Entrepreneurship in a Global Context

194 Pages·1997·3.82 MB·English

by  Birley, Sue, MacMillan, Ian C

ENTREPRENEURSHIP IN A GLOBAL
CONTEXT
This collection presents selected papers from the Fourth Annual Global
Conference on Entrepreneurial Research, held in 1994 at INSEAD, France.
Covering a wide selection of themes, methodological approaches and
organization types, the papers aim to provide global perspectives on a variety of
possible approaches to entrepreneurial research.
Employing a multidisciplinary approach, the papers cover all aspects of current
Entrepreneurship theory in multinationals, economics, organizational sociology,
marketing, leadership and finance. Other issues discussed include gender and
networking, strategies in entrepreneurial growth, job satisfaction and franchising.
A number of case studies highlight specific examples of entrepreneurship around
the world, including the reform of state-owned enterprises in China and
Vietnam, regional business creation in Quebec and the Italian tannery industry.
The first volume dealing with international entrepreneurship to draw on both
eastern and western perspectives, this will be of interest to students and
researchers in international business and related areas.
Sue Birley is Director of Research and Professor at the Management School,
Imperial College, London. Ian C.MacMilIan is Executive Director of the Sol.
C.Snider Entrepreneurial Centre and the George W.Taylor Professor of
Entrepreneurial Studies at the Wharton School at the University of Pennsylvania.
© 1997 Sue Birley and Ian C.MacMillan
ROUTLEDGE STUDIES IN INTERNATIONAL
BUSINESS AND THE WORLD ECONOMY
1 STATES AND FIRMS
Multinational Enterprises in Institutional Competition
Razeen Sally
2 MULTINATIONAL RESTRUCTURING, INTERNATIONALIZATION
AND SMALL ECONOMIES
The Swedish Case
Thomas Andersson, Torbjörn Fredriksson and Roger Svensson
3 FOREIGN DIRECT INVESTMENT AND GOVERNMENTS
Catalysts for Economic Restructuring
Edited by John Dunning and Rajneesh Narula
4 MULTINATIONAL INVESTMENT AND ECONOMIC STRUCTURE
Globalization and Competitiveness
Rajneesh Narula
5 ENTREPRENEURSHIP IN A GLOBAL CONTEXT
Edited by Sue Birley and Ian C.MacMillan
© 1997 Sue Birley and Ian C.MacMillan
ENTREPRENEURSHIP IN A
GLOBAL CONTEXT
Edited by Sue Birley and Ian C.MacMillan
London and New York
© 1997 Sue Birley and Ian C.MacMillan
First published 1997
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
Routledge is an imprint of the Taylor & Francis Group
This edition published in the Taylor & Francis e-Library, 2003.
© 1997 Sue Birley and Ian C.MacMillan
All rights reserved. No part of this book may be
reprinted or reproduced or utilized in any form or by any
electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or
in any information storage or retrieval system, without
permission in writing from the publishers
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
A catalogue record for this book has been requested
ISBN 0-203-43516-8 Master e-book ISBN

ISBN 0-203-74340-7 (Adobe eReader Format)
ISBN 0-415-13132-4 (Print Edition)
© 1997 Sue Birley and Ian C.MacMillan
CONTENTS
List of figures
List of tables
List of contributors
Introduction
1 STRONG TIES, WEAK TIES AND STRANGERS: DO WOMEN
OWNERS DIFFER FROM MEN IN THEIR USE OF
NETWORKING TO OBTAIN ASSISTANCE?
Howard E.Aldrich, Amanda Brickman Elam and Pat Ray Reese
2 THE DETERMINATION OF OPTIMAL MARKETING
EXPENDITURES: AN APPLICATION OF OPTION THEORY
Saugata Banerjee, William D.Bygrave and Benôit F.Leleux
3 UNFINISHED BUSINESS: OBSTACLES TO
ENTREPRENEURSHIP IN THE REFORM OF STATE-OWNED
ENTERPRISES IN CHINA AND VIETNAM
Max Boisot
4 CREATING VALUE ON THE BALANCE SHEET: CAPITAL
STRUCTURES OF NEW BUSINESSES
Richard N.Cardozo, Paul Severn, Anne Sickels, and Alexander
Ardishvili
5 COPING WITH INDUSTRY TRANSFORMATION: THE CASE OF
THE ITALIAN TANNERY INDUSTRY
Paola Dubini and Umberto Lago
6 EXTRAORDINARY FEATS OF ENTREPRENEURIAL
ENTERPRISE: STRATEGIES FOR RAPID, SUSTAINED
GROWTH
Thomas D.Kraemer and S.Venkataraman
7 TEAM PROCESSES AND PROGRESS IN INNOVATION: THE
ROLE OF JOB SATISFACTION AT PROJECT LEVEL
Atul A.Nerkar, Rita Gunther McGrath and Ian C.MacMillan
© 1997 Sue Birley and Ian C.MacMillan
8 REGIONAL BUSINESS CREATION AND ‘PUSH’ FACTORS:
THE CASE OF QUEBEC
Gilles Roy, Jean-Marie Toulouse and Luc Vallée
9 AN INVESTIGATION OF CONFLICT IN THE FRANCHISEE-
FRANCHISOR RELATIONSHIPS: FINDINGS OF THE PILOT
STUDY
Steven Spinelli Jr and Sue Birley
Appendix I
Appendix II
Appendix III

© 1997 Sue Birley and Ian C.MacMillan
FIGURES
1.1 Framework of network relationships
1.2 Percentage of owners who asked for assistance in obtaining four
resources, by sex. Question: ‘During the past year, have you asked
for…?’
1.3 Number of lawyers who were contacted, by sex
1.4 Owner’s relationship to the last person they contacted for assistance, by
sex. ‘Percent who had specific type of relation to person contact’
1.5 Percentage of owners who contacted a man to obtain specific assistance,
by sex
1.6 Percentage of owners who paid market rate for the assistance they
obtained, by sex
1.7 Owners’ ratings of the quality of the assistance they obtained, on a scale
of 0 to 100, by sex
1.8 Percentage of owners who say that they changed their business practices
as a result of the assistance they obtained, by sex
4.1 Weighted average cost of capital
4.2 Insolvency and shareholder value as a function of debt-equity ratio
4.3 Optimizing WACC and insolvency
4.4 Value to present shareholder as a function of WACC, insolvency cost
and dilution
4.5 Impact of control of agents
4.6 Shareholder value as a function of flexibility and insolvency
4.7 Optimum debt-equity ratio to maximize value of present shareholders as
a function of WACC, insolvency costs, control (agency) costs, flexibility
costs and cost of dilution
5.1 Focus on differentiation strategy
5.2 Industrial strategy
5.3 Group strategy
7.1 Tests of hypotheses
© 1997 Sue Birley and Ian C.MacMillan
TABLES
1.1 Sample size and response rates
1.2 Personal and business characteristics of sample at Time 1 (1990)
6.1 Distribution of firms for each factor
6.2 Distribution of firms between mode of growth, product market mix and
proprietary asset or invention at founding
6.3 Computer, electronics, and measurement industries concentration
6.4 Mean years to Fortune 500 entry
6.5 Mean daily raw return by growth process
6.6 Mean daily risk weighted return by growth process
7.1 Means, standard deviations and Pearson correlation coefficients
7.2 Results of varimax rotated factor analysis
7.3 Results of regression analyses on performance
7.4 Results of regression analyses on performance with controls
8.1 Anticipated dependent variables
8.2 Rank of the subprovincial regions (SR) in Quebec
8.3 Rank of the census metropolitan areas (CMA) of Quebec
8.4 Independent variables used in the empirical tests
8.5 Regression analysis for CNT8692EH/OLS: geographical groupings I, II,
III and IV
8.6 Regression analysis for CNT8692EH/OLS: geographical groupings II
and III including employment variations
© 1997 Sue Birley and Ian C.MacMillan
CONTRIBUTORS
Howard E.Aldrich is Kenan Professor of Sociology, Director of the
Industrial Relations Curriculum, Director of the Sociology Graduate Studies
Program, and Adjunct Professor of Business at the University of North
Carolina, Chapel Hill, USA.
Alexander Ardishvili, Carlson Center for Entrepreneurial Studies, Carlson
School of Management, University of Minnesota, USA.
Saugata Banerjee is Assistant Professor of Finance, Koc University, Istanbul,
Turkey.
Sue Birley, Management School, Imperial College, London.
Max Boisot, E.S.A.D.E., Barcelona, Spain.
Amanda Brickman Elam is a second-year graduate student in Sociology at
the University of North Carolina, Chapel Hill.
William D.Bygrave is the Frederic C.Hamilton Professor for Free Enterprise
and Director of the Center for Entrepreneurial Studies at Babson College,
Maryland, Visiting Professor at INSEAD (the European Institute of Business
Administration) and Special Professor at the University of Nottingham.
Richard N.Cardozo, Carlson Center for Entrepreneurial Studies, Carlson
School of Management, University of Minnesota, USA.
Paola Dubini, Universita Bocconi, Milan, Italy.
David Forlani, University of Minnesota, USA.
William B.Gartner is the Director of the Center for the Study of Enterprise
and a Professor in the Department of Management, College of Business
Administration, San Francisco State University.
Rita Gunther McGrath is Assistant Professor in the Graduate School of
Business at Columbia University. She received her PhD from the Wharton
School of the University of Pennsylvania.
Thomas D.Kraemer, Wharton School of the University of Pennsylvania,
USA.
Umberto Lago, Universita Bocconi, Milan, Italy.
© 1997 Sue Birley and Ian C.MacMillan
Benoît F.Leleux is assistant professor in the Department of Finance at Babson
College, Maryland, USA. He obtained his PhD at INSEAD, where he
specialized in both Corporate and Entrepreneurial Finance and is still a visiting
professor.
Ian C.MacMillan is George W.Taylor Professor of Entrepreneurial Studies in
the Department of Management of the Wharton School of University of
Pennsylvania. He is Executive Director of the Sol C.Snider Entrepreneurial
Center.
Shuichi Matsuda, Waseda University, Japan.
John W.Mullins, University of Denver, USA.
Atul A.Nerkar is a doctoral candidate in the Department of Management at
the Wharton School of the University of Pennsylvania. He is also a Research
Associate at the Sol C.Snider Entrepreneurial Center of the Wharton School.
Pat Ray Reese received her PhD in Sociology from the University of North
Carolina, Chapel Hill, in 1992. She is currently a Pharmaeconomic Manager,
International Research Department, in Glaxo-Wellcome Research and
Development, North Carolina.
Gilles Roy, H.E.C., Montreal, Canada.
Paul Severn, Carlson Center for Entrepreneurial Studies, Carlson School of
Management, University of Minnesota, USA.
Scott A.Shane, Georgia Institute of Technology, USA.
Itaru Skirakura, Waseda University, Japan.
Anne Sickels, Carlson Center for Entrepreneurial Studies, Carlson School of
Management, University of Minnesota, USA.
Steven Spinelli Jr, Center for Entrepreurial Studies at Boston College.
Jean-Marie Toulouse, H.E.C., Montreal, Canada.
Luc Vallée, H.E.C., Montreal, Canada.
S.Venkataraman is Warren H.Bruggeman, ‘46 and Pauline Urban
Bruggeman Distinguished Chair at the Lally School of Management and
Technology of Rensselaer Polytechnic Institute. He is also the editor of
Journal of Business Venturing.
© 1997 Sue Birley and Ian C.MacMillan