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Entrepreneurial Behavior During Industry New England Journal of Entrepreneurship Volume 18 Number 2 2015 Eastern Academy of Management Article 6 Conference Special Issue 2015 Entrepreneurial Behavior During Industry Emergence: An Unconventional Study of Discovery and Creation in the Early PC Industry Alka Gupta Lynchburg College, [email protected] Christoph K. Streb University of Luxembourg, [email protected] Vishal K. Gupta University of Mississippi, [email protected] Erik Markin University of Mississippi Follow this and additional works at: https://digitalcommons.sacredheart.edu/neje Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Gupta, Alka; Streb, Christoph K.; Gupta, Vishal K.; and Markin, Erik (2015) "Entrepreneurial Behavior During Industry Emergence: An Unconventional Study of Discovery and Creation in the Early PC Industry," New England Journal of Entrepreneurship: Vol. 18 : No. 2 , Article 6. Available at: https://digitalcommons.sacredheart.edu/neje/vol18/iss2/6 This Refereed Article is brought to you for free and open access by the Jack Welch College of Business at DigitalCommons@SHU. It has been accepted for inclusion in New England Journal of Entrepreneurship by an authorized editor of DigitalCommons@SHU. For more information, please contact [email protected], [email protected]. Gupta et al.: Entrepreneurial Behavior During Industry Emergence Entrepreneurial Behavior During Industry Emergence: An Unconventional Study of Discovery and Creation in the Early PC Industry Alka Gupta Christoph Streb Vishal K. Gupta Erik Markin cting entrepreneurially in nascent industries is of Silicon Valley (henceforth PSV), which documents a complex endeavor characterized by uncer- the activities of a variety of actors involved in the tainty and ambiguity. Nevertheless, entirely emergence of the personal computer (PC) industry new industries do emerge, often as a direct re- (Leonard, 1999). sultA of entrepreneurial behavior. We extend and apply discov- At present, the literature presents two perspec- ery and creation approaches to study entrepreneurial behavior tives—discovery and creation—that explicitly address during industry emergence by means of qualitative analysis of the role of agency and action in entrepreneurship a film about the personal computer (PC) industry’s formative (Alvarez & Barney, 2007). For discovery theorists, years. We find that discovery and creation behavior are funda- alert actors identify hitherto unperceived discrepan- mentally interrelated and share a common element: bricolage. cies that can be readily rectified (Kirzner, 1997; Moreover, ideological activism is a major component of entre- Shane, 2003). For creation theorists, imaginative ac- preneurial behavior in a new industry’s formative years during tors create new artifacts (Mathews, 2010; Sarasvathy, both creation and discovery processes. Implications for research 2001). In metaphorical terms, discovery is about and practice are discussed. “searching the brushy woods for a choice of path,” Keywords: entrepreneurial behavior, discovery, crea- while creation involves constructing new paths tion, qualitative methodology (Hjorth & Johannisson, 2008: 343). For the most part, these two theoretical perspectives have been considered opposed to each other in the prior litera- Entrepreneurial behavior is “risky business” un- ture. Despite the increasing popularity of discovery der any condition, but especially during an industry’s and creation approaches in entrepreneurship formative years when there are few precedents for (Edelman & Yli-Renko, 2010; Vaghely & Julien, the kinds of activities in which enterprising actors 2010), these two perspectives have not been explicitly want to engage (Sine, Haveman, & Tolbert, 2005). used to provide insights into entrepreneurial behavior Nevertheless, entirely new industries emerge suc- in emergent industry contexts (Bird & Schjoedt, cessfully, often as a direct result of human agency 2009). We therefore apply these perspectives, with the (Garud & Karnoe, 2003). Studies of entrepreneurial goal of comparing and contrasting them to advance behavior have tended to concentrate on relatively our understanding of entrepreneurial behavior under mature industries where its dynamics may differ conditions of uncertainty and ambiguity (Alvarez & (Mezias & Kuperman, 2001), resulting in “the persis- Barney, 2010). tence of major gaps in our understanding” of the The film PSV is based on careful research that phenomenon (Forbes & Kirsch, 2011). This lack of involved digging through “reams of documents da- studies on entrepreneurial behavior in emergent in- ting back to the 1970s,” reading “all available books dustries is a notable omission. Not only is entrepre- about those involved” in the process, combing neurial behavior an important research topic in its through old magazine pieces written as events were own right, but events and activities during this time unfolding, and viewing “miles of film and video also tend to have a profound impact on an industry’s footage” related to the main characters (Huff, 1999). subsequent development (Aldrich & Reuf, 2006). In Steve Wozniak, a key figure in the development of our study, we begin to redress this research gap. We Silicon Valley and a co-founder of Apple Inc., pro- extend prior research and empirically apply discov- vided an industry insider endorsement of the film ery and creation perspectives to study entrepreneuri- (Korsgaard & Neergaard, 2011) when he declared al behavior during industry emergence through a that it “pretty much reflected the events as they hap- narrative analysis of a 1999 made-for-TV film, Pirates pened” (Wozniak, 2000). This is not to say that Published by DigitalCommons@SHU, 2015 ENTREPRENEURIAL BEHAVIOR DURING INDUSTRY EMERGENCE 61 1 New England Journal of Entrepreneurship, Vol. 18 [2015], No. 2, Art. 6 PSV, like other entrepreneurship stories, may not of entrepreneurship stories in biographical accounts take some artistic license, substituting—in Gartner’s (e.g., The Toy Stor(e)y in Gartner, 2007) and books words (2007: 614)—“unknowns in the knowledge of (e.g., Republic of Tea in Gartner, 2010b). Despite this specific ‘facts as given’ with ‘facts as made.’” It nev- increase in the use of “stories as data” (Gartner, ertheless serves as a rich source of information to 2010a), films have not yet entered the repertoire of generate insights into entrepreneurial behavior scholars in our field. This is surprising, because film (Gartner, 2010a). Ahl and Czarniawska (2010: 196) presents a story as a “sequence of events connected argue that even if an entrepreneurship story is not by subject matter and related by time” (Scholes, completely authentic, it can still advance the study of 1980: 209). In addition, films are important cultural entrepreneurial behavior as long as “it is interesting and educational artifacts, and have a “pervasive and to analyze.” enduring presence” in modern society (Neuendorf et In the present study, we deploy discovery and al., 2010: 759). Our use of a film that is readily avail- creation theories to cast new light on industry emer- able for future study thus has the potential to extend gence using PSV as a key source of information story-based entrepreneurship research (e.g., Gartner, about the formative years of the PC industry. We ad- 2007, 2010b) in new directions (Gartner, 2010a). vance knowledge about entrepreneurial behavior dur- ing industry emergence in several ways. First, the dis- covery and creation perspectives that we employ not Theoretical Background only allow us to examine and apply theoretical tenets Discovery and Creation Perspectives from existing perspectives, but also to develop theo- Discovery and creation frameworks can be consid- retically grounded insights into entrepreneurial behav- ered meta-perspectives comprising a wide variety of ior in an emergent industry context (Aldrich & Reuf, entrepreneurship research based on underlying 2006). Forbes and Kirsch (2011: 4) contend that in- philosophical assumptions (Chiles et al., 2010a; dustry emergence represents the “left side of a story Zahra, 2008). Although both perspectives are root- whose center and right are comparatively well docu- ed in fundamentally different assumptions about mented” in the organizational literature. Our use of the nature of the market process (Gloria-Palermo, two established theoretical frameworks—discovery 1999), they embrace the idea that the economy is and creation—seeks to shed new light on entrepre- driven by enterprising actors’ spontaneous actions neurial behavior in a nascent industry context. (O’Driscoll & Rizzo, 1985). The discovery perspec- Second, we use a qualitative approach to provide tive assumes a realist objective ontology, whereas a context-rich empirical analysis of entrepreneurial the creation perspective is rooted in subjective con- behavior (Gartner, 2010a; Hjorth, Jones, & Gartner, structivist ontology (Pacheco, Dean, & Payne, 2008). Our approach involves a holistic interpreta- 2010). The former posits that the world is com- tion of the recorded activities and processes com- prised of objective phenomena to which entrepre- prising entrepreneurial behavior (Phillips & Brown, neurs respond actively (Kirzner, 1997; Shane & 1993), which makes this approach suitable for re- Venkataraman, 2000), while the latter contends that search in entrepreneurship (Chiles, Vultee, Gupta, entrepreneurial action continually constructs the Greening & Tuggle, 2010a). Although researchers world (Chiles, Tuggle,
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