Beruflich Dokumente
Kultur Dokumente
Page
1. Syllabus.
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4. George Gilder, A Patch of Sand The Spirit of Enterprise, Simon and Schuster,
1984. Pp. 23 41.
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51
6. Scott Shane. Three Dimensional Printing, Darden Business Publishing Case No.
UVA-ENT-0006, 1999.
73
7. Ronald Burt, The Social Structure of Competition. Structural Holes: The Social
Structure of Competition, Harvard University Press, 1992. Pp. 8 49.
93
8. Scott Shane, Alex Laats and NBX Corporation, Darden Graduate School of
Business Administration Case No. UVA-ENT-0005, 1999.
115
9. Sascha Becker and Ludger Woessmann Was Weber Wrong? A Human Capital
Theory of Protestant Economic History, CESifo Working Paper No. 1987, May
2007.
141
10. Michael Roberts and Howard Stevenson, New Venture Financing, Harvard
Business School Note No. N9-802-131, January 8, 2002.
207
11. Patricia Thornton, Typology of Forms Competing for Venturing Space, 2002.
221
12. Paul Gompers, Paul and Josh Lerner, Venture Capital Glossary, The Venture
Capital Cycle, MIT Press, 2000. Pp. 343 349.
223
13. Michael Roberts and Lauren Barley, How Venture Capitalists Evaluate Potential
Venture Opportunities, Harvard Business School Case No. 9-805-019, December
1, 2004.
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251
Page
15. Oliver Williamson, The Multidivisional Structure, Markets and Hierarchies:
Analysis and Anti-trust Implications, The Free Press, 1975. Pp. 132 154.
267
279
17. Paul Gompers, Corporations and the Financing of Innovation: The Corporate
Venturing Experience, Economic Review, fourth quarter 2002. Pp. 1 17.
299
18. Alan Meyer and Vibha Gaba, Major Findings: NSF Grant #0120188 National
Science Foundation, 2004.
317
19. Lynne Zucker, Michael Darby, and Marilynn Brewer, Intellectual Human Capital
and the Birth of U.S. Biotechnology Enterprises, The American Economic Review,
March 1998. Pp. 290 306.
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339
21. Michael Porter, How Competitive Forces Shape Strategy, Harvard Business
Review, reprint no. 79208, July-August 1997. Pp. 2 10.
361
22. David Yoffie and Michael Slind, Apple Computer, 2006, Harvard Business School
Case No. 9-706-496, December 20, 2006.
371
23. W. Brain Arthur, Increasing returns and the New World of Business. Harvard
Business Review, reprint no. 96401, July-August 1996. Pp. 100 109.
403
24. Henry Chesbrough and David Teece, When is Virtual Virtuous? Organizing for
Innovation, Harvard Business Review, reprint no. 96103, January-February
1996. Pp. 65 73.
413
423
26. Joseph Bower and Clayton Christensen Disruptive Technologies: Catching the
Wave, Harvard Business Review, Reprint 95103, January-February 1995. Pp 43
53.
451
27. John Campbell and Leon Lindberg, Property Rights and the Organization of
Economic Activity by the State, American Sociological Review, vol. 55, October
1990. Pp. 634 647.
463
28. Arie de Geus, The Living Company, Harvard Business Review, reprint no.
97203, March-April 1997. Pp. 51 59.
477
487
Page
30. Joanne Martin, Seeing Cultures from Different Points of View, Cultures in
Organizations: Three Perspectives, Oxford University Press, 1992. Pp . 3 21.
499
31. John van Maanen, The Smile Factory: Work at Disneyland, Reframing
Organizational Culture, Peter Frost, et al., eds., SAGE Publications, 1991. Pp. 58
76.
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Teaching Assistant
Office Hours:
and by appointment
Telephone:
Email:
Course Description
Who is likely to become an entrepreneur? How do you discover entrepreneurial
opportunities? What are the factors that affect the success of entrepreneurial ventures?
We will examine these questions in light of classic and contemporary theory and
empirical research in the social sciences.
We use action learning as a method of instructionwhich integrates theory and research
with interaction with expert practitioners in the venturing community. Readings
underscore universal principles; action learning teaches current practices and market
cycles.
Entrepreneurship is the endeavor to commercialize innovation. We examine how
individuals discover and create innovations, as well as how innovations are brought to
market by building a start-up venture, either independently or as a part of an existing
organization. We focus on the levels of both person and place persons with the ability
to recognize and create innovations, and places where innovations and resources to
develop innovation are highly concentrated. Students conduct interviews in places that
are rich sources of entrepreneurial innovations, such as technology licensing offices,
venture capital and corporate venturing firms, and entrepreneurial development
organizations.
The first part of the course focuses on how human, social, and cultural capital influences
the discovery of innovations. The second part examines how markets and organizations
are drivers of innovation and entrepreneurship. The model below summarizes these
relationships.
PERSON ----------------- PLACE ------------------ ENTREPRENEURSHIP
*Social Capital
*Environments
*Discover Innovations
*Networks
*Incubator Orgs/Regions *Develop Innovations
*Finance/Human Capital
*Prior Experience
*Cultures
*Markets
*Hierarchies
*States
t1, t2, ..
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The last part of the course we apply theories of competition, cooperation, technological
change, and leadership to understand how to anticipate windows of entrepreneurial
opportunity and how to manage the challenges of new venture development.
Who should take this course?
Undergraduate and co-term students who would like to have the analytical skills to found
their own companies and create innovation in existing companies.
What are the course prerequisites?
There are no prerequisites. The course recruits across majors. It is helpful if you have
courses in psychology, sociology, and economics and have taken sociology 160.
What are the course objectives? Knowledge of:
1. social science theories for discovering and developing innovations
2. how to use theory to recognize & solve problems & predict future outcomes
3. the organization of environments that are rich sources of innovations
4. the resources for founding new ventures
5. theories and strategies for leading the stages of growth in nascent companies
Why should I care about this course?
Entrepreneurship is a central determinant of innovation in societies, the accumulation and
distribution of wealth, and the social and economic status of individuals and
organizations.
Course format
Class sessions make use of lectures, discussions, film, and student and guest speaker
presentations. The study questions on the syllabus are designed to focus your attention on
the points to be discussed in class and are useful to prepare the case study and interview
assignments. To shorten the length of case study assignments use attachments.
Attachments are information in diagram, graph, and numeric form. I have paired a
theoretical reading with each case study. The theoretical reading will help you to interpret
the facts in the case and address the questions on the syllabus. The best grades go to
students who use the theory reading to construct an argument that guides insightful
statements about the meaning and implications of the facts in the case study. Logon on to
the CourseWork website to view the power point slides presented in class and an
annotated syllabus which motivates and summarizes key points of the readings and how
the readings as a whole fit together.
Teams
It is your responsibility to form a team and if you select to complete the innovation
environment interview assignment you will need to schedule a presentation date by the
second or third class. Also I emphasize that it takes considerable lead time to schedule
interviews with expert practitioners to complete this assignment. Please see me or the
teaching assistant if you are having any difficulties.
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Caveats
All forms of entrepreneurship cannot be adequately covered in one course. We will focus
on business innovations with the ability for high growth, not on non-profit social
entrepreneurship and lifestyle companies. However, with prior approval students have
the flexibility to craft assignments around these other forms of entrepreneurship. Students
do not develop a business plan in this course.
Due Dates and Relative Values of Course Assignments
ASSIGNMENT DUE
DATE
INDIVIDUAL
4/9
4/14
5/12
6/2
6/4
TEAM (select 1 of 2)
6/4
DESCRIPTION
% OF FINAL GRADE
Class Participation
3 D Printing Case
Alex Laats Case
Apple Case
Mission Evaluation
Smile Factory Case
Innovation Environment
interview & presentation
Case Study of Entrepreneur
Managing New Venture
Growth
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Co-term Students
In addition to the above assignments, co-term students will need to update the innovation
website addresses at the end of the syllabus. This update should identify any sites that
may have become inactive and add new sites. Please email this assignment to me no later
than the last day of finals.
Ph.D. Students
Class participation is required. The above assignments are optional. A 25 page paper
exploring new research questions in entrepreneurship is due the last day of class. Students
may make prior arrangements to study a phenomenon of interest in the field of
entrepreneurship.
Team Assignments (select 1 of 2)
Innovation Environments Interview Write-up OR Presentation
It may be easier to found new ventures in places that have more infrastructure, for
example regions with technology licensing offices, venture capital firms, angel
organizations, corporate venturing programs, incubators and other entrepreneurial
development organizations. An inherent part of the mission of these organizations is to
influence individuals on how to discover and exploit entrepreneurial opportunities. Your
assignment is to conduct an interview with an individual(s) with line responsibility in an
environment rich in entrepreneurial ideas and resources. The websites at the end of the
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syllabus may spark possible ideas. Your interview experience should allow you to
become familiar with one of these places and it should focus on how such
environments provide training, socialization, mentoring, and resources for individuals
who want to become entrepreneurs and develop innovative companies. Your report
should cover both the pros and the cons of discovering and developing innovations in
such environments from the perspective of the entrepreneur.
To learn from your interview experiences, student teams will present a 30 minute report
of their interview in the beginning of class. To organize your interview and to frame your
analysis you should draw on one or two of the theories covered in a prior class. Your
class presentation should use a combination of media, including video if possible. A
written report that summarizes your main findings is due one week after your class
presentation and should approximate 8 double spaced pages, plus attachments.
Attachments are information in diagram, graph, and numeric form. Please include a word
count at the end of the report and submit your presentation slides in hard and electronic
copy so that they can be placed on the course website.
While a combination of secondary research methods may be used, you are required to
take part in actual face-to-face conversations with at least one human being who is
knowledgeable about the organization/environment you are studying. Email chats and
phone conversations are not substitutes, but may be used in addition to face-to-face and
on-site conversations.
Case Study of Entrepreneur Managing New Venture Growth
Conduct a case study of an entrepreneur who is currently facing the challenges of
managing new venture growth. For guidance see the below articles at the end of the
syllabus.
1. Hamermesh, Heskett, and Roberts (2005). A Note on Managing the Growing
Venture, Harvard Business School Case 9-805-092.
2. Churchill, Neil C. and Virginia L. Lewis (1983). The Five Stages of Small Business
Growth, Harvard Business Review reprint 83301.
Select an individual on the founding team who is in a line management position of a
company that has grown beyond the initial start-up stage, but is not a mature business.
Your case should not focus on the individuals personal characteristics, but instead on the
entrepreneurs management style and strategies to overcome start-up challenges. You
should interview this person about growth-related stumbling blocks and alternative
strategies that may have been used to address these problems. Please do not interview a
friend or a family member. This assignment should be an opportunity to build your social
capital. This assignment should be informed by the readings and be approximately 20
pages double-spaced plus attachments. Secondary data sources are very useful for the
necessary background information. This assignment requires a face-to-face interview
unless the entrepreneur is located outside the geographic area. Please seek prior approval
for such cases.
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M 4.14
NetworksStructural Holes vs. CohesionSocial Capital Theory
Reading:
1. Burt, Ronald (1992). The Social Structure of Competition. In Structural Holes:
The Social Structure of Competition. Cambridge, MA: Harvard University Press,
pp. 8-49.
2. Case: Shane, Scott (1999). Alex Laats and NBX Corporation (Darden UVA-ENT0005), pp. 1-25.
Case Preparation Questions:
1. Why did Alex Laats leave his law firm? Do you agree with his motivation? If yes,
why? If not, why?
2. Using your knowledge of Burts concept of structural holes, evaluate the
structure of Alexs network. Is Alexs network organized to produce high
entrepreneurial returns? If yes, why? If not, how should his network be
structured?
3. Do you agree or disagree with how Alex raised venture capital? Be prepared to
support your position.
4. Based on your evaluation of Alexs network, what advice would you give Alex
about his ability to use social capital to raise venture capital?
5. Should Alex have given MIT equity in NBX Corporation.
6. Should Alex have shopped the NBX deal around to more venture capitalists?
Class Activity and Assignment:
1. We will review the case preparation questions in class as we discuss the case.
2. Bring to class a diagram of Alexs network and be prepared to present and discuss your
analysis of Alexs network in light of the readings. Write a 1-2 page essay explaining the
benefits and detriments (with respect to discovering entrepreneurial opportunities and the
resources to develop them) for Alex of having a network high in cohesion versus high in
structural holes.
3. What is missing from Burts argument on structural holes in light of Alexs situation?
W 4.16
CultureInstitutional TheoryCultural Capital
Reading:
1. Becker, Sascha and Ludger Woessmann (2007). Was Weber Wrong? A Human
Capital Theory of Protestant Economic History, CESifo Working Paper No.
1987.
Questions:
1. Webers argument in his classic 1904 book The Protestant Ethic and the Spirit of
Capitalism concerns the cultural legitimation of individualism. Based on Webers
argument what are the key differences between Catholicism and reformed
Protestantism that laid the groundwork of Webers thesis?
2. How can Webers theory be interpreted as a human capital theory?
3. Is religion a good measure of the concept of culture?
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4. Based on the implications of the institutional logics case, where would you look
for innovative ideas with the potential for commercialization? Why?
5. Give an example of an innovation and entrepreneurial opportunity that comes
from bridging the cultures of different societal sectors.
6. Can you predict a future innovation based on the theoretical arguments of the
institutional logics case?
Class Activity and Assignment:
1. We will review the case preparation questions in class as we discuss the case.
2. Write a 1-2 page essay addressing the case preparation questions.
M 4.21
PlaceInnovation Discovery
MarketsAn Engine of Entrepreneurship
Reading:
1. Can you associate the different types of funding with different types and stages of
development of start-ups?
2. What are the benefits and detriments for the entrepreneur of founding a company
with debt versus equity financing?
Class Activity:
1. Guest speaker: Angel Investor
W 4.23 Professor out of town, this class will be a session with the TA on your team
projects
Reading:
1. Roberts, Michael J. (2004). How Venture Capitalists Evaluate Potential Venture
Opportunities, Harvard Business School Case, 9-805-019.
Questions:
1. What is the number one determinant of the value of a start-up by a venture
capitalist?
2. What is the most important factor in determining whether or not a venture
capitalist funds an entrepreneur?
Class Activity:
1. Guest speaker: Venture Capital Investor
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M 4.28
HierarchiesAn Engine of Entrepreneurship
Entrepreneur as Aggregator; Entrepreneur as Broker of Companies
Contingency, Transaction Cost, and Institutional Theories
Reading:
1. Chandler, Alfred D. (1992). The Emergence of Managerial Capitalism, in
Mark Granovetter and Richard Swedberg (eds.) The Sociology of Economic Life.
2. Williamson, Oliver E. (1975). The Multidivisional Structure, chapter 8 in
Markets and Hierarchies: Analysis and Anti-trust Implications, Free Press.
3. Stearns, Linda B. and K. Allan (1996). Economic Behavior in an Institutional
Setting: The merger Wave of the 1980s, American Sociological Review, 61 (4)
699-718.
Questions:
1. Can you distinguish the differences between the unitary form (U-form) and multidivisional form (M-form) organization structures?
a. Which organization structure is more likely to facilitate innovation? Why?
b. Which organization structure is appropriate for an independent start-up
company? Why?
c. Which organization structure is appropriate for an internal corporate
venture? Why?
2. How does an M-form corporation function as an internal capital market for
founding new ventures?
3. What entrepreneurial advantages can be provided by organizational structure?
4. How does organization structure enable developing an M&A and capital markets
culture?
Class Activities:
1. Discuss reading and questions
W 4.30
Hierarchies as an Engine of Entrepreneurship
Corporate Venturing as a Founding Strategy
Reading:
1. Gompers, Paul A. (2002). Corporations and the Financing of Innovation: The
Corporate Venturing Experience. Federal Reserve Bank of Atlanta, Economic
Review, 4th Quarter.
2. Meyer, Alan and Vibha Gaba (2004). Major Findings on Corporate Venturing
National Science Foundation grant 0120188.
Questions:
1. What are the advantages and disadvantages of starting a new venture within an
M-form corporation (intrapreneurship) compared to the outside capital markets
(e.g., banks, venture capital, private placement)?
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W 5.14
Cooperation and Market Structure Shapes Windows of Opportunity for Developing
Products and Partners
Increasing Returns Theory
Reading:
1. Arthur, W. Brian. (1996). Increasing returns and the new world of business.
Harvard Business Review July-August 74: 100-109.
2. Chesbrough, Henry W. and David J. Teece (1996). When is Virtual Virtuous?
Organizing for Innovation. pp. 65-73, Harvard Business Review (96103).
Questions:
1. Why do some markets tip to a dominant design, a single standard? What are the
implications of this market process for the start-up?
2. Are there instances of markets that do not tip? Why? What are the implications
for market entry strategy and product development for the start-up?
3. Knowing Arthurs theory of positive feedbacks, how can an entrepreneur improve
on their strategy to align with the right technology?
4. Can you define the concepts of Chesbrough and Teeces theory?
a. For example types of innovation, autonomous and systemic, and types of
knowledge, codified and tacit.
5. Given that knowledge sharing is essential to innovation, how do Chesbrough and
Teece solve the conundrum of knowledge exchange among firms in competitive
markets. What is their argument?
6. Knowing Chesbrough and Teeces theory, how can an entrepreneur improve on
knowing when to partner with other companies?
Class Activities:
1. Discuss reading and questions
M 5.19
Technological Innovation Changes the Structure of Markets and Windows of
Opportunity to Found
Punctuated Equilibrium Theory
Reading:
1. Tushman, Michael L. and Philip Anderson. (1986). Technological
Discontinuities and Organizational Environments. Administrative Science
Quarterly 31: 439-465.
2. Bower, Joseph L. and Clayton M. Christensen (1995). Disruptive Technologies:
Catching the Wave, Harvard Business Review, 43-53, 95103.
Questions:
1. Define the following concepts: dominant design, environmental munificence,
technological discontinuities, technological ferment.
2. How can technology innovations fundamentally change the structure of markets
and industries?
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3. What type of technology discontinuity is likely to lower market entry barriers for
start-up firms? Why?
4. Apply Tushman and Andersons theory to the dot.com companies. Would you
classify them as competence enhancing or destroying? How are the dot.com
companies different or similar from the distribution companies at the turn of the
centurythat were in many cases became vertically integrated?
5. Given Tushman and Andersons theory, what is wrong with the commonplace
statement, it is important to stay close to the customer?
Class Activites:
W 5.21
The Role of the State in Creating Windows of Opportunity to Found
Reading:
1. Campbell, John L. and Leon N. Lindberg. (1990). Property Rights and the
Organization of Economic Activity by the State. American Sociological Review
55: 634-647.Timmons, Jeffrey (1999).
Questions:
1. How do changes in property rights laws create entrepreneurial opportunities?
2. With respect to the structure of government, why is the U.S. a rich source of
entrepreneurial opportunities?
3. Can you think of counterpart examples from the recent business press of
Campbell and Lindbergs arguments?
4. Can you think of an international application of Campbell and Lindbergs theory?
5. What are the implications of Campbell and Lindbergs theory for globalization
entrepreneurship?
Class Activities:
1. Entrepreneur Guest speaker
W 5.28
Theories of Organizational Creation and Change
The Role of Leadership in Institutionalizing Meaning and Purpose
Institutional Theory and Organizational Culture
Reading:
1. De Geus, Arie (1997). The Living Company. Harvard Business Review, MarchApril
Questions:
1. According to Selzinick, what is the difference between a manager and a leader?
2. How is a leader an agent of institutionalization?
a. What does a leader need to know to understand how organizations become
institutionalized?
3. Why is the goal of the leader to embody the identity and culture of an
organization with institutions? Why is this important for a start-up organization?
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Questions:
1. According to Selznick what elements of the social structure of an organization
affect adherence to organizational culture?
2. What does Selznick mean when he argues that effective organizations have high
consensus between informal and formal organizational culture?
3. What characteristics of Disneyland presented in the Smile Factory case create
informal organizational culture?
4. How does Martins 3 analytic views of organization culture on p. 13 explain
conflict and conformity between the informal and formal aspects of organizational
culture?
5. How does Martins argument explain the culture of the workers and management
at Disneyland?
6. Is the organizational culture presented in the Smile Factory case constructive or
destructive to the mission of Disneyland?
7. If Disneyland were a start-up, what would be the consequences of its culture, as
portrayed by Van Maanen, on its probability of success? To help? To hinder? If
hinderwhat would you do to remedy?
Class Activity and Assignment:
1. We will review the case preparation questions in class as we discuss the case.
2. Write a 1-2 page essay addressing the case preparation questions.
Course Wrap-up
M 4-7
W 4-9
INNOVATION DISCOVERYPerson
Distribution of InformationPrior Experience
M 4-14
W 4-16
CultureInstitutional Theory
INNOVATION DISCOVERYPlace
MarketsEngines of Entrepreneurship, The
Organization of Angel Investors
MarketsEngines of Entrepreneurship, The
PracticeAngel
Investor Group Speaker
Session with TA on
DATE
W 4-2
M 4-21
W 4-23
LEARNING TOOLS
Psychological Theories;
PracticeSimplot Case
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HierarchiesEngines of Entrepreneurship,
Entrepreneur as Aggregator; Entrepreneur as
Broker of Companies
W 4-30
M 5-5
RegionsEngines of Entrepreneurship
W 5-7
MARKET CREATION/CHANGE
Legitimacy & Competition Shape Windows of
Opportunity to Found
Population Ecology,
Resource Partitioning
Theories
M 5-12
W 5-14
M 5-19
W 5-21
M 5-26
W 5-28
M 6-2
W 6-4
Industrial Economic
Theory; Practice
Apple Case
Increasing Returns
Theory; Open Source
Movement, Practice
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The National Venture Capital Association regularly reports the latest data on venture
capital and has a directory of all member venture capital firms www.nvca.org
For regional differences in venture capital deal flow see www.pwcmoneytree.com
Mid-Atlantic Venture Association www.mava.org
The European Private Equity and Venture Capital Association www.evca.com
The Intersouth Partners, www.intersouth.com
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MIT: http://web.mit.edu/tlo/www/
Berkeley: http://otl.Berkeley.edu
Stanford http://otl.stanford.edu/flash.html
Harvard http://www.techtransfer.harvard.edu/
Caltech http://www.ott.caltech.edu/
National Institutes of Health Office of Technology Transfer monitors and handles transfer
of NIH inventions and also manages the patent and licensing activities for the Food and
Drug Administration
http://ott.od.nih.gov/about_nih/about.html
Linking Ideas and Innovation in Technology Transfer, http://www.ibridgenetwork.org
National University of Singapore Entrepreneurship Center: http://www.nus.edu.sg/nec/
Industry Associations and Entrepreneurship Policy
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