Research Outputs
Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?
Despite the extensive literature on the relationship between entrepreneurship and institutions, there is limited knowledge of the relationship between institutions and engagement after failure. This study compares the entrepreneurial engagement of entrepreneurs who have recently experienced failure and individuals without entrepreneurial experience, emphasizing the interaction of government policies and programmes (formal institutions) and individualistic/collectivist cultures (informal institutions) with business failure and its impact on entrepreneurial engagement. We test our hypotheses using multilevel analysis on a large cross-sectional sample that combines individual level data from the Global Entrepreneurship Monitor (GEM) database with country level data from 49 economies. We provide evidence of selection bias for the entrepreneurial engagement of entrepreneurs after failures and of the role of culture as a significant aspect of re-entry into entrepreneurship. Therefore, our evidence helps reinforce the view that postfailure entrepreneurs are a special group of entrepreneurs and validates the contribution of institutional economic theory in explaining this phenomenon, especially the key role of informal institutions.
Dissecting the ecosystems’ determinants of entrepreneurial re-entry after a business failure
Purpose: This study aims to evaluate the role of entrepreneurial ecosystems conditions (formal, informal and social capital) on different types of entrepreneurial re-entry at a global scale. Design/methodology/approach: Given this phenomenon’s nature, this study builds a panel of data of 54 economies covering different (advanced and emerging) countries across the globe during the period 2004–2017 by mixing multiples sources of information (e.g. Global Entrepreneurship Monitor, the World Economic Forum, the World Bank and the International Monetary Fund). The statistical analysis consisted of the fixed-effect dynamic generalized method of moments (GMM) estimation for panel data. Findings: Three empirical insights emerge from the study. First, the entrepreneurial ecosystem’s formal conditions are mainly configured to support high-growth entrepreneurship ignoring re-entrepreneurs. Consequently, the formal conditions’ contribution is very limited in emerging economies. Second, the analysis of informal conditions revealed social media’s critical contribution for legitimizing entrepreneurship and supporting those entrepreneurs who want to re-enter the domestic or international market after a business failure. Third, social networks built during previous business angels or entrepreneurial experiences or with other entrepreneurs also play a crucial role for re-entrepreneurs to overcome the weaknesses in the entrepreneurial ecosystems’ conditions. Originality/value: The study contributes to two ongoing academic debates among entrepreneurship scholars. The first is related to how the entrepreneurial ecosystem supports entrepreneurial activity in different economic contexts. The second is related to the study of the contextual determinants of entrepreneurial re-entry after a business failure.
Adaptation of an innovation management model in biotechnology, the influence of the innovation system and the institutional factors: Case of INNBIO - Universidad de Concepción, Chile
This article aims to understand the way the innovation management model of a biotechnology centre (INNBIO), which belongs to a regional university in a developing country, adapts through time to the influence of institutional factors. Evidence provides the academic world with a new view on how an innovation management model adapts. It was gathered in an original, yet rigorous, way by applying mixed research strategies with a qualitative approach. The former allowed to analyse INNBIO from the inside, as well as to observe the way interactions between internal and external institutions that make up an innovation system are established. Main results show a bigger influence of the national innovation system compared to the local one and a strong influence of internal institutional factors such as: quality in the information of projects, focus on the relationship with researchers, and the challenge of creating and managing a research team.
Rol de las escuelas de negocio, a través de sus estudiantes, en el contexto de un sistema regional de innovación: Caso UCSC región del Biobío
El objetivo del presente trabajo es proponer un modelo conceptual que caracterice el rol que podrían adoptar las Escuelas de Negocio (ENE); mediante sus estudiantes, para apoyar la innovación empresarial de pequeñas empresas y emprendedores locales, bajo el contexto de un Sistema Regional de Innovación (SRI). Para lo cual se ensaya teóricamente sobre el asunto y se aplica el método de investigación basado en casos, a la experiencia de la Facultad de Ciencias Económicas y Administrativas de la Universidad Católica de la Santísima Concepción (Chile), de tal manera de generar evidencia que apoye la validación del modelo conceptual. De este modo el estudio de casos permitió apreciar la complejidad del fenómeno en análisis y demostrar la existencia de beneficios concretos que reciben los actores del SRI como consecuencia de la ejecución de las actividades de los estudiantes de las ENE, bajo el modelo conceptual propuesto. Así también el estudio deja en evidencia que, independientemente de los beneficios que puede generar el modelo, existe una gran voluntad y motivación por parte de estudiantes, emprendedores, pequeños empresarios y otros actores del SRI para trabajar de forma colaborativa a fin de mejorar la innovación, la gestión empresarial y los aprendizajes asociados a estos temas.
The entrepreneurial profile after failure
Purpose – The purpose of this paper is to examine the profile of entrepreneurs who failed in previous businesses, but despite their initial failure, decide to start or maintain another business. Based on the literature, re-entrepreneurs present some unique characteristics that allow them to overcome and learn from their previous ventures. Moreover, following the institutional dimensions literature, the paper shows that these dimensions should also affect the prevalence and type of re-entrepreneurial profiles. Design/methodology/approach – Traditional ANOVA and logistic regression analysis were used as a way to test several hypotheses. Moreover, decision trees were implemented to provide further insights with respect to the characteristics of the relationships under study. Data from the Global Entrepreneurship Monitor Survey (Adult Population Survey 2016 for Chile) is the main source of information. Findings – The results of this paper show that for Chilean entrepreneurs, there is a different profile between those who fail and abandon and those who decide to start a new business after failing. These differences show that post-failure entrepreneurs behave like angel investors, have better business skills and are more experienced. Additionally, they are more likely to share ownership of their new business. Originality/value – The paper contributes to the literature with empirical results that validate that failure determines special characteristics in entrepreneurs through a methodology that is relatively new in the community. Also, the paper discusses how institutions (institutional theory) could play a role in this phenomenon. This can help decision makers and the academic community better understand the nature of this type of entrepreneur and thus provide insights for more focussed public policies and better-informed business decisions.
Do emerging ecosystems and individual capitals matter in entrepreneurial re-entry’ quality and speed?
This study analyses the influence of environmental and individual conditions on the quality and the speed of entrepreneurial re-entries in emerging economies after a business failure. We propose a conceptual framework supported by the institutional economic theory to study the influence of environmental conditions; and human and social capital to study the influence of individuals’ skills, experiences, and relationships. A retrospective multiple case study analysis was designed to test our conceptual model by capturing longitudinal information on occurred events, trajectory, and determinants of twenty re-entrepreneurs. Our results show that the entrepreneurial experience and type of venture influence the accelerating effect of re-entrepreneurship, as well as how environmental conditions moderate the quality and speed of entrepreneurial re-entries. We provoke a discussion and implications for multiple actors involved in the re-entry of entrepreneurs after a business failure.
El perfil del re-emprendedor naciente: El caso chileno
Este trabajo de investigación busca caracterizar las variables que llevan al emprendedor que fracasa a volver a empezar otro negocio y determinar las variables que conforman el perfil re-emprendedor chileno con base en la información obtenida del GEM 2012 (Global Entrepreneurship Monitor).El proceso de revisión de la literatura permite identificar que el re-emprendimiento se ve influenciado por diez variables, las que fueron definidas para su medición con base en la Encuesta a la Población Adulta (Adult Population Survey, APS) del Global Entrepreneurship Monitor (GEM). Seguidamente, se ejecutó el análisis de los datos apli-cando un modelo de regresión logística entre tres grupos en estudio: emprendedores nacientes que no han descontinuado en los últimos 12 meses; emprendedores que descontinuaron y luego vuelven a emprender en los últimos 12 meses, y emprendedores que descontinuaron y no vuelven a emprender en los últimos 12 meses. Los principales resultados que se obtuvieron, mediante el análisis de regresión logística binaria, corresponden a la caracterización del perfil re-emprendedor chileno, dando a conocer que la re-entrada es alta para hombres, para individuos que poseen experiencia como inversor informal, para personas que al re-entrar son dueñas de todo el negocio, para personas con un nivel educacional bajo-medio, para personas que conocen a un emprendedor (cuentan con una red de contactos), para individuos que poseen experiencia empresarial, para personas que viven en zonas urbanas y para personas con mayor miedo al fracaso.
Does entrepreneurship ecosystem influence business re-entries after failure?
Previous studies have found a close relationship between exit/failure decisions and entrepreneurial/organisational characteristics. In the same line, entrepreneurship literature has recognised that the context matters in any entrepreneurial process, including “exit,” “failure” or “re-entry.” This manuscript proposes a conceptual framework to identify the elements of the entrepreneurial ecosystem that foster or impede the re-entry into entrepreneurship after a business failure. By reviewing the accumulation of knowledge, we identified the individual, the organisational, and the contextual conditions that influence the trajectory of an individual who decides to re-enter after a business failure. This manuscript provides a better understanding of the critical role of agents involved in the entrepreneurial ecosystem. A provocative discussion and implications emerge for this study in order to reduce individual barriers and unfavourable social norms towards business failure.