A n industry's potential for interdependency among productive activities is one of the central concepts in strategic management. Although theoretical models have clarified how and why industry average profitability should peak at moderate levels of interdependency, the empirical evidence so far has not supported the inverted-U-shaped relationship. By developing a measure that is based on how frequently pieces of knowledge are used jointly in technological inventions, we find strong support that confirms the predicted relationship between interdependency and industry average profitability. We also find evidence supporting an inverted-Ushaped relationship between interdependency and firm profitability. Moreover, our measure captures how the potential in interdependency may change over time within an industry. The temporal variation allows us to correct omitted variable biases, which poses concerns that weren't raised in previous studies. The measure is created from more than 1.93 million technological patents that have been approved by the U.S. Patent and Trade Office between 1901 and 1996. Since patent data are available to the public, future studies can readily build on our measure of industries' potential for interdependency.

Purpose The purpose of this paper is to investigate two competing hypotheses about the relationship between a country’s human rights violation and social entrepreneurship entry. Design/methodology/approach Using multilevel logistic regression with random effect, this paper tested the hypotheses on a sample of 110,460 individuals in 49 countries using data from Global Entrepreneurship Monitor’s Adult Population Survey and the Survey of Social Entrepreneurship for the year 2009. This paper takes advantage of the Cingranelli-Richards Human Rights Data Project to measure a country’s level of human rights protection. Findings Human rights are positively related to social entrepreneurship entry. The findings also indicate that public sector expenditure strengthens the relationship between human rights, measured by the judiciary independence and social entrepreneurship entry. Originality/value This study contributes to the social entrepreneurship literature by conducting a novel empirical investigation of the direct relationship between a country’s human rights and social entrepreneurship entry.

Please scroll down for article-it is on subsequent pagesWith 12,500 members from nearly 90 countries, INFORMS is the largest international association of operations research (O.R.) and analytics professionals and students. INFORMS provides unique networking and learning opportunities for individual professionals, and organizations of all types and sizes, to better understand and use O.R. and analytics tools and methods to transform strategic visions and achieve better outcomes. For more information on INFORMS, its publications, membership, or meetings visit http://www.informs.org A n industry's potential for interdependency among productive activities is one of the central concepts in strategic management. Although theoretical models have clarified how and why industry average profitability should peak at moderate levels of interdependency, the empirical evidence so far has not supported the inverted-U-shaped relationship. By developing a measure that is based on how frequently pieces of knowledge are used jointly in technological inventions, we find strong support that confirms the predicted relationship between interdependency and industry average profitability. We also find evidence supporting an inverted-Ushaped relationship between interdependency and firm profitability. Moreover, our measure captures how the potential in interdependency may change over time within an industry. The temporal variation allows us to correct omitted variable biases, which poses concerns that weren't raised in previous studies. The measure is created from more than 1.93 million technological patents that have been approved by the U.S. Patent and Trade Office between 1901 and 1996. Since patent data are available to the public, future studies can readily build on our measure of industries' potential for interdependency.

What is the career background of formal and informal entrepreneurs and does this influence their formalization decision? We employ the theory of planned behavior, social identity theory and embedded career capital framework to develop hypotheses on how the new venture formalization decision is dependent on the entrepreneur’s career history. We find that employment in a family business and in the private sector is related positively to founding a formal new venture. Furthermore, our results show that a career in the same industry as the new venture increases the likelihood of formalizing the venture. These findings emphasize the role of the career background in the entrepreneur’s formalization decision through building embedded-career capital, influencing the social identity and determining the attitude toward starting a formal versus informal new venture.

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