Kuala Lumpur Metropolitan Business School

Assignment 1 - Case Study Analysis

(Group/Individual)
Name MOHD FASARUL BIN MD ISA
ID 00000118232
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Course (subject) Managerial Accounting & Finance
Course Code MBA7113
Assignment title Case Study (Essay)
Lecturer Faizal Asfan Bin Mohamad
Hand in date TBA
Weightage 20 %
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 CONTENTS

1.0 SUMMARY OF THE ARTICLE......................................................................................3

2.0 EXPLAINATION...............................................................................................................3

3.0 NEW FORMS OF TECHNOLOGY ENTREPRENEURSHIP.....................................6

4.0 EVALUATE THREE (3) ALTERNATIVE FORMS OF TECHNOLOGY AND

DIGITAL ENTREPRENEURSHIP.............................................................................................7

5.0 IMPLICATIONS FOR DIGITAL TECHNOLOGY ENTREPRENEURSHIP

THEORY AND PRACTICE........................................................................................................8

6.0 CONCLUSION...................................................................................................................9

REFERENCES............................................................................................................................10

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1.0 SUMMARY OF THE ARTICLE

The article was writing by Ferran Giones and Alexander Brem (2017) and the title is “Digital
technology entrepreneurship: A definition and research agenda.” This article is focusing on the
how people use technology to create new businesses and make money in the digital age. The
author defines technology, digital technology, and digital entrepreneurship to promote discussion
on digitization's impact on entrepreneurship and establish a future research agenda.

Technology entrepreneurship research has reached a consolidation stage, requiring revision and
revisitation to address existing achievements and gaps. According to Tony Bailetti, technology
entrepreneurship is defined as investing in projects involving specialised persons and diverse
teams related to scientific and technological breakthroughs in order to create value for a
corporation. Facebook's IPO garnered more than $16 billion, and the mobile and social media
revolution altered the definition of technological entrepreneurship.

The study investigates the impact of digitization on technology entrepreneurship from three
perspectives: technological opportunity, entrepreneurial process, and resource acquisition, with a
focus on the entrepreneur-opportunity nexus. The technique of MacInnis (2011) is used in this
study to explain technology entrepreneurship, distinguishing between distinct varieties and
identifying consequences for researchers, entrepreneurs, and other stakeholders involved in its
promotion.

2.0 EXPLAINATION

“This revolution has not only changed how organizations connect with customers, but it has also
transformed the meaning of technology entrepreneurship”

Technology Entrepreneurship is an important area of study in management sciences, bridging the

gap between entrepreneurship theory and management theory. It entails the foundation and
evolution of new enterprises, as well as the creation and exploration of new prospects. The
advancement of science and technological innovation has a substantial influence on this process,
making it critical to comprehend and investigate.

Technology entrepreneurship is a global phenomenon that involves invention, creativity, and

competitiveness. Because the Internet spawned various technologies, it is difficult for inventors

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to build something that is not already being produced internationally. Technology entrepreneurs
confront enormous challenges in shifting from innovation to market development since they
must regularly release their goods, making them visible to the international marketplace and
other entrepreneurs, in order to rapidly increase their consumers and markets.

Through innovations, Schumpeter highlights the importance of entrepreneurs in rethinking value

generation patterns. Globalization, knowledge, and the growing importance of innovation in
national innovation systems have resulted in the formation of new entrepreneurial ecosystems.
Dorf and Byers describe technological entrepreneurship as recognizing high-potential
capitalization, controlling growth, and taking big risks.

Technological entrepreneurship entails putting together resources, technological systems, and

tactics in order to seek possibilities. It consists of nine major components: new enterprises,
communities, universities, businesses, capital, markets, business sectors, government,
professionals, advisers, and incubators. The most significant component is the entrepreneur, who
possesses technical abilities and competencies. A management attitude, an awareness of
company evolution, and strategic thinking are required for successful new businesses.
Entrepreneurs are motivated by independence, opportunity exploitation, and value creation.

The information technology business relies on entrepreneurial networks to accelerate the earliest
phases of the startup life cycle. Universities are critical in terms of producing a qualified
workforce and serving as nodes in networks connecting firms, incubators, research institutes,
clusters, and technology parks. Collaboration between these groups promotes innovation,
knowledge transfer, and the development of human resources. Technological parks, incubators,
accelerators, and hubs foster collaborative settings by facilitating interaction among
communities, resources, ideas, and technology.

For founders and investors, technological entrepreneurship offers both great returns and
significant dangers. Validating prospects and company concepts is one of the challenges. The
purpose is to produce economic value by utilizing or developing new technologies. Acquiring the
ability to spot business possibilities is essential for a successful endeavor.

Entrepreneurs need to be proactive, understanding the business environment and entrepreneurial

ecosystem components to develop strategies to minimize risks and maximize competitive

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advantage. They need to formulate proactive strategies and deployment plans to make startups
competitive or increase existing ones. The relationship between entrepreneurs and the
entrepreneurial ecosystem is crucial for opportunities identification, knowledge acquisition, and
future business value conceptualization.

Schumpeter defines entrepreneurs as people who engage in new activities and initiatives with the
goal of creating a new global order while destroying the old one. Entrepreneurship entails
identifying, developing, and capitalizing on possibilities to generate value through new products,
services, processes, and organizations. Entrepreneurs identify business possibilities and adapt to
changes and demands. In the entrepreneurial ecosystem, Davidson proposes three major streams
of thought: objective, subjective, and creative. These tactics assist businesses in identifying,
capitalizing on, and responding to environmental opportunities.

AI, advanced materials, cloud technology, autonomous vehicles, synthetic biology, virtual
reality, robotics, blockchain, 3D printing, and IoT are examples of emerging technologies that
can significantly contribute to addressing societal needs and challenges, potentially accelerating
the 2030 Agenda's implementation for humanity.

Through digitalization and automation, frontier technologies are driving global structural shifts,
with young people becoming early adopters. They are, nevertheless, disproportionately affected
by bad effects connected with young people's usage of digital items. Many young people are
dubbed "digital natives," while many in underdeveloped nations lack access to and literacy in the
digital world. The digital gap disproportionately impacts women and youth in poor nations, with
2 billion people lacking internet access and 9 out of 10 youth residing in Africa, Asia, or the
Pacific. This is a crucial gap since individuals without digital access or literacy are unable to
participate in digital entrepreneurship. Emerging technologies have the potential to exacerbate
the digital divide and inequities, requiring universal and equitable digital access. Governments
should prioritize growing connection while addressing possible negative consequences such as
disproportionate impact on lower-skilled jobs and dangers to young people's privacy and mental
well-being.

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3.0 NEW FORMS OF TECHNOLOGY ENTREPRENEURSHIP

Entrepreneurship is a dynamic process that entails taking chances, being innovative, growing
businesses, hiring the appropriate people, managing money, and taking personal risks. It entails
someone who is continuously looking for change, responding to it, and turning it into
possibilities. Entrepreneurs are creative individuals who inject fresh combinations of ideas and
resources into the economy, dynamically shaking it out of its equilibrium condition. They are
either on the lookout for or uncover opportunities, making decisions regarding an unknown
future. Entrepreneurs are experienced people who make decisions on their own and manage
resources. They also have particular personality attributes, such as being a charismatic leader.

One of new form in technology entrepreneurship is knowledge-based innovation. Knowledge-

based innovation is often the center of attention and receives ample funding in the world of
entrepreneurship. It is commonly what people refer to when discussing innovation. However, not
all knowledge-based innovations hold significant importance; some are actually quite trivial.
Nonetheless, among the innovations that have made history, knowledge-based ones rank highly.
It is important to note that the knowledge driving these innovations is not limited to scientific or
technical knowledge. Social innovations, which are also rooted in knowledge, can have an equal
or even greater impact. What sets knowledge-based innovation apart from all other types is its
unique characteristics, including the time it takes to develop, the rate at which it succeeds or
fails, its predictability, and the challenges it presents to entrepreneurs. Similar to popular
celebrities, knowledge-based innovation can be temperamental, unpredictable, and difficult to
manage.

Hence, innovativeness is critical for the success and effectiveness of modern enterprises,
allowing them to gain a competitive edge through beneficial consequences such as enhanced
quality, cost reduction, customer loyalty, internationalization, and management process
modernization. Small and medium-sized firms (SMEs), as defined by staff count, revenue, and
asset size, play an important role in creating innovativeness.

When discussing the distinctive characteristics of companies within this particular sector, several
authors emphasize their notable potential for innovation. This potential is justified by qualitative
features such as a high level of entrepreneurial spirit and adaptability, prompt decision-making,
close and direct relationships with the surrounding environment, and a limited formalization of

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operations. However, various studies suggest that the level of innovativeness in small and
medium-sized enterprises (SMEs) is lower compared to larger enterprises. Furthermore, the
engagement in innovation and the implementation of innovative solutions tend to decrease as the
size of the company decreases. One significant weakness that small businesses face in this regard
is a significant lack of resources, both financial and non-financial, in comparison to larger
enterprises. This shortage restricts the scope of operations, the level of marketing, research and
development, investment activities, and ultimately, the level of innovation.

Technology entrepreneurship seeks to boost the innovativeness of small and medium-sized

businesses by converting research and potential from scientific and research institutes into goods
and services. Intellectual entrepreneurship, academic entrepreneurship, technology transfer and
commercialization, and knowledge management provide as theoretical basis for this notion.

With produced goods and services, technology entrepreneurship supports SMEs, increasing
competitiveness and market expansion. However, a lack of resources stifles creativity. They use
financial and non-financial assistance from the corporate environment to engage in knowledge
transfer and innovative technologies. This strategy is built on a company's favourable potential.

4.0 EVALUATE THREE (3) ALTERNATIVE FORMS OF TECHNOLOGY AND

DIGITAL ENTREPRENEURSHIP

According to Ferreira and colleagues (2016) and Beckman and colleagues (2012), technology
entrepreneurship is a wide concept that blends entrepreneurship and technology-based
innovation, coinciding with Bailetti's (2012) approach and trying to capitalise on opportunities in
science and engineering.

Technology entrepreneurship study frequently focuses on new entrants in high-tech companies,

but it has also focused on university spin-off commercialization activities. This viewpoint is
frequently described as a technology-push situation, in which entrepreneurs find uses and
markets for difficult technologies. However, technological digitization has an impact on the total
entrepreneurship process and on entrepreneurial processes in general.

Alternative forms of technology and digital entrepreneurship depicts the many forms of
technology entrepreneurship, which frequently focuses on the technology-based service rather

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than the underlying technology underpinning it. It is more similar to recombinant innovation or
demand-driven methods to technical innovation, and it is more similar to notions in information
systems such as artefacts, platforms, and information infrastructure.

According to the report, understanding how organizations may profit from lean startup practises
or activate global niches for their goods might help them be more productive. These businesses
may have unique entrepreneurial goals, such as tackling social issues or establishing a reputable
institution. The entrepreneur's social identity influences their ambitions and exit strategies.
Digital entrepreneurs hope to sell their businesses to larger corporations, transferring their user
base and technological advantages.

5.0 IMPLICATIONS FOR DIGITAL TECHNOLOGY ENTREPRENEURSHIP

THEORY AND PRACTICE

Instead of a clear separation between digital and technology entrepreneurship, the digital
transformation of input technologies has widened the range of technology entrepreneurs,
widening the term of "technology" to include both scientific advances and smartphone
applications. Digital technology entrepreneurship combines components of technology and
digital entrepreneurship, with a focus on recognising and exploiting opportunities via digital
artefacts. Entrepreneurs create businesses based on technologies and services, expanding on
Bailetti's (2012) concept.

Digital technology entrepreneurship combines components of technology and digital

entrepreneurship, with a focus on recognising and capitalising on opportunities via digital
artefacts. It entails establishing businesses based on technologies and services. The use of digital
technologies Engineers, scientists, and entrepreneurs face issues in the dynamics of digital
platforms and infrastructures. They strategically blend product expertise with consumer
information. Introducing new entrepreneurship words could assist researchers in better
understanding entrepreneurs' motives, starting behaviours, and financing preferences. While not
directly applicable to entrepreneurs, it may assist them in making a conscious decision regarding
their technology entrepreneur type.

The integration of digital technologies in entrepreneurship presents numerous opportunities for

researchers, entrepreneurs, and policymakers.

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Researches

In traditional technological entrepreneurship, entrepreneurs must decide whether to license or

commercialize their technology. Platforms, network effects, and dominant designs define
product boundaries and scalability for digital technology entrepreneurs, who are entrenched in
linked networks. This provides chances to update technology entrepreneurship growth trends to
incorporate digital technology entrepreneurs. The co-evolution of digital technology
entrepreneurship and infrastructure governance, as well as the influence of regulation on
entrepreneurial activity, should be studied.

Entrepreneurs

Digital aspects in technology entrepreneurship provide a brighter future for entrepreneurs by

enabling born-global methods and enabling both lean and global firms. Digitization enables rapid
product growth and the development of early prototypes for reward crowdfunding campaigns,
dissolving conventional barriers. The capacity to build and innovate business models is critical
for successfully navigating the numerous potential futures in technological entrepreneurship.

Entrepreneurship in digital technology includes both positive and bad characteristics. Fast
growth and forward leaps might put ambitious entrepreneurs in developing ecosystems at greater
risk of failure. New entrants into the IoT ecosystem, for example, encounter difficulty owing to a
lack of structure and stable standards. Digital artifacts, on the other hand, can speed learning and
growth.

6.0 CONCLUSION

Although the digital revolution has had a tremendous impact on entrepreneurship around the
world, the discipline of technology entrepreneurship study has struggled to keep up. This article
suggests three phenomena, each with its own roots and emergent dynamics: technology
entrepreneurship, digital technology entrepreneurship, and digital entrepreneurship. Because
these occurrences are distinctive, they provide several research opportunities.

(2151 words)

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REFERENCES

Schumpeter, J. A. (1976). Capitalism, Socialism and Democracy, New York, Harper and Row
Shane, S. & Venkataraman S. (2004), Guest editors introduction to the special issue on
technology entrepreneurship, Research policy, 32, 181-4

Bailetti, T., (2012). Technology entrepreneurship: Overview, definition, and distinctive aspects.
Technology Innovation Management Review, 2(2), pp.5-12.

Beckman, C., Eisenhardt, K., Kotha, S., Meyer, A., and Rajagopalan, N., (2012). Technology
entrepreneurship. Strategic Entrepreneurship Journal, 6, pp.89-93.
http://dx.doi.org/10.1002/sej.1134

Shane, S. and Venkataraman, S., (2001). Entrepreneurship as a field of research: A response to

Zahra and Dess, Singh, and Erikson. Academy of Management Review, 26(1), pp.13- 16.
http://dx.doi.org/10.5465/AMR.2001.27879269

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