Ebook Entrepreneurship: The engine of growth ( Volume 3: Place)

Ebook Entrepreneurship: The engine of growth ( Volume 3: Place), edited by Mark Rice and Tim Habbershon, examines place. In this volume and in the literature, place refers to a wide and diverse range of contextual factors that influence the entrepreneur and the entrepreneurial process. We represent these contextual factors as a series of concentric circles ranging from environmental and global forces, to national and regional policies,... Đề tài Hoàn thiện công tác quản trị nhân sự tại Công ty TNHH Mộc Khải Tuyên được nghiên cứu nhằm giúp công ty TNHH Mộc Khải Tuyên làm rõ được thực trạng công tác quản trị nhân sự trong công ty như thế nào từ đó đề ra các giải pháp giúp công ty hoàn thiện công tác quản trị nhân sự tốt hơn trong thời gian tới.

ENTREPRENEURSHIP The Engine of Growth Volume PLACE Mark P Rice and Timothy G Habbershon Edited by PRAEGER PERSPECTIVES Library of Congress Cataloging-in-Publication Data Entrepreneurship : the engine of growth / edited by Maria Minniti [et al.] p cm Includes bibliographical references and index ISBN 0-275-98986-0 (set: alk paper)—ISBN 0-275-98987-9 (vol 1: alk paper)— ISBN 0-275-98988-7 (vol 2: alk paper)—ISBN 0-275-98989-5 (vol 3: alk paper) Entrepreneurship I Minniti, Maria HB615.E636 2007 338'.04—dc22 2006028313 British Library Cataloguing in Publication Data is available Copyright # 2007 by Mark P Rice and Timothy G Habbershon All rights reserved No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher Library of Congress Catalog Card Number: 2006028313 ISBN: 0-275-98986-0 (set) 0-275-98987-9 (vol 1) 0-275-98988-7 (vol 2) 0-275-98989-5 (vol 3) First published in 2007 Praeger Publishers, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc www.praeger.com Printed in the United States of America The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48-1984) 10 Contents Preface vii Introduction ix Mark P Rice and Timothy G Habbershon Entrepreneurship as Organizing: Emergence, Newness, and Transformation William B Gartner and Candida G Brush Managing Growth through Corporate Venturing 21 Ian MacMillan and Rita Gunther McGrath Assessing the Context for Corporate Entrepreneurship: The Role of Entrepreneurial Orientation 49 G T Lumpkin, William J Wales, and Michael D Ensley The Family as a Distinct Context for Entrepreneurship 79 Timothy G Habbershon Franchising 99 Stephen Spinelli Jr From Intentions to Venture Creation: Planned Entrepreneurial Behavior among Hispanics in the United States Erick P C Chang, Franz W Kellermanns, and James J Chrisman 119 vi CONTENTS The Sociology of Entrepreneurship as a Provider of Context 147 Patricia Gene Greene and John Sibley Butler New Venture Creation and Economic Transition: The Case of Slovenia 163 Richard T Bliss and Lidija Polutnik Public Policy and Enhancing Entrepreneurial Capitalism 191 Laurence S Moss 10 Why Entrepreneurship Is a Regional Event: Theoretical Arguments, Empirical Evidence, and Policy Consequences 215 Rolf Sternberg and Hector O Rocha 11 Public Policy as an Enabler or Inhibitor of Entrepreneurship: The Case of Sarbanes-Oxley 239 Elaine J Eisenman, Mark P Rice, and Paul Severino 12 Financing the High-Growth Entrepreneurial Venture: A Public Policy Perspective 263 James Henderson, Benoit Leleux, and Augusto Ruperez Micola 13 Technology-Driven Entrepreneurship: Muddling through and Succeeding with the Second Product 291 Scott L Newbert, Steven T Walsh, Bruce A Kirchhoff, and Victor A Chavez Index 313 About the Set Editors 321 About the Contributors 325 Preface The editors of this three-volume set are pleased to present readers with insight into the field of entrepreneurship by some of the leading scholars around the world Babson College, the home institution for all the editors, has been a leader in entrepreneurship education for over thirty years and is recognized by many leading publications as the top school for teaching entrepreneurship at both the MBA and undergraduate levels (thirteen years running by U.S News and World Report) Since 1999, Babson College, in conjunction with the London Business School, has led the Global Entrepreneurship Monitor (GEM) research project GEM assesses the state of entrepreneurship activity across more than forty countries around the world (comprising two-thirds of the world’s population and over 90 percent of the world GDP), and has shown that entrepreneurship can be found in all economies and that almost percent of the adult population is actively attempting to launch a new venture at any given time.1 While the percentages vary by country, GEM illustrates the importance of entrepreneurship and provides context as we try to better understand the entrepreneurial phenomenon We have compiled three volumes focusing on entrepreneurship from three different perspectives: people, process, and place Volume 1, edited by Maria Minniti, looks at the intersection of people and entrepreneurship Taking a broad view of entrepreneurship as a form of human action, chapters in this volume identify the current state of the art in academic research with respect to cognitive, economic, social, and institutional factors that influence people’s behavior with respect to entrepreneurship Why people start new businesses? How people make entrepreneurial decisions? What is the role played by the social and economic environment on individuals’ decisions about entrepreneurship? Do institutions matter? Do some groups of people such as immigrants and women face particular issues when deciding to start a business? The volume addresses these viii PREFACE and other questions Each chapter provides an extensive bibliography and suggestions for further research Volume 2, edited by Andrew Zacharakis and Stephen Spinelli, examines the entrepreneurial process The book proceeds through the lifecycle of a new venture start-up Chapter authors tackle several key steps in the process, ranging from idea, to opportunity, team building, resource acquisition, managing growth, and entering global markets These chapters identify the current state of the art in academic research, suggest directions for future research, and draw implications for practicing entrepreneurs What is clear from this volume is that we have learned a tremendous amount about the entrepreneurial process, especially over the last fifteen years This deep insight leads us to ask more questions and suggest new research to answer these questions This learning is also applied in the classroom and shared in this book so that students and entrepreneurs can assess best practices Volume 3, edited by Mark Rice and Tim Habbershon, examines place In this volume and in the literature, place refers to a wide and diverse range of contextual factors that influence the entrepreneur and the entrepreneurial process We represent these contextual factors as a series of concentric circles ranging from environmental and global forces, to national and regional policies, industries and infrastructures, to cultural communities, families, and organizational forms Chapters in this volume address entrepreneurship in the context of the corporation, family, and franchise We provide insights on ethnicity and entrepreneurship in the U.S Hispanic, Slovenian, and German context We look at the impact of public policy and entrepreneurship support systems at the country and community level, and from an economic and social perspective We also examine the technology environment and financing support structures for entrepreneurship as context issues By placing this array of contextual factors into an ecosystem perspective, we show how entrepreneurship is a complex input–output process in which people, process, and place are constantly interacting to generate the entrepreneurial economy It is our hope that the chapters spur the reader’s interest in entrepreneurship, that the academic who is new to entrepreneurship will see an opportunity to enter this field, and that those who are already studying this phenomenon will see new questions that need investigation We hope that practitioners and students will glean best practices as they work in entrepreneurial ventures and that the prescriptions within these chapters will help them succeed We also think that these volumes can help policymakers get a firmer grasp on entrepreneurship and the potential it has to spur economic growth within a country, state/province, and town Entrepreneurship operates in an ecosystem that is reliant upon all the audiences of these volumes As we gain better understanding of the ecosystem, we all benefit NOTE M Minniti, W Bygrave, and E Autio, Global Entrepreneurship Monitor: 2005 Executive Report (Boston, MA: Babson College and London Business School, 2006) Introduction Mark P Rice and Timothy G Habbershon The entrepreneur starts and builds a new venture within a particular place In this opening sentence, we see the inevitable linkage of people, process, and place While the three volumes in the Praeger series on entrepreneurship recognize different aspects of entrepreneurship, we would not want to connote that they are independent of one another, or that they can be somehow separated In fact, throughout this volume, reflections on place inevitably reference people and processes, and highlight their reciprocal interaction with place Adding to the complexity, place does not have a singular or static meaning Within the literature and this volume, place refers to environmental factors, societies and cultures, mode and organizations, communities, arenas, policies, and structures In order to fully understand the rich phenomenon that we refer to as entrepreneurship, we cannot constrain the definition of place, but rather we must identify the full range of contextual factors that interact with the entrepreneur and entrepreneurial process.1 PLACE AS AN INPUT–OUTPUT MODEL Generally the entrepreneur does not start with all the elements for success fully assembled The place in which the entrepreneur operates is the source from which the entrepreneur accesses or acquires the elements that enable the venture to build the capacity, and to deliver value to its marketplace Typically, after a start-up and ramp-up period of capacity building, the venture—if it is to survive and succeed—must achieve at least breakeven, with respect to the resources it accesses or acquires from within its place, and the value it delivers to the stake- x INTRODUCTION holders that provide those resources The rates of acquisition and value delivery may vary over time, creating periods of decline, stability, or growth in the venture The place in which the entrepreneur chooses to start his/her endeavor significantly impacts the trajectory of these outcomes This idea of the flow of resources—the acquisition of resources by the entrepreneur and the delivery of value to the environment—is fundamental to the entrepreneurial process It can be characterized as an input–output model The external environment as well as the venture itself inputs various resources that are transformed through the entrepreneurial process into outputs that are delivered back to the external environment Typically, during the start-up phase of an entrepreneurial venture, the resources acquired exceed the value of the products or services delivered by the venture to its customers In the longer run, however, the entrepreneur must establish a business model in which the value created equals or exceeds the resources consumed in order to achieve sustainability The munificence of the place in which the entrepreneurial process operates can vary substantially, with munificence reflected in the quantity and quality of resources, as well as the relative ease with which they can be accessed Because it is individual actors that engage in the process (e.g., entrepreneurs, intermediaries, service providers, investors, early adopters, and so forth), the skill level of each of these actors also plays a critical role in determining the rate of entrepreneurial success Referencing the skill levels of actors also speaks to the educational and support services associated with place, and how they reciprocally function as an enhancer or detractor of inputs and outputs This input–output resource model is implicitly or explicitly evident in the descriptions and definitions of entrepreneurship Schumpeter argued that entrepreneurship is creative destruction, as resources are shifted to points of entrepreneurial value creation Dynamic disequilibrium, brought on by the entrepreneurial process, rather than equilibrium and optimization, is the norm of a healthy economy, and the central reality of economic theory and practice.2 Drucker states that entrepreneurs are the drivers of this disequilibrium, as they search for change, respond to it, and exploit it as an opportunity.3 Howard Stevenson has proposed that ‘‘entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.’’4 He emphasizes that the entrepreneur must be adept at gaining access to and utilizing resources, rather than controlling and allocating them The Timmons model operationalizes the entrepreneurial process by demonstrating how the interacting elements of the entrepreneur, resources, and opportunity create the input–output system.5 Thus, the earlier macro- to microreflections on the concept of entrepreneurship and the allocation of resources further highlight the connections among the entrepreneur, the entrepreneurial process, and the environmental context in which the entrepreneur operates Place, as entrepreneurial context, is therefore, a significant inhibitor or accelerator of the entrepreneurial process, depending upon the effectiveness and efficiency of the interactions in the input–output model INTRODUCTION xi IDENTIFYING THE CONTEXTUAL FACTORS Contextual factors associated with place can be identified as a series of concentric circles, ranging from global forces to national and regional infrastructures, to cultural families and organizational forms Though often interrelated, contextual factors can be practically viewed from external and internal perspectives External Perspective









Global connectivity Governmental infrastructure, public policy and regulations Regional and national macroeconomic conditions Regional and national education and support systems Populations, cultures, and societies of people Communities, clusters, and niches of organizations and services Sophistication and readiness of customers Outside sources and sophistication of risk capital for new venture Industry conditions, stage, and globalization Product and market life stage.6 Internal Perspective







Organizational forms and modes of doing business Organizational processes, systems, and structures Business life cycle and stage of development Organizational culture and mindset Inside sources and sophistication of capital for corporate venture Stakeholder relationships and networks Market channels and outlets Entrepreneur and team experience AN ECOSYSTEM PERSPECTIVE In order to explain how the contextual factors create an input–output model, a number of writers have recognized the concept of the entrepreneurship ecosystem, at all economic levels––from micro to macro.7–9 Zacharakis, Shepherd, and Coombs, for example, suggest that industries and subindustry contexts could be characterized as an ecosystem with various relationships of interdependence.10 Aldrich and Martinez suggest that communities are a ‘‘set of coevolving organizational populations’’ that are joined by ties of commensalisms and symbiosis.11 They describe how new ventures can relate to populations that share xii INTRODUCTION the same niche by competing or cooperating (commensalisms), or if they have different niches they can benefit from each other’s presence (symbiosis).12 A common thread in ecosystem models is that different regions have characteristics that attract resources necessary for innovation and economic development, and their characteristics vary from region to region Thus, the characteristics of a certain entrepreneurial context may be more supportive of a certain kind of entrepreneurial activity, which in turn attracts entrepreneurs interested in that kind of entrepreneurial activity as well as the resources they need Systemically, the entrepreneurs and resources that are attracted to a region then become part of the ecosystem, leveraging and enhancing the original context Lambkin and Day noted that there are a great variety of organizational forms, and that some forms are more favored than others in certain environments.13 As in all ecosystem models, the organizational strategies and forms that the entrepreneur employs must match the ecological conditions, if they are going to find an advantage within the ecosystem.14 The ecosystem model implies that place must be considered to be dynamic rather than static An evolutionary approach has often been used to describe how the environment for entrepreneurs is constantly changing Within this biological model, new opportunities are created for expansion and founding of organizations, as a result of the environmental changes These changes result in new resource sets that are available within the entrepreneurial ecosystem.15 As entrepreneurs match their strategy with the evolving environment, they add new enterprises and further the overall economic progress of the ecosystem DELINEATING CONTEXTUAL CONTRIBUTIONS In order to more fully understand the importance of place, we will continue to delineate some of the contributions that context makes to the entrepreneur and entrepreneurial process The chapters in this volume further amplify on many of them We can outline these contributions as follows:









Supply of entrepreneurs Sources of intellectual property (IP) Conditions around failure Extent of transaction costs Rate of adoption Effectiveness of service providers Function of intermediaries Availability of risk capital Posture of public policy Opportunity for training and education 318 Monsanto, 297 Motorola, 297 NASDAQ, 282 National Bank of Yugoslavia, 175 National Business Incubation Association (NBIA), xviii, 302, 311 n.53 National Football League, 304 National Hockey League, 304 National Venture Capital Association, 244–45 Negro as Capitalist, The (Harris), 152 Negro Business and Business Education (Pierce), 152 Negro in Business, The (Washington), 152 Netherlands, 264, 276 networks: regional, 92–93 Neuer Markt, 282 New Jersey Business Incubation Network, 302 New Jersey Institute of Technology (NJIT), 302 New Zealand, 264, 276 Nissan, 38 Nokia, 38 Nordstrom’s, 80 North Korea, 200, 276 Norway, 264, 276 Nouveau Marche´, 282 Nova Kreditna Banka Maribor, 180 Nova Ljubljanska Banka, 180 NutraSweet, 297 Occupational Safety and Health Administration, xvii one-off entrepreneurship, 82 opportunities: decision making, 88–89; identification, 291; insight bursting, 88; seeking, 87–88 opportunity entrepreneurship: TEA rate, 223 ordinary least squares (OLS) regression, 128–29, 130 organizational entrepreneurship, 1–20, 88–89; challenges, 4; cycles of entrepreneurial activity, 2; emergence, 2–4; emergence-newness-transformation INDEX categorization, 8, 11; empirical emergence articles, 7–8; empirical newness articles, 9–11; empirical transformation articles, 12–13; framework, 8; literature review, 7–13; newness, 4–5; organizational change, 5; organizational foundings, 3; organizing type by level of analysis, 13; process, 1–2; punctuated equilibrium, 5; transformation, 5–6 Organization Science (OS), orientation: long-term, 64 Otis, Elisha G., 192, 210 n.7 ownership rights, 166 Pakistani-Ismailis, 155 Palmisano, Sam, 39 partnerships: family, 83 patents, 205–6 patient capital, 91 pensions: reform, 181 perceived desirability, 128, 136–37 perceived feasibility, 128, 137 Pierce, Joseph, 152 Pizza Hut, 108 place, ix–xxv; as an input-output model, ix–x; contextual factors identification, xi; delineating contextual contributions, xii–xviii; ecosystem perspective, xi–xii Poland, 188 nn.52, 53, 276; small and medium enterprises in, 173 policymakers: sociology of entrepreneurship and, 157–58 potency, 52–53 power distance, 64 prelaunch See organizational entrepreneurship preorganization See organizational entrepreneurship privatization: enterprise restructuring and, 170–72, 178–80; entrepreneurial capitalism and, 194 proactiveness, 50 Promise Keepers, 304 property rights, 166, 206 Protestant Ethic and the Spirit of Capitalism, The (Weber), 154 INDEX public policy, xxii, 163–90; entrepreneurial capitalism and, 191–214; posture of public policy, xvii; regional entrepreneurship, xxii, 215–37 See also risk capital; Sarbanes-Oxley race: sociology of entrepreneurship and, 151–53 Race, Self-Employment and Upward Mobility (Bates), 153 Raytheon, 42 regional entrepreneurship, 215–37; causes and effects of start-up activities, 217; empirical evidence, 220–27; policy implications, 227–31; regional-sectoral clusters, 218–19, 227; theoretical arguments, 216–20 Regional Entrepreneurship Monitor (REM), xxii, 215–16, 220 regional-sectoral clusters, 218–19, 227 relational exchange theory, 105–6 religion: sociology of entrepreneurship and, 154–55 resource-based view (RBV), 59 Riegel, Dickey, 295–96 risk capital, xvi–xvii, xxiii, 263–90; boundaries, 265–66; entrepreneurship policy for entrepreneurial finance, 284–87, 288 n.32; market/government failures and sources of entrepreneurial finance, 270–84; theory of market and government failures and application to entrepreneurial finance, 266–70 See also public policy risks: availability of risk capital, xvi–xvii; capital, xxii See also risk capital risk-taking: in entrepreneurial capitalism, 210 n.7 rule of law, 204–8 Rules of Sociological Method, The (Durkheim), 150 Russia, 168, 191, 208 S C Johnson Company, 80 Sakharov, Andrei, 191 Sarbanes-Oxley (SOX) Act, xvii, xxiii; advantages, 248; Class Action Sarbox, 319 246; financial challenges, 241–42; impact on growth and exit strategy challenges, 245–47; implications for public companies, 241; leadership challenges, 242–45; opportunities, 248–51; parameters, 240; survey, 251–61 See also public policy Schumpeter, Joseph A., 147–48, 193, 294 Scottish Enterprise, Scotland Economic Development Board, 273 Searle, 297 SEC regulations, 239 Securities Act of 1933, 241 Service Core of Retired Executives (SCORE), 239 service delivery system (SDS), 100; establishing, 110–11; financial structure, 112 Service Master, 100 service providers: effectiveness, xv sex/gender: sociology of entrepreneurship and, 156–57 Shalam, John, 241, 242 shared vision, 53 Silicon Valley, xiii, 230 Simmel, Georg, 147–48, 153 Six Sigma, 25 Slovenia, xxii, 163–90; banking practices, 175–76; independence, 175; intercompany payments, 189 n.59; legal reforms, 175, 188 n.54 small and medium enterprises (SMEs), 168 Small Business Administration, xvi Small Business Association Office of Advocacy, 242 Small Business Development Center (SBDC), 124, 128 Small Business Innovation Research (SBIR), 301–2 Small Business Innovative Research Act, xvi Small Business Innovative Research Programs, 239 Small Business Technology Transfer Research (STTR), 302 Smart Bug Corporation, 303–5 Snap-On Tools, 100 socialization, 40 320 sociology, of entrepreneurship, 147–61; categories, 149; definitions, 148–50; ethnicity and, 153–54; implications for practitioners and policymakers, 157–58; race and, 151–53; religion and, 154–55; sex/gender and, 156–57; theoretical foundations, 150–51 solidarity, 105–6 SOX See Sarbanes-Oxley Act Spain, 81, 264, 265, 276 Spencer Stuart Board Index Review, 249–50 start-up See organizational entrepreneurship state-owned enterprises (SOEs), 163, 194; characteristics, 171 Sternberg, Rolf, 220 Strategic Management Journal (SMJ), subjective community norms, 128, 136 Sun Microsystems, 281 Sun Oil Company, 81 Swanson, Robert, 305 Sweden, 264, 276 Switzerland, 264, 276 tax code, 167 Taylor, John B., 199 teams: team building, 91 See also top management teams technology-driven entrepreneurship, xxiii, 291–312, 311 n.53; case examples, 303–8; context, 300–303; models, 293–300; opportunity, 292–93 termination, 41–44 Termini Bros bakery, 81 Texas Instruments, 42 third-world countries, 196–97, 207 See also individual country names Thomas, Dave, 110–11 3M, 25, 30, 38 top management team (TMT), 49, 67; autonomy, 50; cohesion, 53; competitive aggressiveness, 50; conflict management, 53; context, 50–54; innovativeness, 50; potency, 52–53; proactiveness, 50; shared vision, 53 INDEX total entrepreneurial activity rate (TEA), 221–27 total factor productivity (TFP), 179–80 Toward a Theory of Minority Group Relations (Blalock), 151 trademark, 100; protection, 206 transaction analysis: franchising and, 111–12; sample list, 111 transition economics, 164–72; corporate governance, 168–70; institutional reforms, 166–68; privatization and enterprise restructuring, 170–72; tasks, 185; transition process, 164–66 Tyson Food, 80 uncertainty avoidance, 64 United Kingdom, 264, 276, 283 United Nations Development Program, xvi University of Cologne, 220 University of Luăneburg, 220 venture capital (VC), 266; for technologydriven entrepreneurship, 300–301 venture financing, 90–91 ventures: coping, 37–38; creation, 125–27, 163–90; focus, 335; managing, 35–38; new, 81; renewal processes, 40–41 voting, 197 Wagner, Joachim, 220 Walgreen, 80 Wall Street Journal, 246 Washington, Booker T., 152 Weber, Max, 147–48, 154 West Africa, 201 Winfrey, Oprah, 152 women: as entrepreneurs, 156 World Bank, 181 World Economic Forum (WEF), 181 World Trade Organization (WTO), 202 Wrigley, 80 Yeltsin, Boris, 201 Yozma government, 283 Yugoslav Republics, 173 About the Set Editors Timothy G Habbershon is Founding Director of the Institute for Family Enterprising at Babson College, where he holds the President’s Term Chair in Family Enterprising, developing Babson’s emphasis on family-based entrepreneurship Additionally, he is a founding partner in The TELOS Group, providing transition and strategy consultations to large family firms worldwide Formerly, Tim was the founding director of family business programs in the Snider Entrepreneurship Center at the Wharton School of the University of Pennsylvania and in the Freeman Institute for Rural Entrepreneurship in the School of Business, University of South Dakota Tim presents executive education programs to family ownership and management teams on entrepreneurial strategy and relationships issues through universities around the world His research on family business has appeared in such journals as the Journal of Business Venturing, Family Business Review, and Entrepreneurship Theory and Practice He has a regular column—Family, Inc.—in BusinessWeek’s Small Biz magazine, and has been cited in the Financial Times, Newsweek, and the New York Times Prior to moving into entrepreneurship, Tim was a minister in the Presbyterian Church, where he started churches Maria Minniti is Professor of Economics and Professor of Entrepreneurship at Babson College She has published numerous articles on entrepreneurship, economic growth and complexity theory, as well as book chapters and research monographs Her articles have appeared in such publications as the Journal of Economic Behavior and Organizations, Small Business Economics, the Journal of Business Venturing, Small Business Economics Journal, Comparative Economics Studies, and Entrepreneurship Theory and Practice Dr Minniti is the Research Director of the Global Entrepreneurship Monitor (GEM) project and an associate 322 ABOUT THE SET EDITORS editor of the Small Business Economics Journal She is currently working on a book about entrepreneurial behavior Mark P Rice is the Murata Dean of the F W Olin Graduate School of Business and the Jeffry A Timmons Professor of Entrepreneurial Studies at Babson College His research on corporate innovation and entrepreneurship has been published widely in academic and practitioner journals, including Organization Science, R&D Management, the Journal of Marketing Theory and Practice, IEEE Engineering Management Review, Academy of Management Executive, and California Management Review Dean Rice has been a director and chairman of the National Business Incubation Association, which honored him in 1998 with its Founder’s Award, and in 2002 he received the Edwin M and Gloria W Appel Entrepreneurship in Education Prize He is co-author of Radical Innovation: How Mature Companies Can Outsmart Upstarts, and, with Jana Matthews, of Growing New Ventures, Creating New Jobs: Principles and Practices of Successful Business Incubation (Quorum, 1995) Stephen Spinelli Jr is Babson College’s Vice Provost for Entrepreneurship and Global Management An Associate Professor, Spinelli holds the Paul T Babson Chair in Entrepreneurship and the Alan Lewis Chair in Global Management In his role as Vice provost, Spinelli is responsible for developing entrepreneurship initiatives within the college and for extending Babson’s entrepreneurial brand worldwide A recognized leader in defining the field of entrepreneurship, prior to his academic career he cofounded Jiffy Lube International and subsequently founded and served as Chairman and CEO of American Oil Change Corporation, which he sold in 1991 As an educator, he has researched, written, and lectured extensively on various aspects of entrepreneurship His work has appeared in such publications as the Journal of Business Venturing and Frontiers of Entrepreneurship Spinelli has also been featured in the popular press such as the Wall Street Journal, Financial Times, the Boston Globe, Entrepreneur, and Inc He has authored numerous business cases and recently coauthored the following books: Business Plans That Work, Franchising: Pathway to Wealth Creation, and New Venture Creation Spinelli has consulted for major corporations such as Fidelity Investments, Intel Corporation, IBM Corporation, and Allied Domecq He has served in leadership roles for a number of community, business, and professional associations He is cofounder and codirector of the Babson/Historically Black Colleges and Universities Consortium, a partnership dedicated to improving the quality, quantity, and longevity of African American businesses He is a fellow of the PriceBabson College Fellows Program Andrew Zacharakis is the John H Muller Jr Chair in Entrepreneurship at Babson College, where he previously served as Chair of the Entrepreneurship Department and Acting Director of the Arthur M Blank Center for Entrepreneurship In addition, Zacharakis was the President of the Academy of Management, ABOUT THE SET EDITORS 323 Entrepreneurship Division, from 2004 to 2005 He has also served as an associate editor of the Journal of Small Business Management since 2003 Zacharakis’s primary research areas include the venture capital process and entrepreneurial growth strategies Zacharakis is the coeditor, with William Bygrave, of The Portable MBA in Entrepreneurship, Third Edition, and coauthor, with Jeffrey Timmons and Stephen Spinelli Jr., of Business Plans That Work and How to Raise Capital Zacharakis has been interviewed in newspapers nationwide, including the Boston Globe, the Wall Street Journal, and USA Today He has also appeared on Bloomberg Small Business Report and been interviewed on National Public Radio Zacharakis has taught seminars to leading corporations, such as Boeing, Met Life, Lucent, and Intel He has also taught executives in countries worldwide, including Spain, Chile, Australia, China, Turkey, and Germany Professor Zacharakis actively consults with entrepreneurs and small business start-ups His professional experience includes positions with the Cambridge Companies (investment banking/venture capital), IBM, and Leisure Technologies About the Contributors Richard T Bliss is Associate Professor and Chair of the Finance Division at Babson College He specializes in the areas of corporate financial strategy, risk management, entrepreneurial finance, and transition economies Prior to coming to Babson, Dr Bliss was on the faculty at Indiana University, and he also taught extensively in Central and Eastern Europe, including the Warsaw School of Economics, Warsaw University, and the University of Ljubljana in Slovenia He has developed and delivered customized corporate training programs for Lucent Technologies, Irving Oil, the Slovak American Enterprise Fund in Bratislava, Slovakia, the Foundation for the Establishment of the Futures Exchange in Warsaw, and Bright China Management Institute in Beijing His research in corporate finance, entrepreneurship, developing economics, and banking has been published in the Journal of Financial Economics, Derivatives Quarterly, Industrial Relations Journal, and The Journal of Small Business Management, among others He has also written numerous case studies in the areas of corporate financial strategy and risk management His industry experience includes time with Touche Ross & Company in New York as a consultant, and senior financial positions at Van Camp Seafood Company in St Louis Candida G Brush is Chair of the Entrepreneurship Division, holds the President’s Chair in Entrepreneurship and a Professor of Entrepreneurship at Babson College, Wellesley, MA She is well known for her pioneering research in women’s entrepreneurship Prof Brush conducted the first and largest study of women entrepreneurs in the early 1980s Her current research investigates formation and resource acquisition of emerging organizations and growth strategies of innercity ventures She is a cofounder of the Diana Project which investigates growthoriented women-owned businesses, and coauthored a book on the topic, Clearing 326 ABOUT THE CONTRIBUTORS the Hurdles: Women Building Growth Businesses, published by Prentice HallFinancial Times in May 2004 John Sibley Butler holds the Gale Chair in Entrepreneurship and Small Business in the Graduate School of Business (Department of Management) and the Herb Kelleher Chair in Entrepreneurship at the University of Texas, Austin He also serves as Director of the Herb Kelleher Center for Entrepreneurship and the Director of the Institute for Innovation and Creativity (IC2) His research is in the areas of organizational behavior, entrepreneurship/new ventures, and immigrant and minority entrepreneurship For several years he has occupied the Distinguished Visiting Professor position at Aoyama Gakuin University in Tokyo, Japan, lecturing on new venture start-ups and general entrepreneurship Prof Butler has served as a consultant for many firms and the U.S Military, and his research has been featured in the Wall Street Journal, the New York Times, the Chicago Tribune, Time Magazine, U.S News and World Report, and many other publications His books include Entrepreneurship and Self-Help among Black America, All That We Can Be: Black Leadership and Racial Integration the Army Way (with Charles C Moskos, Winner of the Washington Monthly Best Book Award), Immigrant and Minority Entrepreneurship (with George Kozmetsky), and Forgotten Citations: Studies in Community, Entrepreneurship, and Self-Help among Black-Americans (with Patricia Gene Greene and Margaret Johnson) Erick P C Chang is a PhD candidate in Management at Mississippi State University He has published an article in Family Business Review and presented papers at regional and national conferences, including the Academy of Management His research interests are entrepreneurship and economic development, family business, and corporate entrepreneurship Victor A Chavez is Manager of the Small Business Advocacy Programs for Sandia National Laboratories Mr Chavez is responsible for the development and implementation of a training program for aspiring entrepreneurs He is also responsible for developing and implementing a mentor-prote´ge´ program for smallbusiness suppliers and partners Mr Chavez has been instrumental in establishing processes and procedures for the Cooperative Research and Development Agreements (CRADA) program at Sandia Mr Chavez has received numerous awards, including the Distinguished Service Award from the Federal Laboratory Consortium Mid-Continent Region, Appreciation award from the Department of Energy for his support of the small-business community, and the Sandia National Laboratories President’s Quality Award James J Chrisman is Professor of Management at Mississippi State University He holds a joint appointment as a research fellow with the Centre for Entrepreneurship and Family Enterprise at the University of Alberta and is an editor of ABOUT THE CONTRIBUTORS 327 Entrepreneurship Theory and Practice His research interests include family business, entrepreneurship, and corporate entrepreneurship Elaine J Eisenman is Dean of Babson Executive Education Dr Eisenman has held senior executive positions at American Express, Enhance Financial Services Group, Inc., The Children’s Place, PDI International, and Management & Capital Partners For the past nine years, Dr Eisenman served on the Board of UST chairing the compensation committee for a number of years She has also served on a wide number of private and not-for-profit boards and advisory boards including HRLogic, a Fidelity Capital start-up, Center for Creative Leadership, DownLite, Metrohome, AIESEC, the Belizean Grove, Women Corporate Directors, and the Irvington Children’s Center Dr Eisenman is currently coauthoring a book titled I Didn’t See It Coming: How to Reach the Top Without Being Blindsided, to be published by John Wiley & Sons in 2007 Her article ‘‘Power in the Post-Sarbanes Oxley Boardroom’’ was published in the June 2005 edition of Directorship She is a frequent speaker on corporate governance issues, focusing on boardroom dynamics and the role of the compensation committee Michael D Ensley is Associate Professor in the Lally School of Management and Technology, Rensselaer Polytechnic Institute, where he teaches courses in entrepreneurship, new venture finance, research methods, and technology transfer His research has been published in the Journal of Applied Psychology, Journal of Organizational Behavior, and the Journal of Small Business Management, among other outlets, and he presents frequently at international and national conferences He has written a textbook and a scholarly book on the impact of new venture teams on firm performance His current research interests focus on the assessment of new venture teams by angels and venture capitalists, the creation of clear typology of regional economies for economic development, and the validation of several scales important to future research William B Gartner is the Arthur M Spiro Professor of Entrepreneurial Leadership at Clemson University He is one of the cofounders of the Entrepreneurship Research Consortium, which initiated, developed, and managed the Panel Study of Entrepreneurial Dynamics (PSED) He was the lead editor of The Handbook of Entrepreneurial Dynamics, which provides an overview of the PSED research project He is the 2005 winner of the FSF-NUTEK Award for outstanding contributions to entrepreneurship and small business research He has also won awards from the Academy of Management, Entrepreneurship Theory and Practice, and the Babson-Kauffman Entrepreneurship Research Conference; and has been funded by the Kauffman Foundation, Coleman Foundation, U.S Department of Education, Small Business Foundation of America, the Corporate Design Foundation, and the National Endowment for the Arts His research on nascent entrepreneurs explores how they find and identify opportunities, recognize and solve start-up 328 ABOUT THE CONTRIBUTORS problems, and undertake actions to successfully launch new ventures He is also collecting and analyzing the stories entrepreneurs tell about their entrepreneurial adventures Patricia Gene Greene is the Provost at Babson College Her research interests are the identification, acquisition, and combination of entrepreneurial resources, particularly by women and minority entrepreneurs and she has been widely published in the academic literature She is a founding member of the Diana Project, a research group focusing on women and the venture capital industry Her latest book is an edited volume from the Diana Project, International Women’s Entrepreneurship: Research on the Growth of Women-Owned Businesses James Henderson is Associate Professor of Strategic Management at Babson College His research interests include learning and strategic decision making, corporate strategy, cluster development, and industry restructuring Prof Henderson’s most recent academic research has focused on supply chain management, cluster development, flexibility versus commitment, corporate governance, and corporate venturing issues He has authored numerous articles that have appeared in the Academy of Management Best Paper Proceedings, Journal of Business Venturing, Strategic Management Journal, Frontiers of Entrepreneurship, Strategic Management Society Book Series, and as book chapters He is also the coeditor of Restructuring Strategy (Blackwell, 2005) with Karel Cool and Rene´ Abate He has been appointed to the editorial board of the Strategic Management Journal as well as the Annual Conference on Corporate Strategy Franz W Kellermanns is Assistant Professor of Management in the College of Business and Industry at Mississippi State University His current research interests include strategy process and entrepreneurship, with a focus on family firms as well as technology acceptance research His research has appeared in publications such as the Journal of Management and Entrepreneurship Theory and Practice, and in many book chapters He is the coeditor of Innovating Strategy Process in the Strategic Management Book Series Bruce A Kirchhoff is Distinguished Professor of Entrepreneurship and Director of the Technological Entrepreneurship Program at New Jersey Institute of Technology in Newark, NJ His prior credentials include service as Chief Economist for the U.S Small Business Administration and as Assistant Director of the Minority Business Development Agency in the U.S Department of Commerce He was Director of the Center for Entrepreneurship and Public Policy at Fairleigh Dickinson University and Director of Research in Babson College’s Entrepreneurship Center Benoit Leleux is the Stephan Schmidheiny Professor of Entrepreneurship and Finance at IMD International He is a specialist in venture financing, combining ABOUT THE CONTRIBUTORS 329 expertise in entrepreneurship, venture capital, private equity, and growth management Recent research papers look at equity-for-service arrangements, how corporate investors learn in their venturing efforts, and the private equity investment profiles of family offices His research papers have appeared, among others, in Strategic Management Journal, Finance, Journal of Business Venturing, Venture Capital, International Management, Entrepreneurship Theory and Practice, European Financial Management, Frontiers of Entrepreneurship Research, Nature Biotechnology, Journal of Financial Transformation and International Perspectives on Entrepreneurship Research He is the author of A European Casebook on Entrepreneurship and New Ventures (Prentice Hall, 1996) with David Molian He was a fellow of the Sasakawa Young Leaders Program in Japan and the College for Advanced Studies in Management (CIM) in Brussels G T (Tom) Lumpkin is the Kent Hance Regents Endowed Chair and Professor of Entrepreneurship at Texas Tech University in Lubbock, Texas His primary research interests include entrepreneurial orientation, opportunity recognition, entrepreneurial learning, new venture strategies, and strategy-making processes His research has been published in the Academy of Management Review, Academy of Management Journal, Entrepreneurship Theory and Practice, Journal of Business Venturing, Journal of Management, Organizational Dynamics, and Strategic Management Journal Recently, Tom coauthored a textbook titled Strategic Management: Creating Competitive Advantages with Greg Dess and Alan Eisner Ian MacMillan is the Codirector of the Wharton Entrepreneurial Center and Director of the Snider Entrepreneurial Research Center He is also the Dhirubhai Ambani Professor of Innovation and Entrepreneurship MacMillan joined the center in June of 1986, after having served as Director of the Center for Entrepreneurial Studies at NYU He has taught at NYU, Columbia University, Northwestern University, and University of South Africa Prior to joining the academic world, MacMillan was a chemical engineer and gained experience in gold and uranium mines, chemical and explosives factories, oil refineries, soap and food manufacturers, and the South African Atomic Energy Board He has been a director of several companies in the travel and import/export business in South Africa, Canada, Hong Kong, and Japan MacMillan has consulted with companies such as Air Products, Microsoft, DuPont, General Electric, GTE, IBM, Citibank, Seagate, Metropolitan Life, Chubb & Son, American Re-Insurance, Matsushita (Japan), Olympus (Japan), L.G Group (Korea), Texas Instruments, KPMG, Fluor Daniel, Commercial Union General Insurance (UK), Air Products, Duratek, Hewlett Packard, and Intel He has published numerous articles and books on organizational politics, new ventures, and strategy formulation and execution His articles have appeared in the Harvard Business Review, The Sloan Management Review, The Journal of Business Venturing, among others His latest books, The Entrepreneurial Mindset and MarketBusters, were written with Rita Gunther McGrath 330 ABOUT THE CONTRIBUTORS Rita Gunther McGrath is well known for her expertise in the areas of innovation, entrepreneurship, and corporate growth She has coauthored two books with Ian MacMillan and published by the Harvard Business School Press, The Entrepreneurial Mindset (2000) and MarketBusters: 40 Strategic Moves That Drive Exceptional Business Growth (2005) She is a popular speaker and works with global organizations such as Nokia, Microsoft, Swiss Re, and 3M as well as with smaller growth companies She has also coauthored several articles in the Harvard Business Review and is working on a new book, tentatively titled Crashproofing: Benefiting from Discovery-Driven Strategy Rita joined the faculty of Columbia Business School in 1993 Prior to life in academia, she was an IT director, worked in the political arena, and founded two start-ups Augusto Ruperez Micola is a Research Fellow at IMD International He holds a PhD in Decision Science from the London Business School Laurence S Moss is Professor of Economics at Babson College In addition to his several books and journal articles on entrepreneurship and intellectual history, he is the current editor of The American Journal of Economics and Sociology His interest in entrepreneurial studies dates back to his early studies with leading members of the modern Austrian school of economics Moss is also a member of the Massachusetts Bar Association and serves on the Standing Pro-Bono Committee of the Supreme Judicial Court Scott L Newbert is Assistant Professor of Management at Villanova University His current research interests include the processes by which existing and nascent firms create value through the entrepreneurial use of available resources, the determinants of new firm formation, and the socioeconomic impacts of entrepreneurial activity He has published scholarly articles and has provided consulting services to organizations such as the United States and Dutch governments and Sandia National Laboratories on these and related topics He has served and continues to serve as a reviewer for various academic journals and conferences on the subject of entrepreneurship and strategic management He is an active member of both the Academy of Management and the Eastern Academy of Management Previously, he worked in sales for a Fortune 500 firm, worked as a collegiate athletics coach, and cofounded a privately owned marketing firm serving clients including Colgate-Palmolive and McNeil Specialty Products, a subsidiary of Johnson & Johnson Lidija Polutnik is Associate Professor and Chair of the Economics Department at Babson College Dr Polutnik conducts research in strategic cost management, entrepreneurship, and applied microeconomics, where she is studying the role of institutions in countries in transition Her work in transition economies, public finance, and labor economics is based on her work in various Central and East European countries and has appeared in numerous academic journals including ABOUT THE CONTRIBUTORS 331 The European Accounting Review, Advances in Management Accounting, Journal of Cost Management, Journal of Corporate Accounting and Finance, Industrial Relations Journal, and Comparative Economic Studies Journal Dr Polutnik received a Fulbright Senior Specialist Grant in 2004 and spent time at the University of Zagreb in Croatia evaluating changes in Croatian Business and Economics postsecondary education Hector O Rocha has been Professor of Business Policy and Entrepreneurship at IAE––Management and Business School (Argentina) since 1997 He has served as researcher in Argentina for two international collaborative research projects: the Project on Competitive Shocks (Harvard Business School, 1998–2000) and the Global Entrepreneurship Monitor (GEM; London Business School––Babson College, 2000–present) He initiated a research program on the theory of cooperation with the late Professor Sumantra Ghoshal and their initial joint work, Beyond Self-interest: The Micro-foundations of Cooperation, was presented in an All Academy Symposium at the Academy of Management Conference in 2004 and published in the Journal of Management Studies (2006) Previously, he was a management consultant for Price Waterhouse & Co., adviser of two Argentinean ministers and two city mayors, and member of five boards of directors in Argentinean companies He has also been involved in three start-ups His research has been published in Small Business Economics, the European Management Review, and the Journal of Management Studies, two book chapters, and fourteen presentations at refereed international conferences, such as the Academy of Management, the Babson–Kauffman Entrepreneurship Research Conference, and the Strategic Management Society Paul Severino is presently engaged as an investor and advisor to emerging technology companies Prior to his present activities, Mr Severino was the cofounder and Chairman of Bay Networks, Inc., which was formed in October 1994 by a merger between Synoptics Communications, Inc based in Santa Clara, California and Wellfleet Communications, Inc based in Billerica, Massachusetts He was also a cofounder and President of Wellfleet Communications, Inc in 1986 and Interlan, Inc in 1981, and was involved in the start-up of Data Translation, Inc in 1976, as Vice President of Engineering Prior to that, he worked as a product development engineer at Digital Equipment Corp and Prime Computer, Inc Mr Severino is a director of Sonus Networks and Analog Devices He also serves in industry and government business groups He is Chairman of the Massachusetts Technology Development Corp (MTDC), was a founder and past chairman of the Massachusetts Network Communications Council in 1997, and serves as a trustee of the Dana Farber Cancer Institute in Boston Rolf Sternberg is head of the Institute of Economic and Cultural Geography at the University of Hannover Previously, he was a professor of regional geography at the Department of Geography, Technical University of Munich (Bavaria, 332 ABOUT THE CONTRIBUTORS Germany), and between 1996 and 2005 he was a full Professor (Chair) of Economic and Social Geography at the University of Cologne, Faculty of Economics and Social Science His main research interests are in the field of spatial consequences of policy activities (e.g., technology policy instruments like innovation centers/science parks), the impact of networks between innovative actors (firms, research institutions, politicians) on regional development, new firm formation process and effects, and in the field of regional-sectoral clusters and their economic impacts In addition to five books he has published some 130 articles, in journals such as Research Policy, Regional Studies, Economic Geography, European Planning Studies, and Small Business Economics He was Chairman of the Scientific Board of the Association of Geographers at German Universities (2000– 2003) and Member of the Northrhine–Westphalian Working Group of the German Academy for Spatial Science and Regional Planning Since 1998 he has been the leader of the German team of the GEM and a member of the GEM Research Committee In 2004, he organized the First GEM Research Conference in Berlin William J Wales is a doctoral candidate in management at Rensselaer Polytechnic Institute, where he received his master’s degree in industrial engineering His research interests include firm strategic orientations, top management teams, and new venture development His teaching interests include strategy, venturing, and corporate entrepreneurship He has contributed to several research projects undertaken by the United States Air Force Research Laboratories He is an active member of both the Academy of Management and the United States Association for Small Business and Entrepreneurship Steven T Walsh is the Alfred Black Professor of Entrepreneurship, the Director of the Technology Entrepreneurship Program, and the Codirector of the Technology Management Center at the University of New Mexico’s Anderson School of Management He is an internationally known academic and businessman The International Association of Management of Technology has recently ranked him in the top authors in management of innovation and technology He has written more than 100 archival works, and serves as area editor for technology entrepreneurship for Technovation and an area editor for the Journal of Microlithography, Microfabrication, and Microsystems and the Engineering Management Journal He has been the special issue editor for many journals and is on the board of reviewers for IEEE Transactions on Engineering Management and Technology Forecasting and Social Change Dr Walsh is one of the world’s leading experts on the commercialization on enabling disruptive technologies specifically micro- and nanotechnologies He is the founding president for the Micro and Nanotechnology Commercialization Education Foundation (MANCEF) and Cochair of the International Micro-Nano Roadmap, now in its second edition