Kurt Sandholtz and Walter W. Powell
This chapter examines entrepreneurs who carry ideas, technologies, values, and assumptions between previously unrelated spheres of economic or cultural activity and, in the process, change the existing order of things. The chapter labels such individuals amphibious entrepreneurs and explores their characteristics via four case studies. Their stories suggest a distinct species within the genus of entrepreneur: more pragmatic than heroic, and as likely to invent by not knowing any better as by calculative creation. The chapter discusses their role in creating interstitial spaces, contrasts them with other boundary-spanning actors, and identifies directions for future research at the intersection of social history and entrepreneurship.
Jiang Bian and Riitta Katila
Asymmetric partnerships—partnerships between small entrepreneurial and large established firms—are categorically distinct from large–large firm partnerships but have received considerably less scholarly attention. This chapter provides an overview of the literature on asymmetric partnerships by reviewing studies in the fields of organizational theory, strategy, and entrepreneurship. It identifies three literature streams: antecedents of asymmetric partnership formation, process dynamics and management of asymmetric partnerships, and the performance consequences on firms involved in asymmetric partnerships. The chapter reviews each stream’s major studies, summarizes and synthesizes the empirical findings and theoretical insights, and identifies future directions. To advance the literature, the chapter discusses research opportunities, highlighting fertile avenues such as field-based research to examine the evolving nature of asymmetric partnerships and the organizational black box of partnership management, and quantitative research to strengthen causal identification.
This article reviews literature on the study of the cognition of entrepreneurs, and how this affects their attitudes to risk. The review begins with the heuristics and biases approach. Various decision-making biases related to over-optimism are then considered. Following this perceived self-efficacy, intrinsic motivation and intentions-based models are discussed. Some theories dealing specifically with attitudes to risk are then covered. These include prospect theory, Kahneman and Lovalo's model of risk-taking, and Das and Teng's theory of risk horizons and future orientations. Finally, the option value and information cost approach to the analysis of entrepreneurs' decision-making is discussed. Some relevant references to culture research are also given in the conclusion.
Peter G. Klein, Mark D. Packard, and Karen Schnatterly
This chapter looks inside the firm at how organizational design affects collaboration in pursuit of corporate entrepreneurship or “intrapreneurship.” It shows how the intrafirm “marketplace” of ideas, employees, and resources can be strategically configured to encourage or inhibit collaborative innovation. The chapter focuses on the key structural dimensions of autonomy, sponsorship, and incentives. Complementarities between these dimensions create spillover effects that produce unique innovation outcomes by mitigating barriers to collaboration such as knowledge problems, resource constraints, and employee motivation. Illustrating configurations of these dimensions with company examples, the chapter shows how organizational design affects intrapreneurship and offers suggestions on how firms might strategically align their organizational structure with their intrapreneurial strategy.
Raphael Amit, Xu Han, and Christoph Zott
This chapter addresses the role of collaboration in the design and operation of innovative business models in the digital era. It surveys and builds on a broad range of related literatures on collaboration and innovation to examine how collaboration affects business model innovation (BMI). The chapter suggests that collaboration within and across firms’ boundaries shapes both the design and operation stages of BMI. It contributes to the extant literature by taking the first step toward explicitly examining the link between collaboration and BMI and by incorporating the ramifications of digitization for both collaboration and BMI.
Founding and operating a firm is a collaborative process, but still little is known about the nature of collaboration between entrepreneurs and other members of the new-venture team, particularly key employees. For example, traditional entrepreneurship literature believed that founders always run their start-ups personally, at least in the early years of operation. However, recent empirical studies suggest that a significant share of founders hire CEOs for their start-ups at the time of founding or soon thereafter. This chapter explores what motivates founders to delegate managerial control to a hired agent, how founders choose their managers, and how they govern relationships with their CEOs.
Timothy Kuhn and Dana Marshall
This chapter pursues a novel conception of communication to highlight the collaborative processes associated with entrepreneurship. In contrast to a representational stance in which information dissemination is emphasized, this chapter presents a constitutive/dialogic approach to communication. This latter orientation portrays communication as an ongoing process that creates, recreates, and transforms meanings—and, in so doing, constitutes individuals, organizations, and the social worlds they inhabit. Though the representational stance has dominated entrepreneurship scholarship, this chapter presents three foci of research on entrepreneurship and collaboration to illustrate the constitution of contemporary entrepreneurs’ identities, entrepreneurial ecosystems, and entrepreneurial ventures. Based on the review, the chapter suggests that future entrepreneurship and collaboration research both engages with communication as constitution of organization (CCO) theorizing and explores the increasingly globalized character of entrepreneurial organizing.
Serghei Musaji and Julio De Castro
Despite the continuous interest in studying entrepreneurial teams, the relationship between team composition and, particularly, team diversity and performance remains fertile ground for active debate. Taking roots in the knowledge-based view and organizational learning literatures, this chapter argues that performance in entrepreneurial teams is contingent on (a) the overlap between team members’ knowledge/competences and the content of the performed tasks, (b) the duplication of the team members’ knowledge in the areas with that content, (c) the nature of tasks (exploration or exploitation), (d) the team’s flexibility to adapt to changes in the content and nature of those tasks, and (e) the rate of environmental change. Because an important source of ambiguity in the understanding of how team diversity and performance are linked ties to issues of how team diversity is conceptualized and operationalized, the chapter also proposes a new way of looking at diversity in future research.
Carole Howorth, Mary Rose, and Eleanor Hamilton
This article begins with an examination of definitions of family firms. The debate about what constitutes a family firm is every bit as complex as the definition of an entrepreneur. This article explores the range of definitions but shows that any definition needs to be interpreted in its economic, social, institutional, and cultural context. An explanation for the multiplicity of definitions is provided in in this article, which explores the diversity in scale, scope, organization, and longevity of family firms, and shows differences through time in different societies and between families. The article also demonstrates the strong path dependency of family firm development, with change (or lack of it) underpinned by the foundations of the past. The article further explores research which compares the performance of family firms with non-family firms and this highlights the potential policy implications of family business research.
Many excellent surveys of the literature on business growth and survival have appeared in the last decade. This article focuses on small firm literature on survival and growth, drawing on largely non-size-specific surveys only when the intersection between their subject matter and that of small firm growth and survival is significant. The focus is moreover primarily on testable or tested theories, implying a neglect of theory, however intrinsically interesting, which offers no (immediately) testable or tested implications. It is important to note at the outset that the industrial economics literature in general has a rather disparate definition of the term ‘small firm’ from the small business literature as located in the small business journals.
Marina Della-Giusta and Zella King
This article first looks at the rationale for adopting an ‘enterprise culture project’, with specific reference to the case of Britain from the 1980s to the present. It then considers how efforts to promote an enterprise culture might be evaluated, and examines some of the evidence about the impact of enterprise policies in Britain on entrepreneurial attitudes and behaviour. It then reviews some of the academic literature on ‘enterprise culture’ policy and ideology, with a wider discussion of enterprise projects and their implications.
Douglas Michael Wright and Andrew Burrows
This article takes a broader perspective that encompasses both traditional agency-based explanations of buy-outs as well as recognizing the buy-out phenomenon as a vehicle for entrepreneurial innovation. Although early studies suggested that buy-outs involved both agency cost reduction and entrepreneurial aspects, they did not formally conceptualize these two approaches. The agency theory approach conceptualizes buy-outs as a tool that facilitates cost efficiencies. The entrepreneurial perspective sees buy-outs as a means for implementing new innovations and strategic change that enable fuller exploitation of firm resources that may have been blocked by prior ownership arrangements, such as being part of a large diversified firm or a privately-owned firm with leadership succession problems. The article first elaborates the definitions and sources of buy-outs. Secondly, it reviews theoretical perspectives relating to buy-outs, notably the agency approach and an entrepreneurial perspective which draws on the theory of entrepreneurial cognition. The third main section reviews a model to explain different types of buy-out drawing on these two perspectives. The fourth section reviews studies of the effects of buy-outs, identifying evidence consistent with agency and entrepreneurial views of buy-outs. The final section provides discussion and conclusions.
Markus Reihlen and Andreas Werr
Research on entrepreneurship in professional services is rather limited. The authors argue that one reason why the two fields of professional services and entrepreneurship have operated in isolation rather than in mutual interaction is an inherent contradiction between the very ideas of entrepreneurship and professionalism. The perspective on entrepreneurship for this chapter is rather broad, focusing on new venture management and renewal in Professional Service Firms as well as embracing aspects such as learning, innovation, and institutional change. The chapter reviews previous work on entrepreneurship in professional services from three levels of analysis—the entrepreneurial team, the entrepreneurial firm, and finally the organizational field within which the creation and exploitation of entrepreneurial opportunities take place.
This article reviews the existing theoretical and empirical literature on ethnic entrepreneurship. It primarily focuses on empirical research conducted in Britain and the United States. It examines the definition of ethnic entrepreneurship and evaluates the forces affecting entry into ethnic entrepreneurship, entrepreneurial survival and success, as well as the factors underlying the heterogeneity in entrepreneurial behaviour and performance among ethnic minority groups.
Suho Han, Sae Young Lee, and Melissa E. Graebner
Despite the prevalence of spousal, sibling, and parent–child ties within venture founding teams, little research has examined how family relationships among founders influence early entrepreneurial processes. This chapter explores how family relationships within founding teams influence internal and external collaboration. Within the firm, the chapter focuses on collaboration issues related to recruitment, changes in the management team, and strategic decision making. Beyond the firm’s boundaries, the chapter focuses on collaboration with external investors, strategic partners, potential acquirers, and post–initial public offering stakeholders. It draws upon the literatures on family businesses and high-growth new ventures to explore how family ties may influence collaboration processes over three broad stages of venture development: seed, commercialization, and growth and exit. The chapter concludes by highlighting unanswered research questions and by identifying relevant methodologies, settings, and data sources with which to address these gaps.
Maryann Feldman and Paige Clayton
This chapter examines the relationship between entrepreneurs and the communities in which they are embedded. It argues that the actions of entrepreneurs and their firms are contextually situated in specific geographies that make their actions endogenous in the development of place and define a place-specific institutional logic. This argument is at odds with the view that industry clustering is due to the role of incumbent firms. This chapter reconciles these views by adopting a temporal view, allowing both incumbents and geography to co-occur and influence clustering. It then considers the current evidence of entrepreneurs’ effects on regional resources and capacity, and concludes with suggestions for future research.
Vikas Aggarwal and Andy Wu
This chapter presents an overview of the literature on collaborative relationships between start-ups and incumbent firms, focusing on the implications of these relationships for start-up innovation and performance. Value creation in such relationships occurs when assets are exchanged by the parties involved. Collaboration allows for passive knowledge flows and active knowledge creation. In addition, collaboration provides start-ups with access to the complementary assets of the incumbent. At the same time, value creation presents opportunities for value capture by either party, where value capture by the start-up is a consequence of the broader knowledge appropriation regime and the start-up’s own social capital. The form in which the start-up appropriates value has implications for the assets that enable value creation. The framework for value creation and capture in bilateral start-up–incumbent collaborations extends to start-up–incumbent collaborations in a platform and ecosystem context, where there are fruitful future research opportunities.
Jeffrey J. Reuer, Sharon F. Matusik, and Jessica Jones
The role of collaboration in entrepreneurship spans across different contexts, varied theoretical perspectives, and multiple units of analysis. This chapter introduces The Oxford Handbook of Entrepreneurship and Collaboration with an overview of the important role that collaboration plays in value creation, resource acquisition, and the development of entrepreneurial ventures. It is organized in two ways. First, the chapter summarizes each chapter to direct readers to the material of greatest relevance and interest to them. Second, it identifies important research questions to further push connections between the fields of entrepreneurship and interorganizational collaboration.
This chapter illustrates a multilevel framework to understand the microfoundations of collaboration in entrepreneurship. Early scholars saw the identification and exploitation of entrepreneurial opportunities as an individual endeavor. More recently, researchers started to examine entrepreneurial action as resulting from the collaboration among individuals within a collective such as a nation, an industry, an entrepreneurial ecosystem, a family, a new venture, or an existing company. In this movement toward the identification of higher levels of analysis, the power of macro-level factors tended to prevail in explaining entrepreneurial phenomena. As a result, important details of how individual entrepreneurs and their interactions with other agents shape the emergence of entrepreneurial phenomena are lost. To redress this imbalance, three multilevel mechanisms are introduced to explain the microfoundations of the role collaboration plays in the development of entrepreneurial opportunities. The role of collaboration in each of these mechanisms is illustrated by providing a review of existing studies and detailed directions for future research.
Saras Sarasvathy and Nicholas Dew
At the heart of entrepreneurial collaboration is a tension: Entrepreneurs need people to grow their ventures, but in bringing people on board, they fear loss of control of the ventures they are building. Add to that the behavioral assumption of opportunism, and the tension rises to the level of a paradox. The paradox is particularly salient in effectual entrepreneurship, which emphasizes stakeholder self-selection as the driver of cocreation. This chapter presents a model of effectual collaboration that builds on a different behavioral assumption, namely docility, defined as the human ability to be open to persuasion. Docility can involve taking and giving advice, changing one’s goals and even adopting those of others, and being able to take more than one’s own perspective into account. Being open to persuasion enables entrepreneurs to cocreate valuable new ventures. The chapter illustrates the model of effectual collaboration through a blueprint for an effectual incubator.