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Università degli Studi di Bergamo Facoltà di Ingegneria Dottorato in Economia e Management della Tecnologia Issues on Entrepreneurship: Innovation, Strategy and Financing Luca Bassani Supervisore: prof. Gianmaria Martini Gennaio 2008 Table of Contents Acknowledgements....................................................Error! Bookmark not defined. Chapter 1: Introduction............................................Error! Bookmark not defined. 1.1 Topics developed ........................................Error! Bookmark not defined. 1.2 Aims and scope of the dissertation..............Error! Bookmark not defined. 1.3 Structure of the dissertation.........................Error! Bookmark not defined. Chapter 2: Role of the Entrepreneur in the Economic TheoryError! Bookmark not defined. 2.1 Introduction.................................................Error! Bookmark not defined. 2.2 From the Middle Ages to the Renaissance..Error! Bookmark not defined. 2.3 The Industrial Revolution............................Error! Bookmark not defined. 2.4 From 1870 to the 1970 ................................Error! Bookmark not defined. 2.4.1 Neoclassical Theory .............................Error! Bookmark not defined. 2.4.2 Joseph Alois Schumpeter .....................Error! Bookmark not defined. 2.4.3 Austrian School and Kirzner ................Error! Bookmark not defined. 2.5 From 1970 to our days ................................Error! Bookmark not defined. 2.6 Conclusions.................................................Error! Bookmark not defined. Bibliography........................................................Error! Bookmark not defined. Chapter 3: Taxonomy of strategy adoption and role of innovation........... Error! Bookmark not defined. 3.1 Introduction .................................................Error! Bookmark not defined. 3.2 Review of the literature...............................Error! Bookmark not defined. 3.2.1 Schumpeterian Theory .........................Error! Bookmark not defined. 3.2.2 Neo-Schumpeterian Theory .................Error! Bookmark not defined. 3.2.3 Nelson and Winter Theory ...................Error! Bookmark not defined. 3.2.4 Analysis of determinants of innovation in the literature ..............Error! Bookmark not defined. 3.2.5 The strategic management....................Error! Bookmark not defined. 3.3 Dataset and Econometric Model .................Error! Bookmark not defined. 3.3.1 The Dataset...........................................Error! Bookmark not defined. 3.3.2 The Econometric Model.......................Error! Bookmark not defined. 3.3.2.1 Cluster Analysis ............................Error! Bookmark not defined. 3.3.2.2 Multinomial Logit Regression.......Error! Bookmark not defined. 3.4 Results.........................................................Error! Bookmark not defined. 3.5 Conclusions.................................................Error! Bookmark not defined. Bibliography........................................................Error! Bookmark not defined. Luca Bassani - DEeMT Issues on Entrepreneurship Chapter 4: Determinants of Credit Denial for U.S. SMEsError! Bookmark not defined. 4.1 Introduction .................................................Error! Bookmark not defined. 4.2 Review of the literature...............................Error! Bookmark not defined. 4.2.1 Family Business ...................................Error! Bookmark not defined. 4.2.2 Minority Business ................................Error! Bookmark not defined. 4.2.3 Financing..............................................Error! Bookmark not defined. 4.3 Dataset and Econometric Model .................Error! Bookmark not defined. 4.3.1 The Database NMBOs ...........................Error! Bookmark not defined. 4.3.2 Econometric model ..............................Error! Bookmark not defined. 4.3.3 Model explanation and variables selectionError! Bookmark not defined. 4.4 Results.........................................................Error! Bookmark not defined. 4.5 Conclusions...................................................Error! Bookmark not defined. Bibliography........................................................Error! Bookmark not defined. Chapter 5: Conclusions...........................................Error! Bookmark not defined.3 2 Luca Bassani - DEeMT Issues on Entrepreneurship List of Figures Figure 3.1 - Firm specific competences determining innovationError! Bookmark not defined. Figure 3.2 - Sternberg and Ardnt’s model (2001): Firm’s Innovation Behavior .....................................................................................Error! Bookmark not defined. Figure 3.3 - Taxonomy of generic competitive strategiesError! Bookmark not defined. Figure 3.4 - Import and Export of Manufacturing and Public Utilities ...........Error! Bookmark not defined. Figure 3.5 - Import and Export in the province of BergamoError! Bookmark not defined. Figure 3.6 - Stage of Companies' Life Cycle ..........Error! Bookmark not defined. Figure 3. 7 - Companies' access to external financing in the last three years..Error! Bookmark not defined. Figure 3. 8 - Example of contingency table ............Error! Bookmark not defined. Figure 3. 9 - Pyramid of business success with respect to strategic positioning .....................................................................................Error! Bookmark not defined. Figure 4. 1 - The Omura grid with Kerznerian and Schumpeterian dimensions .....................................................................................Error! Bookmark not defined. Figure 4. 2 - Operational Model of Family Business Sustainability ...............Error! Bookmark not defined. Figure 4. 3 - The FIRO Model ................................Error! Bookmark not defined. Figure 4. 4 - The Strategic Management Process....Error! Bookmark not defined. 3 Luca Bassani - DEeMT Issues on Entrepreneurship List of Tables Table 3.1 - Sample: Industry and Size ....................Error! Bookmark not defined. Table 3.2 - Sample: Technology level and Size......Error! Bookmark not defined. Table 3.3 - Sample: Size, Technology level and Legal formError! Bookmark not defined. Table 3.4 - Sample: Size, Technology level and TurnoverError! Bookmark not defined. Table 3.5 - Investments related to innovation by companies' sizeError! Bookmark not defined. Table 3.6 - Investments related to innovation by companies' technology level .....................................................................................Error! Bookmark not defined. Table 3.7 - Personnel description by size and technology levelError! Bookmark not defined. Table 3.8 - Search for qualified personnel ..............Error! Bookmark not defined. Table 3.9 - Form of innovation protection by size and technology level ........Error! Bookmark not defined. Table 3. 10 - Favorite competitive variable by size and technology level ......Error! Bookmark not defined. Table 3. 11 - How to promote innovation ...............Error! Bookmark not defined. Table 3. 12 - Collaborations with clients ................Error! Bookmark not defined. Table 3. 13 - Entrepreneur's opinion about collaborations with Universities..Error! Bookmark not defined. Table 3. 14 - Results of the cluster analysis by Jaccard (dis)similarity measure .....................................................................................Error! Bookmark not defined. Table 3. 15 - Results of the cluster analysis by Russell (dis)similarity measure .....................................................................................Error! Bookmark not defined. 4 Luca Bassani - DEeMT Issues on Entrepreneurship Table 3. 16 - Belongingness to cluster by the strategic dimensions................Error! Bookmark not defined. Table 3. 17 - Multinomial regression with clusters 1 and 2Error! Bookmark not defined. Table 3. 18 - Multinomial regression with clusters 1 and 3Error! Bookmark not defined. Table 3. 19 - Multinomial regression with clusters 2 and 3Error! Bookmark not defined. Table 4. 1 - Legal Ownership by ethnic group........Error! Bookmark not defined. Table 4. 2 - Business industry by ethnic group .......Error! Bookmark not defined. Table 4. 3 - Family generation involved in the businessError! Bookmark not defined. Table 4. 4 - Way to start the business......................Error! Bookmark not defined. Table 4. 5 - Descriptive statistics on the entrepreneursError! Bookmark not defined. Table 4. 6 - Entrepreneur/Manager general and business related education ...Error! Bookmark not defined. Table 4. 7 - Major problems identified by the entrepreneursError! Bookmark not defined. Table 4. 8 - Help received from Institutional OfficesError! Bookmark not defined. Table 4. 9 - Companies’ sources of financing since the start of activities ......Error! Bookmark not defined. Table 4. 10 - Companies’ sources of financing during the last year of activity .....................................................................................Error! Bookmark not defined. Table 4. 11 - Competition for the use of business assetsError! Bookmark not defined. Table 4. 12 - Reasons of competition for resources Error! Bookmark not defined. Table 4. 13 - Participation in organizations.............Error! Bookmark not defined. Table 4. 14 - Business performances and ethnicity issuesError! Bookmark not defined. Table 4. 15 - Use of computer and business processes related to it ................Error! Bookmark not defined. Table 4. 16 - Predicted Logit and Probit probabilitiesError! Bookmark not defined. Table 4. 17