Advancing Theory in Entrepreneurship from the Lens of Operations Management

Abstract

Early writings in economics describe the entrepreneur's role in terms of bearing the uncertainty inherent in new undertakings. Much of the research published in the pages of Production and Operations Management deals with management under uncertainty. The shared concerns over the impacts of multiple types of uncertainty suggest that research on Operations Management (OM) can play a role in the development of theory in entrepreneurship. We discuss aspects of such a role from two perspectives. First, we consider several topics in the OM literature that have clear applications or parallels in entrepreneurship. These topics include innovation, the management of technology, new product development, flexibility, and hedging strategies. Understanding these topical connections should aid in the development of tools and applications central to the practice of entrepreneurship. On another level, when we consider how the approaches to many of these topics in OM are grounded in theory adapted from Operations Research and Economics we argue that these same roots can be used as starting points for the development of theory in entrepreneurship. As examples, we will argue that the theoretical bases supporting robust optimization, stochastic dynamic programming, and even Total Quality Management can also serve as foundations of theories about the roles, practice, and behaviors of entrepreneurs.

Quality management vision of future early career operations managers

“…It supports both exploiting capabilities with a continuous improvement (CI) focus and exploring capabilities with an innovative focus. Phan and Chambers (2013) recommended TQM as a philosophy that facilitates young OM to experimental problems with unknown solutions in order to establish quality. However, despite a great level of recognition for this philosophy, some researchers admit that there is no guarantee of TQM success as this is a heterogeneous philosophy with a lack of clear prescription (Mosadeghrad, 2015 andSabella et al, 2014).…”

The moderating role of organizational environments on the relationship between inventory leanness and venture survival in Chinese manufacturing

“…Nahmias and Olsen, 2015 find an optimal level of inventory that relies on the trade-off among multiple factors). Hence, our study contributes to the empirical research on the relationship between inventory leanness and venture survival for the first time, which interweaves closely with both operations management and entrepreneurship, a less stressed but timely field from the interdisciplinary perspective (Phan and Chambers, 2013).…”

Manufacturing capability and organizational performance: The role of entrepreneurial orientation

“…Specifically, there has been increasing interest in the intersection between OM and entrepreneurship due to the implicit connection between both fields, e.g. process intensiveness, the ability to innovate, the deployment of strategies across and within organizations, and the creation of value and sustainable competitive advantage (Handfield et al, 2009;Hsu et al, 2011;Kickul et al, 2011;Li et al, 2011;Krishnan, 2013;Phan and Chambers, 2013).…”

“…innovative posture, proactiveness, and risk-taking behaviour (Kreiser and Davis, 2012;Rauch et al, 2009). There are a number of explicit connection and opportunities for OM and EO (Kickul et al, 2011;Krishnan, 2013;Phan and Chambers, 2013). Entrepreneurial behaviour is acutely important in that it allows firms to leverage their manufacturing competencies and develop capabilities such as flexibility, agility, quality and efficiency (Handfield et al, 2009;Hsu et al, 2011).…”