Contextualizing entrepreneurial intentions : a multiple case study on entrepreneurial cognition and perception

Avhandlingen behandlar entreprenöriella intentioner och individens uppfattningar om entreprenörskap. Om vi vill främja entreprenörskap så räcker det inte att vi förstår vilken nytta samhället kan ha av entreprenörer (arbetsplatser, mera skatteinkomster osv.). Vi måste förstå varför entreprenörskap är intressant och attraktiv ur individens synvinkel. Just den frågan har varit central inom kognitiv entreprenörskapsforskning de senaste 10 åren har vår förståelse för entreprenörer ökat betydligt tack vare den forskningen. Problemet med existerande forskning är att uppfattad genomförbarhet och uppfattad attraktivitet, dvs. de attityder som sägs leda till entreprenöriella intentioner, beskriver enbart vilken attityd individen generellt har till entreprenörskap. Enligt tidigare forskningsresultat så är det skillnad på generella attityder till en handling och attityder till att genomföra just den handlingen. Vill vi veta om individen kan tänka sig starta och driva ett företag så måste vi alltså studera individens attityd till att utföra just den specifika handlingen. Enligt avhandlingens forskningsresultat så kan vi lära oss mera om attityder till entreprenörskap genom att studera också motivation och mål. På så sätt kan vi förstå varför en del väljer att bli entreprenörer medan andra väljer att låta bli, även om de utåt sett har samma möjligheter att bli entreprenörer.

Towards conceptually comprehensive and integrated theory of entrepreneurial opportunity

Insufficient understanding of entrepreneurial opportunities characterizes entrepreneurship research (Companys & McMullen 2006, 302). Subsequently, the purpose of this study was to analyze the concept of entrepreneurial opportunity and to explore and synthetize the integrated theory of entrepreneurial opportunity. A theoretical and concept analytical approach was adapted. Findings of this study was that entrepreneurial opportunity concept was used for variety of different phenomena. No commonly accepted definition existed. Altogether 24 attributes that described the concept were found. The most frequently attached attributes were agent and action, new goods and services, market, value, new means ends or both, and future. Further, the results implied that opportunity could be best understood as a part of a process. Opportunity emerges out of intervened factors. Changes in the environment together with factors related to knowledge, cognition and social ties are the most important drivers of opportunity. Preventing factors that impeded the emergence of opportunity were typically related to cognitive and organizational factors. This study found a tendency towards more integrated theory of entrepreneurial opportunity. The integrated theory acknowledged the usefulness of both discovery and creation theories of opportunity in explaining opportunity. Yet three argument types of integrating two different opportunity theories were identified. These were process category, contextual category and complementing category. Opportunity is at the same time cognitive, social and linguistic construct, although it is shaped by the objective environment. Opportunity requires linguistic endeavors to become explicit. Materialization of opportunity occurs in a social context. Moreover, it is always characterized by some extent of subjectivity, as opportunities cannot appear without the agent and their action. Due to these the concept remains always to some extent ambiguous. Tolerating and harnessing change and investing in human and social capital create the preeminent environment for the entrepreneurial opportunity to be identified.

Financial Slack and Bidding Firms’ Takeover Announcement Stock Returns – an Event Study

Despite the fact that the literature on mergers and acquisitions is extensive, relatively little effort has been made to examine the relationship between the acquiring firms’ financial slack and short-term post-takeover announcement abnormal stock returns. In this study, the case is made that the financial slack of a firm is not only an outcome of past business and financing activities but it also may affect the quality of acquisition decisions. We will hypothesize that the level of financial slack in a firm is negatively associated with the abnormal returns following acquisition announcements because slack reduces managerial discipline over the use of corporate funds and also because it may give rise to managerial self-serving behavior. In this study, financial slack is measured in terms of three financial statements ratios: leverage ratio, cash and equivalents to total assets ratio and free cash flow to total assets ratio. The data used in this paper is collected from two main sources. A list comprising 90 European acquisition announcements is retrieved from Thomson One Banker database. The stock price data and financial statements information for the respective firms is collected using Datastream. Our empirical analysis is two-fold. First, we conduct a two-sample t-test where we find that the most slack-rich firms experience lower abnormal returns than the most slack-poor firms in the event window [-1, +1], significant at 5% risk level. Second, we perform a cross sectional regression for sample firms using three financial statements ratios to explain cumulative abnormal returns (CAR). We find that leverage shows a statistically significant positive relationship with cumulative abnormal returns in event window [-1; +1] (significance 5%). Moreover, cash to total assets ratio showed a weak negative relationship with CAR (significant at 10%) in event window [-1; +1]. We conclude that our hypothesis for the inverse relationship between slack and abnormal returns receives empirical support. Based on the results of the event study we get empirical support for the hypothesis that the capital markets expect the acquisitions undertaken by slack-rich firms to more likely be driven by managerial self-serving behavior and hubris than do those undertaken by slackpoor firms, signaling possible agency problems and behavioral biases.

The Impact of National Innovation System on Entrepreneurial Venture Creation Process

The important role of entrepreneurship in countries’ economic development and overall society well-being is widely recognized by researchers, experts as well as policy makers. Every phase of the process of starting a new business is related to the interaction with at least one player of country innovation system and therefore the efficiency of this interaction may have an influence on the success of whole entrepreneurial process and consequently on the willingness of potential entrepreneurs to engage into this process. The study proposes a System Dynamics model for studying the impact of National Innovation System (NIS) on the entrepreneurial venture creation process. The developed model also takes country population aspect into account and provides results for estimation the effect various demographic tendencies on the process performance. The special impact is made on possible ways to facilitate the development of entrepreneurial framework conditions. Business incubators are seen as one of the effective tool for accomplishing such task. The study also provides the result for estimation of possible impact arising from properly functioned Business Incubators.

The Role of a firm’s mindset in international success - case study of Finnish marine industry firms

This thesis investigates the influence of a firm’s mindset on international success in the context of the Finnish marine industry. The study draws theoretical wisdom from organisational behaviour and strategic management literatures. The research aim set for this study was to identify and categorise existing strategic types based on mindsets found in the marine industry SMEs, and to link the influence of mindsets with success by examining the role of mindsets in a firm’s performance. Mindsets of firms were conceptualised as aggregate collections of perceptions that influence how the surrounding environment is discerned by the members of the firm. Mindsets are idiosyncratic to firms and therefore important firm-specific resources which influence decision-making and can be observed through the strategic behaviour of firms. Qualitative case study method was applied which was further supported by quantitative data on the financial performance of the ten case firms. Taxonomy based on the dimension of mindsets and prediction was developed to demonstrate four ideal types of firms identified within the marine industry. It was found that all of the case firms emphasised adaptation in their strategy while planning was emphasised to a varying degree. Moreover, two different methods of adapting were found; proactive and reactive. Firms which plan in the long-term and adapt proactively constantly investigate whether their plans are synchronous with the realities of the market; by having an open mindset, a firm’s perception of the reality of the market is enabling the firm to develop value creating strategies which are superiorly informed.This finding was supported by the financial data and led to the proposition that having an open mindset and placing a high level of emphasis on prediction may have a positive influence on international success. Also, it was proposed that concentrating only on exploiting business opportunities in the present time and not exploring any addition opportunities can have a negative influence on the firm’s performance, even if the mindset of the firm is open.

Internationalization of SMEs in the Finnish Food Industry

Food industry in Finland has a long tradition and the new trends and the future of Finnish food industry is going towards functional and healthy food for the consumers in and outside Finland. Small companies operating in this industry face many difficulties in trying to compete and expand to new markets, that is why these companies are the key of innovation and they have done many breakthroughs in the food industry as well. It is therefore important to understand the internationalization process these companies follow and entry strategies they use, and moreover how they use their limited resources in order to be successful in international markets. This thesis via a case study approach deals with the issue of internationalization of SMEs and Finnish food industry. This study supports earlier theories of internationalization, primarily the Uppsala model and acknowledges internationalization as an incremental process. Meaning that psychic distance is indeed the major barrier of internationalization, and acquisition of international knowledge requires significant amount of time which influences the level of resource-commitment in foreign markets. It follows that due to the risks involved in foreign markets, the least resource-intensive modes of market entry such as direct and indirect exports are generally preferred at the start of internationalization process. As of what explains the non-conventional rapid internationalization process, we conclude that in an internationalized industry and country with established trade flows like Finland, the context in which firms operate may be less significant than the varying level of entrepreneurial skills and confidence present therein.

Forest contractors entrepreneurial skills development in Finland by Forest Expertise and Innovation Network : project in 2009 - 2013

Julkaisumaa: 578 NO NOR Norja

Green Marketing and its Role in Firm’s Strategy

Tässä kandidaatintutkielmassa tutkitaan vihreän markkinoinnin strategista roolia ja sen tuomaa lisäarvoa yritykselle. Tutkimuksessa selvitetään, mitä vihreä markkinointi on, mistä syistä yritykset harjoittavat sitä ja tuoko se lisäarvoa yritykselle. Case-yrityksinä tutkielmassa ovat UPM-Raflatac ja Lappeenrannan Energia Oy.

Russian SME technology transfer to Finland – Entrepreneurial challenges and motivation

The purpose of this thesis is to study the international technology transfer of transition economy SME entrepreneurs to the developed countries. The research aims to characterize the phenomenon by studying Russian SME technology transfer to Finland with the research methods from case studies. In addition to characterizing the phenomenon, the research finds out factors that motivate Russian entrepreneurs to conduct international technology transfer and what are the challenges the Russian entrepreneurs face when they enter the Finnish business environment. The qualitative data was collected from six semi-structured interviews with the entrepreneurs and several secondary data sources, considering four different technology transfer cases. The data and the analysis showed that the case companies in Finland are mostly linked to manufacturing of physical products. The entrepreneurs are motivated to come to Finland mainly by the opportunities and support the Finnish business and innovation environment provides to the entrepreneurs and by the personal gain that they get by establishing the company in Finland. Major challenges in the process include time constraints and capital requirements, difficulties on achieving sales on the Finnish market and finding skilled personnel to support the Russian management and owners.