Session 166

Institutional Aspects of Entrepreneurship

Track K

Date: Tuesday, October 9, 2012

 

Time: 14:15 – 15:30

Common Ground

Room: Club H


Facilitator:

  • Ilgaz Arikan, Kent State University

Title: Effectiveness Under Multilevel Environmental Uncertainty: Entrepreneurial Development and Network Strategies of Young Technology-Based Firms

Authors

  • Wouter Van Bockhaven, University of Antwerp
  • Johanna Vanderstraeten, University of Antwerp

Abstract: We develop and test hypotheses regarding the interactions of different entrepreneurial decision-making and networking strategies with institutional and competitive uncertainty dimensions in a sample of Belgian and Brazilian young technology-based ventures. The model contributes to current theorizing on strategic entrepreneurship as it corresponds with recent calls for elaboration of the 'action-interaction' nexus and the interactions of the environment with the entrepreneurial process. We use a novel scale on effectuation and causation to establish their not yet explored contingent links with performance. Simultaneously, we also test more established strategic management theorizing on interfirm networks and explore whether the ensuing strategic fit principles also apply to the entrepreneurial context of nascent organizations.

Title: Government Spending in a Changing Economy: Effects on Entrepreneurial Allocation

Authors

  • Kaitlyn DeGhetto, University of Colorado, Colorado Springs
  • Trey Sutton, University of Richmond

Abstract: Using institutional theory, we attempt to gain a better understanding of the allocation of entrepreneurs between public and private sector opportunities. We explore the effect of government policy, rules, and rewards on entrepreneurial activity in the U.S., asking the question: Does the government’s allocative power, in the form of spending and resources, affect the distribution of entrepreneurial activity between public and private sector opportunities? We propose that financial resources set-aside for entrepreneurs, availability of training, contract complexity, the financial condition of the government, and levels of underemployment and unemployment will affect the number of entrepreneurs pursuing public sector sales. As societies undergo transition environments with fluctuating economic conditions, the role of the government in supporting entrepreneurial effort through procurement practices becomes an increasingly important force.

Title: Herding in Peer-to-Peer Lending Networks

Authors

  • Michael Ciuchta, University of Central Florida
  • Jason O'Toole, Georgia State University

Abstract: What impact does investor herding behavior have on the likelihood that an entrepreneur’s ability to raise capital? In this study, we will examine the influence of investor private information in the form of borrower creditworthiness on the ability of entrepreneurs to raise capital, and whether investors engage in social learning as evidenced in less reliance on the private information in the presence of other investor decisions. We will test our hypotheses using a unique sample of business loan requests on the Prosper online peer to peer lending network.

Title: Inside the Black Box of Strategic Entrepreneurship

Authors

  • David Boss, Ohio University
  • Duane Ireland, Texas A&M University

Abstract: Extant strategic entrepreneurship (SE) research focuses primarily on contextualizing and operationalizing SE (Ireland, Hitt, & Sirmon, 2003). However, questions remain regarding SE’s theoretical underpinnings and the framework that facilitates its explanation. Herein, we develop a model to describe how firms can achieve success in their efforts to simultaneously focus on innovation-based opportunities while balancing path-dependent routines. More specifically, we propose and explain the nature of distinct relationships among two path-dependent routines (opportunity- and advantage-seeking) and two innovation foci (exploration and exploitation) and discuss the need for firms to have the ambidexterity required to engage in four combinations of activities. Institutional theory, resource dependency theory, and resource orchestration arguments inform the specification and explanation of our model to more fully explain strategic entrepreneurship.

Title: Performance Implications of Herd Behavior in Investments: Angel Investment Groups

Authors

  • Supradeep Dutta, State University of New York - Buffalo
  • Timothy Folta, University of Connecticut

Abstract: Influence of market signals can be observed in investment decisions in the entrepreneurial finance discipline that is engulfed by information asymmetries. External investors form decision heuristics based on the signals perceived in the market. In such context, members of an investor group have a tendency to promote investment herding behavior by following investment signals of reputable investors. We build a hybrid model to analyze herding behavior in the context of angel groups by integrating the theoretical lenses of rationality and social conformity into a formal model. The model analyzes situations to discern between rational explanation and social influence of herding behavior and further examines the implications of herd behavior on investment efficiency of angel group.

Title: The Complex Structure of Inerfirm Signals and the Recursive Nature of their Interpretation

Authors

  • Azi Gera, Drexel University

Abstract: Signals are more complex than current research suggests. I identify two aspects of signals: the informative aspect, which relays direct information about the sender; and the institutional aspect, which conveys legitimacy. Additionally, I propose signals are multilayered and that their depth of interpretation depends on the receivers’ ability. Hence, the interpretation function is recursive in nature. I show how the interaction between the sender’s ability to generate signals and the receiver’s ability to interpret signals determines which aspect of the signal will be prominent, and, that the sender - receiver distance determines the recursion depth. Thus, independent of the sender’s underlying quality, the receiver’s capabilities to discern this quality determines the signal’s influence on the receiver’s decision. Hence, signals’ effectiveness is target specific.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 126: Entrepreneurship & Stakeholders - The Future Research Agenda
Sun: 09:30 – 10:45
Session 127: Teaching Strategic Entrepreneurship
Sun: 11:15 – 12:30
Session 128: Poverty, Informal Firms & Strategic Entrepreneurship
Sun: 15:15 – 16:30
Session 157: Financing Entrepreneurial Ventures
Session 161: Entrepreneurial Growth
Mon: 08:00 – 09:15
Session 158: Corporate Venture Capital
Session 175: Austrian Economics & Creative Destruction
Mon: 09:30 – 10:45
Session 178: Institutional Theory & New Ventures
Session 180: Pushing the Bounds of Agency Theory
Mon: 13:30 – 14:45
Session 159: Exploration, Exploitation, and Ambidexterity
Session 169: Spinoffs, Spinouts, and Labor Mobility
Mon: 16:30 – 17:45
Session 162: New Venture Strategy & Innovation
Session 163: Cognitive Perspectives
Tue: 08:00 – 09:15
Session 164: IPOs
Session 170: Emerging Markets
Tue: 11:00 – 12:15
Session 160: Corporate Venturing and Intrapreneurship
Session 179: Social Networks within and across Firms
Tue: 14:15 – 15:30
Session 166: Institutional Aspects of Entrepreneurship
Session 167: Firm Boundaries
Tue: 15:45 – 17:00
Session 174: Social Networks & Entrepreneurship
Session 176: Value Capture & Appropriability
Tue: 17:30 – 18:45
Session 168: Uncertainty, Ambiguity, and Sense-Making
Session 173: New Venture Creation


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