Summary Entrepreneurship Articles 2020
Week 1: Introduction to entrepreneurship
1. Thurik, R., Stam, E., & Audretsch, D.B. (2013). The rise of the entrepreneurial economy
and the future or dynamic capitalism, Technovation, 33, 302-310.
2. Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of
research, Academy of Management Review, 25(1), 217-226.
3. Kuratko, D.F., Morris, M.H., & Schindehutte, M. (2015). Understanding the dynamics of
entrepreneurship through framework approaches, Small Business Economics, 45, 1-13.
4. Churchill, N.C. & Lewis, V.L. (1983). The five stages of small business growth, Harvard
Business Review, May-June 1983, 30-50.
Week 2: The entrepreneur
1. Santos, S.C., Caetano, A., & Curral, L. (2013). Psychosocial aspects of entrepreneurial
potential. Journal of Small Business & Entrepreneurship, 26(6), 661-685.
2. Zhao, H. & Seibert, S.E. (2006), The big five personality dimensions and entrepreneurial
status: a meta-analytical review, Journal of Applied Psychology, 91(2), 259-271.
3. Caliendo, M., Fossen, F., & Kritikos, A. (2010), The impact of risk attitudes on entrepre-
neurial survival, Journal of Economic Behavior and Organization, 76, 45-63.
Week 3: Getting started!
1. Fisher, G. (2012). Effectuation, causation and bricolage: a behavioral comparison of
emerging theories in entrepreneurship research, Entrepreneurship: Theory & Practice,
36(5), 1019-1051.
2. Smolka, K.M., Verheul, I., Burmeister-Lamp, K. & Heugens, P.P.M.A.R. (2018). Get it to-
gether! Synergistic effects of causal and effectual decision-making logics on venture
performance. Entrepreneurship: Theory & Practice, 42(4), 571-604.
3. Colombo, O. (2020). The use of signals in new-venture financing: a review and research
agenda, Journal of Management, DOI: 10.1177/0149206320911090.
4. Linder, C., Lechner, C. & Pelzel, F. (2020). Many roads lead to Rome: how human, social
and financial capital are related to new venture survival, Entrepreneurship: Theory &
Practice, 44(5), 909-932.
Week 4: Developing and maintaining the entrepreneurial business
1. Wiklund, J., Patzelt, H. & Shepherd, D.A. (2009). Building an integrative framework of
small business growth. Small Business Economics, 32: 351-374.
2. Sharma, P. & Chrisman, J.J. (1999). Towards a reconciliation of the definitional issues in
the field of corporate entrepreneurship. Entrepreneurship: Theory & Practice, 23(3), 11-
27.
3. Kollmann, T. & Stöckmann, C. (2012). Filling the entrepreneurial orientation-performance
gap: the mediating effects of exploratory and exploitative innovations. Entrepreneurship:
Theory & Practice, 38(5), 1001-1026.
4. Garvin, D.A. & Levesque, L.C. (2006). Meeting the challenge of corporate entrepreneur-
ship. Harvard Business Review, 84(10), 102-112.
Week 5: Entrepreneurship and institutions
1. Sobel, R.A. (2008), Testing Baumol: Institutional Quality and the Productivity of Entre-
preneurship, Journal of Business Venturing, 23(6):641-655
2. Baumol, W. J. (1990), Entrepreneurship: Productive, Unproductive, and Destructive, Jour-
nal of Political Economy, 98, 893-921.
3. Stenholm, P., Acs Z.J., Wuebker, R. (2013), Exploring country-level institutional arrange-
ments on the rate and type of entrepreneurial activity, Journal of Business Venturing,
28(1), 176-193.
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,Week 1: Introduction to entrepreneurship
Thurik, R., Stam, E., & Audretsch, D.B. (2013). The Rise Of The Entrepreneurial Economy And
The Future Or Dynamic Capitalism
Abstract
A major shift in the organization of developed economies has been taking place: away from
what was been characterized as the managed economy towards the entrepreneurial economy
(also called dynamic capitalism by Kirchhoff (1994)). The purpose of this paper is to analyze the
main factors leading to this shift and implication for public policy, like technical change, the
demise of the communist system, increased globalization, corporate reorganization, increased
knowledge production and higher levels of prosperity.
1 Introduction
Stability, continuity and homogeneity were the cornerstones of the managed economy. The
managed economy is defined as “an economy where economic performance is positively re-
lated to firm size, scale economies and routinized production and innovation”. The managed
economy has been replaced by the entrepreneurial economy. By contrast, entrepreneurial
economy is defined as “an economy where economic performance is related to distributed
innovation and the emergence and growth of innovative ventures”. This replacement did hap-
pen in most developed countries. The entrepreneurial economy is characterized by a conver-
gence of institutions and policy approaches designed to facilitate the creation and commercial-
ization of knowledge through entrepreneurial activity.
The purpose of this paper is to explain why the shift from the managed to the entrepreneurial
economy has taken place in the framework of a model. In the model technical change is the
crucial element of the explanation, supported by factors, including increased globalization, cor-
porate reorganization, increased knowledge production and higher levels of prosperity.
2 A model of the shift to the entrepreneurial economy
Fig. 1 summarizes the links identified and analyzed
in this paper. Factors underlying the shift to the en-
trepreneurial economy. The arrow numbers refer
to the sections below.
The starting point for this shift was the shock of the
ICT revolution emerging in the 1970s. ICT can be
considered a general-purpose technology.
3 Information and communication technology
3.1 The rise of ICT and entrepreneurship
ICT has made entrepreneurship, in the form of
new firms and small firms more competitive. There
has never been a better time to be a talented entrepreneur that in the current ICT revolution,
evidence by firms like Google, Facebook and Skype. These effects are due to the new technol-
ogy, which creates new markets, while also destroying incumbent market positions and the
entry barriers typical for the older technology and its markets.
3.2 ICT and corporate reorganization
There are two additional reasons specific to ICT that have reduced the competitive advantage
of large firms; 1) ICT tools and open access to the Internet created a worldwide platform for
relations between firms irrespective of their size, and 2) scale effects in transaction costs when
firms engage in deals, attempt to do so or wish to monitor them.
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,4 ICT and the demise of the communist system
A third factor conducive to entrepreneurship comes from the demise of Soviet communism. It
seems that the role of ICT and its inevitable relationship with democracy and economic growth
are behind the demise of the Soviet system. Through access to new mass media based on
advanced ICT, Soviet citizens were able to see the advantages and opportunities of capitalism.
An increasing amount of information about the Western lifestyle became available in the Soviet
Union through ICT.
5 Globalization
ICT is not the sole factor or reason for the shift. A second factor involves the process of global-
ization. The term is generally connected to the (rapid increase of) free movement of goods,
capital, people and ideas around the globe.
5.1 ICT and globalization
ICT itself facilitated the emergence of contemporary globalization. The resulting new communi-
cation technologies triggered a virtual spatial revolution in terms of the geography of produc-
tion, with products like computers and mobile phones being invented, designed, produced and
marketed in completely different places. The telecommunications revolution has successfully
reduced the cost of transmitting information across geographic space to virtually zero. The mi-
croprocessor revolution has made it feasible for nearly everyone to participate in global com-
munications, via e.g. email, mobile, telephony and internet phone services.
5.2 The demise of the communist system and the rise of globalization
It demanded a political revolution in significant parts of the world to reap the full benefits from
the technological changes. The fall of the Berlin Wall in 1989 and the subsequent downfall of
communism was a catalyst for stability and accessibility to parts of the world that had been
inaccessible for decades. The Soviet empire quickly vanished, along with its friendship prices
and raw material subsidies. The non-communist’s part of the world became accessible as a
trading and investment partner after opening its economy in the early 1990s.
5.3 Globalization and corporate reorganization
Although the most salient feature of globalization involves interactions and interfaces among
individuals across national boundaries, the more traditional measures of transnational activity
reflect an upward trend in global activities. These traditional measures include trade (exports
and imports), foreign direct investment (inward and outward), international capital flows, and
inter-country labor mobility. The overall trend in all of these measures has been strongly posi-
tive.
6 Corporate reorganization
The pressures of globalization and the ICT revolution led to waves of reorganizations in the
world of large corporations that provided the essence of the managed economy. This has led
to new business models of large corporations, and more quantitatively, to downsizing of estab-
lished corporations and increases in the number of new firms.
6.1 Corporate reorganization and entrepreneurship
Confronted with lower cost competition in foreign locations, many European and North Ameri-
can firms resorted to substituting capital and technology for labor, reorganizing the production
chain towards subcontracting along with shifting (parts of) production to lower-cost locations.
This practice has resulted in waves of corporate downsizing throughout Europe and North
America. Outward foreign direct investment from developed countries is a manifestation of out-
sourcing and offshoring, which corresponds to displaced employment in the home country. The
displaced employment of skilled workers provides an opportunity for (nascent) entrepreneurs
to redeploy those workers by creating value in a newly formed organization. Thus, as
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, globalization spreads, employment tends to stop increasing and even decreases in large, in-
cumbent firms, generating entrepreneurial opportunities for new firms and small firms.
6.2 Corporate reorganization intro knowledge-based economic activity
An important implication from the impact of the twin horns of the ICT revolution and globaliza-
tion has been an erosion of firm competitiveness. Outsourcing of lower value-added economic
activity to lower cost countries has been pervasive within the OECD countries. An important
implication of this trend towards reorganization is that the lower skilled workers find it more
difficult to maintain or find work in OECD countries, while knowledge-based workers enjoy a
strong demand, resulting in a divergence of unemployment rates between highly skilled and
unskilled workers
7 Knowledge production
The policy response to globalization, both in public policy debates and in the economics litera-
ture, was to shift the source of competitiveness and growth away from physical capital and to-
wards knowledge and ideas. The notion is that knowledge behaves like a public good that an
entire economy can use. In the knowledge production function approach, firms exist exoge-
nously and then engage in the pursuit of new knowledge as an input into the process of gener-
ating innovative activity. Knowledge as an input in a production function is inherently different
from the more traditional inputs of labor, capital, and land. Although the economic value of the
traditional inputs is relatively certain, knowledge is intrinsically uncertain, and its potential value
is asymmetric across economic agents. The knowledge spillover theory of entrepreneurship
provides insights into how investments in knowledge are a source of entrepreneurial opportu-
nities. The theory starts from the assumption that, given constant individual characteristics, en-
trepreneurial decisions are driven by the context, in particular by the knowledge intensity of the
context. Therefore, entrepreneurship is not only exogenously driven by individual characteris-
tics, but it is also driven by the endogenous response to opportunities created by the context.
Due to the non-rivalrous nature of knowledge as an asset, it may spillover such that the produc-
ers of knowledge are unable to appropriate the entire value of their knowledge for themselves.
These spillovers serve as a source of opportunities for other firms and individuals seeking to
start new businesses. The knowledge spillover theory of entrepreneurship states that entrepre-
neurial activity is greater in the presence of higher investments in knowledge.
This argument is supported by Audretsch and Lehmann (2005) and Kirchhoff et al. (2007),
among others, who show that regions with greater investments in new knowledge also have
higher startup rates. Block et al. show that a high rate of entrepreneurship facilitates the process
of turning knowledge into new-to-the-market innovation but has no effect on the relationship
between knowledge and new- to-the-firm innovation.
8 Prosperity and entrepreneurship
Both investments in ICT and globalization are found to be drivers of economic growth, leading
to high levels of prosperity. Leading to a more service-oriented economy, a differentiation in
consumer demands and a shift in occupational preferences. All three, independent of organi-
zational and knowledge-based restructuring, lead to increased room for entrepreneurship;
1) The increase in the service orientation of developed economies is due to relatively high-
income elasticities of personal and social services combined with their relatively low
labor productivity,
2) The increase in individual wealth has led to a growing differentiation of consumer pref-
erences, and business opportunities, and
3) The supply side of entrepreneurship is influenced by the drivers of occupational choice.
9 Implications for public policy
the identification of the factors underlying why this shift actually occurred leads to a rethinking
of the policy conclusion. Rather than a narrow focus on promoting new firms and small firms,
the appropriate response of public policy should be to re-think the policy approach in a broad
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