Article

Innovative Entrepreneurship:Testing the Theory of Environmental Determinism

Article

Innovative Entrepreneurship:Testing the Theory of Environmental Determinism

If you want to read the PDF, try requesting it from the authors.

Abstract

It is often pointed out that like many areas of social science research, entrepreneurship research lacks direction for want of an appropriate paradigm. While it is true that researchers often fail to explicitly state the paradigms under which they conduct their investigations, it cannot be denied that most studies follow the assumptions of an implicit paradigm. Two such paradigms, which are proposed as antithetical to each other are the Strategic Choice Paradigm and the Population Ecology (Environmental Determinism) Paradigm. The former explains the phenomenon of entrepreneurship by the strategic choices of the individual, while the latter by the process of environmental selection. This paper details an attempt to test the influence of environmental factors on the emergence of innovative enterprises. A sample of 157 enterprises was classified into high, moderate, and low innovation groups, which were further classified according to the regions, time of startup, and industry. Thus there were three sets of two-way classifications, which enabled the testing of the proportions of innovative enterprises under different environmental conditions compared to the proportions in the total sample using Chi-square tests. The Chi-squares were not found to be significant, indicating that there was no significant difference among various environmental conditions in terms of the emergence of innovative enterprises. The theory of environmental determinism, therefore, is not supported. This finding would imply, among other things, that training and development of individuals is more effective in bringing about innovative entrepreneurial/managerial performance than the creation of conducive environment and facilities.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

... However all these models are developed based on the Entrepreneurial Event Model of Shapero and the Theory of Planned Behaviour of Ajzen. The path breaking researches on entrepreneurship in twenty-first century includes the entrepreneurial heuristics by Manimala (1992) and entrepreneurial effectuation by Sarasvathy (2001). In entrepreneurial heuristics, Manimala (1992) defines entrepreneurship because of certain decision rules made by the entrepreneur from time to time. ...
... The path breaking researches on entrepreneurship in twenty-first century includes the entrepreneurial heuristics by Manimala (1992) and entrepreneurial effectuation by Sarasvathy (2001). In entrepreneurial heuristics, Manimala (1992) defines entrepreneurship because of certain decision rules made by the entrepreneur from time to time. Heuristic is the thumb rule that guide the management decision in starting up and management of a new venture. ...
... Research on entrepreneurship has had its focus shifting between the person, the project and the environment, depending on the paradigms chosen by the researcher (Manimala, 2002). In this, two major dimensions of entrepreneurship research are the person (entrepreneur) and the society in which he operates (Gaikwad, 1978), that are commonly labelled as the strategic choice model and population ecology model (Manimala, 1992) respectively. Researcher who believes in the strategic choice model would tend to focus on the entrepreneurial personality, while those who believe in the population ecology model would tend to focus on the role of the environment in stimulating entrepreneurship (Manimala, 2002). ...
Article
Full-text available
In this work, we find a synergy between two highly acclaimed approaches of entrepreneurship theory, i.e., population ecology approach and strategic choice approach, and thus its focus is on 'situation-person context' of the entrepreneurial process. With the help of empirical research on a sample ICT technopreneur of India, the relationship between various 'social and environmental factors' as perceived by the technopreneur to their 'technopreneurial competence' measured with the help of a self rating questionnaire (SRQ) propounded by McClelland (1973) have been explored. The findings suggest that there is a statistically significant difference between perceptions of technopreneurs towards the role of a few of the social factors, as their level of technopreneurial competence differs. However, the same do not show any significant difference towards the role of external environmental factors such as technological factors, political factors and so on. This paper with unique 'situation-person context' dimension will provide key insights for entrepreneurship educator to deal with these factors, especially while dealing with the emerging technopreneur.
... Since none of them could get the average score required for treating them as a commonly observed cause of sickness, it may be legitimately inferred that the primary reason why organisations becomes sick is the inefficiency in their internal management. This was also seen in a few earlier studies done by one of the authors where he found an absence of any relationship between environmental conditions and strategy-making (Manimala 1992(Manimala , and 2010). While the absence of correlations between environment and strategy is counter-intuitive it probably suggests that the primary reason why an individual or organisational actor behaves in a particular fashion is the nature of the entity rather than the environmental influences. ...
Article
Purpose – The purpose of this paper is to report on a research study aimed at comparing the causes of organisational decline and turnaround strategies involved in cases of successful and unsuccessful turnarounds, with a view to identifying the differences, if any, between the two groups, which in turn is expected to provide useful information to academics, practitioners and policy makers. Design/methodology/approach – Since turnaround is a business phenomenon of general interest, their stories are often published in business periodicals, which are a rich source of data on them. In order to tap this data source, the present paper employed a method of content analysis for the proposed investigation on the cause of organisational decline and turnaround strategies used. In order to quantify the data, a three-point scale was developed, where the presence of a cause/strategy is rated as “3”, its ambivalence as “2” and its absence as “1”, whose validity was assessed through the inter-rater agreement indices. The data thus generated are amenable to statistical analyses, using which the more commonly prevalent causes of organisational decline and the strategies commonly employed for turnaround by the successful and unsuccessful companies are identified. Findings – The findings of the present study have generated a few useful insights. First, the primary causes for organisational decline are the internal weaknesses of the organisation; in fact the external changes can adversely affect the organisation only if it is internally weak. Second, organisational decline caused by multiple factors (which is usually the case) can be managed effectively by adopting a variety of strategies; hence a single-pronged strategy is often found to be ineffective. Third, the more successful turnarounds had a diverse portfolio of strategies including those of institution-building, often employed in a phased manner, consistent with the stage theories of turnaround. Research limitations/implications – The limitations of this research arise mainly from the generation of data from published sources and the consequent biases, which can be managed, to a large extent, by using multiple sources for the same case for reducing the publishers’ biases as well as by having multiple raters for identifying the researcher’s biases, if any. Originality/value – The study has highlighted the need for addressing the internal causes of organisational decline on a priority-basis rather than blaming the external factors, besides pointing to the need for adopting a variety of strategies for dealing with the diversity of causes affecting the organisation’s health, particularly the need for institutionalising the changes. These findings can be of help especially to turnaround managers and policy-makers in dealing with organisational decline and thus contribute to the creation and enhancement of economic value.
Chapter
New ventures in an economy, like the new sprouts in an ecosystem, have a significant role in stimulating and developing the economy. However, start-up ventures are also saddled with the liabilities of smallness and newness and therefore, are vulnerable to various environmental forces. In view of the beneficial impact of new ventures on the economy in terms of innovations, employment generation and wealth creation, governments and other public institutions are interested in facilitating their survival and growth. The focus of such facilitation, for a long time, has been on creating a benign environment for business, which was later found to be ineffective without the simultaneous development of the entrepreneurial orientations and capabilities of the individual. Hence, the focus has now shifted to the field of higher education, which is expected to build entrepreneurial competencies in individuals. While it is possible for higher education to impart the knowledge and, to some extent, the skills necessary for business creation, the attitudes and orientations are formed much earlier through the early (family) socialization and primary level education. It would therefore follow that entrepreneurship education has to start from the early-stage development of the individual, which is the foundation on which the higher education system can further develop the entrepreneurial individual. Once a strong foundation is laid, the efficacy of the higher education system for entrepreneurship development can be improved by various initiatives such as: (1) external association and assistance schemes; (2) interdisciplinary programs; (3) specialized offerings in entrepreneurship; (4) entrepreneurship skill development; (5) real-life entrepreneurial opportunities as part of the curriculum; (6) distance education through electronic media; and so on. The overall model for entrepreneurship education has to address the issues relating not only to the task environment but also to the general environment including the sociocultural norms prevalent in the country.
Chapter
Industrial clusters have been recognized as an important tool for the economic development of a region. Research has hence focused on the identification of the essential ingredients of an innovation ecosystem that would support and sustain a business cluster, so that such clusters could be promoted by creating the relevant ecosystem. Having studied well- developed clusters, researchers often come out with a comprehensive list of such ecosystem ingredients such as: geographical proximity of firms, sectoral specialization within the cluster, close inter-firm interactions, access to investment funds and financial services, infrastructural facilities, favourable government policies, business support services, technology sources and support, and social capital and formal/informal networks among entrepreneurs. An often-unstated inference from these findings is that such ingredients are the cause of cluster formation, and therefore the best way to promote a business cluster is to create such institutions in the proposed region. What is often forgotten is the fact that many of these institutions or characteristics are consequences, rather than causes, of cluster development. An evolutionary study of the Bangalore ICT cluster has shown that there are at least four distinguishable stages of cluster development, namely: incubation, nucleation, agglomeration and attrition, with each of them being supported by a different type of ecosystem.
ResearchGate has not been able to resolve any references for this publication.