, (3) the effectiveness of custodial alternatives for this group (e.g. intensive corrections orders) and (4) what post-custodial release services are needed to reduce the risk of recidivism.

Entrepreneur optimism and the new venture creation process

By integrating two theoretical approaches to entrepreneurship research, the psychology of the entrepreneur and the entrepreneurship process, this paper proposes a new conceptual model examining entrepreneur behaviour and emotion across the new venture development process. Existing macro level research on the new venture creation process recognises the entrepreneur as a central agent in the process yet generally avoids, at each stage of the process, an examination of the micro level psychological experiences of the individual entrepreneur. Similarly, behavioural research examining entrepreneur individual differences has neglected to systematically explore the emotion and behaviour of the entrepreneur across the cycle of the new venture creation process. We propose a conceptual framework that integrates the exploitation phase of the new venture creation process with the psychological capital element of optimism and behaviour of the individual entrepreneur. Propositions for future research to facilitate deeper insight into the impact of entrepreneur behaviour and emotion on the new venture creation process and ultimately the success or failure of the new venture are offered.

Design process excludes users : the co-creation activities between user and designer

User needs are a fundamental element of design. If the design process does not properly reflect user needs, the design will be severely compromised. Therefore, it is worthwhile to investigate how the user is, and user needs are, understood in the design process. In this article, three accepted linear process models for web site and interactive media design are reviewed in terms of the designer and user participation. The article then proposes a user-evolving collaborative design process which is built on co-creation activities between designer and user. Co-creation activities across the entire design process structurally and ontologically reposition the users, and user needs, centrally, which allows the designers to holistically approach to the user needs through building a partnership with the users. Co-creation creates an equal evolving participatory process between user and designer towards sharing values and knowledge and creating new domains of collective creativity.

Not a dirty word : arts entrepreneurship and higher education

While the majority of creative, performing, and literary artists are self-employed, relatively few tertiary arts schools attempt to develop capabilities for venture creation and management (and entrepreneurship more broadly) and still fewer do so effectively. This article asks why this is the case. It addresses underlying conceptual and philosophical issues encountered by arts educators, arguing that in all three senses of the term: new venture creation; career self-management; and being enterprising, entrepreneurship is essential to career success in the arts. However, the practice of entrepreneurship in the arts is significantly different from the practice of entrepreneurship in business, in terms of the artist’s drivers and aims, as well as the nature of entrepreneurial opportunities, contexts and processes. These differences mean that entrepreneurship curricula cannot simply be imported from Business schools. This article also examines the arts-idiosyncratic challenge of negotiating distinctive and potentially conflicting entrepreneurial aims, using career identity theory. It concludes by suggesting strategies by which adaptive entrepreneurial artist identities can be developed through higher education programs.

Just give me the facts? literalism versus symbolism in B2B advertising

For decades the prevailing idea in B2B marketing has been that buyers are motivated by product/service specifications. Sellers are put on approved supplier lists, invited to respond to RFPs, and are selected on the basis of superior products, at the right price, delivered on time. The history of B2B advertising is filled with the advice “provide product specifications” and your advertising will be noticed, lead to sales inquiries, and eventually result in higher sales. Advertising filled with abstractions might work in the B2C market, but the B2B marketplace is about being literal. What we know about advertising — and particularly the message component of advertising — is based on a combination of experience, unproven ideas and a bit of social science. Over the years, advertising guidelines produced by the predecessors of BMA (National Industrial Advertising Association, Association of Industrial Advertising, and the Business/Professional Advertising Association) stressed emphasizing product features and tangible benefits. The major publishers of B2B magazines, e.g., McGraw-Hill, Penton Publishing, et al. had similar recommendations. Also, B2B marketing books recommend advertising that focuses on specific product features (Kotler and Pfoertsch, 2006; Lamons, 2005). In more recent times, abstraction in advertising messages has penetrated the B2B marketplace. Even though such advertising legends as David Ogilvy (1963, 1985) frequently recommended advertising based on hard-core information, we’ve seen the growing use of emotional appeals, including humor, fear, parental affection, etc. Beyond the use of emotion, marketers attempt to build a stronger connection between their brands and buyers through the use of abstraction and symbolism. Below are two examples of B2B advertisements — Figure 1A is high in literalism and Figure 1B is high in symbolism. Which approach — a “left-brain” (literal) or “right brain” (symbolic) is more effective in B2B advertising? Are the advertising message creation guidelines from the history of B2B advertising accurate? Are the foundations of B2B message creation (experience and unproven ideas) sound?

Engagement, persistence, progress and success as theoretically distinct aspects of business creation processes

Starting from the vantage point that explaining success at creating a venture should be the unique contribution—or at least one unique contribution—of entrepreneurship research, we argue that this success construct has not yet been adequately defined an operationalized. We thus offer suggestions for more precise conceptualization and measurement of this central construct. Rather than regarding various success proxies used in prior research as poor operationalizations of success we argue that they represent other important aspects of the venture creation process: engagement, persistence and progress. We hold that in order to attain a better understanding of venture creation these constructs also need to be theoretically defined. Further, their respective drivers need to be theorized and tested separately. We suggest theoretical definitions of each. We then develop and test hypotheses concerning how human capital, venture idea novelty and business planning has different impact on the different assessments of the process represented by engagement, persistence, progress and success. The results largely confirm the stated hypotheses, suggesting that the conceptual and empirical approach we are suggesting is a path towards improved understanding of the central entrepreneurship phenomenon of new venture creation.