The entrepreneurial process

This chapter revolves around research-based insights into the entrepreneurial process. By is meant the process of setting up a new business activity resulting in a new market offer. This new offer may be made by a new or an existing firm, although the main focus here is on the start-up of new, independent firms. Further, the new offer may be innovative, bringing to the market something that was not offered before or imita­tive i.e., a new competitor enters the market with products or services very similar to what other firms are already offering. Although the lsatter type of process may be less complex and also have less market impact, it still entails most of the steps that typically have to be taken in order to get a business up and running. If successful, it also shares, at least to some degree, the consequences that signify entrepreneurial processes: - it gives consumers new choice alternatives - it gives incumbent firms reason to shape up - it attracts additional followers to enter the market, further reinforcing the first two effects (Davidsson, 2004). Besides, imitatlve starr-ups outnumber by far innovative ones (Reynolds et al., 2003; Samuelsson and Davidsson, 2009).

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.

Business planning, idea change, flexibility and performance: the best of both worlds?

The relationships between business planning and performance have divided the entrepreneurship research community for decades (Brinckmann et al, 2010). One side of this debate is the assumption that business plans may lock the firm in a specific direction early on, impede the firm to adapt to the changing market conditions (Dencker et al., 2009) and eventually, cause escalation of commitments by introducing rigidity (Vesper, 1993). Conversely, feedback received from the production and presentation of business plans may also lead the firm to take corrective actions. However, the mechanisms underlying the relationships between changes in business ideas, business plans and the performance of nascent firms are still largely unknown. While too many business idea changes may confuse stakeholders, exhaust the firm’s resources and hinder the undergoing legitimization process, some flexibility during the early stages of the venture may be beneficial to cope with the uncertainties surrounding new venture creation (Knight, 1921; March, 1982; Stinchcombe, 1965; Weick, 1979). Previous research has emphasized adaptability and flexibility as key success factors through effectual logic and interaction with the market (Sarasvathy, 2001; 2007) or improvisation and trial-and-error (Miner et al, 2001). However, those studies did not specifically investigate the role of business planning. Our objective is to reconcile those seemingly opposing views (flexibility versus rigidity) by undertaking a more fine-grained analysis at the relationships between business planning and changes in business ideas on a large longitudinal sample of nascent firms.

The underlying rationale for planning: do nascent and young firms do what they say they do?

Previous studies investigating the relationships between business planning and performance have led to inconclusive results (Brinckmann et al., 2010; Delmar & Shane, 2003; Frese, 2009; Gruber, 2007; Honig & Karlsson, 2004). Institutional theory argues that firms develop business plans as an answer to external and internal pressures to gain legitimization (Delmar & Shane, 2004) and funding from different stakeholders (Karlsson & Honig, 2009). Action theory suggests that planning will pave the new venture creation journey by providing milestones and a program to implement (Frese, 2009). However, studies with an institutional perspective imply that nascent firms are either conforming to or looking for the benefits of these external or internal pressures (Karlsson & Honig, 2009) while action theory assumes that the plans will be implemented (Frese, 2009). This paper attempts to (i) investigate if the intended uses of the business plans provided by nascent and young firms match their actual uses during their venture creation process and (ii) to examine how the types of uses of business plans impact the firms’ outcomes over three years.

The moderating role of learning on competitive advantage : longitudinal evidence from young firms

The question of how young firms reconcile the absence of well-established learning routines arising from the “liabilities of newness” with the “learning advantages of newness” has received scant attention in entrepreneurship. While older firms follow established learning routines and sometimes face problems in overcoming inertia, young firms with lower levels of inertia are better poised to explore, search and test unique avenues for their products and services. The process of learning and capability development as well as establishing uniqueness in their product offerings is an important part not only in the early stages of firm growth, but also in firm survival. Given their inexperience, for young firms, these learning processes are iterative and include contrasting learning loops that sometimes progress and at other times digress from initially perceived unique ideas. Such processes are embedded within capabilities that the firm develops and nurtures. Based on this premise and adopting a capabilities-based view, we examine how strategic networks and environmental knowledge affects uniqueness- mediated performance in young firms. We identify firms with digressive learning strategies based on their self-assessment of learning and compare them with other firms to demonstrate a differential effect on performance.

Client adaptiveness in entrepreneurship and its effect on sustained competitive advantage in project-orientated service firms

Important differences exist in how service firms operate in comparison with manufacturing firms (c.f. Johne & Storey, 1998; Tether, 2002). Despite these significant differences, not much is known whether these differences extrapolate to entrepreneurship in the services industry. This study seeks to address this gap by investigating how value creation occurs when project-oriented firms1 adopt client adaptiveness as part of their entrepreneurial posture. Specifically, we examine the effect of client adaptiveness on sustained competitive advantage. Client adaptiveness is conceptualized as the extent to which an organization engages in identifying and responding to perceived client needs and wants which reflects the service firm’s propensity to dynamically synchronize with the project/client requirements.

Greek or not : the use of symbols and abbreviations in mathematics

The use of symbols and abbreviations adds uniqueness and complexity to the mathematical language register. In this article, the reader’s attention is drawn to the multitude of symbols and abbreviations which are used in mathematics. The conventions which underpin the use of the symbols and abbreviations and the linguistic difficulties which learners of mathematics may encounter due to the inclusion of the symbolic language are discussed. 2010 NAPLAN numeracy tests are used to illustrate examples of the complexities of the symbolic language of mathematics.

Australian shows

This book is a reader for primary school students, stage 27-30 (fluent), incorporating mathematics themes. There is a fictional narrative, entitled "A Day at the Show", that describes the activities of Tess and Alex when visiting their local show. A non-fiction exposition, entitled "Supporting Australian Shows", explains more about Australian shows and why we should support them. Accompanying the book is a "building comprehension card" to assist teachers in their classroom use of the reader.

The flying doctors

This book is a reader for primary school students, stage 24-26 (fluent), incorporating mathematics themes. There is a fictional narrative, entitled "A Flying Visit", that describes Tess' and Alex's encounter with the Flying Doctor. A non-fiction recount, entitled "Fundraising for the Flying Doctors", describes the activities of a class group in raising money for the Flying Doctors. Accompanying the book is a "building comprehension card" to assist teachers in their classroom use of the reader.

Jabberwocky : the complexities of mathematical English

Mathematical English is a unique language based on ordinary English, with the addition of highly stylised formal symbol systems. Some words have a redefined status. Mathematical English has its own lexicon, syntax, semantics and literature. It is more difficult to understand than ordinary English. Ability in basic interpersonal communication does not necessarily result in proficiency in the use of mathematical English. The complex nature of mathematical English may impact upon the ability of students to succeed in mathematical and numeracy assessment. This article presents a review of the literature about the complexities of mathematical English. It includes examples of more than fifty language features that have been shown to add to the challenge of interpreting mathematical texts. Awareness of the complexities of mathematical English is an essential skill needed by mathematics teachers when teaching and when designing assessment tasks.

A picture is worth a thousand words : an approach to learning about visuals

Students in the middle years encounter an increasing range of unfamiliar visuals. Visual literacy, the ability to encode and decode visuals and to think visually, is an expectation of all middle years curriculum areas and an expectation of NAPLAN literacy and numeracy tests. This article presents a multidisciplinary approach to teaching visual literacy that links the content of all learning areas and encourages students to transfer skills from familiar to unfamiliar contexts. It proposes a classification of visuals in six parts: one-dimensional; two-dimensional; map; shape; connection; and picture, based on the properties, rather than the purpose, of the visual. By placing a visual in one of these six categories, students learn to transfer the skills used to decode familiar visuals to unfamiliar cases in the same category. The article also discusses a range of other teaching strategies that can be used to complement this multi-disciplinary approach.

Using 3D visualisation to understand human articular cartilage deterioration

Understanding complex systems within the human body presents a unique challenge for medical engineers and health practitioners. One significant issue is the ability to communicate their research findings to audiences with limited medical knowledge or understanding of the behaviour and composition of such structures. Much of what is known about the human body is currently communicated through abstract representations which include raw data sets, hand drawn illustrations or cellular automata. The development of 3D Computer Graphics Animation has provided a new medium for communicating these abstract concepts to audiences in new ways. This paper presents an approach for the visualisation of human articular cartilage deterioration using 3D Computer Graphics Animation. The animated outcome of this research introduces the complex interior structure of human cartilage to audiences with limited medical engineering knowledge.

Establishing virtual production as a research and teaching activity at QUT

Located within the Creative Industries Faculty, the Animation team at the Queensland University of Technology (QUT) recently acquired a full-body inertial motion capture system. Our research to date has been predominantly concerned with interdisciplinary practice and the benefits this could bring to undergraduate teaching. From early experimental tests it was identified that there was a need to develop a framework for best practice and an efficient production workflow to ensure the system was being used to its full potential. Through our ongoing investigation we have identified at least three areas that stand to have long-term benefits from universities engaging in motion capture related research activity. This includes interdisciplinary collaborative research, undergraduate teaching and improved production processes. The following paper reports the early stages of our research, which explores the use of a full-body inertial motion capture (MoCap) solution in collaboration with performing artists.

Dimensions of the venture creation process : amount, dynamics, and sequences of action in nascent entrepreneurship

This research examines the entrepreneurship phenomenon, and the question: Why are some venture attempts more successful than others? This question is not a new one. Prior research has answered this by describing those that engage in nascent entrepreneurship. Yet, this approach yielded little consensus and offers little comfort for those newly considering venture creation (Gartner, 1988). Rather, this research considers the process of venture creation, by focusing on the actions of nascent entrepreneurs. However, the venture creation process is complex (Liao, Welsch, & Tan, 2005), and multi-dimensional (Davidsson, 2004). The process can vary in the amount of action engaged by the entrepreneur; the temporal dynamics of how action is enacted (Lichtenstein, Carter, Dooley, and Gartner 2007); or the sequence in which actions are undertaken. And little is known about whether any, or all three, of these dimensions matter. Further, there exists scant general knowledge about how the venture creation process influences venture creation outcomes (Gartner & Shaver, 2011). Therefore, this research conducts a systematic study of what entrepreneurs do as they create a new venture. The primary goal is to develop general principles so that advice may be offered on how to ‘proceed’, rather than how to ‘be’. Three integrated empirical studies were conducted that separately focus on each of the interrelated dimensions. The basis for this was a randomly sampled, longitudinal panel, of nascent ventures. Upon recruitment these ventures were in the process of being created, but yet to be established as new businesses. The ventures were tracked one year latter to follow up on outcomes. Accordingly, this research makes the following original contributions to knowledge. First, the findings suggest that all three of the dimensions play an important role: action, dynamics, and sequence. This implies that future research should take a multi-dimensional view of the venture creation process. Failing to do so can only result in a limited understanding of a complex phenomenon. Second, action is the fundamental means through which venture creation is achieved. Simply put, more active venture creation efforts are more likely more successful. Further, action is the medium which allows resource endowments their effect upon venture outcomes. Third, the dynamics of how venture creation plays out over time is also influential. Here, a process with a high rate of action which increases in intensity will more likely achieve positive outcomes. Forth, sequence analysis, suggests that the order in which actions are taken will also drive outcomes. Although venture creation generally flows in sequence from discovery toward exploitation (Shane & Venkataraman, 2000; Eckhardt & Shane, 2003; Shane, 2003), processes that actually proceed in this way are less likely to be realized. Instead, processes which specifically intertwine discovery and exploitation action together in symbiosis more likely achieve better outcomes (Sarasvathy, 2001; Baker, Miner, & Eesley, 2003). Further, an optimal venture creation order exists somewhere between these sequential and symbiotic process archetypes. A process which starts out as symbiotic discovery and exploitation, but switches to focus exclusively on exploitation later on is most likely to achieve venture creation. These sequence findings are unique, and suggest future integration between opposing theories for order in venture creation.