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Article
Publication date: 21 May 2019

Talah S. Arabiyat, Metri Mdanat, Mohamed Haffar, Ahmad Ghoneim and Omar Arabiyat

The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative

Abstract

Purpose

The purpose of this paper is to improve understanding of how different aspects of the national institutional environment may influence the extent of innovative entrepreneurial activities across countries. Several institutional and conductive factors affecting a country’s capacity to support innovative entrepreneurship are explored.

Design/methodology/approach

Institutional theory is used to examine the national regulatory, normative, cognitive and conducive aspects that measure a country’s ability to support innovative entrepreneurship. A cross-national institutional profile is constructed to validate an entrepreneurial innovation model. The impacts of country-level national institutions on innovative entrepreneurial activity as measured by Global Entrepreneurship Monitor data are assessed through structural equation modeling.

Findings

Knowledge about the influence of specific institutional aspects on innovative entrepreneurship, and hence of institutional structures within and across countries, is enhanced. For new innovative enterprises, conductive and regulatory aspects seem to matter most. All conductive factors have a significant and positive impact on entrepreneurial activity rates.

Research limitations/implications

Results could support policy makers and practitioners in evaluating government policies’ effects on innovative entrepreneurship. Interventions should target both individual attributes and context. Future research could include longitudinal designs to measure the direction of causality.

Practical implications

Aspects such as regulatory institutions, and conductive factors such as information communication technology use and technology adoption, are important for innovation entrepreneurship development.

Originality/value

The literature on institutional theory and innovative entrepreneurship is highly limited. This study complements growing interest in empirical analysis of the effects of national institutions on innovative entrepreneurial activities and substantiates previous empirical work.

Details

Journal of Enterprise Information Management, vol. 32 no. 3
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 15 August 2016

Manoj Chandra Bayon, Esteban Lafuente and Yancy Vaillant

The purpose of this paper is to examine the direct and interaction effect of individuals’ human capital input and human capital output in the form of entrepreneurial…

Abstract

Purpose

The purpose of this paper is to examine the direct and interaction effect of individuals’ human capital input and human capital output in the form of entrepreneurial self-confidence on the decision to exploit innovative opportunities.

Design/methodology/approach

Using a strategic entrepreneurship perspective, the authors suggest that when individuals with high human capital decide to exploit opportunities they do so by thinking and acting strategically. Strategic action(s) involves pursuing competitive advantages that enable a new venture to get a foothold in the market. The authors argue that such competitive advantages arise from the exploitation of innovative opportunities and individuals with high human capital are more likely to exploit innovative opportunities when they develop entrepreneurial self-confidence. The empirical analysis is based on a random sample of individuals from the adult population who are in the process of creating a new venture.

Findings

The results suggest that although human capital inputs and human capital output in the form of entrepreneurial self-confidence are significant factors in influencing the decision to exploit innovative opportunities, human capital inputs interact in different ways with human capital output in influencing this decision.

Research limitations/implications

The main limitation of the authors’ study is the use of single item measures as indicators of innovative opportunity and human capital output (entrepreneurial self-confidence).

Practical implications

From a macro-perspective, the main implication of the study is that it is possible to assess the quality of entrepreneurship in an economy through individuals’ human capital and the proportion of innovative opportunities in the economy. Moreover, because not all types of human capital inputs influences the exploitation of innovative opportunities, policy makers can be selective in their policy interventions in spawning quality entrepreneurship in their economy.

Originality/value

Based on population-level data the authors’ study provides empirical evidence of the nature of entrepreneurial decisions being at the earliest phases of the entrepreneurial process. The study shows the importance of founders’ human capital inputs and outputs in influencing the quality of entrepreneurship in an economy. Moreover, the study extends the understanding the individual-opportunity nexus in promoting innovative entrepreneurship in an economy.

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Article
Publication date: 25 February 2014

Claude Marcotte

After presenting a brief review of the Schumpeterian and Kirznerian views on entrepreneurship, the purpose of this paper is aims to measure the two views within the…

Abstract

Purpose

After presenting a brief review of the Schumpeterian and Kirznerian views on entrepreneurship, the purpose of this paper is aims to measure the two views within the economic and institutional contexts of emerging economies.

Design/methodology/approach

Configurations of innovative entrepreneurship, opportunity entrepreneurship and contextual variables were assessed using cluster analysis on 16 emerging countries.

Findings

Four profiles were found: innovative entrepreneurship of the Schumpeter Mark I type, innovative entrepreneurship of the Schumpeter Mark II type, opportunity entrepreneurship of the Kirznerian form and a fourth cluster described as a potentially emerging Schumpeter Mark II profile. The economic and governance indicators were favorable in the two innovative entrepreneurship clusters, whereas the contextual indicators of innovation were particularly favorable in the Schumpeter Mark II group.

Research limitations/implications

The study demonstrated the importance of aligning theory, methods and context in comparative entrepreneurship research. Profiling countries on theory-based entrepreneurial dimensions appears as a viable approach. However, the results also pointed to the need for more attention to the dynamic aspects of country entrepreneurial activity. Another limitation lies in the low number of emerging countries for which complete comparable data are available.

Practical implications

For policy makers, it may be interesting to examine our results showing that the economic and governance correlates are more favorable in the two innovative clusters.

Originality/value

The study is one of the few recent attempts to clarify the relationship between entrepreneurship and innovation in the context of emerging economies.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 20 no. 1
Type: Research Article
ISSN: 1355-2554

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Article
Publication date: 6 June 2016

Sepideh Solhi and Emadeddin Rahmanian Koshkaki

The purpose of this paper is to explore the influence of social and business context of developing counties (in this paper Iran) on developing, forming and exhibiting…

Abstract

Purpose

The purpose of this paper is to explore the influence of social and business context of developing counties (in this paper Iran) on developing, forming and exhibiting entrepreneurial innovative behaviour leading to entrepreneurship. The developed model illustrates the most important factors in forming such behaviour.

Design/methodology/approach

In this paper, networked grounded theory was used to develop a path model for entrepreneurial innovative behaviour antecedents based on Iranian entrepreneurial context.

Findings

This paper shows that in Iranian entrepreneurship context, innovation is sensitive to local conditions and levels of technological capabilities. Also, Iran’s situation brings another aspect of innovation in mind, innovative behaviour of individuals in forms of entrepreneurships to compensate the lack of technology in the firms.

Research limitations/implications

Due to the research approach and the quality of grounded theory, data gathering tool and sampling process, the generalizability of this paper is limited or may be context oriented; the results of this research must be interpreted within its limitation and scope.

Originality/value

This paper is the first study trying to develop a model on entrepreneurial innovative behaviour in Iran which develops a model based on the realities of Iran rather than model based on developed countries with different basis and context.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 8 no. 2
Type: Research Article
ISSN: 2053-4604

Keywords

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Article
Publication date: 13 April 2012

Tiit Elenurm

The purpose of this paper is to explain the implications of different entrepreneurial orientations on business start‐up and development challenges.

Abstract

Purpose

The purpose of this paper is to explain the implications of different entrepreneurial orientations on business start‐up and development challenges.

Design/methodology/approach

This research reflects surveys of 1,075 experienced entrepreneurs and business and entrepreneurship students in Estonia during the years 2005‐2010. An additional method is action learning and reflections of training focused on recognising new business opportunities during the economic crises.

Findings

Combinations of co‐creative and innovative entrepreneurial orientations are more popular than the imitative entrepreneurial orientation. There is, however, an essential contradiction between stressing the principles of co‐creative orientation at the first stages of business opportunity identification and taking a more individualistic approach to innovation at later stages of the business development process and implementing the related changes. Potential entrepreneurs developing radically new innovative ideas in emerging economies should assess more realistically their existing core competences and search for opportunities to improve their competence base through cross‐border networking.

Research limitations/implications

Surveys that apply the self‐assessment tool do not comprise a representative sample of all Estonian entrepreneurs. These surveys have been conducted in training settings and support self‐development of trainees. Research results can be used for differentiating entrepreneurship training and education. An important opportunity for entrepreneurship education in the context of organisational change is to support the cross‐border exchange of entrepreneurial ideas between “blue ocean dreamers”, who sometimes lack entrepreneurship experience, and more experienced entrepreneurs, who may be trapped in some regionally‐limited business in a highly competitive domestic market.

Originality/value

The results of the research explain why entrepreneurship training has to take into consideration differences between imitative, individually innovative and co‐creative entrepreneurs.

Details

Baltic Journal of Management, vol. 7 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

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Book part
Publication date: 7 December 2016

Arch G. Woodside, Pedro Mir Bernal and Alicia Coduras

This chapter shows how to construct and test case-based macro models. The chapter makes use of national data to examine influences on quality-of-life of national cultures…

Abstract

Synopsis

This chapter shows how to construct and test case-based macro models. The chapter makes use of national data to examine influences on quality-of-life of national cultures as complex wholes and entrepreneurship activities in Brazil, Russia, India, China, Germany, and the United States (the six focal nations) plus Denmark (a small-size, economically developed, nation). The study tests McClelland’s (1961) and more recent scholars’ proposition that some cultural configurations nurture entrepreneur startups, while other cultures are biased toward thwarting startups. The study applies complexity theory to develop and empirically test a general theory of cultures’, entrepreneurship’s, and innovation’s impact on quality-of-life across nations. Because culture represents a complex whole of attitudes, beliefs, values, and behavior, the study applies a set-theoretic approach to theory development and testing of alternative cultural configurations. Each of 28 economical developed and developing nations is scored for the level of the national cultures for each of six focal countries. The study selected for the study enables multi-way comparisons of culture-entrepreneurship-innovation-QOL among large- and small-sized developing and developed nations. The findings graphically present the complex national cultural configuration (x-axis) with entrepreneur nurture/thwart (y-axis) of the 28 nations compared to the six focal nations. The findings also include recognizing national cultures (e.g., Switzerland, the United States) nurturing entrepreneurial behavior versus other national cultures (e.g., Brazil and India) thwarting entrepreneurial behavior. The study concludes with a call to recognize the implicit shift in culturally implicit thinking and behavior necessary for advancing national platforms designed to successfully nurture entrepreneurship. Entrepreneur strategy implications include the observation that actions nurturing firm start-ups by nations low in entrepreneurship will unlikely to be successful without reducing such nations’ high levels of corruption.

Details

Case Study Research
Type: Book
ISBN: 978-1-78560-461-4

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Article
Publication date: 5 December 2018

Ali Raza, Moreno Muffatto and Saadat Saeed

The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an…

Abstract

Purpose

The purpose of this paper is to clarify the relationship between entrepreneurial cognition and innovative entrepreneurial activity (IEA) across countries using an institutional perspective.

Design/methodology/approach

The paper tests theoretical model using data collected by the Global Entrepreneurship Monitor, the Global Leadership and Organizational Behavior Effectiveness study and the Index of Economic Freedom (IEF). A multi-level analysis is performed based on set of 1,004,620 observations from 49 countries spanning 13 years (2001–2013).

Findings

The results suggest that in terms of formal regulations; the relationship between entrepreneurial cognitions and IEA becomes stronger when there is an increase in intellectual property right and business freedom regulations in a country. On the other hand, in terms of informal institutions the relationship between entrepreneurial cognitions and IEA becomes stronger when the level of institutional collectivism and uncertainty decreases and performance orientation increases.

Originality/value

The study indicates that entrepreneurship by innovation increases when the individuals possess high level of entrepreneurial cognition under suitable institutional conditions (e.g. intellectual property right, business freedom, institutional collectivism, uncertainty avoidance and performance orientation).

Details

Management Decision, vol. 58 no. 7
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 18 April 2018

Veronika Bikse, Inese Lusena – Ezera and Baiba Rivza

The purpose of this study is to identify the problems and possibilities for development of innovative start-ups in Latvia.

Abstract

Purpose

The purpose of this study is to identify the problems and possibilities for development of innovative start-ups in Latvia.

Design/methodology/approach

To achieve the aim of this study, a survey of Latvia’s high school students in 2015 (n = 5,910) was undertaken by an online questionnaire within a financial skill built-up contest “New Financial Expert 2016” held by the Financial Institute of Swedbank (Swedbank survey, 2016). Further, Latvia University of Agriculture master students (n = 97) were interviewed in the year 2016 to identify master students opinion about necessary support for entrepreneurship, future services or goods with potentially high added value and find out their readiness for innovative action.

Findings

A comparative analysis of data of the master student interviews and the survey of Latvia’s high school students showed that most of the youth associated their entrepreneurship prospects with innovative ideas, new technologies and new skills. The results of the research indicated that the foundation of start-up enterprises in Latvia led to positive results and gave an impulse to increasing economic activities as there were the necessary preconditions for their development.

Originality/value

The studies are mostly dedicated to start-ups that are less likely to innovate and have linked the concept of the start-up with business incubation. Unlike other studies, this is a specific research that provides insights into the situation in Latvia and is directed toward building innovative start-up enterprises that should be linked with the growth-oriented new technology, globalization and global market with a focus on innovation. Thus, research findings contribute to extant research on the possibilities of development of innovative start-up enterprises in Latvia and advance the present understanding of the main problems in the creation of new innovative start-ups.

Details

International Journal of Innovation Science, vol. 10 no. 2
Type: Research Article
ISSN: 1757-2223

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Article
Publication date: 25 May 2012

David Audretsch

With the rapid emergence of scholarly thinking and analysis about entrepreneurship has come a multiplicity of approaches, emanating from different academic traditions…

Abstract

Purpose

With the rapid emergence of scholarly thinking and analysis about entrepreneurship has come a multiplicity of approaches, emanating from different academic traditions. This has resulted in an academic field that is complex and heterogeneous with respect to approaches, methodologies and even the understanding about what exactly constitutes entrepreneurship. The purpose of this paper is to try to reconcile the different approaches and views about entrepreneurship that are prevalent in the literature.

Design/methodology/approach

The paper takes the form of a literature review.

Findings

The paper finds that while such heterogeneity can be the source of a nuanced and at times contractor research field, it is also the source of richness and diversity that has contributed to making the emerging field so dynamic.

Practical implications

The field of entrepreneurship should remain committed to a diversity of approaches, understandings and methodologies about what constitutes entrepreneurial activity.

Originality/value

The value of the paper is that it presents a coherent framework that reconciles disparate approaches and understandings about what actually constitutes entrepreneurship.

Details

Management Decision, vol. 50 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 1 October 1996

Angelo Fusari

Sets out a model giving an interpretation of the engine of economic development and growth, and business cycle. Based on a peculiar concept of dynamic competition…

Abstract

Sets out a model giving an interpretation of the engine of economic development and growth, and business cycle. Based on a peculiar concept of dynamic competition, explains innovation and uncertainty and describes the way equilibrating and disequilibrating processes are intertwined and operate. Carries out concise application to successive stages of economic development, along with some econometric application, that demonstrates the degree of generality and flexibility of the theory proposed and provides a comprehensive interpretative tool and pictures of different growth processes and the crucial factors on which they depend.

Details

International Journal of Social Economics, vol. 23 no. 10/11
Type: Research Article
ISSN: 0306-8293

Keywords

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