This thesis explores the concept of entrepreneurship. It aims at answering the question: does the Austrian view provide a comprehensive framework for the analysis of entrepreneurship? For this purpose the problem is separated into three main objectives: to trace its development, to describe its foundations and to explain its principal features. In order to achieve these objectives, the study is divided into six chapters. Chapter 1 outlines the historical origins of the Austrian School. Chapter 2 describes the uniqueness of the individual as the foundation of Austrian economic theory. Chapter 3 explains how individuals act in a society. Chapter 4 covers the idea of the market as a process. Chapter 5 analyzes the role of the entrepreneur. Finally chapter 6 presents some case studies from the IT industry. The thesis concludes that the Austrian school provides a fully comprehensive framework for the development of the concept of entrepreneurship. / Economics / M.A. (Economics)

Despite the substantial amount of work undertaken on internationalization to-date, most has placed little emphasis on the temporal processes and dynamics of internationalization in shaping firm internationalization histories. This is reflected in several problem areas in theories and research regarding internationalization including accelerated internationalization, full and partial de-internationalization and use of multiple modes of entry at a point in time. This study addressed an important question: what factors and processes affect the way a firm???s pattern of internationalization changes over time? Although mainstream theories of internationalization and recent advances that link internationalization and entrepreneurship assume the importance of ???opportunity???, there is a paucity of research that that places ???opportunity??? as the core process in internationalization. By embracing time as a key dimension, this study reconceptualized internationalization as an entrepreneurial process: as the process of opportunity discovery, evaluation and exploitation in international markets. The research was undertaken in two phases. Phase 1 included a literature review covering the internationalization and entrepreneurship research streams. The discovery-evaluation-exploitation framework from entrepreneurship was used to identify relevant factors and explore eight case studies. By drawing on results from the exploratory research, an initial conceptual model and a set of propositions were developed. In Phase 2, fifteen case studies were theoretically sampled from a pool of small and medium enterprises from the knowledge and non-knowledge based industries in Australia. The data collection and analysis followed a process, event-driven approach to case study research involving the mapping of key sequences of events as well as within and cross case analysis. The results clarified the nature and pattern of opportunity discovery, evaluation and exploitation, and a number of factors that influence this process: the role of prior knowledge, network ties, serendipity, absorptive capacity, bricolage, the nature of uncertainty, feedback mechanisms and effectual versus causal reasoning. The findings also suggest the evolutionary process of firm development and internationalization and show that born globals may be a classification error. The results indicate that full and partial de-internationalization as well as the use of multiple modes of entry are influenced by the interconnectedness of opportunities across the founding, domestic and international context over time; the role of Knightian uncertainty which can push or pull the patterns in many directions and how firms rely on effectual reasoning. The results provide a better understanding of the basic mechanisms of internationalization. The academic contributions of this thesis include the extension of Jones and Coviello???s (2005) model and previous models by developing a dynamic, process model of internationalization that is capable of addressing the temporal and dynamic gaps in internationalization; the integration and reconciliation of extant theories of internationalization by understanding the role of mode of reasoning; and the establishment of ???opportunity-firm??? nexus as a suitable unit of analysis in internationalization and international entrepreneurship research. Finally, the managerial contributions include guidance for firms and entrepreneurs in terms of dealing with uncertainty and complexity in international markets using the appropriate mode of reasoning (i.e. effectual, non-predictive approach vs. causal, predictive approach) in the right context and circumstances.

Despite the substantial amount of work undertaken on internationalization to-date, most has placed little emphasis on the temporal processes and dynamics of internationalization in shaping firm internationalization histories. This is reflected in several problem areas in theories and research regarding internationalization including accelerated internationalization, full and partial de-internationalization and use of multiple modes of entry at a point in time. This study addressed an important question: what factors and processes affect the way a firm???s pattern of internationalization changes over time? Although mainstream theories of internationalization and recent advances that link internationalization and entrepreneurship assume the importance of ???opportunity???, there is a paucity of research that that places ???opportunity??? as the core process in internationalization. By embracing time as a key dimension, this study reconceptualized internationalization as an entrepreneurial process: as the process of opportunity discovery, evaluation and exploitation in international markets. The research was undertaken in two phases. Phase 1 included a literature review covering the internationalization and entrepreneurship research streams. The discovery-evaluation-exploitation framework from entrepreneurship was used to identify relevant factors and explore eight case studies. By drawing on results from the exploratory research, an initial conceptual model and a set of propositions were developed. In Phase 2, fifteen case studies were theoretically sampled from a pool of small and medium enterprises from the knowledge and non-knowledge based industries in Australia. The data collection and analysis followed a process, event-driven approach to case study research involving the mapping of key sequences of events as well as within and cross case analysis. The results clarified the nature and pattern of opportunity discovery, evaluation and exploitation, and a number of factors that influence this process: the role of prior knowledge, network ties, serendipity, absorptive capacity, bricolage, the nature of uncertainty, feedback mechanisms and effectual versus causal reasoning. The findings also suggest the evolutionary process of firm development and internationalization and show that born globals may be a classification error. The results indicate that full and partial de-internationalization as well as the use of multiple modes of entry are influenced by the interconnectedness of opportunities across the founding, domestic and international context over time; the role of Knightian uncertainty which can push or pull the patterns in many directions and how firms rely on effectual reasoning. The results provide a better understanding of the basic mechanisms of internationalization. The academic contributions of this thesis include the extension of Jones and Coviello???s (2005) model and previous models by developing a dynamic, process model of internationalization that is capable of addressing the temporal and dynamic gaps in internationalization; the integration and reconciliation of extant theories of internationalization by understanding the role of mode of reasoning; and the establishment of ???opportunity-firm??? nexus as a suitable unit of analysis in internationalization and international entrepreneurship research. Finally, the managerial contributions include guidance for firms and entrepreneurs in terms of dealing with uncertainty and complexity in international markets using the appropriate mode of reasoning (i.e. effectual, non-predictive approach vs. causal, predictive approach) in the right context and circumstances.

This thesis explores the concept of entrepreneurship. It aims at answering the question: does the Austrian view provide a comprehensive framework for the analysis of entrepreneurship? For this purpose the problem is separated into three main objectives: to trace its development, to describe its foundations and to explain its principal features. In order to achieve these objectives, the study is divided into six chapters. Chapter 1 outlines the historical origins of the Austrian School. Chapter 2 describes the uniqueness of the individual as the foundation of Austrian economic theory. Chapter 3 explains how individuals act in a society. Chapter 4 covers the idea of the market as a process. Chapter 5 analyzes the role of the entrepreneur. Finally chapter 6 presents some case studies from the IT industry. The thesis concludes that the Austrian school provides a fully comprehensive framework for the development of the concept of entrepreneurship. / Economics / M.A. (Economics)

The present study examined the relationship between entrepreneurial competencies and business success in the context of SMEs in Australia and Malaysia. A “mixed-method” approach was adopted whereby two studies were conducted in a sequential fashion (Study 1 and Study 2). In Study 1, a qualitative method was adopted in which individual interviews were conducted with 20 entrepreneurs – 10 from Australia and 10 from Malaysia – who operated SMEs in the manufacturing and service sectors. The aim was to elicit behaviours that delineate competencies, and thus enable the identification of entrepreneurial competencies that are context-specific and of relevance in the current business environment. A content analysis of the interview data identified 12 competency domains: Strategic; Commitment; Conceptual; Opportunity; Organising and Leading; Relationship; Learning; Personal; Technical; Ethical; Social Responsibility; and Familism. Importantly, nine of these categories were well represented in existing models of entrepreneurial competencies, thereby providing evidence that these models offer a reasonable degree of cross-cultural generalisability. However, three new categories emerged, namely, Ethical, Social Responsibility, and Familism (broadly concerned with the role of “family” in building business success). There was evidence for Ethical and Social Responsibility competencies in both the Australian and Malaysian data, whereas Familism was specific to the Malaysian data and may well reflect the collectivist orientation of Malaysian culture. The identification of these additional categories of entrepreneurial competencies suggests that the existing models may need to be revised to further enhance their applicability to the measurement of entrepreneurial competencies in different cultural contexts. Study 2 Part 1 proceeded with validating the model of entrepreneurial competencies. This involved determining the psychometric rigour of the model and establishing the psychometric properties of all dependent variables (measures of business success) and covariates (i.e., business environment and entrepreneurs’ cultural orientations) using a sample of 391 SME entrepreneurs (179 Australians and 212 Malaysians). The two best fit models of entrepreneurial competencies – the “Comprehensive” model and the “Parsimonious” model – are fully described. The Comprehensive model revealed that all twelve competency areas were perceived as relevant to SME outcomes by entrepreneurs in Australia and Malaysia, even though the behaviours that defined the Organising and Leading competency domain, as well as the Familism competency domain (later renamed “Supporting and Cooperating” for Australia due to the omission of items related to “family”) were somewhat different. The other 10 competency areas identified in the Comprehensive model appeared to be invariant across countries. On the other hand, the Parsimonious model of entrepreneurial competencies showed that, although some competency areas were universal in nature (i.e., Conceptual, Opportunity, Learning, and Ethical), others were country specific (i.e., Relationship, Social Responsibility, and Familism). It was argued that the differences could be traced to cultural variations between the countries, in particular the extent of Individualism versus Collectivism. Study 2 Part 2 tested the causal pathway between entrepreneurial competencies and business success and the possible influence of covariates using a structural equation modeling (SEM) procedure. The results showed that entrepreneurial competencies were strong predictors of business success in SMEs for both Australia and Malaysia. It was also found that both Benign and Stable business environments were significantly related to business success in Australia whereas only a Stable environment was significantly linked with success in Malaysia. Moreover, environmental variables showed a less strong path to success than competencies. When the Parsimonious model of entrepreneurial competencies was used in the model estimation, the association between entrepreneurial competencies and business success was more strongly evident in Hostile and Dynamic environments than in more Benign and Stable environments (for both Australia and Malaysia). The results also showed that cultural orientations (both Collectivism and Tolerance for Ambiguity) have positive effects on entrepreneurial competencies in Malaysia but not in Australia (i.e., Individualism and Tolerance for Ambiguity). The effect of education on entrepreneurial competencies was mixed; significant for only the Comprehensive model for Australia but significant for both Comprehensive and Parsimonious models for Malaysia. The effects of training before and after start up, as well as previous work experience on entrepreneurial competencies appeared to be nonsignificant in both contexts. On the basis of the results of the thesis, it was concluded that self-reported entrepreneurial competencies are predictive of self-reports of success in both Malaysian and Australian SMEs. The models that describe success in both countries are consistent with existing models of entrepreneurial competency although differences in the behaviours that define a domain are evidenced between countries as are the domains that successfully define a parsimonious model in each country. These results are interpreted as supporting a training agenda that identifies entrepreneurial skills as a critical pre-requisite to business success for SMEs. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1297548 / Thesis (Ph.D.) -- University of Adelaide, Adelaide Graduate School of Business, 2007

The present study examined the relationship between entrepreneurial competencies and business success in the context of SMEs in Australia and Malaysia. A “mixed-method” approach was adopted whereby two studies were conducted in a sequential fashion (Study 1 and Study 2). In Study 1, a qualitative method was adopted in which individual interviews were conducted with 20 entrepreneurs – 10 from Australia and 10 from Malaysia – who operated SMEs in the manufacturing and service sectors. The aim was to elicit behaviours that delineate competencies, and thus enable the identification of entrepreneurial competencies that are context-specific and of relevance in the current business environment. A content analysis of the interview data identified 12 competency domains: Strategic; Commitment; Conceptual; Opportunity; Organising and Leading; Relationship; Learning; Personal; Technical; Ethical; Social Responsibility; and Familism. Importantly, nine of these categories were well represented in existing models of entrepreneurial competencies, thereby providing evidence that these models offer a reasonable degree of cross-cultural generalisability. However, three new categories emerged, namely, Ethical, Social Responsibility, and Familism (broadly concerned with the role of “family” in building business success). There was evidence for Ethical and Social Responsibility competencies in both the Australian and Malaysian data, whereas Familism was specific to the Malaysian data and may well reflect the collectivist orientation of Malaysian culture. The identification of these additional categories of entrepreneurial competencies suggests that the existing models may need to be revised to further enhance their applicability to the measurement of entrepreneurial competencies in different cultural contexts. Study 2 Part 1 proceeded with validating the model of entrepreneurial competencies. This involved determining the psychometric rigour of the model and establishing the psychometric properties of all dependent variables (measures of business success) and covariates (i.e., business environment and entrepreneurs’ cultural orientations) using a sample of 391 SME entrepreneurs (179 Australians and 212 Malaysians). The two best fit models of entrepreneurial competencies – the “Comprehensive” model and the “Parsimonious” model – are fully described. The Comprehensive model revealed that all twelve competency areas were perceived as relevant to SME outcomes by entrepreneurs in Australia and Malaysia, even though the behaviours that defined the Organising and Leading competency domain, as well as the Familism competency domain (later renamed “Supporting and Cooperating” for Australia due to the omission of items related to “family”) were somewhat different. The other 10 competency areas identified in the Comprehensive model appeared to be invariant across countries. On the other hand, the Parsimonious model of entrepreneurial competencies showed that, although some competency areas were universal in nature (i.e., Conceptual, Opportunity, Learning, and Ethical), others were country specific (i.e., Relationship, Social Responsibility, and Familism). It was argued that the differences could be traced to cultural variations between the countries, in particular the extent of Individualism versus Collectivism. Study 2 Part 2 tested the causal pathway between entrepreneurial competencies and business success and the possible influence of covariates using a structural equation modeling (SEM) procedure. The results showed that entrepreneurial competencies were strong predictors of business success in SMEs for both Australia and Malaysia. It was also found that both Benign and Stable business environments were significantly related to business success in Australia whereas only a Stable environment was significantly linked with success in Malaysia. Moreover, environmental variables showed a less strong path to success than competencies. When the Parsimonious model of entrepreneurial competencies was used in the model estimation, the association between entrepreneurial competencies and business success was more strongly evident in Hostile and Dynamic environments than in more Benign and Stable environments (for both Australia and Malaysia). The results also showed that cultural orientations (both Collectivism and Tolerance for Ambiguity) have positive effects on entrepreneurial competencies in Malaysia but not in Australia (i.e., Individualism and Tolerance for Ambiguity). The effect of education on entrepreneurial competencies was mixed; significant for only the Comprehensive model for Australia but significant for both Comprehensive and Parsimonious models for Malaysia. The effects of training before and after start up, as well as previous work experience on entrepreneurial competencies appeared to be nonsignificant in both contexts. On the basis of the results of the thesis, it was concluded that self-reported entrepreneurial competencies are predictive of self-reports of success in both Malaysian and Australian SMEs. The models that describe success in both countries are consistent with existing models of entrepreneurial competency although differences in the behaviours that define a domain are evidenced between countries as are the domains that successfully define a parsimonious model in each country. These results are interpreted as supporting a training agenda that identifies entrepreneurial skills as a critical pre-requisite to business success for SMEs. / http://proxy.library.adelaide.edu.au/login?url= http://library.adelaide.edu.au/cgi-bin/Pwebrecon.cgi?BBID=1297548 / Thesis (Ph.D.) -- University of Adelaide, Adelaide Graduate School of Business, 2007

Moral Hazard and the Agency Costs thereof have long been accepted arguments in venture finance theory and have therefore long been accepted shortcomings in the venture capitalist / entrepreneur relationship. In psychological experiments ??? including economic ??? it has been shown that human beings prefer to act in a reciprocal manner that reduces any inequity in a relationship. Humans who expect to receive an unfair and inequitable position in a relationship, will take steps to rectify that position. Specifically, if a venture capitalist expects the entrepreneur to unfairly extract private benefits from the investee company post investment by the venture capitalist, then he or she will impose costly controls and monitoring mechanisms in place to prevent that. All relationships that impose controls and monitoring mechanisms are inefficient, as opposed to Advising the investee which draws upon the skills of the venture capitalist and is generally efficient. The venture capital industry is comprised of intelligent and professional people who can recognise inefficiency easily. Indeed, this is how they make poorly managed companies into profitable trade sales or IPO???s. The online survey completed for this thesis poses questions that attempt to show that venture capitalists and entrepreneurs are not locked in an antagonistic relationship where each merely acts in a self interested way. This thesis concludes that venture capitalists and entrepreneurs do work in a reciprocal relationship recognising the substantial efficiency gains to be made by doing so.

Moral Hazard and the Agency Costs thereof have long been accepted arguments in venture finance theory and have therefore long been accepted shortcomings in the venture capitalist / entrepreneur relationship. In psychological experiments ??? including economic ??? it has been shown that human beings prefer to act in a reciprocal manner that reduces any inequity in a relationship. Humans who expect to receive an unfair and inequitable position in a relationship, will take steps to rectify that position. Specifically, if a venture capitalist expects the entrepreneur to unfairly extract private benefits from the investee company post investment by the venture capitalist, then he or she will impose costly controls and monitoring mechanisms in place to prevent that. All relationships that impose controls and monitoring mechanisms are inefficient, as opposed to Advising the investee which draws upon the skills of the venture capitalist and is generally efficient. The venture capital industry is comprised of intelligent and professional people who can recognise inefficiency easily. Indeed, this is how they make poorly managed companies into profitable trade sales or IPO???s. The online survey completed for this thesis poses questions that attempt to show that venture capitalists and entrepreneurs are not locked in an antagonistic relationship where each merely acts in a self interested way. This thesis concludes that venture capitalists and entrepreneurs do work in a reciprocal relationship recognising the substantial efficiency gains to be made by doing so.