Dynamic Entrepreneurship Research Articles

Dynamic entrepreneurship and technology-based innovation

This paper seeks to distinguish between dynamic and static entrepreneurship. We define the construct of dynamic entrepreneurship in terms of Schumpeterian innovativeness and then develop a hypothesis suggesting that human capital is conducive to such action. In contrast, a paucity of human capital is more conducive to static entrepreneurship (defined in terms of organizational or ownership status). Based on a rich data set of entrepreneurs receiving research funding through the U.S. Small Business Innovation Research (SBIR) program, our empirical evidence suggests that academic-based human capital is positively correlated with dynamic behavior, whereas as business-based human capital and prior business experience is not.

Dynamic Capabilities and Strategic Entrepreneurship: A Study of Sri Lankan SMEs

Strategic entrepreneurship has been widely acknowledged as the appropriate context representing the way of creating value in business organization. However, yet we do not fully understand the process of strategic entrepreneurship or elements of it that give rise to them and as such strategic entrepreneurship remains in need of further explanation. This study primary believes that any concept or business model is required to address the dynamic changes in the markets. Thus, this study explains the dynamic capability concept and its role in perpetuating entrepreneurial and strategic actions in the SMEs. The dynamic view of resource based theory is adopted from firm level framework used to identify the unique bundle of dynamic capabilities that promote firm’s entrepreneurial and strategic actions. The identified framework was validated from the empirical data gathered through the explorative questionnaire survey of 488 manufacturing SMEs in Sri Lanka. The finding suggests that SMEs are better able to address market challenges when they have strong dynamic abilities that engaged them in strategic entrepreneurship. The study thus encourages SMEs to create and develop dynamic capabilities, not only because it sustains their livelihood over generation, but because it also facilitates the entrepreneurial and strategic actions in creating the firm’s wealth.

The role of the state in the entrepreneurship ecosystem: insights from Germany

The performance of new ventures is strongly impacted by something much larger than the business itself: the surrounding ecosystem. In this network of actors, the role of the state has been underestimated up to this point. This article investigates the nature and composition of the German entrepreneurship ecosystem and suggests a new framework for assessing the role of the state in the entrepreneurial ecosystem. This framework is applied using data from a meta-analysis of existing research as well as qualitative interviews to assess the government influence on the different phases of the science-based innovation process. By analyzing different public initiatives in Germany, this paper provides insights into how governments can influence the attractiveness of an ecosystem, but it also highlights various improvement opportunities. Germany already features a dynamic entrepreneurship ecosystem and has a distinct political agenda to promote entrepreneurship. Improvements have been made in the regulatory environment and in entrepreneurship education, especially tertiary education, and publicly funded programs support the early stages of new ventures. The incentive schemes for scientific staff should be aligned to encourage more tech transfer activities, and more later stage financing is needed, through the involvement of private investments, in order to exploit the full growth potential of new ventures. Germany also needs policies that affect social values and attitudes towards entrepreneurship in order to reduce the stigma of failure and enhance the appreciation of entrepreneurial activity in the society.

Regional drivers of economic growth

Regional development of Serbia, after waves of recession, faced an additional challenge: a trend of increasing regional demographic regression, economic gap, etc. Entrepreneurs and SME sector are particularly hit hard by the economic crisis. But, in addition, in Serbia there are 1.2% rapidly growing enterprises (1,103, of which 160 gazelles) that boast growth potential (before the crisis, there were 3%). These are the drivers of regional economic growth. The basic research results of the regional dynamic entrepreneurship: 1,103 dynamic enterprises (2009-2013) participated in the increase in business revenues of Serbia with 110.5% (these enterprises covered 10.5% of the loss of the remaining segment of economy), generated 1/3 of profit growth in the economy and created 10,000 new jobs in the economy. Regional driving forces of growth and development had, in a certain number of regions, an extremely important role in the change of economic structure, increase in employment, and improvement in competitive performances of local economic structures. Economic recommendations presented in the paper go in two directions: firstly, it is vital to set up additional stimulating mechanisms for dynamic regional entrepreneurs in order to create conditions conducive to a faster growth of dynamic entrepreneurship in Serbia. Secondly, a way out of regional poverty will depend mostly on the building of institutions and affirmation of regional strategic planning.

Dynamic Entrepreneurship in Emerging Countries: Main Findings from a Systemic Perspective

Numerous studies reveal the importance of dynamic new firms in the economic development. Studying the conditions that favor the development and growth of such firms is thus a key issue for developing and emerging countries. The aim of this paper is to propose and apply a systemic approach to the study of the existing conditions for the creation and development of new dynamic firms in emerging countries. The methodology consists of the creation and analysis of the Index of Systemic Conditions for Entrepreneurship (Indice de Condiciones Sistemicas para el Emprendimiento, ICSE Prodem), which allows the identification of the main strengths and weaknesses of these countries. The index is based on the Entrepreneurial Development System Framework (Kantis et al., 2002 and 2004), which considers firm creation as a systemic phenomenon, given the different factors that affect the creation, development, and growth processes of dynamic firms.

Three theoretical approaches to pirate entrepreneurship: towards future studies of pirate entrepreneurship

An increasingly turbulent, hypercompetitive and dynamic business environment is an expected starting point and business environment for pirate entrepreneurs. In the article, three major traditions of business research (theory of creative destruction, OLC/LCC theory and business war gaming framework) are elaborated and linked to the studies of pirate entrepreneurship. These theoretical approaches help to link the issue of pirate entrepreneurship to foresight research. The key conclusion of the research is that probably new forms of dynamic pirate entrepreneurship can provide new solutions to the triple challenge problem of innovation management, i.e., problems related to creative destruction, disruptive innovations, and creative accumulation.

The Fuzzy Front End of Open Innovation: Opportunity Identification and Transformation

While recent research discusses the management and outcomes of various open and collaborative forms of innovation, little is known about how firms identify opportunities for open innovation. This exploratory empirical study sheds some light on this fuzzy front end of open innovation. Iterating between multiple case study analysis and the dynamic capabilities and strategic entrepreneurship literature, new theoretical constructs and relationships are developed that help to explain how firms identify and continuously transform open innovation opportunities. First, this study identifies two key dimensions (external discovery and internal creation) that describe the opportunity identification process for open innovation. Second, based on these dimensions, four distinct modes of open innovation (complementary, entrepreneurial, exploratory and strategic) are derived that capture some of the variance that exists when firms create and discover open innovation opportunities. Third, this study introduces three dynam...

Employment and value-added contribution of Slovenian high-growth companies (gazelles)

High-growth companies, gazelles, are responsible for stimulating economic growth and development through extreme growth rates (employment, income, assets, value-added etc.). Consequently, exploring highgrowth companies may offer valuable insights into promoting dynamic entrepreneurship in contemporary society. In this paper, we are examining high-growth companies and their socio-economic contribution through a company's size, because the size dimension is an important characteristic affecting the level of employment and making important contributions to employment growth. Based on the national ranking of the 500 fastest-growing companies, based on the income statement data (sales growth in the 5-year period), we compare the gazelles with the average of all Slovenian companies. The findings provide evidence of the gazelles' considerable contribution to employment and the creation of an added (new) value. Company growth can also be measured on the basis of other parameters and therefore, in one part of our analysis, we limit the use of the measures to the relative employment growth - the DaBeg index. The results have shown that the growth patterns among the companies are very heterogeneous and that innovative fast-growing companies make a valuable socio-economic contribution. As such, gazelles require effective supportive measures of government policies, aimed at encouraging and promoting growth-oriented entrepreneurship.

Dynamic strategy and sustainable business development: lessons learned from the crisis

Each adaptation in business is an impulse to change and may cause unexpected behaviour inside or outside the company. This article aims to present an innovative thinking bond and investment success in overcoming the crisis, based on the results of the research carried out. From knowledge of current methods of management and business management services in general it can be inferred that the enterprise can develop an open system that is capable of rapidly adapting to positive and negative external influences. Which interactions support the dynamics and adaptability of the strategy in a positive way? As a contribution to the literature, the paper will highlight which elements have the biggest influence on the flexibility of business and which items are the most important for sustainable behaviour in an uncertain and turbulent environment. In this survey (twice observed groups), the main aim is to identify the effect of investment on innovation, strategy preparation and the relationship between financial ratios and company performance. The survey of this study was conducted with owners and managers of small and medium size businesses in the Czech Republic (under 250 employees) operating between the years 2007–2012. The main goal of this paper is, based on the literature review, to provide a practical model of adaptation. Research methodology, analyses results and research models will take place in the second section. The results of the analyses will be discussed and recommendations will be provided in the last section. The QRBITS analysis is presented as a special tool for analyzing the business environment and resources. Finally, a model of dynamic entrepreneurship is presented as a combination of factors which generate the final effectiveness of strategy implementation.

Strategy and Sustainable Business Development: Dynamic Hazard or Dynamic Mania? Lessons Learned from a Crisis

Turbulent times bring about not only new technologies but also well-skilled people without even minimum business knowledge, who use only their specialized potential in business practice. How can one utilize the fundamental planning pillars within businesses when the behavior itself is not predicable? What interactions support the dynamics and adaptability of the business in a positive way? Can different types of stakeholders (or other factors such as the business age or interconnections) shed light on developing a better understanding of strategy making in different areas of business? The proposed model incorporates dynamic behavior and shows how manipulating certain items can alter outcomes in the strategic system in a predicable way. As a contribution to the literature, the paper will highlight who has the biggest influence on the flexibility of business and which items are the most important for strategy making in an uncertain and turbulent environment. The main goal of this paper is, based on the literature review, to provide a practical model of adaptation. In this context, the study begins by a literature review of strategy evaluation and possible measurement of success. Research methodology, analyses results and the research model will be dealt with in the second section. The results of the analyses will be discussed and a recommendation will be provided in the last section. Finally, the model of dynamic entrepreneurship is presented with a combination of final effectiveness strategy evaluation tools.

Guanxi, performance and innovation in entrepreneurial service projects

PurposeThis paper aims to analyze the role played by two dimensions of entrepreneurs' private social capital in the survival, growth and innovativeness of entrepreneurial service ventures: local size and preferential attachment degree.Design/methodology/approachData were collected by a questionnaire, the unit of investigation being the private entrepreneur in the service sector in the city of Shanghai. The questionnaire allows the authors to identify the social network of the entrepreneurs, estimate the empirical degree distribution for the entire sample, and estimate local size and preferential attachment degree.FindingsThere is empirical evidence that entrepreneurs do not create social networks with preferential attachment structure and a large local size of the network increases the chances of survival of new ventures; however, the chance to become a dynamic venture is only related to entrepreneurs' preferential attachment degree.Social implicationsAny entrepreneurial strategy should include an investment plan to generate a minimum level of social capital orguanxi. Additionally, efficient strategy to generate social capital for dynamic entrepreneurship should focus on the creation of quality social capital. The underestimation of the role of social capital seems to have a deeper impact when analyzing the phenomenon of entrepreneurial innovation.Originality/valueThis conclusion suggests that the role of social capital in the entrepreneurial process could be underestimated systematically, since most of the literature only considers local measures of social capital. This underestimation seems to have a deeper impact when analyzing the phenomenon of entrepreneurial innovation.

Dynamic entrepreneurship: The engine of economic growth and development in Serbia

In Serbia, there are around 3% of fast-growing enterprises that boast a growth potential, The results of research into dynamic entrepreneurship in Serbia have promoted a new methodological approach that has confirmed the well-known Birch's rule that at least 85% of economic growth and creation of new jobs in any economy is generated by, at most, 5% of enterprises, Given that in Serbia less than 3% of enterprises generate economic growth, fast-growing enterprises and gazelles present an economic buffer from economic recession, Major research findings are as follows: 2,583 fast-growing enterprises accounted for 90% of the growth of gross value added of Serbia in the period 2006-2010,114% of the growth of business revenues (they covered 14% of the loss generated by the rest of the economy!); they also contributed to the growth of overall income and the creation of 33,000 newjobs, The rate of growth of value added of 500 dynamic enterprises in manufacturing industry was 100% in 5 years! Employment in 300 Serbian gazelles (most dynamic enterprises) doubled! Economic recommendations presented in the paper follow two directions: firstly, given that the SME sector is particularly hardly hit by the economic crisis, it is vital to create additional stimulating mechanisms for entrepreneurs so that production could be triggered and employment decline prevented, Secondly, it is necessary to define a set of measures in order to create conditions conducive to a faster growth of dynamic entrepreneurship in Serbia.

Essays on Dynamic Competition and Academic Entrepreneurship - Dissertation Executive Summary

My dissertation focuses on dynamic firm competition and academic entrepreneurship. The first essay studies the dynamics and equilibrium outcomes of a duopoly in which firms make decisions about both capacity expansion and cost reduction. The second essay is an extension of the framework used in the first essay to study the strategic roles of exogenous spillovers and absorptive capacity. The third essay examines the effects of the Bayh-Dole Act (1980) and the Pasteur’s Quadrant effects on a faculty’s research efforts over a career life cycle, taking into account research preferences and productivities, spillovers among different types of research knowledge, and monetary payoffs. The last essay further looks at a professor’s transition between academia and entrepreneurship.

Structural transformations: A development imperative

Economic growth is not possible without structural changes. The economic structure of an economy depends on the degree of development and of its comparative industrial advantages. The analysis of reform experiences shows that transition results depend both on the speed of implemented reforms and on the starting position. Generally speaking, economic growth was higher in those transition economies where reforms were faster than in those that pursued a strategy of gradual development. The crisis brought to the fore the importance of industrial policy, particularly in transition economies. A development imperative of the Serbian economy are structural changes in manufacturing industry. The industrial structure in place is characterized by low level of value added generated by exports. The paper emphasizes the significance of three focal points of structural transformations: reformulation of macroeconomic policies to prop up industrial development, the development of dynamic entrepreneurship, and regional development of industry. Structural transformations are of decisive importance to the reallocation of resources to more productive sectors of the economy and for making room for new enterprises and development of the entrepreneurial sector.

An Empirical Study on the Relationships between Dynamic Capabilities and Entrepreneurship Performance

Based on the concept of dynamic capabilities(Teece,1997), the paper used three dimensions to interpret the dynamic capabilities for entrepreneurship, then built Structural Equation Model(SEM) to quantitatively study the relationships between dynamic capacities and entrepreneurship performance. The study found that the leadership as the element of the dynamic capabilities for entrepreneurship played the most important role for high performance.

Entrepreneurship: An Educational Perspective (The Case Of Slovenia Compared To Developed Economies)

Challenges of modern economy are forcing the developed countries to seek comparative advantages mainly in their human resources in the trained, educated, flexible and self-confident workforce. Lifetime learning, continuous training and systematic development of entrepreneurial and managerial skills are becoming the basic need for any developed and/or developing country. Well-educated people with the above mentioned characteristics are initiators of high-tech and dynamic entrepreneurship, which is without doubt the main factor of development. Considering the fact that Slovenia is still far away from ideal entrepreneurial society in which entrepreneurship is the way of life for the majority of its population as well as taking into account that Slovenian entrepreneurs and managers have much lower education than their American counterparts we come to the conclusion that Slovenia should focus much more on entrepreneurial and managerial education. For these reasons we are going to discuss the following hypotheses:Slovenia needs to expand its entrepreneurial activity in general, especially dynamic and high-tech entrepreneurship to compete successfully on the European market.The psychological profile of Slovenian people and/or entrepreneurs is closer to theprofile of employees than to dynamic entrepreneurs. Dynamic entrepreneurship requires a higher educational level than Slovenian entrepreneursposses.Slovenia should improve its educational structure.Entrepreneurial education should involve the implementation of modern, active learningmethods.Active teaching (learning) methods contribute to the development of entrepreneurial characteristics.

Dimensions Of Entrepreneurial Activity: The Case Of Slovenia

Even though the Slovenian economic development policy is forcing the development of fast-growing enterprises, there is still a significant gap between the vision of highly-developed entrepreneurship and Slovenian entrepreneurial reality. Increasing rate of environmental change, technological complexity, globalization and many other challenges of modern economy are continuously forcing the developed countries to seek comparative advantages mainly in their human resources in the trained, educated, flexible and self-confident workforce. Well educated people, possessing entrepreneurial skills and characteristics are initiators of high-tech and dynamic entrepreneurship, which is without doubt the main factor of development. In spite of the fact that the Slovenian economic development policy is forcing the development of high-tech and knowledge-based enterprises, there is still the significant gap between the vision of highly-developed entrepreneurship and Slovenian entrepreneurial reality. Considering the fact, that Slovenia is still far away from ideal entrepreneurial society in which entrepreneurship is the way of life for the majority of its population, this paper discusses dimensions of entrepreneurial activity, the main obstacles of entrepreneurial activity in Slovenia and the following hypotheses: (1) Slovenia needs to expand its entrepreneurial activity, especially high-tech, knowledge-based and dynamic entrepreneurship to compete successfully on the European market, (2) entrepreneurial culture in Slovenia is rather low; the psychological profile of Slovenian entrepreneurs is closer to profile of employees than to dynamic entrepreneurs. As the entrepreneurial activity is a major feature showing the development of certain economy, the main aim of this study is to highlight the entrepreneurial activity in Slovenia and consequently to give suggestions for improving and developing current entrepreneurial situation. A vital task of the Slovenian entrepreneurial policy at the beginning of the 21st century is to set up a learning organization platform in small and medium enterprises, thus enabling their growth and sustainable comparative advantage. Moreover, the greatest challenge is to change the peoples attitudes - building entrepreneurial culture in striving to move Slovenian economy towards the knowledge-based society.

Employment problems under the conditions of dynamic entrepreneurship in the regions of Latvia

Employment problems under the conditions of dynamic entrepreneurship in the regions of Latvia

The value of delays: market- and policy-induced adjustment processes as a motivating factor in dynamic entrepreneurship

Reaching societal consensus on how to deal with new issues, e.g. agreeing on commercial law for e-commerce, takes time. Traditional economics has considered such anomalies as market imperfections. By contrast, this paper suggests perceiving such “delays” as windows of opportunity for entrepreneurs. These considerations from evolutionary economics and entrepreneurship will be explored in a case study on disease management services in Germany. It will become clear that detailed ex ante legal regulation restricts entrepreneurial room for variation. To avoid this loss of knowledge generation, the government should abstain from introducing such premature intervention without having to challenge existing meta-rules.

Regional development strategy of high-tech industry: The case of Vojvodina

The initial thesis in the present work is that the solution of the problem of improving the competiveness of the economy of Vojvodina indispensably should open the room for the development of high-tech industries, in the first line on the basis of dynamic entrepreneurship and development of small and medium enterprises (SMEs). Emphasis in the research is on the analysis of the problem of inappropriate institutional order as a factor blocking innovative entrepreneurial conduct, technological development and economic valorization of high technologies, efficient socio-economic coordination of individual development initiatives and larger orientation of financial capital to risky investments in new industries. In this context, the most important limiting factors of development and economic valorization of high technologies in Vojvodina are defined as: (1) absence of socio-economic motivation for innovative behavior and manufacturing entrepreneurship, (2) low availability of skilled and internationally competent labour, (3) poor quality of regional, subregional and local STIEOT infrastructure, (4) orientation of regional financial infrastructure to credit imports and population and (5) low efficiency of regional, sub regional and local administrative and public services in eliminating above problems. In the light of those observations the operationalization of the concrete contents of development strategy for high-tech industries in Vojvodina is defined as a measure of ability to include regional, subregional and local institutions and public services to find how to solve the following problems: 1. providing conditions for internationally competent training of entrepreneurs, managers and expert teams in the function of acquiring necessary knowledge for the implementation of modern technological, managerial and organizational solutions needed for the foundation and dynamic development of high-tech enterprises, 2. provision of technical and economic support to entrepreneurs, managers and expert teams in their concrete activities in the generation and economic valuation of new knowledge and 3. provision of technical and economic help for the implementation of contemporary solutions relating to standardization metrology, specification of quality and sustainable development in the function of providing microeconomic (global) competitiveness. The basis for functioning of the concept of development strategy for high-tech industries in Vojvodina defined that way is the activity of the public factor to advance the system of education and to develop relevant scientific-technological infrastructure. In this context, the University of Novi Sad as well as private faculties in Vojvodina, their respective specialized and multidisciplinary scientific-research institutes, innovation centers technology parks and the like (necessary to be developed and advanced as soon as possible!) should become basic factors for eliminating the consequences of actual institutional disorder and create entreprenurship oriented socio-economic environment as a basic framework for the development of the high-tech SMEs.