BRQ Business Research Quarterly’s Post

I'm happy to share our new paper “Entrepreneurs’ impatience and digital technologies” with Andrea Ricci and Mariacristina Rossi”, which explores how entrepreneurs' preferences, such as impatience and risk attitudes, impact firms' investments in general and digital technologies. Using RIL data, we found that impatience significantly reduces the likelihood of digital investments. To address potential endogeneity, we implemented an instrumental variable strategy, using exogenous variation from exposure to earthquakes. For more details, check out the paper here: [https://lnkd.in/dNf6FBAe]. #Business #Innovation #TechnologyInvestments

What do you need to know about The Science of Business? Professors Justin B. Craig, Ph.D. Assoc MAPS & Ken Moores provide all you need to know about Business in their great new book of that name, published by Edward Elgar. I was smart enough to know i should attend their seminar at Bond University last night. Steven Lutz ably moderated and had clearly read this book well. Note the free copy of the book that I have!! Lucky me! And I won the door prize! So many gems! I hope I've properly captured them: How simply Justin & Ken explained the need to take a scientific approach to business via the 3 modes of science, theory & practice. Each learn from the other. We know the 'how, what & when', but this is the 'why'. Theory is the lense that makes sense of the mess. There is a business component to everything. Read & understand science for problem solving. We will cope better with new knowledge, this way. A 10 step cycle. Justin referred to a new PhD study by Inca on 32 habitual entrepreneurs. What a gold mine. Economics is the epicentre of business around which accounting, finance, marketing, HR sit. Adam Smith's TWO books: Wealth of Nations & Theory of Moral Sentiments. (Have we gone a bit off course lately?) In 1400's Luca Pacioli of double entry bookkeeping fame, separated owners from the entity(!) AND thought up the Rule of 72!! (how long to get an investment to double based on a set interest rate). Ken advised that Luca wrote about what was being practiced then! Edith Penrose, 1957, Theory of Growth of the Firm is still important to management. Entrepreneurs may be born, but they are made better. (Noel Lindsay). Entrepreneurs make the complex simple. There are 5 dimensions apparently. As Justin said, Economics isn't 'sticking a pin in your eye' stuff, it's ''interesting stuff''. Ken talked of making theory more practical so that it is more easily digestible, and of teaching the history of business. How valuable! Family businesses employ 60% of the global workforce, and outlast publicly listed companies! They are scientists. I hope my notes are reasonable but i will read the book & advise further.

Our recently accepted Journal of Business Venturing paper, "Labor market reform as an external enabler of high-growth entrepreneurship: A multi-level institutional contingency perspective", is now available online. In the study, Gary A. Wagner (University of Louisiana at Lafayette), Michael Araki (UNSW Business School) and I (University of Louisville College of Business) examine how reduced legal enforcement of #noncompete agreeements (NCA) influences local high-growth entrepreneurship (HGE). Using staggered difference-in-difference estimation, we find that these state labor market reforms cause an economically and statistically significnt increase in HGE. Interestingly, we also show that these positive effects of NCA reform on HGE are lower in industries facing greater federal regulatory expansion, but that the negating effects of #regulation can be offset at the local level by pro-market reforms (#economicfreedom). Our study makes several important theoretical #contributions: 1. By focusing on HGE, we extend the External Enablement of Entrepreneurship framework beyond the triggering role to the process-shaping and outcoming-enhancing roles of environmental changes. 2. We further substantiate the market-preserving federalism approach to entrepreneurship, highlighting the interdependence of institutional changes at multiple levels of governance and how local pro-market institional changes can offset or enahnce the effects of higher-level institutional changes. 3. We extend the NCA-HGE literature, which suggests that NCA reforms are an important antecedent to venture creation by showing that these changes not only influence the quantity but also the quality of entrepreneurship. Furthermore, our study has important and timely policy implications. During writing the Federal Trade Commission passed a sweeping federal ban on NCAs, predicting that rule change would lead to the potential creation of 8,500 new businesses each year. The new policy faces consider legal challenges that will delay and potential dismantle it altogether. Our study provides additional evidence for this ongoing policy debate. Our baseline estimates imply that eliminating NCAs nationwide may result in the emergence of between 340 and 534 HGEs! However, these effects are contingent on the broader, multi-level institutional environment, suggesting that there is considerable complexity and nuance regarding how NCA reform influences entrepreneurship. Thus, policymakers need to take these interdependencies into account when contemplating labor market reforms that alter the legal enforceability of these controversial contracts.

More entrepreneurship policy insights (as requested). The excess regulatory burden on small (and new) business is insane. Even in 2010, small firms averaged a 36% higher regulatory burden.  https://lnkd.in/gGvZc4xd  [great work by Winslow Sargeant, Ph.D. currently a leader of the International Council for Small Business (ICSB) ] It's getting worse! The latest data shows even bigger penalties especially for manufacturers: https://lnkd.in/gqrMKtXJ ; https://lnkd.in/gGfRa2Vw Small manufacturers average per-employee regulatory costs more than 2X of larger firms. [More evidence from top journals: Increasing regulatory burden has sizable negative impacts: Coffey, et al. (2020). The cumulative cost of regulations. Review of Economic Dynamics, 38, 1-21; Dawson & Seater (2013). Federal regulation & aggregate economic growth. Journal of Economic Growth, 18, 137-177.] Another frustration: Pre-COVID, the US SBA’s Office of Advocacy toured the country where new and small firms identified hundreds of incontrovertibly dysfunctional regulations but SBA apparently had zero power to act. (They still don't have a Chief Counsel for Advocacy at SBA!) For comparison to the graph below, the number of pages in the US Federal Register reached 90K at the end of 2023 (versus 80K in 2022!) Up from 61K pages in 2017. Sigh.. As an Idahoan, I've seen our legislature and state government work hard to reduce unnecessary regulatory burdens [not so much Boise https://lnkd.in/gZtrZSkt, HT Ben Ihde] but until today I did not realize just how big an impact we've seen. Check this out! [HT Andrew Langer ]

🚨New paper alert 📰 Our very own Holger Patzelt co-authored a paper on #Scaling, #Scalability, and #Scaleup with Nicole Coviello, Erkko Autio FBA FFASL , Satish Nambisan, and Llewellyn Thomas. It is available with open access in the Journal of Business Venturing website (https://lnkd.in/gjSKYmSp) and will be shared as a Virtual Special issue together with five other papers. To give you a sneak peek, this paper includes: 1️⃣ a systematic review of 57 articles assessing prior definitions for scaling, scalability, and scaleup 2️⃣ new proposed and harmonized definitions of these concepts 3️⃣ a research agenda for scaling-related research in entrepreneurship 📖Enjoy the read!

🎉 As we enter the 4th week #YES24 , we are continuing our celebration of all things #YES. Here is our YES case study on Saumya Sood, PhD, who took part in YES whilst studying at the University of Reading. Saumya describes how the value of the skill set that she developed during YES has extended far beyond the competition itself. “Everything that we learned about developing a business, from the language that’s used by investors to the way presentations should be prepared and delivered, has been really useful in helping me get to where I am today,”. Use the link below to access this case study, which is hosted on the KTC webpage. https://lnkd.in/evuM-4A3 #Innovation #Entrepreneurs #KnowledgeExchange #Research #CreativeThinking

Dear readers, We invite you to read the article: "Uncertainty and information causality in opportunity-as-artefact driving entrepreneurial actions" Author: David Leong This paper explores how entrepreneurs prioritize and act upon opportunities by sensing profit potential in chaotic, uncertain environments, using a profit-sensing mechanism to guide their decisions. The research employs thermodynamic principles and biological analogies to conceptualize how entrepreneurs interpret signals and organize actions in non-equilibrium conditions. It offers a theoretical framework for studying non-rational entrepreneurial behaviors, proposing that entrepreneurs are attracted to profit gradients, which influence their decisions. The study suggests that entrepreneurial actions can be better understood through a "natural science" approach, focusing on how opportunities act as stimuli. The paper opens new avenues for exploring the forces driving entrepreneurial decisions and actions in dynamic environments. Full article available on: https://lnkd.in/d9wviTVN Submit your paper: https://lnkd.in/eJCTUiDm Editor-in-Chief: Adriana Marotti Co-Editors: Leandro Maciel; Paula Nissimoff #research #business #management #regeusp #feausp

🎉 Thank you to BRQ Business Research Quarterly for highlighting my latest publication, "Navigating identity shifts and well-being in the entrepreneurial exit process: A comparative study of entrepreneurs nearing retirement." I deeply appreciate BRQ's #highlevel of #professionalism and #dedication to #mentoring #impactful #research that resonates with so many. The journal's focus on #supporting work addressing critical topics like #entrepreneurialidentity and #wellbeing is truly commendable. This study underscores the #complex #emotional, #practical, and #identity-related challenges entrepreneurs over 50 face during business #exits, highlighting the importance of #earlyplanning, #identitydiversification, and tailored #supportstrategies for a #successfultransition. 🌟 Special thanks to my colleagues, mentors, and the Middlesex University community for their support throughout this journey. #BusinessExit #IdentityShift #EntrepreneurialTransition #ImpactfulResearch #BusinessResearch #BRQ #AcademicPublishing #Entrepreneurship 💼✨ #Wellbeing 💖🌿 #Sustainability 🌍♻️ #RetirementPlanning 🕰️🏖️ #LifeChanges 🌱🔄 #Identity 🧠✨ #IdentityShifts 🚀🪞 #Community 🤝🌟 #HighImpact 📊🔥 #Support 🤲❤️ #HigherEducation 🎓📚 #EntrepreneurialExits 🛤️🚪 #SDG3 🩺🌍 (Good Health and Well-being) #SDG5 💪🌸 (Gender Equality) #SDG8 💼🌍 (Decent Work and Economic Growth) #SustainableDevelopment 🌍🌱 #EmotionalResilience 💪💖 #GenderDiversity 🚺🚹🌟 #SocialSupport 👫🤝 #FuturePlanning 📈🕒 #WellbeingMatters 🌿💬 #InnovationInTransitions 🔄💡 #LeadershipThroughChange 🌟🛤️ #LifelongLearning 🧠📚 #EmpoweringCommunities 💪🌍 #ImpactfulResearch 📖💥 #EntrepreneurialJourney 🚀💼 #CareerTransitions 🛤️✨ #ResilienceAndGrowth 🌱💪 #GlobalImpact 🌍🔥 #InclusiveEconomies 🌏🤝 #SustainabilityInBusiness 🌱💼 #LifeAfterEntrepreneurship #RetirementPlanning

Dear LinkedIn network, I'm thrilled to share that our latest research paper has been published in the Journal of Workplace Behavior! Title: Entrepreneurial Experience and Its Impact on the Economic Sustainability of Resource-Constrained Enterprises 🔍 Journal: Journal of Workplace Behavior 📅 Publication Date: June 30, 2024 This study examines the mechanisms that link entrepreneurial experience (EE) to sustainable enterprise economic performance and further examines the moderating role of resource constraints on the relationship of entrepreneurs’ industry and market experience on enterprise sustainable economic performance. Resource constraints problems are not linear and need exceptional consideration. The study examines how an entrepreneur’s industry and market experience assist his/her ambition of enterprise economic sustainability in a resource-constrained environment. The study is causal and cross-sectional. A primary research survey was directed by employing structured questionnaires among 348 respondents of micro small and medium enterprises (MSMEs). The data was analyzed using SPSS version 25, and for regression results, Hayes process Macro. Findings suggested that entrepreneurs' experience plays a significant role in the sustainability of enterprise economic performance in the context of resource constraints of MSMEs. The study finds entrepreneurs' experience has a link with enterprise economic sustainability however; the resource constraints suppress business outcomes.  This study contributes to the literature on entrepreneurs’ experience on organizations’ economic sustainability. Whereas, resource constraints dampen the business's economic performance. This research recommends the entrepreneur must grow the business in order to develop a network for sustainable enterprise economic performance otherwise the resource constraints will hamper the growth and sustainability of enterprise performance. If you're interested in learning more or diving into the latest developments in the field of Entrepreneurship, I invite you to read the full paper here: https://lnkd.in/dJdkeB-G We welcome your thoughts, feedback, and insights on the paper. Feel free to engage in the comments or connect with me directly to discuss further. Thank you for your support and encouragement throughout this journey. Let's continue to drive innovation and growth together! Best regards, Saad Babar

According to a recent HBR article and research findings, conducted in Europe, entrepreneurs who adopt a more scientific approach to developing their businesses and market theories have shown improved performance compared to those using traditional methods. This insightful article delves into why entrepreneurs should consider thinking like scientists. Check it out here: -> https://lnkd.in/dHhRjfA9