Entrepreneurial network development as a sign of business emergence

This study aims to explain the entrepreneurial processes as developments of entrepreneurial networks. As a theoretical framework, this study adopts the theory of experimentally organized economy and competence blocs. As suggested by this theory, entrepreneurs select profitable innovations and commercialise them. Through logistic regressions on the subjective and objective dependent variables, we find that nascent firms’ various activities to network customers, innovators, investors, and employees are positively associated with the business emergence. This study identifies the roles of entrepreneurs and the other actors in the entrepreneurial processes.

The role of the ethnic enclave in facilitating immigrant business performance and social integration

Chinese immigrant entrepreneurs, known the world over for their successful business practices (Kee, 1994), tend to start businesses within their ethnic enclave. But in a move away from multiculturalism, host countries increasingly fear that immigration and asylum pose a threat to social integration resulting in a lack of social cohesion and a plethora of government programs (Cheong, Edwards, Goulbourne & Solomos, 2007). For many immigrant entrepreneurs, the EE is an integral part of their social and cultural context and the location where ethnic resources reside (Logan, Alba & Stults, 2003). Immigrant entrepreneurs can harness the networks for labor and customers through various ties in their EE (Portes and Zhou, 1996). Yang, Ho and Chang (2010) illustrate in their paper that the Chinese immigrant entrepreneurs (IE) were able to utilize ethnic network resources as their social capital in order to reduce transaction costs and thus enhance business performance. Tilly (1990) explains that immigrants’ reliance on such networks for business or other information minimizes the socioeconomic hardships they would experience in host countries (Raijman & Tienda, 2000). Acquiring jobs in ethnic businesses and establishing businesses within an EE may facilitate migrants’ social integration into the host country (Tian & Shan, 1999). Although an EE has distinct economic advantages for immigrant entrepreneurs, Sequeira and Rasheed (2006: 367) argue that ‘Exclusive reliance on strong ties within the immigrant enclave has a negative effect on growth outside the enclave community.’ Similarly, Drori, Honig and Ginsberg (2010: 20) also propose that ‘The greater the reliance of transnational entrepreneurs on ethnic (versus societal) embedded resources and network structure, the narrower their possibilities of expanding the scope of their business.’ This research asks, ‘What is the role of the ethnic enclave in facilitating immigrant business growth and social integration? This project has the following important aims: A1 To better understand the role of IE, in particular Chinese IE in the Australian economy A2 To investigate the role of the EE in facilitating or inhibiting immigrant business performance A3 To understand how locating their firm inside or outside of the EE will affect the IE’s embeddedness in co-ethnic and nonco-ethnic networks and social integration A4 To understand how an IE’s social network affects business performance and social integration

Ethnic enclave lifecycle : a case study of Chinese restaurants in south east Queensland

Immigrant entrepreneurs tend to start businesses within their ethnic enclave (EE), as it is an integral part of their social and cultural context and the location where ethnic resources reside (Logan, Alba, & Stults, 2003). Ethnic enclaves can be seen as a form of geographic cluster, China Towns are exemplar EEs, easily identified by the clustering of Chinese restaurants and other ethnic businesses in one central location. Studies on EE thus far have neglected the life cycles stages of EE and its impact on the business experiences of the entrepreneurs. In this paper, we track the formation, growth and decline of a EE. We argue that EE is a special industrial cluster and as such it follows the growth conditions proposed by the cluster life cycle theory (Menzel & Fornahl, 2009). We report a mixed method study of Chinese Restaurants in South East Queensland. Based on multiple sources of data, we concluded that changes in government policies leading to a sharp increase of immigrant numbers from a distinctive culture group can lead to the initiation and growth of the EE. Continuous incoming of new immigrants and increase competition within the cluster mark the mature stage of the EE, making the growth condition more favourable “inside” the cluster. A decline in new immigrants from the same ethnic group and the increased competition within the EE may eventually lead to the decline of such an industrial cluster, thus providing more favorable condition for growth of business outside the cluster.

Practical Advice for Entrepreneurs

I am interested in the psychology of entrepreneurship—how entrepreneurs think, decide to act, and feel. I recently realized that while my publications in academic journals have implications for entrepreneurs, those implications have remained relatively hidden in the text of the articles and hidden in articles published in journals largely inaccessible to those involved in the entrepreneurial process. This book is designed to bring the practical implications of my research to the forefront. I decided to take a different approach with this book and not write it for a publisher. I did this because I wanted the ideas to be freely available: (1) I wanted those interested in practical advice for entrepreneurs to be able to freely download, distribute, and use this information (I only ask that the content be properly cited), (2) I wanted to release the chapters independently and make chapters available as they are finished, and; (3) I wanted this work to be a dialogue rather than a one-way conversation—I hope readers email me feedback (positive and negative) so that I can use this information to revise the book. In producing the journal articles underpinning this book, I have had the pleasure of working with many talented and wonderful colleagues—they are cited at the end of each chapter. I hope you find some of the advice in this book useful.

Gender and entrepreneurial performance : testing a holistic framework

The aim of this study was to test a holistic framework for assessing new venture performance outcomes that incorporates the impact of gender on internal resource availability (human, financial and social capital) and how, in turn, this impacts: the entrepreneurs’ goals; the investment (both money and time) they make in their new ventures; and the performance outcomes of those ventures. Our results indicate that a majority of the paths examined (using structural equation modeling) are significant and in the expected direction. For example: an entrepreneur’s human capital (comprising management work experience, start-up experience and industry experience) is significantly related to her/his growth goal (in terms of employee numbers); the entrepreneur’s growth goal is positively related to the time invested in the new venture; and the time invested in the new venture is positively related to new venture outcomes.

Stigmatization of failed entrepreneurs : prevalence and solutions

This paper investigates why entrepreneurs experience stigma after firm failure and what can be done to reduce it. We use attribution theory as an overarching theoretical framework and hypothesize that entrepreneurs are held more accountable than employees for their unemployment after firm failure irrespective of the circumstances causing the failure. To test this hypothesis we conduct a between group, 2x2 full factorial experiment where the cause of the failure is manipulated. We find that entrepreneurs are held more accountable for firm failure irrespective of the circumstances causing the failure and that respondents who view failure as an inherent risk of firm ownership are less likely to stigmatize failed entrepreneurs.

Make-or-break : work and family interface and wellbeing among small business owners

This study responds to calls for research on work-family aspects in entrepreneurship research. Our study examined the role of work-family conflict and enhancement on small business owners’ (SBOs) wellbeing. We found work-family has negative direct effect on mental health, job and family satisfactions. Furthermore, we found that under high level of work-family conflict condition, SBOs who perceive a greater level of work-family enhancement would feel more satisfy with their life, job as well as family aspects. Interestingly, under high level of conflict, even SBOs perceive greater level of enhancement, it would not lessen the negative impact of the conflict on their mental health. These results suggest that once psychological health is harmed by work-family conflict, its negative consequences remain unchanged.

Strategic renewal through design led innovation : findings from embedded practice

Strategic Renewal has been the subject of research in large organisations but has received relatively little attention in small and medium enterprises. Using case study examples of small and medium manufacturing firms, this paper presents the findings from a longitudinal action research project where participating companies explored design led innovation processes to find new ways to renew their businesses. Specifically our findings indicate that when designers act as innovation catalysts in embedded longitudinal action research, SMEs engage in strategic renewal, gain a deeper appreciation of their customers, become more aware of the value proposition of the company and engage in new practices to improve their competitive advantage.

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.

The impact of international potentials, entrepreneurial motivations and firm stages on new venture internationalisation

Past research on early internationalising firms often examined factors and motivations potentially influencing internationalisation activities separately. The purpose of this paper was to investigate a set of indicators and their interplay with each other. Firstly, the impact of (a) international potential in the form of the depth and diversity of international experience and network contacts was investigated. Secondly, it was examined to what extent (b) motivational factors and (c) firm stages affect the relationship between international potential and internationalisation activities. This paper used longitudinal data from the Comprehensive Australian Study of Entrepreneurial Emergence (CAUSEE). Results suggest that the international potential of a new venture as a whole is a significant determinant of subsequent internationalisation activities. However, having a diverse international experience from a variety of foreign countries appears to be more beneficial than a long-lasting experience from only a limited number of foreign countries. Furthermore, analyses showed that the interplay of high growth ambitions and the depth of international experience positively affect internationalisation activities. Opportunity or necessity driven entrepreneurship, however, neither exaggerate nor weaken the positive relationship between international potentials and internationalisation activities. Similarly, no moderation by firm stages was found.

Business model publicness and socialness of the social enterprise

Social enterprise is important. Yet, there has been diverse understanding of the phenomenon in the literature. This paper attempts to make sense of the social enterprise phenomenon in the literature from a two-layer framework of two-by-two matrices. The first layer juxtaposes social enterprise against other organizations (a typology of organizations) and the second layer classifies different types of social enterprises (a typology of social enterprise). This framework may provide researchers with tools to develop a clear and comprehensive definition of social enterprise. For practitioners, the ability to recognize structures of different types of social enterprises may offer them guideline to design the appropriate business model to serve their purposes.

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.

Older entrepreneurs: Do they work smarter or harder?

Entrepreneurs starting their first businesses between the ages of 55 and 64 years represent the fastest growing entrepreneurship segment in America and Australia. There is sparse research on older entrepreneurs with conflicting results, particularly with respect to generational differences. Previous literature on generational differences focuses on family businesses, but characteristics of founders of family businesses are quite different than those of founders of non-family businesses. Consequently, we compare characteristics of older entrepreneurs to younger entrepreneurs as they start new ventures. Are there differences in their work styles and venture performance? This study makes a contribution to entrepreneurship literature by studying the growing phenomenon of older entrepreneurs. We make a contribution to practice by helping older entrepreneurs identify their strengths, which could lead to more successful older entrepreneurs and provide satisfying and rewarding careers to those leaving wage and salary employment to pursue self employment.

Contemplating Knudsen's Baseline: Where small is not so beautiful

Does the Internet's World Wide Web (the web) represent an opportunity or threat to the small firms of the world? In line with recent calls for entrepreneurship research to adopt a more evolutionary approach, this article considers the context, process, and possible outcomes of small place-based firms operating in a web-impacted environment. Despite initial optimism that the web would provide a level-playing field for firms of all sizes, little evidence exist to support such a notion. When the learning abilities deemed necessary to exploit the web are considered, it would seem that only the most entrepreneurial of small firms would likely adapt to web-impacted environments. It is concluded that the present rate of web-based change represents a unique and valuable research opportunity for entrepreneurship researchers.