The paper explores the process of early growth of entrepreneurial science-based firms. Drawing on case studies of British and Dutch biopharmaceutical R&D firms, we conceptualize the speed of early growth of science-based firms as the time it takes for the assembly (or combined development) of three types of critical resources - a functionally-diverse management team, early fundraising and development of technology. The development of these resources is an unfolding and interrelated process, the causal direction of which is highly ambiguous. We show the variety of paths used by science-based firms to access and develop these critical resources. The picture that emerges is that the various combinations of what we call "assisted" and "unassisted" paths combine to influence the speed of firm growth. We show how a wide range of manifestations of technology development act as signaling devices to attract funding and management, affecting the speed of firm development. We also show how the variety of paths and the speed of development are influenced by the national institutional setting.
DOCUMENT
This research focuses on exit choices within SMEs. In this study, “exit choice” refers to the decision to opt for either liquidation or sale of the firm. The predictions focus on human-capital and firm-resource variables. The hypotheses are tested on a set of 158 owners of small firms, the majority of which are micro-firms with 0–9 employees. The results of a series of binominal logistic regression analyses show that firm-resource characteristics (previous sales turnover, the firm’s independence from its owner, and firm size), together with one aspect of the owner’s specific human capital (the owner’s acquisition experience), predict exit choice. The conclusions have been made with caution, as the dataset is relatively small and the number of predictors is limited.
LINK
It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities.
DOCUMENT
The Dutch greenhouse horticultural industry is characterized by world leadership in high-tech innovation. The dynamics of this playing field are innovation in production systems and automation, reduction in energy consumption and sharing limited space. However, international competitive advantage of the industry is under pressure and sustainable growth of individual enterprises is no longer a certainty. The sector's ambition is to innovate better and grow faster than the competition in the rest of the world. Realizing this ambition requires strengthening the knowledge base, stimulating entrepreneurship, innovation (not just technological, but especially business process innovation). It also requires educating and professionalizing people. However, knowledge transfer in this industry is often fragmented and innovation through collaboration takes up a mere 25-30% of the opportunities. The greenhouse horticulture sector is generally characterized by small scale, often family run businesses. Growers often depend on the Dutch auction system for their revenues and suppliers operate mainly independently. Horizontal and vertical collaboration throughout the value chain is limited. This paper focuses on the question: how can the grower and the supplier in the greenhouse horticulture chain gain competitive advantage through radical product and process innovation. The challenge lies in time- to-market, in customer relationship, in developing new product/market combinations and in innovative entrepreneurship. In this paper an innovation and entrepreneurial educational and research programme is introduced. The programme aims at strengthening multidisciplinary collaboration between enterprise, education and research. Using best practice examples, the paper illustrates how companies can realize growth and improve innovative capabilities of the organization as well as the individual by linking economic and social sustainability. The paper continues to show how participants of the programme develop competencies by means of going through a learning cycle of single-loop, double-loop and triple loop learning: reduction of mistakes, change towards new concepts and improvement of the ability to learn. Furthermore, the paper discusses our four-year programme, whose objectives are trying to eliminate interventions that stimulate the innovative capabilities of SME's in this sector and develop instruments that are beneficial to organizations and individual entrepreneurs and help them make the step from vision to action, and from incremental to radical innovation. Finally, the paper illustrates the importance of combining enterprise, education and research in networks with a regional, national and international scope, with examples from the greenhouse horticulture sector. These networks generate economic regional and national growth and international competitiveness by acting as business accelerators.
DOCUMENT
Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints measure and incorporate a psychometric risk taking scale. Results confirm the importance of access to finance and risk attitudes for business development. Also, we provide preliminary evidence for an interaction between financial constraints and risk taking. Financial constraints “throw sand in the wheels” and protect risk taking entrepreneurs from the negative impact of risk taking on microenterprise performance.
DOCUMENT
Using a series of case studies, we show that global mindset is at the heart of global growth and opportunity for entrepreneurial ventures. We review how having an entrepreneurial mindset and international experience influence the rapidity of internationalization by discussing the entrepreneurial process and how the global mindset of founders of born global firms influences their choices in the competitive landscape. This chapter closes with a discussion of a continuum — globalization frustrated (focusing on firms with entrepreneurs that have global mindsets but cannot internationalize) to globalization mandated (focusing on firms that are forced to be global).
DOCUMENT
In today’s intellectual capital literature, we see a shift from identifying intangibles towards understanding the dynamics of value creation. As it is not clear what “dynamic” stands for, the aim of this explorative and conceptual paper is to contribute to a better understanding of the dynamic dimension of IC. Based on a review of the early IC literature, the dynamic dimension (or dynamics) of intellectual capital seems to refer to the logic that value creation is the product of interaction between different types of (intangible) resources. As the idea of value creation through combination of knowledge resources is closely related to the New Growth Theory (Romer, 1990, 1994), this paper explores the New Growth Theory and its implications for the dynamic dimension of intellectual capital. Based on the exploration of the New Growth Theory, a conceptual model is presented in which the elements that constitute the dynamic dimension of intellectual capital are integrated. These elements are ideas, things, the process of knowledge creation, the process of continuous innovation, and institutions. The main conclusion of this paper is that the concept of knowledge is more closely related to the dynamic dimension of IC, than the concept of intellectual capital. Therefore, further research would probably benefit from approaching this topic from a knowledge management point of view. It is suggested that further research should focus on exploring the metaphors that contribute to a better understanding of the dynamics of IC, on the contribution that ideas can make to increase the effectiveness of knowledge management, and finally on the institutional arrangements that support the process of knowledge creation and innovation.
DOCUMENT
Looking at the trends in the four quarters of 2021, it is clear that (partial) lockdowns of sectors have been very bad news for business performance. Also not directly hit sectors like the care and service industry underperformed. The horeca, retail and cultural sectors were hit hardest by recurring lockdowns. Business services and technical professionals were more resilient. We have observed a strong decrease in sales, net margins, investment (willingness), solvability and entrepreneurial wages in periods of lockdown. They are (far) below the levels of the pre-Corona year 2019. Start-ups and the self-employed were the most vulnerable. The type of market in which entrepreneurs operate is of great importance. Turnover, net margins and entrepreneurial wages in the B2B markets are significantly higher than in the B2C markets. We were unable to establish any direct positive effects of the degree of digitization of businesses on net margins (Q2 special). Rather, the utilization of too many applications seems to deteriorate business performance. Entrepreneur digital skills are able to predict net margins better and positively. We will repeat this special in the near future as many businesses have only recently started to digitize. Entrepreneurs have lost their way in the forest of local, provincial, national and EU subsidies (Q3 special), halving the number of applications compared to 2015. Tax deduction programs seem far more effective than the dazzling diversity of subsidies. Owners of businesses with staff are especially willing to pay specialized advisors to detect and apply for subsidies on a “no cure, no pay” basis. There appears to be a strong link between the self-estimated sales skills of entrepreneurs and their turnover, and the short-term growth expectations (Q4 special). The more experienced and skilled in sales, the higher the quarterly turnover and the higher the growth expectation. However, 62% of entrepreneurs are unskilled or untrained in sales skills. And 30% of entrepreneurs indicate that they are not effective at selling. Overall, the lockdowns resulted in a growing number of entrepreneurs developing into marginal companies. Financial reserves, such as saved pensions and private/partner/family capital were depleted. Lockdowns also increased firm and private debts, which the majority of companies are unable to repay. Poverty is knocking at the door of many Dutch entrepreneurs and, even with the support of a partner income, only 4 out of 10 entrepreneurs earn a more than marginal living. Our main recommendations in the quarterly reports of 2021 are: 1. Strengthen the solvability of micro-businesses by converting tax debts in subordinate loans. 2. Pro-actively contact entrepreneurs to support them with support possibilities, (poverty alleviation) allowances and free coaching and sales, financial and digital training possibilities. 3. Start proactively discussing the viability of the firm and business model and possible ways to resolve debts. There is strong demand and shortages on the labor market, which makes this the perfect time to guide depleted entrepreneurs to (far) better paid jobs.
DOCUMENT
From the article: "Project execution in the construction industry faces major challenges, e.g. difficulty in coordination and cooperation. Operational procurement during project execution is no exception. In this paper we construct a maturity model, based on earlier work, consisting of six dimensions (goal, control, process, organization, information, technology) and five maturity stages (transactional-oriented, commercial-oriented, coordination, internal-optimized, external-optimized). The model can be used to determine the level of procurement maturity for each of the dimensions, and for the determination of a strategy for growth in the construction industry. With input from a major construction firm in the Netherlands, through simulating tooling, the model is evaluated for its contribution to growth in operational excellence. Results of the simulation show support for a relation between maturity growth and increased operational excellence." Recommended Citation Xing, Xiaochun; Versendaal, Johan; van den Akker, Marjan; and De Bevere, Bastiaan, "Maturity of Operational Procurement in the Construction Industry: A Business/IT-Alignment Perspective" (2011). BLED 2011 Proceedings. Paper 22. http://aisel.aisnet.org/bled2011/22 Affiliation: Xing Xiaochun - Swets Information Services, Netherlands; Johan Versendaal - Utrecht University, Netherlands; HU University of Applied Sciences, Netherlands; Marjan van den Akker - Utrecht University, Netherlands; Bastiaan De Bevere - Ballast Nedam, Netherlands.
MULTIFILE
We examined scholarly and practitioner work to identify a definition of governance relevant to the small business enterprise. In addition, we reviewed growth articles to identify frequently used growth indicators and make inferences to governance literature. In order to ensure that these terms and variables are embedded in practice we examined 12 cases of Dutch SME firms in the process of growth using a textual analysis methodology. In addition, we interviewed 15 accountants/advisors on their experiences with Dutch SME firms as their clients. The combination of a thorough literature review with the collected surveys and interviews from two independent sources (SME owners/managers and SME accountants/advisors) allows us to triangulate data. We provide a tentative framework identifying nine preliminary governance categories.
DOCUMENT
