Revisiting entrepreneurial capabilities and export market orientation: a multi-scale investigation in an emerging economy

Purpose: The study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale entrepreneurial capabilities have been adopted to provide more profound insights into the early literature on internationalisation. Since little is known about the antecedents of export market orientation, the performance outcome of this is ambiguous. This study aims to enhance knowledge in this pressing research area. Design and Methodology: The sample of this study consists of data (354 firms) from INVs operating in the apparel industry of an emerging economy, namely, Bangladesh. Structural equation modelling has been used to investigate the hypothesised relationships. Findings: For the Deshpande and Farley (1999) scale, the effect of general entrepreneurial capability on intelligence dissemination and responsiveness is positively significant. Similarly, the effects of international entrepreneurial capability on customer orientation, intelligence generation, dissemination, and responsiveness are positively significant. However, general entrepreneurial capability has non-significant effects on customer orientation and intelligence generation. The results also showed that export market orientation positively mediates the relationship between international entrepreneurial capability and firm performance. For Morris and Paul (1987) scale, our hypothesised relationships between capabilities and market orientation are positively significant, and, therefore, support the mediating relationships for both general entrepreneurial capability and international entrepreneurial capability. Originality/value: Merely having capabilities without acknowledging the firm’s strategic orientations is not sufficient to secure superior performance. We urge entrepreneurs to capitalise on their entrepreneurial capabilities to leverage organisation-wide export market-oriented behaviour to achieve superior international performance in emerging economies

A multi-level study of entrepreneurial characteristics, IPR, and the degree of internationalization

An emerging topic in strategic entrepreneurial research is how institutional influences impact on entrepreneurial internationalization behavior. This paper sets out to undertake a multilevel study regarding the impact of home country IPR on the relationships among entrepreneurial self-efficacy, entrepreneurial opportunity perception, risk tolerance, and the degree of internationalization. Through a combination of the dynamic capability perspective and entrepreneurial bricolage theory, we propose a model that underpins the role of home country institutional influence, in particular, IPR during the internationalization of new ventures. Using a sample of 91 countries, we empirically test the model via multi-level logistic regression analysis controlling micro as well as macro variables such as personal education level, gender, household income, purchasing power per capita, and GDP growth rate. Our findings suggest that higher IPR protection mechanism in the home country will strengthen the positive relationships between entrepreneurial self-efficacy and the degree of internationalization, entrepreneurial risk tolerance and the degree of internationalization. However, although the findings support the positive relationship between entrepreneurial opportunity perception and the degree of internationalization, the moderating effect of IPR protection in the home country is not supported for such relationship. Our study contributes to the literature by extending entrepreneurial bricolage theory and dynamic capability approach into international entrepreneurship research. We advance the understanding of how the protection of intellectual property in home country influences the internationalization efforts into new ventures taking consideration of the personal-level characteristics of entrepreneurs

The Performance of University Spin-Offs: The Impact of Entrepreneurial Capabilities and Social Networks of Founding Teams during Start-Ups

Objectives: University spin-offs have increasingly received attention from academia, governments, and policymakers because they not only generate new innovations, productivity, and jobs the regional economies but also significantly improve university productivity and creativity (Hayter, 2013, Urbano and Guerrero, 2013). However, a lack of understanding of the contribution made by a founding team to a spin-off’s performance still remains within current studies. Employing a resource-based view theory and social networks approach, this paper addresses this gap by exploring university spin-offs in Spain. Prior work: University spin-off studies have concentrated on analysing entrepreneurial business models (Ndonzuau et al., 2002, Vohora et al., 2004b, Bower, 2003, Mets, 2010) to understand how the commercialization of research is undertaken to create a university spin-off. University spin-offs were also been analysed from the perspective of a university’s capabilities (Powers and McDougall, 2005), or capabilities and social networks of an established spin-off instead of the founding teams (Walter et al., 2006). Moreover, Vohora et al. (2004a) and Shane (2004) have suggested founders need to build capable teams, which must have entrepreneurial capabilities and qualitative social networks, to create effective university spin-offs. Both entrepreneurial capability and social network theory have been studied in prior entrepreneurship research, but have received less attention within the context of the university spin-offs (Gonzalez-Pernia et al., 2013). Approach: Utilising an internet-based survey, this paper explores entrepreneurial capabilities and social networks of founding teams in Spanish university spin-offs using quantitative data analysis. Basing upon resource-based view theory of Barney (1991) to study entrepreneurial capabilities of the founding teams, the research employ entrepreneurial technology, strategy, human capital, organizational viability, and commercial resources (see Vohora et al., 2004a). To study social networks of a founding team, we employ the conceptual model of Hoang and Antoncic (2003) that divides networks into three components: structure, governance, and content. Results and implications: The results from an examination of the sample of 181 Spanish university spin-offs empirically demonstrate that by exploiting social networks a founding team can improve its entrepreneurial capabilities, which in turn enhance its spin-off’s performance. By employing the work of Vohora et al. (2004a) and Shane (2004), this paper constructs a model in which entrepreneurial capabilities play a mediate role between social networks and spin-off’s performance. Thus, the paper has implications for universities in training and policy development to support spin-off’s activity. Value: This study addresses some fundamental questions to contribute to the theory-based understanding of university spin-offs: How do entrepreneurial capabilities of founding teams influence the performance of university spin-offs? How do social networks of founding teams contribute to the process of the university spin-offs

University Spin-off Fundraising: The Impact of Entrepreneurial Capabilities and Social Networks Of Founding Teams during Start-ups

University spin-offs have increasingly received attention from academia, governments, and policymakers in studying the financing policies, venture capital investment decision making, the roles of venture capitalist in the development of new ventures, and the contributions of entrepreneur’s social capital to the fundraising activities. However, the limited number of studies in understanding of the contribution made by the entrepreneurial capabilities and social networks of a founding team to its fundraising ability still remains, especially within university spin-off context. Employing resource-based view theory and social networks approach, this paper enriches the knowledge by exploring university spin-offs in Spain. The results of this study empirically demonstrate that by exploiting social networks a founding team can improve its entrepreneurial capabilities, which in turn enhance its fundraising ability

The impact of export-oriented entrepreneurship on regional economic growth

Although export-oriented new ventures and the field of international entrepreneurship have received considerable attention by scholars during the last decade (Oviatt and McDougla, 2005), their potential economic impact has not been sufficiently analyzed yet. To the best of our knowledge, no studies on this issue have been carried out at regional level. Despite the increasing impact of globalization, regions have emerged as the essential and active unit of economic development process (Scott and Stopper, 2003). Regions are influential environments fostering entrepreneurship (Feldman, 2000). This is especially true for knowledge-based entrepreneurship since proximity to knowledge sources matters in order to discover opportunities and exploit them (Audretsch, 1998). Moreover, regions differ culturally and economically, and such differences encourage or discourage people to venture in entrepreneurial activity. We analyze the impact of export-oriented entrepreneurship on regional growth using data provided by the Global Entrepreneurship Monitor project and the Spanish Institute of Statistics, for 17 NUTS-2 Spanish regions over a period of six years. After controlling for catching-up effects (van Stel et al., 2005), as well as, other drivers of economic growth (e.g. change in technology capability and human capital), we found evidence that those regions with a higher percentage of adult population involved in export-oriented entrepreneurship experience a higher GDP growth. This relationship is greater as the level of foreign customers served by the entrepreneurial initiatives is substantially higher (i.e., at least 1%, 25% or 75% of customers located abroad). These results support those found at national level by Hessels and van Stel (2009). However, our paper adds to the extant literature on entrepreneurship by analyzing the role of entrepreneurial activity with different levels of export intensity on regional growth under a longitudinal context. Policy implications derived from these results suggest that trade policies for export promotion among new ventures should be carried out at regional level. Otherwise, exporting new ventures may concentrate only on certain regions, which would help to increase differences on growth within a nation.

Understanding Entrepreneurship Process and Growth in Emerging Business Ventures under Market Socialism in China

Objectives: This paper aims to provide an insightful view of the entrepreneurial process and growth in different types of Chinese entrepreneurial enterprises under market socialism in China. This issue is explored by examining the organisational characteristics of three emerging business ventures under market reforms and institutional changes. It addresses the interactive effect of key contingency factors in entrepreneurship process and explains its impact on growth or failure outcomes in a particular ‘China type’ of market economy. Prior work: China’s hybrid economic system represents a mixed political economy with both socialist and capitalist characteristics (Lichtenstein, 1992; Morphy et al, 1992; Opper, 2001). Despite a growing body of research on Chinese small business practices alongside the economic reforms (Shen, 1994; Child, 1994; Naughton, 1994; Schlevogt, 2001; Warner, 2004; Yang, 2007; Kshetri, 2007; Yang and Li, 2008), more empirical studies are required to provide a critical insight into the emerging business practices. This research adopts a contingency model of entrepreneurship(Wickham, 2006) to examine entrepreneurship process and growth in different types of business venture. It reveals the interactive relationships among key variables such as strategy, ownership, culture and management process. Approaches: This research is undertaken through the empirical analysis of three case study companies in the textile industry. This fieldwork was conducted in 2006 and 2009 respectively. Multiple sources of data were collected including 21 open-ended interviews of owners and key managers in three case study companies. Results: The study offers an explanation on how entrepreneurship takes different forms and features in different organisational contexts. Empirical evidence supports four hypotheses: (1) The type of ownership is a key contingent factor that moderates particular entrepreneurial outcomes. (2) Leadership and knowledge accumulation capability are critical factors in learning process, significantly affecting the strategic choices in either high value or low value added products strategy. (3) The broadening of product portfolios and increased production capacity will improve survival chances and increase the likelihood of firm growth. (4) Management capability and consistency have greater impact on the outcome of entrepreneurship process than the resource and strategy factors. Implications: The findings have significant implications for a conceptual understanding of Chinese entrepreneurship dynamics. It addresses important considerations on government policy making and promotion strategies for entrepreneurship development in different forms of business venture. Value: The textile sector has pioneered the government reforms in restructuring and creating entrepreneurial enterprises. It offers a perfect case for assessing the entrepreneurship processes in a rapidly changing market environment. It emphasizes the important ownership effect on entrepreneurial outcomes. Drawing upon Wickham’s contingency model of entrepreneurship, it provides an improved understanding of this concept under particular circumstance and different contexts

Entrepreneurial strategies for sustainable development

Indice: Entrepreneurship and economic growth. On the nature of entrepreneurship. Strategic entrepreneurship. Sustainable development and entrepreneurship

Prior Experience and Export Performance: The Missing Link of Global Vision

Despite the scholarly interest in the prior experience of entrepreneurs expressed by the field of International Entrepreneurship, empirical investigation linking prior experience with international performance leads to inconclusive and conflicting results. Based on the concept of human capital and resource-based theory, this study provides a supplementary explanation by integrating global vision —the cognitive capital of the entrepreneur related to an international orientation— into this relationship. The study hypothesises that there is no direct relationship between entrepreneurs’ prior experience and export performance; rather, this relationship is mediated by an entrepreneur’s global vision. The hypotheses were tested using structural equation modelling, drawing on a sample of 332 early internationalising SMEs in Bangladesh. To overcome the cognitive inertia resulting from prior experiences, entrepreneurs must focus on their cognitive capabilities, in particular the ability to see the world through a global lens. In order to improve export performance, policymakers must also provide additional support to strengthen entrepreneurs’ global vision

The Importance of Business Plan Proficiency to Business School Graduates

Small businesses are one of the largest groups of employers in the United States. Success of these businesses is, therefore, very important to the economy at large. Entrepreneurs who write business plans, in general, receive more funding from third parties such as banks and venture capital firms and are more likely to be successful. Entrepreneurs who receive a business education and have the support of a mentor are also more likely to be successful in the long term. Incorporating business planning, and activities such as business plan competitions and building incubators on campus, enhance classroom learning