Willem Hulsink

NETWORKS IN ENTREPRENEURSHIP: THE CASE OF HIGH-TECHNOLOGY FIRMS

The value of networks as an integral part of the explanation of entrepreneurial success is widely acknowledged. However, the network perspective does not specify the role of networks in the emergence and early growth of a venture. We have distinguished three entrepreneurial processes in new venture development, i.e. discovery of opportunities, securing resources, and obtaining legitimacy, which are of importance for survival and performance. This paper examines how these processes are influenced by strong and/or weak ties and whether the degree of innovation (incremental versus radical) acts as a contingency factor in the way network ties support entrepreneurial processes. In this explorative study three cases on high technology firms in The Netherlands provide empirical material enabling us to develop a number of propositions on the network effect, in particular the mix of strong and weak ties, on the three entrepreneurial processes.

Networking by Entrepreneurs: Patterns of Tie—Formation in Emerging Organizations:

There are two conflicting patterns of network development of founding entrepreneurs that emerge from existing literature. One of them evolves from an identity-based network dominated by strong ties into an intentionally managed network rich in weak ties. The other involves the opposite, with weak ties dominating in the emergence phase and some of them developing into strong ties, the latter of which are characteristic of the early growth phase. The empirical part of this study focused on the development of the networks of 32 IT start-ups in The Netherlands, which we constructed on the basis of secondary data sources and in-depth interviews with the founders. We found three distinct patterns of network development. The conflicting patterns from the literature fitted two of our patterns and we were able to reconcile them by showing how initial founding conditions and post-founding entrepreneurial processes influence tie-formation processes. We propose that the simultaneous effect of these tie-formation processes leads to particular development patterns of weak and strong ties over time, highlighting the importance of investigating network processes.

Entrepreneurship Education And Training In A Small Business Context: Insights From The Competence-Based Approach

The concept of competence, as it is brought into play in current research, is a potentially powerful construct for entrepreneurship education and training research and practice. Although the concept has been the subject of strong debate in educational research in general, critical analysis of how it has been used, applied and experienced in entrepreneurship education practice is scarce. This article contributes specifically to the discussion of entrepreneurial competence by theoretically unfolding and discussing the concept. Subsequently, the implications of applying a competence-based approach in entrepreneurship education are illustrated and discussed based on analysis of two cases that were aimed at identifying, diagnosing and eventually developing entrepreneurial competence in small businesses in the Netherlands and Flanders (Belgium). The cases show that the added value of focussing on competence in entrepreneurship education and training lies in making the (potential) small business owner aware of the importance of certain entrepreneurial competencies and in providing direction for competence development. In this process it is fundamental that competence is treated as an item for discussion and interpretation, rather than as a fixed template of boxes to be ticked. Furthermore the cases highlight that a competence-based approach does not completely determine the type of educational and instructional strategies to be used. Its consequential power in that respect is limited.

Entry and Innovation in Maturing Markets: Virtual Operators in Mobile Telecommunications

Abstract In the last few years the mobile telecommunications industry has witnessed the entry of a large number of new service providers. Traditionally, mobile users get their mobile services from the service providers owned by vertically integrated mobile network operators (MNOs). The new entrants do not own a network of their own however, because they use the existing mobile infrastructure, i.e. they are ‘mobile virtual network operators’ (MVNOs). By granting these virtual operators access to their networks, MNOs actually facilitate the entry of potential competitors for their own downstream service providers. These new entrants might attract additional users by offering competitive services and create extra value with their well-known brand names and other complementary assets. This study focuses on the mobile market of the Netherlands, where competition is intense and MVNOs proliferate. The aim of this research is to improve our understanding of the entry of virtual operators in general, and specifically by explaining why and how virtual operators enter the mobile market and the impact they have on competition in the mobile market.

The young, the fast and the furious: a study about the triggers and impediments of youth entrepreneurship

Existing literature argues that young entrepreneurs lack the human, financial and social capital to establish a growing business. Since opportunity costs for them are low, there are also a few triggers for start-up entrepreneurship, which brings us to our research question: What are the triggers for starting a business at a young age and how do young entrepreneurs mitigate the lack of education, experience, knowledge and other critical resources in the start-up process? Twelve entrepreneurs younger than 25 were interviewed, although they clearly lack the human, social and financial capital needed to start a new business, they do not experience this as a disadvantage. Young entrepreneurs deal with these issues by using bootstrapping and effectuation mechanisms to accommodate financial capital constraints and mobilise social support from their parents and other entrepreneurial family members and friends. By taking part in all kinds of small-scale ventures and by being granted access to additional opportunities and introductions to new customers by senior managers of established companies on the basis of their originality, creativity and energy, young entrepreneurs acquire the experiences and the contacts they need for their next entrepreneurial step.

The emergence of national champions in global telecommunications

Abstract Former state-owned companies are preparing for domestic and international competition. A common argument is that in order to compete effectively in the global market public telecom operators (PTOs) must be strong at home and should link up with a few international strategic alliances to survive intense global competition. However, what does being strong at home mean? And how important are these global linkages to increasing a companys and its home nations competitiveness? In the formation of these international alliances and in negotiating access to foreign markets, is support from the home government still important? In this article, we outline four different approaches to domestic restructuring to accommodate the new conditions in the global market. We argue that despite these differences, each country seeks to create a national champion in liberalised telecommunications markets.

New Practices of Farm-Based Community-Oriented Social Care Services in The Netherlands

ABSTRACT. Social care services provided by farmers provide a community-based collaboration that can empower people and improve their quality of life. The objective of this study was to increase understanding of the collaboration between care organizations and farmers. The study involves 4 cases, and all stakeholders involved in the collaboration were interviewed using boundary spanning and the quest of innovative practices for legitimacy as sensitizing concepts. In this study, 2 types of boundary spanners were identified: initiators of collaboration and top-level managers. Successful collaboration expressed by structural implementation of farm-based services in the care organization and the positive reactions of clients, care organizations, and farmers is initiated by committed and strategically operating boundary spanners with different backgrounds. Support from top-level management of the care organizations involved is crucial for overall success. Future research needs to focus on collaboration with other types of newcomers in the care sector, the impact of budget cuts in the social and care domains, and the increasing pressure on participation of service users in society in collaboration processes.

How knowledge flows in university-industry relations: An overview from two economic sectors in Brazil

Purpose – The purpose of this paper is to characterize the knowledge flow between companies and universities based on national and sectoral systems of innovation perspective. It is argued here that high-tech sectors can describe a knowledge flow mainly based on scientific research, while sectors with lower technological impact may establish relations based on technical needs. Design/methodology/approach – A case study research was conducted in the horticulture and aerospace sectors in Brazil. Thirteen interviews were performed with chief executive officer’s and academic researchers from both fields. Findings – Results demonstrated differences in technology development and knowledge infrastructure when comparing both sectors, reflecting the impacts of national and sectoral systems of innovation. The horticulture sector presented technological limitations due to restricted eating habits, logistics, knowledge development at universities and difficulties on the establishment of partnerships between local comp...

The Locus of Innovation in Small and Medium-sized Firms: The Importance of Social Capital and Networking in Innovative Entrepreneurship

Social networks matter in the innovation processes of young and small firms, since ‘innovation does not exist in a vacuum (Van De Ven, 1986: 601).’ The contacts a firm has could both generate advantages for further innovation and growth, and disadvantages leading to inertia and stagnation. In the first case the existing social network or the new business contact provides opportunities furthering eventual success, in the second case, the existing network or the new business contacts turns out to have a constraining or even detrimental effect on performance. The search and use of social capital is driven by goal-specificity: it only includes those ties that help the actor in the attainment of particular goals. Most of the research so far has been deliberately or unwillingly one-sided, by for instance only looking at entrepreneurial firms in dynamic industries (or more specifically, start-ups in the high-tech industries). Or selective attention has been paid to either the internal sources or the external contacts to trigger innovation. And when a conclusive study has been conducted into investigating both the effect of internal and external ties on innovation, the sample often includes large and established companies and managers (instead of entrepreneurs and smaller firms, as what we are interested in). The main line of reasoning in this paper is as follows. In the first section we discuss the key network concepts, such as, social capital, relational embeddedness (strong and weak ties), structural embeddedness (i.e. structural holes). Section two deals with innovation and the central role of knowledge in the discovery and realisation of innovations. Social networks and its potential for knowledge brokering appear to be important and therefore the last section focuses on the relationship between particular network characteristics and innovation.

Boosting Entrepreneurship Education within the Knowledge Network of the Dutch Agri-Food Sciences: The New "Wageningen' Approach

This chapter addresses the politics that have put the concept of the entrepreneurial university and the promotion of entrepreneurialism on the agenda of one particular university, namely Wageningen University & Research centre (and its associated higher education institutes) through the development of a new collaborative teaching and extension program. This contribution concentrates on the joint approach of the Dutch agri-food sector to make their dedicated university, research institutes and universities of applied sciences in this specific domain more entrepreneurial. It assesses the impact and the lessons learned from implementing the DAFNE program and seeks an answer to the following research questions: i) how did the process of establishing an entrepreneurial university evolve in the specific ‘Wageningen’ setting; ii) what was the impact of the new entrepreneurship promotion program DAFNE and what were its learning experiences? We will operationalize the overarching research question by critically evaluating a number of projects that were part of the DAFNE program. Subsequently, we will evaluate what they have contributed to the entrepreneurial curriculum of the partners and the larger support structure for innovation, technology transfer and new business.