Lunds universitet i världsklass

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ESU Conference 2009 on Entrepreneurship

Benevento, 9-12 September 2009

What can we learn from the history of entrepreneurship?

Hans Landström

Institute of Economic Research/CIRCLE

Lund University, Sweden

Email: hans.landstrom@fek.lu.se

Main Arguments

History matters!

1.

Some of the best and most influential works were written in early days of entrepreneurship research, of which many are intellectual achievements that are stimulating to read.

2.

It is a question of knowledge accumulation

 not ”invent the wheel” everytime starting a new study.

3.

Today we can see an increased interest in a theoretical development of the field, and we are borrowing of concepts and theories from other research fields …

 and when borrowing from other fields we need to understand the roots and assumptions on which these concepts and theories are based.

Lunds universitet / Hans Landström

Three Eras of Entrepreneurship Research

1870-1940

Economics Era

1940-1970 1970 -

Social Science Management

Era Studies Era

1870 1900

Lunds universitet / Hans Landström

1950 2000

Disciplinary Focus – Advantages and Disadvantages

Integrated within main stream disciplines

1.

No need to reinvent the wheel.

2.

Entrepreneurship research is required to meet the quality criteria of the discipline (academic legitimacy).

Liberation from main stream disciplines …

1.

Complex phenomena (existing theories not always optimal).

2.

Research community in entrepreneurship (tacit knowledge).

3.

Focus on the most central questions of entrepreneurship.

Lunds universitet / Hans Landström

Three Eras of Entrepreneurship Research

1870-1940

Economics Era

1940-1970 1970 -

Social Science Management

Era Studies Era

1870 1900

Lunds universitet / Hans Landström

1950 2000

Cognitive and Social Dimension of Research

Cognitive dimension of research

Including a general delimitation of and background knowledge about the study object as well as accepted methods and ways of reasoning.

Social dimension of research

Expressed in terms of organized forums for communication between researchers within the field, role models, and educational programs that provide and define the minimum competence required of researchers within the field.

Lunds universitet / Hans Landström

Development of Entrepreneurship Research

Cognitive dimension

Take off phase Growth phase Searching maturation

Social dimension

Lunds universitet / Hans Landström

The Environment During the 1950s and 1960s

• Schumpeter (1942)

”… what we have got to accept is that the large-scale establishment has come to be the most powerful engine of progress.” (p 106)

• Galbraith (1967)

Provided an important rationale for an economic policy oriented toward the large corporations. He argued that innovative activities as well as improvements in products and processes were most effeciently carried out in the context of large corporations.

• Servan-Schreiber (1968)

Warned Europeans to be aware of The American Challenge in the form of the ”dynamism, organization, innovation, and the boldness that characterize the giant American corporation.”

Lunds universitet / Hans Landström

Social Changes in the 1960s and 1970s

- Dynamics in society (… change in industrial structure)

- Economic problems (… unemployment)

- Change in fashion (… ”small is beautiful”)

- Increased political interest (… Keynes’ ideas questioned)

Development in society

- Studies supporting the prevailing trends

- Data bases and data capacity

Cognitive aspects

Macro-level analysis

Small business economics

- Demand from students

- External donors

- Support programs

Social aspects

Micro-level analysis

Management studies

Lunds universitet / Hans Landström

David Birch: The Job Generation Process (1979)

Birch’s contribution was that he realized that no data were available to resolve various questions related to job creation, and he utilized and reshaped existing data in a way that they could be used for longitudinal analyses

(Dun & Bradstreet data base 1969-1976).

• The majority of new jobs were created with 20 or less employees – often independent and young firms (thus, it was not the large firms that created new jobs).

• The report (54 pages) was sold in twelve copies, but its influence was enormous (among policy makers as well as research community).

• Considerable debate, but many of the findings have proved very robust and have been verified in many later studies (Storey, Kirchhoff, Reynolds,

Davidsson).

Lunds universitet / Hans Landström

Take Off Phase – the Inflow of Researchers From

Different Research Disciplines

Pioneers – macro-level analysis (small business economics)

Job generation: David Birch, David Storey, Catherine Armington, Marjorie

Dynamics of industries:

Innovation:

Regional development:

Odle, David Evans, etc.

Richard Nelson, Sidney Winter, William Brock, David Evans

Robert Lucas, Linda Leighton, Bruce Kirchhoff, etc.

Zoltan Acs, David Audretsch, Bo Carlsson, Roy Rothwell, etc.

Giacomo Becattini, Sebastiano Brusco, Werner Sengenberger,

Charles Sabel, David Storey, Ray Oakey, etc.

Pioneers – micro-level analysis (management studies)

Allan Gibb, David Kirby, Bengt Johannisson, Arnold Cooper, Charles Hofer,

Jeffry Timmons, William Bygrave, Ian MacMillan, Jeffrey Covin, Dennis Slevin,

William Gartner, Howard Stevenson, Sue Birley, William Wetzel, Edward

Roberts, Jim Curran, John Stanworth, Robert Hisrich … and many many more …

Lunds universitet / Hans Landström

Take Off Phase – Cognitive Dimension

Researchers picked up where social scientists left of

 searching for entrepreneurial traits and characteristics (anchored in McClelland, Collins, et al., Smith)

• Low entry field

Discovery of a new phenomenon

Churchill (1992) made an analogy to the six blind men and the elephant:

It was an unstructured exploration of the elephant

– the researchers discovered that this animal was different, that it was composed of a number of unusual parts, and that it was quite large.

Lunds universitet / Hans Landström

Take Off Phase – Social Dimension

Individualism

– the research community was small and fragmented

Emerging ”arenas” for entrepreneurship scholars

• Professional organizations

ICSB 1977 (1956), ECSB 1988, Academy of Management Entrepreneurship

Division 1987 (1974)

• Academic conferences

Rencontres de St-Gall 1948, and ICSB 1956, UK Small Firm Policy and Research

Conference 1979, Nordic Conference on Small Business 1980, Babson Conference

1981, RENT Conference 1987

• Scientific journals

Explorations in Entrepreneurial History 1949, Internationales Gewerbearchive

1952, Journal of Small Business Management 1955, American Journal of Small

Business 1977 (ETP 1988), European Small Business Journal 1982 (today ISBM),

Journal of Business Venturing 1985, Entrepreneurship & Regional Development

1989, Small Business Economics 1989

Lunds universitet / Hans Landström

Development of Entrepreneurship Research

Take Off Phase

Searching maturation

Cognitive dimension

Social dimension

Take off phase

Explorative driven

Practical orientation

Pragmatic methodology

Strong links to society

Individualism

Growth phase

Pioneers

Lunds universitet / Hans Landström

Growth of Entrepreneurship Research

8000

6000

4000

2000

0

16000

14000

12000

10000

Lunds universitet / Hans Landström

Publication Year

Cum No Pub

Growth Phase

Cognitive Dimension

Systematic shift from an interest in the entrepreneur as an individual

(entrepreneurial traits) to contextual and processual aspects.

William Gartner, 1985, A conceptual framework for describing the phenomenon of new venture creation,

Academy of Management Review .

William Gartner, 1988, Who is the entrepreneur? is the wrong question,

American Journal of Small Business .

Lunds universitet / Hans Landström

Changing Focus in Entrepreneurship Research

(Bygrave & Hofer, 1991)

Traditional focus New focus

Characteristics Characteristics of the entrepreneur of the process

Key questions: - Who becomes entrepreneurs?

(un)successful entrepreneurs?

- What’s involved in perceived opportunities effeciently?

- Why do people - What are the key tasks in successfully become entrepreneurs? establishing new organizations?

- What characterize - How are these tasks different from managing ongoing companies?

Lunds universitet / Hans Landström

Growth Phase – Social Dimension

• Organized forums for communication (eg. 44 English-language refereed scientific journals).

• Role models and ideals (eg. 277 endowed chairs in the US).

• Educations programs in entrepreneurship (eg. more than 2,200 courses in entrepreneurship and small business in the US, and an increased number of

Ph D programs). (Katz, 2003).

Conclusion

A rather advanced social structure for entrepreneurship research, and probably the social dimension has developed faster than the cognitive dimension of entrepreneurship research (descriptive and fragmented – potpurri of research [Low, 2001], mosaic of issues [Zahra, 2005],

” we are getting more pieces of the puzzle but no picture is emerging

[Koppl & Minniti, 2003]).

Lunds universitet / Hans Landström

Development of Entrepreneurship Research

- Growth Phase

Cognitive dimension

Social dimension

Take off phase

Explorative driven

Growth phase

Phenomenon and empirical driven fragmentation

Policy orientation

Practical orientation

Pragmatic methodology

Improved empirical methodology

Strong links to society

Individualism

Pioneers

Strong links to the topic

Social infrastructure

(Bounded)multidisciplinary

Lunds universitet / Hans Landström

Searching maturation

A New Change – the Domain of

Entrepreneurship Research

Sankaran Venkataraman and Scott Shane

Entrepreneurship is a scholarly field that seeks to understand how opportunities to bring into existence

”future” goods and services are discovered, created, and exploited, by whom, and with what consequences.

( Academy of Management Review , 2000)

Domain discussion

1. Domain approach

2. Integrative approach

3. Multi-research approach

Lunds universitet / Hans Landström

Search for Maturation – Cognitive Dimension

1. A realization that entrepreneurship is a complex, heterogeneous and multi-level phenomenon

– Contextualizing entrepreneurship

+ topics (corporate, social, etc.)

+ spatial (different countries)

– Specific knowledge (Cornelius et al., 2006) and specific language (Karlsson, 2008)

– From fragmentation to specialization  emerging ”research circles” (ETP, 2006)

2. The return of economics and psychology (cognition)

Lunds universitet / Hans Landström

Search for Maturation – Social Dimension

350

300

250

200

450

400

150

100

50

0

1950 1960 1970 1980

Publication year

1990 2000 2010

Business & Management

Economics

Sociology

Psychology

133 other subfields

Lunds universitet / Hans Landström

Development of Entrepreneurship Research

- Searching Maturation

Cognitive dimension

Social dimension

Take off phase

Explorative driven

Growth phase

Phenomenon and empirical driven fragmentation

Policy orientation Practical orientation

Pragmatic methodology

Strong links to society

Individualism

Pioneers

Lunds universitet / Hans Landström

Improved empirical methodology

Strong links to the topic

Social infrastructure

(Bounded)multidisplinary

Searching maturation

Stronger theory orientation specialization

Knowledge orientation

Widening of methodological approach

Strong links to the domain

Cognitive development

Emerging ”tribes”

What Can We Learn From History?

1. Influential works and intellectual achievements

 role models

Global Award for Entrepreneurship Research

1996 David Birch 2001 Zoltan Acs

David Audretsch

1997 Arnold Cooper 2002 Giacomo

Becattini

Charles Sabel

2006

2007

Israel Kirzner

The Diana

Project

1998 David Storey 2003 William Baumol 2008 Bengt

Johannisson

1999 Ian MacMillan 2004 Paul Reynolds 2009 Scott Shane

2000 Howard

Aldrich

Lunds universitet / Hans Landström

2005 William Gartner

What Can We Learn From History?

2. Knowledge accumulation

Empirical and descriptive knowledge that help us understand the phenomenon (the importance of entrepreneurship, the complexity and heterogeneity of the entrepreneurship, etc.), and it is a necessary step in order to build theory effectively, i.e. a deep understanding of the issues and practices involved improves the validity, sophistication and power of theoretical models developed.

• Shows the importance of relevance in research. Early scholars (the pioneers) had a clear connection to entrepreneurs and to society

(practice and policy).

Lunds universitet / Hans Landström

What Can We Learn From History?

3. Increased theoretical interest in entrepreneurship research

Theory-driven methodologies/sampling (Davidsson, 2008)

 Test theories not only describe reality.

• Borrow and invent (Zahra, 2007)

Good groundwork

 when borrowing from other fields we need to understand the roots and assumptions on which these concepts and theories are based.

Lunds universitet / Hans Landström

Advices for PhD students

Learn how to write … write, write, write!

What you write is important (publications and citations more and more important)

• Make your research recognized through publications, and learn how to publish

- create your own ”voice” in papers and articles

- choose your ”conversation group” and journals (SCI)

- make your publications easy to access (home page).

… but who you know is almost as important! (researchers form social networks and within these networks theories are developed in dialogue, through mutual citations)

• Extend your publishing experience through collaboration with other researchers

(note least the ”elite” within the field).

• Create a social network

- peers: use for review, but also in order to increase the number of citations

- seniors: personal communication (make yourself ”known”)

- general: visibility (conferences/seminars/etc).

• Sell your ideas and publications (marketing).

Lunds universitet / Hans Landström

More about the history of entrepreneurship research

Landström, Hans, 2005, Pioneers in

Entrepreneurship and Small Business

Research , Yew York: Springer

ISBN 0-387-23601-5

Lunds universitet / Hans Landström

THANKS!

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