Human resource flexibility and strong ties in entrepreneurial teams

Human resource flexibility is important in entrepreneurial ventures that need to respond to the changing challenges of growing the new business. This research investigates the impact of previously well-known people (strong ties) as entrepreneurial team members on the human resource flexibility of new ventures. Data collected from German founding entrepreneurs in technology-oriented, incubator-based firms shows that choosing a well known individual to join the entrepreneurial team increases the founder's ability to modify the team member's work role, but complicates asking the team member to leave the team if required. Hence, strong ties both increase and reduce human resource flexibility. However, the effect of strong ties on role modifiability is statistically significant only with novice entrepreneurs. These research findings counsel founders to discuss role modification and exit during partnership and entrepreneurial team membership negotiations.

Gemeinsam selbständig. Eine Analyse kooperativen Handelns bei partnerschaftlichen Existenzgründungen

Im Zentrum der empirischen Arbeit steht einerseits eine besondere Form der Unternehmensgründung, andererseits eine besondere Form der Kooperation: die partnerschaftliche Existenzgründung. Das Forschungsvorhaben geht dem Ziel nach, Kooperationsprozesse in solchen unternehmerischen Partnerschaften zu explorieren. Um letztendlich eine praktisch nutzbare Grundlage für Maßnahmen zur Förderung beruflicher Selbständigkeit zu gewinnen, werden Merkmale und Rahmenbedingungen erfolgreicher partnerschaftlicher Existenzgründungen aufgezeigt. Die Empirie stützt sich auf qualitative Interviews mit Personen, die erfolgreich im Team ein Unternehmen gegründet haben und führen. In einem ersten Schritt werden anhand der Interviews konkrete alltägliche Kooperationsprozesse präzise beschrieben. Darauf aufbauend zeichnen tiefer gehende qualitative Analysen Entwicklungen auf einer abstrakteren Handlungsebene nach. Das Spektrum der Betrachtung umfasst neben individuellen Entwicklungen der Unternehmensgründer auch Prozesse auf der Teamebene sowie auf unternehmerischer Ebene. Zur Exploration der Handlungsprozesse werden die eigenen Ergebnisse durch ausgewählte theoretische Ansätze aus Kognitions- und Sozialpsychologie, aus soziologischer Handlungstheorie und Betriebswirtschaftslehre bereichert. Als relevant auf individueller Ebene erweisen sich insbesondere Prozesse der Identitätsentwicklung hin zu einer unternehmerisch-partnerschaftlichen Identität. Auf der Teamebene sind die Bewahrung und Überwindung von Eigensinn in der Interaktion sowie der Aufbau einer vertrauensvollen Beziehung zentral. Auf Unternehmensebene schließlich spielen Prozesse der Sinnfindung zwischen individuellen Erwerbsentwürfen und ökonomischen Strukturen, die Entstehung von Ordnung sowie Problemlösungsprozesse eine entscheidende Rolle. Insgesamt wird deutlich, dass der Weg in eine partnerschaftliche Selbständigkeit ein vielschichtiger Lernprozess ist, der aus der Praxis heraus entsteht, im Wesentlichen von den Gründern selbst organisiert und von gemeinsamen Reflexionen getragen wird. Diese Erkenntnisse stellen erste Ansatzpunkte dar zur Förderung beruflicher Selbständigkeit in Hochschule und im beruflichen Bildungswesen.

The Passionate Combining Entrepreneurs

Entrepreneurs are portrayed as salient drivers of regional development and for a number of years nascent entrepreneurs have been studied in a large number of countries as part of the Global Entrepreneurship Monitor project and the Panel Study of Entrepreneurial Dynamics. Scholars have devoted much effort to investigating factors that determine how individuals engage in entrepreneurial activities, with most of the discussion limited to business start-ups. However, since this type of project does not follow identical nascent entrepreneurs over time, limited knowledge exists about their development and whether they stay in this nascent phase for a long time. In practice, it is common for entrepreneurs to run a business and at the same time work in wage work, so-called combining entrepreneurs. In Sweden, almost half of all business owners combine wage work with a business. However, not all combining entrepreneurs will eventually decide to leave the wage work and invest fully in the business. Consequently, much research has focused on the first step of entering entrepreneurship full time, but less has focused on the second step, the transition from the combining phase to full-time self-employment. The aim of this thesis is therefore to contribute to the theory of entrepreneurship by gaining a deeper understanding of combining entrepreneurs and their motives and intentions.   In the context of combining entrepreneurs, the theory of identity, resources and choice overload has been used to examine how entrepreneurs’ age (when starting the business), entrepreneurial tenure (the length of engagement in the side-business), hours spent (weekly involvement in the side-business), involvement in entrepreneurial teams (leading the business with one or more partners) and involvement in networks (business networks) influence their passion for engaging in entrepreneurship while sustaining wage work. Different categories of combining entrepreneurs and their intentions have also been examined.   A survey was administered to 1457 entrepreneurs within the creative sector in two counties in Sweden (Gävleborgs County and Jämtlands County). Since there were no separate mailing lists to only combining entrepreneurs, the survey was sent to all entrepreneurs within the chosen industry and counties. The total response rate was 33.5 percent and of them 57.6 percent combined, yielding 262 combining entrepreneurs who answered the questionnaire. The survey was then followed up with eight focus group interviews and two single interviews to validate the answers from the questionnaire.   The results indicate three types of combining entrepreneurs: nascent – with the intention to leave the combining phase for a transition into full-time self-employment, lifestyle – with the intention to stay in the combining phase, and occasional – with the intention to leave the combining phase for full-time wage work and close down the business. Transitioning fully to self-employment increases with the individual’s age. Also, a positive interactive effect exists with involvement in entrepreneurial networks. The results also indicate that the ability to work with something one is passionate about is the top motive for combining wage work with a side-business. Passion is also more likely to be the main motive behind the combining form among individuals who are older at business start-up, but passion is less likely to be the main motive behind the combining form among individuals who spend more time on the business. The longer the individual has had the side-business, the less likely passion is the main motive behind the combining form, and passion is less likely to be the main motive among those who are part of an entrepreneurial team.

Characteristics of entrepreneurs and public support for NTBFs

This paper studies the role of the characteristics of entrepreneurs as determinants of public financial support for New Technology Based Firms (NTBFs). Using a single database about the profile of Spanish technology entrepreneurs from 2001 to 2009, we analyze the relationship between NTBF participation in the NEOTEC program run by the main Spanish public agency for R&D and four dimensions of the entrepreneurial team: its human capital, its links to the public system of R&D, its motivation at the time the company was created and the extent of its planning to initiate the business activity. Our results show that NTBFs founded by entrepreneurs who have less experience in management, have planned less, are more oriented toward growth and have closer ties to the public system of R&D are more likely to participate in the public aid program.

DAISHI S.A.S: Restaurante especializado en comida Nikkei

DAISHI S.A.S es un restaurante especializado en la oferta de platos insignia de la cocina Nikkei. Este proyecto de emprendimiento inicia cuando miembros del equipo emprendedor descubren que en Bogotá y sus al rededores es casi nula la oferta de estos platos. En DAISHI se fusiona la tradicional cocina Japonesa con los increíbles insumos y sabores peruanos para crear platos originales. Cuenta con un equipo de trabajo experimentado que garantiza un excelente servicio y calidad en sus productos. El menú cuenta con 8 líneas de productos y más de 35 platos, algunos especialmente diseñados para el consumo de celiacos. DAISHI cuenta con una alianza estratégica que permite que unos insumos provengan de cultivos orgánicos, aportando frescura a los productos. El equipo emprendedor está compuesto por Laura Edith Martínez y Luisa Fernanda Penagos, administradoras de Empresas de la Universidad del Rosario, Cristina Penagos Olarte y Luis Fernando Rojas Cely, chefs profesionales con amplio conocimiento en la cocina Nikkei.

Entrepreneurial bricolage and young firm performance : the moderating effect of team composition

Many young firms face significant resource constraints during attempts to develop and grow. One promising theory that explicitly links to resource constraints is bricolage: a construct developed by Levi Strauss (1967). Bricolage aligns with notions of resourcefulness: using what’s on hand, through making do, and recombining resources for new or novel purposes. In this paper we further theorize and test the moderating effects of ownership team composition on bricolage and firm performance. Our findings suggest that team size, strong network ties, and functionality enhance the effects of bricolage in young firm performance.

Reasoning about trust, entrepreneurial services, and the virtual team

This Portfolio of Exploration (PoE) tracks a transformative learning developmental journey that is directed at changing meaning making structures and mental models within an innovation practice. The explicit purpose of the Portfolio is to develop new and different perspectives that enable the handling of new and more complex phenomena through self transformation and increased emotional intelligence development. The Portfolio provides a response to the question: ‘What are the key determinants that enable a Virtual Team (VT) to flourish where flourishing means developing and delivering on the firm’s innovative imperatives?’ Furthermore, the PoE is structured as an investigation into how higher order meaning making promotes ‘entrepreneurial services’ within an intra-firm virtual team, with a secondary aim to identify how reasoning about trust influence KGPs to exchange knowledge. I have developed a framework which specifically focuses on the effectiveness of any firms’ Virtual Team (VT) through transforming the meaning making of the VT participants. I hypothesized it is the way KGPs make meaning (reasoning about trust) which differentiates the firm as a growing firm in the sense of Penrosean resources: ‘inducement to expand and a limit of expansion’ (1959). Reasoning about trust is used as a higher order meaning-making concept in line with Kegan’s (1994) conception of complex meaning making, which is the combining of ideas and data in ways that transform meaning and implicates participants to find new ways of knowledge generation. Simply, it is the VT participants who develop higher order meaning making that hold the capabilities to transform the firm from within, providing a unique competitive advantage that enables the firm to grow.

How the Entrepreneurial Top Management Team Setup Influences Firm Performance and the Ability to Raise Capital: A Literature Review

This paper reviews research findings on entrepreneurial top management teams within the last 20 years. It concentrates on team-based management factors and their influence on a new venture’s growth and ability to raise capital. This paper integrates recent findings and provides an overview of the current state of research. Moreover, it contributes to the overall topic by proposing five clusters of major team-specific influences, derives determinants of success and failure, and reveals recommendations for further research.

Export propensity, export intensity and firm performance:the role of the entrepreneurial founding team

We investigate how the characteristics and experience of the entrepreneurial founding team (EFT) affect the export orientation and subsequent performance of the businesses they establish, while allowing for the mutually reinforcing relationship between exporting and productivity. Using a sample of UK technology-based firms, we hypothesise and confirm that the set of EFT human capital needed for entering export markets is different from that required for succeeding in export markets. Commercial and managerial experience helps firms become exporters, but once over the exporting hurdle it is education, both general and specific, that has a substantially positive effect. The overall pattern of human capital effects on productivity is similar to those for export propensity. We also find evidence that productive firms are more likely both to enter export markets and to be export intensive, and that exporting boosts subsequent firm productivity.

ACE research vignette 003 : different strokes for different folks - classification of entrepreneurial musicians and their use of online social networks

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international entrepreneurship researchers. In this vignette Dr Maria Kaya and Associate Professor Paul Steffens consider both the classification of musicians and their use of online social networks.

ACE research vignette 020: Entrepreneurial becoming - a self-induced transformation

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international Entrepreneurship researchers. In this vignette, Dr Marcello Tonelli and Associate Professor Carol Dalglish consider the delivery of entrepreneurial education through experiential learning in a developing context.

Turnover in entrepreneurial teams : are spousal teams different?

Entrepreneurial teams are increasingly prevalent. An important stage in new venture formation involves the recruitment and retention of team members, characterised by changes in the membership of the ET. ET turnover involves members joining or leaving the team, which could have positive or negative effects on the team and the firm. Spousal Entrepreneurial Teams (SET) are a frequently occurring, yet unique type of ET, with very distinct characteristics and dynamics. In an SET turnover is likely to be have different meanings and effects than in Other Entrepreneurial Teams. This research asks: What influences members joining and leaving entrepreneurial teams? And are SET different? Using data from 561 young firms over X years, we find significant differences between SET and NSET. Specifically, we find X.

ACE research vignette 025 : Is business planning important for entrepreneurial success?

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, takes a closer look at the value of business planning.

ACE research vignette 028 : Does it pay for established firms to be entrepreneurial?

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 the evidence on the effects of a firm’s level of “entrepreneurial orientation” on business performance, across different contexts.

ACE Research Vignette 045: Are “Entrepreneurial Opportunities” a meaningful topic for entrepreneurship research?

This series of research vignettes is aimed at sharing current and interesting research findings from our team of international entrepreneurship researchers. In this vignette, Professor Per Davidsson discusses research on “entrepreneurial opportunities”. A “Government Health Warning” is in place for this particular vignette: it mainly concerns matters internal to entrepreneurship research; however, reflective practitioners may find it to be of interest.