Entrepreneurial Firms

Abstract

The field of entrepreneurship is fundamentally concerned with opportunity-seeking behavior. Entrepreneurship is a process involving the identification of business opportunities, evaluation of the payoff from such opportunities, and investment of resources in the exploration and exploitation of opportunities that have the potential to create value. This process is most often attributed to the activities of individuals or small teams forming new business ventures, with established firms more often associated with the advantage-seeking approach emphasized in strategic management. However, the entrepreneurial process may occur within new, small, or large firms. The study of entrepreneurial firms thus includes three domains. First, independent entrepreneurship, considering the formation and early growth of new business ventures. Second, corporate venturing, where established firms internally develop new business ventures and/or provide resources and support to independent entrepreneurs. Third, strategic entrepreneurship, concerning the integration of entrepreneurial opportunity-seeking and strategic advantage-seeking approaches in the formulation and implementation of business strategy. A fourth domain also considers the context in which entrepreneurial firms operate, examining the environmental conditions that facilitate or inhibit opportunity-seeking behavior and the impact of entrepreneurial firms on economic development. This article aims to synthesize the current body of literature on entrepreneurial firms with reference to these three organizational contexts and the environmental contingencies of entrepreneurial firms. General resources are presented first, including textbooks most suitable for introductory reading or undergraduate study and the leading journals publishing peer-reviewed original research. Key topics in each research domain are then discussed, with notable empirical studies and review articles provided for further reading. Future research streams are also suggested.