1 Universities in Transition: Developing Entrepreneurial Universities for Organizing Third Mission PhD Project School of Business and Economics, UiT – The Arctic University of Norway The Entrepreneurial University Universities worldwide are increasingly tasked with fulfilling and enhancing the third mission of “service” with a concerted effort to help stimulate and sustain economic development. With this increased emphasis on commercializing research, licensing of technology, creating university spinoffs, introducing entrepreneurship programs, and expanding university-industry relations, universities are being encouraged to take an entrepreneurial turn. This term identifies the transition that challenges universities as institutions, beyond their first mission (education) and second mission (research). Theoretically the entrepreneurial turn can be viewed as an institutional change (Scott, 2014) consisting of the roles, norms and conventions that society has identified for how universities are expected to perform. This project aims to test hypotheses on how universities institutionalize the third mission through an “entrepreneurial architecture”. The term entrepreneurial university can be traced back to the well-cited book entitled “Academic Capitalism” (Slaughter and Leslie, 1997), which examines the changes of academic labour between 1970 and 1995. It defines the phrase 'academic capitalism' as the market effort to secure the external finance of universities. In a study of the transformation of five European universities, Clark (1998:3-4) uses the term “entrepreneurial university” to mean a“characteristic of social systems; that is, of entire universities and their internal departments, research centres, faculties and schools. The concept carries the overtone of ‘enterprise’ —a wilful effort in institution-building that requires much special activity and energy. Taking risks when initiating new practices whose outcome is in doubt is a major factor. An entrepreneurial university, on its own, actively seeks to shift in organizational character so as to arrive at a more promising posture for the future. Entrepreneurial universities seek to become ‘stand-up’ universities that are significant actors on their own terms. Institutional entrepreneurship can be seen as both process and outcome.” This project follows Clark’s (1998) definition by viewing universities as institutional entrepreneurs when seeking to accommodate the entrepreneurial turn as a societal norm. According to recent literature, universities can be entrepreneurial in two main ways. First , academic entrepreneurship focuses on the commercialisation of knowledge and research findings (Klofsten and Jones-Evans, 2000; Roessner, et al., 2013). In this way universities relate the third mission to research by becoming knowledge hubs (Youtie and Shapira, 2008) and are often concerned with the challenges and opportunities associated with technology transfer (Mowery, et al., 2002; Owen-Smith and Powell, 2003). Second, entrepreneurial education (Gibb and Hannon, 2006) links the third mission to the
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Universities in Transition: Developing Entrepreneurial Universities for Organizing
Third Mission
PhD Project
School of Business and Economics, UiT – The Arctic University of Norway
The Entrepreneurial University
Universities worldwide are increasingly tasked with fulfilling and enhancing the third
mission of “service” with a concerted effort to help stimulate and sustain economic
development. With this increased emphasis on commercializing research, licensing of
technology, creating university spinoffs, introducing entrepreneurship programs, and
expanding university-industry relations, universities are being encouraged to take an
entrepreneurial turn. This term identifies the transition that challenges universities as
institutions, beyond their first mission (education) and second mission (research).
Theoretically the entrepreneurial turn can be viewed as an institutional change (Scott,
2014) consisting of the roles, norms and conventions that society has identified for how
universities are expected to perform. This project aims to test hypotheses on how
universities institutionalize the third mission through an “entrepreneurial architecture”.
The term entrepreneurial university can be traced back to the well-cited book entitled
“Academic Capitalism” (Slaughter and Leslie, 1997), which examines the changes of
academic labour between 1970 and 1995. It defines the phrase 'academic capitalism' as the
market effort to secure the external finance of universities. In a study of the transformation
of five European universities, Clark (1998:3-4) uses the term “entrepreneurial university”
to mean a“characteristic of social systems; that is, of entire universities and their internal
departments, research centres, faculties and schools. The concept carries the overtone of
‘enterprise’ —a wilful effort in institution-building that requires much special activity and
energy. Taking risks when initiating new practices whose outcome is in doubt is a major
factor. An entrepreneurial university, on its own, actively seeks to shift in organizational
character so as to arrive at a more promising posture for the future. Entrepreneurial
universities seek to become ‘stand-up’ universities that are significant actors on their own
terms. Institutional entrepreneurship can be seen as both process and outcome.” This
project follows Clark’s (1998) definition by viewing universities as institutional
entrepreneurs when seeking to accommodate the entrepreneurial turn as a societal norm.
According to recent literature, universities can be entrepreneurial in two main ways. First,
academic entrepreneurship focuses on the commercialisation of knowledge and research
findings (Klofsten and Jones-Evans, 2000; Roessner, et al., 2013). In this way universities
relate the third mission to research by becoming knowledge hubs (Youtie and Shapira,
2008) and are often concerned with the challenges and opportunities associated with
technology transfer (Mowery, et al., 2002; Owen-Smith and Powell, 2003). Second,
entrepreneurial education (Gibb and Hannon, 2006) links the third mission to the
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university’s teaching mission and the building of entrepreneurial competency (Altmann
and Ebersberger, 2013). This project builds on both these ways in which universities can
develop entrepreneurially, thus research based innovations as well as entrepreneurship
education and student entrepreneurship are seen as outcomes.
It is clear that governments, businesses, and societies differ in how they expect universities
to contribute to knowledge-based growth, just as societal and institutional contexts differ
in how they enhance or impede third mission programs and activities. Despite an
increasing amount of research focusing on university entrepreneurship (Morris et al., 2013;
Hoskinson and Kuratko, 2014; Fayolle and Redford, 2014; McKelvey and Holmen, 2009;
Fetters, et al., 2010), scant attention has been given to how universities organize themselves
in order to develop entrepreneurially. The research topic of this project is thus: How can
universities organize themselves in order to address this entrepreneurial turn and execute
the third mission of service? Institutional theory claims that organizations are both
creatures of their institutional environments as well as active players in these processes
(Scott, 2014). Thus the emerging entrepreneurial university is a result of complex recursive
processes by which institutional forces both shape, and are shaped by, organizational
actions.
Tolbert et al (2011) argues that the mutual neglect of entrepreneurship research and
institutional theory has limited the development of both traditions. Conceptualizations of
entrepreneurial universities have generally failed to understand the complex
interdependent and intricate institutional dynamics (Howells, et al., 2012). Consequently,
there are few contributions to establish and test a theoretical approach to how universities
can institutionalize the third mission.
Institutionalizing the Third mission through an Entrepreneurial Architecture
In an extensive literature review, Rothaermel, et al., (2007) concluded that current research
in university entrepreneurship lacks a complexity in models and richness in data to
understand the interdependent process across different actors, agents, and institutions.
Recent empirical studies support the complex interrelationship between the university and
an intricate institutional organisation and its environment (Curi, et al., 2012; Howells, et
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al., 2012). Nelles and Vorley (2010b) claim that few contributions have attempted to
establish a theoretical approach to conceptualize how universities can respond effectively
to entrepreneurial imperatives. They propose that the third mission can and should
reinforce the missions of teaching and research and that embedding the third mission and
viewing the three missions as mutually constitutive is essential for the future coherence of
the contemporary university (p.342). Nelles and Vorley (2011) further identify a gap in
previous studies as not seeking to theorize the process or dynamics of transformation in
response to the pressure to become more entrepreneurial as institutions, nor encouraging
entrepreneurship from within. They advocate that the concept of entrepreneurial
architecture contributes to the literature by reconceptualizing the dynamic process of
organizational change that accompanies university adaption of the third mission (p.344).
They introduce the concept of “entrepreneurial architecture” from the corporate
entrepreneurship literature (Burns, 2005) as a lens though which the expanded mission of
the universities can be better understood (Nelles and Vorley, 2010a).
Elements of Entrepreneurial Architecture: Defined and Identified Source: Nelles& Vorley (2010a: 169)
According to Nelles and Vorley (2008), the metaphor ‘entrepreneurial architecture’ (EA)
refers to the collection of internal factors that interact to shape entrepreneurial agendas at
universities. It comprises five dimensions that represent the institutional, communicative,
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coordinating and cultural elements of an organization oriented towards the third mission,
as shown in the Table above. Vorley and Nelles (2008:130; 2009:288) advocate that the
third mission is best integrated into an institutional strategy where inner connections link
functions and goals while coordinating and embedding third stream activities as
fundamental to institutional development.
How universities design, develop and implement their EA is an institutional question,
which will also be determined by how the different dimensions interrelate. Indeed the EA
of universities, as with other missions, are subject to a multitude of power struggles and
internal tensions. Etzkowitz (2003: 116) asserts that entrepreneurial universities have
learned to function with antithetical norms, although arguably entrepreneurialism can only
thrive where seemingly contradictory ideas and practices are reconciled. EA provides a
framework to understand the entrepreneurial evolution of universities and with it their
legitimation while also serving to highlight the varied locus of power within (cf. Philpott
et al., 2011). Universities consist of scientists within various disciplines, e.g. life sciences,
technology, engineering and humanities – who have different motivations and interests in
pursuing the third mission (cf. Lam, 2015; Rasmussen et. al., 2014; Foss, 2012).
A newly published study of how 10 universities from five different countries meet the
entrepreneurial turn supports the importance of the contextual embeddedness of the
architecture dimensions (Foss and Gibson, 2015). All the case narratives support the
importance and impact of the regional and national context in which the university is
embedded concerning the launch, development, and sustainability of programs and
activities supporting the entrepreneurial turn. Thus, the national and regional context is
important to how and at what speed a university employs an entrepreneurial architecture.
Following institutional theory, Scott’s regulative pillar of influence (Scott 2014:59) is
relevant here as well as the importance of the region/context in which the university is
embedded (Uyarra, 2010; Welter, 2011). The interrelationship between the institutional
and regional context and the development of the entrepreneurial architecture is under
researched and thus needs to be addressed.
The new study “Academic Entrepreneurship: Time for a Rethink” (Siegel and Wright,
2015) argues that the field has moved from the traditional perspective of entrepreneurial
universities generating direct financial returns through academic spin-offs, licensing and
patents by faculty and postdocs in TTOs and science parks to an emerging perspective.
This positions the university as providing a wider social and economic benefit to the
university ecosystem based on student and alumni start-ups, entrepreneurially equipped
students and job creation in the local region or state. They view students, alumni, on–
campus industry collaboration and surrogate entrepreneurs as the central actors, while
shifting TTOs and science parks to accelerators, entrepreneurship garages, student business
plan competitions, collaborative networks with industry and alumni, employee mobility
and public and private “incubators”.
An emerging stream of literature indicates that there is a relationship between university
context and the intended entrepreneurial action of students (Kraaijenbring et al., 2010;
Turker and Selcuk, 2009; Saeed and Muffatto, 2012). A number of studies have addressed
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the context in which students operate throughout their studies at higher education
institutions. The study by Todorovic et al., (2011), for example, shows that universities
which provide entrepreneurship support achieve a higher number of spinouts and patents.
The entrepreneurial orientation of a university, including research mobilization,
unconventionality, industry collaboration and university policies, increased the
entrepreneurial intentions and attitudes of the students (Saeed and Muffatto, 2012).
Another study found that the most important support services requested by students at
universities include bringing students into contact with a network supporting new business
startups, arranging entrepreneurship conferences and workshops, and offering project work
(Davey et al., 2011). Consequently, an important part of developing the third mission is for
universities to invest in an entrepreneurially-friendly university context.
Research Questions
Based on the role of the university, which to a large degree encompasses co-creation within
its environment, the modern aim of universities can be defined as to “collaborate with
diverse social actors to create societal transformation in the goal of materialising
sustainable development in a specific location, region or societal sub–sector” (Trencher et
al., 2014:4). This project suggests that entrepreneurial architecture can be viewed as an
institutional change to create this transformation by executing the third mission. It follows
Nelles and Vorley (2010), who advance the concept of ‘entrepreneurial architecture’ (EA)
as a heuristic technique for understanding the foundations of entrepreneurial universities.
Comprising the five well-established dimensions of structures, systems, leadership,
strategies and culture, the contribution of EA is in bringing them together to understand
the makings of entrepreneurial universities. This project therefore aims to integrate the
concept of entrepreneurial architecture at an organizational level in a larger institutional
framework (Nelles and Vorley, 2010; Nelles and Vorley 2011; Vorley and Nelles, 2008).
An institutional perspective allows analysis within the embedded contexts of universities.
The project builds on recent findings that the components of the EA are interrelated as well
as impacted by the institutional context (Foss and Gibson, 2015).
The overall research question of interest in this PhD project is: How can universities
develop their entrepreneurial architecture to successfully execute the third mission? There
are several directions this idea can be explored that could result in some interesting
findings: (1) How does the entrepreneurial architecture of universities both enable and
constrain so-called third mission activities? (2) How does the way in which a university's
entrepreneurial architecture evolve and/or is constructed determine the scale and scope of
the third mission? (3) How do university organizational factors (incentive structures,
management, etc.) stimulate entrepreneurship? (4) How does the way in which universities
engage in entrepreneurial/third mission activities vary within and across institutions? (5)
In which ways does the disciplinary focus of institutions/departments affect the
entrepreneurial orientation of universities? (6) How do successful third mission activities
vary among institutions? These questions can be explored within the university context
and the regional context in order to create new knowledge of the embeddedness of EA for
serving the third mission (see Figure below).
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Empirical context- Norwegian universities
Due to the recent reformation of the Norwegian higher education system, there are now
eight universities in Norway: UiO, NMBU, UiA, UiS, UiB, NTNU, Nord Universitet and
UiT. These are all state-financed and widely dispersed in various regions, with different
populations, infrastructure and industrial sectors. R&D specializations vary widely among
these universities (Gunnes, et.al., 2015). In 2003 a new law was established that gave the
universities ownership to commercialize research. A new report shows that Technology
Transfer Offices (TTOs) are situated in close proximity to five of the universities and are
embedded in the local systems while collaborating with many different actors (Spilling et
al., 2015). Although the rate of commercialization has increased since 2003, there is still
skepticism among researchers regarding the legitimacy of “making business out of
research”. Attention is paid to the two primary missions of the university, research and
education, which are viewed as important for international competitiveness, whereas
commercialization is viewed as a more peripheral activity (Spilling et al., 2015). Norway
uses a smaller share of its GDP on R&D than Finland, Sweden and Denmark, and the
private sector contributes only half of the average of the private sector in OECD countries.
Still, Norwegian universities have the largest public funding source compared to all the
other OECD and EU countries (Forskningsbarometeret, 2015). The government has
increased investments in FORNY1 money, pre-seed money and a “Gründerplan” (Nærings-
og fiskeridepartmentet, 2016) Consequently, there are high expectations of Norwegian
universities to build internal cultures supporting the commercialization of research,
university–industry interactions and student entrepreneurship.
1 A program supported by the Research Council of Norway in order to encourage the commercialization of research results.
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Methodological approach
Models of analysis as well as hypotheses are to be developed based on the refinement of
the research questions and the performance of a literature review. The hypotheses will be
tested through a comparative analysis of the entrepreneurial architecture in Norwegian and
some international universities using quantitative methods. A starting point for developing
a measurement of constructs and working hypotheses will be field work to universities in
Scandinavia, the UK and the US, where key authors of narrative case studies in the book
“The Entrepreneurial University: Context and Institutional Change“ (Foss and Gibson,
2015) will be available for consultation. As there exists scant empirical research on the
entrepreneurial architecture of universities, a large part of the PhD project will be devoted
to operationalizing concepts, developing empirical scales, and the testing of measurement
instruments. Thus the candidate must have interest in and must be willing to learn advanced
multivariate statistics.
PhD training, work plan, academic support
The Norwegian Research School of Innovation (NORSI) provides an internationally
competitive PhD program in innovation, and consists of a research network of Norwegian
universities, leading institutions in Scandinavia, as well as top international universities in
the United States and Europe. The Business School at UiT is represented in the NORSI
board and faculty. The PhD candidate is suggested to be enrolled in this program. The High
North Academy at UiT and Young Scientist Forum connected by Arctic Frontiers in
Tromsø are also relevant networks for the PhD candidate, as well as the international
network of the research group “Researching Entrepreneurial Universities,” to which the
PhD candidate will belong.
We foresee a 4 year plan for the PhD candidate, with the 25% lecturing responsibility either
at the Bachelor or Master level in entrepreneurship and innovation. The PhD dissertation
is to be based on three published articles and an umbrella chapter. The PhD candidate will
be supervised by a professor in the REU group and an international Professor, expert on
the entrepreneurial architecture, as a second supervisor.
Table 1: Progress and dissemination plan
Time Activity
1.09 2016 Developing research framework, literature review,