1 WELCOME! 2 Innovation and Collaboration: A New Approach for Supporting the Theory and Practice of Entrepreneurship USASBE 2013 What's New, What Works:

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WELCOME!

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Innovation and Collaboration: A New Approach for Supporting

the Theory and Practice of Entrepreneurship

USASBE 2013 What's New, What Works: In the Classroom and on the Street

San Francisco, California - January 10 - 13, 2013

Steve Wallis, [email protected]

Noah Harris, MAShamana Consulting, [email protected]

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AGENDAIntroductions (who are we and why are we here?)Integrative Propositional Analysis (IPA) – (a new way to improve & test models)Activity – Use IPA to integrate and test modelsDiscussion – academic/practitioner challenge – creating a better model togetherConsortial benchmarking – brief overview & next steps

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Definition of a Model

A model (conceptual construct) is a set of interrelated propositions.

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A Model by Any Other Name

LensMapMetaphorStoryDiagramNarrativeSet of axioms

TheoryEthicsPolicyMental modelSchemaMind mapAssumptions

These are all names for a conceptual construct that is useful for engaging the

world.

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One Very Simple (very difficult)

IdeaCreating a good model has TWO requirements:

1 – External correspondence (reality-to-concept)

2 – Internal coherence (concept-to-concept)

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AGENDAIntroductions (who are we and why are we here?)Integrative Propositional Analysis (IPA) – (a new way to improve & test models)Activity – Use IPA to integrate and test modelsDiscussion – academic/practitioner challenge – creating a better model togetherConsortial benchmarking – brief overview & next steps

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Integrative Propositional Analysis

1. Identify propositions within one or more theoretical models.

2. Diagram those propositions with one box for each concept and arrows indicating directions of causal effects

3. Find linkages between causal concepts and resultant concepts between all propositions

4. Identify the total number of concepts 5. Identify concatenated concepts 6. Divide the number of concatenated concepts

by the total number of concepts in the model

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IPA – Step 1 Identify propositions

within one or more models.

For Example:

When there is more entrepreneurial risk-taking, the firm will exhibit enhanced performance.

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IPA – Step 2 Diagram propositions

•one box for each concept

•arrows indicating directions of causal effects

“Concept A” More entrepreneurial risk taking

“Concept B” Better firm performance

Proposition #1

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IPA – Step 3 Find linkages between

causal concepts and resultant concepts

A B C

P #1 P #2

B

OR

A CB

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IPA – Step 4Identify the total

number of concepts

A B C

Total Number of Concepts = 3

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IPA – Step 5Identify concatenated

concepts

A B C

Number of Concatenated Concepts = 1

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IPA – Step 6 Divide the number of

concatenated concepts by the total number of concepts in the

model

Total Number of Concepts = 3

Number of Concatenated Concepts = 1

Robustness = 0.33 (result of one divided by three)

A B C

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Pop-quiz #1 …Holmes, T. J., & Schmitz Jr, J. A. (1990). A theory of entrepreneurship and its application to the study of

business transfers. Journal of Political Economy, 98(2), 265-294.

[partial model]

Total number of concepts = Number of concatenated concepts = Robustness =

More pursuit of opportunity (entrepreneurial task)

More new product created (new business forms)

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Pop-quiz #2 …Montanye, J. A. (2006). Entrepreneurship. The independent

review, 10(4), 547-571.

Total number of concepts = Number of concatenated concepts = Robustness =

More creation and capture of economic rents in face of uncertainty and scarcity

More rewards above equilibrium level

More living better than others

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Pop-quiz #3 …Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B.

(2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32, 15-30.

Total number of concepts = Number of concatenated concepts = Robustness =

More stock of knowledge

Less efficient use of R&D by incumbents

Less regulation administrative barriers, government intervention in the market

More entrepreneurship

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Comparing Models

Model Structure Complexity

Holmes, T. J., & Schmitz Jr, J. A. (1990) R = 0.0 C = 2

Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., &

Carlsson, B. (2009) R = 0.0 C = 3

Montanye, J. A. (2006) R = 0.25 C = 4

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Example of integration…Holmes & Schmitz”A theory of entrepreneurship and its application to the study of business transfers.”

More Modernization

Less equilibrium

More opportunities for developing new products

More economic growth

Less equilibrium

More opportunities for developing new products

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Integrating the two propositions…

More Modernization

More economic growth

Less equilibrium

More opportunities for developing new products

Total number of concepts = Number of concatenated concepts = Robustness =

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AGENDAIntroductions (who are we and why are we here?)Integrative Propositional Analysis (IPA) – (a new way to improve & test models)Activity – Use IPA to integrate and test modelsDiscussion – academic/practitioner challenge – creating a better model togetherConsortial benchmarking – brief overview & next steps

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Integrating Three Models (see handout)

Total number of concepts = Number of concatenated concepts = Robustness =

More stock of knowledge

Less efficient use of R&D by incumbents

Less regulation administrative barriers, government intervention in the market

More entrepreneurship

More creation and capture of economic rents in face of uncertainty and scarcity

More rewards above equilibrium level

More living better than others

More pursuit of opportunity (entrepreneurial task)

More new product created (new business forms)

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The Integration Game

Work solo or in group (as convenient)Examine handoutsIdentify where models might overlapLink them togetherPrepare to share your results and insights

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AGENDAIntroductions (who are we and why are we here?)Integrative Propositional Analysis (IPA) – (a new way to improve & test models)Activity – Use IPA to integrate and test modelsDiscussion – academic/practitioner challenge – creating a better model togetherConsortial benchmarking – brief overview & next steps

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Resulting Model…

Is more Complex (greater breadth)?Is more Robust (more likely to be effective in practice?Creates opportunities for research?Suggests directions for practice?

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AGENDAIntroductions (who are we and why are we here?)Integrative Propositional Analysis (IPA) – (a new way to improve & test models)Activity – Use IPA to integrate and test modelsDiscussion – academic/practitioner challenge – creating a better model togetherConsortial Benchmarking – brief overview & next steps

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Consortial Benchmarking (CB)

What is it? Collaborative form of Researcher-Practitioner investigation of “best practice” firms re: a specific research question.)Purpose – Enhance rigor & relevance in collaborative researchBrief History - American Productivity & Quality Center process benchmarking work influences, key proponents Schiele & Krummaker

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CB Process

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CB, Rigor & RelevanceAppropriate Operational Measures

Strong Relationship Identification

Generalizability

Reliability/Replicability

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CB vs. Multi-Case StudiesPractitioners as Co-Researchers – Accesses both knowledge-practice basesTeam-Based – Member, Perspective, Experience & Competency DiversityMultiple Evidence Sources – Analyst, Perspective & Data TriangulationBest “Practice” (Pattern) Focus – Industry Tourism PreventionCritical Discourse – Constructive Researcher-Practitioner Discourse/Dialogue

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CB Challenges & Suitability

Complexity – Research ApproachResource Intensity – Time, Analysis, Discussions, etc.Potential Practical Issues – Member/Best Practice Firm Competition, Team-Based ChallengesBest for High Priority Researcher-Practitioner Topics

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To Conclude…IPA provides an innovative and rigorous tool for integrating and evaluating models based on logical structure

Using IPA, we can develop better academic models

CB provides an innovative and useful process for sharing knowledge

Using CB, we can share and improve upon best practices for supporting entrepreneurs

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MANY THANKSWe look forward to

collaborating with YOU!

USASBE 2013 What's New, What Works: In the Classroom and on the Street

San Francisco, California - January 10 - 13, 2013

Steve Wallis, [email protected]

Noah Harris, MAShamana Consulting, [email protected]