InterICSB

It is my great pleasure, as editor, to launch The Third Inter-ICSB online publication, which has been an excellent way of networking professors and researchers of the International Council for Small Business community. In this editorial, I present the Inter-ICSB 2009-2010 process as well as try to give suggestions for the next round of activities.

The idea behind inter-conference activity was to improve the quality of selected conference papers to Hournal articles through peer review. Additional aim is to increase international cooperation and networking of ICSB members between conferences. The process tried to encourage especially younger researcher into publishing their research in quality Journals.

Additionally, we want to develop the skills of younger researchers in peer review activities, to give and receive positive feedback on their indidividual work. A networking of researchers in practice.

The First Inter-ICSB online publication was launched at the ICSB 2008 World Conference in Halifax, Canada, and the Second at the ICSB 2009 World Conference in Seoul, Korea. For the Third Inter-ICSB we selected the theme to be “New Venutre Creation and SME Growth” for there was a large number of papers presented in Seoul about those topics. A total of 17 quality papers were selected for the process. A few researchers had, already at this stage, a clear plan to approach certain Journal and, therefore, did not want to participant in the Inter-ICSB activities. A few decided to drop out for other reasons during the process. A number of potential authors never replied to my emails.

In the Inter-ICSB, each paper was reviewed twice by other Inter-ICSB participants. It was a blind review for the fact that the author(s) did not know who evaluated his/her/their paper. Participants knoew, however, the author(s) of the paper they were reviewing. After the first round of reviews the author(s) had time to develop the paper according to the review. The same applied after the second round of evaluation The final versions were then submitted to the editor.

A total of 6 “positive drop-outs” took place during the process. These papers are in the Journal review process to be published at a later stage. Additionally, we suggest that the authors of this ICSB online publication develop their papers further and approach Journals that are suitable for each particiular paper to be published. At the end of the process, a total of papers accepted ot participate in this Inter-ICSB online publication. I present here the schedule of the Inter-ICSB process:

Paper selection and participation accouncements (August – September 2009) =>
First round of evaluation (October 2009) =>
Paper development (November – December 2009) =>
Second round of evaluation (January – February 2010) =>
Finalising the paper and submitting it (March – May 2010) =>
Formatting the papers, foreward & editorial comments (June 2010) =>
Launching the Third Inter-ICSB publication in the ICSB World Conference in
Cincinnati, USA =>
Publishing the ICSB online publication (July 2010) =>

I learned, again, a lot during the process. An early start is a must. By this I mean that
everyone has busy schedules and other research engagements. Therefore, I tried to start the journey as early as possible. The process requires a lot of effort and energy from the editor.

Therefore, be warned if you are the next one! The editor(s) should try to keep the deadlines for reviews/developed papers might come in late. An active role towards the participants is needed in order ot keep the process alive and in schedule. A standard evaluation form was used for the process to assist the reviewers/authors. And finally, the selection of the most suitable reviewers for each individual paper requires some “Sherlock Holmes acts” as well for the papers, seemingly covering similar topic (“New Venture Creation and SME Growth”), they vary in teir disciplines, methodology, and geography. Another lession learned was the fact that many potential participants had provided the ICSB with an email address that nobody answered to after the ICSB 2009 World Conference. Therefore, they never replied to my emails and thus, were not participating in Inter-ICSB activities.

Finally, I would like to thank the participants fully for taking part of this exciting journey, which ends by this publication. You participants worked very hard to develop your individual paper but also helped your colleagues to improve their papers. And by doing so, you made my life so much easier. Therefore, thank you again for particiapting the Inter-ICSB process and I hope you enjoyed it as much as I did. And I hope that you made some valuable links in the process as a side effect. Additionally, I would like ot thank the International Office of the ICSB for their excellent editing and publishing work.

On behalf of the Inter-ICSB 2009-10; June 24, 2010 in Cincinnati, USA

Pasi Malinen
Professor, Turku School of Economics
Finland

Table of Contents

Business Idea Development in Entrepreneurship Education: A Semiotic Structuration
Apporach
by Seppo Luoto, Henri Hakala, Teemu Kautonen and Miia Lammi

Abstract:Teaching entrepreneurship traditionally focuses on transferring a set of pre determined skills to students and providing them with practical experiences about entrepreneurship. This paper proposes that developing the students’ business ideas in a dialectic space, without preset ideas about the skills needed for entrepreneurial action, might be more appropriate for students that have not yet taken any cognitive steps towards entrepreneurship. The approach developed in this paper is referred to as semiotic structuration, which is a combination of Giddens’ (1984) structuration theory and the ideas of signification and social semiotics. The social structuration approach is illustrated with a teaching experiment. This pedagogic approach appears promising as a practical tool for developing student business ideas in the early, pre-entrepreneurial stages of the entrepreneurial process. In particular, the process can potentially transform what start as outlines of quite traditional business ideas into potential opportunities by introducing new ways of thinking about the business idea.

Business Models in SME Context – Research, Implications and Way Forward
by Jussi Puhakainen and Pasi Malinen

Abstract: Ventures fail despite the presence of market opportunities, novel business ideas, adequate resources and talented entrepreneurs. One possible explanation is the fundamental model driving the business. However, little attention has been paid by researchers to the business model concept. During the years 2007-2008 there has been a noticeable increase in this interest. However, most of this recent research is either industry-specific or does not take an SME-focus. This paper discusses and illustrates what are the key implications of business models for both SME research and SME-development. The paper argues that since the “dot.com crash” the importance of business models has increased again. The paper looks at the business model concept from an SME-perspective. The paper illustrates the origins of the business model thinking and how it has evolved. It is strongly pointed out that the key concept, business model, has numerous definitions and purposes. We will also illustrate different business models briefly to show how most of the business models are rather static constructs. Recent literature, however, points out the importance of dynamic business models, i.e. that business modelling should be seen as a continuous process rather than creation of an artefact. This process should yield several sub-constructs rather than one static model. Business models are shown to be a problematical concept academically, but understood correctly, a valuable tool for SME-development. In the conclusions, we will draw together from the literature review, which are the key issues that SMEs and people working in the field of SME development – whether practitioners, educators, policy makers or researchers - should understand about business models.

Experiences, Competencies, Attitudes on the Market for Start‐Up Counseling –
Evidence from Germany
by Silke Tegtmeier, Reinhard Schulte, and Carsten Wille

Abstract: This study analyses the start-up counseling practice in Germany based on an online survey covering 2,146 start-up counselors. The results reveal that competences, experiences, and attitudes are very heterogeneous, and a standard frame of reference for counseling services concerning start-ups and new ventures is missing. Because of missing quality standards and the marginal spread of individual degrees with trademarked occupational titles, there is considerable ex ante risk in engaging a start-up counselor from a customer focus. Individual seals of counseling competence could serve as signalling instruments. The survey shows remarkable interest in certification programs allowing reliable quality distinction.

High Performing Entrepreneurs’ Personal Values, Compensation, and Firm
Performance
by David Tomczyk and Jung Hyun Lee

Abstract: We tested whether high-growth firms’ performance is related to the number of benefits offered or the values of the entrepreneur. Using data from the top 500 fastest growing entrepreneurial firms in America for 2007, we discovered that the entrepreneur’s values do not relate to the total number of benefits offered, meaning the mediation model does not exist and lending strength to the argument that entrepreneurs’ values greatly influence the success of a new venture. However, the total benefits offered also positively affects firm performance, meaning high performing employees may consider the benefits offered when choosing to work at a firm.

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Inter ICSB 2008-09

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Contents:

Developing and Evaluating Entrepreneurship Curricula: Lessons from a Start-up Simulation Pilot
by Silke Tegtmeier, Reinhard Schulte

This paper focuses on developing and testing an adequate technique for evaluating classroom entrepreneurship. Theory-based pre- and post-questionnaires have been developed and applied in a pilot start-up simulation (n=17). The simulation is an interactive, action-learning concept that focuses on planning a venture creation. Students work independently and make quasi-authentic experiences. Particularly, the evaluation refers to the impact on students’ entrepreneurial attitudes and intentions based on two common behavioural models: Ajzen’s “Theory of Planned Behavior” and the similar “Model of the Entrepreneurial Event”. This was accompanied by individual expectations and overall evaluations. The results of the pilot simulation show that the questionnaires are fruitful instruments for evaluating start-up simulations. The simulation helps to enhance a more realistic view of entrepreneurship and might motivate students to think in an entrepreneurial manner. Overall, the results of this evaluation show that the simulation sensitizes the participants and makes them aware of the complexity of a start-up.

Effects of Mandatory and Voluntary Simulation Game Seminars on Entrepreneurs’ and Students’ Learning
by Christian Lendner and Jutta Huebscher

We suggest entrepreneurship simulation seminars as a viable method to teach complex business interrelationships to entrepreneurs as well as students with different motivations of participation. We check the learning effects the simulation game seminar can bring about by analyzing a unique data set of 2,161 participants of 108 simulation game seminars collected in Germany. In doing this, we do not only look at the knowledge content common in entrepreneurship education, but we test for specific learning effects that should be achieved especially by simulation games as constructivist teaching method. Analysis of variance shows that the experienced learning effects are held to be professionally useful by the participants, even by those taking part mandatorily.

From Science to Business - Business Development Laboratory as a Developer of Science-Based New Ventures
by Vesa Hautala, Pasi Malinen, Markus Orava, Jussi Puhakainen

Innovations have been seen as the key factor for the EU economies to survive in international competition (see Lisbon agreement etc.). Consequently, there are many programmes and policies encouraging universities in participating in international, national and regional innovation systems. There are currently various schemes, programmes, assisting organisations and guidance services for new venture creation in Finland and in the Turku region. However, the Finnish paradox in innovation is, that while the country has actively invested in R&D&T, the output has been very modest (a few science-based companies, entrepreneurship scores low among educated Finns). Consequently, according to our recent study on industry-academia collaboration (Malinen et al. 2005) there are problems in the Finnish innovation system. The paper concentrates on two of the problems; there are too few new ideas and innovations coming from the university sector to the innovation pipeline and; firstly, growth and internationalisation of new innovations have been very moderate due to a limited number of potential innovations in the first place and, secondly, due to the limited understanding and capabilities for commercialising new ventures. In this context, the paper presents a case study of a recently founded Business Development Laboratory activity as a vehicle and promoter of increased flow of new sciencebased ventures into the innovation system. Business Development Laboratory integrates entrepreneurship teaching into hands-on training and development activities of sciencebased inventions/discoveries. In practise, business school students together with law school students, staff and needed external mentors assist the researcher(s) with science-based invention (IPR holder) in developing a business plan and the future business operations of the potential new venture. The outcome of this 4-month-exercise is usually a new start-up that continues its development in incubation or acceleration activities organised by the Turku Science Park. We use Business Development Laboratory as a case to illustrate how recent research findings in science-based businesses can be put in practise through entrepreneurship education. We acknowledge the fact that this is not the only solution to the limited number of new innovative companies but an excellent example of entrepreneurship teaching (action learning) and new science-based business assistance programme for researchers without much business education or background. The paper also offers suggestions for other organisations assisting science-based businesses. This is the practical contribution of the paper.

Innovation Projects of SMEs as Vehicles for Capability Building of University Students
by Helena Forsman

This paper provides an insight into integrating SMEs’ innovation projects to serve as learning challenges for university students. The aim of the paper is to examine the impact of SME-student collaboration on the innovation outcome of SMEs. Additionally, it explores the ways in which involvement in innovation projects of SMEs affects the innovation capabilities of students. The evidence demonstrates that student teams can provide a valuable contribution to SMEs in the front-end phase of the innovation process. The findings suggest that the learning experience along with the innovation process can be used as a vehicle for developing innovation capabilities. A process based on analysis and planning appears to create capabilities for acquisition and assimilation of knowledge, resulting in incremental inventions. Instead, a process that includes also discovery and imagination seems to result in inventions more radical in nature leading to a development challenge that demands capability building for transformation and exploitation of knowledge. The evidence outlines a virtuous process: The degree of richness of the learning process seems to affect the quality of developed capabilities, while the quality of the developed capabilities appears to affect the innovation outcome. On the contrary, the targeted innovation outcome affects the needed capabilities and directs the learning.

Realizing Entrepreneurship Education Through Curriculum Reform – Dilemmas and Prospects for the Future
by Jaana Seikkula-Leino

This article aims at presenting how entrepreneurship education has been realized through curriculum reform in Finnish comprehensive school. Moreover, there is an aim to analyze, though the study of realization, how dilemmas are involved in this process. (see also Seikkula-Leino 2006; 2007.) In order to study the realization process the research questions were: 1) What is the feeling of responsibility for implementing entrepreneurship education? 2) What kind of knowledge is there about entrepreneurship education? The survey was carried out in two parts (2005 – 2006) in 43 municipalities representing different educational and socioeconomic backgrounds. The questionnaires were sent to the representatives of education and municipalities’ economic life. The results indicate that the atmosphere of responsibility for implementing entrepreneurship education is developing rather well although teachers do not know how to implement entrepreneurship education. Dilemmas of realizing curriculum reform play a central role enhancing the changes of education. In the future we could develop 1) MacDonald’s (2003) partnership curriculum reform from the point of view of teachers’ learning (Shulman and Shulman 2004), 2) the way we take into consideration dilemmas in curriculum reforms, 3) meaningful and designed partnerships, having different partners involved even though they are autonomous and come from outside the educational sector, 4) enterprising culture, especially in the context where we want to develop entrepreneurship education, and 5) local curriculum work which takes into account the various starting points that various municipalities and regions have towards such work with perspective on diversification. The realization of these ideas may promote the development of entrepreneurship education according to the national and international, for example European Union, strategies.

Students as Consultants - Adding Value to the Small and Medium Enterprise
by Jacqueline Brodie, Tony Douglas and Susan Laing

The purpose of this paper is to document and critically examine an innovative undergraduate student consultancy module taught at the Centre for Entrepreneurship at Napier University, Edinburgh. The paper discusses how this module is delivered to students, the benefits this delivery mode offers students and how the module seeks to ensure value is also added to the Small to Medium Enterprises (SMEs) in which students carry out their projects. Feedback from students and staff are presented in the paper that note the areas of value and implications for best practice in entrepreneurial consultancy teaching are indicated on the basis of this including new product and service development and improved customer satisfaction.

The Coventry University model for Innovation, Entrepreneurship Education, Prosperity and Philanthropy
by Veronica Velo

This paper develops on the attempts that Higher Education Institutions worldwide have made in order to make their learning and teaching methods more industry-relevant and closer to employment opportunities either by corporations or Small and Medium Enterprises (SMEs). Universities and Business Schools have received funding and even sometimes developed their own ways at their own cost to enhance their attachments to reality more independently, with varied levels of success. Following a literature review capturing on the most recently published work in the domain of educational models to promote industryrelevant education, we present the example of the work having been performed at Coventry University with comments on the rationale and theoretical background supporting its development.

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