Prelims

Half Title Page

ENTREPRENEURIALISM AND SOCIETY

Endorsement Page

The two volumes of the “Reversing the Arrow” series are a tour de force that serve to crystallize a novel way of conceptualizing the interplay between society and entrepreneurship. They have led to a sea change in scholarship on entrepreneurship and will inspire new and exciting research for years to come.

Sarah Soule, Ph.D. Stanford University Graduate School of Business

Entrepreneurship has morphed from “what startups and small businesses do” into a pervasive ideology. From Shark Tank to university curricula, entrepreneurship is everywhere now. How did everyone become an LLC, ready to toss an elevator pitch at a moment's notice? The articles in these volumes examine the societal impact of entrepreneurialism -- what happens when the process of starting a business becomes a set of values and a how-to guide for appropriate action far beyond the context of startups. They reflect an engaging mix of disciplines and methods taking on a vital problem.

Gerald Davis, Ph.D., University of Michigan

Entrepreneurship has been the rage for several decades, escaping serious scrutiny of its ramifications for those who experience its second and third-order consequences. The Reversing the Arrow authors remedy that omission, deftly revealing the many societal costs and limitations that stem from worshipping at the altar of entrepreneurship.

Walter Powell, Ph.D., Stanford University

Series Page

RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS

Series Editor: Michael Lounsbury

Recent Volumes:

Editorial Page

RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS ADVISORY BOARD

Series Editor

• Michael Lounsbury

  Professor of Strategic Management & Organization

  University of Alberta School of Business

RSO Advisory Board

• Howard E. Aldrich, University of North Carolina, USA

• Shaz Ansari, Cambridge University, UK

• Silvia Dorado Banacloche, University of Massachusetts Boston, USA

• Christine Beckman, University of Southern California, USA

• Marya Besharov, Oxford University, UK

• Eva Boxenbaum, Copenhagen Business School, Denmark

• Ed Carberry, University of Massachusetts Boston, USA

• Lisa Cohen, McGill University, Canada

• Jeannette Colyvas, Northwestern University, USA

• Erica Coslor, University of Melbourne, Australia

• Gerald F. Davis, University of Michigan, USA

• Rich Dejordy, California State University, USA

• Rodolphe Durand, HEC Paris, France

• Fabrizio Ferraro, IESE Business School, Spain

• Peer Fiss, University of Southern California, USA

• Mary Ann Glynn, Boston College, USA

• Nina Granqvist, Aalto University School of Business, Finland

• Royston Greenwood, University of Alberta, Canada

• Stine Grodal, Northeastern University, USA

• Markus A. Hoellerer, University of New South Wales, Australia

• Ruthanne Huising, Emlyon Business School, France

• Candace Jones, University of Edinburgh, UK

• Sarah Kaplan, University of Toronto, Canada

• Brayden G. King, Northwestern University, USA

• Matthew S. Kraatz, University of Illinois at Urbana-Champaign, USA

• Tom Lawrence, Oxford University, UK

• Xiaowei Rose Luo, Insead, France

• Johanna Mair, Hertie School, Germany

• Christopher Marquis, Cambridge University, UK

• Renate Meyer, Vienna University, Austria

• William Ocasio, University of Illinois at Urbana-Champaign, USA

• Nelson Phillips, University of California at Santa Barbara, USA

• Prateek Raj, Indian Institute of Management Bangalore, India

• Marc Schneiberg, Reed College, USA

• Marc-David Seidel, University of British Columbia, Canada

• Paul Spee, University of Queensland, Australia

• Paul Tracey, Cambridge University, UK

• Kerstin Sahlin, Uppsala University, Sweden

• Sarah Soule, Stanford University, USA

• Eero Vaara, University of Oxford, UK

• Marc Ventresca, University of Oxford, UK

• Maxim Voronov, York University, Canada

• Filippo Carlo Wezel, USI Lugano, Switzerland

• Melissa Wooten, Rutgers University, USA

• April Wright, University of Queensland, Australia

• Meng Zhao, Nanyang Business School & Renmin University, China

• Enying Zheng, Peking University, China

• Tammar B. Zilber, Hebrew University of Jerusalem, Israel

Title Page

RESEARCH IN THE SOCIOLOGY OF ORGANIZATIONS - VOLUME 82

ENTREPRENEURIALISM AND SOCIETY: CONSEQUENCES AND MEANINGS

EDITED BY

ROBERT N. EBERHART

Stanford University, USA

MICHAEL LOUNSBURY

University of Alberta, Canada

and

HOWARD E. ALDRICH

University of North Carolina at Chapel Hill, USA

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2022

Editorial matter and selection © 2022 Robert N. Eberhart, Michael Lounsbury and Howard E. Aldrich.

Individual chapters © 2022 the authors.

Published under exclusive licence by Emerald Publishing Limited.

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Contact: permissions@emeraldinsight.com

No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-80382-662-2 (Print)

ISBN: 978-1-80382-661-5 (Online)

ISBN: 978-1-80382-663-9 (Epub)

ISSN: 0733-558X (Series)

Dedication

This volume is dedicated to the memory of Prof. William Miller who encouraged me to embark on a journey from being an entrepreneur to a scholar studying our new entrepreneurial world.

Contents

List of Tables and Figures

About the Editors

Robert N. Eberhart is the Associate Director of Research of the Entrepreneurship and Society Project at Stanford University Graduate School of Business. He earned his Ph.D. in Management Science from Stanford University and his academic publications span topics such as new theoretical constructs on how institutional change has complex effects on new firms and how entrepreneurship is changing society. He is the Founder of the Project on Entrepreneurship and Society that this volume describes. His publications have appeared in Organization Science, the Strategic Management Journal, Strategy Science, and others. His papers have won numerous awards including his 2017 paper in Organization Science that won the Responsible Research in Business and Management award. He served as the Vice Chairperson of the U.S. Department of State and METI’s Japan–US Innovation and Entrepreneurship Council.

Michael Lounsbury is a Professor at the Alberta School of Business and Adjunct Professor in the Department of Sociology at the University of Alberta, Canada. His research has a general focus on the relationship between entrepreneurship and institutional change, especially the cultural entrepreneurship involved in the creation of new industries and practices. At the University of Alberta, he is the Academic Director of eHUB, overseeing curricular and co-curricular entrepreneurship initiatives.

Howard E. Aldrich is Kenan Professor of Sociology and Adjunct Professor of Business at the University of North Carolina, Chapel Hill, USA. His main research interests are entrepreneurship, entrepreneurial team formation, gender and entrepreneurship, and evolutionary theory.

His 1979 book, Organizations and Environments, was reprinted in 2007 by Stanford University Press in its Business Classics series. His book, Organizations Evolving (Sage, 1999), won the George Terry Award from the Academy of Management and was co-winner of the Max Weber Award from the OOW section of the American Sociological Association. In 2000, he won the Swedish Foundation on Small Business Award for his research on entrepreneurship. In 2002, he won the Sitterson Award for Excellence in Freshman Teaching at UNC-CH. His latest book, An Evolutionary Approach to Entrepreneurship: Selected Essays, was published by Edward Elgar in 2012. He is a fellow of Sidney Sussex College, Cambridge University, and an Affiliate in the Strategy Department at Duke University.

About the Contributors

Dillon Berjani has recently defended his Ph.D. at the School of Business and Economics of Vrije Universiteit Amsterdam. His research adopts qualitative methods to study societal outcomes of entrepreneurship and motivate new investigations into the role of entrepreneurship in society. Next to his academic positions, he is also the Co-founder of a technology firm in Kosovo, which offers data science services to large corporations. He also serves as a Political Advisor for economic development to the Deputy Prime Minister of the Republic of Kosovo.

Svetlana Chernenko is a Research Assistant at the Institute of Education, National Research University Higher School of Economics, Russian Federation.

David R. Clough is an Assistant Professor in the OBHR Division and the Entrepreneurship and Innovation Group at the University of British Columbia’s Sauder School of Business. He received his Ph.D. from INSEAD. His research interests include new venture emergence, organizational learning, and technological change in innovation ecosystems.

Ryan Coles is an Assistant Professor of Management and Entrepreneurship at the University of Connecticut’s School of Business. He researches entrepreneurship, innovation, internationalization, and technology commercialization in the United States, Latin America, the Middle East, Africa, and Asia.

P. Devereaux Jennings is the T.A. Graham Professor of Business, the recent Canadian Center for CSR Coordinator at the Alberta School of Business, and one of the informal coordinators of the Interpretive Data Science (IDeaS) Group. He has published research on a wide variety of organizational topics, ranging from M-form use, hybrid startups in nanotech, and AI ecosystem cultural holes to corporate engagement with environmental regulation and Anthropocene issues. He has extensive editorial experience, including work as Associate Editor at AMR, ASQ, and JBV. He received his Ph.D. and M.A. from Stanford University and his A.B. from Dartmouth College.

Bob Doherty is Professor of Marketing and Chair of Food Systems at the University of York. He is also the Dean of the New School for Business and Society at the University of York. He leads a large funded 5-year program called “FixOurFood” – transformations to Regenerative Food Systems from the UK Transforming Food Systems Strategic Priorities Fund for a program. He was seconded in April 2019 for 3 years into the UK Government Department, DEFRA (Department for Environment, Food and Rural Affairs) as a Policy Fellow to work on Food Systems Policy Development. He specializes in research on pro-social market mechanisms including hybrid organizations and certification bodies. He is Founding Editor Emeritus of the Social Enterprise Journal – after 10-years as Editor-in-Chief of the Social Enterprise Journal published by Emerald Publishing Limited.

Isak Froumin is a Professor at the Institute of Education, National Research University Higher School of Economics, Russian Federation. He is the author of multiple academic articles and editor of several monographs on education (for instance, 25 Years of Transformations of Higher Education Systems in Post-Soviet Countries. Reform and Continuity/Ed. by J. Huisman, A. Smolentseva, and I. Froumin, Palgrave Macmillan, 2018).

Timothy R. Hannigan is an Associate Professor of Organization Theory and Entrepreneurship at the University of Alberta and Co-Coordinator of the Interpretive Data Science (IDeaS) group. His research is oriented around the early moments of markets and fields, cultural holes and ecosystems, blockchain entrepreneurship, and organizational wrongdoing. His work has been published in numerous outlets, including Academy of Management Annals, Academy of Management Review, Research Policy, Big Data & Society, and Behavioral Science & Policy. He holds a D.Phil. (Ph.D.) from the University of Oxford, Saïd Business School.

Rasmus Koss Hartmann is an Associate Professor of Management at Copenhagen Business School. His research deals with questions of innovation, new technology, and entrepreneurship. Most recently, he has worked on the influence of the entrepreneurship industry and entrepreneurial consumption practices on the entrepreneurial process, the impact of social acceleration on reflexivity and ethics in organizations, and the dynamics of hidden innovation processes within bureaucratic organizations.

Helen M. Haugh is Associate Professor and Research Director for the Centre for Social Innovation, Judge Business School, University of Cambridge. She received her Ph.D. from the University of Aberdeen. Her research interests focus on social and community enterprise, development, and sustainability. Most recently, she was awarded a Leverhulme Research Fellowship (2018–2022) to research rural community entrepreneurship. Her research has been published in several leading journals, including the Academy of Management Journal, Organization Studies, Journal of Business Venturing, and Journal of Business Ethics.

Shon R. Hiatt is an Associate Professor of Business Administration at the University of Southern California’s Marshall School of Business. He researches entrepreneurship, ESG strategy, and sustainability innovation in domestic and international contexts, with a particular emphasis on food/agribusiness and energy industries. He received his Ph.D. from Cornell University.

Jennifer E. Jennings, Ph.D., is the Tier 1 Canada Research Chair in Entrepreneurship, Gender, and Family Business at the University of Alberta. Her work on these topics has been published in numerous top journals, including the Academy of Management Annals, Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Entrepreneurship Theory & Practice, Journal of Business Venturing, and Organization Studies. The 2021 recipient of the AOM ENT Division’s Foundational Paper Award, she has served on the ENT Executive Committee and as a Field Editor for JBV. She received her Ph.D. from the University of British Columbia and her B.Com. from Carleton University.

Anders Dahl Krabbe is a Lecturer in Innovation and Entrepreneurship in the Strategy, International Management and Entrepreneurship Research Group at King’s Business School. He started at King’s in Autumn 2021 after being a Postdoctoral fellow at Stanford University. He was awarded his Ph.D. in Innovation Management at the University of Southern Denmark.

His research focuses on themes related to the commercialization of technology, often examined at the market or industry level. In terms of methods, he opts for inductive, qualitative, and mixed-methods approaches, often drawing on archival material.

Banu Ozkazanc-Pan is a Professor of Practice at the School of Engineering and Academic Director of the IE Brown EMBA Program. She is also the Founder and Director of the Venture Capital Inclusion Lab at the Nelson Center for Entrepreneurship. The Lab focuses on understanding and solving funding inequities in the VC industry through data-driven research, education, and advocacy. She contributed her expertise to 2021 UNGPs10+ consultation on the gender dimensions of business and human rights, which is intended to inform the work of the UN Working Group on Business and Human Rights’ UNGPs10+ “next decade” project. She also contributed her expertise to the 2021 gender dimensions of business and human rights project via the Danish Institute for Human Rights. Her piece on inclusion in the tech industry in The Conversation has over 35k reads. It was chosen as essential reading in relation to sexual harassment and discrimination in tech, particularly in regard to the Activation Blizzard lawsuit. She is currently a member of CNBC’s Disruptor 50 Advisory Council Member. She recently published her co-authored book, Entrepreneurial Ecosystems: A Critical Gender Perspective (2021), with Cambridge University Press.

Wesley D. Sine is a Professor whose research focuses on the emergence of new economic sectors and entrepreneurship. His research context includes the United States, Latin America, and the Middle East. He explores issues related to institutional change, industry and technology evolution, technology entrepreneurship, and new venture structure and strategy. He has examined a diverse set of economic sectors ranging from the electric power industry to the emergence of the Internet. Teaching interests include entrepreneurship, commercializing university technology, new venture growth, the management of technology and innovation, and organizational change. He has consulted and taught executives in Latin America, Asia, and the Middle East.Sine has published, provisionally accepted, or papers forthcoming in the following journals: Administrative Science Quarterly, Academy of Management Journal, Management Science, Organization Science, Strategic Management Journal, and Research Policy. Sine is currently a senior editor at Organization Science and is the book review editor at Administrative Science Quarterly.

Pavel Sorokin is a Senior Research Fellow at the Institute of Education, National Research University Higher School of Economics, Russian Federation. His research encompasses renovating theoretical and methodological tools of the current social science, making it more capable of dealing with the challenges of the global world, with a focus on the development of transformative agency.

Andre Spicer is Dean and Professor of Organisational Behaviour at Bayes Business School, City, University of London. He has authored a number of books including the Wellness Syndrome, Business Bullsh*t, The Stupidity Paradox and Desperately Seeking Self Improvement.

Elco van Burg is Full Professor of Organizational Theory and Head of Organizational Theory Section at the School of Business and Economics at Vrije Universiteit Amsterdam. Next to his academic positions, he has been working in a social enterprise in the rural highlands of Papua (Indonesia) for a period of six years, where he is still involved. His research is situated at the intersection of organization theory and entrepreneurship. Using process approaches he studies collaborations, imagination and decision-making, design perspectives on organizing, and organizing with purpose.

Karen Verduijn is an Associate Professor at the School of Business and Economics of Vrije Universiteit Amsterdam. Her research typically includes critical theorizing, and an interest in the intricacies of entrepreneurial everyday life. She is the (Co-)editor-in-Chief of the Scandinavian Journal of Management, a board member of the Entrepreneurship Studies Network (special interest group of the Institute for Small Business and Entrepreneurship), and editorial board member of the International Journal of Entrepreneurship and Small Business.

Balagopal Vissa is a Professor of Entrepreneurship at INSEAD. He received his Ph.D. from London Business School. His research focuses on the people side of entrepreneurship, particularly in emerging economy settings.

Foreword: Research in the Sociology of Organizations

Research in the Sociology of Organizations (RSO) publishes cutting edge empirical research and theoretical papers that seek to enhance our understanding of organizations and organizing as pervasive and fundamental aspects of society and economy. We seek provocative papers that push the frontiers of current conversations, that help to revive old ones, or that incubate and develop new perspectives. Given its successes in this regard, RSO has become an impactful and indispensable fount of knowledge for scholars interested in organizational phenomena and theories. RSO is indexed and ranks highly in Scopus/SCImago as well as in the Academic Journal Guide published by the Chartered Association of Business schools.

As one of the most vibrant areas in the social sciences, the sociology of organizations engages a plurality of empirical and theoretical approaches to enhance our understanding of the varied imperatives and challenges that these organizations and their organizers face. Of course, there is a diversity of formal and informal organizations – from for-profit entities to non-profits, state and public agencies, social enterprises, communal forms of organizing, non-governmental associations, trade associations, publicly traded, family owned and managed, private firms – the list goes on! Organizations, moreover, can vary dramatically in size from small entrepreneurial ventures to large multi-national conglomerates to international governing bodies such as the United Nations.

Empirical topics addressed by RSO include: the formation, survival, and growth or organizations; collaboration and competition between organizations; the accumulation and management of resources and legitimacy; and how organizations or organizing efforts cope with a multitude of internal and external challenges and pressures. Particular interest is growing in the complexities of contemporary organizations as they cope with changing social expectations and as they seek to address societal problems related to corporate social responsibility, inequality, corruption, and wrongdoing, and the challenge of new technologies. As a result, levels of analysis reach from the individual, to the organization, industry, community, and field, and even the nation-state or world society. Much research is multi-level and embraces both qualitative and quantitative forms of data.

Diverse theory is employed or constructed to enhance our understanding of these topics. While anchored in the discipline of sociology and the field of management, RSO also welcomes theoretical engagement that draws on other disciplinary conversations – such as those in political science or economics, as well as work from diverse philosophical traditions. RSO scholarship has helped push forward a plethora theoretical conversations on institutions and institutional change, networks, practice, culture, power, inequality, social movements, categories, routines, organization design and change, configurational dynamics and many other topics.

Each volume of RSO tends to be thematically focused on a particular empirical phenomenon (e.g., creative industries, multinational corporations, and entrepreneurship) or theoretical conversation (e.g., institutional logics, actors and agency, and microfoundations). The series publishes papers by junior as well as leading international scholars, and embraces diversity on all dimensions. If you are scholar interested in organizations or organizing, I hope you find RSO to be an invaluable resource as you develop your work.

Professor Michael Lounsbury

Acknowledgments

The editors want to express the deepest appreciation and respect for the authors in this volume, the participants at the Reversing the Arrow conferences in Lake Tahoe, and the organizers of this research effort who devoted so much time and energy to make this a reality. This volume grew out of conversations among the organizers and participants of the CalO2 conferences at the University of Southern California, the annual West Coast Research Seminars, and the annual conferences at Lake Tahoe. The editors would also like to express gratitude to the Graduate School of Business at Stanford for supporting and hosting this project, the Stanford Technology Ventures Program for their educational support, and the Rocket Wagon Venture Studio and Palo Alto Venture Studio for their generous financial support.

Author Acknowledgments

David Clough and Bala Vissa thank the co-editors of this volume of Research in the Sociology of Organizations and Teppo Felin, Gerry George, Henrich Greve, Phanish Puranam, and Wesley Sine for constructive comments on earlier drafts of their essay. They are also grateful for feedback received from audiences at the Mack Institute Emerging Scholars Workshop, the Strategic Management Society Special Conference in Copenhagen, the Strategic Management Society Annual Conference in Paris, the Academy of Management Annual Meeting in Chicago, the “Reversing the Arrow” Conference on Entrepreneurship and Society, and research seminars at INSEAD and the University of British Columbia. They gratefully acknowledge research funding received from the INSEAD Alumni Fund.

Bob Doherty would like to thank the social enterprises and other intermediary organizations involved in the research, which made our work on social entrepreneurship and the common good possible.

Pavel Sorokin, Isak Froumin, and Svetlana Chernenko express gratitude to John W. Meyer, Robert N. Eberhart and all the colleagues who participated in the 3rd Conference on Reversing the Arrow, August 2021, Lake Tahoe.