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POWER AND AUTONOMY: TOWARD UNDERSTANDING THE POLITICAL DIMENSIONS OF ENTREPRENEURSHIP IN HIGHER EDUCATION by DAWN HOUSE B.A., The University of British Columbia, 1986 A THESIS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS in THE FACULTY OF EDUCATION (Department of Educational Studies), We accept this thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA August 1995 ©Dawn House, 1995 In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department The University of British Columbia Vancouver, Canada DE-6 (2/88) Abstract This study examines the concept of entrepreneurship as it relates to the culture and purpose of the university. An integrative review is employed to examine literature covering entrepreneurial theory, academic culture, and educational initiatives geared toward building enterprising or entrepreneurial competence. Chapter one provides an introduction to the problem, the questions, the terms and the methodology. Chapter two sets the preoccupation with entrepreneurship now shared by most western societies in contemporary historical perspective. Economic theories of entrepreneurship that have long stressed the importance of instrumental knowledge are briefly introduced, with emphasis on the ideas of Joseph Schumpeter, who remains the authority on entrepreneurship. Schumpeter stressed that values are the starting point for any new economic system, a principle that forms the basis for the remainder of the thesis. The chapter concludes with a discussion of the university community's different perceptions of entrepreneurship as an organizing principle for the creation and diffusion of knowledge, and a contrast of select "enterprise cultures" in western societies. In chapter three, competencies that the literature suggests are part of the entrepreneurial function are delineated. Chapter four discusses educational theories and practices intended to strengthen the enterprising capacities of individuals and societies, focusing upon programs currently implemented and others being proposed. The concluding chapter synthesizes the implications of the study and provides suggestions for further research. ii CONTENTS Abstract / ii Acknowledgements / vii CHAPTER ONE: Introduction 1. Overview of the Literature / 1 2. Statement of the Problem / 5 3. The Research Questions / 7 4. Definition of Terms / 7 5. Methodology / 8 6. Thesis Design / 10 CHAPTER TWO: Entrepreneurial Theory in Context 1. Introduction / 13 2. Theoretical Background / 14 3. The Postwar Economy / 27 4. The Trilateral Commission / 32 5. Entrepreneurship in Higher Education / 38 6. Enterprise Cultures / 47 7. Summary / 53 CHAPTER THREE: Entrepreneurial Competencies 1. Introduction / 56 2. The Parameters of Entrepreneurial Competence / 3. Entrepreneurial Behaviour / 60 4. Personality Traits / 64 4.1 Need for Achievement / 64 iii 4.2 Internal Locus of Control / 67 4.3 Risk Taking / 67 4.4 Deviance and Marginalism / 69 5. Criticizing Personality Trait Research / 70 6. Socio-Cultural Factors / 72 7. Skills / 75 7.1 Basic Skills/76 7.2 Advanced Entrepreneurial Skills / 78 7.2.1 Structure/78 Teamwork / 82 7.2.2 Decision Making / 84 Delegation / 87 7.2.3 Innovation / 87 Managing Innovation / 88 Developing a Learning Culture / 91 7.2.4 Performance Incentives / 94 7.2.5 The Skills of Generalists / 95 8. Summary / 97 CHAPTER FOUR: Enterprise Education 1. Introduction / 102 2. The Relationship Between Entrepreneurship and Education / 102 3. Human Capital Theory / 103 4. Criticism 1: Educational Institutions as Sources of Anti-Commercial Attitudes / 105 5. Criticism 2: Educational Institutions as Sources of Entrepreneurial Failures / 106 iv 6. Enterprise Learning / 110 7. Education for Enterprise /111 7.1 The Small Business Model / 113 7.2 The Team Entrepreneur / 116 7.3 Interdisciplinary Knowledge-Based Networks / 117 7.4 Shortcomings of Education for Enterprise / 117 8. Education through Enterprise / 118 8.1 Britain's Enterprise in Higher Education Initiative / 119 8.1.1 Learning Formats / 121 8.1.2 Goals of the Enterprise in Higher Education Initiative / 123 8.2 Resistance to Education through Enterprise / 126 9. Education about Enterprise / 128 10. Summary / 130 CHAPTER FIVE: Central Findings and Implications /133 1. Introduction / 133 2. Review of Methodology and Procedures / 134 3. Interpreting the Central Findings / 135 4. Suggestions for Further Research / 159 References / 163 FIGURES 1. Division of Individual Labour / 17 2. Decision Making Under Uncertainty / 88 3. Division of Corporate Labour /158 Acknowledgements I have worked on this thesis for a long time and owe so much to others. My advisor Hans Schuetze was generous in his encouragement and enthusiasm. Kjell Rubenson provided early conceptual guidance, offered excellent criticisms and showed patience to the end. Don Fisher's perceptive questions and suggested readings were invaluable in drawing connections. To Leif Hommen, I am most grateful for discussions which helped to clarify the arguments and shape the direction the writing would take. For the print production stage, I am thankful to the assistance of Mary Holmes, Danuta Gajewski, Michael Beaton and Pauline Gensick. Finally, I would like to thank my husband Mark Gendron for care and feeding in stressful times, for love and strength in dispiriting times and for sharing in my sense of accomplishment in joyful times. He made it all worthwhile. vii Chapter One: Introduction The carrying out of new combinations we call "enterprise"; the individuals whose function it is to carry them out we call "entrepreneurs." —Joseph Schumpeter, Theory of Economic Development, 1961/1934, p. 74. The entrepreneur is someone who specialises in taking judgemental decisions about the coordination of scarce resources. —Mark Casson, The Entrepreneur: An Economic Theory, 1982, p. 23. Given the conceptualisation of an entrepreneur as someone who sets up and runs a project then the term is not simply restricted to the classical private entrepreneur but now allows the inclusion of social entrepreneur (Bob Geldof, aspects of Richard Branson, General Booth, Baden Powell) as well as the intrapreneur (being enterprising within an organisation). —Clifford Johnson, "Enterprise Education and Training," 1988, p. 61. Entrepreneurs [are] individuals who change the direction and flow of politics. —Mark Schneider and Paul Teske, "Toward a Theory of the Political Entrepreneur," 1992, p. 737. The appropriate definition [of entrepreneurship] is an all-inclusive one in the important sense that people and societies in all their endeavours can and do go beyond the routinized and the repetitive to create and innovate in response to their environment and, in the process, to reshape the environment. —Thomas Courchene, Entrepreneurship: A Mind of State, 1987, p. 2 (emphasis in original). 1. Overview of the Literature The quotations above serve to illustrate the range of interpretations and ambitions riding on the concept of entrepreneurship. Entrepreneurship is an analytically vague concept with no generally accepted theory or definition (Kent, Sexton, and Vesper, 1982, p. xxviii). It has been held to be an alternative to unemployment (Francis, 1993) and the means to raise lagging levels of national productivity (Farrell and Mandel, 1994). Virtually every country in the industrialized world appears to be in the process of cultivating "entrepreneurial values" and building "enterprise cultures" (OECD, 1989a). Canada's current federal minister of human resources, Lloyd Axworthy, has also stated that this country needs an "enterprise culture" (Gherson, 1994), an outline of which is implied in the "red book" of election promises (Liberal Party of Canada, 1993, pp. 4, 20). Other countries have been voicing the need to build enterprise cultures over a longer period, and 1 depending on the traditions and political ideologies at work, have very different interpretations of what this phrase means (Berger, 1991a; Keat and Abercrombie, 1991). However, all seem to agree that universities will play an instrumental role in the restructuring and growth of national economies increasingly dependent on highly qualified labour and new technologies (OECD, 1987, p. 93; Economic Council of Canada, 1990, 1992; Lynton and Elman, 1987; Science Council of Canada, 1987, 1988). In a world in which economic survival is apparently determined on the basis of making rapid technological and organizational change, the "skills" of entrepreneurship— conceived as being an orientation toward accepting innovation as a normal, even desirable activity, and contributing to innovation itself—are thought essential (OECD, 1989a; Shuttleworth, 1993). As the main institution for acculturating society's future leaders, universities are encouraged to adapt entrepreneurship as an organizing principle for creating and disseminating instrumental knowledge. The goals are to raise national competitiveness through technology transfer to industry as well as affect attitudinal changes and instill entrepreneurial competence in faculty and students. Because