CANCELLED - Foundations of Entrepreneurship https://ssl1.peoplexs.com/Peoplexs22/CandidatesPortalNoLogin/ ...

Course
CANCELLED - Foundations of Entrepreneurship

Faculty
Mirjam van Praag (MvP), Professor, Department of Strategy and Innovation (SI), Copenhagen Business School

Vera Rocha (VR), Assistant Professor, Department of Strategy and Innovation (SI), Copenhagen Business School

Ali Mohammadi (AM), Assistant Professor, Department of Strategy and Innovation (SI), Copenhagen Business
School

Toke Reichstein (TR), Professor, Department of Strategy and Innovation (SI), Copenhagen Business School

Course Coordinator
Toke Reichstein (TR), Professor, Department of Strategy and Innovation (SI), Copenhagen Business School

Prerequisites
Participants should have basic knowledge of entrepreneurship and innovation theory, of economics and quantitative
research methods such as econometrics and experiments. Basic understanding of core theories of organizations and
strategic management and the economic theory of the firm will be helpful. The course is compulsory for the SI cohort
and open to all PhD students.

Aim
The main goal of the course is to increase familiarity with and develop an in-depth understanding of the key themes
and empirical research methods of entrepreneurship. Emphasis will be put on empirical applications to test theories.
Most of the course will be devoted to teaching how to do empirical research in the domain of entrepreneurship,
broadly defined.

Focus will be on the contributions making use of quantitative methods and data including experiments. Theories,
frameworks, concepts, and controversies that collectively form the foundation for entrepreneurship research are
discussed. The course will aim to build capabilities in critically discussing and developing research questions/projects
in entrepreneurship.

Students will get acquainted with various methodological approaches employed in the field and learn to analytically
review and evaluate academic articles from a diverse body of literature relevant to entrepreneurship research.

Course content
Entrepreneurship is a multidisciplinary research area with contributions from economics, psychology, sociology,
geography, and management to mention a few. No other subject has attracted more scholarly, managerial and policy
attention than the phenomenon of entrepreneurship in recent years.

From macro- and microeconomics to demography and organizational sociology, from finance and business studies to
cognitive psychology, the quest for understanding its antecedents, sources, processes and consequences has
produced a large, vibrant, eclectic field. And with the growing advent of cross-disciplinary, multi-level work employing
specialized panel data sets and more rigorous econometric techniques, initial concerns that the field lacked “a
professional identity defined by a unifying theory” (Thorntorn, 1999; Shane & Venkatmaran, 2000) have abated.

The magnitude of academic interest in entrepreneurship is not surprising given the vitality of it for several key
outcomes. Entrepreneurship has long been considered as an engine of economic growth and regional development
(Schumpeter, 1934; Van Praag and Versloot, 2010). Entrepreneurs have been shown to destroy established
organizational competencies (Tushman & Anderson, 1986), shape evolutionary trajectories of technologies (Nelson &
Winter, 1982), cause substantial regulatory changes (Dobbin & Dowd, 1997) and create, enact and obliterate social
topologies, organizational forms, markets and industries (Nelson & Winter, 1982; Burt, 1992; Carroll & Hannan,
2000). They have been placed at the heart of the theories of income inequality, social mobility and social welfare
(Sorensen, 1996) and ethnic absorption (Waldinger, Aldrich & Ward, 1990) and have been acknowledged to be a
critical driver of the flow and distribution of resources across physical space (Audretsch & Feldman, 1996; Sorenson &
Stuart, 2001). Research has also associated entrepreneurial acts with firm growth and performance (Evans, 1988),
organizational revival (Burgelman, 1983; March, 1991; Zajac, Golden & Shortell, 1991) and global corporate
expansion (Birkinshaw, 1997).

Research Foundations in the Economics of Entrepreneurship is designed to offer an integrative view of how to do
research to better understand why only some individuals but not others choose to become entrepreneurs, why only
some persons but not others discover opportunities and exploit them and why and how eventually only some
ventures succeed.

Teaching style
This course is organized in ten interactive lectures on specific topics. Students are requested to prepare presentations
and to actively participate in class discussion. Assignments also include the development and discussion of a research
proposal.

Professors will primarily discuss their own research to emphasize research strategies and challenges. Altogether, we
make sure that a set of important topics is discussed and that classic contributions to the literature around these
focal themes are included in the course as well.

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Lectures, student presentations, paper discussions, literature critiques

Lecture plan
Date Time Session Lecturer

Session 1 Entrepreneurship – Context versus Disposition (TR)

Entrepreneurship will be defined and core instigators of entrepreneurship will be
discussed. First, the session will highlight that the context in which individuals
Monday,
resides and works has an impact on the probability of them becoming an
February 13:00
entrepreneurs and certainly also the fate of the business they establish. Toke
10th -
Reichstein
Room: 16:00
Second, personal characteristics of the subjects will be highlighted as a core
KL2.53
driver of their entrepreneurial endeavours focusing foremost on psychological
aspects. The session will seek to provide a combined understanding of the two
mechanisms building on selection dynamics from a labour market perspective.

Session 2 (Entrepreneurial) Teams and (Gender) Diversity (MvP)

Wednesday, Teams have become increasingly important as decision-making bodies. This is
February 13:00 the case in many sorts of organizations, varying from judges in collegial courts or
Mirjam
12th - academic researchers to business start-ups. Consequently, the effective
van Praag
Room: 16:00 composition or diversity of teams has become an interesting topic of research.
KL2.53 We discuss studies into the effects of (gender) diversity and discuss a study on
drivers of sorting into teams (Gompers et al.,2017).

Session 3 Entrepreneurial finance – theories and supply (AM)

Monday,
Start-ups face “financing constraints” and financial decisions may have a
February 13:00
profound influence on the future options and choices. In this session, we first Ali
17th -
focus theoretical differences between entrepreneurial finance and corporate Mohammadi
Room: 16:00
finance in general. We then dive into different sources of financing (i.e Venture
KL2.53
capital and crowdfunding).

Session 4 Teaching Entrepreneurship: Evidence from Field Experiments

(MvP)
Can entrepreneurship be taught? This question has been subject to heated
debate for many years. The sharp increase in the number of entrepreneurship
education programs offered suggests though that the general consensus has
Wednesday, become that entrepreneurship can indeed be taught. From a policy perspective,
February 13:00 this is an appealing thought.
Mirjam
19th -
van Praag
Room: 16:00 The possibility that entrepreneurship can be taught creates a window of
KL4.74 opportunity for (educational) policies aimed at enhancing entrepreneurship. In
this session, we discuss various field experiments that evaluate the effectiveness
of entrepreneurship education programs that are offered at various levels, from
primary school (Rosendahl Huber et al., 2014), to secondary school (Elert et al.,
2015) to universities (Oosterbeek et al., 2010) and to active entrepreneurs
(Fairlie et al., 2015).

Session 5 Behavioural Economics of Entrepreneurship (MvP)

Thursday,
Economic theories predict that entrepreneurs are less risk and ambiguity averse
February 09:00
than others. Furthermore, it is conjectured that they are more optimistic and/or Mirjam
20th -
more overconfident than others. In this lecture, we discuss some recent tests of van Praag
Room: 12.00
these theories from the perspective of behavioural economics. We also look at
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investors in entrepreneurial ventures from a behavioural economics perspective.

Session 6 Entrepreneurship and Personnel I: Founders versus Joiners

(VR)
Wednesday, Founders and startups get most of the press coverage and the attention in
February 13:00 academic, public, and policy debates. However, for every founder there is often
26th - one or several early employees taking nearly equal risks by joining an early- Vera Rocha
Room: 16:00 stage company. In this lecture we will discuss a) what distinguishes founders
KL2.53 from joiners in a startup context, b) how employees in startups versus
established firms differ from each other, and c) which career implications joiners
might face when (and after) working in a startup.

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Session 7 Entrepreneurship and Personnel II: Hiring for Startups (VR)

This lecture will continue the discussions initiated in Session 6 and focus on the
Tuesday,
founder’s role as a team catalyst who mobilizes personnel into the startup.
February 09:00
Research on how young ventures find early employees and how these might
27th - Vera Rocha
affect startup performance is still at an emerging stage. In this session we will
Room: 12:00
discuss potential research avenues in this area, as well as the empirical
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challenges often faced when studying these questions, while having an overview
of different methods that can tackle some of those issues.

Session 8 Organizational Heritage and Entrepreneurs (TR)

Much of the literature assumes that newly established firms are fonts of their
Thursday,
13:00 parent firms suggesting that the entrepreneurs heavily draws on his/her
March 5th Toke
- experience when deciding on the organizational practices installed in the new
Room: Reichstein
16:00 setting. This indeed has implication for the operations and performances of these
KL4.74
firms. This session will seek to discuss this premise and establish the
mechanisms that may cause us to accept or reject the heritage hypothesis.

Session 9 Entrepreneurial finance- demand (AM)

Friday,
13:00 The choice of financing and behaviour of investors have an impact on
March 6th Ali
- performance and success of start-ups. In this section, we focus on how different
Room: Mohammadi
16:00 investors select their investment portfolios and what are impact of ties with
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investors on performance of entrepreneurial ventures.

Session 10 Value of Entrepreneurs in the Labour Market (TR)

Entrepreneurship is a risky career profile. Most entrepreneurs will go back into
the labour market seeking to secure a more traditional occupation making a
living from a regular pay. But what is the value of the entrepreneurial experience
Monday, in the labour market?
13:00
March 9 Toke
-
Room: Are the entrepreneurs penalized in the labour market upon returning or will they Reichstein
16:00
KL2.53 outshine their counterparts when re-joining the regular work force? And do
entrepreneurs in fact earn as much or even more than other comparable
counterparts if they stay entrepreneurs? This session will seek to discuss the
mechanisms that may play a role in determining the value of entrepreneurs when
re-entering into the labour market.

Monday,
13:00
March 23rd Toke
- Exam
Room: Reichstein
16:00
KL2.53
Friday, mvp.si@cbs.dk
24:00 Research Proposal due
April 3rd tre.si@cbs.dk

Learning objectives

Exam
Participation in class is required. The final grade is NOT determined based upon class participation, but on a written
essay aimed to develop a research paper combining different parts of the syllabus and a three-hour written exam on
(a) specified topic(s) to be discussed (open ended question)

Other

Start date
10/02/2020

End date
09/03/2020

Level
PhD

ECTS
5

Language
English

Course Literature

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References Session 1
Stuart, T. E., & Sorenson, O. (2003). Liquidity events and the geographic distribution of entrepreneurial activity.
Administrative Science Quarterly, 48(2), 175-201.

Özcan, S., & Reichstein, T. (2009). Transition to entrepreneurship from the public sector: Predispositional and
contextual effects. Management Science, 55(4), 604-618.

Zhao, H., & Seibert, S. E. (2006). The big five personality dimensions and entrepreneurial status: A meta-analytical
review. Journal of applied psychology, 91(2), 259.

Further Readings Session 1

Nanda, R., & Sørensen, J. B. (2010). Workplace peers and entrepreneurship. Management Science, 56(7),
1116-1126.

Sauermann, H. (2018). Fire in the belly? Employee motives and innovative performance in start-ups versus
established firms. Strategic Entrepreneurship Journal, 12(4), 423-454.

Sørensen, J. B. (2007). Bureaucracy and entrepreneurship: Workplace effects on entrepreneurial entry.

Administrative Science Quarterly, 52(3), 387-412.

References Session 2
Gompers, Paul A., Kevin Huang, and Sophie Q. Wang. "Homophily in Entrepreneurial Team Formation." Harvard
Business School Working Paper, No. 17-104, May 2017

Hoogendoorn, S., Oosterbeek, H. & Van Praag, M. (2013). The impact of gender diversity on the performance of
business teams: Evidence from a field experiment. Management Science, 59, 1514-1528

Lyngsie, J., N. Foss (2017) The more, the merrier? Women in top-management teams and entrepreneurship in
established firms. Strategic Management Journal, 38, 487-505.

Further Readings Session 2

Adams R, Ferreira D (2009) Women in the boardroom and their impact on governance and performance Journal of
Financial Economics 94(2), 291–309.

Ahern K, Dittmar A (2012) The changing of the boards: The impact on firm valuation of mandated female board
representation Quarterly Journal of Economics 127(1), 137–197.

Hoogendoorn, S., Parker, S.C. & van Praag, M. (2017) Smart or diverse start-up teams? Evidence from a field
experiment, Organization Science, 28(6), 1010-1028.

References Session 3
Amit, Brander, Zott, 1998: “Why do Venture Capital Firms Exist? Theory and Canadian Evidence,” Journal of Business
Venturing 13, 441-466.

Demir, Tolga and Mohammadi, Ali and Shafi, Kourosh, Crowdfunding as Gambling: Evidence from Repeated Natural
Experiments (July 31, 2019). Swedish House of Finance Research Paper No. 19-7. Available at SSRN:
https://ssrn.com/abstract=3430744 or http://dx.doi.org/10.2139/ssrn.3430744

Song Ma, The Life Cycle of Corporate Venture Capital, The Review of Financial Studies, , hhz042, https://doi.org
/10.1093/rfs/hhz042

Arthur Korteweg, Morten Sorensen, Risk and Return Characteristics of Venture Capital-Backed Entrepreneurial
Companies, The Review of Financial Studies, Volume 23, Issue 10, October 2010, Pages 3738–3772, https://doi.org
/10.1093/rfs/hhq050

Further Readings Session 3

Cochrane, J. H. 2005. The risk and return of venture capital. Journal of Financial Economics, 75(1): 3-52.

Kaplan, S. N., & Stromberg, P. 2003. Financial contracting theory meets the real world: An empirical analysis of
venture capital contracts. Review of Economic Studies, 70(2): 281-315.

Mohammadi, Ali and Shafi, Kourosh, How Wise Are Crowds? A Comparative Study of Crowds and Institutions in Peer-
to-Business Online Lending Markets (August 15, 2016). Swedish House of Finance Research Paper No. 17-10;
Available at SSRN: https://ssrn.com/abstract=2752085

Zhelyazkov, P. I., & Gulati, R. 2016. After the break-up: the relational and reputational consequences of withdrawals
from venture capital syndicates. Academy of Management Journal, 59(1): 277-301.

References Session 4
Elert, N., Andersson, F. W., and Wennberg, K. (2015). The Impact of Entrepreneurship Education in High School on
Long-Term Entrepreneurial Performance. Journal of Economic Behavior and Organization, 111(1):209–223.

Fairlie, R.W., D. Karlan, and J. Zinman (2015): “Behind the GATE experiment: Evidence on effects of and rationales
for subsidized entrepreneurship training.” American Economic Journal: Economic Policy 7(2): 125-161.

Huber Rosendahl, L. Sloof, R. & van Praag, C.M. (2014), The Effect of Early Entrepreneurship Education: Evidence

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from a Field Experiment The European Economic Review, Vol. 72, 11: 76-97

Oosterbeek, H., M. van Praag, and A. IJsselstein (2010): “The impact of entrepreneurship education on
entrepreneurship skills and motivation.” The European Economic Review, 54(3):442–454.

Further Readings Session 4

Von Graevenitz, G., D. Harhoff, and R. Weber (2010): “The effects of entrepreneurship education,” Journal of
Economic Behavior & Organization, 76(1): 90–112.

Martin, B., J. McNally and M. Kay (2013). Examining the formation of Human Capital in Entrepreneurship: A Meta-
Analysis of Entrepreneurship Education Outcomes meta-analysis, Journal of Business Venturing, Vol. 28, 2: 211-224

References Session 5
Bernstein, S., Korteweg, A., & Laws, K. 2017. Attracting Early-Stage Investors: Evidence from a Randomized Field
Experiment. Journal of Finance, 72(2), 509-538.

Hvide, H. and G. Panos (2014) Risk Tolerance and Entrepreneurship, Journal of Financial Economics 111(1),
200-223.

Koudstaal, M., Sloof, R. & van Praag, M. (2016), Risk, Uncertainty and Entrepreneurship: Evidence from a Lab-in-the-
Field Experiment Management Science, Vol. 62(10), 2897-2915

Zunino, D., G. Duschnitsky & M. van Praag (2019) How do investors evaluate past entrepreneurial failure? Unpacking
failure due to lack of skill versus bad luck in the context of equity crowdfunding, Working Paper.

Further Readings Session 5

Camerer, C. and Lovallo, D., 1999. “Overconfidence and Excess Entry: An Experimental Approach”, American
Economic Review, vol. 89(1): 306-318.

Moskowitz, T. and A. Vissing-Jørgensen (2002): The returns to entrepreneurial investment: A private equity premium
puzzle? American Economic Review 92(4), 745-778.

References Session 6
Roach, M., Sauermann, H. (2015), “Founder or Joiner? The role of preferences and context in shaping different
entrepreneurial interests”, Management Science, 61(9): 2160-2184.

Rocha, V., van Praag, M. (2019), “Mind the gap: The role of gender in entrepreneurial career choice and social
influence by founders”, Working Paper.

Sauermann, H. (2018) “Fire in the belly? Employee motives and innovative performance in start-ups versus
established firms.” Strategic Entrepreneurship Journal, 12(4): 423-454.

Further Readings Session 6

Burton, M. D., Dahl, M. S., Sorenson, O. (2018), “Do start-ups pay less?”, Industrial and Labor Relations Review,
71(5): 1179-1200.

Lazar, M., Miron-Spektor, E., Agarwal, R., Erez, M., Goldfarb, B., Chen, G. (2019) “Entrepreneurial team formation”.
Academy of Management Annals. In press. DOI: 10.5465/annals.2017.0131.

References Session 7
Honoré, F., Ganco, M. (2019). Entrepreneurial teams’ acquisition of talent: Evidence from technology manufacturing
industries using a two-sided approach. Forthcoming in Strategic Management Journal.

Rocha, V., Brymer, R. A. (2019), “Founder pipeline hiring in young firms”, Working Paper.

Rocha, V., Carneiro, A., Varum, C. (2018), “Leaving employment to entrepreneurship: The value of coworker mobility
in pushed and pulled-driven startups”, Journal of Management Studies, 55(1): 60-85.

Further Readings Session 7

Agarwal, R., Campbell, B. A., Franco, A. M., Ganco, M. (2016), “What do I take with me? The mediating effect of spin-
out team size and tenure on the founder-firm performance relationship”, Academy of Management Journal, 59(3),
1060-1087.

Rocha, V., van Praag, M., Folta, T. B., Carneiro, A. (2019), “Endogeneity in strategy-performance analysis: An
application to initial human capital strategy and new venture performance”, Organizational Research Methods, 22(3):
740-764.

References Session 8
Feldman, M. P., Ozcan, S., & Reichstein, T. (2019). Falling Not Far from the Tree: Entrepreneurs and Organizational
Heritage. Organization Science, 30(2), 337-360.

Sørensen, J. B., & Fassiotto, M. A. (2011). Organizations as fonts of entrepreneurship. Organization Science, 22(5),
1322-1331.
Dencker JC, Gruber M, Shah S (2009) Pre-entry knowledge, learning, and the survival of new firms. Organ. Sci.
20(3):516–537.

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Further Readings Session 8

Agarwal R, Campbell BA, Franco AM, Ganco M (2016) What do I take with me? The mediating effect of spin-out team
size and tenure on the founder–firm performance relationship. Acad. Management J. 59(3):1060–1087.

Chatterji AK (2009) Spawned with a silver spoon. Strategic Management J. 30(2):185–206.

Ruef M. (2005) Origins of organizations: The entrepreneurial process. Res. Sociol. Work 15:63–100.

References Session 9
Shai Bernstein, Xavier Giroud, Richard R. Townsend, 2016. The Impact of Venture Capital Monitoring,Journal of
Finance. 71( 4): 1591-1622.
Shafi, K, Mohammadi, A. and Johan, S. A. (forthcoming): Investment Ties Gone Awry. Academy of Management
Journal, https://doi.org/10.5465/amj.2017.0103.

Chemmanur TJ, Loutskina E, Tian, X. 2014. Corporate venture capital, value creation, and innovation. Review of
Financial Studies 27(8):2434 – 2473.
Xavier Walthoff-Borm, Armin Schwienbacher, Tom Vanacker, 2018, Equity crowdfunding: First resort or last resort?,
Journal of Business Venturing,Volume 33, Issue 4,2018.

Further Readings Session 9

Kaplan, S. N., Sensoy, B. A., & Strömberg, P. (2009). Should investors bet on the jockey or the horse? Evidence from
the evolution of firms from early business plans to public companies. The Journal of Finance, 64(1), 75-115.

Sorensen, M. 2007. How smart is smart money? A two-sided matching model of venture capital. The Journal of
Finance, 62(6): 2725-2762.

Gompers, P. A. 1996. Grandstanding in the venture capital industry. Journal of Financial Economics, 42(1): 133-156.

References Session 10
Hamilton, B. H. (2000). Does entrepreneurship pay? An empirical analysis of the returns to self-employment. Journal
of Political Economy, 108(3), 604–631.

Mahieu, J., Melillo, F., Reichstein, T., & Thompson, P. (2019). Shooting stars? Uncertainty in hiring entrepreneurs.
Strategic Entrepreneurship Journal.
Manso, G. (2016). Experimentation and the returns to entrepreneurship. Review of Financial Studies, 29(9),
2319–2340.

Further Readings Session 10

Failla, V., Melillo, F., & Reichstein, T. (2017). Entrepreneurship and employment stability—Job matching, labour
market value, and personal commitment. Journal of business venturing, 32(2), 162-177.

Dillon, E.& Stanton, C. (2017). Self-employment dynamics and the returns to entrepreneurship (National Bureau of
Economic Research Working Paper Series, No. 23168).

Hyytinen, A., & Rouvinen, P. (2008). The labour market consequences of self-employment spells: European evidence.
Labour Economics, 15(2), 246–271.

Fee
DKK 6,500 - EUR 880

Minimum number of participants

10

Maximum number of participants

10

Location
30 hours (3 hour lectures, starting in week 7)

Copenhagen Business School

2000 Frederiksberg

Building Kilen, Kilevej 14A

Where? Check it out on Google map.

Room KL2.53 on the following dates:

10th, 12th, 17th, 20th, 26th, 27th February and 6th, 9th, 23rd March

Room KL4.74 on the following dates:

19th February and 5th March

Contact information
For the content of the course please contact Course Coordinator Toke Reichstein - tre.smg@cbs.dk

For the administration of the course please contact PhD Adviser Bente S. Ramovic - bsr.research@cbs.dk

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Registration deadline
03/02/2020

Please note that the registration is binding after the registration deadline.

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