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Article
Publication date: 25 January 2022

Juan Martin Ireta Sanchez

This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology…

Abstract

Purpose

This multiple case study research aims to identify the characteristics of scaling up SMEs in Chile for exploring how and why some entrepreneurship in the information technology (IT) sector are able to scale up and develop sustainable strategies, based on three consecutive years. The average sales of the companies during the last period analysed was around US$1,323,579, with an average annual growth rate of 66.7%. Scaling up SMEs may require several attributes to achieve positive revenue and develop effective high growth rates that allow them to succeed over several years.

Design/methodology/approach

To discern the phenomenon of entrepreneurship, the methodology of multiple case study research was conducted in three parts. The first was to define and design the research process, in which the study should settle the theory analysis and then show that research propositions and questions. The second part of the research was to prepare, collect and analyse the data through crafting instruments and data collection protocols as a source of evidence to conduct the pilot and multiple case study. In this stage, interviews were scheduled, transcribed, analysed and coded to explore how individual attributes may create a scaling-up entrepreneurial process for maintaining or developing high performance in the IT sector. The last part of the research concludes and validates the research propositions for the identification for potential attributes, which were obtained during the qualitative study.

Findings

Attributes were selected when 13 or more SMEs reported the importance of this initiative for the process of scaling up their SMEs. As a result of the data analysis, the empirical findings suggest on the importance of the academic background, budgetary control, negative entrepreneurial experiences, building teams, geographical expansion and first critical experience as key attributes for scaling-up. Additionally, the data propose that constructive entrepreneurial ecosystem and reforms financing markets and programmes are two additional components that could moderate the interaction between the scaling-up process and the achievement of rapid sales results as a key outcome measure.

Research limitations/implications

The first limitation was the lack of consensus on the phenomenon of the scaling up of entrepreneurship. Information in Latin America and emerging countries is scarce, which also represents an opportunity for other researchers to deepen and validate the results reported here. Even though it was an attempt to understand the issue of environmental change, this additional limitation did not allow the evaluation of these adjustments over time that can positively or negatively drive the strategies corresponding to the evolution in each of the moderator variables.

Practical implications

Because of the characteristics of the sample in terms of size of the SMEs, industrial sector, location, culture, socio-economic environment and years of establishment of the company, the study cannot be generalised in terms of other industrial sectors or countries. The results of this research are also limited to SMEs in Chile, and to the extent that it can be applied to emerging countries IT sectors with similar sample characteristics, it must be done so with caution. Yin states that eight cases “are sufficient replications to convince the reader of a general phenomenon”.

Social implications

Policymakers have the option to identify what skills and knowledge the entrepreneur requires to be trained to scale up their established ventures. In this context, they will also benefit from the empirical contribution of knowing what the restrictions that limit this process are, such as adverse tax systems and public strategies. Additionally, it is of public interest because no national records exist on the presence of theoretical terms.

Originality/value

Even though the literature promotes the present findings, it shows that there is an absence of empirical evidence in emerging economies to better comprehend which factors may affect the development process of scaling up entrepreneurship in the IT sector. Both deliberate and emergent strategic initiatives are necessary for the scaling-up process where six critical factors are the basis of the scaling-up. This empirical contribution for entrepreneurs will support the achievement of rapid and sustained sales results for scaling up their ventures.

Article
Publication date: 14 December 2023

Juan Martin Ireta-Sanchez

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information…

Abstract

Purpose

The purpose of this study is to identify the business strategies that entrepreneurs have formulated to establish the business with the intention of scaling up in the information technology (IT) sector in Chile, given that they have managed to scale up sustainably at an average annual rate of 73.3% and an average annual employee growth rate of 37% for four consecutive years after an establishment period of 25 months.

Design/methodology/approach

Three methodological steps were used to identify which strategic initiatives are relevant to the establishment of small- and medium-sized enterprises (SMEs) on the path to scaling up. The first part consisted of identifying the literature and defining the research propositions and research questions. The second part was to prepare, collect and analyse the data to conduct the research by applying, transcribing, reviewing and coding the sources of evidence to explore how SMEs are able to develop strategic initiatives for the start-up process. The final stage was to validate the research proposal to identify potential strategic initiatives identified during the multi-case study.

Findings

As a result of the data analysis and empirical findings, three deliberate strategic initiatives were identified: staying engaged with customers, delivering successful business solutions and articulating social capital. However, in crisis situations, entrepreneurs readjust their strategies based on their management skills and an emergent strategic initiative was identified as securing the financial structure and revolutionising change. While this research was not designed to identify personal attributes, it did highlight the importance of adaptation and learning as a skill to drive the business model for scaling up during the establishment of their business.

Research limitations/implications

It is clear that the study focused on Chile and cannot be replicated in other regions or sectors due to the characteristics of the sample itself, but it provides empirical evidence that there are cycles prior to scale up that need to be understood. The findings were empirically validated during the establishment phase, but the deliberate and emergent strategic initiatives that consolidated the SME to prepare for its scale-up process are not evident in the theory.

Practical implications

The IT sector will continue to grow and change after the pandemic, and the global economy will use more digital systems, creating new ways of working with the use of IT. This context will impact on SMEs where strategies, whether deliberate or emergent, will need to be part of the new business models, and therefore, caution should be exercised when using the results of this study. Public and private institutions should educate and guide entrepreneurs for the potential scaling up of their SMEs without having to wait 42 months, according to Global Entrepreneurship Monitor 2021-2022 (Hill et al., 2022). Scaling up can begin as early as 25 months after establishment, breaking the paradigm of the theory that the SME must be established in a period of 3.5 years. This period cannot be generalised as business opportunities in the IT sector are faster. The research also contributes by reporting that contingency planning is relevant during the establishment phase.

Social implications

Educational institutions and the public sector have made efforts to change business cultures regarding the importance of strengthening entrepreneurship, but teaching the emergent strategies that often challenge SME creation is not yet widespread in educational formats. This is a challenge not only for institutions but also for entrepreneurs trying to anticipate the constant changes in the global economy. This research provides an opportunity to create more dynamic business models with more conscious risk planning.

Originality/value

Although the literature has confirmed the findings, this research has provided a pre-scaling picture that links these two important stages on the axis of deliberate and emergent strategies. The findings confirm the importance of correctly embedding five strategic initiatives for the establishment of the SME if it is to continue on its journey towards business scale-up. However, there is a lack of empirical evidence in emerging economies on how entrepreneurs have found the right path to scale-up.

Case study
Publication date: 21 June 2023

Sabyasachi Sinha and Naveen Kumar Malik

Data from HCL company and their corporate entrepreneurship activities were sourced using interviews and discussions. Secondary data was collected from the company website and…

Abstract

Research methodology

Data from HCL company and their corporate entrepreneurship activities were sourced using interviews and discussions. Secondary data was collected from the company website and other information available in the public domain.

Case overview/synopsis

This case narrates activities undertaken by the Enterprise Technology Office (ETO) of HCL Technologies Infrastructure Service Division to build the Corporate Entrepreneurship function. Around 2015–2016, the ETO started engaging with multiple people and organizations associated with the technology ecosystem outside the firm boundary for novel technologies and solutions. These entities included venture capitalists and start-ups. The ETO also began engaging with internal teams and existing customers to promote the identified novel technologies and innovative solutions. The ETO function grew organically by hiring resources from internal and external pools. ETO also undertook specific programs to increase the involvement of internal teams in their initiatives, like the Joint Exploration Program. ETO explored several options to further the ecosystem innovation strategy and institutionalize corporate entrepreneurship activities. The ETO team deliberated on ways to align the stakeholder goals and evaluate if technology could play a role.

Complexity academic level

This case can be used in any course on “Managing Corporate Entrepreneurship and Innovation,” “Strategic Management of Technology Enterprises” or any course focused on managing technology and innovation for graduate (MBA) or executive participants.

Details

The CASE Journal, vol. 20 no. 1
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 19 May 2022

Ajaz Akbar Mir, Sharfa Hassan and Sher Jahan Khan

Digital entrepreneurship is a highly topical, sub-specialist and contemporary branch of entrepreneurship which is providing ever-increasing range of platforms for pursuing…

1468

Abstract

Purpose

Digital entrepreneurship is a highly topical, sub-specialist and contemporary branch of entrepreneurship which is providing ever-increasing range of platforms for pursuing entrepreneurship-related career options. While the academic discourses in this area are increasingly growing, there is an equal level of scant attention paid to inquire how proclivity toward this career choice is developed and influenced. In the present study, this gap has been addressed by identifying major antecedents of digital entrepreneurship intentions under the aegis of capital theory.

Design/methodology/approach

Using the survey data from 287 respondents, structural equation modeling was utilized to explore the association of four antecedents: digital entrepreneurial competence, innovative cognition, social media adroitness and digital entrepreneurship role models on the goal intentions. Subsequently the association between goal intention and implementation intention to start a digital venture was also examined.

Findings

The analysis confirms the significant impact of the identified antecedents on the digital entrepreneurial volition of potential entrepreneurs. Our results demonstrate that innovativeness has the greatest impact on the goal intentions to create new digital ventures followed by the presence of role models. Digital competence is also a significant contributor in enhancing the propensity to start digital ventures while being digitally adroit has the least impact on such inclination. Lastly, our study provides empirical evidence to the linkage between goal and implementation intentions.

Originality/value

This paper informs practice on entrepreneurship education especially the role of skill-based education programs to enhance the information technology–related knowledge of students and incubation support for hands-on-training on the various dimensions of digital ventures. At policy-level institutions providing entrepreneurial education can design special tasks and learning activities that are focused on acquainting students with design thinking perspectives and lean start-up approaches.

Details

International Journal of Emerging Markets, vol. 18 no. 12
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 21 December 2023

Panagiotis Mitropoulos, Alexandros Mitropoulos and Aimilia Vlami

The purpose of this paper is to measure the high-quality entrepreneurial efficiency of family-owned small- and medium-sized enterprises (SMEs) while exploring the potential…

Abstract

Purpose

The purpose of this paper is to measure the high-quality entrepreneurial efficiency of family-owned small- and medium-sized enterprises (SMEs) while exploring the potential determinants of their performance. This study places particular emphasis on the firms' technological competencies and internationalization efforts. The authors aim to shed light on the internal and external characteristics that impact the efficiency of family SMEs.

Design/methodology/approach

This study adopts a two-stage approach. In the first stage, a data envelopment analysis model is utilized to measure the high-quality entrepreneurial efficiency of family SMEs. To achieve this, this study considered as outputs three key quality aspects of entrepreneurship, namely innovativeness, export orientation and turnover rate, while the inputs were the number of employees and the business environment. Then, in the second stage, the efficiency scores are regressed against a set of environmental factors that may affect the efficiency. The proposed efficiency measurement models are utilized with a particularly rich dataset of 1,910 family SMEs from 35 developed countries.

Findings

The results demonstrated that the efficiency of family SMEs primarily engaged in the production of goods was significantly higher than those providing services. Importantly, the presence of barriers related to innovation and digitalization had a pronounced negative impact on efficiency. Additionally, scale-up firms exhibited higher levels of efficiency. When examining family SMEs within their national context, it was observed that non-EU countries and countries with a higher gross domestic product displayed significantly higher efficiencies.

Originality/value

The findings of this research provide guidance for the development of entrepreneurship-oriented policies that consider both the internal characteristics of family SMEs and the diverse socioeconomic contexts in which they operate.

Details

Journal of Family Business Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2043-6238

Keywords

Book part
Publication date: 14 December 2020

Ishmael Obaeko Iwara

Over the years, there have been calls for the integration of the Igbo Traditional Business School (I-TBS) into the contemporary entrepreneurship space, especially in Africa, to…

Abstract

Over the years, there have been calls for the integration of the Igbo Traditional Business School (I-TBS) into the contemporary entrepreneurship space, especially in Africa, to scale up entrepreneurial activities. The I-TBS model has demonstrated prominence in influencing entrepreneurial culture, skills transfer, start-up support mechanisms, enterprise success and sustainability; however, its reliability and replicability are often questioned. Among a myriad of issues, lack of comprehensive documentation that isolates the merits as well as demerits, is a concern. An understanding of I-TBS’ validity, reliability, replicability and compatibility are others. As a result, it has been difficult to accord the model the needed recognition. This desktop review chapter, is an effort to contribute to the improvement of the model, synthesise its strengths, weaknesses, opportunities, and threats with specific reference to the Igba-Boi entrepreneurship scheme. The Atlas-ti v8 software was used in the synthesis. Based on the review, attributes such as togetherness and solidarity in business, free transfer of skills, upholding entrepreneurial culture which are passed from generation to generation and building family/social ties were key strengths of the model. The weaknesses come in the form of lack of regulations to monitor irregularities, inappropriate contractual method and the abuse of mentees. Openings for interested individual to access training, assurance for start-up capital and partnership/collaboration options were key opportunities. False accusations of mentees, breaching settlement agreement, unfair dismissal of mentee, and lack of solid ground for justice, are the major threats. It is expected that these findings will form the basis for further research and policy actions to improve the model.

Details

Indigenous African Enterprise
Type: Book
ISBN: 978-1-83909-033-2

Keywords

Article
Publication date: 12 July 2013

Allam Ahmed and Sonny Nwankwo

This paper aims to provide an over view of the different key factors that are influencing and influenced by the entrepreneurship environment in Africa.

1452

Abstract

Purpose

This paper aims to provide an over view of the different key factors that are influencing and influenced by the entrepreneurship environment in Africa.

Design/methodology/approach

The paper represents the outcome of many comprehensive research programmes undertaken in different countries in Africa and other parts of the world adopting various research methods and approaches.

Findings

The most profound and encouraging change in African economies over the past decade has been the rapid advancement towards integration into the global economy. Many of the countries have undertaken significant economic reforms; improving macroeconomic management, instigating conducive private investment climate, liberalizing markets and widening the space for entrepreneurship to drive strong and inclusive growth. However understanding the nature of problems, challenges and opportunities in Africa is a very difficult task for many people outside its territories.

Originality/value

Despite the regional coverage of the various issues relating to entrepreneurship development on Africa, it is not possible to have contributions from few countries in the region such as Chad, Somalia, etc., due to the current situation is these countries.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 9 no. 2/3
Type: Research Article
ISSN: 2042-5961

Keywords

Article
Publication date: 15 September 2021

Eli Gimmon and Christian Felzensztein

To better understand the emergence of small-scale entrepreneurial firms in the under-researched transition economy of Cuba.

Abstract

Purpose

To better understand the emergence of small-scale entrepreneurial firms in the under-researched transition economy of Cuba.

Design/methodology/approach

Given the scarcity of reliable publicly available information and restrictions on private data collection in Cuba, in-depth interviews were conducted with a panel of small-scale entrepreneurs at three different points in time. Evolutions are analyzed over this period.

Findings

Family can overcome institutional constraints by helping the entrepreneur deal with market and social obstacles. Despite the absence of a supportive entrepreneurial ecosystem, these new entrepreneurs and their families have been able to transform longstanding passive attitudes into positive steps to set up new small-scale ventures in a country facing unprecedented internal and external challenges.

Originality/value

A new conceptual model of family support for entrepreneurship in transition economies is presented. The findings lend weight to institutional theory on overcoming constraints in emerging markets and extend the theory of family entrepreneurship to new transition economies.

Details

International Journal of Emerging Markets, vol. 18 no. 9
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 11 June 2021

Ngoc Le and Vanessa Ratten

Digital marketing is becoming the dominant marketing communication method for companies and consumers around the world. The reason for this is due to the real time communication…

Abstract

Digital marketing is becoming the dominant marketing communication method for companies and consumers around the world. The reason for this is due to the real time communication advantages that make it an effective marketing method. The aim of this chapter is to focus on how digital marketing relates to social entrepreneurship in Vietnam, thereby offering a new perspective on the role of social entrepreneurship in developing digital marketing techniques. This will contribute to the existing literature on digital marketing and social entrepreneurship by extending it to an emerging economy setting. Implications for practitioners and policymakers are given that highlight the need for more social enterprises to incorporate digital marketing techniques.

Article
Publication date: 7 December 2021

Christian Felzensztein and Eli Gimmon

This study aims to understand the necessity of entrepreneurship in a poor emerging economy, where the supportive entrepreneurial ecosystem is not in place.

Abstract

Purpose

This study aims to understand the necessity of entrepreneurship in a poor emerging economy, where the supportive entrepreneurial ecosystem is not in place.

Design/methodology/approach

In the years 2015 and 2019, this study survey first-time small-scale emerging entrepreneurs within the new entrepreneurial ecosystem in Cuba.

Findings

The results suggest that the entrepreneurial environment has deteriorated and declined over this period. The study contributes to the understanding of high-vulnerability regions and poverty conditions as found in some emerging economies. This study contributes to the wider literature on policies that inhibit or stimulate necessity entrepreneurship in emerging economies.

Originality/value

The study responds to calls for a better understanding by offering new insights into necessity entrepreneurship in challenging contexts under poverty and crisis; and the ways for recovery. It provides insights into the underexplored Cuban economy.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

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