In this paper, we compared the availability of different types of financing sources to address the issue of capital availability to entrepreneurial propensity and we scrutinise the influence of business costs by utilising a new composite index using data from the World Bank’s Doing Business Database. The availability of three types of financing sources was analysed: traditional debt financing, venture capital financing, and informal investments. The study’s findings show that only informal investments have statistically significant influence on entrepreneurial propensity. Regulatory business costs were found to deter opportunity driven entrepreneurship, but had no impact on necessity entrepreneurship. Copyright Springer Science+Business Media, LLC 2007business cost, entrepreneurial activity, financing, informal investment, venture capital, G24, L26, M13,
In the service sector, technological innovation is typically dominated by suppliers, and hence involves external knowledge that can be easily acquired and imitated by competitors. However, innovation that can sustain superior performance in retail and hospitality firms tends to be internal and non-technical, involving business models. Building on the perspectives of the resource-based view and dynamic capability, this study aims to understand how industry turbulence in retail and hospitality affects the sustainable competitive advantage of the firms operating in these service industries. Based on a quantitative study of 214 retail and food services companies, our study has empirically demonstrated that firms operating in an industry with high turbulence have a higher probability of achieving a sustainable competitive advantage. Second, our findings establish that a firm’s business model innovation (BMI) activities partially mediate this positive relationship. This suggests that BMI plays a role in enhancing the firm’s ability to address the challenges of the present, as well as prepare itself to adapt to the industry evolution and revolution of the future. BMI not only influences the acquisition and application of external innovations, it also affects the generation of internal innovations.
In larger cities, we see a rising trend of more people working outside their traditional offices, and engaging in a practice called co-working by sharing office space. The public policy makers of innovation-driven economies, on the other hand, have been availing co-working spaces and related support to promote innovation and entrepreneurship. Despite the growing significance of this area, there has been limited research on the link between coworking and innovation among young firms. This research examines the relationship between coworking space and innovation, particularly business model innovation (BMI) for sustainable performance. Based on an empirical study of 258 young tenant firms operating in 13 coworking spaces in Singapore, we establish that the space creativity of coworking spaces is positively related to the BMI outcome of tenant firms. Tenant firms’ opportunity recognition and exploitation (ORE) process positively mediates the relationship between the space creativity of coworking spaces and the BMI outcome of tenant firms. While the social climate of the coworking space is found to have no direct effect on the BMI outcome of tenant firms, tenant firms’ ORE process positively mediates the relationship between the social climate of coworking spaces and the sustainable BMI outcome of tenant firms.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.