Path- and place-dependence of entrepreneurial ventures at times of war and conflict

Abstract

Studies have previously examined the path development of entrepreneurs within a penurious environment but what if their path encounters a conflict situation? Does it make the place even more resource-poor and subsequently squeeze out any remaining life from entrepreneurism? Utilising Isaksen's (2014) characterisation of path-dependence, we intend to examine how entrepreneurs negotiate their path through the 'double whammy' of penurious environment and conflict. Through an event-based approach examining the entrepreneurial paths of three wartime entrepreneurs, our study indicates that, whilst the immediate aftermath is chaos leading to limited path-extension and even path-exhaustion, once the initial fog is clear, entrepreneurial individuals find different ways to adapt, not only through path-extension, but also through path-renewal and path-creation. These opportunities are place-dependent, the recognition of which requires considerable local knowledge and resources acquired through experience and prior local investment as well as interdependent networks.

The co-creation of social ventures through bricolage, for the displaced, by the displaced

“…From the literature of displacement, it is apparent that displaced entrepreneurs face some significant resources challenges (Hobfoll, 2001), which could affect the extent to which the strategy of bricolage can be deployed. Unlike in other penurious environments, the entrepreneurs often face a rapid deterioration in their personal circumstances in the contexts of war and conflict (Cheung and Kwong, 2017). Many displaced people have suffered from personal possessions being stolen, confiscated or destroyed, premises illegally occupied, or resources simply left behind due to the immobile nature of property and other physical resources (Assaf and El-Fil, 2000), leaving them with very little physical capital at their disposal.…”

“…There are also other skills and types of knowledge that are hard to possess for the displaced individuals. Studies such as Cheung and Kwong (2017) have looked at how Chinese entrepreneurs in World War II survived and developed their business ventures under warfare and foreign occupation, and found localised bricolage to be crucial to such endeavours, relying heavily on the local market knowledge, norms and sectoral knowledge, as well as local networks, that the affected entrepreneurs possessed. However, while equally affected by war and conflict, the local resources and know-how that those who remained at home possessed are precisely what the displaced social entrepreneurs lacked in the host environments.…”

“…Different market demands, preferences, industry standards, norms, and operational processes could mean that their prior competencies may not be fully transferable (Duvander, 2001;Krahn et al, 2000). Furthermore, their lack of familiarity with the institutional context and regulatory environment could be the stumbling block (Cheung and Kwong, 2017;Krahn et al, 2000). Thus, if the displaced people are to develop social enterprises through bricolage, they may need to deploy different sets of resources and skills.…”

“…Literature on conflict and displacement also highlights a possible change in reliance on bricolage over time. For instance, Cheung and Kwong (2017) found that while all three of their cases engaged in local bricolage during World War II, only two out of three continued with such a strategy when peace resumed. Lang (2010), in a biography of a Chinese entrepreneur who started his first business during the war through collective bricolage, found that he gave up collective bricolage and opted for an optimisation resource mobilisation strategy predominantly utilising formal finance for expansion.…”

Moving beyond financial remittances: The evolution of diaspora policy in post-conflict economies

“…If the prevailing norm is to see entrepreneurship as inherently risky, and the risks associated with it outweigh the potential rewards then entrepreneurial activity will be hampered. As intentions profoundly impact entrepreneurial behaviour, understanding what drives entrepreneurship in adverse conditions, for example post-conflict economies, can assist in the design of (more) effective policies to support entrepreneurial endeavour (Bullough, Renko and Myatt, 2014;Cheung and Kwong, 2017).…”