Abstract
According to the knowledge spillover theory of entrepreneurship, knowledge created endogenously results in knowledge spillovers, which allow independent entrepreneurs to identify and exploit opportunities (Acs et al. in Small Bus Econ 32(1):15–30, 2009). The knowledge spillover theory of entrepreneurship ignores entrepreneurial activities of employees within established organizations. This ignorance is largely empirical, because there has been no large-scale study on the prevalence and nature of entrepreneurial employee activities. This article presents the outcomes of the first large-scale international study of entrepreneurial employee activities. In multiple advanced capitalist economies, entrepreneurial employee activity is more prevalent than independent entrepreneurial activity. Innovation indicators are positively correlated with the prevalence of entrepreneurial employee activities, but are not or even negatively correlated with the prevalence of independent entrepreneurial activities.
Similar content being viewed by others
Notes
Previous large-scale research on entrepreneurial employee activity (Bosma et al. 2010) has shown that higher educated individuals are more likely to be intrapreneurs than lower educated individuals, and that lower educated individuals are more likely to be independent entrepreneurs than higher educated individuals. This has been confirmed in follow-up research by Bosma et al. (2012). Research on intrapreneurship has shown that higher educated employees are more likely to be involved in intrapreneurship than lower educated employees (Stam et al. 2012, chapter 3). So both within society and within organizations, education seems to be positively correlated to entrepreneurial employee activity.
This is a much more narrow definition than that of Martiarena (2013), which includes all employees that have been involved in the development of new business activities for their employer, irrespective of whether they had a leading role in this.
As Morris et al. (1994, p. 84) mention, entrepreneurial employee activity is unlikely to be a completely individual exercise: ‘The key is to balance the need for individual initiative with the spirit of cooperation and group ownership of innovation. This balance occurs over the entrepreneurial process, not all at once, and as micro-level innovation evolves into macro-level organizational change. Individuals are needed to provide the vision, unwavering commitment, and internal salesmanship without which nothing would be accomplished. But as the process unfolds, the entrepreneur requires teams of people with unique skills and resources’ (cf. Bartlett and Ghoshal 1997).
The 25 countries are: Australia, Belgium, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Japan, Korea (Rep.), Mexico, The Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, UK, and USA.
Given that the dependent variables are positive, we also ran Tobit regressions as a robustness check. This delivered the same outcomes. We also performed a linear regression with new technology based TEA: this type of independent entrepreneurship is not (statistically significantly) related to the innovation indicators. Results are available upon request.
References
Acemoglu, D. (2012). The World our Grandchildren Will Inherit: The rights revolution and beyond. NBER Working Paper No. 17994.
Acs, Z. J., Audretsch, D. B., & Feldman, M. P. (1994). R&D spillovers and recipient firm size. Review of Economics and Statistics, 76(2), 336–340.
Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32(1), 15–30.
Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60, 323–351.
Ahuja, G., & Lampert, C. M. (2001). Entrepreneurship in the large corporation: A longitudinal study of how established firms create breakthrough inventions. Strategic Management Journal, 22(6–7), 521–543.
Audretsch, D. B., & Keilbach, M. (2007). The theory of knowledge spillover entrepreneurship. Journal of Management Studies, 44(7), 1242–1254.
Audretsch, D. B., & Lehmann, E. E. (2005). Does the knowledge spillover theory hold for regions? Research Policy, 34(8), 1191–1202.
Audretsch, D. B., Keilbach, M. C., & Lehmann, E. E. (2006). Entrepreneurship and economic growth. Oxford: Oxford University Press.
Baumol, W. (2002). The free market innovation machine: analyzing the growth miracle of capitalism. Princeton: Princeton University Press.
Belousova, O., & Gailly, B. (2013). Corporate entrepreneurship in a dispersed setting: actors, behaviors, and process. International Entrepreneurship and Management Journal, 9, 361–377.
Benz, M., & Frey, B. S. (2008). Being independent is a great thing: Subjective evaluations of self-employment and hierarchy. Economica, 75, 362–383.
Birkinshaw, J. (1997). Entrepreneurship in multinational corporations: The characteristics of subsidiary initiatives. Strategic Management Journal, 18(3), 207–229.
Bosma, N. S., Stam, E., & Wennekers, A. R. M. (2010). Intrapreneurship–An international study, EIM research report H201005. Zoetermeer: EIM.
Bosma, N., Stam, E., & Wennekers, S. (2012). Entrepreneurial employee activity: A large scale international study. Tjalling Koopmans Institute working paper 12–12. Utrecht: Utrecht University School of Economics.
Braunerhjelm, P., Acs, Z. J., Audretsch, D. B., & Carlsson, B. (2010). The missing link: knowledge diffusion and entrepreneurship in endogenous growth. Small Business Economics, 34, 105–125.
Crant, J. M. (2000). Proactive behaviour in organizations. Journal of Management, 26(3), 435–462.
Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: The two faces of R&D. Economic Journal, 99, 569–596.
Frese, M., & Fay, D. (2001). Personal initiative: An active performance concept for work in the 21st century. Research in Organizational Behaviour, 23, 133–187.
Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706.
Gartner, W. B., & Carter, N. M. (2003). Entrepreneurial behaviour and firm organizing processes. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 195–222). Dordrecht: Kluwer.
Ghoshal, S., & Bartlett, C. A. (1997). The individualized corporation: A fundamentally new approach to management. New York: Harper Collins.
Hayek, F. A. (1937). Economics and knowledge. Economica (New Series), 4, 33–54.
Hellmann, T. (2007). When do employees become entrepreneurs? Management Science, 53(6), 919–933.
Helpman, E. (2004). The mystery of economic growth. Cambridge, MA: The Belknap Press of Harvard University Press.
Hornsby, J. S., Kuratko, D. F., & Zahra, S. A. (2002). Middle managers’ perception of the internal environment for corporate entrepreneurship: assessing a measurement scale. Journal of Business Venturing, 17(3), 253–273.
Kirzner, I. M. (1973). Competition and entrepreneurship. Chicago: University of Chicago Press.
Klepper, S. (2007). Disagreements, spinoffs, and the evolution of detroit as the capital of the u.s. automobile industry. Management Science, 53(4), 616–631.
Klepper, S., & Thompson, P. (2010). Disagreements and intra-industry spinoffs. International Journal of Industrial Organization, 28(5), 526–538.
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3, 383–397.
Lange, T. (2012). Job satisfaction and self-employment: Autonomy or personality? Small Business Economics, 38(2), 165–177.
Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3–39.
Lumpkin, G. T. (2007). Intrapreneurship and innovation. In J. R. Baum, M. Frese, & R. Baron (Eds.), The psychology of entrepreneurship (pp. 237–264). Mahwah, New Jersey: Lawrence Erlbaum Associates.
Marcotte, C. (2013). Measuring entrepreneurship at the country level: A review and research agenda. Entrepreneurship and Regional Development, 25(3–4), 174–194.
Martiarena, A. (2013). What’s so entrepreneurial about intrapreneurs? Small Business Economics, 40(1), 27–39.
Morris, M. H., Davis, D. L., & Allen, J. W. (1994). Fostering corporate entrepreneurship: Cross-cultural comparisons of the importance of individualism versus collectivism. Journal of International Business Studies, 25(1), 65–89.
Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: The Belknap Press of Harvard University Press.
Parker, S. C. (2011). Intrapreneurship or entrepreneurship? Journal of Business Venturing, 26(1), 19–34.
Parker, S. K., & Collins, C. G. (2010). Taking stock: Integrating and differentiating multiple proactive behaviors. Journal of Management, 36(3), 633–662.
Penrose, E. (1959). The theory of growth of the firm (revised version 1995). Oxford: Oxford University Press.
Qian, H. F., & Acs, Z. J. (2013). An absorptive capacity theory of knowledge spillover entrepreneurship. Small Business Economics, 40(2), 185–197.
Reynolds, P. D., Bosma, N. S., Autio, E., Hunt, S., De Bono, N., Servais, I., et al. (2005). Global Entrepreneurship Monitor: Data collection design and implementation 1998–2003. Small Business Economics, 24(3), 205–231.
Romer, P. (1990). Endogenous technological change. Journal of Political Economy, 98, 71–102.
Santarelli, E., & Vivarelli, M. (2007). Entrepreneurship and the process of firms’ entry, survival and growth. Industrial and Corporate Change, 16(3), 455–488.
Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.
Schumpeter, J. A. (1942). Capitalism, socialism, and democracy. New York: Harper and Brothers.
Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.
Shane, S., & Stuart, T. (2002). Organizational endowments and the performance of university start-ups. Management Science, 48(1), 154–170.
Sørensen, J. B., & Fassiotto, M. (2011). Organizations as fonts of entrepreneurship. Organization Science, 22(5), 1322–1331.
Stam, E., & Nooteboom, B. (2011). Entrepreneurship, innovation and institutions. In D. Audretsch, O. Falck, & S. Heblich (Eds.), Handbook of research on innovation and entrepreneurship (pp. 421–438). Cheltenham: Edward Elgar.
Stam, E., & Wennberg, K. (2009). The roles of R&D in new firm growth. Small Business Economics, 33(1), 77–89.
Stam, E., Bosma, N., Van Witteloostuijn, A., De Jong, J., Bogaert, S., Edwards, N., et al. (2012). Ambitious entrepreneurship. Adviesraad voor Wetenschap en Technologiebeleid (AWT): A review of the academic literature and new directions for public policy. Den Haag.
Teece, D. J. (1987). Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Research Policy, 15(6), 285–305.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
Thurik, R., Stam, E., & Audretsch, D. (2013). The Rise of the entrepreneurial economy and the future of dynamic capitalism. Technovation, 33(8–9), 302–310.
Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24(13), 1307–1314.
Zahra, S. A., & Covin, J. G. (1995). Contextual influences on the corporate entrepreneurship performance relationship–a longitudinal analysis. Journal of Business Venturing, 10(1), 43–58.
Acknowledgments
I would like to thank two anonymous reviewers for very helpful comments. A previous version of this article was presented at the Academic Policy and the Knowledge Theory of Entrepreneurship Workshop, University of Augsburg, 20–21 August 2012. In addition I would like to thank Olivier Paling and Niels Bosma for research assistance and obtaining access to data.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Stam, E. Knowledge and entrepreneurial employees: a country-level analysis. Small Bus Econ 41, 887–898 (2013). https://doi.org/10.1007/s11187-013-9511-y
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11187-013-9511-y
Keywords
- Entrepreneurial employees
- Knowledge spillover theory of entrepreneurship
- Independent entrepreneurship
- Innovation
- GEM