Truls Erikson

Intellectual capital: a human capital perspective

In this article, intellectual capital is seen as complementary capacities of competence and commitment. Based on theoretically and empirically robust human capital theory, we define intellectual capital as individuals’ complementary capacity to generate added value and thus create wealth. Resources are then perceived to be both tangible and intangible. This view is an extension of human capital theory to include the intangible capacities of people. Implications for future research are discussed.

Towards a taxonomy of entrepreneurial learning experiences among potential entrepreneurs

In order to become novice, portfolio or serial entrepreneurs, individuals must first establish themselves as nascent entrepreneurs. Hence, the focus of this article is the factors that lead early stage career individuals to choose business venturing rather than any other career path. In this article, taxonomy of entrepreneurial typologies is developed based on determinants of entrepreneurial competence. By employing Wood and Bandura’s (1998) mastery experience, vicarious experience and social experience, eight tentative typologies emerge.

Born Global Firms and Informal Investors: Examining Investor Characteristics

A “Born Global” is a new venture with a global niche market focus from day one. Many of these firms experience high growth rates, but also, a considerable need for funding. This study contrasts informal investors involved in born global firms (“Born Global Investors”) with other informal investors. The underlying thesis is that the behavior of these investors reflects their investment philosophy, at least on a differential basis. The results suggest that born global investors differ from other informal investors in terms of deal origin, investment size, and exit preferences. Their experience as managers of large firms seems to be a particularly important factor, increasing investment capacity (income and fortune), while personal and professional networks influence the access to information about investment opportunities. The importance of these results for the development of born global firms is discussed.

Family Angels vs. Other Informal Investors

This study investigates the differences between family angels and other informal investors in Norway. We employ a portfolio framework as the vehicle for comparison, along with an ad hoc component of involvement. The underlying thesis is that the actual behavior of the investors in Norway should reflect their investment philosophy—at least on a differential basis. The results suggest that family angels differ from other informal investors on several grounds. Family angels have different investment behaviors than other informal investors and they differ somewhat in their exit preferences.

Training programmes as incubators

The point of departure is a temporary university incubator at a European technological university. These incubation programmes are held quarterly, and comprise six parallel developing teams nurturing and qualifying different business ideas into viable business plans. The programme has been successful, in technological, commercial and learning terms. Out of 102 business ideas, at least 57 successful new technology based firms have been created from the incubation programme, and more than 400 students have received significant practical real life hands‐on start‐up experiences, which have resulted in increased start‐up competence and motivation.

BUSINESS ANGEL NETWORKS: A EUROPEAN PERSPECTIVE

This paper highlights the importance of business angel networks, as a tool of stimulating an entrepreneurial culture and small business financing. It also sheds light on current practices and the dimensions of business angels in Europe. A study made in 1998 for the European Commission suggests that the potential for investments by business angels is estimated to be between 10 and 20 billion € [Euro] per year. This can be compared with the 3 million Euro in seed and startup investments made in 1999 by the venture capital industry. A remarkable difference, which deserves further attention.This particular inquiry includes a brief benchmarking exercise on informal private investor networks, known as business angel networks. The background for this study is the underlying thesis that the potential for investments through business angels is insufficiently developed. Implications for policy makers and future research are discussed.

Idiosyncratic portfolio characteristics of seed and venture capital funds

Purpose – The purpose of this paper is to uncover the strategic nature of formal seed capital in Norway as opposed to equally sized venture capital firms.Design/methodology/approach – As the population of Norwegian seed capital firms is embedded in this study, a differential approach is taken when contrasting these seed capital firms with venture capital firms of approximately the same size.Findings – The findings indicate that seed capital firms take higher market risk than their counterparts, and that they diversify to a larger extent than comparable venture capital firms. The latter appears to be a function of the former.Originality/value – This study reviews previous categorizations of seed capital providers, henceforth building towards an overall taxonomy of seed capital.

Entrepreneurship education by design

Purpose – The purpose of this paper is to outline a theoretical platform for a design-based approach to entrepreneurship education grounded in the ideas of the Russian psychologist and linguist Lev S. Vygotsky by reconceptualising the development of entrepreneurial expertise as artefact-mediated activity. This model is elaborated into some core pedagogical principles and contrasted with other approaches to entrepreneurial education. It also describes the piloting of this design perspective in a Master of Science programme in entrepreneurship. Students working as interns in high-tech start-up companies reflected on their practice and learned to learn using a number of artefacts as “scaffolds”. Design/methodology/approach – The empirical base of this paper is an instrumental case study of the pilot programme where the material is subject to documentary and narrative analysis. The master’s theses of the students participating in the new start-up programme were compared with those of students in the regular p...

Preventing dysfunctional conflict: examining the relationship between different types of managerial conflict in venture capital-backed firms

Abstract Prior literature reports mixed results relative to the performance outcomes of different types of conflict in top management teams. These conflicting results may stem from the complex interactions between different types of conflict. To address this gap in existing knowledge, we set out to explore the interactions between task, process, and affective conflict in entrepreneurial teams of venture-backed firms. Our data are based on a survey among 240 firms that received investment from Norwegian venture capital funds with a response rate of 25% (59 firms). Our results show that task conflict is positively related to affective conflict and that this relationship is partially mediated by process conflict. Furthermore, we find that team size moderates the relationship between task and process conflict. Our results provide a potential explanation for the previously reported inconsistent results on the outcomes of different types of conflict and suggest that especially nascent entrepreneurs with small management teams should be wary of all types of conflict – also those labeled as ‘functional’ by the prior literature.

Design Characteristics Associated with Venture Capital Acquisitions in Academic Spin-offs

This dissertation addresses the under-studied area of the role of the top management team (TMT) and board of directors in the development of academic spin-off companies (ASOs) originating from public research institutes. ASO research receives growing attention internationally following the rise in commercialization activities in the vast majority of universities. The studies identify the barriers to and facilitators of ASO formation and growth, which are related to faculty attributes and incentives, university technology transfer policies and practices, and the external environment. Few studies examine the founding team demonstrating that it evolves in to a TMT and board during legal incorporation and that the TMT heterogeneity has significant performance consequences. Even fewer studies investigate the board in ASOs. This is surprising since well-networked outside directors may contribute to ASO development by increasing a firm’s legitimacy and thus reducing liabilities of newness and providing access to critical external resources that young ASOs need to survive. In this dissertation I therefore contribute by addressing this research gap and I explore the board formation and changes in board composition and try to relate these changes to the development stages of an ASO. Given limited prior research on board dynamics I employ an inductive multiple case research design. I also examine the role of the board in accessing needed external managerial resources and how the board and TMT themselves can be valuable resources that help an ASO to achieve the important entrepreneurial milestone of acquiring venture capital. For these studies the data on 135 ASOs in Norway are collected and analyzed using logistic regression. I find that the dynamics of the development stages in an ASO is related to the dynamics of its board. In successful ASOs the board contribution is dynamic. The board chair’s social networks seem to be essential when attracting key members to the board of an ASO. Key board members bring in needed resources that the TMT lacks, ranging from finance and industry experience in earlier stages to executive and marketing/sales experience in later development stages. Thus, they help an ASO to prove a venture’s viability and approach a stage of sustainable returns. Board size and networking appear to be important when recruiting new TMT members with necessary competences who open for new growth opportunities. ASOs that have value adding boards and TMT members with diverse functional and industry backgrounds succeed in recruiting new team members and acquiring venture capital. The likelihood of attracting venture capital increases if ASOs have previously managed to receive seed capital and support from industrial partners.