ENTP 301 Entrepreneurial Strategy
Assistant Professor Nicola Lacetera
Email: nicola.lacetera@case.edu
Office Phone: 216-368-2197
Office 280
Office hours
Mon 12:15pm-1:30pm
Wed 12:15pm-1:30pm
Course schedule
Section 1: MW, 9-10:15am
Section 2: MW, 10:3.0-11.45am
Room
PLB106
A. Course Overview
This
class is meant to introduce students to the major determinants of entrepreneurial behavior, strategic choices, success
and failure. The course integrates a lecture style and an in-class
discussion method, and is composed of nine
parts, as follows:
Students
will be assigned readings from the
academic literature and the business and popular press. There will also be
several case studies.
Students
are expected to read the required
readings and to comment on them in
class. Some classes will be more “applied”, i.e. mostly dedicated to the
discussion of case studies; other classes will be more “conceptual”, i.e.
mostly dedicated to the discussion of articles and book chapters. Obviously,
there will be strong links and complementarities between the two types of
classes.
I will
also list a series of optional
readings. Do not be scared by the
high number of these additional readings. You are not expected to read all of them, and will not be evaluated on
them. Instead, each student is expected to pick (at least) one of these readings for each section of the course, and to send
me a two-page comment on the
optional reading he or she has chosen.
B. Audience
The
class is of relevance to students
interested in starting new businesses, as well as to students thinking about
working in consulting or finance, and students interested in pursuing research
and graduate studies.
In
addition to students majoring in Management,
students majoring in Economics and Accounting will find this class of
interest. However, students from other majors and disciplines are more than
welcome to join the class.
This
course might look different from a
traditional Management class, because of its frequent reference to the
academic literature rather than to practitioner oriented literature. My goal is
to have you think critically about
the concepts and empirical evidence that will be presented, and to conjecture
how it can be insightful for managers and entrepreneurs. I also hope that some
familiarity with the academic literature will help you to spot some pitfalls in the popular and practice-oriented literature,
such as the determination of causal directions, selectivity and success biases
(i.e. the fact that general implications are derived from the observation of a
non-representative sample of companies, e.g. the most successful ones), and the
provision of easy “recipes for success” – if obtaining success was so easy, why
do we see so many failures?
As a
complement to this class, ENTP 311 “New
Venture Creation” offers a more practice-oriented flavor to the topic of
entrepreneurship. You should therefore see ENTP 301 and ENTP 311 as complementary classes, or as part of a
“sequence”.
In any
case, you should see the focus of this class on the applications to
entrepreneurial and strategic issues and not on concepts and technicalities.
For example, claims from the academic literature (both theoretical and
empirical) will be scrutinized also through the lenses of their relevance for
real world situations.
Prerequisites
Familiarity
with basic concepts and notions in microeconomics
at the level of ECON 102 or higher, of statistics/econometrics
at the level of STAT 207 and (possibly) ECON 326, and of accounting at the level of ACCT 101, is recommended.
Remember
however that the course is not about
technicalities, and that the ultimate goal is to assess the relevance and
implications of what we learn in class for entrepreneurial and strategic
success. Economics concepts are only instrumental to understanding the phenomena
of interests. I will also spend some time in class refreshing some basic
concepts, as they become relevant in the course.
C. Requirements and Grading
Class
Attendance and Participation
I
expect you to come to class (and to tell me in advance if you have to miss
one), and to actively participate in the discussion. The first half of each
class will be spent discussing the required readings and cases. Therefore,
please come prepared by reading the assigned papers in advance. I tried to
limit the amount of readings for each class to a reasonable number of pages so
as to increase the likelihood that you’ll read the papers and cases. I will
post case discussion questions on Blackboard.
In-class participation will count for about
30% of the final grade.
Memos
Each
student will send me a two-page comment on one
of the optional readings he or she has chosen, among those suggested, for
each of the first six sections.
Students will also pick at least one
reading from one of the three special sections. In total, each student is
required to write up seven memos.
While I
do not require any specific format and content for the memos, I expect you to
address at least some of the following questions:
1. What
is the topic the paper addresses, or the question it is asking?
2. What
methods do the authors adopt to answer the question (empirical research,
theoretical-modeling approach, case studies, literature survey…)?
3. What
are the main conclusions of the authors, or the “Punch Line” of the paper?
4. Do
you think that the research question of the paper is a relevant one? What is
the relevance for strategy and entrepreneurship? What did you learn that you
did not know already?
5. How
are the points of the paper related to business cases and real world facts we
looked at in class or that you have knowledge of?
6. What
are the implications for entrepreneurial activities and for strategic decision
making?
7. Do
you think the methods chosen by the authors are appropriate? Are the authors
rigorous in applying those methods?
As you
can see, none of these guiding questions
really require a complete knowledge and understanding of the readings. In
fact, some of the papers may apply methods and technicalities you are not
necessarily supposed to know. Don’t
panic: the key aim of the assignments is to train you in capturing the main
point of the papers rather than focusing on methods and technicalities per se
(it is likely that I myself will not be able to understand some of the
technical issues in the papers…). In other words, feel free to skim over the more technical parts of a paper, and
focus instead on the main conceptual points and empirical findings.
These “guiding questions” should also be
applied to the required readings for each class, and you should be prepared to answer
to them during our discussions.
Ideally,
the memos should be sent on the day of the last class of the section they refer
to.
The memos will count for another 30% of the
final grade.
The
final paper
The
final paper is a team project and I expect
the teams to be composed of four or five
students. You are asked to pick one of the topics we study in the course
(or part of it), and do a critical
review of the literature in the field. The review should touch on the
points highlighted by the memo questions: relevance
of the issues, description of the main studies, relevance of the studies for
entrepreneurial and managerial practices, and relation to cases and real-world
evidence. You are also encouraged to use a specific example you have
knowledge of, and/or some of the cases we saw in class, in order to illustrate
the major claims of your paper, or one or more of the cases we discussed.
Again,
the focus should be more on the general concepts than on specific issues and
technicalities, and on the applications of these concepts. The additional
readings I propose for each session are a good start for your review, but feel
free to look for further interesting work. I will be happy to provide you with
additional references and I will help you identify the main sources where to
look for relevant literature.
I
expect the teams to be formed by the third
week of September, and I would like to meet all the teams at least once
during the term – possibly earlier on, in order to discuss the topic you chose
and to help you out with looking for literature, framing the issue and so on.
When
the teams are formed earlier, there is a natural bias toward choosing topics we
already saw in class. I would like some of you to be “braver” and explore some
of the issues we did not see yet, before we do in class, for your final paper.
Please
limit the paper to 15-20 pages,
1.5-spaced, 12 font. The paper is due on the last day of classes, and will
make up for the remaining 40% of the
final grade.
D. Course material
Most of
the readings are freely available online through major databases the university
subscribes to, such as Jstor, RepEc, ProQuest, SSRN and the like. I added links
to these readings in the detailed syllabus below. Some readings, and especially
the cases, are not freely available. They will be available online in a course
pack, through www.xanedu.com. Finally, I will put some readings on Blackboard.
E. Academic Integrity
University policy on plagiarism and academic integrity will be
rigorously enforced. The University does not tolerate cheating or plagiarism in
any form. Cheating or plagiarism will result in a failing grade. Ignorance is
not considered an excuse. If you are not sure whether or not something you plan
to submit would be considered either cheating or plagiarism, please do not
hesitate to ask me, or your other faculty.
F. Students with
Disabilities
I will
be happy to meet with students with disabilities and who may need individual
arrangements. The Coordinator of Disability Services can be contacted at
216-368-5230.
G. Topics and readings
There
will be six “general” sections and 3 special sections. The class will meet
twice a week. Cases are indicated with a [C].
1. Introduction (1 week)
a.
Definitions. What is an
entrepreneur? Looking beyond the “production function”
i.
Multiple definitions
for multiple purposes: entrepreneurship as entry, innovation, self-employment,
small business.
b.
Why do we care about
entrepreneurship?
i.
Many want to start
their own business
ii.
Does entrepreneurship
(always) pay?
iii.
Entrepreneurship as an
engine of economic development and growth
c.
Why entrepreneurial strategy?
i.
Firms (even
entrepreneurial ones!) are rarely “alone”: understand competitive environments,
competitive dynamics, industry structure, industry evolution
ii.
Explain differences in
performance among seemingly similar ventures
d.
Description of the
course, requirements, grading, readings.
Class
1 Aug.
28
Required
Economist,
2006: “Searching for the invisible man”, March 9th.
Bhide,
1996: “The questions every entrepreneur must answer”, Harvard Business Review
(12 pages) [Course Pack]
Class 2 Aug.
30
Required
[C] “R&R”, HBS case [Course
Pack]
Stern,
S., 2005: “Economic Experiments – The role of Entrepreneurship in
Economic Prosperity”, Kauffman Foundation, pages 16-21.
Optional readings for section 1 (pick one for
your 2-page memo)
Shane,
S. and Ventakaranam, S., 2000: “The Promise of Entrepreneurship as a Field of
Research”,
Baumol,
W., 1990: “Entrepreneurship: productive, unproductive, and destructive”,
Journal of Political Economy, 98, 5, 893-921. [Jstor]
Schumpeter,
J., 2005: “Development”, Journal of Economic Literature, 43, 1, 108-120. [EBSCO]
Evans,
D. and Leighton, L., 1989: “Some empirical aspects of entrepreneurship”,
American Economic Review, 79, 3, 519-535. [Jstor]
Geroski, P. 1995: “What do we know about entry?”, International Journal of Industrial Organization, 13,
4, 421-440. [EJC]
Hamilton
2000: JPE: “Does entrepreneurship pay? An Empirical Analysis of the Returns to
Self Employment”, Journal of Political Economy, 108, 3, 604-631. [Jstor]
Parker,
S.C., 2005: “The economics of entrepreneurship”, Foundations
and Trends in Entrepreneurship, 1, 1, 1-54.
Holmes, T.J. and Schmitz, J.A.,
1995: “On the turnover of business firms and business managers”, Journal of
Political Economy, 103, 5, 1005-1038. [Jstor]
Kortum-Lerner, 2000: “Assessing
the contribution of venture capital on innovation”, RAND Journal of Economics,
31, 4, 674-692. [Jstor]
Schmalensee, R., 1985: “Do markets
differ much?”, American Economic Review, 75, 3, 341-351. [Jstor]
Rumelt,
R.P., 1991: “How Much Does Industry
Matter?” Strategic Management
Journal, 12, 3 167-185. [Jstor]
Cowling, M. and Bygrave, W.,
2003: “Entrepreneurship and Unemployment”, Babson Forum
on Entrepreneurship Research.
2.
Who becomes an entrepreneur? A look at
individual characteristics (2 weeks)
a.
“Nature”: innate
characteristics and their importance
b.
“Nurture”: education,
skills, power, experience, learning, social networks…
c.
Who succeeds as an entrepreneur?
d.
Unobserved
heterogeneity and the problem of causality
Class 3 Sept.
6
Required
[C] “Joseph Sanda”, Small Business Week Winners, Ohio
2002 (1 page)
[C] “Diane MacWilliams”, Small Business Week Winners,
Illinois 2002 (1 page)
[C] “Adrian Lugo”, Entrepreneurial Success Award
Winners, Washington (1 page)
[C]
Caine, N., 2006: “Flu jabs kickstart doctor’s firm”, The Sunday
Times, June 18th (1 page)
[C]
Economist, 2006: “Surfing the Airways”, July 13th.
Shane
et al., 2006: is the tendency to engage in self-employment
genetic? [Blackboard]
Class 4 Sept
11
Required
[C]
“3M: Profile of an Innovating Company”, HBS Case [Course Pack]
Colin
Camerer, C. and Lovallo, D., 1999: “Overconfidence
and Excess Entry: An Experimental Approach”, American Economic Review, 89, 1, 306-318. [Jstor]
Class 5 Sept
13
Required
Blanchflower,
D. and Oswald, A., 1998:: “What makes an entrepreneur?”, Journal of Labor
Economics, 16, 1, 26-60. [Jstor]
Class 6 Sept
18
Required
Lazear,
E., 2005: “Entrepreneurship”, Journal of Labor Economics, 23, 4, 649-680. [EBSCO]
Optional readings for section 2 (pick one for
your 2-page memo)
Evans,
D. and Leighton, L., 1989: “Some empirical aspects of entrepreneurship”,
American Economic Review, 79, 3, 519-535. [Jstor]
Klepper,
S., 2002: “Capabilities and Industry Evolution in the automobile industry”,
Industrial and Corporate Change, 11, 4, 645-666. [EJC]
Bala,
V. and Goyal, S., 1994: “The Birth of a New Market”, Economic Journal, 104,
423, 282-290. [Jstor]
Wong Y., 1986:
“Entrepreneurship, Marriage, and Earnings”, Review of Economics and Statistics,
68, 4, 693-699. [Jstor]
Uzzi, B., 1996: “Sources and
Consequences of Embeddedness for the Economic Performance of Organizations: the
Network effect”, American Sociological Review, 61, 4, 674-698. [Jstor]
Rauch, J., 2001: “Business and
Social Networks in International trade”, Journal of economic Literature, 39, 4,
1177-1203. [Jstor]
Dahlqvist-Daviddson, 2002: “Business
Start-Up Reasons and Firm Performance”, Babson Forum on
Entrepreneurship Research.
Bertrand, M. and Schoar, A.,
2003: “Managing with Style”, Quarterly Journal of Economics, 118, 4, 1169-1208.
[EBSCO]
Zucker, L., Darby, M.
and-Brewer, 1998: “Intellectual Human Capital and the birth of the US
Biotechnology Industry”, American Economic Review, 88, 1, 290-306. [Jstor]
Foss, N., 2001: “Leadership,
Beliefs and Coordination”, Industrial and Corporate Change, 10, 2, 357-388. [EJC]
Jones, B. and Olken, B., 2005:
“Do Leaders Matter? National Leadership and Growth Since World War II”
Quarterly Journal of Economics, 120, 3, 835-864. [EBSCO]
Klepper,
S. and Thompson, P., 2006: “Intra-industry spinoffs”, working paper.
Hamilton
2000: JPE: “Does entrepreneurship pay? An Empirical Analysis of the Returns to
Self Employment”, Journal of Political Economy, 108, 3, 604-631. [Jstor]
3.
Beyond individual characteristics:
organizing for success (3 weeks)
a.
Incentives, ownership,
control. Alliances, joint ventures
b.
Entrepreneurial
finance as an organizational problem
c.
Organizational capabilities
d.
Corporate culture
Class 7 Sept.
20
Required
[C]
“Abgenix and the Xenomouse”, HBS Case [Course Pack]
[C] “Brian Scudamore of 1-800-GOT-JUNK?”
Pisano,
G., 1991: “The Governance of Innovation”, Research Policy [Blackboard]
Class 8 Sept.
25
Required
Gibbons,
R., 2005: “Incentives between Firms (and within)”, Management Science, 51, 1,
2-17. [ProQuest]
Class 9 Sept.
27
Required
[C]
“Walnut Venture Associates”, A, HBS Case. [Course Pack]
Gompers,
P. and Lerner, J., 2001: “The venture capital Revolution”, Journal of Economic
Perspectives, 15, 2, 145-168. [Jstor]
Class 10 Oct.
2
Required
[C]
“Whole Food Market”, HBS case. [Course Pack]
Class 11 Oct.
4
Required
Baron et
al, 1999: “Engineering Bureaucracy: The Genesis of Formal Policies, Positions,
and Structures in High-Technology Firms”, Journal of Law, Economics, and
Organization, 15, 1, 1-41. [EJC]
Peteraf,
M., 1993: “The Cornerstones of Competitive Advantage”, Strategic Management
Journal, 14, 3, 179-191. [Jstor]
Class 12 Oct.
9
Required
[C]
Ghemawat, P. 1995: “Competitive advantage and internal organization: Nucor
revisited”, Journal of Economics and Management Strategy [Blackboard]
Barney
1986: “Organizational Culture: Can It Be a Source of Sustained Competitive
Advantage?”,
Optional
readings for section 3 (pick one for your 2-page memo)
Baker,
1992: “Beatrice: A Study in the Creation and destruction of Value”, Journal of
Finance, 47, 3, 1081-1119. [Jstor]
Bloom,
N. and Van Reenen, 2006: “Measuring Management Practices”, working paper
March, J., 1991: “Exploration
and exploitation in Organizational Learning”, Organization Science, 2, 1,
71-87. [Jstor]
Nelson, R., 1991: “Why do Firms
Differ and why does this Matter?”, Strategic Management Journal, 12, 61-74. [Jstor]
Liebeskind-Oliver-Zucker-Brewer,
1996: “Social Networks, learning and Flexibility: Sourcing scientific Knowledge
in New Biotechnology firms”, Organization Science, 7, 4, 428-443. [Jstor]
Gittelman, M. and Kogut, B., 2003: “Does Good
Science Lead to Valuable Knowledge? Biotechnology Firms and the Evolutionary
Logic of Citation Patterns”, Management Science, 49, 4, 366-382. [ProQuest]
Holmstrom, B. 1989: “Agency
Costs and Innovation”, Journal of Economic Behavior and Organization, 12,
305-327. [Blackboard]
Kreps 1990: Corporate culture
[Blackboard]
Hart,
O., 2001: “Financial Contracting”, Journal of Economic Literature, 39, 4,
1079-1100. [Jstor]
Kortum-Lerner, 2000: “Assessing
the contribution of venture capital on innovation”, RAND Journal of Economics [Jstor]
Hochberg,
Y., Ljunqvist, A. and Lu., Y., 2006: Venture
capital networks and investment performance, Journal of Finance,
forthcoming.
Gersick,
C., 1994: “Pacing strategic change: the case of a new venture”,
Hsu, D,
and Kenney, 2005: “Organizing venture capital”, Industrial and Corporate
Change, 14, 4, 579-616. [EJC]
Hellman,
T. and Puri, M., 2000: “The interaction between product and financing strategy: the
role of venture capital”, Review of Financial Studies, 13, 4,
959-984.
4.
Beyond individual characteristics:
industry and competitive analysis (1.5 weeks)
a.
Five forces and value
chains
b.
Competition: Strategic
behavior, first mover advantages, positioning
c.
Attrition games: get
out of a race?
d.
Innovation races and
the incumbent’s and entrant’s incentives to innovate
Class 13 Oct.
11
Required
[C]
“Keurig”, HBS Case. [Course Pack]
Porter,
1980: Competitive Strategy, Ch. 1-2, Pages 3-46 [Blackboard]
Class 14 Oct.
16
Required
[C] “Ikea Invades
Class 15 Oct.
18
Required
[C]
“Sealed Air Corp”, HBS Case. [Course Pack]
Optional
[C] Usselman,
1992: “From Novelty to Utility: George Washington in the era of
Rumelt,
R., Schendel, D. and Teece, D., 1991: “Strategic Management and Economics”,
Strategic Management Journal, 12, 5-29. [Jstor]
Saloner,
G. 1991: “Modeling, Game Theory and Strategic Management”, Strategic Management
Journal, 12, 119-136. [Jstor].
Yoffie, D. and Kwak, M., 2002: “Judo
Strategy: 10 Techniques for Beating a Stronger Opponent”, Business
Strategy Review, 13, 1, 20-30.
Henderson,
R., 1993: “Underinvestment and Incompetence”, RAND Journal of Economics, 24, 2,
248-270. [Jstor]
Gans,
J. and Stern, S. 2003,: “The product market and the market for ideas”, Research
Policy, 32, 2, 333-350. [EJC]
Adner,
R., 2006: “Match your Innovation Strategy to your Innovation Ecosystem”,
Harvard Business Review [Course pack]
Matraves, C., “Market Structure, R&D and
Advertising in the pharmaceutical Industry”, Journal of Industrial Economics. [Jstor]
Gans, J., Hsu, D. and Stern, S. 2002: When Does
Start-Up Innovation Spur the Gale of creative destruction?,
Barnett,
William P. and Morton T. Hansen (1996) “The Red Queen in Organizational
Evolution,” Strategic Management Journal, Vol. 17, Pp. 139-157. [Jstor]
Burgelman,
1994: Fading Memories: A Process Theory of Strategic Business Exit in Dynamic
Environments, Administrative Science Quarterly [jstor]
Cool, K. and Schendel, D., 1988: “Performance differences among
strategic group members”, Strategic
management journal, 9, 3, 207-223. [Jstor]
Hellman,
T. and Puri, M., 2000: “The interaction between product and financing strategy: the
role of venture capital”, Review of Financial Studies, 13, 4,
959-984.
Christensen, C. M. & Bower, J.
L. 1996. Customer power, strategic investment, and the failure of leading
firms. Strategic Management Journal, 17(3): 197-218. [Jstor]
T. Bresnahan, “Network Effects and Microsoft”
5.
Beyond individual characteristics:
industry evolution (1 week)
a.
Industry life cycles
and the dynamics of young and mature industries: what consequences for
entrepreneurial activities?
b.
Technology life
cycles, dominant design: good framework for any industry?
Class 16 Oct.
25
Required
Geroski, P. 1995: “What do we know about entry?”, International Journal of Industrial Organization, 13,
4, 421-440. [EJC]
McFarland,
A.,: “Entrepreneurial Failure: get used to it”
Corey-Capon,
1985: “Product Life Cycle”, Harvard Business Review
Class 17 Oct.
30
Required
[C] Bresnahan-Greenstein-Henderson, 2006: Making waves: The
Interplay between Market Incentives and Organizational Capabilities in the
Evolution of Industries, working paper.
Optional readings for section 5 (pick one for your 2-page memo)
Klepper,
S., 1997: “Industry life cycles”, Industrial and Corporate Change.
Klepper,
S., 2002: “Capabilities and Industry Evolution in the automobile industry”,
Industrial and Corporate Change, 11, 4, 645-666. [EJC]
Klepper, S.: The Evolution of the U.S. Automobile Industry
and
Buenstorf, G. and Klepper, S: Heritage and Agglomeration: the
Carree,
M. and Thurik, R, 2000: “The Life Cycle
of the U. S. Tire Industry”, Southern Economic Journal, 67, 2,
254-278. [Jstor]
Carlsson,
B.: Differing Patterns of Industrial
Dynamics:
Geroski, P.A., 2000: “Models of technology
diffusion”, Research Policy. [EJC]
William P. Barnett; Morten T.
Hansen, 1996: “The Red Queen in Organizational Evolution”, Strategic Management
Journal, Vol. 17, pp. 139-157. [Jstor]
Gimeno-Folta,
1997: “Survival of the Fittest: entrepreneurial human capital and the
persistence of underperforming firms”, Administrative
Science Quarterly, 42, 4, 750-783. [Jstor]
Agarwal, R.: “Survival of Firms over the Product Life
Cycle”, Southern Economic Journal, 63, 3, 571-584 [Jstor].
Lilien, G. and Yoon, E., 1990: “The Timing of Competitive Market Entry: An
Exploratory Study of New Industrial Products” Management Science,
36, 5, 568-585. [Jstor]
Acs, Z. and Audretsch, D., 1989: “Small-Firm Entry in US Manufacturing”, Economica,
56, 222, 255-265. [Jstor]
Agarwal, R. and Audretsch, D.: “Does Entry Size Matter?: The Impact of the Life
Cycle and Technology on Firm Survival”
6.
Institutions and entrepreneurship (2
weeks)
a.
Longitudinal and
cross-country differences in entrepreneurial behavior and performance
b.
Financial, educational,
political institutions
i.
Focus on developing countries: obstacles, microfinance, “institutional
entrepreneurs”
ii.
Outsourcing and
entrepreneurship
c.
Geography and
entrepreneurship
d.
Intellectual property
rights
e.
Cultural and
historical roots
Class 18 Nov.
1
Required readings
[C]
Feldman, M., 2003: ‘Fortune Favours the Prepared Region: The Case of
Entrepreneurship in the Capitol
Region”, European Planning Studies. [Blackboard]
[C]
Cullum, P., Padmore, L. and Purdy, M., 2002: “Entrepreneurship around the Globe: Adapting to different
national environments”, Accenture Outlook, pages 1-2.
Geeta, B., Kaufmann, D. and Stone, A., 2003: “The firms speak: what the world business environment survey
tells us about constraints on private sector development”, World
Bank.
Link to the World business environment survey (world Bank)
Class 19 Nov.
6
Required readings
[C]
World Bank, 2004: “Financial Systems”, World Bank Development
Black,
S. and Strahan, P.: “Entrepreneurship and Bank Credit Availability”, Journal of Finance
Class 20 Nov.
8
Nelson, 1995: “Why Should
Managers be Thinking about Technology Policy”, Strategic Management Journal,
16, 8, 581-588. [Jstor]
[C] “National Innovation
Systems of China and the Asian newly industrialized economies: a comparative
analysis”, HBS case. [Course Pack]
Lerner, J., 2002: 150 years of
patent protection, American economic Review, 92, 2, 221-225. [Jstor]
Class 21 Nov.
13
Guiso, L., Sapienza, P. and Zingales, L., 2006: “Does Culture Affect Economic Outcomes?”, Journal of Economic Perspectives, 20, 2,
23-48. [EBSCO]
Feldman,
M.: Feldman-Firm Formation in a Regional Context, Industrial and Corporate Change
Yang et al, 2006: “Institutional entrepreneurs”,
American Economic Review, 96, 2, 358-362. [EBSCO]
Optional readings for section 6 (pick one for your 2-page memo)
Acemoglu,
D., Johnson, S. and Robinson, J., 2004: Institutions
as the Fundamental Cause of long run growth, NBER working paper.
Petersen-Rajan, 1995: “The effect of credit market
competition on Lending relationships”, Quarterly Journal of Economics,
110, 2, 407-443. [Jstor]
Black, B., and Gilson, R., 1998: “Venture capital
and the structure of capital markets: banks versus stock markets, Journal of Financial
Economics, 47, 3, 243-277. [EJC]
Levine, R., 1997: “Financial Development
and Economic Growth: Views and Agenda”, Journal of Economic Literature, 35, 2,
688-726. [Jstor]
Shleifer-Vishny,
1997: “A Survey of corporate governance”, Journal of Finance, 52, 2, 737-783. [Jstor]
Kortum-Lerner, 2000: “Assessing
the contribution of venture capital on innovation”, RAND Journal of Economics [Jstor]
Van
Ojen, L. and Levitzky, J., 2002: “Financing of private enterprise development in Africa”,
UNIDO.
Johnson, S., McMillan, J. and
Woodruff, C., 1999: et al: “Property rights, finance and entrepreneurship”,
working paper.
Fallick, B., Fleischman,
C. and Rebitzer, J., 2005: “Job
Hopping in Silicon Valley”, Review of Economics and Statistics
Agrawal-Cockburn, 2003: “The
anchor tenant hypothesis: exploring the role of large, local, R&D-intensive
firms in regional innovation”, International Journal of Industrial
Organization, 21, 9, 1227-1253. [EJC]
Johnson, S., Kauffman, D. and
Shleifer, A., 1997: “Politics and entrepreneurship in transition economies”,
working paper.
Dallago, B., 2005: “Institutions and Entrepreneurship: A Comparative Evaluation
of South-Eastern Europe”.
[C] Cobbs, 1989: “Entrepreneurship as Diplomacy:
Nelson Rockefeller and the Development of the Brazilian Capital Market”,
Business History Review, 63, 1, 88-121. [Jstor]
McMillan, J. and Woodruff, C., 2002:
“The central role of entrepreneurs in transition economies”, Journal of
economic Perspectives, 13, 3, 153-170. [Jstor]
Henrekson-Rosenberg, 2001: “Designing Efficient Institutions for Science-Based
Entrepreneurship: Lesson from the
Jong, S. 2006: “How
organizational forms in Science shape spinoff firms”, Industrial and Corporate
Change, 15, 2, 251-283. [EJC]
Gittelman, M.: National
institutions, public–private knowledge flows, and innovation performance: A
comparative study of the biotechnology industry in the
Gallini, N. 2002: “The Economics
of Patents: Lessons from Recent
Zucker-Darby-Brewer, 1998:
“Intellectual Human Capital and the birth of the US Biotechnology Industry”,
American Economic Review, 88, 1, 290-306. [Jstor]
Hollingsworth, R. 2000: “Doing Institutional
Analysis: implications for the study of innovation”, Review of International Political Economy, 7, 4, 595-644. [EBSCO]
Amable, B., 2000: “Institutional
complementarities and diversity of social systems of production and
innovation”, Review of International Political Economy, 7,4, 645-687. [EBSCO]
Greif, A., 2005: Institutions and the Path to the Modern
Economy: Lessons from Medieval Trade (chapter 1), (chapter 2)
7.
Special topic: Measurement issues (1 week)
a.
How to measure entrepreneurship?
b.
How to measure
entrepreneurial success?
c.
How to measure the
impact of entrepreneurial activity on the economy?
d.
Causality,
heterogeneity
e.
What role for “luck”?
How to measure it?
Class 22 Nov.
15
Required
Hamilton
2000: JPE: “Does entrepreneurship pay? An Empirical Analysis of the Returns to
Self Employment”, Journal of Political Economy, 108, 3, 604-631. [Jstor]
Wong Y., 1986:
“Entrepreneurship, Marriage, and Earnings”, Review of Economics and Statistics,
68, 4, 693-699. [Jstor]
Class 23 Nov.
20
Required
Jones, B. and Olken, B., 2005:
“Do Leaders Matter? National Leadership and Growth since World War II”
Quarterly Journal of Economics, 120, 3, 835-864. [EBSCO]
Geeta, B., Kaufmann, D. and Stone, A., 2003: “The firms speak: what the world business environment survey
tells us about constraints on private sector development”, World Bank.
Link to the World business environment survey (World Bank)
Optional
readings for section 7 (pick one for your 2-page memo)
Angrist,
J. and Krueger, A., 1991: “Instrumental Variables and the Search for
Identification: from supply and demand to natural experiments”, Journal of
Economic Perspectives, 15, 4, 69-95. [Jstor]
Schiantarelli,
F., 1996: “Financial Constraints and Investment: Methodological Issues and
International Evidence”,
Villalonga,
B. and Amit, 2004: “How do Family Ownership, Control and Management affect Firm
Value?”, working paper.
Bertrand, M. and Schoar, A.,
2003: “Managing with Style”, Quarterly Journal of Economics, 118, 4, 1169-1208.
[EBSCO]
Hamilton-Nickerson, 2003: “Correcting for endogeneity in Strategic Management research”,
Strategic Organization, 1, 1, 51-78.
Shaver,
J.M., 1998: Accounting for Endogeneity
When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI
Survival?, Management Science, Vol. 44, No. 4. pp. 571-585. [Jstor]
Gompers
et al., 2006: Skill
vs. Luck in Entrepreneurship and Venture Capital: Evidence from Serial
Entrepreneurs, NBER working paper.
8.
Special topic: family firms and founder
succession (1 week)
Class 24 Nov.
22
Required
[C]
“Hancock Land Company and Hancock Lumber Company”, HBS case. [Course Pack]
[C]
“Precista Tools Ag, A and B”, HBS Case. [Course Pack]
[C]
Bridge, R., 2006: “Son overtake stationary dad”, The Sunday Times,
July 9th.
Class 25 Nov.
27
Post Thanksgiving class: no readings
assigned.
I will answer
any question you’ll have, and each team will briefly report bout its term paper
and the progress on it.
Class 26 Nov.
29
Required
Bennedsen
et al 2005: “Inside the Family firm: The role of families in succession
decision and performance”, Quarterly Journal of Economics,
forthcoming.
Millar,
B., 2006: “Pick a promising protégé”, The Sunday Times, May
14th.
Optional readings for section 8 (pick one for your
2-page memo)
Wasserman,
N., 2003: “Founder-CEO Succession and the Paradox of Entrepreneurial Success”,
Organization Science, 14, 2, 149-172. [ProQuest]
Villalonga,
B. and Amit, 2004: “How do Family Ownership, Control and Management affect Firm
Value?”, working paper.
Rafael
La Porta; Florencio Lopez-de-Silanes; Andrei Shleifer, 1999: “Corporate Ownership around the World”
The Journal of Finance, Vol. 54, No. 2. pp. 471-517. [Jstor]
Bloom-Van
Reenen, 2006: “Measuring and Explaining Management Practices across firms
and Countries”, working paper.
Francisco
Perez-Gonzalez: Inherited Control and Firm Performance
Danny
Miller, 1993: “Some Organizational
Consequences CEO Succession” The
William
S. Schulze; Michael H. Lubatkin; Richard N. Dino; Ann K. Buchholtz, 2001: “Agency Relationships in Family Firms:
Theory and Evidence”, Organization Science, Vol. 12, No. 2., pp.
99-116. [Jstor]
Anderson, R.C. et al, 2003: “Founding family ownership and the agency cost of debt”
Journal of Financial Economics, 68, 263-285.
Morck, R. and Yeoung, B., 2003: “Agency Problems in Large Family Business Groups”
Panunzi, F. et al., 2006: “The Performance of Italian Family Firms”
Bertrand,
M. and Schoar, A., 2006: “The impact of family on family firms”, Journal of
economic Perspectives, 20, 2, 73-96. [EBSCO]
9.
Special topic: what is the role of new ventures?
Entrepreneurship and Intrapreneurship (1 week)
Class 27 Dec.
4
Required
[C] “3M
Optical Systems: Managing Corporate Entrepreneurship”. [Course Pack]
Class 28 Dec.
6
Required
[C] Tripsas, M. and Gavetti, G.,
2000: “Capabilities, Cognition, Inertia: Evidence from Digital Imaging”,
Strategic Management Journal, 21, 10, 1147-1161. [Jstor]
Dushnitsky, G. and Lenox. M.,
2005: “When do incumbents learn from entrepreneurial ventures?”,
Research Policy, 34, 615-639.
Optional
Gompers
et al., 2005: “Entrepreneurial Spawning: Public Corporations and the Genesis of
New Ventures, 1986 to 1999”, Journal of Finance, 60, 2, 577-614. [EJC]
Henderson,
R., 1993: “Underinvestment and Incompetence”, RAND Journal of Economics, 24, 2,
248-270. [Jstor]
Bruce
R. Barringer, Allen C. Bluedorn, 1999: “The relationship between corporate entrepreneurship and
strategic management”, Strategic Management Journal
Robert
Gertner; Eric Powers; David Scharfstein, 2002: “Learning about Internal Capital Markets from Corporate Spin-offs” The
Journal of Finance, Vol. 57, No. 6, pp. 2479-2506. [Jstor]
Bouchard, V., 2002: “Corporate Entrepreneurship: Lessons from the Field”