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Article

Martin Obschonka and Christian Fisch

Advances in Artificial Intelligence (AI) are intensively shaping businesses and the economy as a whole, and AI-related research is exploding in many domains of business and management research. In contrast, AI has received relatively little attention within the domain of entrepreneurship research, while many entrepreneurship scholars agree that AI will likely shape entrepreneurship research in deep, disruptive ways. When summarizing both the existing entrepreneurship literature on AI and potential avenues for future research, the growing relevance of AI for entrepreneurship research manifests itself along two dimensions. First, AI applications in the real world establish a distinct research topic (e.g., whether and how entrepreneurs and entrepreneurial ventures use and develop AI-based technologies, or how AI can function as an external enabler that generates and enhances entrepreneurial outcomes). In other words, AI is changing the research object in entrepreneurship research. The second dimension refers to drawing on AI-based research methods, such as big data techniques or AI-based forecasting methods. Such AI-based methods open several avenues for researchers to gain new, influential insights into entrepreneurs and entrepreneurial ventures that are more difficult to assess using traditional methods. In other words, AI is changing the research methods. Given that, so far, human intelligence could not fully uncover and comprehend the secrets behind the entrepreneurial process that is so deeply embedded in uncertainty and opportunity, AI-supported research methods might achieve new breakthrough discoveries. We conclude that the field needs to embrace AI as a topic and research method more enthusiastically while maintaining the essential research standards and scientific rigor that guarantee the field’s well-being, reputation, and impact.

Article

The arts have played a major role in the development of management theory, practice, and education; and artists’ competencies like creativity, inventiveness, aesthetic appreciation, and a design mindset are increasingly vital for individual and organizational success in a competitive global world. The arts have long been used in teaching to: (a) explore human nature and social structures; (b) facilitate cognitive, socioemotional, and behavioral growth; (c) translate theory into action; (d) provide opportunities for professional development; and (e) enhance individual and systemic creativity and capacities for change. Use of literature and films are curricular mainstays. A review of the history of the arts in management teaching and learning illustrates how the arts have expanded our ways of knowing and defining managerial and leadership effectiveness—and the competencies and training necessary for them. The scholarship of management teaching is large, primarily ‘how-to’ teaching designs and the assessments of them. There is a clear need to expand the research on how and why the arts are and can be used more effectively to educate professionals, enable business growth and new product development, facilitate collaboration and team building, and bring innovative solutions to complex ideas. Research priorities include: the systematic assessments of the state of arts-based management teaching and learning; explorations of stakeholder attitudes and of environmental forces contributing to current educational models and practices; analyses of the learning impact of various pedagogical methods and designs; examining the unique role of the arts in professional education and, especially, in teaching for effective action; mining critical research from education, psychology, creativity studies, and other relevant disciplines to strengthen management teaching and learning; and probing how to teach complex skills like innovative thinking and creativity. Research on new roles and uses for the arts provide a foundation for a creative revisiting of 21st-century management education and training.

Article

There are no clear definitions of entrepreneurship and art. It is therefore difficult to explain and theorize arts entrepreneurship education. Here, what artists think about these issues in the United States, India, and Mexico is explored. Suggestions made by artists were examined and included in the proposed arts entrepreneurship education theory. Artists stated that they do experience lack of business skills that arts entrepreneurship education can help them acquire. These business and aesthetic skill sets are needed to make a living as an artist. The Coleman Fellows Program provided an opportunity to test the arts entrepreneurship theory constructs being proposed. The results from these tests are included the article. The 2017 annual Strategic National Arts Alumni study reported that artists continue to suffer from several skill gaps. Of these, financial, business management, and entrepreneurship skills were identified as the main gaps that continue to plague artists. This is troubling because numerous educational and training efforts have been underway to address these and other skill gaps since at least the early 2000s. However, they have not closed these skill gaps. A modified arts entrepreneurship education theory is proposed in order to do so. Artists who acquire these skills should have a higher probability of success making a living practicing their art form. The article proposes three arts entrepreneurship education theory constructs, namely collaborative pedagogies utilizing the modules infusion method, entrepreneurial universities where these pedagogies can be tested and improved, and effectively managing the commodification of arts. Supporting evidence is provided for the three constructs, along with examples of the modules of entrepreneurship content for infusion. Implications and recommendations for future arts entrepreneurship education programs are provided and discussed.

Article

Bootstrapping is a term, a construct, and a paradigm that has attracted substantial attention from both popular press writers and scholarly researchers. In the scholarly community bootstrapping research is concerned, broadly, with studying the phenomenon of startups in resource poor environments. While this would describe virtually all startups, bootstrapping is most focused upon those resource-starved startups that elected to use only the resources existing internally to the firm or founder(s). That is, in bootstrapped firms, no financing has been attained from individuals or entities outside the firm. In practice, bootstrapping is understood as (a) launching a business with no external debt or equity, and (b) finding creative ways to manage a business launched with no external debt or equity. Most entrepreneurs bootstrap at founding. It is estimated that few (20%) take on external debt at startup; and far fewer (5%) launch with external equity. Examples of techniques employed because of the decision to bootstrap include using credit cards, drawing upon home equity and sweat equity, taking loans from family, and investing salary from one’s “day job.” There are fundamental reasons for this, both from a demand side and a supply side. From the demand side entrepreneurs, on average, are autonomous and therefore have a preference for control and a general aversion to external forms of capital, both debt and equity. On the supply side, because of extreme asymmetric information that exists between financiers and entrepreneurs, financiers often cannot accurately gauge the underlying quality of the entrepreneur/venture and are therefore reluctant to provide capital to them. With regard to outcomes of bootstrapping, though, the research is equivocal. Ceteris paribus, it appears that there is no significant difference in performance between bootstrappers and non-bootstrappers; however, contingencies likely exist. For example, non-bootstrappers are likely more prone to failure because they often take more risks. Therefore, while a few heavily financed ventures may achieve lofty success, many fail in dramatic fashion. By contrast, bootstrappers are often more cautious and therefore these firms demonstrate less variance in outcomes. Understanding of both antecedents and outcomes of bootstrapping has grown since the introduction of the construct in the late 1980s. Because of this expanded understanding, the construct has evolved from phenomenological roots to one more grounded in theory. That said, there remain ambiguities around bootstrapping, not the least of which is the existence of myriad definitions and resultant operationalizations. Partially because of these varied conceptualizations, the scholarship on bootstrapping has been somewhat fragmented and challenging to decipher. This fragmented accumulation has led to not only a literature with vivid applications and examples, but also one with little universal logic. This fact has made it somewhat difficult for a field to advance. However, insights from existing theory (e.g., signaling, cultural entrepreneurship) as well as the relatively recent development of closely related bases (e.g., effectuation, bricolage) can complement and advance bootstrapping by adding theoretical breadth and depth. When understood alongside these related lines of research in entrepreneurship, researchers are better equipped to create, catalog, and accumulate knowledge regarding bootstrapping. In turn, educators will be more effective in communicating how entrepreneurs are able to launch in resource poor environments, and ultimately achieve success.

Article

Claudio Giachetti and Giovanni Battista Dagnino

Competitive dynamics inquiry originates from a sequence of attacks and counterattacks among firms in an industry. Firms attack and respond to attacks of rivals in order to strengthen or defend their competitive position within their competitive space. Competitive dynamics research is thus centered on the analysis of how the firm’s actions affect rivals’ reactions and performance. Actually, the nature of competitive dynamics research is the open recognition that firm strategies are “dynamic”: Strategic actions initiated by one firm may trigger a series of actions among rival firms. The new competitive environment in many industries has generated the inception of furious competition, emphasizing flexibility, speed, and innovation in response to fast-changing technological and institutional conditions and temporary competitive advantages. The key constructs and the intellectual roots of competitive dynamics (i.e., Schumpeter’s theory of creative destruction and industrial organization economics and related oligopoly theories) offer some practical examples of industry and firm cases where competitive dynamics have found their main applications. The relevant underpinnings of the awareness–motivation–capability (AMC) framework provide an integrative model of the key behavioral drivers that shape a competitive actions and responses framework (i.e., the factors influencing the firm’s awareness of the context; the factors inducing or impeding the motivation of firms to respond to competitors’ action; and the capability-based factors affecting the firm’s ability to undertake actions), the three key attributes (i.e., the specific actions of firms in the industry, the firm’s competitive interdependence, and the antecedents and performance implications of firms’ competitive actions and reactions), and the three main levels of analysis used in competitive dynamics literature (i.e., action-level studies, business-level studies, and corporate-level studies). Some insights regarding the relationship between dynamic competition and the sources of temporary competitive advantage, coopetition dynamics, as well as the kind of accelerated competition epitomizing early 21st-century digital dynamics settings update the traditional competitive dynamics flavor, as they are connected with firms’ strategic interaction and the pursuit of temporary advantages.

Article

Rhonda K. Reger and Paula A. Kincaid

Content analysis is to words (and other unstructured data) as statistics is to numbers (also called structured data)—an umbrella term encompassing a range of analytic techniques. Content analyses range from purely qualitative analyses, often used in grounded theorizing and case-based research to reduce interview data into theoretically meaningful categories, to highly quantitative analyses that use concept dictionaries to convert words and phrases into numerical tables for further quantitative analysis. Common specialized types of qualitative content analysis include methods associated with grounded theorizing, narrative analysis, discourse analysis, rhetorical analysis, semiotic analysis, interpretative phenomenological analysis, and conversation analysis. Major quantitative content analyses include dictionary-based approaches, topic modeling, and natural language processing. Though specific steps for specific types of content analysis vary, a prototypical content analysis requires eight steps beginning with defining coding units and ending with assessing the trustworthiness, reliability, and validity of the overall coding. Furthermore, while most content analysis evaluates textual data, some studies also analyze visual data such as gestures, videos and pictures, and verbal data such as tone. Content analysis has several advantages over other data collection and analysis methods. Content analysis provides a flexible set of tools that are suitable for many research questions where quantitative data are unavailable. Many forms of content analysis provide a replicable methodology to access individual and collective structures and processes. Moreover, content analysis of documents and videos that organizational actors produce in the normal course of their work provides unobtrusive ways to study sociocognitive concepts and processes in context, and thus avoids some of the most serious concerns associated with other commonly used methods. Content analysis requires significant researcher judgment such that inadvertent biasing of results is a common concern. On balance, content analysis is a promising activity for the rigorous exploration of many important but difficult-to-study issues that are not easily studied via other methods. For these reasons, content analysis is burgeoning in business and management research as researchers seek to study complex and subtle phenomena.

Article

Donald F. Kuratko and Jeffrey G. Covin

The theoretical and empirical knowledge on corporate entrepreneurship (ce) has evolved in the research domain over the last 50 years, beginning very slowly and growing in importance in that time. Because of this evolution and expansion in CE research, the theoretical and empirical knowledge about CE and the entrepreneurial behavior on which it is based has progressed to a point where a greater understanding of the concept can be presented. Many of the elements essential to constructing a theoretically grounded understanding of the domains of CE have been identified. An examination of the field reveals that there are three research domains that have developed over the years: corporate venturing (either internal or external), strategic entrepreneurship, and entrepreneurial orientation. In examining the evolution of CE research across five decades, the focus of CE research has varied over the years. The very early research published in the 1970s focused more on how teams could establish entrepreneurial activities inside established organizations; however, this early research was sparse because CE was not widely acknowledged nor sought in existing organizations. The 1980s saw some research into entrepreneurial behavior inside established organizations that explained how such activity could simply not exist in the structure and operations of existing corporations. Opposed to that thinking, many more researchers demonstrated that the idea of corporate entrepreneurial activity could be conceived as a process of organizational renewal. In the 1990s, researchers began to develop more comprehensive examinations of CE that focused on re-energizing companies and therefore increasing its abilities to develop innovations. The first and second decades of the 21st century witnessed a more sophisticated refinement of research topics in CE. In addition to research specific to the development of the three main domains of CE (corporate venturing, entrepreneurial orientation, and strategic entrepreneurship), there has been research on more specific areas of interest in CE including the implementation of CE, management levels, the individual corporate entrepreneur, models and metrics of CE, a deeper examination of internal corporate ventures, the international domain, firm size, family firms, ethics, and corporate venture capital. These areas illustrate the developmental expansion of interest in CE across different domains. Even with the continued expansion in the research on CE, there is so much that is still not understood nor researched well enough to fully advance the theoretical and empirical knowledge on CE. With the growing climate of disruption through external antecedents such as COVID-19, the entrepreneurial behavior of individuals within organizations becomes paramount and warrants a deeper understanding. Newer research questions on CE are emerging and further theoretical exploration should be the work of ongoing scholarly efforts.

Article

Corporate governance is a recent concept that encompasses the costs caused by managerial misbehavior. It is concerned with how organizations in general, and corporations in particular, produce value and how that value is distributed among the members of the corporation, its stakeholders. The interrelation of value production and value distribution links the ubiquitous technological aspect (the production of value) with the moral and ethical dimension (the distribution of value). Corporate governance is concerned with this link in general, but more specifically with the moral and ethical dimensions of distributing the generated value among the stakeholders. Value in firms is created by firm-specific investments, and the motivation and coordination of value-enhancing activities and investment is protected by the power concentrated at the pyramidal top of the organization. In modern companies, it is the CEO and the top management who decide how to create value and how to distribute it among the relevant stakeholders. Due to asymmetric information and the imperfect nature of markets and contracts, adverse selection and moral hazard problems occur, where delegated (selected) managers could act in their own interest at the costs of other relevant stakeholders. Corporate governance can be understood as a two-tailed concept. The first aspect is about identifying the (most) relevant stakeholder(s), separating theory and practice into two different and conflicting streams: the stakeholder value approach and the shareholder value approach. The second aspect of the concept is about providing and analyzing different mechanisms, reducing the costs induced by moral hazard and adverse selection effects, and balancing out the motivation and coordination problems of the relevant stakeholders. Corporate governance is an interdisciplinary concept encompassing academic fields such as finance, economics, accounting, law, taxation, and psychology, among others. As countries differ according to their institutions (i.e., legal and political systems, norms, and rules), firms differ according to their size, age, dominant shareholders, or industries. Thus, concepts in corporate governance differ along these dimensions as well. And while the underlying characteristics vary in time, continuously or as a result of an exogenous shock, concepts in corporate governance are dynamic and static, offering a challenging field of interest for academics, policymakers, and firm managers.

Article

Vincenzo Butticè and Massimo G. Colombo

Fundraising has proved difficult for many entrepreneurs and ventures in the early stages of their businesses because of significant information asymmetries with investors and a lack of collateral. In an attempt to overcome such difficulties, since the early 2010s, some entrepreneurs have come to rely on the Internet in order to directly seek funding from the general public, or the “crowd.” The practice of collecting small amounts of capital from the “crowd” of Internet users is called crowdfunding. Crowdfunding research is a relative newcomer to the discipline of entrepreneurial finance. However, the availability of easy-to-access data, the diffusion of this funding channel among entrepreneurs, and increasing policy attention have made crowdfunding one of the most investigated areas of research in entrepreneurial finance. The literature has discussed crowdfunding as more than a simple mean of financing. Crowdfunding also allows entrepreneurs to develop a virtual community of followers, which provides a valuable source of information with which to test and improve early versions of innovative products. Moreover, crowdfunding represents a method of gaining information about market response to a given product and the size of demand for that product, and is a powerful marketing instrument that can be used to increase brand awareness and to promote the arts, social initiatives, and financial inclusion. However, crowdfunding also entails a number of pitfalls for entrepreneurs. In order to collect financial resources from the crowd, entrepreneurs are required to share sensitive information online. This includes information about the entrepreneurial initiative, the team, and the business model they are using. The provision of this information may facilitate product counterfeiting, or the appropriation of the value of the idea by other firms or entrepreneurs. Moreover, crowdfunding entails the risk of social stigma if the funding campaign results in a failure, because information about the performance of the crowdfunding campaign usually remains accessible online. Finally, crowdfunding entails additional challenges related to the management of the crowd of backers after the campaign, since several backers will be active providers of feedback and will interact with the entrepreneurs through direct communication. Despite these disadvantages crowdfunding has become a widely used funding source for entrepreneurs looking for financing for sustainable projects, creative initiatives, and innovative ideas.

Article

Matthew R. Marvel

Entrepreneur coachability is the degree to which an entrepreneur seeks, carefully considers, and integrates feedback to improve a venture’s performance. There is increasing evidence that entrepreneur coachability is important for attracting the social and financial resources necessary for venture growth. Although entrepreneur coachability has emerged as an especially relevant construct for practitioners, start-up ecosystem leaders, and scholars alike, research on this entrepreneurial behavior is in its infancy. What appears to be a consistent finding across studies is that some entrepreneurs are more coachable than others, which affects downstream outcomes—particularly resource acquisition. However, there are sizable theoretical and empirical gaps that limit our understanding about the value of coachability to entrepreneurship research. As a body of literature develops, it is useful to take inventory of the work that has been accomplished thus far and to build from the lessons learned to identify insightful new directions. The topic of entrepreneur coachability has interdisciplinary appeal, and there is a surge of entrepreneur coaching taking place across start-up ecosystems. Research on coaching is diverse, and scholarship has developed across the academic domains of athletics, marketing, workplace coaching, and entrepreneurship. To identify progress to date, promising research gaps, and paths for future exploration, the literature on entrepreneur coachability is critically reviewed. To consider the future development of entrepreneur coachability scholarship, a research agenda is organized by the antecedents of entrepreneurship coachability, outcomes of entrepreneur coachability, and how entrepreneur–coach fit affects learning and development. Future scholarship is needed to more fully explore the antecedents, mechanisms, and/or consequences of entrepreneur coachability. The pursuit and development of this research stream represent fertile ground for meaningful contributions to entrepreneurship theory and practice.

Article

Pierluigi Martino, Greg Bell, Abdul A. Rasheed, and Cristiano Bellavitis

Entrepreneurial finance includes a wide array of sources of capital, such as venture capital, angel investors, equity, and debt finance, along with new forms of financing through crowdfunding and initial coin offerings. Providers of funds to entrepreneurial ventures, whether they are venture capitalists, angel investors, debt holders, or participants in crowdfunding face similar agency problems, such as moral hazard and adverse selection. There are considerable differences across investors in terms of their objectives, risk-bearing capacity, and time horizons, as well as in their motivation and ability to monitor the firms in which they invest. These differences give rise to governance challenges associated with each source of entrepreneurial finance.

Article

The pursuit of entrepreneurship is often characterized by high levels of struggle and adversity, and even those who ultimately succeed in their entrepreneurial endeavors routinely experience failures and setbacks along the way. Therefore, it is likely that individuals who are more skilled at coping with, and conquering, such obstacles in their quest for success are more apt to enter, and be successful at, entrepreneurial careers. While several factors contribute to an individual’s ability to persevere through adversity and to continue to work to accomplish long-term goals, individual grit has garnered an increasing level of attention as a key element in such persistence, particularly in entrepreneurial contexts. Grit, conceptualized as an individual’s passion and perseverance in the pursuit of accomplishing long-term goals, can play several roles in the entrepreneurial process. While grit is a potential outcome of entrepreneurial passion, it also has important associations with several key entrepreneurial outcomes. For instance, given that entrepreneurship is linked with risk-taking, grit is an asset for individuals who chase entrepreneurial opportunities. Higher levels of risk incur a greater likelihood of failure, and the ability to persist with entrepreneurial initiatives in the face of failures is potentially bolstered by high levels of grit. Furthermore, persistence against adversity can often translate into improved venture performance as a result of entrepreneurs’ continued, focused efforts at developing and improving their new venture. Furthermore, grit may play an even more important role for individuals who face heightened levels of adversity during their entrepreneurial careers. Women and younger individuals often experience unique challenges that their counterparts who are men or older do not have to face. Therefore, having high levels of grit may be an advantage in women and youth. While the relationship between grit and entrepreneurship has gained considerable momentum as a topic of scholarly interest, there are important avenues available for future research to further develop understanding of the topic.

Article

Entrepreneurial opportunity represents individuals taking action to introduce new products, services, or ways of organizing. The opportunity concept has interdisciplinary appeal and in the field of entrepreneurship it has been elevated to a defining feature, representing bedrock in entrepreneurship research. Hence, researchers have investigated the emergence and pursuit of opportunity and it has become a topic of lively debate, stemming from competing theoretical approaches designed to represent the phenomenon. Insights gleaned from these discussions and related empirical studies highlight the opportunity concept as a valuable umbrella construct that meaningfully integrates key elements of the entrepreneurial journey. It coherently ties, for example, cognitive attention and belief formation to entrepreneurial action in ways that account for the various elements that influence entrepreneurs’ contemplations of bringing forward something new. This is a generative process that encapsulates entrepreneurs initially coming up with opportunity ideas and then evaluating those ideas for viability. The beliefs generated in the evaluation of opportunity ideas drive entrepreneurial action. There are a host of elements that influence this process and by capturing them, researchers have codified entrepreneurial opportunity as a phenomenon that involves the integration of entrepreneurs’ motivations and goals with the ideas and concepts they generate, and the actions they deploy to bring their concepts to fruition. This understanding presents intriguing arenas for future research, such as work that takes an adaptive and multiple opportunity perspective along with studies that address time and timing as embedded in entrepreneurial opportunity.

Article

Poverty is more than a lack of money or an inability to afford basic necessities. It is an experience that is multidimensional and includes challenges related to literacy, health, food security, housing, transportation, safety, fatigue, underemployment, limited social networks, and limited access to many opportunities available to those in other income categories. Poverty is a pernicious global problem with unacceptably high levels persisting in spite of trillions of dollars of annual spending by governments and other organizations. While this kind of investment represents a critical lifeline to many individuals and families, it is not moving enough of them out of poverty. As a result, there is a need to explore alternative solutions and approaches. Entrepreneurship, or the creation of businesses, by those experiencing poverty is one potential pathway to a better life. Yet it is a pathway about which we understand relatively little. While the poverty–entrepreneurship interface has received growing attention from scholars over the past few years, very little theoretical or conceptual work has been done. More critically, there is scant empirical evidence on such basic questions as the rate of business creation by those in poverty, success and sustainability rates, key success factors, the role of institutions and entrepreneurial ecosystems in venture outcomes, and much more. The unique difficulties faced by these entrepreneurs can be captured through the liability of poorness, a concept which includes gaps in five types of literacy, a scarcity or short-term orientation, severe nonbusiness distractions, and the lack of any safety net. As a result, the ventures that are created tend to be survival businesses that are labor intensive, with low margins, little differentiation, no bargaining power with suppliers or customers, lack of equipment and technology, and limited capacity. These are fragile enterprises, suggesting the priority may not simply be fostering higher levels of start-up activity among the poor, but interventions that enable them to become sustainable. A beginning point in realizing the potential of entrepreneurship as a poverty alleviation tool is the development of new insights on expanding opportunity horizons of these individuals, helping them escape the commodity trap, rethinking resourcing and microcredit, and assisting with adoption of the entrepreneurial mindset.

Article

Corporate governance research has a long and varied history, having evolved from a broad number of scholarly disciplines, including sociology, law, finance, and management. Across these various disciplines, it is maintained that governance is essential to corporate success, as it provides strategic and ethical guidance to the company. While research has largely focused on internal mechanisms through which governance is enacted (such as ownership arrangements, board structures, managerial rewards and incentives, etc.), external forces and mechanisms are increasingly important to modern businesses. External corporate governance mechanisms emanate from outside the organization and support forces that promote governance structures, processes, and practices by top executives and board directors. Institutions, industries, markets, networks, and strong individual external stakeholders all work to influence corporate governance decisions and behaviors both directly and indirectly. The external forces induce mechanisms that influence desirable behaviors or intervene when internal mechanisms are compromised or ineffective. Recent literature on external governance mechanisms can help scholars and practitioners develop a better understanding of this important area of inquiry, and future research should consider three broad suggestions to move the field forward: differentiating between forces and mechanisms; recognizing unique stakeholders, boundaries, and levels of analysis; and improving empirical designs to better recognize and understand what factors matter in instituting governance adjustments and behavior changes.

Article

Per Davidsson, Jan Recker, and Frederik von Briel

“External enabler” (EE) denotes nontrivial changes to the business environment—such as new technology, regulatory change, demographic and sociocultural trends, macroeconomic swings, and changes to the natural environment—that enable entrepreneurial pursuits. The EE framework was developed to increase knowledge accumulation in entrepreneurship and strategy research regarding the influence of environmental factors on entrepreneurial endeavors. The framework provides detailed structure and carefully defined terminology to describe, analyze, and explain the influence of changes in the business environment on entrepreneurial pursuits. EE characteristics specify the environmental changes’ range of impact in terms of spatial, sectoral, sociocultural, and temporal scope as well as the degree of suddenness and predictability of their onset. EE mechanisms specify the types of benefits individual ventures may derive from EEs. Among others, these include cost saving, resource provision, making possible new or improved products/services, and demand expansion. EE roles situate these (anticipated) mechanisms in entrepreneurial processes as triggering and/or shaping and/or outcome-enhancing. EE’s influence is conceived of as mediated by entrepreneurial agency that—in addition to agent characteristics—is contingent on the opacity (difficulty to identify) and agency-intensity (difficulty to exploit) of EE mechanisms, with the ensuing enablement being variously fortuitous or resulting from strategic deliberation.

Article

Yijie Min, Yanlong Zhang, and Sun Hyun Park

Family firms can either be “born” or “made.” Although previous studies suggest that most of the family firms in the US context are “born,” family firms can be “made” by the founder’s decision to invite family members to the management. We conceptualize this process of family firm emergence as familization, during which lone-founders’ family influence increases as more family members are appointed to director and/or executive positions. Transition from lone-founder-control to family-control is often accompanied by significant changes in governance structure, strategic decisions, and firm performance. This work documents the pervasiveness and heterogeneity of the familization process and proposes an analytical framework covering four research areas associated with the phenomenon: the antecedents that motivate founders to choose the familization path, the familization process involving internal and external firm constituents, the consequences of familization decision, and the potential moderators of the familization impact. To better understand these theoretical perspectives, an explorative empirical investigation is conducted based on a sample of Chinese-listed firms that experienced familization. Familization cases in other Asian emerging economies were also discussed in comparison with the family firms in Western economies.

Article

Frank Hoy

Family business is a multidisciplinary subject area of critical importance to practitioners. The global volume of family business owners and managers is enormous. The firms are significant components of national economies. Yet they are often underappreciated and have been under-represented in business and economic research. Scholars have the potential for contributing to the survival and prosperity of these firms. The boundaries of the field are ill-defined. Family business scholars are seeking recognition from their colleagues. Opportunities for future research are unlimited.

Article

Instrumental stakeholder theory posits that managing for stakeholders using justice-based approaches produces competitive advantage for firms. However, achieving the ideals of stakeholder management may be challenging, and for some firms, unrewarding. Yet, when firms fail to manage for stakeholders, they contribute to stakeholder marginalization, a condition in which stakeholders feel unfairly treated and begin to scan for alternative arrangements with other firms. Stakeholder marginalization creates opportunities for competitors, but especially for new entrants, to pursue stakeholder innovation. Stakeholder innovation involves the creation of a business model that caters to marginalized stakeholder groups in a new way, by improving perceived conditions for those stakeholders (e.g., customers, employees, suppliers, or communities). Stakeholder innovations can threaten incumbencies as their ecosystems bloom and technologies improve, and they can start to draw a greater variety of resources away from incumbent networks. Because it can help to explain and predict both incumbent and new entrant behaviors, stakeholder capitalism is a useful frame for theorizing in the disciplines of management and entrepreneurship.

Article

The act of being resourceful is a commonly displayed behavior in the process of entrepreneurship. For example, entrepreneurs are known to share resources with competitors, utilize their social networks to attract capital, exchange favors for resources, engage in resource bootstrapping behaviors, repurpose and/or recombine existing resources for new purposes (i.e., bricolage), and sometimes pivot from one opportunity to another following available resource options given current situational constraints (i.e., effectuation). Currently, research on the topic of resourcefulness in the entrepreneurship literature assumes these aforementioned resourceful behaviors are attributed to a limited resource environment rather than also originating from within the entrepreneur. Frugality is a new concept in the field of entrepreneurship that suggests entrepreneurs will also enact resourceful behaviors because of their own self-regulatory processes; that is, entrepreneurs will engage in resourcefulness behaviors as a preference rather than as a forced reaction to their external resource environment. Thus, frugality represents an individual-level antecedent of resourcefulness behaviors that is not bound to the conditions of necessity-based entrepreneurship. This is important as frugality opens the door for numerous future research directions in the context of both necessity-based and opportunity-based entrepreneurship. Frugality is defined as one’s general preference to (a) conserve resources and (b) apply an economic rationale in the acquisition of resources (i.e., assessing the opportunity cost of newly acquired resources). Research in the consumer behavior literature highlights that frugality is a culturally driven trait preference, whereby one is willing to sacrifice in the short term to achieve longer-term, idiosyncratic goals. Despite a large amount of research on frugal consumer behavior, there has yet to be a systematic inquiry into how frugality more broadly influences the process of new venture creation and organizations. Empirical research highlights that frugal entrepreneurs tend to engage in higher amounts of bricolage and effectuation, thus representing a promising new topic for better understanding the process of entrepreneurship. Although it is expected that future inquiry regarding frugality in entrepreneurship will naturally orient toward the topic of resourcefulness, it is also expected that frugality will relate to numerous other important topics such as entrepreneurial well-being, opportunity recognition, opportunity exploitation, and new venture growth. Considering the novelty of frugality in entrepreneurship, and management literature generally, it would benefit future research to systematically explore both the upsides and downsides to being frugal as it relates to value creation activities.