Social entrepreneurship: does institutional environment make a difference?

The purpose of this paper is to contribute to a better understanding of the link between social entrepreneurs and institutional environment in Portugal. A quantitative approach is used in the study, and primary data were collected through an online survey. A questionnaire was emailed to, both, Portuguese Non-Governmental organizations and projects available on the Portuguese social stock exchange. In the analysis of the data were used descriptive statistics, factorial analysis and t-student tests to validate (or not) the research hypotheses. The results show that a favorable institutional environment has a low importance in the decision to develop social initiatives. This conclusion supports the idea that many social entrepreneurs can emerge even in developing regions where the institutional environment is weak. Therefore, social entrepreneurship could be an instrument of regional development and contribute to attenuate the social and economic differences among Portuguese regions.

Micro-empresa y capacidad empresarial en Córdoba: situación actual y perspectivas. Microenterprise and entrepreneurship in Córdoba: present situation and perpectives.

Las transformaciones del mercado laboral, tanto de los países desarrollados como en vías de desarrollo, han sido importantes en las últimas décadas. Una de sus manifestaciones es la creciente expansión del trabajo organizado en torno a los micro-emprendimientos. Las investigaciones existentes a nivel internacional indican que la capacidad empresarial que debe poseer el emprendedor es un factor que resulta crucial para el desarrollo y sostenimiento de estas formas de producción. Por tal razón, el estudio de este aspecto y de su relación con los micro-emprendimientos es un tema que está concitando creciente atención y sobre el que existe un cuerpo teórico de literatura específica que ha comenzado a transferirse a los países en vías de desarrollo, donde la discusión es aún incipiente. Los estudios han observado que los micro-emprendimientos están normalmente muy ligados a la familia, esto hace que su desenvolvimiento y evolución resulten afectados por las características particulares de cada hogar. Se trata de un complejo conjunto de situaciones sociales que se generan a partir de estas nuevas formas de organización del trabajo, donde resulta dificultoso distinguir entre el micro-emprendimiento y la figura del emprendedor, lo cual ha llevado a que muchas veces las políticas públicas, sensibles a la necesidad de apoyar a los grupos poblacionales vulnerables, adquirieran un sesgo pro-pobre, en detrimento de su objetivo principal de incentivar el desarrollo sustentable de pequeñas unidades productivas. El equipo de investigación autor del presente proyecto concluyó recientemente, en el marco de un proyecto PICTOR II, un primer estudio sobre la temática de los micro-emprendimientos en Córdoba, analizando los factores que ayudan a comprender mejor las razones por las que algunos emprendedores alcanzan un mayor éxito que otros, a partir del cual surgieron nuevos interrogantes sobre el rol de la política pública en esta materia, a los que se intentará dar respuesta en esta oportunidad. Más concretamente, en esta investigación se abordarán, ahora con profundidad, diversas cuestiones importantes que analizan el vínculo entre la figura del emprendedor con el micro-emprendimiento que posee y con el efecto general de las políticas públicas en el sector. Uno de los temas es determinar hasta qué punto el comentado sesgo "pro-pobre" estuvo presente en el caso de las políticas públicas aplicadas en Córdoba y qué consecuencias tuvo sobre los micro-emprendimientos y su sustentabilidad. Este aspecto está directamente ligado a la necesidad de discernir acerca de si el fundamento teórico de las políticas públicas diferencia adecuadamente entre el micro-emprendedor y la micro-empresa. Otra importante cuestión a abordar es la de indagar sobre la relación entre capacidad empresarial, capital humano y nivel socio-económico del emprendedor. Resultará de sumo interés identificar los factores que estimulan e inhiben las manifestaciones de capacidad empresarial individual, y establecer su relación con las posibilidades de sustentabilidad del micro-emprendimiento, lo cual debería ser tomado en cuenta por las políticas públicas. El caso de los individuos que se convirtieron en micro-emprendedores como una estrategia para superar la situación de desempleo en que se encontraban, es un tema que será examinado en especial y a la luz de la performance observada del emprendimiento. Serán fuentes primarias de información la Encuesta llevada a cabo en el proyecto PICTOR II arriba mencionado y una re-encuesta a los micro-emprendedores que fueron oportunamente entrevistados. A ello se agregará un estudio de casos de emprendimientos muy exitosos. Los datos de fuentes secundarias surgirán del INDEC, de organismos oficiales y de instituciones no gubernamentales. Los principales métodos y herramientas de análisis a utilizar son los que proporcionan la Estadística, la Econometría y la Micro-economía.

Essays on entrepreneurship and innovation

Magdeburg, Univ., Fak. für Wirtschaftswiss., Diss., 2011

Value creation : the recognition and use of scientific potential in entrepreneurship

Otto-von-Guericke-Universität Magdeburg, Fakultät für Wirtschaftswissenschaft, Univ., Dissertation, 2015

Entrepreneurship, management services and economic growth

We model the joint production of entrepreneurs and workers where the former provide both entrepreneurial (strategic) and managerial (coordination, motivation) services, and management services are shared with individual workers in an output maximizing way. The static equilibrium of the model determines the endogenous share of entrepreneurs in the economy in a given moment of time. The time dynamics of the solution implies that a given growth rate in quality of entrepreneurial services contributes to productivity growth proportionally to the share of entrepreneurs at the start of the period and improvement in quality of entrepreneurial services is convergence enhancing. Model predictions are tested with data from OECD countries in the period 1970-2002. We find that improvements in quality of entrepreneurial services over time explain up to 100% of observed average productivity growth in these countries.

Narrating urban entrepreneurship: a matter of imagineering?

The battle between cities with regard to their creative possibilities has evolved into a process of multiplying ever-new images and variegated stories of urban attractiveness and success. Engineering “cool” images and “hot” stories about one’s city is now a central endeavor in the narratives of urban policy-making that center more and more on the idea of the entrepreneurial city. The making of an entrepreneurial image is enacted through various narrative genres that lie somewhere between place making and place marketing, between branding and boosting, between restoration and revanchism, between iconic architecture and mega-spectacle. This “imagineering” is not only part of the way cities try to (re)present themselves as entrepreneurial to various audiences through a real “image inflation” (Zukin, 2008, p. xii) but is 1 Forthcoming in: B. Lange,.A. Kalandides, B. Stoeber, I. Wellmann (Hrsg.) (2009): Governance der Kreativwirtschaft. Diagnosen und Handlungsoptionen. Transcript-Verlag, Bielefeld. 2 also inscribed in the various ways urban creativity and entrepreneurship can be studied, researched and imagined. In this chapter we aim to differentiate the political narratives of the entrepreneurial city as we emphasize the need to understand the politics of narration and make a plea for critical reflexivity in our forms of researching and theorizing. We will thus try to investigate how the politics of narration is intertwined with the narration of political concepts and will argue that the narrating of urban entrepreneurship can raise very different images and discourses of city life beyond those that are currently engineered. We will distinguish between a grand narrative, a counter-narrative, and an assemblage of more ambivalent little narratives, which we call prosaic narration. While the distinction between these three types might be seen as a bit too simple and “straight”, we believe that by juxtaposing these different forms of narration and alternating between them, we can help problematize the engineering of the city as entrepreneurial and imagine alternative views both of city life and of what is understood as its creativity.

Public policy for entrepreneurship and innovation: impact in managed and entrepreneurial economies

Many of the most advanced economies of the world have undergone significant transformation in the last few decades. Globalization and technological changes, especially developments in information technologies, have helped to stimulate this transformation. These have contributed to changing institutional frameworks in many respects within the economies including adjustments to economic policies. The results of these transformations take many different forms and are manifested in different areas of an economy. At the heart of these changes however, has been the increasingly important role of entrepreneurship in the economy. The transformed ("new") economy stimulates and supports activities in innovation and entrepreneurship and is labelled the entrepreneurial economy. The "old" economy on the other hand restricts such activities and is referred to as the managed economy (Audretsch & Thurik, 2001).

Environmental factors and social entrepreneurship

Social entrepreneurship has been a subject of growing interest by academics and governments, however little still being known about environmental factors that affect this phenomenon. The main objective of this study is to analyze how these factors affect social entrepreneurial activity, in the light of the institutional economic theory as the conceptual framework. Using linear regression analysis for a sample of 49 countries, is studied the impact of informal institutions (social needs, societal attitudes and education) and formal institutions (public spending, access to finance and governance effectiveness) on social entrepreneurial activity. The findings suggest that while societal attitudes increase the rates of social entrepreneurship, public spending has a negative relationship with this phenomenon. Finally, the empirical evidence found could be useful for the definition of government policies on promoting social entrepreneurship.

Social and commercial entrepreneurship: same, different, or both?

Entrepreneurship has been the engine propelling much of the growth of the business sector as well as a driving force behind the rapid expansion of the social sector. This article offers a comparative analysis of commercial and social entrepreneurship using a prevailing analytical model from commercial entrepreneurship. The analysis highlights key similarities and differences between these two forms of entrepreneurship and presents a framework on how to approach the social entrepreneurial process more systematically and effectively. We explore the implications of this analysis of social entrepreneurship for both practitioners and researchers.

Tri-sector partnerships in social entrepreneurship: discourse and practice of the actors from the circles of action and reflection

This article discusses the construction of tri-sector partnerships in three projects conducted in Brazil in different fields of intervention of public policy (access to water, basic education and performance of boards of rights of children and adolescents). Collaborative articulations involving the players from three sectors (the State, civil society and the market) are practices that are little studied in the Brazilian and even in the international context, as tri-sector partnerships are rare, despite the proliferation of lines of discourse in support of alliances between governments and civil society or between companies and NGOs in the management of public policy. As a research strategy, this study resorted to cooperative inquiry, a method that involves breaking down the boundaries between the subjects and the objects of the analysis. Besides working toward a better understanding of the challenges of building tri-sector partnerships in the Brazilian context, the article also tries to show the relevance to public policy studies of investigative methods based on the subjects studied, as a means of developing an understanding of the practices, lines of discourse and dilemmas linked to social action in social programs.

Institutional entrepreneurship and professionalization of the rural development of the sisal region in Brazil

This work analyses the professionalization of rural development in the Brazilian Northeastern region and how this created opportunities for entrepreneurship when the professional practices of funding bodies were transformed in accordance with local reality. This professionalization has its own characteristics, including fluid formats and the rolling out of networks, and it contributes to the theorization and dissemination of certain practices instead of being concentrated in professional associations and formal links with educational institutions. The main implications are commonly related to institutional processes related to professionalization, such as the emergence of certain organizational formats and the dissemination of professional practices that are considered legitimate. An additional consequence was observed in the area of rural development: the ideas and practices disseminated through professionalization were reinterpreted when the local entrepreneurs adapted them to their own thinking and needs.

The ability to innovate in international entrepreneurship

ABSTRACT In this article, the purpose was to analyze the ability to innovate in international entrepreneurship. Thus, a qualitative study of multiple cases was developed. Data was collected mainly by semi-structured interviews with 30 social subjects, and ATLAS.ti software supported content analysis. We observed that the entrepreneurs' innovative actions were focused on the product and production. As a result, it was found that the presence of the ability to innovate was intermittent throughout the internationalization process, except in only one of the companies, where it occurred continuously.

Business Exits entail greater future levels of entrepreneurship? An empirical analysis at country level

Using Global Entrepreneurship Monitor data for 41 countries this study investigates the impact of business exit on entrepreneurial activity at the country level. The paper distinguishes between two types of entrepreneurial activity according with the motive to start a new business: entrepreneurs driven by opportunity and necessity motives. The findings indicate that exits have a positive impact on future levels of entrepreneurial activity in a country. For each exit in a given year, a larger proportion of entrepreneurial activity the following year. Moreover, this e ffect turns out to be higher for opportunity entrepreneurs. The findings indicate that both types of entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors we find a di fferential impact on the entrepreneurship. The results show some important implications given that business exit may be overcome when there is a necessity motivation. This has important implications for both researchers and policy makers. JEL codes: L26. Keywords: Entrepreneurship, business exit, social values

Three essays in control, entrepreneurship and innovation

One of the key emphases of these three essays is to provide practical managerial insight. However, good practical insight, can only be created by grounding it firmly on theoretical and empirical research. Practical experience-based understanding without theoretical grounding remains tacit and cannot be easily disseminated. Theoretical understanding without links to real life remains sterile. My studies aim to increase the understanding of how radical innovation could be generated at large established firms and how it can have an impact on business performance as most businesses pursue innovation with one prime objective: value creation. My studies focus on large established firms with sales revenue exceeding USD $ 1 billion. Usually large established firms cannot rely on informal ways of management, as these firms tend to be multinational businesses operating with subsidiaries, offices, or production facilities in more than one country. I. Internal and External Determinants of Corporate Venture Capital Investment The goal of this chapter is to focus on CVC as one of the mechanisms available for established firms to source new ideas that can be exploited. We explore the internal and external determinants under which established firms engage in CVC to source new knowledge through investment in startups. We attempt to make scholars and managers aware of the forces that influence CVC activity by providing findings and insights to facilitate the strategic management of CVC. There are research opportunities to further understand the CVC phenomenon. Why do companies engage in CVC? What motivates them to continue "playing the game" and keep their active CVC investment status. The study examines CVC investment activity, and the importance of understanding the influential factors that make a firm decide to engage in CVC. The main question is: How do established firms' CVC programs adapt to changing internal conditions and external environments. Adaptation typically involves learning from exploratory endeavors, which enable companies to transform the ways they compete (Guth & Ginsberg, 1990). Our study extends the current stream of research on CVC. It aims to contribute to the literature by providing an extensive comparison of internal and external determinants leading to CVC investment activity. To our knowledge, this is the first study to examine the influence of internal and external determinants on CVC activity throughout specific expansion and contraction periods determined by structural breaks occurring between 1985 to 2008. Our econometric analysis indicates a strong and significant positive association between CVC activity and R&D, cash flow availability and environmental financial market conditions, as well as a significant negative association between sales growth and the decision to engage into CVC. The analysis of this study reveals that CVC investment is highly volatile, as demonstrated by dramatic fluctuations in CVC investment activity over the past decades. When analyzing the overall cyclical CVC period from 1985 to 2008 the results of our study suggest that CVC activity has a pattern influenced by financial factors such as the level of R&D, free cash flow, lack of sales growth, and external conditions of the economy, with the NASDAQ price index as the most significant variable influencing CVC during this period. II. Contribution of CVC and its Interaction with R&D to Value Creation The second essay takes into account the demands of corporate executives and shareholders regarding business performance and value creation justifications for investments in innovation. Billions of dollars are invested in CVC and R&D. However there is little evidence that CVC and its interaction with R&D create value. Firms operating in dynamic business sectors seek to innovate to create the value demanded by changing market conditions, consumer preferences, and competitive offerings. Consequently, firms operating in such business sectors put a premium on finding new, sustainable and competitive value propositions. CVC and R&D can help them in this challenge. Dushnitsky and Lenox (2006) presented evidence that CVC investment is associated with value creation. However, studies have shown that the most innovative firms do not necessarily benefit from innovation. For instance Oyon (2007) indicated that between 1995 and 2005 the most innovative automotive companies did not obtain adequate rewards for shareholders. The interaction between CVC and R&D has generated much debate in the CVC literature. Some researchers see them as substitutes suggesting that firms have to choose between CVC and R&D (Hellmann, 2002), while others expect them to be complementary (Chesbrough & Tucci, 2004). This study explores the interaction that CVC and R&D have on value creation. This essay examines the impact of CVC and R&D on value creation over sixteen years across six business sectors and different geographical regions. Our findings suggest that the effect of CVC and its interaction with R&D on value creation is positive and significant. In dynamic business sectors technologies rapidly relinquish obsolete, consequently firms operating in such business sectors need to continuously develop new sources of value creation (Eisenhardt & Martin, 2000; Qualls, Olshavsky, & Michaels, 1981). We conclude that in order to impact value creation, firms operating in business sectors such as Engineering & Business Services, and Information Communication & Technology ought to consider CVC as a vital element of their innovation strategy. Moreover, regarding the CVC and R&D interaction effect, our findings suggest that R&D and CVC are complementary to value creation hence firms in certain business sectors can be better off supporting both R&D and CVC simultaneously to increase the probability of generating value creation. III. MCS and Organizational Structures for Radical Innovation Incremental innovation is necessary for continuous improvement but it does not provide a sustainable permanent source of competitiveness (Cooper, 2003). On the other hand, radical innovation pursuing new technologies and new market frontiers can generate new platforms for growth providing firms with competitive advantages and high economic margin rents (Duchesneau et al., 1979; Markides & Geroski, 2005; O'Connor & DeMartino, 2006; Utterback, 1994). Interestingly, not all companies distinguish between incremental and radical innovation, and more importantly firms that manage innovation through a one-sizefits- all process can almost guarantee a sub-optimization of certain systems and resources (Davila et al., 2006). Moreover, we conducted research on the utilization of MCS along with radical innovation and flexible organizational structures as these have been associated with firm growth (Cooper, 2003; Davila & Foster, 2005, 2007; Markides & Geroski, 2005; O'Connor & DeMartino, 2006). Davila et al. (2009) identified research opportunities for innovation management and provided a list of pending issues: How do companies manage the process of radical and incremental innovation? What are the performance measures companies use to manage radical ideas and how do they select them? The fundamental objective of this paper is to address the following research question: What are the processes, MCS, and organizational structures for generating radical innovation? Moreover, in recent years, research on innovation management has been conducted mainly at either the firm level (Birkinshaw, Hamel, & Mol, 2008a) or at the project level examining appropriate management techniques associated with high levels of uncertainty (Burgelman & Sayles, 1988; Dougherty & Heller, 1994; Jelinek & Schoonhoven, 1993; Kanter, North, Bernstein, & Williamson, 1990; Leifer et al., 2000). Therefore, we embarked on a novel process-related research framework to observe the process stages, MCS, and organizational structures that can generate radical innovation. This article is based on a case study at Alcan Engineered Products, a division of a multinational company provider of lightweight material solutions. Our observations suggest that incremental and radical innovation should be managed through different processes, MCS and organizational structures that ought to be activated and adapted contingent to the type of innovation that is being pursued (i.e. incremental or radical innovation). More importantly, we conclude that radical can be generated in a systematic way through enablers such as processes, MCS, and organizational structures. This is in line with the findings of Jelinek and Schoonhoven (1993) and Davila et al. (2006; 2007) who show that innovative firms have institutionalized mechanisms, arguing that radical innovation cannot occur in an organic environment where flexibility and consensus are the main managerial mechanisms. They rather argue that radical innovation requires a clear organizational structure and formal MCS.