Published by De Gruyter

Volume 9 Issue 3 -

July 2019

Issue of Entrepreneurship Research Journal

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Contents
Journal Overview

October 23, 2018

Blowing Smoke? How Early-Stage Investors Interpret Hopeful Discourse within Entrepreneurially Oriented Business Plans

William Wales, Kevin C. Cox, Jason Lortie, Curtis R. Sproul

Article number: 20180114

Abstract

This study examines how written expressions of entrepreneurial orientation (EO) and hope may affect investor evaluations of funding potential in business plan competitions. To understand why some firms are evaluated more favorably, we combine screening and signaling theory when analyzing early-stage venture-investor communication. Findings support that expressions of EO while business planning contribute to greater expressions of hope to cope with the Knightian uncertainty when developing new business models. Results suggest that the impact of hopeful dialogue on investor impressions of fundability critically depends upon the presence or absence of past founder financial investment. Implications for future research are discussed.

October 4, 2018

Investigation of the Factors Influencing SME Failure as a Function of Its Prevention and Fast Recovery after Failure

Nenad Nikolić, Ivan Jovanović, Đorđe Nikolić, Ivan Mihajlović, Peter Schulte

Article number: 20170030

Abstract

This paper presents a conceptual framework for investigation of the factors influencing the failure of small and medium enterprises (SMEs) as well as the level of their recovery. Based on the review of literature, all the factors are classified either as individual characteristics of entrepreneurs or non-individual characteristics, that is, characteristics related to SMEs. Having in mind various factors identified by different researchers in their studies, the authors of this paper formed a basic hypothetical framework as well as a qualitative framework for evaluation of the most significant factors influencing SME failure and recovery. Accordingly, a preliminary questionnaire was designed in order to collect the attitudes of entrepreneurs regarding the impact of particular factors. The results of the survey were used for further quantitative analysis and as a base for the formation of a structural equation model for testing the proposed hypotheses. Using the structural equation model to derive results, the authors have found that all the analysed factors except the factors related to private time activities of entrepreneurs/owners of SMEs have a statistically significant influence on SME success, with external non-individual factors having the greatest influence. Furthermore, the results indicate that the level of recovery, business life cycle stage and the sector of a failed SME impact on the ranking of the factors leading to SME failure. The study points to the necessity of improving the conditions under which SMEs operate, primarily by removing the obstacles that hinder growth and development of SMEs as well as by developing the appropriate system of support for entrepreneurs. In addition, having a clear vision of the factors of failure can help SMEs to become more resistant to the adverse effects of these factors and deal with them more effectively.

September 26, 2018

Firms’ Proactiveness During the Crisis: Evidence from European Data

Jan Brzozowski, Marco Cucculelli, Valentina Peruzzi

Article number: 20170215

Abstract

This paper contributes to the literature on the entrepreneurial behavior of firms during the economic crisis, by investigating the determinants of proactive behavior on a large sample of European companies during the 2008–2009 financial crisis. We explore various dimensions of proactive behavior, including: investments in innovation, expanding product offer, undergoing quality certification, investing in tangible assets and avoiding layoff. Our findings show a surprising heterogeneity of determinants in the case of different proactivity measures, especially when considering the impact of public policies which support entrepreneurship. We also provide some evidence supporting the organizational learning hypothesis with regard to proactiveness, as we show that the previous crisis experience matters in the case of the adoption of proactive or reactive strategy by a firm.

July 10, 2018

Innovation Culture in SMEs: The Importance of Organizational Culture, Organizational Learning and Market Orientation

Hasliza Abdul-Halim, Noor Hazlina Ahmad, Alan Geare, Ramayah Thurasamy

Article number: 20170014

Abstract

Academic and practitioner have considered innovation as an approach to produce value to customer in order to remain competitive in the market. However, previous studies on innovation culture among small and medium enterprises (SMEs) have received little attention and SMEs need to inculcate the innovation culture in order to generate innovation. Hence, the purpose of this paper is to investigate empirically the influence of organizational culture, organizational learning and market orientation on innovation culture. A questionnaire-based survey was conducted to gather data from SMEs in Malaysia. Questionnaires were distributed and gathered with a total of 183 usable responses. The analysis was conducted via SMART PLS to produce interesting findings. Findings suggest that all dimensions of organizational culture (adaptability, involvement, mission and consistency) have an influence on innovation culture, organizational learning in terms of information acquisition and behavioural & cognitive have an impact on innovation culture. Finally, only competitor orientation influences innovation culture. Although SMEs play an important role within the Malaysia economy, their contribution to innovation is small and marginal. This study makes an important contribution by providing information to SMEs on the elements that could nurture innovation culture in their organizations. As such, it is hoped that this study will generate interest among the researchers to reach more conclusive evidence about the practice of innovation culture among SMEs in Malaysia. More effort should be devoted to comprehending the concept of innovation culture among SMEs from the context of developing country. The findings combined with the suggestions may offer alternative insights on innovation culture and extend a basic framework for further investigation.

July 10, 2018

The 4 I’s of Entrepreneurship: A Study of the Entrepreneurial Perspectives behind A Failed Large-Scale Distributed Research Infrastructure

Anthony Larsson

Article number: 20170115

Abstract

This case study investigates whether collective entrepreneurial team cognition remains consistent throughout all stage processes when setting up a large-scale, distributed research infrastructure. A new “action phase model” has been devised, known as the “4 I’s of entrepreneurship”, with each “I” elucidating the entrepreneurial rationale behind various stages of the creation process: Intention, Initiation, Implementation and Introspection . The case investigated was BBMRI.se ( BioBanking and Molecular Resource Infrastructure in Sweden ) – a Swedish large-scale distributed research infrastructure aimed at harmonizing biobanking standards. Managers and key personnel involved in founding and/or operating the organization were interviewed. The results showed there was agreement regarding the need for the research infrastructure, while there were disagreeing perceptions of what the organization should be doing and regarding the difficulties it had faced. These developments would ultimately lead to BBMRI.se’s demise. The homogenous mindset would begin to dissipate once the Initiation stage was reached and worsened throughout the Implementation stage. The results indicate that BBMRI.se’s managerial structure, personal ambitions and lack of transparency and communication were key contributors to its ultimate failure. The implications highlight the risk of fragmented motivations as collective entrepreneurs turn their ambition into reality, if given too much autonomy.

About this journal

Objective
Entrepreneurship Research Journal (ERJ) was launched with an Inaugural Issue in 2011. Professor Ramona Zachary at Baruch College and Professor Chandra Mishra at Florida Atlantic University introduce a new forum for scholarly discussion on entrepreneurs and their activities, contexts, processes, strategies, and outcomes. Positioned as the premier new research journal within the field of entrepreneurship, ERJ seeks to encourage a scholarly exchange between researchers from any field of study who focus on entrepreneurs, and will include both theoretical and empirical articles, with priority being given to high quality theoretical and empirical papers that have managerial or public policy orientation as well as ramifications for entrepreneurship research overall.

Topics

Research Modeling, Design, and Methods

entrepreneurship theories and conceptualizations
entrepreneurship research methods

The Individuals-Opportunities-Resources Nexus

nascent entrepreneurs
opportunity recognition, drivers of value creation, and emergence
innovation and technology entrepreneurs
entrepreneurial risk and reward
entrepreneurial cognition and behavior

Inclusive of Near Environments

family entrepreneurship, networks, teams and alliances
venture capital and angel investor groups
entrepreneurial communities, hubs, clusters and public policy
social entrepreneurship

Distinct Entrepreneurial Stage or Setting

entrepreneurial growth and strategy
boards, governance and leadership
corporate entrepreneurship
international and emerging market entrepreneurship

Article formats
Invited Editorials, Competetive Research Articles, Commentaries