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Opportunity or dead end? Rethinking the study of entrepreneurial action without a concept of opportunity

This article has two objectives: to critique the dominant opportunity discovery and creation literatures and to propose a new, critical realist–inspired analytical framework to theorise the causes, processes and consequences of entrepreneurial action – one that needs no concept of opportunity. We offer three reasons to support our critique of opportunity studies. First, there are important absences, contradictions and inconsistencies in definitions of opportunity in theoretical and empirical work that mean the term cannot signal a clear direction for theorising or empirical research. Our central criticism is that the concept of opportunity cannot refer simultaneously, without contradiction, to a social context offering profit-making prospects, to particular practices and to agents’ subjective beliefs or imagined futures. Second, a new definition of opportunity would perpetuate the conceptual chaos. Third, useful concepts to capture important entrepreneurial processes are readily available, for instance, combining resources, creating new ventures and achieving product sales, which render a concept of opportunity superfluous. Instead, we conceptualise entrepreneurial action as investments in resources intended to create new goods and services for market exchange emergent from the interaction between agential, socialstructural and cultural causal powers

Using Ownership as an Incentive

Agency theory is used to develop hypotheses regarding the effects of ownership proliferation on firm performance. The authors examine the effects of chief executive officer (CEO) ownership, executive team ownership, and all employee ownership in addition to the moderating effect of risk on firm survival and stock price. Firms with low CEO ownership outperform those with high levels of CEO ownership across all levels of risk, but the effect is most pronounced for low-risk firms. Executive team ownership is negatively related to firm performance, whereas ownership for all employees is positively associated with firm performance, particularly for higher risk firms.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/67316/2/10.1177_1059601199244003.pd

Contracting for the unknown and the logic of innovation

This paper discusses the components of contracts adequatefor governing innovation, and their microfoundations in the logic of innovative decision processes. Drawing on models of discovery and design processes, distinctive logical features of innovative decision making are specified and connected to features of contracts that can sustain innovation processes and do not fail under radical uncertainty. It is argued that if new knowledge is to be generated under uncertainty and risk, 'relational contracts', as usually intended, are not enough and a more robust type of contracting is needed and it is actually often used: formal constitutional contracts that associate resources, leave their uses rationally unspecified, but exhaustively specify the assignment of residual decision rights and other property rights, and the decision rules to be followed in governance. The argument is supported by an analysis of a large international database on the governance of multi-party projects in discovery-intensive and design-intensive industries

Creating Entrepreneurial Opportunities as a Means to Maintain Entrepreneurial Talent in Corporations

This paper considers how to retain the right talent to support corporate entrepreneurial interests such as internal corporate ventures by taking a new look at why individuals leave corporations and become entrepreneurs. We sought to first examine why entrepreneurs leave. The job satisfaction model tests the popular belief that individuals quit due to dissatisfaction. This is compared to the person-environment (P-E) fit model that theorizes individuals are pushed away and pulled into environments that present a better fit. In all, 715 nascent entrepreneurs were compared with 399 employees by regression and graphic analyses. Contrary to conventional wisdom, we found that for these entrepreneurs, dissatisfaction does not precede the entrepreneurial exodus from established companies. Rather, the perceptions of their new venture’s competitive certainty and financial certainty pull them into new business ventures. Implications and suggestions for the managers are discussed

The dynamics of entry, exit and profitability: an error correction approach for the retail industry

We develop a two equation error correction model to investigate determinants of and dynamic interaction between changes in profits and number of firms in retailing. An explicit distinction is made between the effects of actual competition among incumbants, new firms competition and potential competition from firms outside the market. Effects of cost, demand and general income changes on profitability are investigated to gain insight in the role of retailing in the cost, demand and wage inflationary processes. The relative importance of profitability, growth and unemployment as determinants of net entry are studied. The model is tested using a panel data set of 36 Dutch shoptypes covering the 1977–1988 period

Big data: Finders keepers, losers weepers?

This article argues that big data’s entrepreneurial potential is based not only on new technological developments that allow for the extraction of non-trivial, new insights out of existing data, but also on an ethical judgment that often remains implicit: namely the ethical judgment that those companies that generate these new insights can legitimately appropriate (the fruits of) these insights. As a result, the business model of big data companies is essentially founded on a libertarian-inspired ‘finders, keepers’ ethic. The article argues, next, that this presupposed ‘finder, keepers’ ethic is far from unproblematic and relies itself on multiple unconvincing assumptions. This leads to the conclusion that the conduct of companies working with big data might lack ethical justification