Heterogeneity in New Venture Formation Rates Across Nations — The Schumpeterian and Institutional Economics Views

2016 ◽  
pp. 1-35 ◽  
Author(s):  
Yong Li ◽  
Shaker A. Zahra ◽  
Sai Lan
Keyword(s):  
Institutional Economics ◽  
New Venture ◽  
New Venture Formation

Immigrant Entrepreneurship: The Effect of Early Career Immigration Constraints on New Venture Formation

2021 ◽  
Author(s):  
Rajshree Agarwal ◽  
Martin Ganco ◽  
Joseph Raffiee
Keyword(s):  
United States ◽  
Human Capital ◽  
The United States ◽  
Early Career ◽  
Theory And Practice ◽  
New Venture ◽  
Opportunity Costs ◽  
Paid Employment ◽  
Specialized Human Capital ◽  
New Venture Formation

We examine how institutional factors may affect microlevel career decisions by individuals to create new firms by impacting their ability to exercise entrepreneurial preferences, their accumulation of human capital, and the opportunity costs associated with new venture formation. We focus on an important institutional factor—immigration-related work constraints—given that technologically intensive firms in the United States not only draw upon immigrants as knowledge workers but also because such firms are disproportionately founded by immigrants. We examine the implications of these constraints using the National Science Foundation’s Scientists and Engineers Statistical Data System, which tracks the careers of science and engineering graduates from U.S. universities. Relative to natives, we theorize and show that immigration-related work constraints in the United States suppress entrepreneurship as an early career choice of immigrants by restricting labor market options to paid employment jobs in organizational contexts tightly matched with the immigrant’s educational training (job-education match). Work experience in paid employment job-education match is associated with the accumulation of specialized human capital and increased opportunity costs associated with new venture formation. Consistent with immigration-related work constraints inhibiting individuals with entrepreneurial preferences from engaging in entrepreneurship, we show that when the immigration-related work constraints are released, immigrants in job-education match are more likely than comparable natives to found incorporated employer firms. Incorporated employer firms can both leverage specialized human capital and provide the expected returns needed to justify the increased opportunity costs associated with entrepreneurial entry. We discuss our study’s contributions to theory and practice.

scholarly journals Confucian Values and Entrepreneurial Firm Legitimacy

2019 ◽  
Vol 11 (2) ◽  
pp. 18
Author(s):  
Kong-Hee Kim ◽  
James A. Tan
Keyword(s):  
The United States ◽  
New Venture ◽  
Entrepreneurial Firms ◽  
Asian Countries ◽  
Theoretical Understanding ◽  
Social Legitimacy ◽  
Entrepreneurial Firm ◽  
The Social ◽  
Confucian Values ◽  
New Venture Formation

This paper offers a model based on institutional theory to explain differences in the level of new venture formation and development between the Confucian-based societies of East-Asia and Western countries such as the United States. We propose that the Confucian values underlying the institutional and cultural environments of East-Asian countries adversely affect the social legitimacy of entrepreneurial firms thereby inhibiting new venture formation and growth. The theoretical model and propositions developed in this paper extend the theoretical understanding of the interplay between Confucian values, cognitive behavior, and entrepreneurial firm legitimacy. Implications for international entrepreneurship research are discussed.

The Determinants of New Venture Performance: An Extended Model

1998 ◽  
Vol 23 (1) ◽  
pp. 5-29 ◽  
Author(s):  
James J. Chrisman ◽  
Alan Bauerschmidt ◽  
Charles W. Hofer
Keyword(s):  
Strategic Management ◽  
Organizational Structure ◽  
Industry Structure ◽  
New Venture ◽  
Management Theory ◽  
Extended Model ◽  
Venture Performance ◽  
New Venture Formation ◽  
Special Case ◽  
New Venture Performance

This article argues that new venture formation is a special case of strategic management theory. Thus, Sandberg & Hofer's (1987) model of new venture performance, which states that new venture performance is a function of industry structure, venture strategy, and the founding entrepreneur, must be extended to include the resources and the organizational structure, processes, and systems developed by the venture to implement its strategy and achieve its objectives. The key assumptions underlying this model are presented, and specific propositions concerning how resources and organizational structure, processes, and systems affect new venture performance are developed.

Country-specific strategy and new venture formation in Central and East Europe

2006 ◽  
Vol 15 (1) ◽  
pp. 1-13 ◽  
Author(s):  
Adrian Gil ◽  
George Nakos ◽  
Lance Eliot Brouthers ◽  
Keith D. Brouthers
Keyword(s):  
New Venture ◽  
East Europe ◽  
Specific Strategy ◽  
New Venture Formation ◽  
Country Specific

scholarly journals Tracking the venture creation phases in terms of entrepreneurial self-efficacy: links to competitiveness of South African ventures

2012 ◽  
Vol 15 (4) ◽  
pp. 352-366 ◽  
Author(s):  
Boris Urban
Keyword(s):  
Regression Analysis ◽  
South African ◽  
Self Efficacy ◽  
New Venture ◽  
Formation Processes ◽  
Venture Creation ◽  
Policy Domain ◽  
Medium Businesses ◽  
New Venture Formation ◽  
Sequential Nature

Examining entrepreneurial self-efficacy across venture creation phases is important as research indicates that behaviours to which self-efficacy corresponds are largely concerned with new-venture formation processes and as such are required of entrepreneurs well beyond the point of founding. Hypotheses are formulated, which take into account the sequential nature of entrepreneurial tasks in the venture process. A multidimensional instrument is used to collect data from medium businesses (n = 199). Correlational and regression analysis are performed where empirical evidence supports that entrepreneurial self-efficacy during searching, planning, marshalling resources and implementing people phases of venturing are significantly associated with the competitiveness of the venture. Implications of this study can be advanced to the policy domain where it needs to be stressed that government initiatives will affect venture sustainability only if these policies are conceived in a way that influences entrepreneurial self-efficacy.

scholarly journals Social entrepreneurship: A solution for transforming the disadvantaged community of Nellmapius

2015 ◽  
Vol 71 (3) ◽  
Author(s):  
Semape J. Manyaka
Keyword(s):  
South Africa ◽  
Social Entrepreneurship ◽  
Practical Theology ◽  
Social Transformation ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Disadvantaged Community ◽  
New Firm ◽  
New Venture Formation

In this article, I investigate the concept, social entrepreneurship, as a potential lever in economic and social transformation of the poorest-of-the-poor community of Nellmapius township, east of Pretoria, South Africa. I identify definitions of ‘entrepreneurship’ and ‘social entrepreneurship’, and delve into the historical development of the concept ‘entrepreneur’. South Africa is in an era where it needs more new venture creation. Hence, I have studied new venture formation, especially from the perspective of Schumpeter’s theory of ways of forming a new firm. South Africa lags behind in new venture development compared toother developing countries; I investigated the causes behind this and suggest remedies to address this. Postfoundationalist practical theology is seen as a way of doing theology in the midst of those who suffer poverty and lack. The methods of this approach are dealt with in this article, which also asks what theology can bring to the table of interdisciplinary engagement?

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