Consequences Of Entrepreneurship Research Articles

Using O*Net to Study the Intersection of Entrepreneurship and Employment: A Primer

Research studying employment before, during, and after spells of entrepreneurship is growing in both popularity and importance for understanding the antecedents and consequences of entrepreneurship. However, methodological challenges (e.g., retrospective bias, limitations of archival data sources) hinder further development and refinement. The Occupational Information Network, better known as O*Net, is a database of occupational characteristics that is scarcely used in entrepreneurship research, yet can help scholars overcome these challenges. In this article, I provide a brief primer on O*Net, illustrate how it can be used to advance entrepreneurship research, and offer summaries of best practices.

The mediating role of entrepreneurship in the link between high-speed rail and carbon emissions reduction

Prior studies document that the development of transportation infrastructure, particularly the rapid development of high-speed rail, plays a key role in transforming an economy towards a low-carbon development mode, for example by reducing carbon emissions in China and other countries. However, to date, the mechanisms and paths that link high-speed rail to carbon emission reduction remain ambiguous. The present study seeks to clarify this path by proposing the mediating role of entrepreneurship, arguing that the rapid cycle of people, capital, knowledge, and technology induced by high-speed rail would be integrated by entrepreneurs as new start-ups, leading to industry agglomeration, upgrading, and innovations. These consequences of entrepreneurship would further result in carbon emission reductions. Employing a unique dataset in China, we provide strong evidence for our arguments by setting China’s prefecture-level cities as the unit of analysis. The research conclusions are as follows: First, the launch of high-speed rail services has a positive effect on a city’s carbon emission reduction. Second, entrepreneurship plays a mediating role in the relationship between high-speed rail and carbon emission reduction. Third, the administrative approval system reform would strengthen the effect of high-speed rail on entrepreneurship. This study therefore clarifies the path through which high-speed rail leads to carbon emission reduction, and reconfirms the role of transportation development in achieving the goal of sustainable development towards carbon neutrality.

The long‐term consequences of entrepreneurship: Earnings trajectories of former entrepreneurs

AbstractResearch SummaryPrevious literature has documented a large short‐term earnings gap for entrepreneurs that return to the wage sector. Using matched employer–employee data from the Belgian Labor Market & Social Protection Database, we document how this initial gap is remarkably persistent. Former entrepreneurs earn 27% less than propensity‐scored matched controls 5 years after returning to wage work, which is almost unchanged from the short‐term earnings drop. About 60% of this gap results from reductions in hours worked while the remaining 40% is due to reductions in the wage rate. We offer evidence that the decline in hours worked is a choice of former entrepreneurs and therefore reflects a compensating differential, while the decline in the wage rate is a penalty resulting from statistical discrimination by employers.Managerial SummaryWhile previous work recognizes that entrepreneurs experience reduced earnings when they return to the wage sector, little evidence exists about the long‐term consequences of a spell of entrepreneurship. Using detailed administrative data from a large sample of Belgian entrepreneurs and wage employees, we document an earnings gap of about 27% compared with observationally equivalent employees 5 years after returning to wage work. About 60% of this earnings gap results from a reduction in hours worked, and this part appears to be the result of individual choices. The remaining 40% of the earnings gap is due to a decline in the wage rate, and this part appears to be imposed on returning entrepreneurs by employers.

Entrepreneurship and Intrapreneurship in Social, Sustainable, and Economic Development: Opportunities and Challenges for Future Research

Understanding entrepreneurship and intrapreneurship as engines of outcomes beyond economic terms, this paper introduces the Special Issue “Entrepreneurship and intrapreneurship in social, sustainable, and economic development”. Institutions set the basis to analyze the role societies and organizations play in supporting entrepreneurial and intrapreneurial activity. Thus, we take a broad look at formal and informal institutions as those contextual components that are encompassed in a social progress orientation. Based on this, we discuss and provide examples about how entrepreneurship and intrapreneurship lead social, sustainable, and economic outcomes. Thus, in this paper and this Issue, we argue that it is necessary to consider those (institutional) antecedents and (developmental) consequences of entrepreneurship and its diversity as a simultaneous process. In addition to summarizing the main contributions of those articles contained in this Issue, we highlight some opportunities and challenges to further explore the role of entrepreneurship and intrapreneurship not only in economic development but also in social change and sustainability.

Biomimicry: New insights for entrepreneurship scholarship

While the natural world is argued to serve as a powerful source of knowledge and insight, entrepreneurship scholars have struggled to fully engage with nature. This raises the question of whether the antecedents, mechanisms and consequences of entrepreneurship might look differently if nature’s time-tested patterns were truly considered. This paper reviews the existing linkages between biology and entrepreneurship. The value of biomimicry in inspiring new insights into entrepreneurial phenomena is then discussed, followed by a biomimicry-based mode of theorizing. Examples and future research directions are provided.

Introduction to a Special Issue on Entrepreneurship and Employment: Connecting Labor Market Institutions, Corporate Demography, and Human Resource Management Practices

With the growing attention to entrepreneurship as an engine of job creation and economic development, it is important for social scientists who are broadly interested in labor market and employment topics to focus attention on new firms and the policies and practices that surround them. The authors argue that the next generation of scholarship should pay particular attention to labor market institutions, the ecosystem of existing employers, and the human resource management practices that provide the strategic context for entrepreneurs and shape the career opportunities for workers. Remarkable variation occurs across space and time in the prevalence and performance of entrepreneurs. There are also many open questions as to the antecedents and consequences of entrepreneurship, for entrepreneurs, their communities, and their employees. The availability of new administrative data across many countries will allow for comparative cross-national studies and will provide opportunities to bring qualitative and mixed-method approaches to entrepreneurial labor market studies. This introduction and the articles in this special issue offer a path forward.

Innovative Behaviour, Trust and Perceived Workplace Performance

AbstractBuilding on theories of social exchange, enactment and trust, we provide a theorization of innovative work behaviour at the individual (IB) and team (IBT) levels and explain how desirable performance returns occur for individuals and teams. We further propose that horizontal (between team members) and vertical (between teams and their supervisor) team trust moderate the relationship between IBT and team performance. The results, based on surveys conducted at two points in time in a large insurance company in the Netherlands, show that employees’ IB is positively associated with perceived workplace performance at the individual and team levels and that the effects vary based on the forms of trust at play. Our findings offer important new knowledge about the consequences of entrepreneurship and innovation in the workplace and the significant role that trust plays in enabling such behaviour to promote perceived workplace performance, particularly in the vital financial services sector.

Does Entrepreneurship Pay or Satisfy?

Much research has been conducted studying entry into entrepreneurship and the corresponding rewards and consequences of entrepreneurship on wages. This literature finds mixed results regarding whether workers enter entrepreneurship to maximize their wages or to maximize their non-pecuniary benefits. I suggest that whether workers are able to increase their pecuniary or non-pecuniary benefits in entrepreneurship depends on their motivations for entering entrepreneurship in the first place. I use longitudinal SESTAT data on over 28,000 scientists and engineers to track employment changes and changes in work outcomes over time for the same individuals. I examine changes in pecuniary and non-pecuniary work outcomes when wage workers transition to entrepreneurship, compared to those who do not change employers, as well as to those who change employers but do not transition to self-employment. This allows me to gain a deeper look at the implications of different types of mobility on work outcomes, instead of ju...

POSITIVE ANTECEDENTS AND CONSEQUENCES OF ENTREPRENEURSHIP -THEORETICAL CONSIDERATIONS

Purpose: Being encouraged by positive scholars I make an attempt to use positive way of thinking to further explore the process of entrepreneurship. More specifically, I aim at looking for positive antecedents of entrepreneurship and its positive consequences. The purpose of the paper is to formulate propositions for further empirical research. Methodology/approach: I use literature review as a method to identify those of positive antecedents and consequences of entrepreneurship that were theoretically considered and/or empirically researched before. Findings: The propositions can be summed up in a preliminary conceptual framework. It draws attention to most plausible relationships within positive phenomena and entrepreneurship. Moreover, the exact nature of the type (possible mediations and moderations), direction and strength of relationships is a subject for further theoretical considerations and empirical investigations. Implications/limitations: The paper opens a new area of the research that has not been explored before. Potentially, it will bring new understanding to the processes of entrepreneurship from positive perspective. Originality/value: Some of the relationships presented in the paper have not been researched yet. The main value of the paper is taking the next step in uncovering the positive antecedents and consequences of entrepreneurship.

What turns knowledge into innovative products? The role of entrepreneurship and knowledge spillovers

The knowledge spillover theory of entrepreneurship seeks to explain the fundamentals and consequences of entrepreneurship with respect to economic performance. This paper uses the knowledge spillover theory to explain different innovation outcomes. We hypothesize that a high rate of entrepreneurship facilitates the process of turning knowledge into new-to-the-market innovation but has no effect on the relationship between knowledge and new-to-the-firm innovation. Our results using European country-level and pooled OLS, fixed- and random-effects regressions show that a high rate of entrepreneurship increases the chances that knowledge will become new-to-the-market innovation. The findings highlight the importance of Schumpeterian entrepreneurship in the process of the commercialization of knowledge. We discuss the implications for entrepreneurship and innovation policy.

Urban economics and entrepreneurship

Research on entrepreneurship often examines the local dimensions of new business formation. The local environment influences the choices of entrepreneurs; entrepreneurial success influences the local economy. Yet modern urban economics has paid relatively little attention to entrepreneurs. This essay introduces a special issue of Journal of Urban Economics dedicated to the geography of entrepreneurship. The paper frames the core questions facing researchers interested in assessing the local causes and consequences of entrepreneurship, perturbs a core urban model to incorporate entrepreneurship, and concludes by offering an agenda for future work on the spatial aspects of entrepreneurship.

Revisiting Ethnic Entrepreneurship: Convergencies, Controversies, and Conceptual Advancements

In the past thirty years, many concepts and theories on ethnic entrepreneurship have been developed, challenged, and revised to provide a fuller account of the phenomenon. This article revisits the existing literature to address some of the conceptual and methodological issues and the controversies that have lingered around them and to highlight important advancements that have broken through conventional frameworks of this lasting subject matter. It first reexamines the meaning and analytical distinction of such relevant concepts as the middleman minority, ethnic economy, and enclave economy, arguing that ethnic social structures in which entrepreneurs are embedded must be stressed in the understanding of these concepts. It then draws attention to the convergencies and controversies in research on the causes and consequences of entrepreneurship. Finally, it highlights two interrelated conceptual advancements in the study of ethnic entrepreneurship – transnational entrepreneurship and the synergy of entrepreneurship in community building.

Entrepreneurial firms in the context of China's transition economy: an integrative framework and empirical examination

Investigating corporate entrepreneurship in an emerging economy of China, this research proposes and substantiates an integrative framework that characterizes determinants for corporate entrepreneurship (institutional, organization-specific, and strategic market factors) and consequences of entrepreneurship (sales growth and market share performance). Our empirical results indicate that internationalization, firm size and age, and market orientation all impact on the practice of corporate entrepreneurship, which in turn contributes to superior performance. Empirically, this paper provides initial evidence demonstrating the multifaceted determinants of corporate entrepreneurship in a transition economy. Our findings suggest that the Chinese firms appear to be integrating institutional changes and market-oriented activities to facilitate organizational growth.

The Unintended Consequences of Entrepreneurship

The Unintended Consequences of Entrepreneurship