Professional Documents
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Entrepreneurship: A
© The Author(s) 2021
Strategically
Actionable Knowledge
Abstract
The enabling influence of environmental changes—be they technological, regulatory, demo-
graphic, sociocultural, or otherwise—on emerging ventures receives a growing interest from
researchers and practitioners. To support knowledge accumulation in this important area, we
systematically review and integrate research that is dispersed across disciplines, nominal types
of change, and theoretical approaches. Under a unified terminology within a cross-level (en-
vironment to agent), process-aware framework, we examine what has been done and learnt.
On this basis, we develop an agenda for further, future accumulation of knowledge about the
strategic and serendipitous influence of environmental changes throughout and beyond the
venture creation process.
Keywords
entrepreneurship, environmental change, external enablers, new ventures, opportunity search/
discovery, strategic management
While there is no entrepreneurship without creative agency, entrepreneurs do not create new
ventures out of thin air. Therefore, it has long been argued that various changes to the busi-
ness environment create important “raw material” for entrepreneurs to work on (Davidsson,
2015; Drucker, 1985; Shane, 2012). Accordingly, studies address how new technologies
(Grégoire & Shepherd, 2012), regulatory changes (Eberhart et al., 2017), sociocultural trends
(Hiatt et al., 2009) and changes to the natural environment (Dutta, 2017) enable new ven-
tures. However, these studies are dispersed across disciplines, nominal types of change, and
1
Center for Family Enterprise and Ownership, Jönköping International Business School, Jönköping, Sweden
2
Australian Centre for Entrepreneurship Research, Queensland University of Technology, Australia, and Jönköping
International Business School, Jönköping, Sweden
Corresponding Author:
Jiyoung Kimjeon, Center for Family Enterprise and Ownership, Jönköping International Business School, Jönköping,
Sweden.
Email: jiyoung.kim@ju.se
2 Entrepreneurship Theory and Practice 00(0)
Note. The table includes review-based revision suggestions. Italics denote deviations from the original EE Framework
(Davidsson et al., 2020). Original definitions are not necessarily verbatim but can be derived from more elaborate
descriptions and explanations. The framework also mentions “social utility” as a mechanism characteristic. Because
this dimension is evaluative and not strategic in nature, we have not coded for it in our review.
because not-yet-existing ventures are attracted by facilitation, not hindrances. This being said, no
changes are EEs in general for all ventures and agents. Finally, the framework acknowledges that
entrepreneurs can change environmental structures by collectively creating new markets and
individually as inventors or lobbyists (Davidsson et al., 2020, p. 322–323). However, this phe-
nomenon is not a focus of the framework. Hence, by adopting the EE Framework, this review
accepts both “natural” and “manmade” EEs while regarding these changes as occurring inde-
pendently of the focal agent (Davidsson et al., 2020).
Review Method
Guided by Tranfield et al. (2003), our review process was necessarily iterative due to the chal-
lenging fragmentation of the reviewed literature. Below, we briefly describe our literature search
and selection strategies, criteria, and review processes. In the interest of transparency and repro-
ducibility we provide further details in the Appendix.
Due to the lack of common terminology across types of environmental change, we employed
a principle-based search strategy for the main literature search. The four principles of EE are: (1)
aggregate-level instance of (2) change(s) focusing on (3) enablement of (4) new venture creation
(Davidsson et al., 2020; Davidsson, 2015). Based on these, we developed inclusion and exclu-
sion criteria (Table 2) and specific search terms (Table A1). We used the keyword ‘external
enabl*’ in a supplementary search to capture research explicitly using the EE concept. Recognizing
the cross-disciplinary appeal of the EE phenomenon, we searched all journals listed on Financial
Times 50 (FT50). To increase total coverage of new venture creation we added another five entre-
preneurship journals of high standing.3 We used combinations of search terms developed for
each principle in Elsevier’s Scopus® database. The review covers the 2000–2020 (September)
period. This yielded 791 candidate articles from our main (766) and supplementary (25) searches.
We identified a final set of articles for review through the following selection steps against the
four principle-based criteria: (1) title and abstract examination; (2) full-text examination; and (3)
initial coding of EE features (e.g., characteristics, mechanisms, and roles). All three rounds
involved iterative processes of independent examinations, cross-checks, re-inspections, and rec-
onciliation in case of disagreement or doubt. This led to the identification of 94 (90 + 4) papers
as well as further refinement of inclusion and exclusion criteria (see Appendix for further details,
including summaries of each article through an EE lens in Table A2).
Using the EE Framework helped resolve some concerns pertaining to systematic reviews
noted by Rauch (2020, p. 851-852). Clearly defined elements of the framework provided a basis
for systematic coding and analysis of what is heterogeneously described and labelled in the liter-
ature. In addition to counts of occurrences, we undertake bibliometric cross-citation analysis4 to
formally evaluate knowledge integration (the technical term indicative of knowledge accumula-
tion). Cross-citation analysis assesses linkages between articles, revealing patterns among jour-
nals, articles and/or authors (Gomezelj, 2016; Howey et al., 1999). A selective set of cross-citation
results is provided in Appendix (Figure A1 (a-i)).
Using the EE Framework as a basis draws also on another advantage of systematic reviews
noted by Rauch (2020), namely that it allows combining evidence across qualitative and quanti-
tative studies. Systematic reviewing is less suited for assessing how the cumulative evidence
weighs on substantive matters (cf. meta-analysis); a problem aggravated in our case by the diver-
sity of issues addressed in the reviewed literature. Therefore, our systematic review aims mainly
at giving a fair and informative portrayal of ‘what has and has not been done, and how?’
Rauch (2020) also notes that a systematic review “often highlights gaps in the literature, helps
to develop and advance theoretical models, and presents new perspectives on emerging issues
leading to valuable suggestions for future research.” Accordingly, we identified papers to engage
Kimjeon and Davidsson 7
Aggregate-level Aggregate-level instance(s) that may impact Significant external instance for particular venture
instances multiple (potential) new ventures only
Example: one of the venture’s first buyers wins a
major government contract
Instance(s) within an organization
Example: introduction of new program or the like
within business incubator/university or firms
Change Distinct instance whose occurrence alters the Cross-sectional variation1)
aggregate-level setting (disequilibrating) Examples: Institutional differences across countries;
‘environmental dynamism’ as a continuous
regional trait w/o distinct change
New venture Activities undertaken toward creating or Activities undertaken by or outcomes achieved by
creation functioning of new venture(s). Both for- established firms
profit and not-for-profit; by independent or Example: gradual product refinement or market
incumbent. expansion
Example: opportunity recognition, R&D
investment
Evidence of outcomes reflecting new venture
creation.
Example: new venture emergence; spin-offs; firm
growth; firm survival
Elements that enable creating/functioning new/
nascent/young venture(s)
Example: venture capital
Enabling influence Theorization or argument indicative of causal, External change as outcome rather than cause of
enabling effect of environmental change entrepreneurial action
on new venture creation or enablement Example: dominant focus on agents’ ‘institutional
of what indirectly enables new venture work’ to bring about an enabling change rather
creation (e.g., venture capital) than the enablement provided to others by the
change
The external change is not seen as enabling or is not
the cause focused on
Example: economic transition increases uncertainty,
which is only considered as negative
Enabling is only relative in the sense of some being
less negatively affected than others by adversity
Note.1) We strictly adopt Davidsson et al.’s (2020) focus on change. Studies using multi-country panel data, hence reflecting at least in
part effects of change within contexts, are included (e.g., Audretsch et al., 2015; Bennett, 2021).
with more deeply in identifying, validating and refining ideas for a future research agenda,
beyond ideas that can be derived directly from our quantitative results. In the interest of transpar-
ency, we cite the individual exemplars when synthesizing patterns across works that guide
research agenda suggestions and proposed refinements of the EE Framework.
Review Findings
Before reporting our findings, we reiterate that because of the broad range of aspects of enable-
ment addressed in the reviewed research, our review’s main foci are “What has (and has not)
been done, and how?” as input to inform future research. We do not focus on conclusions or the
weight of evidence regarding particular variable relationships. Further, we selected studies that
address influence of external change on new venturing to some extent and for various purposes
and critically assess their delivery on a goal imposed by us: accumulation of strategically action-
able knowledge about how disequilibrating external changes enable new venture creation. Our
8 Entrepreneurship Theory and Practice 00(0)
reporting does not aim to critique their ability to achieve their own, respective goals. All papers
in our review were published in highly ranked journals and often exemplify excellent scholarship
regardless of the extent to which they contribute strongly to the kind of knowledge we
emphasize.
The first half of our review findings presents observations based on publication outlets, theory
usage, research design, and the types and instances of environmental change that are investigated
(Table 3). This summarizes what has been addressed and how, and helps identifying gaps in the
literature. Although we apply the EE label for the studied environmental changes, we do not use
any other terminology from the EE Framework in this initial part of the results. By contrast, we
base the second part of our review findings on the structure and terminology of the EE frame-
work (Table 4).5 In this part we formally estimate the extent of knowledge integration through
cross-citation analysis (cf. Mingers & Leydesdorff, 2015; Stewart, 2018). In the last part, we
assess the EE Framework’s ability to represent the reviewed work and suggest some
refinements.
effort within our set of 94 studies. In all, the results indicate a real or perceived shortage of con-
ceptual tools fit for the purpose of this type of research. In our research agenda, we will return to
the dominance for phenomenon-oriented or theoretically eclectic research as related to long term
knowledge accumulation.
Table 3. Outlets, Theories, Approaches, Type of Data, and Type of Environmental Change.
Empirical (80)
Total Quantitative Qualitative Mixed Nonempirical
(94) (50) (25) (5) (14)
Outlet
FT50 entrepreneurship journals 22 8 6 0 8
Other entrepreneurship journals 34 21 9 1 3
Other FT50 journals 38 21 10 4 3
Theory
Phenomenon-focused 33 20 11 2 0
Eclectic 24 10 5 2 7
Institutional theory 13 6 4 1 2
External Enabler framework 5 3 0 0 2
Other (e.g., effectuation, knowledge- 19 11 5 0 3
spillover, etc.)
Dataset
Primary 17 9 8 n/a n/a
Secondary (one data type) 40 40 0 n/a n/a
Secondary (combination of multiple data 9 0 7 2 n/a
types)
Primary and secondary mixed 14 1 10 3 n/a
Type of environmental change
Regulatory 36 21 8 2 5
Technologicala) 24 12 7 1 4
Economic 16 12 4 0 0
Sociocultural 13 2 6 2 3
Natural-environmental 9 2 4 0 3
Economic transition 7 2 2 0 3
Physical infrastructure 4 3 1 0 0
Knowledge infrastructure 4 4 0 0 0
Demographic 0 0 0 0 0
Other 9 1 5 2 1
Number of types and instances of change
investigated
One type 67 41 17 3 6
More than one type 19 5 7 2 5
Undefined number of types 8 4 1 0 3
One instance 24 14 7 2 1
More than one instance 26 18 4 1 3
Undefined number of instances 44 18 14 2 10
Note. (a) We are likely to have considerably more under-coverage for new technology compared to other EE
types due to much of the conversation occurring in non-FT50 journals within innovation and information systems.
Entrepreneurship based on new, digital technologies has recently attracted very strong interest, including several
special issues of journals (see Berger et al., 2021; Fang et al., 2018; Sahut et al., 2021; Shen et al., 2018). However,
not least because technological change is interrelated with and can interact with regulatory, sociocultural, and
natural-environmental changes we think there are gains to be made in both directions by regarding new technology
as one type of environmental change among others, as per the EE Framework.
Kimjeon and Davidsson 11
one EE is contingent on the occurrence of another environmental change that may not yet have
occurred. An example of the former is fintech development (main) enabling new product offer-
ings while erosion of trust in the traditional financial industry due to the Global Financial Crisis
(supplementary) increases legitimacy and expands demand for the new alternatives (Cojoianu
et al., 2020). As an example of the latter, papers on economic transition emphasize the lack of
sociocultural acceptance and legal infrastructure, suppressing the enabling impact of another
environmental change (e.g., legalization of private new ventures; Ahlstrom & Bruton, 2010;
Smallbone & Welter, 2012; Welter & Smallbone, 2011). This means that a realization of the
intended enabling outcome depends on successful interactions among multiple EEs.
Papers that investigate multiple EEs shed light on within- and cross-type variance of EEs.
Within-type variance is investigated for different kinds of infrastructure (e.g., rail, broadband,
highways etc.), regulation (e.g., legalization of intra- and inter-state banking), and economic
factors (e.g., gross domestic product, income per capita; Chen et al., 2020; Kerr & Nanda, 2009;
Wang, 2006). Empirical evidence for within-type variance cautions against over-generalization
regarding the enabling power of particular types of EE. On the other hand, cross-type variance
receives relatively little empirical attention. In all, observations from our review call for improved
understanding of EE interdependence. We return to this in the research agenda.
Scope
Table 4 confirms that variance in scope is a factor that attracts researchers’ interest across all
types of EE. In the reviewed articles, the sectoral scope is mostly reflected as a particular industry
or industry type where the impact of an EE occurs (e.g., Audretsch et al., 2015; Sine & Lee,
2009) while some studies go beyond “industry” scope examining EE’s impact on categories of
new venture like social (Lehner, 2014), hybrid (Schulz et al., 2016) and formal vs. informal ven-
tures (Dau & Cuervo-Cazurra, 2014).
Several studies feature a sector as a significant moderator of EE effects. For example, industry
categories and industry attributes (e.g., maturity and fragmentation) determine the influence of
EEs (e.g., Audretsch et al., 2015; Chen et al., 2020; Meoli et al., 2019; Pan & Yang, 2019; Shane,
2001; Wang, 2006). The left-hand side of Figure A1 (a) indicates nontrivial knowledge integra-
tion about sector-specific influence on venture emergence and growth across various types of
EEs (e.g., sociocultural, knowledge infrastructural, regulatory, and natural environmental EE).
All these cross-citing papers refer to ‘institutional theory’ whereas none of the non-linked papers
on the right-hand side do so and only a few make any mention of ‘institution’. This demonstrates
the knowledge-integrating power of common theory and terminology.
Socio-demographic scope reflects an EE’s impact on particular groups of people (e.g., by
educational attainment, ethnicity, gender) in terms of who would strategically respond (Chatterji
& Seamans, 2012; Eberhart et al., 2017) or who would be the likely users or customers (e.g.,
12 Entrepreneurship Theory and Practice 00(0)
Table 4. Selected Coding Based on the EE Framework (Characteristics, Mechanisms, and Roles).
Phy. Know.
Total Reg. Tech. Eco. Socio. Env. Eco. Tran. Infra. Infra. Other
EE characteristics
Sectoral scope 20 10 4 2 3 2 2 3 3
Spatial scope 17 6 5 4 2 1 2 1 2
Temporal scope 12 2 4 4 1 1 1
Socio-dem. scope 11 8 2 2 1
Gradualness of onset 3 1 2 1
Predictability of onset 3 2 1
EE mechanisms
Resource expansion 53 27 5 7 7 3 1 3 3 3
Legitimation 33 14 6 4 10 3 5 1 2 5
Conservation 28 14 10 2 3 1 1 2 2 1
Demand expansion 20 4 6 5 2 5 1 2 2
Uncertainty reduction 17 5 7 2 1 1 3
Generation 12 2 9 1 1 1 1
Demand substitution 16 7 2 4 9 3 1 1 3
Enclosing 14 7 6 1 2 1
Combination 10 1 8 1 2 1 2
Compression 13 6 6 1 1
Resource substitution 5 3 1 1 1
Characteristics of EE Mechanisms
Opacity 8 2 4 1 1 1
Agency-intensity 8 4 3 1 1
EE Roles
Triggering 69 28 14 11 12 9 4 3 3 7
Shaping 60 9 19 8 10 8 5 2 2 6
Product shaping 42 12 17 6 10 6 2 2 2 6
Venture shaping 20 5 7 4 3 1 3 1 1 1
Process shaping 11 4 4 2 1 1
Outcome-enhancing 32 14 14 5 2 2 1 1 2
Note. Entries denote the number of articles that address each EE component. Entries often do not sum up to the
total horizontally because an article can cover the same EE component for more than one type of EE.
young individuals, see Gomber et al., 2018). In several cases, regulatory EEs receive stronger
response from particular socio-demographic groups in a manner not intended in the design of the
regulations (Castellaneta et al., 2020; Chatterji & Seamans, 2012; Cueto et al., 2017; Schulz
et al., 2016). Also, the Global Financial Crisis enhanced the influence of particular socio-
demographic attributes, such as gender and human capital, on creating new ventures (Cao & Im,
2018; Giotopoulos et al., 2017). Although cross-cited, the context of cross-citation among the
studies to the left in Figure A1 (b) only weakly reflects the focus on socio-demographic scope.
Instead, articles are cross-cited for the impact of regulatory EEs on entrepreneurial activity. This
confirms segregation by type of change although institutional theory is also a common denomi-
nator across four of the five studies.
Kimjeon and Davidsson 13
Spatial scope specifies geographical boundaries, for instance, physical distance from an EE’s
‘epicenter’ (e.g., regions close to new infrastructure and to top financial clusters, see Chen et al.,
2020; Pan & Yang, 2019). It also reflects natural geographical features that make an EE variously
enabling (e.g., the conditions for certain types of energy production, see Sine & Lee, 2009) or
‘acquired’ regional features (e.g., level of regional economic development; agglomeration econ-
omies of major cities, see Pan & Yang, 2019; Zhou, 2011). An EE’s influence is often highly
localized due to these geographical features. Like for socio-demographic scope, the limited
cross-citation among articles featuring spatial scope seems driven by a shared EE type (banking
deregulation) rather than shared scope dimension (Figure A1 (c)).
Temporal scope specifies the timing and duration of an EE’s impact (Burtch et al., 2013; Hunt
& Fund, 2016). Studies support stronger enabling impact of EEs in the earlier period than later
(e.g., Bayus & Agarwal, 2007). Although our review integrates knowledge on EE’s temporal
scope across types of EE, Figure A1 (d) indicates a total absence of knowledge integration across
studies.
Finally, while the original EE Framework portrays scope as a matter of an EE being either
present or not within a context, a nontrivial number of studies across all scope dimensions
emphasize varying (aggregate) degree or magnitude of enablement within an EE’s scope (see
Bayus & Agarwal, 2007; Dutta, 2017; Song, 2019; York & Venkataraman, 2010).
Onset
Although the review confirms the relevance of onset (Ahlstrom & Bruton, 2010; Mezias &
Kuperman, 2000; Williams & Vorley, 2017), few studies address variance in gradualness and
predictability of onset (Table 4) and there is limited depth when they do. For example, some
studies anecdotally note gradual trends in technology as a within-venture tool for entrepreneurs
and also its prevalent impact on the user base (Browder et al., 2019; Song, 2019) without theo-
rizing or empirically testing this onset characteristic. Further, the review suggests that the contin-
ued trajectory and eventual expiration of EEs are also important (Bayus & Agarwal, 2007;
Branzei & Abdelnour, 2010). This suggests expanding onset to evolution of EEs, which would
allow more detailed attention to the pace and manner of EEs’ development over time (see
Chalmers et al., 2020; Smallbone & Welter, 2012; Williams & Vorley, 2017).
Gomber et al., 2018; von Briel et al., 2018). Expansion of and reduced cost for acquiring knowl-
edge/information (e.g., Kolympiris et al., 2014) and human resources (Wang, 2006 & Vakili &
Zhang, 2018) are also recurring key enablement offered by EEs for new venturing. In some
cases, the enablement concerns access to rather than expansion of resources (e.g., Roma et al.,
2017).
Legitimation
Two main types of legitimacy provided by EEs are: (1) toward venturing activity in general and
(2) toward particular market offerings and business practices. Examples of the former include
legalization and increased social acceptance for profit-seeking activity (Tan & Tan, 2017;
Williams & Vorley, 2017). Social movements that increase legitimacy by heightening customer
awareness and appreciation of new products and production practices illustrate the latter (Sine &
Lee, 2009; Sine & David, 2003, Sebastiani et al., 2013). This includes legitimacy offered by
other stakeholders, such as investors (Akemu et al., 2016).
We found dense cross-citation linkages for resource expansion, conservation, and legitima-
tion mechanisms, indicating potential knowledge integration for these mechanisms (Figure A1
(e) for legitimation). However, the context of citation is often a common type of EE (e.g., regu-
latory change and social movements) and a shared theoretical basis (institutional theory).
Demand Expansion
Demand expansion often refers to increase in total demand driven by (accessible) population
(Bennett, 2019; Chen et al., 2020; Song, 2019); improved economic status of the population
(Partridge et al., 2020; Wang, 2006), and increase of unfilled niches (Cohen & Winn, 2007; Tan,
2001). Other instances concern increases in demand for specific product categories due to natural
disasters (Dutta, 2017; Grube & Storr, 2018; Nelson & Lima, 2020; Williams & Shepherd, 2016)
and increase in the user base of internet/mobile-based financial services (Gomber et al., 2018).
Some of this should perhaps be seen as demand substitution instead, although it is often hard to
identify what is sacrificed to make room for the increased demand. In some cases, the expanding
demand could more accurately be seen as demand creation (e.g., David et al., 2013) or improved
market access (e.g., Chen et al., 2020).
We found an absence of cross-citation across studies addressing the demand expansion mech-
anism while relatively strong knowledge integration emerges for the demand substitution (Figure
A1 (f)). Although this may be driven also by shared type (social movement) and theory (institu-
tional), the context of citation reflects what the demand substitution mechanism specifically
refers to (existing demand is replaced through the emergence of the EE) rather than other or
general enabling influence of sociocultural changes.
Characteristics of Mechanisms
Few studies address the opacity and agency-intensity of mechanisms (Table 4) and then usually
not in much depth. We address future research on the strategically important issue of character-
istics of mechanisms in our research agenda.
shaping the product (e.g., social movements creating demand for particular products); the ven-
ture (e.g., new technologies shaping the business model); and/or the process (e.g., deregulation
making the venture creation process easier and faster).
While roles can be discerned from the manuscripts (Table 4) they are usually not expressed
with the clarity and precision that is assumed by the framework’s terminology. Articles some-
times rely on concepts that do not denote the exact influence of an EE (e.g., effects on entrepre-
neurial ‘opportunity’ or ‘activity’) and rarely specify when in the new venture creation process
the enablement occurs. Our coding is thus based on explicit theoretical arguments but also
inferred from implicit or imprecise arguments, and operationalizations.
Triggering
Table 4 shows that triggering is the most studied role. However, we coded half of the instances
(38) as ambiguously operationalized, confounding triggering with outcome-enhancement. This
is because the operationalization as increase in national, regional, or sectoral entry rates does not
distinguish between increase in attempts to start ventures (triggering) and a larger share reaching
successful emergence (outcome-enhancing; cf. von Briel et al., 2018). Only four studies use a
completely unambiguous, individual or venture-level measure of triggering (e.g., decision to
start a new venture; Castellaneta et al., 2020; Eberhart et al., 2017; Giotopoulos et al., 2017;
Schulz et al., 2016). Similarly, only six articles develop separate hypotheses or propositions for
triggering and outcome-enhancing effects (Cueto et al., 2017; Cumming & Knill, 2012; Eberhart
et al., 2017; Giotopoulos et al., 2017; Mezias & Kuperman, 2000; von Briel et al., 2018).
Regarding the triggering role, cross-citation patterns indicate a level of knowledge integration
arguably driven by the use of a shared dependent variable (start-up rate). Moreover, cross-citation
tends to occur much more within than across types of EEs (Figure A1 (g)).
Outcome-Enhancing
While accepting a broader range of outcomes, Davidsson et al. (2020, footnote 7) hold that
“under the view that entrepreneurship is about new venture creation, the most relevant outcome
is whether or not the process leads to a viable new venture.” Few articles in the review actually
address such ‘emergence success’, Gozman et al. (2018), Viotto da Cruz (2018) and Song (2019)
being among the exceptions. Instead, the articles mostly focus on survival (Bayus & Agarwal,
2007; Conti, 2018; Partridge et al., 2020), financial performance (Burtch et al., 2013; Cohen &
Winn, 2007), and growth (Eberhart & Eesley, 2018; Kobeissi, 2009) beyond that point.
Through cross-citation analysis, we found segregation of knowledge by different type of EE
and also limited integration of knowledge within types as the context of cross-citation reflects
general impact of a particular EE type on new venturing activity rather than whether or how it
enhances the outcome of new ventures (Figure A1 (h)).
Shaping
Table 4 reveals that many articles address product and venture shaping to some extent. However,
the treatment of shaping is not always deep or central. Only 18 articles represent any type of
shaping in formal hypotheses or propositions. In the remaining cases the coding is based on
reported observations, examples, theoretical arguments, or rather implicit suggestions.
Interestingly, attention to product- and venture shaping is much more prevalent in qualitative
and conceptual (27 papers; 69%) than quantitative papers (15 papers; 29%). This arguably
reflects the challenge of compressing shaping to a few quantitative variables; that such informa-
tion (consequently) is absent in secondary data sets, and that close-up study may be necessary to
effectively capture shaping phenomena. Grandy and Hiatt (2020) is a quantitative exception by
empirically testing the process-shaping role as time taken for regulatory approval.
16 Entrepreneurship Theory and Practice 00(0)
Different varieties of product shaping were identified through our review. First, the examined
EE—for instance, a social movement or natural disaster—can narrowly specify the type of
increased demand, thereby determining what to offer the market in the first place (Hiatt & Carlos,
2019; Hiatt et al., 2009). Second, the EE may constitute the core or components (e.g., big data
and artificial intelligence) of the product or service (e.g., automation of credit applications;
Mohsen et al., 2019; Toms et al., 2020). Third, an EE can facilitate stakeholder interaction guid-
ing improvement of attributes of the offerings (e.g., Lehner, 2014, about crowdfunding). Further,
influence on the choice of market to address can be independent of product shaping (e.g., Mohsen
et al., 2019). Such market shaping is currently not covered in the EE Framework.
The notions ‘organizational form’ and ‘business model’ appear sporadically in the coding for
venture shaping (e.g., Hunt & Fund, 2016; Lehner, 2014; Song, 2019). Other papers address a
diverse set of venture shaping indicators. Except for Hunt and Fund’s (2016) ‘sustainability
shaping’ and Welter and Smallbone’s (2011) elaboration on six management practices driven by
economic transitions, there is only passing mention of possible venture-shaping effects.
We found relatively strong knowledge integration for the shaping role within and across EE
types (Figure A1 (i)). Cross-citation occurs across articles addressing each of the four dimen-
sions of the shaping role (e.g., within EE type: Grégoire et al., 2010; Grégoire & Shepherd, 2012;
Shane, 2000, 2001 and across EE types: Akemu et al., 2016; Sine & David, 2003; Williams &
Shepherd, 2016; York & Venkataraman, 2010). Again, institutional theory is well represented
among cross-cited articles.
adding mechanisms like incentivizing of founders (Cao & Im, 2018; Cumming & Knill, 2012;
Eberhart et al., 2017; Sine & Lee, 2009) and signaling to stakeholders (Roma et al., 2017)
because they are already represented by the triggering role and/or underlying, favorable circum-
stances covered by current EE mechanisms. Market shaping—influence on what market to
serve—can be added as a fourth type of shaping role. For process-oriented studies, there may be
reason to consider Pivot triggering (e.g., Lehner, 2014) alongside the original category re-labeled
as Venture triggering. We also found definitions of some concepts missing or wanting. Table 1
summarizes our revision suggestions and provide definitions for all concepts in the (revised) EE
Framework.
entrepreneurship scholars. In the following, we elaborate on these either under separate headings
or integrated under others.
Theory Development
Our review found extensive use of eclectic and phenomenon-focused approaches in empirical
research as well as much one-off use of theories (76 studies). The only example of recurring use
are the various branches of institutional theory, which have been employed across theoretical as
well as quantitative, qualitative, and mixed-method studies. This demonstrates two things. First,
institutional theories are a promising theoretical basis for future work in this area. Our cross-
citation analyses gave repeated indications of its knowledge-integrating potential, confirming
that key anchoring theories facilitate knowledge accumulation (Shepherd & Wiklund, 2009;
Singh et al., 2003). We believe institutional theories are especially fruitful if augmented with
elements of the EE Framework, such as variance in EE characteristics, and attention to mecha-
nisms beyond legitimation and demand substitution. However, not all environmental changes
can comfortably be cast as institutional change, and institutional theories have limitations as a
basis for explaining micro-level action (Aldrich, 2010), especially deviant action that breaks
norms and disrupts the status quo, as high-end entrepreneurship tends to do (Bylund & McCaffrey,
2017; Gozman et al., 2018). Hence, other alternatives are also desirable.
Second, the absence of recurring use indicates that other agent- or cross-level theories cur-
rently do not seem fit to fill that void. We therefore call for knowledge accumulation through
indigenous theoretical development tailored to explaining entrepreneurship’s core phenomenon:
new venture creation. The EE Framework—which is not yet full-blown theory—is one possible
vantage point. This can take at least two forms: 1) elevating some facets of the EE Framework to
theory status, and 2) using the EE Framework to augment existing, agent-centric theories.
The former would involve the development of propositions, typologies or process models
(Cornelissen, 2017) concerning the inter- and cross-relationships among EE characteristics,
mechanisms and roles; elements which are currently merely defined, structured, and listed within
the framework (with some speculations about relationships). For example, theorizing could take
aim at explaining how EE characteristics relate to particular mechanisms; how mechanisms
interact and interrelate; how mechanisms and the shaping role pan out across stages of the ven-
ture creation process, and why certain mechanisms should be expected to have an exaggerated
influence on triggering compared to their influence on outcomes, and vice versa, to mention but
a few examples (cf. Cueto et al., 2017; Eesley, Li, et al., 2016; von Briel et al., 2018).
Using the EE Framework to augment existing, agent-centric theories implies theory elabora-
tion (Fisher & Aguinis, 2017). There is no shortage of theories and concepts pertaining to the
effects of variance among agents, and some of them concern how agents can deal with external
change. However, it seems unlikely that the full potential in agent-focused theories about, for
example, individual-level creativity, attributions, and regulatory focus, or firm level theories of
absorptive capacity, dynamic capabilities or managerial attention can be realized without sys-
tematic attention to variance in the changes to which the agents respond (cf. Davidsson, 2020).7
The EE Framework provides suitable material for such theory elaboration by specifying several
types of enablement-relevant variance among environmental changes on different levels, which
can be combined with the variance among agents already highlighted in these theories.
Such matching of agent and enabling conditions in theorizing could lead to realization of the
intent behind Shane and Venkataraman’s (2000) entrepreneurship nexus. The EE concept and
framework offer an alternative that bypasses the problematic assumptions in the nexus idea
(Shane, 2012): that all the relevant conditions exist at the outset; that these conditions by defini-
tion make the difference between certain failure and potential success, and that successful
Kimjeon and Davidsson 19
entrepreneurs correctly perceive the relevant confluence of conditions and their potential at the
start of the journey. By focusing on a delimited set of conditions—environmental changes—and
partial enablement, the EE Framework makes the theorizing task manageable. It also invites
process-oriented theorizing (see von Briel et al., 2018) which Shane and Venkataraman’s (2000)
focus on discovery of pre-existing opportunities came to downplay (Korsgaard, 2013). This can
induce process-oriented theorists’ attention to external conditions despite their active aversion to
conceptualization of objective opportunities (Alvarez & Barney, 2007, p. 15; Arikan et al., 2020).
One type of theory elaboration would be to add not only EE variance but also a temporal dimen-
sion (see Davidsson & Gruenhagen, 2020) to otherwise static, agent-centered theories.
Scenario-Based Experimentation
Although few experimental studies qualified for our review, scenario-based experimentation—
with conjoint- and other designs—has been prominent in related “opportunity identification/
evaluation” research (see Davidsson, 2015; Grégoire et al., 2019). Grégoire and Shepherd (2012;
included in our review) is a particularly relevant application (see also Wood et al., 2016).
Originating from a re-conceptualization of the idea of “objective opportunity,” the EE Framework
readily lends itself to augmenting this research approach. For example, designs can systemati-
cally manipulate scope and onset of EEs, or opacity and agency-intensity of mechanisms. Beyond
an overall assessment of the attractiveness of the situation, identification and/or evaluation of
specific mechanisms and roles can be used as dependent (or mediating) variable. If data on real-
world relationships between mechanisms and outcomes can be obtained or approximated, exper-
iments can address cognitive biases leading to over- and under-emphasis of particular mechanisms
in venture- and pivot triggering. Experimentation also lends itself to combinations of interacting
environmental changes.
The notions of opacity and agency-intensity are of particular interest for studying agent-
enabler interactions in assessing the entrepreneurial potential of enablers. Traditionally, this type
of variance has been attributed solely to the agent as variance in knowledge and resources at
hand. Grégoire and Shepherd (2012) is a forerunner and exemplar in this regard by manipulating
superficial vs. structural alignment of technology-market combinations—theorized as represent-
ing opacity in EE terminology—while using the evaluator’s prior knowledge about markets and
22 Entrepreneurship Theory and Practice 00(0)
technologies as moderator. In a different topical domain, Gielnik et al. (2015) exemplify how
experimentation can be used as supplementary method to gain evidence on causal mechanisms
that could not be tested in an observational main study as well as how experimental design can
be applied to processual research questions.
Conclusion
A swimmer who tries to make waves in the ocean will not achieve much, while surfers who know
how to ride the ocean’s waves can amaze the world while enjoying themselves and reaching their
own goals. Although not all ventures are based on environmental changes, the influence of such
changes on entrepreneurial action and outcomes is no doubt vital in many cases. The rebounding
interest in this previously neglected and dispersed topic of research is a positive sign and is likely
to be further boosted by COVID-19, the climate change challenge, continued development of
digital technologies, and other changes still unknown to us. We hope that our review and agenda
can inspire and guide pathbreaking new work in this domain, accumulating knowledge on how
environmental changes strategically—and sometimes fortuitously—benefit entrepreneurs as
they conceive new ventures and successfully navigate the process of making them become real.
article for all categories of coding. In the case of disagreement or doubt, discussion and re-
examination continued until agreement could be reached. During the extensive coding process, an
additional four papers were deemed ineligible, resulting in a final sample of 94 articles.
Data extraction. For the papers that provide formal hypotheses or propositions, coding of causal
effects was based on theoretical arguments underlying the hypotheses/propositions. For the remain-
ing papers, this coding was based on key, front-end arguments and/or interpretation of findings
where the article’s authors make more than a passing remark about the reasons for a relationship.
That is, it should appear in the main body of the paper (not a single appearance in introduction or
conclusion). The process of data extraction was open-ended as we tracked also the occurrence of EE
characteristics, mechanisms, and roles that are not listed in the EE Framework.
It should be noted that the article inclusion and EE-specified coding involve subjective inter-
pretation to some extent. This is due to the challenge of reviewing literature that predated the EE
concept and framework and thereby applied varying terminologies to describe elements of the
framework. Other coders would likely not arrive at exactly the same coding, but we are confident
that the main thrust of our results would be replicated by other researchers.
General external, environment*, or shock, crisis, disrupt*, chang*, jolt, (venture, business, firm,
institution* new, develop*, trans*, upheaval; organization*, or
Technology tech* or digit* new, novel, break*, develop*, shift; organisation*) and
(creation, founding,
Economic econom* or financ* chang*, shift, swing, fluct*, *up*,
gestation, emergence,
*down*, crisis, collapse,
or formation); (new
depression, boom, recession,
or nascent) and
growth, shock, flourish*, thriving,
(venture, business,
development, expansion,
firm, organization,
recovery, trans*, liberali*, or
or organisation);
reform*;
(opportunity) and
Demographic demograph*, population, migrat*, shift*, chang*, trend, trans*, or (identification,
immigrat*, or emigrat* develop*; creation, discovery, or
Regulatory law, leg*, regulat*, or deregulat* chang*, new, shift*, reform*, or development); start-up;
refine*; entrepreneur*
Environmental natural, environment*, climate, global disaster, degradation, pollution,
warming, hurricane, cyclone, chang*, or shift*;
typhoon, eruption, tsunami,
wildfire, flooding, earthquake, or
weather
Sociocultural soci* or cultur* move*, chang*, shift*, trend,
develop*, trans*, or advance*;
Infrastructure infrastructure
Political poli* shift*, trans*, or chang*
Kimjeon and Davidsson 25
Acs & Sanders, 2012 SBE C R Increasing patent protection from low to moderate
expands knowledge resources; further increases
strengthen the enclosing mechanism but reduce
knowledge spillover
Ahlstrom & Bruton, 2010 ETP C TR Maturing institutions increase legitimacy of
technology entrepreneurs, shaping ventures and
increasing the chance of funding
Akemu et al., 2016 JMS EQL SC The associated social movement provides resource
expansion, legitimation, and demand substitution
mechanisms in the Fairphone case, shaping the
product, venture and process
Audretsch et al., 2015 SBE EQT PI New infrastructure increases connectivity for new
ventures in some sectors (scope) through
increased access to resources and customers
Autant-Bernard et al., 2006 SBE EQT KI Biotech start-ups cluster in regions with high (and
relevant) knowledge infrastructure investments
(triggering by sectoral and spatial scope) through
resource expansion mechanism
Bayus & Agarwal, 2007 MS EQT T Survival advantages of independent vs. corporate
ventures using the latest technology in their
products depend on time of entry (temporal
scope; product-shaping and outcome enhancing
roles)
Bennett, 2019 JBV EQT PI Infrastructure investments trigger new venture
creation in particular areas (sectoral scope)
through resource expansion and demand
expansion/substitution mechanisms
Bennett, 2021 SBE EQT R Increased economic freedom (regulatory EE)
benefits new entry through compression,
conservation and enclosing mechanisms
Black & Strahan, 2002 JOF EQT T, R Bank deregulation benefits new ventures through
conservation and resource expansion
mechanisms, spatially moderated (scope) by
varying regional competition in the banking sector
Browder et al., 2019 JBV C T, SC New technology in the hands of the maker
space movement shapes product-, venture-
and process aspects through compression,
conservation, generation and resource
expansion
Burtch et al., 2013 ISR EQT T Crowdfunding (tech EE) has outcome-enhancing
effects through multiple mechanisms but crowd
effects have limited temporal scope
Cao & Im, 2018 SBE EQT E The onset of the Global Financial Crisis has process-
shaping influence on the relationship between
founders’ human capital and their technology
ventures’ R&D search intensity
Castellanata et al., 2020 SMJ EQT R Reduction of entry barriers offers multiple enabling
mechanisms which increase start-up rates
(triggering) especially among women
Chalmers et al., 2020 JBR C T AI technology can enable venture creation through
a range of mechanisms, some of which have high
opacity
(Continued)
26 Entrepreneurship Theory and Practice 00(0)
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Chang et al., 2011 JBV EQT E Regional economic growth leads to increase in new
venture creation through resource expansion
and uncertainty reduction
Chatterji & Seamans, 2012 JFE EQT R Credit card deregulation triggers new venturing
activity through resource expansion, especially
among financially disadvantaged socio-economic
groups (socio-demographic scope)
Chen et al., 2020 JBV EQT PI China’s high-speed rail expansion has important
scope effects and provides mechanisms as well
as, regarding onset, no announcement effect, i.e.,
no increased venturing before the trains start
running
Cohen & Winn, 2007 JBV C NE, SC Climate change and the sociocultural movement to
counter it enable start-ups through legitimation
and demand substitution
Cojoianu et al., 2020 SBE EQT E, T Helped by new technologies and trust erosion from
the GFC, fintech start-ups are enabled through a
range of mechanisms
Colombelli et al., 2020 RP EQT R Regulatory reform to stimulate innovative young
companies provides conservation, enclosing and
resource expansion mechanisms
Conti, 2018 OSc EQT R Broadened access to R&D subsidy enhances
sectoral survival (outcome-enhancement)
through generation and resource expansion
Cueto et al., 2017 SBE EQT R Spanish support program increases creation and
survival (triggering and outcome-enhancement)
of new ventures by young unemployed
individuals (socio-demographic scope)
Cumming & Knill, 2012 JIBS EQT R More stringent securities regulation is positively
associated with entrepreneurial spawning
induced by venture capital via reduced
uncertainty, resource expansion, and enclosing
mechanisms
Dau & Cuervo-Cazurra, 2014 EQT R Based on multiple enabling mechanisms, economic
JBV liberalization triggers and shapes the products of
formal and informal ventures
David et al., 2013 OSc EQL E, R, O Regulatory and economic-structural changes provide
enablement and shape new organizational forms
(venture-shaping) via demand creation and
demand substitution mechanisms
Dean & McMullen, 2007 JBV C NE Market failure in environmental degradation
triggers entrepreneurial action via expansion of
resources and demand
Dobrev, 2000 OSc EQT E, R Decreasing concentration of newspaper industry
shifts relative profitability, stimulating the entry
of generalist (vs. specialist) ventures
Dutta, 2017 ASQ EQT NE Natural disasters trigger founding of relief
organizations, moderated by spatial scope
(voluntary association legacy)
Eberhart & Eesley, 2018 SMJ EQT O New junior stock exchange provides (financial)
resource expansion mechanism for new
technology firms
(Continued)
Kimjeon and Davidsson 27
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Eberhart et al., 2017 OSc EQT R Bankruptcy reform leads to more high-growth
start-ups by elite entrepreneurs (several roles
driven by uncertainty reduction and resource
expansion moderated by socio-demographic
scope)
Eesley, 2016 OSc EQT R Reduction of institutional barriers to growth
increases legitimacy and expands resources at
reduced agency-intensity, triggering new venture
founding by individuals with high human capital
Eesley et al., 2016 OSc EQT KI Governmental innovation stimulus legitimates
entrepreneur’s investment in technologically
intensive ventures but leads to lower
performance (opposite trigger vs. outcome
effects)
Eliasson & Eliasson, 2006 ERD EQL E Withdrawal of dominant, sophisticated employer
(Pharmacia) expands local resources for new
firms in the same industry (sectoral scope)
Giotopoulos et al., 2017 SBE EQT E Key person factors influence high quality
entrepreneurship more strongly during crisis
(temporal and socio-demographic scope)
Gomber et al., 2018 JMIS EQL T Digital technologies provide a range of mechanisms
(incl. combination and generation) serving
shaping and outcome-enhancing roles
Gozman et al., 2018 JMIS EM T New digital technologies facilitate start-ups’
generation of fintech innovation contributing to
product and process shaping
Grandy & Hiatt, 2020 ASQ EM R Increased regulatory discretion favors independent
start-ups through legitimation and simplified
creation process (process shaping)
Grégoire & Shepherd, 2012 AMJ EQT T Structural and superficial alignment configurations
between new technology and potential market
represent varying opacity, affecting evaluation of
new venture ideas (triggering)
Grégoire et al., 2010 OSc EQT T Structural features of new technology trigger
greater cognitive activity toward a new venture
idea than superficial features, reflecting effects of
variance in opacity
Grube & Storr, 2018 ERD EQL NE Natural disasters legitimate a decision of
entrepreneurs to act on community needs
Günalp & Cilasun, 2006 SBE EQT E Economic indicators such as growth rate imply
increased economic return for new firm
founding due to higher disposable income
Heyman et al., 2019 RP EQT R A range of regulatory changes made conservation
and resource expansion trigger and enhance
outcomes for Swedish ICT ventures
Hiatt & Carlos, 2019 SMJ EM SC, O Shifting socio-cognitive framing of the biodiesel
market over time reduces uncertainty and
increases the legitimation for certain product
varieties over others
Hiatt et al., 2009 ASQ EM SC, R Temperance movement and prohibition expand
demand and production resources for booming
soft drink ventures
(Continued)
28 Entrepreneurship Theory and Practice 00(0)
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Hoppmann & Vermeer, 2020 EQT R Foreign policy initiatives lead to increased venture
JBV capital for domestic solar photovoltaic ventures
(resource expansion)
Hu et al., 2020 ETP EQL E, R, SC Sociocultural, economic and regulatory EEs interact
to provide demand- and supply-side mechanisms
for social ventures
Huang et al., 2017 MIS EQL T New digital technologies shape the business
operation and enables WeCash to significantly
expand their user base
Huggins & Williams, 2011 ERD EQL R Entrepreneurship policy triggers new firm founding
by providing resources
Hunt & Fund, 2016 JMS C R Environmental policies enable environmentally
friendly ventures in the short run through
multiple mechanisms but risk crowding out
superior solutions in the longer run
Itskhoki & Moll, 2019 E C R (Optimal) regulatory change (e.g., tax policies)
enable entrepreneurship unequally by sector
through conservation and resource expansion
Ireland et al., 2008 ETP C TR, SC The extent and nature of entrepreneurial
enablement in Europe’s post-communist
countries will depend on the direction in which
institutional and political environments develop
Jansson, 2011 ERD EM O The evolution of Stockholm’s Internet-related
industry enables and gives shape to further start-
ups through multiple mechanisms that become
less opaque in the agglomeration environment
Kerr & Nanda, 2009 JFE EQT R US banking deregulation provides conservation and
resource expansion that varies by sector and
region (scope)
Kobeissi, 2009 JSBM EQT R The Community Reinvestment Act triggers and
helps the survival of new ventures through
resource expansion
Kolympiris et al., 2014 RP EQT KI Public R&D funding triggers and shapes
biotechnology start-ups through multiple
mechanisms incl. combination and generation
Kromidha & Robson, 2016 ERD EQT T Crowdfunding shapes and enhances the
performance of start-ups through legitimation,
resource expansion and combination, leveraging
the platform’s capacity to reach funders’
networks
Lehner, 2014 ERD EQL T Crowdfunding shapes social ventures and their
creation process by reducing uncertainty and
providing legitimacy and resources
Lynskey, 2006 RP EQL R Regulatory reforms trigger, shape and enhance
the performance of biotech start-ups in Japan
through legitimation and resources
Martin & Schouten, 2014 JCR EQL O Consumer-led change in motorcycle industry serves
to trigger and shape products due to demand
expansion
Meoli et al., 2019 SBE EQT R National reform of university governance leads
to increase in university spin-offs through
compression and legitimation mechanisms
(Continued)
Kimjeon and Davidsson 29
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Mezias & Kuperman, 2000 JBV EQL T, O New technologies and intra-industry change affect
start-ups in the early US film industry via
multiple roles and mechanisms
Mohsen et al., 2019 EQT T The conservation, generation, and demand
expansion benefits that new ventures can
derive from using the latest technology vary
due to different institutional conditions across
countries
Moore et al., 2020 JMS EQT E Increase in monetary foreign aid triggers increase
in formal and informal start-ups in recipient
country
Muñoz et al., 2019 ERD EQL NE Volcanic eruption triggers and shapes new venture
creation but enabling effect is dependent on the
predictability of the onset
Nasra & Dacin, 2010 ETP C TR Economic transition in the UAE stimulates
international entrepreneurship through
legitimation and uncertainty reduction
Nelson & Lima, 2020 SBE EQL NE Entrepreneurial responses to mudslide disaster
in Brazil are driven by demand creation and
contingent on opacity and temporal scope
Pan & Yang, 2019 SBE EQT E Economic development in China triggers and
enhances performance of new ventures through
resource expansion, albeit to varying extent
across sectors and cities (scope)
Partridge et al., 2020 SBE EQT E, T The shale boom in the US triggers and enhances
outcomes for new ventures variously across
sectors, regions, and time (scope)
Roma et al., 2017 RP EQT T Technology ventures benefit from the signaling
value of crowdfunding performance through
uncertainty reduction and resource expansion
Schulz et al., 2016 JBV EQT R Regulatory reform in Mexico saves time and
resources. The response to the reform is
stronger among hybrid entrepreneurs (sectoral
scope)
Sebastiani et al., 2013 JBE EQL SC The ethical consumption social movement triggers
and shapes the Eataly case through several
demand and supply mechanisms
Shane, 2000 OSc EQL T 3D printing triggers and shapes new product
development by founders with prior knowledge
that allow them to overcome high opacity
Shane, 2001 MSc EQT T Narrower market segmentation and higher
effectiveness of patented technologies trigger
and enhance outcomes of new ventures
Shepherd et al., 2000 JBV C O External enablers legitimate new venture (or
product) via reduced liability of newness
enhancing outcomes (i.e., survival)
Simón-Moya et al., 2016 ERD EQT E Economic growth leads to demand expansion,
providing outcome-enhancement
Sine & David, 2003 RP EQL E, R, O Oil crisis in the 1970s triggers new entrepreneurial
action by legitimating new practices and creating
new demand
(Continued)
30 Entrepreneurship Theory and Practice 00(0)
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Sine & Lee, 2009 ASQ EQT SC, R, NE Social movement triggers new entrepreneurial
activity in wind energy by increasing legitimation
and mobilizing resources
Smallbone & Welter, 2012 ERD C TR The enabling influence of economic transition on
the emergence of entrepreneurship in society
varies by gradualness of onset
Song, 2019 SBE C T, R Advances in digital technology platforms and digital
knowledge of citizens trigger entrepreneurial
innovation and enhance profit
Tan, 2001 JBV EQT TR Economic transition in China triggers private new
venture creation
Tan & Tan, 2020 OSc EQT TR The positive effects of economic transition on
venture creation varies across venture types and
regions with varying economic structure
Toms et al., 2020 SEJ EQL T, R, PI Financial and technical intermediation help to
shape the product and enhance the outcome of
entrepreneurial activity
Vakili & Zhang, 2018 SMJ EQT R Social liberalization triggers social interaction
that lead to innovation, exploiting resource
expansion, generation, and enclosing
mechanisms
Viotto da Cruz, 2018 JBV EQT T Crowdfunding enhances the possibility of product
release by reducing uncertainty via informational
resources
von Briel et al., 2018 ETP C T Digital technologies offer a range of enabling
mechanisms pertaining to different stages of IT
hardware startup processes
Wang, 2006 SBE EQT E Economic growth triggers new venture creation via
demand expansion
Weber et al., 2008 ASQ EQL SC Social activism (i.e., green revolution) for grass-fed
meat and dairy production provides cultural
codes (legitimation) for new ventures and helps
them to exploit enclosing mechanism and thus
survive
Welter & Smallbone, 2011 JSBM C TR Institutional changes during economic transition
make new venture creation more doable (taking
a triggering role)
Williams & Shepherd, 2016 AMJ EQL NE Haiti earthquake triggers entrepreneurial action
in response to new and/or expanding demand
using expanded available resources
Williams & Vorley, 2017 ERD EQL SC, R Onset gradualness of formal and informal
institutional changes trigger specific type of new
venture (sectoral scope)
Woolley, 2014 ETP EQL T Development of nanotechnology industry slowly
triggers new venture creation via resource
expansion
York et al., 2016 AMJ EQL SC, R Regulatory change led by social movement specifies
a desirable business practice (legitimation;
triggering and product-shaping roles)
York & Venkataraman, 2010 JBV C R, NE Environmental degradation and regulatory change
interactively trigger and enhance the outcome of
innovation led by new ventures
(Continued)
Kimjeon and Davidsson 31
(Continued)
Author Year Journal1 Paper Type2 EE Type3 Main EE Content4
Zhou, 2011 ERD EQT R Triggering impact of a deregulation on new
venturing varies by spatial (inland/northern part
of China), temporal (earlier stage), and sectoral
(previously restricted) scope
Note. (1) The paper types: C = Conceptual [Non-empirical]; EQL = Empirical-qualitative; EQT = Empirical-quantitative; EM
= Empirical-mixed; (2) External Enabler types: E = Economic; KI = Knowledge infrastructure; NE = Natural-environmental;
PI = Physical infrastructure; R = Regulatory; SC = Sociocultural; T = Technological; TR = Economic transition; O =
Other; (3) The paper summaries are our interpretations through the EE Framework lens and not the original authors’
terminology, nor necessarily their main emphasis. The summaries do not reflect all affirmative EE coding in every case;
(4) Journal acronyms are as follows: AMJ (Academy of Management Journal); ASQ (Administrative Science Quarterly);
E (Econometrica); ERD (Entrepreneurship & Regional Development); ETP (Entrepreneurship Theory and Practice);
ISR (Information Systems Research); JBE (Journal of Business Ethics); JBR (Journal of Business Research); JBV (Journal
of Business Venturing); JCR (Journal of Consumer Research); JFE (Journal of Financial Economics); JMIS (Journal of
Management Information Systems); JMS (Journal of Management Studies); MSc (Management Science); MIS (MIS Quarterly);
OSc (Organization Science); OSt (Organization Studies); RP (Research Policy); SBE (Small Business Economics); SEJ
(Strategic Entrepreneurship Journal); SMJ (Strategic Management Journal); and TJF (The Journal of Finance).
Note. 1) Each node represents one paper (with the name of first author) and a linkage between two articles indicates
the cross-citation from later published article to the one published earlier. Types of EE investigated are indicated
in parentheses with the same acronyms used in Table A2 (see note); 2) Two articles dropped from the analysis are
Chalmers et al. (2020) and Mohsen et al. (2019). At the time of retrieval (March 1, 2021), these were not yet available
from Thomson Reuter’s Web of ScienceTM Core Collection which provides bibliometric information for CitNet Explorer.
32 Entrepreneurship Theory and Practice 00(0)
Kimjeon and Davidsson 33
34 Entrepreneurship Theory and Practice 00(0)
Note. Figure A1(g) shows only nodes and linkages of cross-cited papers excluding nodes of 30 non-cross-cited papers
due to limited space.
Kimjeon and Davidsson 35
Note. Figure (i) shows only nodes and linkages of cross-cited papers excluding nodes of 38 non-cross-
cited papers due to limited space.
Funding
The author(s) received no financial support for the research, authorship, and/or publication of this article.
36 Entrepreneurship Theory and Practice 00(0)
ORCID IDs
Jiyoung Kimjeon https://orcid.org/0000-0002-8553-7020
Per Davidsson https://orcid.org/0000-0002-6363-1382
Notes
1. The EE concept has been adopted in numerous works in high tier journals (see Bennett, 2021; Bennett,
2019; Browder et al., 2019; Frederiks et al., 2019; Leten et al., 2016; McAdam et al., 2020; Nambisan,
2017; Obschonka & Audretsch, 2020; von Briel et al., 2018). Elaborate applications of the EE Framework
are starting to appear in high tier entrepreneurship journals (e.g., Chalmers et al., 2021; Chalmers et al.,
2020; Chen et al., 2020).
2. Although Davidsson’s (2015) original definition suggests the EE potentially has an “essential” role in
several ventures’ development, there can be no exact specification of “how much” change is required
for something to be an EE. We hold this to be of limited theoretical and practical importance as neither
researchers nor practitioners are likely to spend much energy on instances of minuscule change.
3. The FT50 journal list (https://www.ft.com/content/3405a512-5cbb-11e1-8f1f-00144feabdc0) includes
Entrepreneurship Theory & Practice, Journal of Business Venturing and Strategic Entrepreneurship
Journal. Additional entrepreneurship journals included are Entrepreneurship and Regional Development;
Family Business Review; International Small Business Journal; Journal of Small Business Management;
and Small Business Economics. EBSCOhost was used to cover The Accounting Review, which is not
captured in Elsevier’s Scopus®.
4. Cross-citation analysis is distinctive from other bibliometric analysis methods such as co-citation and
coupling-citation that compare reference structure of articles (Sainaghi et al., 2018). Studies that em-
ploy cross-citation analysis often rely on a network approach considering articles as nodes and citations
between them as links (Sainaghi et al., 2018). The manageable number of articles in narrowly defined
categories allows us to interpret the patterns of cross-citation based on graphs, visualized using the
CitNet Explorer program (https://www.citnetexplorer.nl; see Figure A1).
5. We reiterate that the studies discuss the variance and effects under many different terminologies and that
the basis for coding may range from being a core aspect of the research to a relatively minor side-issue.
6. To ascertain this was not an artifact of our method, we conducted a search including all journals
listed in Elsevier’s Scopus® database. This yielded 125 candidate articles but only two demonstrate
enabling influence of demographic change (i.e., ageing population) marginally related to new ven-
ture creation (Kohlbacher et al., 2015, Kohlbacher & Rabe, 2015). This additional investigation
verifies the low prevalence of research linking entrepreneurial action and success to demographic
transitions.
7. In this regard, the EE Framework can be seen as a variation of the general call for attention to context in
entrepreneurship and organizational research (Johns, 2006; Welter, 2011; Zahra et al., 2014)
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Author Biographies
Jiyoung Kimjeon is PhD Student in Business Administration at Jönköping International
Business School, Sweden.
Per Davidsson is Talbot Family Chair in Entrepreneurship at the Australian Centre for
Entrepreneurship Research, QUT, Australia, and professor of Entrepreneurship at Jönköping
International Business School, Sweden.