Entrepreneurial architecture: a framework to promote innovation in large firms
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AbstractIn spite of the recognition that entrepreneurship and innovation are interlinked, very few studies have attempted to articulate this relationship. The aim of this article is to explain the nature of the relationship between entrepreneurship and innovation in large firms, arguing that entrepreneurship is an antecedent to innovation. The study employs a multidimensional entrepreneurial architecture (EA) framework for the first time and tests the effect of a battery of entrepreneurship measures on innovation output, which is reflected as degree and frequency of incremental and radical innovations. Adopting a quantitative approach, data were collected from 400 corporate firms in Oman representing various sectors of the economy. The EA dimensions reflected through entrepreneurial culture, entrepreneurial structure, entrepreneurial strategies and entrepreneurial leadership were tested through measurement and structural modelling. The results confirmed that entrepreneurship is a precursor to innovation. The EA framework, through its four dimensions, creates a collaborative and complimentary intensity that promotes innovation outputs, which may not be possible from the isolated effects of individual factors. The present study extends the extant literature, explaining how these entrepreneurship measures synergistically impact varying levels of innovation output. It has practical implications for managers in large firms involved in promoting innovation. They can transform the existing organisational architecture into an EA, by transplanting these entrepreneurship measures and creating a framework that promotes innovation.
CitationArshi T, Burns P (2018) 'Entrepreneurial architecture: a framework to promote innovation in large firms', Journal of Entrepreneurship, 27 (2), pp.151-179.
JournalJournal of Entrepreneurship
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Entrepreneurial orientation and its impact on innovation intensity in the Omani corporate sectorArshi, Tahseen Anwer (University of BedfordshireUniversity of Bedfordshire, 2016-11)Entrepreneurial Orientation (EO) is a widely researched construct of corporate entrepreneurship. Despite long-standing research on EO, past studies on this construct have been unable to resolve issues related to its measurement. Innovation Intensity (II) is also a dynamic construct of corporate entrepreneurship but has received relatively less empirical attention. Previous research has reported an absence of an empirically validated quantitative scale of innovation, particularly innovation intensity. This research has addressed these gaps by proposing a refinement and validation of the Entrepreneurial Orientation scale and the development of an Innovation Intensity scale. The research proposes an Entrepreneurial Transformational Model (ETM) positing that EO impacts II. A predominantly quantitative research strategy supported by qualitative inputs, is employed to obtain empirical data from 404 corporate firms in Oman, drawing from a list of corporate firms registered with the Oman Chamber of Commerce and Industry. A mix of questionnaire survey and semi-structured interviews was conducted with senior managers from firms representing various industries of the Omani corporate sector. Utilising exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modelling (SEM), a two-stage data analysis approach was adopted. Measurement and structural models were developed for EO and II measures, while a complete SEM model was developed to test the causal relationship between EO and II. The results indicate that EO is a second-order construct consisting of five first-order factors, namely ready to innovate, competitive aggressiveness, autonomy, risk taking and proactiveness, which are its reflective components. Similarly, II is a second-order construct consisting of two first-order factors, namely degree and frequency of incremental and radical innovation, which are its reflective components. The II scale developed through this study allows corporate firms to assess their innovation intensity on a two-dimensional four-celled grid with varying levels of degree and frequency of innovation. Finally, EO is found to influence II and the entire relationship is posited as Entrepreneurial Transformation Model. This study, by addressing the empirical irregularities, has brought clarity to the measurement of EO and II constructs and is an original contribution to the advancement of theoretical knowledge and improvement in professional practice.
An evaluation of the risks faced by rewards-based crowdfunders to improve their role in entrepreneurial fundingOmidiora, Adetomi (University of BedfordshireUniversity of Bedfordshire, 2022-12)The thesis examines the Rewards-based Crowdfunding model (RBCFM), in order to improve its effectiveness in bridging the entrepreneurial funding gap from a ‘risk perspective’; with an exploration of the impact of the sector on crowdfunder investment decisions. The gaps in the literature in this relatively new area of study, uncovered that although there was some research regarding the motivation of backers and project success, very little had been done in the area of risk - from the viewpoint of the crowd. A pragmatic epistemological stance was adopted, using a mixed method approach, which drew the scientific (risks inherent in the process), normative (risk/reward relationship), psychological (risk perception and attitude to risk) and socio-cultural (participation on social media platforms) theories of risk together, with an attempt to create an appropriate fit for the model. A triangulation parallel convergence model was employed. The quantitative segment of the study was carried out through an analysis of 207 questionnaire results via SPSS, in order to conduct a series of multiple regression analysis alongside a Principal Component Analysis (PCA) of the results. For the qualitative segment, 15 semi-structured interviews were conducted and analysed using a thematic analysis, facilitated by the Nvivo software. The results of both aspects of the data analysis suggest that the investment decisions of Rewards-based Crowdfunders (RBCs) are affected by their perception of a project’s risk, with the risk of not receiving the rewards being the origin point in which all other themes emerge. Both segments of the research seemed to agree that the sector played a somewhat limited role in their investment decisions. RBCs were discovered to firmly stick to their sector/s of interest, because of their interest in the specific rewards. However, the qualitative analysis went on to uncover that crowdfunders do recognise that sectors have inherent sectorial risks – although their ability to correctly assess the level of this risk was highly variable. Furthermore, none of the RBCs interviewed in the study diversified on the Rewards Based Crowdfunding Platforms, as they had tendency to back projects of interest. Elements of crowdfunder’s risk perception and risk/reward stimulus are related to their attitude to risk, and the inherent risks present within each sector. This concept is presented within the NADA pragmatic risk framework provided. This framework should encourage RBCs who perhaps may be interested in backing other sectors but hold themselves back due to an incorrect risk perception. Furthermore, it may also prove useful for potential and present entrepreneurs and backers, in helping them to better understand the dynamics of risk taking – in order to improve their risk perception and help improve the entrepreneurial funding gap.
To explore the factors that influence the millennial generation entrepreneurs identifying entrepreneurial opportunity in MalaysiaAbdul Hami, Heliza (University of BedfordshireUniversity of Bedfordshire, 2020-10)In recent years, development of entrepreneurship in both scholarly and entrepreneurial activity has seen growing importance in Malaysia. Entrepreneurship can be labelled as the “engine of growth”. Simultaneously, entrepreneurs have brought an enormous positive contribution to not only the economic development but also social development. The importance of entrepreneurship to the Malaysian economic growth can be evidenced from the various support mechanism and policies by the Malaysian government. In 2010, the Malaysian government unveiled the New Economic Model, a 10-year plan to double the country’s per capita income by 2020. The New Economic Model has been successful in promoting entrepreneurship by providing entrepreneurial training and funding to encourage entrepreneurship. As a result, from the Malaysia Labour Force Survey (2018), the percentage of entrepreneurs increased by 9% from 2016 to 2017, indicating that the government’s efforts have been fruitful. However, the increase in number shows the classification of age range falls between 22 and 34. Thus, it can be concluded that the young age of the entrepreneurs or familiarly known as millennial generations are those who were born between 1982 and 2000. Reviewing previous research on millennial generation entrepreneurs, particularly from the Malaysian perspective, indicates that the research within the entrepreneurship discipline is fragmented and underdeveloped. Therefore, the topic chosen for this study falls within the focus of entrepreneurial opportunity identification. Research on millennial generation entrepreneurship has hindered knowledge development and creation in the field of entrepreneurship. This study aims to explore the factors influencing millennial generation in identifying entrepreneurial opportunity in Malaysia. This study is relevant in helping to build resilient businesses, to strengthen policy-making and encourage the millennials to consider entrepreneurship as a career. The research is based on qualitative investigation informed by an interpretivist ontology and epistemology. The author adopted semi-structured interviews to gain a deeper understanding of the aim of the study. Purposive sampling was adopted. The selection of participants was based on the specific criterion. The data were analysed using thematic analysis to create a meaningful classification of the influencing factors. All themes were coded using Nvivo 11 software. This study revealed that the factors influencing the identification of entrepreneurial opportunity among the millennial generation entrepreneurs in Malaysia differs based on the business industry, personal background and position. The interview data captured two main categorisations that can be acknowledged as individual factors and environmental factors. The findings that fall under the individual factors include alertness, prior knowledge, entrepreneurial cognition, social network, self-efficacy, personality traits, online digital platform, digital skills and Bumiputera status. Whereas, under the environmental factors, community, economic environment and regulatory or policy seem to be the most prominent factors in identifying entrepreneurial opportunity. The diverse background of the interviewees has added value to the findings by providing contending perspectives to the research. The findings suggest that the factors that influence millennials in identifying entrepreneurial opportunity in Malaysia differ from the in-depth available literature linked to developed countries. This study has advanced our understanding of entrepreneurial opportunity identification in a developing nation. The findings of this study offer fresh insight and value to academics, practitioners, as well as to policymakers and open up several research areas for entrepreneurship development in business start-ups, mainly focusing on the millennial generation. Thus, the findings provide an essential baseline for future quantitative and qualitative studies focusing on the Malaysian millennial generation.