The Promise of Entrepreneurship as a Field of Study

By Scott Shane & S. Venkataraman Presented by Scott Davis

For a field of social science to have usefulness. the phenomenon of entrepreneurship has lacked a conceptual framework.Background on Entrepreneurship To date. . overlap). it must have a conceptual framework that explains/predicts a set of empirical phenomena not explained/predicted by conceptual frameworks already in existence in other fields (AKA don¶t overlap).

(217- .Intent of the Study By providing a framework that both sheds light on unexplained phenomena and enhances the quality of research. we seek to enhance the field¶s legitimacy and prevent its marginalization as only ³a research setting´ or ³teaching application´ (217-218).

discover and exploit those opportunities. 3) Describe why entrepreneurial opportunities exist and why some people.5 Goals 1) We define the domain of the field. 2) Explain why organizational researchers should study entrepreneurship. and not others. .

5) Conclude w/ brief reflections on the potential value of the framework presented here (Pg. .Cont.218). 4) Consider the different modes of exploitation of entrepreneurial opportunities.

and exploit them (218). and exploitation of opportunities. The field involves the study of sources of opportunities. . the process of discovery. evaluated. by whom. and the set of individuals who discover. and with what effects opportunities to create future goods and services are discovered. evaluate. and exploited.1) Defining Entrepreneurship The field of entrepreneurship is the scholarly examination of how. evaluation.

Q¶s Researchers Ask 1) Why. when. when. and how opportunities for the creation of goods and services come into existence? 2) Why. when and how different modes of action are used to exploit entrepreneurial opportunities (218)? . and how some people and not others discover and exploit these opportunities? 3) Why.

Ways to Approach Q¶s 1) The disequilibrium approach (218). but but can include. Opportunities can be sold to other individuals or to existing organizations. 2) Argue that E. does not require. . the creation of new organizations (219).

3) Their framework complements sociological and economic work in which researchers have examined the population-level factors that influence firm populationcreation. .Cont. and exploitation of opportunities. B) Examines influence of individuals and opportunities. Framework: A) Focus on existence. rather than environmental antecedents and consequences. C) Framework broader than firm creation. discovery.

Firm creation process researchers assume that opportunities exist. and will be exploited through creation of new firms. . 4) Their framework also complements research on the process of firm creation (219).Cont. opportunities are exploited through firms and markets. have been discovered. Authors in study look at the conditions under which E.

and E. into these products and services (219). is a mechanism by which society converts technical info.2) Why Study Entrepreneurship? 1) Much technical info. . is ultimately embodied in products and services.

.Cont. 3) Of the different sources of change in a capitalist society. 2) E. Schumpeter isolated entrepreneurially driven innovation in productions and processes as the crucial engine driving the change process (219). is a mechanism through which temporal and spatial inefficiencies in an economy are discovered and mitigated (219).

requires discovery of meansmeans-ends relationships. Opp. . opportunities differ from the larger set of all opportunities for profit b/c E. E. E. whereas the latter involve relationships.3) Existence of E. raw materials. optimization within existing means-ends frameworks means(220). services. Opportunities: Situations in which new goods. and organizing methods can be introduced and sold at greater than their cost of production.

? Blind Luck? 1) The possession of the prior info necessary to I.3) Why some ppl and not others discover E. Visualize . he or she may fail to do so b/c of an inability to see new means-ends meansrelationships (222). Opp. Even if a person possesses the prior info necessary to discover an opportunity.D. 2) The cognitive properties necessary to value it (222). an opportunity.

has to believe that the expected value of the entrepreneurial profit will be large enough to compensate for the opportunity cost of other alternatives (223). Opportunities Nature of the opportunity E. E.3) Decisions to Exploit E. . Research shown that. exploit opportunities having higher expected value (223). on average.

3) Cont. Individual differences in optimism. Their perception. Research argues that people with greater selfselfefficacy and more internal LOC are more likely to exploit opportunities. . Individual Differences Decision to exploit and pursue opportunities depends upon: Their opportunity cost.

4) Modes of Exploitation ) Creation of ne fir s ( ierar esear en: s o s E. ire o ple entar o peten e. is ies) ( 4). pport nities are en opport nities don¶t re assets. ore li el to ta e t is for ore n ertain. in i itin t e sale of entreprene rial opport nities. . en opport nities destro Info annot e prote ted ell intelle t al propert la s.

is more likely to take this form when: Capital market imperfections make it difficult for independent entrepreneurs to secure financing.4) Cont. 2) The sale of opportunities to existing firms (markets) (224). . Research shows E.

we have presented a frame work for exploring them. .5) Conclusion Although those in the field face many difficult Q¶s. Many skeptics claim that the creation of such a body of theory and the subsequent assembly of empirical support for it are impossible.

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