Entrepreneurial Ecosystem: Perspectives from Emerging Economies PDF
Preview Entrepreneurial Ecosystem: Perspectives from Emerging Economies
Mathew J. Manimala Kishinchand Poornima Wasdani Editors Entrepreneurial Ecosystem Perspectives from Emerging Economies Entrepreneurial Ecosystem Mathew J. Manimala (cid:129) Kishinchand Poornima Wasdani Editors Entrepreneurial Ecosystem Perspectives from Emerging Economies 123 Editors Mathew J.Manimala KishinchandPoornima Wasdani Organizational BehaviourandHuman Indian Instituteof Management Bangalore ResourceManagement Area Bangalore Indian Instituteof Management Bangalore India Bangalore India ISBN 978-81-322-2085-5 ISBN 978-81-322-2086-2 (eBook) DOI 10.1007/978-81-322-2086-2 LibraryofCongressControlNumber:2014959411 SpringerNewDelhiHeidelbergNewYorkDordrechtLondon ©SpringerIndia2015 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper Springer(India)Pvt.Ltd.ispartofSpringerScience+BusinessMedia(www.springer.com) To the entrepreneurial spirit of the millions in emerging economies and their tryst with institutional inadequacies. Preface Entrepreneurshipisvitalformaintainingandenhancingthevigorandvitalityofany economy,beitdevelopedordeveloping.Thisisbecauseofthelife-cyclephenom- enonwherebyexistingbusinessesslowlyhavetomatureanddecline.Thisprocessis acceleratedintheInformationTechnologyerabecauseofthefastpaceoftechnology developmentleadingtofastertechnologicalobsolescenceofoldercompanies.Asa biological ecosystem is periodically rejuvenated and further developed by the new sprouts,aneconomyismaintainedanddevelopedbynewventures.Itisthereforenot surprisingthatentrepreneurshipdevelopmentisapriorityforallnations,especially thedevelopingones. Among the developing nations, a special group is identified as ‘Emerging Economies’ (EE) by economists and policy-analysts. Starting with a small but economically significant group offour countries, comprising Brazil, Russia, India, and China (BRIC), the groups have been expanded and modified to include about 30-odd countries depending on the purpose of analysis.It is estimated that they currently have more than 50 % of the GDP share and have the potential of over- taking the developed countries in terms of market capitalization in about two decades. Our review of the literature has found that the group (EE) is rather amorphous and self-organizing as per the exigencies of the situation. The main reason why this group of countries stands out from ‘Developing Countries’ is that they share some characteristics of developed countries but are still not fully developed. While most of the EE countries are growing at a relatively high rate, there are doubts about the sustainability of such growth, as there are institutional deficiencies as well as political, monetary, and social risks to businesses in these countries. In view of such risks, the general approach of the investors from developed countries is that they would invest in EE for value-creation and diver- sification of markets rather than for the safety of their investments or for deriving the full returns from them. Underthesecircumstances,entrepreneurshipandnewventurecreationassumesa specialcharacterinthesecountries.Itisbasicallyaprocessofmuddlingthroughto developmentinspiteofinstitutionaldeficiencies,aswehaveobservedinChap.1of this book. Our review and analysis have shown that there are about nine types of vii viii Preface inadequaciesplaguingtheemergingeconomies,whichwehavediscussedunderthe following subheadings: (1) Underdeveloped institutions, (2) Unclear and inconsis- tent policies, (3) Inadequate governance, (4) Disjointed infrastructure, (5) Limited fundingoptions,(6)Inhibitingculture,(7)Personalizednetworks,(8)Ill-fundedand ambivalenteducationsystem,and(9)Reluctantinternationalization.Someofthese issuesandtheirimpactonentrepreneurshiphavebeenbroughtoutbytheresearch- paperspresentedintheICIER-BRICInternationalConferenceheldatIndianInstitute of Management Bangalore during 8–10 December 2011. Fourteen papers selected fromthosepresentedattheconferencealongwiththeelaborateintroductorychapter arethecontentsofthisbook(seedetailsinTable1). TheshortsummariesofthechaptersgiveninTable1supporttheviewpresented in the introductory chapter that the institutional deficiencies prevalent in EE are adversely affecting the process of entrepreneurship and new venture creation, making it more of a ‘muddling-through’ process rather than a planned and sys- tematicone.Thechaptersareorganizedunderfiveparts(includingtheintroductory chapterinPartI),eachofwhichhighlightsaparticularsubthemeanditsimpacton new venture creation and management. Part II (Entrepreneurial Ecosystem) con- tainspapersthatdeal withtheentrepreneurialecosystemingeneral aswell aswith specific aspects of it (such as culture, IPR laws and venture capital) with special reference to their impact on entrepreneurial motivation and performance. Parts III–Vdeal with specifictypes ofentrepreneurial initiatives that arelargely used in EE as (partial) solutions to the institutional deficiencies in EE. The first of these (Social Networks for Entrepreneurship) is known to be effectively com- pensating for many of the institutional deficiencies coming in the way of entre- preneurial performance. The papers in this part describe the use of informal and formal networks (especially the personal networks) by entrepreneurs to manage issues like internationalization, collaborative business with larger forms, and even the stigma of entrepreneurial failures. The next part is on Sustainable Entrepre- neurship.Underthisheading,wecombinetwomajoraspectsofsustainability—one about the ‘entrepreneurial’ ways of protecting the ecological environment from crude and careless entrepreneurial action and/or doing business in ways that are compatiblewiththedemandsoftheenvironment(GreenEntrepreneurship)andthe other about the protection/development of the marginalized sections of people whom mainstream entrepreneurship fails to recognize (Social Entrepreneurship). The last part is about Micro-Entrepreneurship, which is used as a means of self-employment (especially among women) under conditions of resource- constraints, institutional inadequacies, and high unemployment rates that are characteristic of EE. Thisbook,therefore,developsapanoramicviewoftheissuesandchallengesof doing business in EE and demonstrates some of the effective ways of coping with the special circumstances prevailing in these countries. While the papers deal with specific issues, the introductory chapter is intended to provide a comprehensive understandingofthecontextinwhichsuchissuesemergeandaredealtwith.Wedo Preface ix Themeofthechapter ThisintroductorychapterdiscussestheinstitutionalinadequaciesinemergingeconomiesunderninesubheadingsandhighlightstheirimplicationsforentrepreneurshipandnewventurecreationfiIdentiestheproblemsinthebusinessecosystemofSingaporethatde-motivatestudentsfromselectingentrepreneurshipastheircareeroption Assessestheimpactofculturalattributesofethnicgroupsontheirentrepreneurialattitude Developsascaletomeasuretheimplicationsofintellectualpropertylawsonforeigndirectinvestments,growthofgrossdomesticproduct,riseintechnologytransfer,tradeflowsandjointventures,inevolvingmarkets Discussesthevariousfactorsthataffecttheficapitalstructureofrmsthatuseventurecapitalfifundasthemajorsourceoftheirnance Discussesmethodsofattracting,retainingandgroomingtalentusedbyaninternationalstart-upinemergingmarket(India) (continued) o n Authorsofthechapter MathewJ.ManimalaandKishinchandPoornimaWasdani RaymondKengWanNg KabiruIsaDandag’andYushauIbrahimAngo RajeshAsrani SwatiPanda BidiptaDas,MenakaRaoandVasanthiSrinivasa C w arts,chapters,andthemes Titleofthechapter EmergingEconomies:MuddlingThroughtoDevelopment AnEmpiricalAnalysisoftheSingaporeEntrepreneurshipEcosystem:ACaseStudyforBRIEconomiestoPonder TheImpactofEthnicityonEntrepreneurship:AGlobalRevieandLessonsforNigeria EconomicImplicationsofIntellectualPropertyRightsinEvolvingMarkets FactorsAffectingCapitalStructureofIndianVentureCapital-BackedGrowthFirms BridgingtheCrossCulturalTransformationalLI(DistanceMeasure)atHuaweiTechnologyIndiaPrivateLtd p — k o 1 2 3 4 5 6 bo er er er er er er er e pt pt pt pt pt pt pt ofth Chano. Cha Cha Cha Cha Cha Cha n o Table1Organizati Partno.andtitle I.Introduction II.EntrepreneurialEcosystem x Preface Themeofthechapter fiComparingthebenetsderivedbyentrepreneursfromdifferenttypesofinformalnetworks,thisfipapershowsthatthemostbenecialoneisthe‘’fiEx-colleaguenetworkandtheleastbenecialis‘’theAlumninetwork Aconceptualpaperthatreviewstheroleofopportunityrecognitionininternationalentrepreneurship Using89symbioticdyads,thepaperdemonstratestheroleofsocialcapitalincreatingstability(trust,sharingresourcesandmarketingsuccesses)ofsymbioticventures(functionallyficollaboratinglargeandsmallrms) Demonstratesthehigherimpactofsocialacceptancewhencomparedtocustomeracceptanceofentrepreneurshipfailure,onsocialfistigmaandthecompetitiveadvantageoftherm(continued) Iyer hilal Cai,LiuShi Authorsofthechapter B.SharadaandParameshwarP. IndujeevaKeertèPeiris,MichleAkoorie,andPareshaSinha JiLi,ZhenyaoHongZhu,TaoandShengping P.BabaGnanakumar m A Titleofthechapter fiHowDoEntrepreneursBenetfrotheirInformalNetworks? ConceptualizingtheProcessoffiOpportunityIdenticationinInternationalEntrepreneurshipResearch SymbioticVentureandSocialCapital:TheEffectsofMarketOrientationonSmallEntrepreneurFirmsinChina —SocialFluidityMappingSystemWaytoReduceSocialStigmainBusinessFailures 0 7 8 9 1 er er er er er pt pt pt pt pt Chano. Cha Cha Cha Cha d) e u e p e1(contin no.andtitl Socialworksforepreneurshi Tabl Part III.NetEntr Preface xi Themeofthechapter Describestheprocessofstarting,developingandfisustainingagreenenterpriseandidentiesthelackofgovernmentsupportandtheknowledgeoftheprocessesinvolvedinstartingagreenenterpriseasthemajorreasonsforitslimitedacceptanceandprevalence Discussestheenvironment-friendlybusinesspracticesthatwouldhelpbusinessbecomesustainable Discussesthebusinessmodelsofsocialenterprisesthatensuresustainabilityofthebusinessesunderconditionsofresourceconstraints Discussesthemotivatingfactorsofimmigrantsaswellasreligiousandminoritygroupstoselectentrepreneurshipastheircareerbycreatingmicro-businessesinmostcases Assessestherelationshipbetweenentrepreneurialsuccessandlifesatisfactionofwomenengagedinmicro-businesses Authorsofthechapter AshishSharda,AbhishekGoel,AnkitMishraandSatishChandra PradnyaChitraoandAshaNagendra ShinuAbhi,VasantiVenugopalandSandeepShastri SonalMuluk,PoonamRawatandMaheshLaxmikantAbale LathaKrishnanandT.J.Kamalanabhan Titleofthechapter GreenEntrepreneurshipinIndia:GlobalEvaluation,NeedsAnalysisandDriversforGrowth GreenAwarenessbyCorporatesandEntrepreneursinIndia:ACaseStudyofPuneCityinMaharashtraState—SocialEntrepreneurshipBuildingSustainabilityThroughBusinessModelsandMeasurementofSocialImpact ImplicationsofDrivingFactorsforEntrepreneurship:ACaseStudyforImmigrants,Ethnic,andReligious’MinoritiesEntrepreneurshipinPuneCity SuccessandLifeSatisfactionamongWomenMicro-Entrepreneurs 1 2 3 4 5 1 1 1 1 1 er er er er er er pt pt pt pt pt pt Chano. Cha Cha Cha Cha Cha d) e u e p p e1(contin no.andtitl Sustainableepreneurshi Micro-epreneurshi Tabl Part IV.Entr V.Entr
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