Techreport,
A Model of Destructive Entrepreneurship
Working Papers, UNU-WIDER Working Paper W. World Institute for Development Economic Research (UNU-WIDER), (2010)
Abstract
The study presented here explores innovation as a corporate entrepreneurial
outcome in recently established small firms. More precisely, we explore
the role of upper echelon and employee human capital and human resources
management as determinants of innovation. Our approach builds on
a 'human resource'-based view, stressing the importance of (1) entrepreneur/entrepreneurial
team ('upper echelon') human resources and (2) employee human resources
and their management in determining the innovation performance of
start-ups. As innovation is one of the three possible outcomes of
corporate entrepreneurship (innovation, venturing and renewal), we
take a corporate entrepreneurship research approach in examining
innovation in start-ups. The analyses are based on a sample of 294
start-ups covering a wide range of economic activities, having 1
to 49 employees and being in their second year of life in 2003. The
results indicate that both types of human capital do matter in the
context of start-up innovation. First of all, employee human capital
and HRM have a strong positive effect on innovation. Second, while
we could not trace direct effects of entrepreneur/entrepreneurial
team human capital on innovation, indirect effects (via HRM or employee
human capital) of for instance education level and business advice
are indisputably present. All things considered, the study teaches
us that valuing human capital in start-ups can contribute to a considerable
extent to preserving their innovation performance, thus stimulating
their chances of building a viable business model and safeguarding
future growth and further development.
Tags
- capital;
- conflict
- determinants;
- effects;
- employees;
- firms;
- growth;
- human
- innovation;
- management;
- mode
