The International Journal of Entrepreneurship and Innovation, Ahead of Print.
Institutional change has been identified as inherent to social innovation proposals, especially in developing contexts. However, it is still unclear how these changes occur in the social innovation process. Therefore, our study seeks to answer the following research question: How do attempts at institutional change occur in the social innovation process in an emerging context? We use the qualitative approach to investigate two Brazilian social innovation cases striving to change the institutional environment in which they operate. Our data reveals that institutional change may be necessary before the scalability stage of the social innovation process. We suggest that this finding is related to the developing context, which requires social entrepreneurs and their teams to break institutional barriers to expand their social innovation initiatives. We have also identified some mechanisms used for the attempts to institutional changes: cwompetition with government organisations, influence in formulating laws, and support for the market growth and the entry of new participants.
Category Archives: The International Journal of Entrepreneurship and Innovation
Earnings generation and strategic alliance-building and as a means of achieving scalability of social enterprises in South Africa
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
While scaling of social impact is a key element in social entrepreneurship (SE), many social enterprises fail to scale-up their impact meaningfully. This is an opportunity to investigate earnings generation (EG) and strategic alliance-building (SAB) as potential predictors of scalability of social enterprises. The study context is South Africa where SE has much relevance due to the many social ills, which plague the country. Initially, the study instrument is tested for validity and reliability, whereupon hypotheses are tested using multiple regression analyses. Results show that EG is a significant and positive predictor of social enterprise scaling. This finding is important considering that many social enterprises in South Africa are challenged by financial resource constraints. This study, conducted in an African emerging market context, allows social entrepreneurs to more deeply understand the relevance of EG and SAB in their scaling efforts. Indeed, developing a strong body of evidence that validates the effectiveness of policy in supporting social enterprise scaling is pivotal for both theory and practice.
While scaling of social impact is a key element in social entrepreneurship (SE), many social enterprises fail to scale-up their impact meaningfully. This is an opportunity to investigate earnings generation (EG) and strategic alliance-building (SAB) as potential predictors of scalability of social enterprises. The study context is South Africa where SE has much relevance due to the many social ills, which plague the country. Initially, the study instrument is tested for validity and reliability, whereupon hypotheses are tested using multiple regression analyses. Results show that EG is a significant and positive predictor of social enterprise scaling. This finding is important considering that many social enterprises in South Africa are challenged by financial resource constraints. This study, conducted in an African emerging market context, allows social entrepreneurs to more deeply understand the relevance of EG and SAB in their scaling efforts. Indeed, developing a strong body of evidence that validates the effectiveness of policy in supporting social enterprise scaling is pivotal for both theory and practice.
Are migrant-owned firms different from native-owned ones?
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
In most of the literature, immigrant-owned firms are perceived as being “different” from those owned by natives. Some recent evidence suggests that this distinction is not always clear-cut. This paper aims to analyze the similarities and differences between immigrant-owned SMEs and native-owned firms by comparing the economic, financial, and organizational variables at the firm level. The research is based on a large database of partnerships and private limited companies (micro and very small enterprises are excluded). A matched-pair analysis was performed to assess the presence of significant differences between entrepreneurial ventures owned by immigrants and those owned by natives. This approach makes it possible to obtain a suitable sample for a “controlled” comparison between the firms in our sample. Unlike the previous results obtained for firm size, industry, and geography, we found that proxy values for efficiency, capital intensity, and profitability for immigrant-owned SMEs are not significantly different (or lower) from those owned by natives. Migrant ventures have demonstrated the ability to leverage bridging skills to enter foreign markets. In addition, more advanced migrant companies have narrowed the gap with native firms and show similar characteristics in terms of financial structure and performance.
In most of the literature, immigrant-owned firms are perceived as being “different” from those owned by natives. Some recent evidence suggests that this distinction is not always clear-cut. This paper aims to analyze the similarities and differences between immigrant-owned SMEs and native-owned firms by comparing the economic, financial, and organizational variables at the firm level. The research is based on a large database of partnerships and private limited companies (micro and very small enterprises are excluded). A matched-pair analysis was performed to assess the presence of significant differences between entrepreneurial ventures owned by immigrants and those owned by natives. This approach makes it possible to obtain a suitable sample for a “controlled” comparison between the firms in our sample. Unlike the previous results obtained for firm size, industry, and geography, we found that proxy values for efficiency, capital intensity, and profitability for immigrant-owned SMEs are not significantly different (or lower) from those owned by natives. Migrant ventures have demonstrated the ability to leverage bridging skills to enter foreign markets. In addition, more advanced migrant companies have narrowed the gap with native firms and show similar characteristics in terms of financial structure and performance.
The interaction effect of leadership support on the EO – innovative performance relationship
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
The purpose of the study is to investigate the impact of transformational leadership on the entrepreneurship orientation (EO) – innovative performance relationship and to test innovative performance as a mediator variable between EO and firm performance. Structural equation modelling is employed to test a theoretical model utilizing a data set developed from a survey instrument administered to the most senior level manager of 127 enterprises within the Kingdom of Saudi Arabia (KSA). Results show that innovative performance partially mediates the relationship between EO and firm performance. Results further suggest visionary leaders who absorb the uncertainty inherent in organization endeavours and who encourage organization members to independently use their mind to challenge the status quo spur organization members towards entrepreneurship. The study found that a reward system based on the results of innovative projects offers a counter-intuitive explanation that it may discourage the brightest talent from participating on endeavours with uncertain outcomes. The proposed study model is a valuable addition to appreciating the role transformational leadership plays within enterprises and therefore contributes to the expanding body of research investigating the ability of organizations to utilize a systematic effort of recognizing and exploiting new business opportunities for a sustainable competitive advantage.
The purpose of the study is to investigate the impact of transformational leadership on the entrepreneurship orientation (EO) – innovative performance relationship and to test innovative performance as a mediator variable between EO and firm performance. Structural equation modelling is employed to test a theoretical model utilizing a data set developed from a survey instrument administered to the most senior level manager of 127 enterprises within the Kingdom of Saudi Arabia (KSA). Results show that innovative performance partially mediates the relationship between EO and firm performance. Results further suggest visionary leaders who absorb the uncertainty inherent in organization endeavours and who encourage organization members to independently use their mind to challenge the status quo spur organization members towards entrepreneurship. The study found that a reward system based on the results of innovative projects offers a counter-intuitive explanation that it may discourage the brightest talent from participating on endeavours with uncertain outcomes. The proposed study model is a valuable addition to appreciating the role transformational leadership plays within enterprises and therefore contributes to the expanding body of research investigating the ability of organizations to utilize a systematic effort of recognizing and exploiting new business opportunities for a sustainable competitive advantage.
Institutional and organizational capabilities as drivers of internationalisation: Evidence from emerging economy SMEs
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
Internationalisation, the notion of cross border business, has become one of the key strategies for growth for small and medium enterprises (SMEs) in developing countries in recent years. Although many SMEs have used internationalisation strategies, there remains a gap of understanding the relative importance of factors influencing SMEs internationalisation particularly from developing countries perspectives. Drawing on the Resource Based View of the firm (RBV) theory, this research develops and validates the dimensions and sub-dimensions of the drivers of internationalisation. The study further identifies the relative importance of these dimensions from a developing country context. The study used a questionnaire survey to collect primary data from 212 Bangladeshi SMEs based on area wise cluster sampling. This study used partial least square based structural model (PLS-SEM) to assess the key drivers for foreign market entry by developing country SMEs. The findings confirm that the drivers of internationalisation represent a hierarchical construct consisting of three primary and eight sub-dimensions. The study suggests that SME internationalisation in a developing country is contingent upon two categories of capabilities: critical organisational capabilities or resources (linked to internal processes largely associated with human resources) and critical institutional capabilities (associated with state level provision and the cultural fabric).
Internationalisation, the notion of cross border business, has become one of the key strategies for growth for small and medium enterprises (SMEs) in developing countries in recent years. Although many SMEs have used internationalisation strategies, there remains a gap of understanding the relative importance of factors influencing SMEs internationalisation particularly from developing countries perspectives. Drawing on the Resource Based View of the firm (RBV) theory, this research develops and validates the dimensions and sub-dimensions of the drivers of internationalisation. The study further identifies the relative importance of these dimensions from a developing country context. The study used a questionnaire survey to collect primary data from 212 Bangladeshi SMEs based on area wise cluster sampling. This study used partial least square based structural model (PLS-SEM) to assess the key drivers for foreign market entry by developing country SMEs. The findings confirm that the drivers of internationalisation represent a hierarchical construct consisting of three primary and eight sub-dimensions. The study suggests that SME internationalisation in a developing country is contingent upon two categories of capabilities: critical organisational capabilities or resources (linked to internal processes largely associated with human resources) and critical institutional capabilities (associated with state level provision and the cultural fabric).
The kids are all right: Adolescent deviance, innovativeness, proactiveness and risk-taking
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
Entrepreneurial behaviour involves challenging the status quo. Similarly, adolescent deviants break rules and act against established norms. While adolescent deviance is seen as a strain on society, it can also be related to characteristics of entrepreneurial intentions. We draw upon prior literature to demonstrate that deviance during adolescence can promote the development of and reliance upon relational capital, and that these characteristics are associated with innovativeness, proactiveness, and risk-taking as adults. We test hypotheses using a sample of 375 participants and highlight the role of relational capital in the lives of adolescent deviants and how it contributes to entrepreneurial behaviour.
Entrepreneurial behaviour involves challenging the status quo. Similarly, adolescent deviants break rules and act against established norms. While adolescent deviance is seen as a strain on society, it can also be related to characteristics of entrepreneurial intentions. We draw upon prior literature to demonstrate that deviance during adolescence can promote the development of and reliance upon relational capital, and that these characteristics are associated with innovativeness, proactiveness, and risk-taking as adults. We test hypotheses using a sample of 375 participants and highlight the role of relational capital in the lives of adolescent deviants and how it contributes to entrepreneurial behaviour.
The role of human capital in Italian equity crowdfunding campaigns
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
Crowdfunding has become an established means for new ventures in search for funding and it has received increased attention from scholars and policy makers. One of the most relevant aspects of crowdfunding is to understand the factors associated with the success of a campaign. This paper addresses the issue with a novel dataset of 89 Italian campaigns. Three indicators of campaign success (funds received, funds as a share of target, and number of investors) are estimated as a function of different dimensions of human capital (team size, education, and work experience). We find that campaign success is correlated to team size, the share of members with very high education (i.e. PhD), and the share of members with business education. We also find a non-linear relation with team size, and a significant relationship with the diversification of the team's education. Our study contributes to a recent body of empirical studies on the determinants of the success of an equity crowdfunding campaign by confirming previous findings with a novel dataset and by providing new evidence on the relevance of signals of the founding team quality (e.g. diversity of education) and increasing return of funding to team size.
Crowdfunding has become an established means for new ventures in search for funding and it has received increased attention from scholars and policy makers. One of the most relevant aspects of crowdfunding is to understand the factors associated with the success of a campaign. This paper addresses the issue with a novel dataset of 89 Italian campaigns. Three indicators of campaign success (funds received, funds as a share of target, and number of investors) are estimated as a function of different dimensions of human capital (team size, education, and work experience). We find that campaign success is correlated to team size, the share of members with very high education (i.e. PhD), and the share of members with business education. We also find a non-linear relation with team size, and a significant relationship with the diversification of the team's education. Our study contributes to a recent body of empirical studies on the determinants of the success of an equity crowdfunding campaign by confirming previous findings with a novel dataset and by providing new evidence on the relevance of signals of the founding team quality (e.g. diversity of education) and increasing return of funding to team size.
Sustainable entrepreneurship: Factors influencing opportunity recognition and exploitation
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
Sustainable entrepreneurship integrates economic, environmental, and social into a firm's goals, activities, and planning to create a long-term value for the firm, its stakeholders, and broader society. The firm's strategies are formulated and executed to meet the firm's needs and its stakeholders while protecting, sustaining, and enhancing the natural resources that will be needed in the future. The COVID-19 pandemic was a wake-up call regarding external uncertainty that impacted all small and medium enterprises (SMEs). Leveraging this context, this study aims to assess the external and internal factors that influence sustainable opportunity recognition through interviews with twelve sustainable entrepreneurs in the USA and Canada. Based on the results, future research directions and recommendations have been made.
Sustainable entrepreneurship integrates economic, environmental, and social into a firm's goals, activities, and planning to create a long-term value for the firm, its stakeholders, and broader society. The firm's strategies are formulated and executed to meet the firm's needs and its stakeholders while protecting, sustaining, and enhancing the natural resources that will be needed in the future. The COVID-19 pandemic was a wake-up call regarding external uncertainty that impacted all small and medium enterprises (SMEs). Leveraging this context, this study aims to assess the external and internal factors that influence sustainable opportunity recognition through interviews with twelve sustainable entrepreneurs in the USA and Canada. Based on the results, future research directions and recommendations have been made.
In the wake of the ironworks – entrepreneurship and the spatial connections to empowerment and emancipation
The International Journal of Entrepreneurship and Innovation, Ahead of Print.
In this article, we explore connections between entrepreneurship, gender, empowerment and emancipation. Through the lens of entrepreneurship, we investigate the spatial aspects of these interlinked processes and illustrate emancipation through oppressive gender structures. This spatial lens allows us to see how emancipation changes in practice over time, with empowerment being one of these practices. Through ethnographic longitudinal fieldwork that studies an ironworks turned into a tourist garden, we highlight the collective reproduction of established oppressive structures. Our findings prioritise a spatial understanding of how entrepreneurship connects to empowerment and emancipation.
In this article, we explore connections between entrepreneurship, gender, empowerment and emancipation. Through the lens of entrepreneurship, we investigate the spatial aspects of these interlinked processes and illustrate emancipation through oppressive gender structures. This spatial lens allows us to see how emancipation changes in practice over time, with empowerment being one of these practices. Through ethnographic longitudinal fieldwork that studies an ironworks turned into a tourist garden, we highlight the collective reproduction of established oppressive structures. Our findings prioritise a spatial understanding of how entrepreneurship connects to empowerment and emancipation.
Using equity crowdfunding to build a loyal brand community: The case of Brewdog
The International Journal of Entrepreneurship and Innovation, Volume 24, Issue 3, Page 202-212, August 2023.
This case study provides a critical understanding of the connection between start-up investment and the development of a loyal brand community. Learners develop an appreciation of how engagement in crowdfunding campaigns can lead to the creation of engaged partners. This is explored through applying the Business Model Canvas to the case of BrewDog, a company that has expanded beyond the niche market of craft brewing to become an international brand. The use of crowdfunding has not only enabled Brewdog to raise the capital to finance expansion but also to develop a special relationship with some of their customers, who through investment and engagement can become partners in the product development process.
This case study provides a critical understanding of the connection between start-up investment and the development of a loyal brand community. Learners develop an appreciation of how engagement in crowdfunding campaigns can lead to the creation of engaged partners. This is explored through applying the Business Model Canvas to the case of BrewDog, a company that has expanded beyond the niche market of craft brewing to become an international brand. The use of crowdfunding has not only enabled Brewdog to raise the capital to finance expansion but also to develop a special relationship with some of their customers, who through investment and engagement can become partners in the product development process.