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The Process of New Venture Creation in the Islamic World: An Organizing Framework

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Entrepreneurship and Management in an Islamic Context

Abstract

This book chapter highlights the major characteristics and unique aspects of the new venture creation process in the Islamic world. To organize our argument, we follow Hitt et al. (Academy of Management Perspectives 25(2):57–75, 2011) and take a mid-range theoretical lens, conceptualizing entrepreneurship as a socially-embedded and context-specific process of resource mobilization and opportunity exploitation, culminating in the creation of a new venture, whose purpose is to create value and generate wealth and other social enhancement benefits. This approach provides a broad and theoretically-robust framework that allows us to critically review and integrate conceptual developments and empirical evidence and highlight the unique characteristics of the process of new venture creation in an Islamic context. We construct our exploration in three parts, focusing on the inputs, the characteristics of the new venture, and the outcomes of the entrepreneurial process. Our study serves a dual purpose. First, by applying a universally acknowledged and well respected framework of the entrepreneurial process, it places Islamic entrepreneurship in the broader conversation of the global entrepreneurship phenomenon. Second, it simultaneously highlights and elaborates on the unique features of Islamic entrepreneurship. Thus, it presents the phenomenon of Islamic entrepreneurship in the duality of the universal and the specific.

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Notes

  1. 1.

    Here and hereafter in the text we use the term Islam or Islamic in reference to the religion and its subsequent cultural concepts and the term Muslim with reference to the followers of the religion of Islam.

  2. 2.

    The five stages are: factor-driven, transition from factor-driven to efficiency-driven, efficiency-driven, transition from efficiency-driven to innovation-driven, and innovation-driven (World Economic Forum 2012b).

  3. 3.

    Forty of the 57 OIC member-countries were included in the 2011–2012 Global Competitiveness Report (World Economic Forum 2012b).

  4. 4.

    Qatar is ranked as a more competitive economy than economies at a higher stage of development because the 12 dimensions of competitiveness are weighed differently depending on an economy’s stage of development. Details on the ranking methodology are provided in the Global Competitiveness Report (World Economic Forum 2012b).

  5. 5.

    Somalia was not covered in the UNDP’s (2011) Human Development Report.

  6. 6.

    Transparency International’s Corruption Perception Index ranges from 0 (most corrupt) to 10 (least corrupt). The 2011 rankings were as follows: UAE: 6.8; Iraq: 1.8; Turkmenistan: 1.6; Uzbekistan: 1.6; Sudan: 1.6; Afghanistan: 1.5; Somalia: 1.

  7. 7.

    The discussion of the stages of economic development follows the 2011–2012 Global Competitiveness Report (World Economic Forum 2012b: 8–9).

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Acknowledgement

This study was undertaken while the third author was a Visiting Professor at King Saud University, Riyadh, Saudi Arabia. The support of the Visiting Professors Program at King Saud University is herein gratefully acknowledged.

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Authors and Affiliations

  1. Department of Marketing and Entrepreneurship, King Saud University, Riyadh, Saudi Arabia

    Wafa N. Almobaireek

  2. College of Business and Administration, Princess Nora bint Abdulrahman University, Riyadh, Saudi Arabia

    Wafa N. Almobaireek

  3. Dar Aluloom University, Riyadh, Saudi Arabia

    Ahmed A. Alshumaimeri

  4. Department of Management, Bentley University, 175 Forest St., Waltham, MA, 02452, USA

    Tatiana S. Manolova

Authors
  1. Wafa N. Almobaireek
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  2. Ahmed A. Alshumaimeri
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  3. Tatiana S. Manolova
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Correspondence to Tatiana S. Manolova .

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Editors and Affiliations

  1. South-East European University, Tetovo, Macedonia

    Veland Ramadani

  2. Montpellier Business School, Montpellier, France

    Léo-Paul Dana

  3. American University of Middle-East, Egaila, Kuwait

    Shqipe Gërguri-Rashiti

  4. La Trobe Business University, Melbourne, Victoria, Australia

    Vanessa Ratten

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Almobaireek, W.N., Alshumaimeri, A.A., Manolova, T.S. (2017). The Process of New Venture Creation in the Islamic World: An Organizing Framework. In: Ramadani, V., Dana, LP., Gërguri-Rashiti, S., Ratten, V. (eds) Entrepreneurship and Management in an Islamic Context. Springer, Cham. https://doi.org/10.1007/978-3-319-39679-8_5

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