Innovation and Entrepreneurship in Context
All lectures from the course MAN-MIE-001-2023
,Lecture 1
What is entrepreneurship? the presence of lucrative opportunities and the
presence of enterprising individuals (Shane & Venkataraman, 2000).
– ‘The examination of how, by whom, and with what effects opportunities to create
future goods and services are discovered, evaluated and exploited.’’
– Can include, but not requires, creation of new organizations. Can also occur in existing
organizations: intrapreneurship.
– Influence and interaction with institutional environment and so-called
ecosystems/opportunity structures (see next lecture) very important
Entrepreneurial opportunities
• Those situations in which new goods, services, raw materials, and organizing methods can
be introduced and sold at greater than their cost of production (Casson, 1982), at another
time, in another form or in another location
• These are objective, but recognition is a subjective process
• Individual can only earn profit if (s)he recognizes opportunity exists/has value
Why do some recognize opportunities, and others don’t?
1. Information corridors: possession of prior information necessary to identify an
opportunity (opp. structures and capital) re f.i. user needs.
2. Cognitive properties: vision of a good product or service and commercial
opportunities; risk-taking and prompt action.
Entrepreneurship and heroism
But; not always that heroic:
-Exploitation opportunity. not necessarily leads to success; 50% of all start-ups go bankrupt
after 5 years..... Why?
-Often through novo startups assumed; but opportunities also in
existing organizations (or sold to others)
Old/traditional ‘Trait school’
• -McClelland’s ‘key’ traits: pro-activity, assertiveness, strong 'internal locus of control', wish
for independence, high need for achievement, risk taking, innovative: a specific type
• -A somewhat bold, individual, ‘hero’
-But if these traits are biological, what’s the use of interventions (by policy makers)?
• -Or, can (things) be learned (to some extent)?
, • -How to explain deviant, successful entrepreneurs (in/from non- Western cultures f.i.?)
Criticism trait approach
• -Not dynamic enough; role of learning and preparation not enough included
• -Traits of people can change, and also many different traits by different
authors.....
Very few entrepreneurs possess all traits
• -How to define innovative? What do you find innovative?
• -Ignores culture, ethnicity, gender, and eco-systems!
It is improbable that entrepreneurship can be explained solely by reference to a
characteristic of certain people independent of the situations in which they find
themselves (Shane & Venkataraman 2000: 218).
Rather focus on ‘doing entrepreneurship’
• Our approach: people’s tendency to respond to the situational cues of opportunities; not to
define i.e. generalise a stable characteristic
• How is entrepreneurship in certain situations being ‘’done’’, and how do entrepreneurs
develop and apply their competences (learning!)
• And how is this entrepreneurship being done in relation to people’s identities? How do
entrepreneurs construct their entrepreneurial identities?
• So we focus on competences and identities, rather than universal (born) traits
• Competence refers to skills, expertise, being competent
• Entrepr. competences needed for business startup, growth, and successful
entrepreneurship (distinction with managerial competences, although some overlap)
• E.C. deeply rooted in person’s background (personality, attitudes, social role and self-
image) as well learned through work or training/education (knowledge and experience).
• Both entrepr. and managerial competences needed (in different stages)
Behavioral approach, process!
• Entrepreneurship part of complex process: a contextual event. Thus, important to study
what the entrepreneur does instead of what (s)he is.
• So: The entrepreneur is not a fixed state of existence, but rather a role that individuals
undertake to create new organizations or activities
