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Handbook of Research on Entrepreneurial Success and its Impact on Regional Development Luísa Carvalho Universidade Aberta, Portugal & CEFAGE, Universidade de Évora, Portugal A volume in the Advances in Electronic Government, Digital Divide, and Regional Development (AEGDDRD) Book Series Detailed Table of Contents Preface..............................................................................................................................................xxvii Chapter 1 TheFinancialDevelopmentofPortugueseEntrepreneurialBusinesses................................................1 Inna Sousa Paiva, Lusófona University of Humanities and Technology, Portugal Entrepreneurialfirmscommonlybecomefamilysmallbusinesses.Thisstudyaimstohighlightthe financialstrategyunderlyingthedevelopmentofsmallerfamilycompanies.Abriefintroductionabout thedefinitionandroleofthefamilybusinessisfollowedbyareviewofthedebateonthefinancegap thatputsconstraintsonthesurvivalandlong-termgrowthandprosperityofsmallerprivatelycompanies. Evidenceisdrawnfromadatabaseofsmallerfirmswithfamilyowner-managersinPortugal,inorder todeterminetheirattitudestowardsandexperiencesofventurecapitalandfinancingandothercapital options.Weconcludebydiscussingsometentativepolicyimplicationsforregionaldevelopmentfrom theperspectiveofownermanagers,serviceprovidersandpolicy-makers. Chapter 2 InnovationPropensityinKnowledgeIntensiveBusinessServices(KIBS):AComparativeStudy inPortugueseServiceSector................................................................................................................21 Sandra Pinto, Instituto Politécnico de Setúbal, Portugal Luísa Cagica Carvalho, Universidade de Évora, Portugal Sandra Nunes, Instituto Politécnico de Setúbal, Portugal ThisresearchhasbeendevelopedtoPortugal,howevercharacteristicsandroleofKIBSmayvary accordingtocultural,geographicalandinstitutionalcharacteristicsofeachcontext. Chapter 3 TransnationalAccelerationofLocalStartups:Portugal’sBuildingGlobalInnovators(BGI) Model....................................................................................................................................................43 Luís Carvalho, European Institute for Comparative Urban Research, The Netherlands Nuno Camacho, Erasmus University Rotterdam, The Netherlands Gonçalo Amorim, MIT Portugal, Portugal José Paulo Esperança, BGI – IUL MIT Portugal Accelerator, Portugal Thischapterexploresthetenetsandthepracticeofatransnationalinitiativetopromotelocalentrepreneurial growth:theBuildingGlobalInnovators(BGI)model,astartupacceleratorbasedinLisbon(Portugal)and inCambridge(Massachusetts,USA).WeexaminethepathwaysthroughwhichBGI’sprocessandglobal networkofexpertshelpedtwosuccessfulPortuguesetechnologystartupsgrowandscaleveryquickly –MovvoandVeniam.Wecombineliteraturesfromstrategicmanagement,marketingandeconomic geographytoexploreBGI’stransnationalaccelerationmodel,whichtapsintoglobal“pipelines”and distantentrepreneurialecosystems,namelyasawaytoaccesstheexpertise,marketopportunitiesand venturecapitalthatisoftenunavailableinemergentandpolicy-shelteredlocalclusters.Wediscussthe relevanceofsuchatransnationalaccelerationmodelforhigh-techstartupsinperipheraleconomies. Chapter 4 ClustersasentrepreneurialecosystemsforCorporateSocialResponsibilityinSMEs........................74 Isabel Sanchez-Hernandez, University of Extremadura, Spain Theresearchquestioninthischapteriswhetherclustersaregoodentrepreneurialecosystemstoenhance socialandresponsiblebehaviorinSMEsatregionallevel.WewilladdressinstitutionaleffortsinCorporate SocialResponsibilitycarriedoutintheAutonomousRegionofExtremadurainSpainascasestudybecause theregionalgovernment,withtheaimofpromotingbusinesscooperationtoenhancecompetitiveness, decidedtodevelopaclusteringpolicyforSMEsintheregion.Additionally,since2010theregionhas developeditsownplanforthepromotionofresponsibilityatregionallevel.Toanswerthequestionwe havecarriedoutfocusgroupswithrepresentativebusinesses´managersbelongingtotheexistingand operativeclustersinExtremaduraatthemoment. Chapter 5 InternationalizationandFinancialPerformance:AsuccesscaseinPortugal.......................................91 Nuno Teixeira, Instituto Politécnico de Setúbal, Portugal Bruno Rafael, Instituto Politécnico de Setúbal, Portugal Pedro Pardal, Instituto Politécnico de Setúbal, Portugal Oneofthemaincharacteristicsofcurrentbusinessenvironmentisrelatedtointernationalization ofcompaniesandeconomies,wherecompetitorsfromdifferentcountrieswithdiverseculturesand productionfactors,easilyclashforapositionofsupremacyinthemarkets.Thus,internationalization turnedthemanagementoforganizationsinamorecomplexact,increasingopportunitiesbutalsothe risksofthebusiness.Assuch,thispaperaimstoreflectonthemainissuesassociatedwithcompanies’ internationalizationandtheimpactontheirmanagementprocess,inparticularonfinancialperformance. Inaddition,weintendtoconductacasestudyofaPortuguesecompanyofinformationtechnology industrythatthroughitsinternationalizationstrategy,managedinlessthanadecade,toincrementthe turnoverfrom10millionto60millioneuros,becomingoneofthelargestPortuguesegroupsinthe sectorandaworldwidesuccess. Chapter 6 PublicPoliciesandPublicProgramswithaRegionalImpactinPromotingEntrepreneurship:The CaseStudyofGovernmentBackedVentureCapitalSchemesintheUK..........................................124 Yannis Pierrakis, Kingston University, UK Thischapteraddstothegrowingliteraturefromrecentyearsoninnovationfinance,innovationsystems, andregionaleconomicpolicy.Althoughtheroleofbusinesshasbeenseenascriticalwithintheregional innovationsystem,theroleofbusinessfinancingintermediarieshasreceivedconsiderablylessattention despitetheirrecognisedroleasacentralactorofthesystem.Thischapterfocusesonaninnovationplayer thatseemstohavebeenneglectedbyscholarstodate,namelytheventurecapitalindustry.Itexamines theroleofpublicpoliciesinpromotingentrepreneurshipthroughtheUKgovernmentbackedventure capitalschemes.Itinvestigateswhetherandhowthepublicinterventionshavechangedtheavailability ofventurecapitalattheUKregionallevel.Italsoelaboratesonthepotentialimplicationsofthepublic sectors’sdominationinventurecapitalprovisioninseveralUKregions. Chapter 7 BarrierstoAcademicEntrepreneurshipinKnowledgeBasedSpinoffs:EvidencefromSpanish ResearchGroups.................................................................................................................................153 Monica Cerdan-Chiscano, Turismo Sant Ignasi, Spain Antoni Olivé, University Ramon Llull, Spain Ana Isabel Jimenez-Zarco, Open University of Catalonia, Spain Joan I Torrent-Sellens, Open University of Catalonia, Spain Inthischapter,wewilldiscusstheroleofknowledgeasastrategicresourceforcompanies.Universities focusonknowledgedevelopmentasthemainresultoftheirresearchgroupsactivities;butreallyfew exploitthisintangibleresourcethroughknowledge-basedspinoffs(KBSOs),givensomeinternalbarriers thathindertheacademicentrepreneurshipactivity.Inordertoidentifythem,isperformedanexploratory analysiswithapopulationof130researchgroupsbelongingtosocialscienceandHumanitiesareas FacultiesofAutonomousUniversityofBarcelona.Theresultsconfirmtheconclusionspresentedin previousstudiesregardingexistenceoftwotypesofbarrierstoenterprise:structuralandoperational. Also,itevidencestheexistenceofdifferenttypesofresearchgroups,andhowthesize,researcharea andprincipalresearcher’sacademicstatusaffectthewaythatbarrierstoacademicentrepreneurshipare perceived,aswellasbothtransferprocessesandentrepreneurialactivitythataredeveloped. Chapter 8 TheInfluenceofInstitutionalEnvironmentonQualityPracticesandItsImpactonRegional Development.......................................................................................................................................168 María Dolores Sánchez-Fernández, University of A Coruña, Spain Thischapterstudiedtheinstitutionalinfluenceassociatedtoqualitypracticesinhotels.Theaimwas tointerpretwhetheritwasthenormative,coerciveormimeticpressures(Institutionalpressures)that influencedthethree,fourandfivestarhotelsinnorthofPortugal.Inordertoaccomplishtheseobjectives theauthorusedaninvestigationmodelthatconnectsinstitutionalcontextpressureswithqualitypractices andqualitypracticeswithlegitimacy.TostudyusedtheInstitutionalTheoryastheoreticalreference. Chapter 9 Intra-EthnicBusinessNetworksintheGurageFootwearIndustryinEthiopia..................................191 Tebarek Lika Megento, Addis Ababa University, Ethiopia Christian Kesteloot, KU Leuven, Belgium Drawingoninsightsfromsocialnetworktheory,thesocio-economicandculturaldimensionsofintra- ethnicbusinessnetworksareexaminedfortheGurage,anethnicgroupinEthiopia.Thisstudyalso examinestheextentofChineseimpactsonthefootwearindustryofEthiopia.Aqualitativeapproach basedonin-depthinterviewswasutilizedinordertoassessintra-ethnicbusinessnetworks,whilea quantitativeapproach,basedonacross-sectionalsurvey,wasemployedtocollectbackgrounddata,to assesstheimpactofChineseimportsonlocalfootwearproducersandtoidentifypotentialcasesfor in-depthinterviews.Gurageuseethnicnetworkstomobilizeresourcesandopportunities,whichinturn contributestotheirsuccessinthebusiness.InresponsetothethreatsofChineseimportsonproduction activitiesandsocialcapitaloflocalfootwearenterprises,firmsdownsizedorstoppedbusiness,orresorted tootheralternatives. Chapter 10 InnovationinLuxuryFashionBusinessesasaMeansfortheRegionalDevelopment......................209 Elisa Giacosa, University of Turin, Italy Thefocusofthischapteristoprovidescientificevidencetoluxuryfashionbusinessesforcompeting inacompetitiveglobalmarket,providingforfurtherresearchopportunitiesoftheinnovationstrategy. Thankstoaqualitativemethod,inthischapteritemergedthattheinnovationstrategymayfocuson differentelements,suchasproductsandprocessesaccordingtotheframeworkdistinction.Evenifthe distinctionbetweenproductsandprocessesisnotalwaysclear-cut,ithasseveralimplications.Inthis chapter,theconnectionbetweenthecompanyanditsterritorypermitsthecreationofsomenetworks betweenseveralparties,producingaregionaldevelopment:theycouldimprovethecompetitivenessof thecompany,creatinganincreasedadvantageagainstitscompetitors. Chapter 11 ThePromotionofEntrepreneurshipinLowDensityRegions:TheCaseoftheAgencyforthe RegionalDevelopmentofAlentejo(ADRAL)...................................................................................226 Maria da Conceição Rego, Universidade de Évora, Portugal Maria Raquel Lucas, Universidade de Évora, Portugal Isabel Vieira, Universidade de Évora, Portugal Carlos Vieira, Universidade de Évora, Portugal Inthe1980s,therenewalofacademicinterestinentrepreneurshipasafactorofdevelopmenthighlightedthe roleofentrepreneursincreatingjobsanddrivinginnovation.Inthenewcentury,fosteringentrepreneurship becameapublicpolicypriority.InPortugal,thepracticeofcreatingbusinessincubatorshasbeengaining momentumandvariousinstitutionshavedevelopedbusinessincubationactivities.Thisstudyfocuson ADRAL-AgênciadeDesenvolvimentoRegionaldoAlentejo,anagencyfortheregionaldevelopment ofAlentejo,andanalyzeoneofitsinstrumentsforthepromotionofentrepreneurship–thecreationof businessincubators(alsodesignatedasenterprises’nests)locatedinMarvãoandMontemor-o-Novo. Thesechapterfocusonthesetwocasesandassessthedistinctiveaspectsofthepartnershipsbetweenthe developmentagencyandthemunicipalities,andalsothecharacteristicsoftheentrepreneurialprojects andrespectiveentrepreneurs,aimingatidentifyingthespecificitiesofthisapproachanditssuccess determinants. Chapter 12 PublicPoliciesImpactonThirdSectorSocialEnterprisesinUKRegions.......................................250 Chi Maher, St Mary’s University Twickenham, UK Thischapterprovidesanimportantperspectiveonhowpublicpoliciesimpactonsmallthirdsectorsocial enterprisesinUKregions.Theresearchemployedamultiplecasestudydesign(Stake,2006;Yin,2009). ofeightsmalldrugandalcoholthirdsectorsocialenterpriseorganisationsbasedinthreeUKregions (TheEastMidlands,TheSouthEast(includingLondon)andYorkshireandHumber).Semi-structured interviewswereconductedwith40operationalmanagers(individualsresponsibleforoverseeingthe day-to-daymanagementanddeliveryofservices)andeightCEOoftheseorganisationstoascertainhow governmentpolicyframeworkinfluencestheirservicedevelopmentandmanagerialcareerpaths.The researchfindingcontributestothefairlylimitedempiricalresearchinvestigatingregionalvariationsof thirdsectorsocialenterprises.Itadvocatesforchangesingovernmentregionalfundingpolicestohelp thesocialenterpriseorganisationstodevelopappropriateandeffectivecareermanagementsystems Chapter 13 HowdoEntrepreneurialEcosystemsInfluenceGrowthandDevelopment?ThecaseoftheSlovak Republic..............................................................................................................................................271 Katarína Petríková, Matej Bel University, Slovakia Kamila Borseková, Matej Bel University, Slovakia Nowadays,stakeholdersfrompublic,privateandnon-profitsectorsactinginvarioustypesofaggregation interritoriesandaretryingtofindeffectivewaystothedevelopment.Theaimofthechapteristoidentify andexplainthedifferentformsofentrepreneurialecosystemsaslocalproductionsystems.Andpresent examplesoffunctioningentrepreneurialecosystemsintheSlovakRepublic.Attheend,followingthe theoreticalbackgroundandtheresultsofthesecondaryandprimaryresearches,authorsidentifythekey problemareasthatshouldbeaddressedincollaborationwithstakeholdersinfluencingfutureterritorial developmentandgrowthoftheSlovakregions. Chapter 14 TheImpactofEntrepreneurialSustainableUniversitiesinRegionalDevelopment..........................297 Deniz Zaptcioglu Celikdemir, Yasar University, Turkey Alev Katrinli, Dokuz Eylul University, Turkey Thechapterpresentstheimpactofentrepreneurialsustainableuniversitiesinregionaldevelopmentby consideringtheeffectofinstitutionalapproach.Theaimofthechapteristoexplaintheconceptofan entrepreneurialsustainableuniversitywithininstitutionalapproach.Theentrepreneurialsustainabilityin highereducationisanalyzedanditsrelationshipwithotherconcepts,suchasethicsandcorporatesocial responsibility.Highereducationisimportantforsocialandeconomicdevelopment,theirrelationship withentrepreneurialsustainabilityshouldalsobeexamined.Theentrepreneurialactivitiesofuniversity anditscontributiontoregionaldevelopmentareemphasized. Chapter 15 AcademicEntrepreneurshipandKnowledgeTransferNetworks:TranslationProcessand BoundaryOrganizations.....................................................................................................................318 Hugo Pinto, University of Coimbra, Portugal Ana Rita Cruz, University Institute of Lisbon, Portugal Helena de Almeida, University of Algarve, Portugal ThischapterunderlinescontributionsthatScienceandTechnologyStudies(STS)cangivetotheanalysis oftheknowledgetransferprocessandacademicentrepreneurship.Thecentralobjectiveofthechapteris tounderstandthechallengesthatanacademicentrepreneurhastofacetoimplementaninnovativeidea. Toachievethisgoal,thechapterpresentstwospin-offcasestudiesfromtheAlgarveregion(Portugal). Thecasestudiespayattentiontoacademicentrepreneurshipinthemedicalfield(F1)andineco-tourism (E1).Itisgivenattentiontothetranslationphasesandtothenetworkcreation. Chapter 16 InnovationinExtremadura:OpportunityforCompaniesorObstaclefortheirDevelopment?..........347 Beatriz Corchuelo, University of Extremadura, Spain Francisco J. Mesías, University of Extremadura, Spain ThemainobjectiveofthischapteristoanalyzewhicharethebarriersperceivedbyExtremaduranfirms andhowthesebarriersaffecttheirwillingnesstoperforminnovativeactivitiesortobeinnovativefirms. Wehaveuseddatacollectedin2013fromanadhocsurvey.Resultsshowthat,firstly,therearedifferences intheperceptionofthebarriersespeciallyinyoungandexporterfirmsthatdetectmorebarriersalthough theyhaveastrongwillingnesstoinnovate.Secondly,evenifinnovationisconsideredanessentialsource ofcompetitiveness,thereisanimportantunwillingnesstoinnovateinnon-innovativefirms.Thisbehaviour isespeciallyduetobarriersrelatedwithhighcostsandfinancialrestrictionstoinnovate.Thesebarriers alsoreducethelikelihoodofthefirmstoinnovate.Bothinnovativeandnon-innovativefirmsdetectthe presenceofbarrierstoinnovationhighlightingtheperceivedlackofsupportfromgovernment. Chapter 17 EntrepreneurialTourism:TheCreationofBusinessOpportunitiesintheADRIMAGRegion, Portugal...............................................................................................................................................379 António Carrizo Moreira, University of Aveiro, Portugal Thechapterpresentsanentrepreneurialperspectivetoruraltourism.Itisbasedontheutilizationof endogenousresourcesthatexistwithinaruralregion,andleadstoagroupofbusinessopportunitiesrelated totourism,craftwork,andagriculture,whicharetakenintoaccounttodefinethestrategicobjectivesfor theADRIMAGregion.Thechapterfollowsaqualitativeapproachtobusinessopportunities.Through ouranalysis,itwaspossibletocreate,inasimplemanner,agroupofbusinessopportunitiesbasedon theendogenousresourcesoftheregion.Withthisstudy,weexpecttobringforthanentrepreneurial perspectivethatwillsustainablyfostertourismdevelopmentwithinruralregions,butwithhighpotential fortourismattraction. Chapter 18 DeterminantsofSelf-EmploymentEntry:EvidencefromPortugal...................................................408 Nadia Simoes, Instituto Universitário de Lisboa, Portugal Sandrina B. Moreira, Instituto Politécnico de Setúbal, Portugal Nuno Crespo, Instituto Universitário de Lisboa, Portugal Self-employmentisincreasinglyanattractivelabormarketoptionworldwide.InaEuropeancontext, Portugaliswell-knownfordisplayingoneofthehighestratesofself-employment.Thisstudyexplores themaindeterminantsoftheprobabilitytoenterintoself-employmentinPortugal.Wepresentresults fromabinarylogitmodelusingindividualdatadrawnfromnational-levelstatistics.Ourfindingssuggest thatindividualsolderthan35,males,married,loweducated,individualswithpreviousexperience,and headsofhouseholdareexpectedtoenterself-employment.Theempiricalstudyalsorevealsimportant differencesregardinghouseholds’compositionsanddimensions,currentandformerunemployment levels,andataregionallevelinPortugueseNUTSII. Chapter 19 HowSpanishUniversitiesarePromotingEntrepreneurshipthroughYourOwnLinesofTeaching andResearch?.....................................................................................................................................434 Dolores Gallardo-Vázquez, University of Extremadura, Spain M. Luisa Pajuelo-Moreno, University of Sevilla, Spain Twolinesofresearchfocusonthischapter:UniversitySocialResponsibilityandentrepreneurship. OnceUnivesritiesareawareoftheimportanceofintroducingsociallyresponsibleactions,werefer totheneedofUniversitiestofosterthecreationofnewbusiness,establishingthebestconditionsfor entrepreneurs.Inthissense,westudywhatentrepreneurshipmeansandhowitisinitiated.Atthesame time,wesettheeducationonentrepreneurshipandhowgenderdifferencesconditionthenewcreation offirms.Someexamplesofpromotingentrepreneurshiparediscussed,fromtheinitialactionsuntilthe maintainingandgrowingacompanyalreadycreated.Later,chapterconcentratesontheparticularcase ofSpanishUniversities,offeringalotofactionsforthepromotionofentrepreneurship,likeprojects, awards,chairs,masters,conferencesandmeeting.Itisalsoimportanttoconsiderthesupportofpublic administrationandtheroleofcluster.Thechapterfinisheswithsomeconsiderationsaboutspinoff,as theresultofentrepreneurshipfromtheUniversity. Chapter 20 TheRegion-of-OriginEffect:ImplicationsforRegionalDevelopmentPolicies................................458 José Manuel García-Gallego, University of Extremadura, Spain Antonio Chamorro Mera, University of Extremadura, Spain Themainobjectiveofthischapterwastodeterminethevariablesthatexplainandmoderatetheintention topurchaseregionalaspecificproduct,inparticular,wine.Someoftheselectedvariablesweredirectly relatedtoregionaldevelopment.Toachievethatgoal,andbasedontheliteraturereview,authorsdesigned astructuralmodeltostudytheROOeffectintheSpanishwinemarket.Themodelproposesdirectand indirecteffectsofthefollowingantecedentvariablesonthepurchaseintention:theregion’simage,the region’simageasaproducerinthisproductcategory,theperceivedqualityoftheregion’sproducts,and consumerethnocentrism.Theresultsofthisstudycontributetoguidingdecision-makingonthestrategies tobeimplementedbyregionalpublicinstitutionsincollaborationwiththewineindustry,bothofthem responsibleofcreatingvaluefortheregion.
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