Deniz Ucbasaran

The Focus of Entrepreneurial Research: Contextual and Process Issues

Low and MacMillan (1988) suggested that research into entrepreneurial behavior should consider contextual issues and identify the processes that explain rather than merely describe the entrepreneurial phenomenon. Recent studies focusing upon entrepreneurial behavior, especially heuristics, and differences between ‘types’ of entrepreneurs are discussed in this review. The literature focusing upon opportunity recognition and information search is examined. Further, the literature relating to the organizational forms selected by entrepreneurs is discussed. Studies examining the relationship between external environmental conditions and the nature of entrepreneurial activity are reviewed. We conclude that additional research attention should be directed towards gaining a greater understanding of the behavior of different types of entrepreneur (i.e., nascent, novice, serial, and portfolio entrepreneurs) and the different organizational forms selected (I.e., corporate venturing, management buy-outs and buy-ins, franchising, and the inheritance of a family firm) by entrepreneurs.

Entrepreneurial Founder Teams: Factors Associated with Member Entry and Exit

This exploratory study provides a review of the neglected area of entrepreneurial founder team turnover. A novel distinction is made between entrepreneurial founder team member entry and team member exit. Ninety owner–managed ventures were monitored between 1990 and 2000. Presented hypotheses relating to a teams human capital were explored using multivariate logistic regression analysis. Variables associated with entry were found not to be the same as those associated with exit. The size of the founding team was significantly negatively associated with subsequent team member entry. The link between team turnover and entrepreneurial team heterogeneity was mixed. Functional heterogeneity was weakly significantly positively associated with team member entry. Heterogeneity of prior entrepreneurial experience was significantly positively associated with team member exit. In addition, family firms were significantly negatively associated with team member exit. The average age of the team was not significantly associated with team member entry or exit. Additional insights in future research may be gathered if a broader definition of team turnover (i.e., considering team member entry and exit) is considered. Practitioner awareness of the different factors associated with team member entry and exit may encourage them to provide assistance, which facilitates the team building process over time in developing firms. Promising areas for additional research are highlighted.

Decisions, Actions, and Performance: Do Novice, Serial, and Portfolio Entrepreneurs Differ?*

A conceptual framework is extended to take into account differences between inexperienced novice entrepreneurs (that is, individuals with no prior private business ownership experience) and experienced serial and portfolio entrepreneurs. Some policymakers and practitioners are considering whether resources could be more effectively utilized if they were targeted toward serial and portfolio entrepreneurs, rather than in the form of additional initiatives to increase the pool of “pure” nascent entrepreneurs and novice entrepreneurs. To inform this policy debate, similarities and differences between novice, serial, and portfolio entrepreneurs are highlighted with regard to their decisions, actions, performance, and aspirations. We detected that portfolio entrepreneurs were more likely to express dimensions of entrepreneurial behavior. A case for targeted support tailored to the aspirations and needs of novice, serial, and portfolio entrepreneurs is presented.

Life After Business Failure The Process and Consequences of Business Failure for Entrepreneurs

Where there is uncertainty, there is bound to be failure. It is not surprising, therefore, that many new ventures fail. What happens to entrepreneurs when their business fails? People hear of highly successful entrepreneurs extolling the virtues of failure as a valuable teacher. Yet the aftermath of failure is often fraught with psychological, social, and financial turmoil. The purpose of this article is to review research on life after business failure for entrepreneurs, from the immediate aftermath through to recovery and re-emergence. First, the authors examine the financial, social, and psychological costs of failure, highlighting factors that may influence the magnitude of these costs (including individual responses to managing these costs). Second, they review research that explains how entrepreneurs make sense of and learn from failure. Finally, the authors present research on the outcomes of business failure, including recovery as well as cognitive and behavioral outcomes. They develop a schema to organize extant work and use this as a platform for developing an agenda for future research.

A longitudinal study of habitual entrepreneurs: starters and acquirers

This study provides insights into the characteristics and behaviour of habitual starter entrepreneurs (i.e. individuals who have established more than one business) and habitual acquirer entrepreneurs (i.e. individuals who have purchased/acquired more than one business). A human capital perspective is utilized to illustrate that the human capital accumulated by a habitual entrepreneur may influence their subsequent behaviour. Prior business ownership experience is discussed in relation to an entrepreneurs human capital accumulation, as well as their search and business opportunity identification behaviour. A case study approach is used to develop propositions that highlight the similarities and differences between habitual starter and acquirer entrepreneurs. Implications for researchers and practitioners are discussed.

Experience and Cognition Do Novice, Serial and Portfolio Entrepreneurs Differ?

Some policy makers and practitioners are considering whether resources could be more effectively utilized if they were targeted towards experienced entrepreneurs (i.e. individuals with prior private business ownership experience), rather than the provision of additional initiatives to increase the pool of inexperienced novice entrepreneurs. To inform this policy debate, similarities and differences between novice, serial and portfolio entrepreneurs are highlighted with regard to their experience and cognition. A stratified random sample of independent firms located throughout Scotland was identified. In total, 200 firms (56.5%) involved novice entrepreneurs. A further 66 firms involved serial entrepreneurs (18.6%). The remaining 88 firms involved portfolio entrepreneurs (24.9%). Portfolio entrepreneurs are associated with experience and cognitive mindsets that provide greater understanding surrounding why and how they own several businesses at the same time. A case for targeted support tailored to the aspirations and needs of novice, serial and portfolio entrepreneurs is presented.

How Much Do You Trust Me? The Dark Side of Relational Trust in New Business Creation in Established Companies

Entrepreneurship in established companies centers on new business creation that is essential for profitability and growth. Yet, it is a complex process that is riven with technical, organizational, and political uncertainties. In this article, we explore the role of trust in the new business creation process in established companies. While there is agreement that trust is conducive to entrepreneurial activities in these companies, research on the dysfunctional effects of trust on new business creation initiatives has been sparse. We contribute to the literature by discussing the various stages of the business creation process (focusing on opportunity recognition, evaluation, refinement, championing, and implementation) in established companies, examining the positive effects of relational trust on each of these stages, and analyzing the negative effects of overreliance on relational trust for each stage. We conclude by highlighting the key managerial and theoretical implications of our analyses and by outlining promising avenues for future research.

Internationalization of private firms: environmental turbulence and organizational strategies and resources

Profiles of exporting and superior-performing private small and medium-sized enterprises (SMEs) are presented. Multivariate regression evidence suggests that SMEs focusing upon an offensive and market differentiation strategy of product/service protection is associated with the propensity and the intensity of exporting. Exporting SMEs are also associated with younger and manufacturing firms as well as firms with product or service quality and/or technology resources. The perceptions by SMEs of external environmental turbulence were not significantly associated with the exporting-dependent variables. Most notably, variables associated with exporting SMEs are not the same as those associated with superior firm performance. Moreover, exporting firms did not report superior levels of performance. Implications for policy-makers, practitioners and researchers are discussed.

Does Entrepreneurial Experience Influence Opportunity Identification

Habitual (experienced) entrepreneurs are an important sub-group of entrepreneurs who make a fundamental contribution to the process of wealth creation in society. They have been associated with the“entrepreneurial mindset” which induces them to passionately seek and exploit the best opportunities. Despite these exceptional qualities, there are conflicting views among financiers as to whether the additional experience possessed by habitual entrepreneurs is an asset or a liability. Furthermore, there has been limited empirical work that has examined how these experienced entrepreneurs identify and exploit opportunities and whether their practices do indeed differ from those of their novice counterparts. This study seeks to address this void by examining the attitudes and behaviors of 773 novice and habitual entrepreneurs who own firms located throughout Great Britain.

The Relationship between Knowledge Transfer, Top Management Team Composition, and Performance: The Case of Science‐Based Entrepreneurial Firms

The increased pressure put on public research institutes to commercialize their research results has given rise to an increased academic interest in technology transfer. We assess under which conditions tacit knowledge transfer contributes to the performance of academic spin–offs. Using an inductive case study approach, our evidence suggests that tacit knowledge is most effectively transferred when a substantial part of the original research team joins the new venture as founders. Commercial expertise and mindset are also required in the team on the condition that the cognitive distance between the scientific researchers and the person responsible for commercialization is not too large.