nep-ent New Economics Papers
on Entrepreneurship
Issue of 2013‒06‒16
fifteen papers chosen by
Marcus Dejardin
University of Namur and Universite' Catholique de Louvain

  1. The Decisions of Entrepreneurs and Their Agents: Revealed Levels of Risk Aversion and Betrayal Aversion By Dreber, Anna; Rand, David; Wernerfelt, Nils; Worrell, Peter; Zeckhauser, Richard
  2. Consequences of Cultural Practices for Entrepreneurial Behaviors By Autio, Erkko; Pathak, Saurav; Wennberg, Karl
  3. European spin-offs Origin, value creation, and long-term performance By Dmitri Boreiko; Maurizio Murgia
  4. Untangling the relationships among growth, profitability and survival in new firms By Delmar, Frédéric; McKelvie, Alexander; Wennberg, Karl
  5. Business Exits entail greater future levels of entrepreneurship? An empirical analysis at country level By Albiol, Judit
  6. Entrepreneurs, institutional entrepreneurship and institutional change. Contextualizing the changing role of actors in the institutionalization of temporary work in the Netherlands from 1960 to 2008 By Koene, B.A.S.; Ansari, S.M.
  7. The Relationship Between Innovation and New Firm Growth By McKelvie, Alexander; Brattström, Anna; Wennberg, Karl
  8. Innovation and firm growth: Does firm age play a role? By Coad, Alex; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes
  9. Importing, productivity and SMEs: firm-level evidence from the Netherlands By Marcel van den Berg
  10. Determinants of Decentralization within the Firm: Some Empirical Evidence from Spanish Small and Medium- Sized Enterprise By Pérez, Jessica Helen; Iranzo Sancho, Susana
  11. Financial constraints and the failure of innovation projects By Segarra Blasco, Agustí, 1958-; García Quevedo, José; Teruel, Mercedes
  12. Models and Methods of University Technology Transfer By Bradley, Samantha R.; Hayter, Christopher S.; Link, Albert N.
  13. Financial Development and Economic Growth: A Meta-Analysis By Roman Horvath
  14. La fabrique de l'entrepreneur familial. Une institutionnalisation du processus de transmission comme facteur de pérennité des entreprises familiales. By Paulette Robic; Dominique Barbelivien; Nicolas Antheaume

  1. By: Dreber, Anna (Stockholm School of Economics); Rand, David (Harvard University and Yale University); Wernerfelt, Nils (MIT); Worrell, Peter (Bigelow Company, Portsmouth, NH); Zeckhauser, Richard (Harvard University)
    Abstract: This paper studies decision making by successful entrepreneurs and their agents. Since entrepreneurs decisions are often influenced by their agents' advice, understanding the behavior of both involved parties is crucial in analyzing observed decisions. To this end, a sample of successful American entrepreneurs and their agents made a high-stakes decision in a real-world context, albeit in an experimental setting offering experimental-scale payoffs. They were asked whether to accept a contract in what was essentially a trust game. A monetary gamble measured economic risk taking; and the difference between the two measured betrayal aversion. All entrepreneurs assumed the professional role as principal. All individuals playing agent were real world agents. We also have some agents play the role of the principal, and thus test whether subjects' roles affect the decisions they make. Consistent with most prior studies, our subjects proved both economically risk-averse and betrayal averse. Little difference in behavior emerged between entrepreneurs and agents in their respective professional capacities, or with agents acting as principals. These results imply that, under our realistically framed business scenario with aligned incentives, agents could be relied upon to be "faithful," to act according to their principals' proclivities. Importantly, however, they do not advise against what many expert observers believe to be principals' excess aversion to risks. That is, they fail to act as "correcting agents".
    Date: 2013–05
  2. By: Autio, Erkko (Imperial College London Business School); Pathak, Saurav (Michigan Tech University); Wennberg, Karl (Ratio)
    Abstract: Although national culture is an important regulator of entrepreneurship, there is a dearth of studies that (i) explore the effects of national cultural practices on entrepreneurial behaviors by individuals; (ii) use appropriate multi-level research designs; (iii) consider the effects of culture on different entrepreneurial behaviors such as entry and post-entry growth aspirations. We combined Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effec-tiveness (GLOBE) data from 42 countries for 2005 – 2008 to address these gaps using a multi-level design. We found societal institutional collectivism practices negatively associated with entrepreneur-ial entry but positively associated with entrepreneurial growth aspirations. Uncertainty avoidance practices were negatively associated with entry but not with growth aspirations, while performance orientation practices were positively associated with entry. This highlights the differential effects of cultural practices on entrepreneurial entry and growth aspirations, and demonstratesthe value of multi-level techniques in analyzing the effect of culture on entrepreneurship.
    Keywords: Culture; Entrepreneurship; Multi-level
    JEL: F55 L26 M16
    Date: 2013–06–13
  3. By: Dmitri Boreiko (Free University of Bolzanoâ€Bozen, School of Economics and Management.); Maurizio Murgia (Free University of Bolzanoâ€Bozen, School of Economics and Management.)
    Abstract: This paper tests the empirical validity of theoretical predictions on corporate spin-offs motivations and ex-post performance. Using a unique data set of completed spinoffs in twelve European countries we show that spin-off decisions are frequently triggered by firm’s governance changes, such as the appointment of a new CEO or a takeover threat. Post-transaction long-run stock returns and operating performance are observed for spin-off firms only, and mostly for internally-grown business units and parent-related (non-focusing) subsidiaries. We find no evidence that post-spin-off mergers of either parents or subsidiaries enhance long-term performance, or that focus-increasing spin-offs lead to efficiency improvements.
    Keywords: Spin-offs; Long-run performance; European corporate finance.
    JEL: G14 G32 G34
    Date: 2013–06
  4. By: Delmar, Frédéric (Sten K. Johnson Centre for Entrepreneurship School of Economics and Management); McKelvie, Alexander (Syracuse University); Wennberg, Karl (Ratio)
    Abstract: The performance of new firms is important for economic development but research has produced limited knowledge about the key relationships among growth, profitability, and survival for new firms. Based on evolutionary theory, we develop a model about how new firms resolve uncertainty about their ability to prosper in a market by monitoring changes in profitability. Our model predicts selection pressures to weed out underperforming firms and learning to allow survivors to improve performance and grow. We test our theory using a unique panel of knowledge-intensive new firms in Sweden. We find strong support for the notion that profitability enhances both survival and growth, and growth helps profitability but has a negative effect on survival. Implications are discussed.
    Keywords: Entrepreneurship; New Firms
    JEL: L22 L26 M13
    Date: 2013–06–13
  5. By: Albiol, Judit
    Abstract: Using Global Entrepreneurship Monitor data for 41 countries this study investigates the impact of business exit on entrepreneurial activity at the country level. The paper distinguishes between two types of entrepreneurial activity according with the motive to start a new business: entrepreneurs driven by opportunity and necessity motives. The findings indicate that exits have a positive impact on future levels of entrepreneurial activity in a country. For each exit in a given year, a larger proportion of entrepreneurial activity the following year. Moreover, this e ffect turns out to be higher for opportunity entrepreneurs. The findings indicate that both types of entrepreneurial activity rates are influenced by the same factors and in the same direction. However, for some factors we find a di fferential impact on the entrepreneurship. The results show some important implications given that business exit may be overcome when there is a necessity motivation. This has important implications for both researchers and policy makers. JEL codes: L26. Keywords: Entrepreneurship, business exit, social values
    Keywords: Emprenedoria, Èxit en els negocis, Empreses -- Aspectes socials, 33 - Economia,
    Date: 2012
  6. By: Koene, B.A.S.; Ansari, S.M.
    Abstract: The intersection of entrepreneurship research and institutional theory has begun to attract increasing scholarly attention. While much recent research has studied "institutional entrepreneurs" credited with creating new or transforming existing institutions to support their projects, less attention has been paid to the institutions that constitute the menus from which choices are made, and delineate resources for entrepreneurial or other agentic activities. While models of institutionalization frequently break down the process into different categorical stages, how an evolving context affords changing agentic latitude for actors merits more attention. We study the institutionalization of 'temporary work', a new employment practice led by temporary work organizations, a new organizational form in the Netherlands from the 1960s to 2008. Our account suggests an 'ecological' imagery of institutionalization; rather than entrepreneurs' with predetermined agendas shaping and reshaping institutions, we observed distributed institutional entrepreneurship – entrepreneurs seeking change in concert and in conflict with other interdependent actors simultaneously creating, disrupting and maintaining institutions. By examining how an evolving context influences the role of "actor configurations", whose actions, interactions and counteractions can collectively lead to change, but also unintended outcomes, we highlight the non-teleological nature of institutionalization. Finally, our findings suggest that while the legitimacy of a novel practice grows with increasing institutionalization, legitimacy contests may recur and that increasing institutionalization may provide the backdrop for novel practices to emerge.
    Keywords: labor market;institutionalization;change;context;institutional entrepreneurship;institutional work;temporary work;organizational fileds
    Date: 2013–06–05
  7. By: McKelvie, Alexander (Syracuse University); Brattström, Anna (Stockholm School of Economics); Wennberg, Karl (Ratio)
    Abstract: This paper seeks to untangle the relationship between new firm’s innovative activities and subsequent growth. We theorize about the inter-related roles of managerial growth willingness, inputs and outputs of innovative activities, and their subsequent link to sales growth. Investigating a longitudinal sample of 282 new Swedish firms reveals a complex set of mediating relationships that, when combined, help explain how innovation affects growth. First, we find growth willingness has an important relationship with innovative inputs such as R&D and market knowledge competence. Second, these inputs affect important innovative outputs such as new product development and the percentage of sales from new products. Third, these outputs directly affect growth – whereas the innovative inputs such as R&D do not have a direct impact. Taken together, our paper highlights the joint importance of managerial attitudes and strategic choices that help to shed new light on the effect of innovation on new firm growth. Implications for research and public policy are discussed.
    Keywords: New Firm Growth; Innovation; RD; Growth Willingness
    JEL: L22 L26 M13
    Date: 2013–03–05
  8. By: Coad, Alex; Segarra Blasco, Agustí, 1958-; Teruel, Mercedes
    Abstract: This paper explores the relationship between firm growth, innovation and firm age. We hypothesize that young firms undertake riskier innovation activities and are more oriented towards employment growth than towards harvesting returns in the form of sales growth. Using an extensive sample of Community Innovation Survey for the period 2004-2010, we apply quantile regressions and a Heckman sample selection technique to study the impact of R&D activities on firm growth according to firm age. Our results show that R&D intensity is positively associated with firm growth. However, for young firms R&D shows an increasing influence across the quantiles, while for old firms R&D shows a stable or perhaps decreasing effect over the quantiles. Firm age shows a significant negative impact among young firms, while for the sample of old firms the impact of firm age becomes non-significant. Our Heckman estimations show the evolution of the impact of the R&D on firm growth confirming a significant impact on sales and productivity growth, while the impact is negligible for employment growth. Keywords: firm age, firm growth, innovation, quantile regression. JEL CODES: L25, L20
    Keywords: Empreses -- Creixement, Organització industrial, Innovacions tecnològiques, 33 - Economia,
    Date: 2013
  9. By: Marcel van den Berg
    Abstract: Constructing a comprehensive data set covering Dutch firms over the years 2002-2008 I am the first to investigate the relationship between trade status, firm size and firm-level productivity in the Netherlands, thereby focusing particularly on small and medium sized enterprises (SMEs). The empirical evidence can be summarized in four stylized facts. The productivity ranking by trade status of Dutch manufacturing firms in increasing order of productivity is: non-traders, importers, exporters and two-way traders. Firm size and being controlled by a company located abroad are positively associated with firm-level productivity. The results point in the direction of self-selection of more productive manufacturing firms into importing, particularly for firms that did not trade altogether prior to the import start and for build-up periods of two and three years towards the import start. I do not find evidence that firms become more productive after an import start because of learning effects. I find considerable heterogeneity in the productivity premia of trade along the firm size distribution. The results suggest that exporting is more complex than sourcing inputs internationally for small firms relative to larger firms.
    Keywords: Micro data, firm heterogeneity, imports, exports, productivity, the Netherlands
    JEL: D22 F14 F23
    Date: 2013–06
  10. By: Pérez, Jessica Helen; Iranzo Sancho, Susana
    Abstract: This paper examines empirically the determinants of decentralization of decision- making in the firm for small and medium-sized enterprises (SMEs) that tend to be highly centralized. By decentralization of decisions we mean the delegation of decision rights from the owner or manager to the plant supervisor or even to floor workers. Our findings show that the allocation of authority to basic workers or a team of workers depends on firm characteristics such as firm size, the use of internal networks or the number of workplaces, and workers characteristics, in particular, the composition of the laborforce in terms of education and seniority and whether or not workers receive pay incentives. External factors such as the intensity of competition and the firm s export intensity are also important determinants of the allocation of authority.
    Keywords: Empreses petites i mitjanes, Empreses -- Presa de decisions, 33 - Economia,
    Date: 2012
  11. By: Segarra Blasco, Agustí, 1958-; García Quevedo, José; Teruel, Mercedes
    Abstract: Theoretical and empirical approaches have stressed the existence of financial constraints in innovative activities of firms. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. In the empirical analysis carried out for a panel data of potential innovative Spanish firms for the period 2004-2010, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage and that low-technological manufacturing and non-KIS service sectors are more sensitive to financial constraints. Keywords: barriers to innovation, failure of innovation projects, financial constraints JEL Classifications: O31, D21
    Keywords: Innovacions tecnològiques, Conducta organitzacional, 33 - Economia,
    Date: 2013
  12. By: Bradley, Samantha R. (University of North Carolina at Greensboro, Department of Economics); Hayter, Christopher S. (New York Academy of Sciences); Link, Albert N. (University of North Carolina at Greensboro, Department of Economics)
    Abstract: This paper argues that a linear model of technology transfer is no longer sufficient, or perhaps even no longer relevant, to account for the nuances and complexities of the technology transfer process that characterizes the ongoing commercialization activities of universities. Shortcomings of the traditional linear model of technology transfer include inaccuracies—such as its strict linearity and oversimplification of the process, composition, a one-size-fits-all approach, and an overemphasis on patents—and inadequacies—such as failing to account for informal mechanisms of technology transfer, failing to acknowledge the impact of organizational culture, and failing to represent university reward systems within the model. As such, alternative views of technology transfer are presented here that better capture the progression of the university towards an entrepreneurial and dynamic institution, and that advance the body of knowledge about this important academic endeavor.
    Keywords: Technology transfer; Entrepreneurial university; Intellectual property; Patents; Innovation; Commercialization
    JEL: L26 O31 O34
    Date: 2013–06–06
  13. By: Roman Horvath (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)
    Abstract: We analyze 1334 estimates from 67 studies that examine the effect of financial development on economic growth. Taken together, the studies imply a positive and statistically significant effect, but individual estimates vary a lot. We find that both research design and heterogeneity in the underlying effect play a role in explaining the differences in results. Studies that do not address endogeneity tend to overstate the effect of finance on growth. While the effect seems to be weaker in poor countries, the effect decreases worldwide after the 1980s. Our results suggest that stock markets support faster economic growth than other financial intermediaries. We find no evidence of publication bias in the literature.
    Keywords: finance, development, growth, meta-analysis
    JEL: C83 G10 O40
    Date: 2013–05
  14. By: Paulette Robic (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Dominique Barbelivien (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Nicolas Antheaume (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272)
    Abstract: Dans cet article nous cherchons à comprendre comment, en vue d'une transmission à la génération suivante, les successeurs potentiels d'une entreprise familiale sont façonnés pour passer du statut d'héritier à celui d'entrepreneur familial. Dans une première partie nous expliquons à partir d'une revue de littérature, comment se fabrique l'entrepreneur familial en passant par des processus de socialisation qui génèrent de l'engagement, qui permet à son tour aux entrepreneurs en devenir d'accepter ou de choisir, selon les circonstances, le rôle qui leur est dévolu. En croisant ces concepts avec la littérature sur les entreprises familiales nous montrons que le concept de familiness est à la fois présent comme élément du processus de fabrique et comme produit de ce processus, se renforçant ainsi par lui-même. Dans une deuxième partie nous présentons l'entreprise familiale et la famille étudiée. Dans une troisième partie, pour donner à comprendre la fabrique de l'entrepreneur, nous utilisons les repères théoriques présentés dans la première partie pour analyser deux processus de transmission (de la 3e à la 4e génération et de la 4e à la 5e génération).
    Keywords: entrepreneur familial, héritier, socialisation, engagement, familiness, transmission, pérennité
    Date: 2013–04–02
  15. By: Serge Lenga (ERSICOM - Equipe de Recherche sur les Systèmes d'Information et de Communication des Organisations et des Medias - Université Jean Moulin - Lyon III, CEREGE - Centre de Recherche en Gestion et Entrepreneuriat - Université Marien Ngouabi)
    Abstract: Le processus de création des entreprises se fonde sur les initiatives de l'entrepreneur vu comme le principal acteur des interactions situées cœur du milieu d'affaires. Il détermine la sélection de l'environnement dans lequel il souhaite développer les opportunités d'affaires repérées. Cette approche suppose que l'entrepreneur adapte son comportement en fonction de la perception et de l'interprétation des opportunités d'affaires qu'il découvre dans son environnement, à partir de ses propres capacités cognitives. La saisie des opportunités apparait donc comme un processus de construction cognitive qui engage les dimensions de l'espace géo-environnemental. Nous explorons les logiques de cette construction et nous proposons une interprétation de cette mise en scène pour la période allant de 2001 à 2009 sur le répertoire des entreprises créées et enregistrées dans les statistiques nationales congolaises.
    Keywords: Cognition Spatiale ; Environnement ; Opportunités d'affaires ; Géographie
    Date: 2013–05–22

This nep-ent issue is ©2013 by Marcus Dejardin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.