David Ahlstrom

Entrepreneurship in Emerging Economies: Where are We Today and Where Should the Research go in the Future

Emerging economies are characterized by an increasing market orientation and an expanding economic foundation. The success of many of these economies is such that they are rapidly becoming major economic forces in the world. Entrepreneurship plays a key role in this economic development. Yet to date, little is known about entrepreneurship in emerging economies. This introductory article to the special issue on entrepreneurship in emerging economies examines the literature that exists to date in this important domain. It then reviews the research that was generated as part of this special issue on this topic. The article concludes with a discussion of the critical future research needs in this area.

Institutional Theory and Entrepreneurship: Where are We Now and Where Do We Need to Move in the Future?

Institutional theory is an increasingly utilized theoretical lens for entrepreneurship research. However, while institutional theory has proven highly useful, its use has reached a point that there is a need to establish a clearer understanding of its wide–ranging application to entrepreneurship research. Therefore, we will initially review the existing entrepreneurship literature that employs institutional theory to both understand the current status of the field, its current shortcomings, and where we need to move in the future. We then summarize and discuss the articles in this special issue and how they contribute to this process of advancing institutional theory and its application in entrepreneurship research.

An institutional view of China's venture capital industry: Explaining the differences between China and the West

Abstract Institutional theory argues that institutions in general, and culture in particular, shape the actions of firms and individuals in a number of subtle but substantive ways. The theory has been used to explain a number of significant and substantive managerial differences found in different parts of the world. To date, the examination of venture capital outside the US and Europe, however, has been rather limited. Institutional theory also suggests that there would be differences in how venture capital may operate in other parts of the world, such as Asia where the culture is substantially different from the West. Based on interviews with 36 venture capitalists in 24 venture capital firms investing in China, this exploratory research finds that Chinas institutional environment creates a number of significant differences from the West. The article discusses the impact of these findings on future research on Asian venture capital, theory development, and the activities of venture capital professionals in that region.

Venture Capital in Emerging Economies: Networks and Institutional Change

Emerging economies are characterized by fundamental and comprehensive institutional transformations as their economies begin to mature. How venture capitalist functions in environments that differ so fundamentally from those of the mature markets where venture capital was initially developed has only begun to be addressed. This article builds a framework to further the understanding of venture capital practice in emerging markets. Specific attention is focused on the impact of networks in the model, in particular, how networks and other informal institutions can act to supplement or replace formal institutions when they are weak. The article goes on to examine what the implications are for venture capital and the role of informal institutions in emerging economies as formal institutions become more established. The research and resulting model is grounded in 65 semistructured interviews with venture capitalists in emerging economies around East Asia. This article contributes to the literature by drawing attention to the impact of networks and changing institutional environments on venture capital during different phases of an economic transition process in emerging economies. The findings have implications for understanding institutional impact on venture capital activity as well as entrepreneurs and entrepreneurial ventures that seek venture capital financing in emerging economies.

An institutional perspective on the role culture in shaping strategic actions by technology-focused entrepreneurial firms in China

Economic reforms in China over the past 20 years have led to a steady economic transformation that has created many opportunities for entrepreneurial firms. A central focus in this economic development has been to encourage the founding of more technology-related entrepreneurial firms, and the creation of joint ventures between Chinese and foreign firms that employ advanced technologies. However, the interactions between these private high-technology entrepreneurial firms and the Institutional forces In their environment are somewhat different from what occurs in traditional Western high-technology businesses. These differences are due principally to the culture present in the Chinese environment. In turn, these cultural differences lead managers of high-technology entrepreneurial firms to employ tactics not well known in the West in order to successfully navigate Chinas often hostile institutional environment. This article develops the theoretical understanding of these actions grounded with observations from managers in China.

Technology assessment: a socio-cognitive perspective

Abstract Researchers use different approaches for assessing technologies. We develop this proposition by examining differences in approaches that ‘insiders’ and ‘outsiders’ use in their assessment of health care technologies. We also illustrate how the juxtaposition of these contrasting approaches creates a dynamic technological field and impacts technology selection.

Rapid Institutional Shifts and the Co-Evolution of Entrepreneurial Firms in Transition Economies

Economies in transition such as Russias are among the worlds fastest growing. Entrepreneurial firms in an environment like Russias face rapid and dramatic shifts in the institutional environment. These shifts represent significant challenges to entrepreneurial firms as they seek not only to survive but also to prosper in that environment by rapidly co–evolving with institutional changes. Prior research has focused on institutional change and its impact in developed economies. But the rate of evolution of institutions in transition economies tends to be faster and less predictable. This article reports a longitudinal study of high technology entrepreneurial firms in Russia employing a grounded theory methodology to understand how entrepreneurial ventures co–evolve with rapid institutional changes and still manage to prosper.

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Since the Asian financial crisis of the late 1990s, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.

The impact of the institutional environment on the venture capital industry in Singapore

Venture capital in most of Asia may be more accurately termed a private equity industry which focuses on funding mature firms in slow growth sectors of the economy rather than on funding start-ups. However, the venture capital industry in Singapore is becoming substantially different from that of much of Asia in that it funds high technology startups. The industry in Singapore has grown substantially in recent years, with funds under management growing from about US

Entrepreneurship in China: An overview

20 million in 1983 to more than US