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Introduction to Entrepreneurship and

Innovation

Introduction to Entrepreneurship & Innovation

Entrepreneurship is an old concept:

Discover/identify/exploit opportunities to get economic benefit
(Xenophon, Greece Phylosopher, 430-354 B.C)
Year 1970 – 1980: Changes in economies and society
Oil crisis, economic recession, technology development, globalization…
Market orientation is created
More business opportunities generated
 More small businesses established.
 Startup, entrepreneurship have been in focus of researchers, practitioners,
policy makers

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Introduction to Entrepreneurship & Innovation

Entrepreneurship research increases:

Number of Univ. having entrepreneurship courses: 1600 with 2200 modules
on entrepreneurship.
MBA syllabus in Entrepreneurship increase
PhD and Master theses in Entrepreneurship increase
More thann 44 English Research Journals involving entrepreneurship field
Number of Journals specific in entrepreneurship increases.
More researchers from different fields: Economics, management, organization,
psychology, society

Introduction to Entrepreneurship & Innovation

Number of entrepreneurship studies published

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Introduction to Entrepreneurship & Innovation

Entrepreneurship definition:
90 different definitions in researcher, business manager/director,
politician community (Gartner, 1990)
77 different defintions in research papers (Morris, 1998)

This is because that Entrepreneurship is a very specific field

(Landstroem, 2005)

Introduction to Entrepreneurship & Innovation

Typical Entrepreneurship Definition

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Introduction to Entrepreneurship & Innovation

An entrepreneur: is a person with
The vision to see an innovation and
The ability to bring it to market
(Global Entrepreneurship Index, 2018)

Introduction to Entrepreneurship & Innovation

The “Newness” in market and firm (Davidsson, 2003)

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Introduction to Entrepreneurship & Innovation

Entrepreneurship as a academic field
Entrepreneurship as a function of the market
Entrepreneurship as an individual behavior
Entrepreneurship as a process

Introduction to Entrepreneurship & Innovation

Entrepreneurship as a function of the market
What happens in the market when an entrepreneur acting?
Five Entrepreneurial functions:
 The entrepreneur as risk-taker/risk-manager (Say, 1803; Knight,
1916).
 The entrepreneur as opportunity creator/innovator (Schumpeter,
1912; Dahmén, 1950; Baumol, 1993).
 The entrepreneur as coordinator of limited resources (Say, 1803;
Casson, 1982).
 The entrepreneur as alert seeker of opportunities (Mises,
1951; Kirzner, 1973).
 The entrepreneur as capitalist (Smith, 1776; Ricardo, 1817;
Marshall, 1890)

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Introduction to Entrepreneurship & Innovation

Two different economic perspectives:
Entrepreneur create the imperfection in the
market by introducing innovations “Creative
Destruction” (Schumpeter, 1934)
 Market opportunities are not existed in the market
but created by the entrepreneur
 The creation of innovation causes the imperfection
in the market Creative Destruction Schumpeter:
Entrepreneur seeks the imperfection to 1883 - 1950
withdraw from the market (Kirzner, 1973)
 Market opportunities are already existed in the
market
 Market opportunity exploitation results in more
effective resource usage

Kirzner 1930 - nay

Introduction to Entrepreneurship & Innovation

Kirzner (1985):
Integrated perspective:
 Entrepreneur creates imperfection in the market by introducing
innovations (Schumpeter, 1934) and Entrepreneur seeks the such
opportunities to exploit

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Introduction to Entrepreneurship & Innovation

Entrepreneurship as an individual behavior
Basing on behavioral science
Seeks the answers for questions: (Stevenson & Jarillo, 1990):
Who is the Entrepreneur?
Why does the entrepreneur act?
Focusing on psychological and behavioral characteristics of the
entrepreneur.
24 charactersitics of the Entrepreneur studied.
Pioneering researchers: McClelland (1961)

Psychologicial characteristics  Business performance

Introduction to Entrepreneurship & Innovation

Psychological traits of Entrepreneurs in research (Carland & ctg., 1984)

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Introduction to Entrepreneurship & Innovation

(Landstroem., 2005)

Introduction to Entrepreneurship & Innovation

Entrepreneurship as a process
Psychological entrepreneurial studies results in controversial
conclusions
The existence of the gap:
 Psychological and behavioral characteristics
Entrepreneurship is a complex phenomena and diversity
Gartner (1988)
 Entrepreneurship studies should be conducted in
process perspective

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Introduction to Entrepreneurship & Innovation

Entrepreneurial process có thể được đặc trưng bởi:

An act of human volition that involves a change of state, and it is a

unique and dynamic process which involves numerous antecedent
variables, and its outcomes are extremely sensitive to the initial
conditions of these variables.

Charles Hofer & William Bygrave (1991)

Introduction to Entrepreneurship & Innovation

Entrepreneurship as a process:
Research contents:
Emergence of new organizations  Gartner (1988, 1990,
1993)
 Creating imperfection in the market

Emergence of opportunities  Venkataraman & Shane

(1997)
 Identification and deletion of imperfection in the market

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Introduction to Entrepreneurship & Innovation

Since 1990 until now:
 Psychological characteristics  Business performance: Reduced
Internal variables should be included (Wiklund, 2005)

Psychological  Internal variables  Business performance

 Entrepreneurship is a complex and diversified field

Statistical methods reduce its diversity (Gartner, 2004)

Introduction to Entrepreneurship & Innovation

Entrepreneurship research framework

(Gartner, 1985)

Prof. William B. Gartner

Prof. Gartner is the 2005 winner of the Swedish Entrepreneurship Foundation International
Award for outstanding contributions to entrepreneurship and small business research

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Introduction to Entrepreneurship & Innovation

Individuals
Need for achievement
Locus of control
Risk taking propensity
Job Satisfaction
Environment Organization
Previous work experience
Venture capital availability Overall cost leadership
Entrepreneurial parents
Presence of experienced entrepreneurs Differentiation
Age
Technically skilled workforce Focus
Education
Accessibility of suppliers The new product or service
Accessibility of customers or markets Parallel competition
Govt influences Franchise entry
Proximity of universities Geographical transfer
Availability of land or facilities Supply shortage
Accesibility of transportation Tapping unutilized resources
Attitude of the area population Customer contract
Availability of supporting services Becoming a second source
Living conditions Joint ventures
Occupational & industrial differentiation Licensing
More recent immigrants in population Market relinquishment
Large industrial base Sell off of division
Availability of financial resources Favored purchasing by govt.
Barriers to entry Process Governmental rule changes
Existing competitors Locate a business opportunity
Substitute Accumulate resources
Bargaining power buyers/suppliers Market products and services
Produce the product
Build an organization
Respond to govt and society

Introduction to Entrepreneurship & Innovation

Entrepreneurship and innovation:
Entrepreneurship, innovation are the two sides of a coin.
 Entrepreneurship, Innovation are driving forces for business
and economic development.
“The age of entrepreneur” American President Reagent,
1985)
The economic development and the entrepreneurship study
development are correlated.

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Introduction to Entrepreneurship & Innovation

Relations between economic development and entrepreneurship study
development

Introduction to Entrepreneurship & Innovation

A promising idea is an invention: It is the creation of an idea in a
laboratory, a test of the principles involved, and an act of technical
creativity where a concept may be suitable for patenting
Innovation entails actually delivering on the idea’s promise by
creating distinctive value and paying attention to the needs of
customers.

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Introduction to Entrepreneurship & Innovation

Christensen (1997), identified two types of innovations: disruptive innovations
and sustaining innovations.
The former, disruptive innovations involve a new value proposition by which new
markets are created.
 In such instances, individuals or business organisations seize upon basic inventions and
transform them into economic innovations, thereby disequilibrating and altering the existing
market structure, then waiting until the process eventually settles down before the next wave
of innovation begins.
In contrast, the latter, sustaining innovations are best thought of as improvements
to existing products, processes or markets.

Introduction to Entrepreneurship & Innovation

Schumpeter (1934) distinguished inventions from innovations and identified ‘Five Types of
Innovation’

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Introduction to Entrepreneurship & Innovation

Innovation is a competitive advantage
Type of innovations:
Business model innovation
Organizational innovation
Product innovation
Process innovation
Marketing innovation

Introduction to Entrepreneurship & Innovation

In the past: (Schumpeter, 1942) :
Entrepreneurship is in relation with SMEs and entrepreneur
(Individual level)
Entrepreneurship among a group of persons, networks.
Present:
Organizational entrepreneurship:
 Entrepreneurial Orientation (EO)
 Entrepreneurial Strategy (ES)

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Introduction to Entrepreneurship & Innovation

Giới thiệu về khởi nghiệp

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Giới thiệu về khởi nghiệp

Giới thiệu về khởi nghiệp

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