Knowledge based entrepreneurship in the Czech Republic and Hungary: results from 4 case studies

Abstract

This paper describes knowledge based entrepreneurship in the Czech Republic and Hungary, in particular the growth and development process of 4 firms are studied: Dekonta, an environmental services firm, Et netera, an IT services firm, both operating in Czech Republic, along with a data recovery firm, Kurt, and a biopharmaceutical firm, Solvo, both operating in Hungary. The objectives of the case studies are to illustrate experiences of knowledge based entrepreneurship within a transition environment in terms of their different growth and development paths. By carrying out in depth case studies using semi structured interviews with the founders, top management teams, core employees and key stakeholders in industrial associations I am able to explain the growth process of entrepreneurial knowledge based ventures. I assume an ecological view of the firm and examine the role of internal, strategic, network and external factors in this development process. I propose that the relative importance of these factors evolve over time from start up to maturity. Moreover, I anticipate that there will be complementarities between these factors in the spirit of Milgrom and Roberts (1995) and Von Tunzelmann (2003). This approach should help us better understand the complex nature of entrepreneurship. The key contributions of these case studies are the application of an ecological conceptual framework to the development of knowledge based firms in Central and Eastern Europe, and so the viability of this model is tested within the transition environment. I follow the recommendations by Ireland et al. (2005) and introduce a temporal element in order to analyse the shift in importance of the factors impacting on firm development and growth, thus hoping to deal with some of the criticisms on existing entrepreneurial research