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Purpose This study aims to understand the necessity of entrepreneurship in a poor emerging economy, where the supportive entrepreneurial ecosystem is not in place. Design/methodology/approach In the years 2015 and 2019, this study survey first-time small-scale emerging entrepreneurs within the new entrepreneurial ecosystem in Cuba. Findings The results suggest that the entrepreneurial environment has deteriorated and declined over this period. The study contributes to the understanding of high-vulnerability regions and poverty conditions as found in some emerging economies. This study contributes to the wider literature on policies that inhibit or stimulate necessity entrepreneurship in emerging economies. Originality/value The study responds to calls for a better understanding by offering new insights into necessity entrepreneurship in challenging contexts under poverty and crisis; and the ways for recovery. It provides insights into the underexplored Cuban economy.

PurposeThis study aims to present multi-layered embeddedness and explore the main and interaction effects of political embeddedness on the performance of private enterprises in China. This study tests multi-layered embeddedness through interaction effects between three layers, namely, political, territorial and inter-firm embeddedness. Political embeddedness is related at the personal and the firm levels.Design/methodology/approachThe authors used secondary data of four non-panel waves (2002, 2008, 2010 and 2016) of large samples having identical questions based on the Chinese private enterprises’ survey. The accumulated number of business owners’ responses is a total of 10,686.FindingsThe main effects of each of the layers of embeddedness showed a positive influence on enterprise performance consistently and unchanged over time which fits the Chinese Guanxi regardless of the immense macro-economic transition. However, unexpectedly some interactions showed negative significant effects on performance.Practical implicationsFirst, business owners should be aware of the specific contribution to the performance of political embeddedness at both the firm level and the personal level. Second, the pursuit of exercising simultaneously several layers of embeddedness may be detrimental to company performance. This study provides generalizable lessons regarding different embeddedness layers beyond the context of China’s transition economy.Originality/valueFirst, the authors extend political embeddedness to the firm level whilst in previous research this construct had been mostly related to the personal level. Second, building on the resource-based view and redundant resources the authors present the disadvantage of “over-embeddedness” as related to multi-layered embeddedness which has been understudied.

PurposeThis study explored the mediating effect of political embeddedness on the relationship between gender and performance of private enterprises in the emerging economy of China. Political embeddedness is examined in terms of personal characteristics of owners and their firm.Design/methodology/approachSecondary data were collected from the Chinese Private Enterprises Survey for the years 2002, 2006, 2014 and 2016 using responses to identical questions. Tobit models were implemented to examine hypotheses related to the gender gap. A bootstrapping approach was applied to examine hypotheses related to mediation through political embeddedness.FindingsThe gender effect on enterprise performance was found to be partially mediated by political embeddedness at the personal level and even more strongly by political embeddedness at the firm level, which is beyond the well-known mediation effect of bank loans.Research limitations/implicationsThe Chinese sample, in which guanxi plays a significant role with respect to women-led firms, may limit the generalizability of the findings to other emerging economies.Practical implicationsGiven the mediating effects on firm performance of political embeddedness at the personal and firm levels, women business owners in China should pursue political involvement, possibly with the support of policymakers and mentors.Originality/valueThe relationship between businesswomen and political embeddedness is underexplored. This study innovates by applying the gender lens to the notion of political embeddedness and extending the construct of personal political embeddedness to the firm level.

PurposeThis study aims to examine the extent to which board size, the use of power by venture capital investors and entrepreneurs’ interpersonal tactics such as persuasion to sway board decisions, influence the long-term survival of start-ups.Design/methodology/approachThis study used a mixed-methods approach. The quantitative part is based on data collected from 179 chief executive officers (CEOs) of high-tech start-ups community financed by venture capitalists (VCs) in Israel of which 59 did not survive. To achieve a better understanding of these findings, semi-structured interviews with 12 entrepreneurs were conducted.FindingsSmaller boards were positively associated with venture survival. The use of power by VC investors positively influenced start-up survival. CEO persuasion had a negative effect on venture survival; however, its interaction with board size suggests that it had a lesser effect on very small boards.Practical implicationsAlthough investors’ control over decision-making contributes to long-term survival, entrepreneurs should be aware of the possible detrimental effects of exercising a high level of persuasion in board processes. The findings also suggest that a small board size is preferable for start-up survival.Originality/valueExploring the effect of board processes on venture survival is considered complex. A unique sample of high-technology start-ups consisting of both surviving and failed start-ups was analyzed to explore the effects of persuasion and power in board processes.

OECD data show that in some countries the earnings of workers with tertiary vocational education are lower than those of workers with secondary education, in particular for the 25–34 years age grou...

Purpose To better understand the emergence of small-scale entrepreneurial firms in the under-researched transition economy of Cuba. Design/methodology/approach Given the scarcity of reliable publicly available information and restrictions on private data collection in Cuba, in-depth interviews were conducted with a panel of small-scale entrepreneurs at three different points in time. Evolutions are analyzed over this period. Findings Family can overcome institutional constraints by helping the entrepreneur deal with market and social obstacles. Despite the absence of a supportive entrepreneurial ecosystem, these new entrepreneurs and their families have been able to transform longstanding passive attitudes into positive steps to set up new small-scale ventures in a country facing unprecedented internal and external challenges. Originality/value A new conceptual model of family support for entrepreneurship in transition economies is presented. The findings lend weight to institutional theory on overcoming constraints in emerging markets and extend the theory of family entrepreneurship to new transition economies.

We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.

This paper discovers early indicators of very long term performance of high technology new ventures (HTNVs). We tracked the progress of a sample of 142 HTNVs founded at the Israeli government s Technology Incubator Program (ITIP) in the 1990s through 2001, 2004, 2010 and 2018. The results demonstrate a surprisingly strong effect of early sales traction, signifying achievement of early product/market fit in a HTNV s earliest years, on long term (a decade) and very long term (two decades) survival, and also on survival-at-scale (i.e. relatively high sales levels). In our sample, HTNVs that made sales in each of their earliest years reduced the hazard of closure, over a 20 year period, by around ninety per cent compared with HTNVs who made no sales in their earliest years. It also significantly increased the chances of survival-at-scale among those HTNVs that survived over the long or very long term. In contrast, the effect of early external investment on survival was positive in the short to medium term but then faded over time. We propose an underlying mechanism that would explain the surprising finding of distal effects of early product/market fit, that builds on imprinting theory, resourcing theory and the concept of market-based assets. peer-reviewed 2021-04-17

This paper explores the development of local small businesses in rural peripheral regions compared to businesses in urban settings, and the impact of the local business' location and level of embeddedness on its growth, measured by the number of employees. The study was conducted using a mixed-method sequential methodology, with a quantitative survey of 613 small rural and urban businesses in Israel, followed by 13 in-depth interviews with rural entrepreneurs who were selected from the quantitative sample. This study found an advantage of double-layered network embeddedness employed by rural business owners, i.e. both local and outside of the region, for the growth of small and medium sized enterprises (SMEs). The contribution of this study is expansion of the concept of extra-local embeddedness to enhance growth of SMEs in rural-peripheral regions. The main theoretical contribution of this paper is the description of double-layered network embeddedness employed by rural business owners, who are embedded in local and regional networks, alongside extra-regional and national (extra-local) networks, in an attempt to overcome some of the distance-related obstacles of their location. Furthermore, our findings suggest that this type of embeddedness, as well as the embeddedness of family members in small businesses, can enhance the growth potential of the local businesses, as does the location of the business in the owner's home or in its close proximity. We propose a spatial model of the embeddedness of small rural businesses at various levels of proximity.

This study focuses on changes over time in inter-firm cooperation of an export-oriented regional cluster within a Latin American emerging economy. The study was conducted in the Chilean salmon industry. A longitudinal study, collecting primary data from managers, was conducted over ten years. Unexpectedly, findings revealed that as the cluster matured, firm's members tended towards more individual behaviour than strategic inter-firm cooperation though, they continued to cooperate in more basic cost-reducing strategies. This result extends the industry cluster literature and provides insights into the cooperative and competitive changes that take place over time.

This introductory article presents an outline of the papers accepted for this special issue. The Guest Editors provide an overview of the work within industrial marketing where synthesis between economic geography and industrial marketing literature has occurred. A discussion of the most synthesised areas of economic geography is advanced and each article is then discussed, compared and contrasted with other articles in the special issue and with articles within industrial marketing that have previously synthesized concepts drawn from economic geography. Within this narrative, the Guest Editor’s propose an agenda for future interdisciplinary research at what they refer to as the ‘nexus of interest’ between the disciplines.

This study explores differentiating factors in employment growth between young small and medium-sized enterprises in rural regions and their application in developing economies. We applied a mixed-method approach, including a survey of 155 new ventures in Israel, an economy whose rural regions exhibit similarities to those of less developed countries, and 10 in-depth interviews with academics and practitioners. The results suggest that the economic development of rural areas through the cultivation of entrepreneurship should be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.

Motivation of older adults toward entrepreneurship has been underexplored. Previous research points to diverse results relating to the effect of pull and push factors of motivation on older adults’ entrepreneurial intentions. In this chapter, we studied older adults’ motivation to become entrepreneurs and to what extent a tailor-made training program would enhance their motivation. We interviewed seven older adult entrepreneurs who participated in our tailor-made training program. Our findings indicate that the training program assist participants to construct entrepreneurial intentions, leverage their motivations, and foster entrepreneurial activity. Older adults’ motivation to become entrepreneurs is found to be associated with a mix of pull and push motivations with focus on pull factors such as a desire to fulfill a dream, a desire to be independent, a challenge and a desire to extend professional capabilities, and staying active. This study makes both a theoretical contribution and hands-on implications regarding the important benefits of training programs designed to enhance older adults’ entrepreneurial motivation.

This study reviews and explores the salmon farming industry management in an emerging economy context, in the light of environmental responsibility, restorative justice and moral reengagement. Strategic information were gathered, performing in-depth interviews with CEOs and other key senior executives, to analyze the managerial behavior regarding environmental care and moral engagement to industry production standards. The results reveal issues related to firms and government roles on setting industry standards and enforcing them. Firms required to be perceived as renewed in order to receive help from the government and convince the market on their IPOs. Government lack of technical strength and capacity to reestablish order forced the industry firms association to propose a new regulatory standard. But this new order seems not to be satisfactory and this industry will continue to be on the verge of a crisis.

Purpose– This study aims to focus on how companies operating in international food commodity markets can improve their long-term competitiveness and profitability upon financial pressure. Management can choose between generic strategies of either cost leadership or enhanced value adding by differentiation and innovative marketing strategies. The aim of the paper is to highlight key findings from a case study perspective.Design/methodology/approach– The research is set within the farmed salmon sector in the world’s second largest producing country, Chile, which is also a fast growing emerging economy in Latin America. Semi-structured personal interviews were conducted with General Managers of this global industry.Findings– Unexpectedly, our findings show that executives preferred competitive strategy of cost reduction rather than differentiation. Based on previous research, we recommend managers of individual firms and trade associations to play down commoditisation and to pursue differentiation strategies with particular attention to emergent environmental attributes.Originality/value– Practitioners from Latin America may learn on empirical considerations of international marketing strategies taking this competitive global industry as an example. An overall cost leadership strategy is not sufficient in a mature industry, and customer-oriented strategies are needed more than production-oriented strategies. Clustered firms are recommended to benefit from differentiation strategies with particular attention to emergent environmental attributes.

This research explores the relationship between geographic proximity and the building of social capital and inter-firm cooperation in strategic marketing. By emphasizing social interactions and the building of social capital, we extend the research on industry clusters beyond traditional economic perspectives and factors motivating cooperation between firms. The empirical study is based on a survey of 90 senior managers from three natural resources-based industries (two non-clustered and one clustered) in Chile. The results show that managers in clustered versus non-clustered industries differ in terms of the perceived value of location, the perceived value of building social capital, their involvement in activities that build social capital, their attitudes toward cooperative marketing, their history of involvement in cooperative marketing activities, and their intentions for engaging in cooperative marketing activities in the future. Trade associations in clustered versus non-clustered industries play different roles in regard to creating social capital. The article concludes by discussing the implications of these findings for researchers, managers and policy makers.

This study explores common and different aspects of sustainability, in terms of survival and growth, between social and commercial ventures. The effects of nonhuman factors between a sample of social ventures and a sample of commercial ventures taken from the same environment in Israel were compared. Social ventures showed higher likelihood to survive and grow. Findings exhibit interesting similarities between the two types of entrepreneurship in regard to the significant effect of early market or community acceptance and the non-effect of early funding diversity on venture long-term sustainability. Further research is suggested to substantiate these findings and to explore other aspects of comparison between social and commercial entrepreneurship.

This paper reports the findings of the first academic study in Latin America, and one of the few in any emerging economy, to explore entrepreneurial perceptions and activity in peripheral geographic locations. A survey of experts included 139 respondents from three peripheral regions and two core regions in Chile. A key finding is that those located at the periphery perceived critical entrepreneurial resources and access to markets less favorably than their counterparts at the core, but surprisingly, they perceived greater business opportunity in their area. A further survey of 2,200 respondents concerning actual entrepreneurial activities among the total adult population revealed no differences between peripheral and core regions. This study revives the debate about specific regional policies for fostering the growth of local business, and the entrepreneurial framework conditions required at the regional level in emerging economies.

PurposeThis paper aims to focus on the perceived role of clusters in inter‐firm cooperation and social networks.Design/methodology/approachThe study was carried out in a region of Latin America where limited research has been conducted in terms of inter‐firm relationships. Managers from three key natural resources‐based industries in Chile participated in the survey; one of these industries constituted a well‐defined cluster whereas the other two did not. The survey assessed managers' perceptions of the benefits and opportunities of inter‐firm cooperation in strategic marketing activities.FindingsResults support the advantages of clusters. Managers of firms which are part of clustered industries tend to perceive more benefits and opportunities for inter‐firm co‐operation in marketing activities. Additionally, significant differences between clustered and non‐clustered industries in terms of their co‐operation behavior and objectives were found.Research limitations/implicationsThe findings shed light on strategies for the enhancement of inter‐firm cooperation in marketing, of particular value for marketers in small‐and‐medium sized enterprises. The paper suggests establishing new clusters and promoting more regional clusters policies since clustering seems to provide better and positive inter‐firm interaction leading to cooperation.Practical implicationsThere are lessons to be learned at national and regional levels for Latin American and emerging economies fostering new industry cluster policies.Originality/valueClustered firms and industries may result in more innovative marketing strategies at both local and international levels than non‐clustered firms. The authors encourage regional development bodies to foster more cooperation among firms and trade associations.

Governmental policies tend to support and boost entrepreneurship in peripheral regions in many countries. This research revives the debate about specific regional policies designed to foster local new business creation, and the entrepreneurial framework conditions needed at the regional level for emerging regions such as Latin America. We applied one of the Global Entrepreneurship Monitor’s methodologies, the National Experts Survey, to a sample of 695 key informants in Chile at eight regions of which six are classified as peripheral. Using non-parametric statistics we compared the differences between peripheral and core regions. The main results indicate that peripherally located entrepreneurship experts perceive their regions as in a worse position than centrally located experts in terms of finance access and physical infrastructure. On the other hand, the results indicate that peripheral entrepreneurship experts detect more market dynamism in their regions and surprisingly perceive general policy and government programs as supporting entrepreneurship although the Chilean government had not promoted many regional policies.

The inherent conflicts between venture capital investors and entrepreneurs are reflected in perception of trust and causes for strategic reorientation.

The effect of founder characteristics in attracting external investment and enhancing survival of new high-technology ventures is explored using human capital theory and signalling theory. We test the effect of founder characteristics on external investment in and survival of new high-technology ventures by tracking a random sample of 193 high-technology start-ups, all participants in the Israeli Technology Incubator Program. Founder's business management expertise and academic status attracted external investment, but founder's general technological expertise did not. Founder's business management expertise and general technological expertise positively affected venture survival, but founder's academic status did not. Possible implications for entrepreneurs, investors, policy and further research are discussed.

This study looks at the factors that influence the development of marketing co-operation among cluster-based firms. It examines data from SMEs operating within the salmon farming industry in two different regions: Scotland and Chile. Analyses indicate that informal social networks help explain the observed relationship between geographical proximity and inter-firm marketing co-operation, especially for firms located in peripheral rural communities. A theoretical model is proposed for further research in the field that, until recently, has been traditionally analysed only by economists. Practical implications are suggested for practitioners and policymakers.

Purpose – The purpose of this paper is to is focus on the role of geographic co‐location in the development of firm‐level marketing externalities.Design/methodology/approach – A mail survey and quantitative analysis were used to examine the effect of co‐location on externalities. Fast growing salmon farming clusters in Scotland and Chile were chosen where most environmental variables could be controlled. These clusters enjoy business to business marketing practices.Findings – Respondents indicated several externalities yielded by co‐location such as buying intermediate goods, enhanced reputation and joint participation in trade fairs. However, other externalities such as providing access to new technology and referrals to other firms were only slightly indicated useful as produced by co‐location.Practical implications – Practitioners in the salmon farming industry are suggested to pursue inter‐cluster cooperation.Originality/value – While previous findings are conflicting, the contribution of this study w...

This research examines factors that influence the development of marketing cooperation among cluster-based firms in different regions in the world. Theorists have consistently demonstrated the role and importance of economic externalities, such as knowledge spillovers, within industrial clusters. Less research attention has been paid to the investigation of marketing-based externalities, though it has been suggested that these may also accrue from geographical agglomeration. The study focus is on the development of joint marketing activities between firms operating in a single industry sector, located in close proximity. The results suggest that social networking is important in facilitating inter-firm cooperation in marketing activities. The study also explores whether the levels of inter-firm cooperation differs between countries with distinctly different levels of social collectivism. Interestingly, this study finds few significant differences in marketing cooperation among cluster-based firms from Scotland and Chile.

Regional clusters have been the basis for global competitiveness in smaller countries that may lack the domestic market necessary for growth, and for companies in developing economies with weaker infrastructure and limited supporting industries. For this reason, this study explores more specifically the development of co-marketing activities and cooperation between firms operating in innovative resources-based clusters of the salmon farming industry in two leader producers' countries: Scotland and Chile. The results suggest that social networking activities enhance inter-firm co-operation. This may yield marketing externalities and create new cooperative long-term competitive strategies among firms.

This study note explores the major causes that stimulate Radical Strategic Change (RSC) in Israeli high technology new ventures. It explores the factors that make RSC successful in these ventures, based on the Resource-Based-View (RBV). A multiple case study methodology was applied on four Israeli-based start-up companies that experienced both an un-favorable and a favorable RSC, sequentially. Our findings suggest that the level of resources was the major impetus for these RSCs, and that the alignment of resources to the environment yielded the desired performance goals for these venture. Further research is needed to validate the findings of this study.

This paper deals with the roles of geographic proximity, social networking, and regional culture-structures in triggering cooperation in marketing activities. The role of regional clusters in the growth of firms has been a key research theme. Our study compares marketing externalities and practices in clusters of three key natural resources-based industries in Chile, a region in Latin America where limited research has been conducted. According to the results, both social networking and geographic proximity facilitate inter-firm cooperation in marketing activities. However, these factors are considered differently in each of the three industries studied.

Purpose – This research aims to deal with the interdisciplinary field of teamwork in entrepreneurial ventures. Its purpose is to advance the knowledge of investors' perspective with regard to high technology entrepreneurial teams. Prior studies suggest that teamwork affects new venture performance. However, only little evidence with conflicting conclusions was found in prior research regarding the importance investors lend to founders' teamwork as part of their evaluation criteria of founders' human capital.Design/methodology/approach – The importance of the teamwork factor on new venture performance was measured by meta‐analysis of 27 previous studies which shows that founders' teamwork takes the fourth place among the 11 measured founders' human capital factors. Are investors' views coherent with these findings? The author interviewed five venture capitalists (VCs) and five business angels with investment experience in early stage high technology ventures.Findings – Findings unexpectedly show that most ...

This paper seeks to explain an unexpected result of a previous quantitative study which suggested suboptimal evaluation by investors of the human capital of first time high tech venture founders. A literature review revealed two possible reasons for this finding: biases/heuristics and signalling. Six investors across three countries (one venture capitalist and one business angel each from the US, UK and Israel) with experience in investing in early stage high technology ventures were interviewed using an identical semi-structured interview protocol. This research design is appropriate for research that seeks to reflect back unexpected findings of previous quantitative research on the subjects of research. Interviewees were first asked to state their own investment criteria, and then presented with the results of the quantitative study and asked for their views. Previous research suggesting a gap between in-use and espoused criteria, and extensive use of gut feeling in decision-making, was supported. Inter...

PurposeTo investigate the influence of national or sub‐national culture and company size on inter‐firm cooperation in marketing among cluster‐based firms, with specific respect to the salmon‐farming industry.Design/methodology/approachCase study analysis of data collected from semi‐structured personal interviews with senior managers in two samples of different sized companies, located in industry clusters within Scotland and Chile.FindingsSmall firms in this industry in Scotland are more proactive in building inter‐firm cooperation, for international marketing activities. National culture has only a limited effect on the level inter‐firm cooperation, but sub‐national culture in distinctive communities can enhance it.Research limitations/implicationsThough the samples were representative and the data rich, this was designed to be a qualitative, exploratory study. Further research is indicated.Practical implicationsThe findings shed light on strategies for the enhancement of formal and informal social networks as a route to effective inter‐firm cooperation in marketing, of particular value marketers in small‐and‐medium sized enterprises. They may also be of interest to public bodies, with respect to the role of trade associations.Originality/valueThis industry makes a substantial contribution to the rural and regional economies of both the countries. The findings and conclusions are potentially useful to marketing researchers and planners in aquaculture, and may be transferable to other industries and locations.

This study explores the factors that cause differences in employment growth between young SMEs in core urban and peripheral regions and whether the uneven distribution of resources requires peripheral firms to draw on management consulting to achieve growth. We applied a mixed methods approach that included a quantitative study of 155 Israeli new ventures and 10 in-depth interviews with experts from academia and experienced practitioners. The use of consulting services by the surveyed SMEs is significantly higher in peripheral areas, and it was found to have a positive effect on SME growth in these areas. Raising capital through bank loans has a positive and significant effect on business growth, but only in peripheral areas. Regression results show that management consulting was beneficial for SMEs growth only for those located in peripheral regions. SMEs funded by money from family members grew less than the other firms. The economic development of peripheral areas needs to be carried out by providing p...

This exploratory study of motivation for entrepreneurship in later life extends the concept of active aging which in recent decades has attracted growing research attention in contemporary gerontology. Motivation of older adults toward entrepreneurship has been underexplored. Previous research shows mixed results regarding the effect of pull and push factors on entrepreneurial intentions. We employed a mixed methods approach while data was collected from a homogeneous cohort of retirees. Findings indicate that older adults' motivation to become entrepreneurs is centred mainly on pull factors such as self-fulfilment, increasing personal well-being, self-realisation and enhancing personal interests. Older adults may consider becoming entrepreneurs as part of their 'active aging' perceptions. These findings have implications for designated training programs for older adults that aim to promote their motivation and foster their skills to launch entrepreneurial activities. Highlights: 1) this research extends the concept of active aging by applying it to entrepreneurship; 2) entrepreneurs' in the third age are motivated by pull factors; 3) a process model of specific Gero-pull and Gero-push factors was developed; 4) we suggest an entrepreneurship training program designated for older people.

The relationship between education and economic growth has been studied extensively with the common thought that more education yields business growth. This study explores the different effects of ...

The vital sector of medical centres and hospitals remains poorly investigated in the literature on technology transfer (TT). The current article explores the mechanisms adopted and locally generated in medical centres to overcome barriers to TT. A qualitative study was conducted at the six largest medical centres in Israel to identify those barriers to TT as reflected in patent applications. The study was based on an embeddedness theory and on previous studies conducted in academic settings. Our findings indicated that: 1) TT from medical centres is affected by regulation and institutional ownership; 2) assessment of barriers to TT necessitates contextualisation and the consideration of local conditions at each medical centre (e.g., size, research funds, ownership and university affiliation).

Previous research in different countries found peripheral regions are weaker than core regions in terms of indicators related to founding new ventures. The research proposition of this study is whether entrepreneurs located far away from core regions perceive difficulties in founding new ventures. Based on the global entrepreneurship monitor (GEM) methodology regarding entrepreneurial framework conditions, we interviewed 32 entrepreneurs located in regions of Southern Chile. The results show peripheral regions deprived in terms of entrepreneurial capabilities. The current policies of national and local governments in Chile tailored for fostering and facilitating entrepreneurial activity do not seem to be in favour of regional entrepreneurship and do not provide enough support to entrepreneurs located in peripheral areas. The objective of this paper is to address a common problem in emerging countries with diverse regions and can be of value to the entrepreneurial, policy and scholarly communities.

Radical strategic change, a common event in high technology new ventures, presents a conflict between potential opportunity and the risk of departing from a planned and approved strategy. This study explores investors' perspectives regarding RSC in their portfolio companies, based on interviews of 13 private investors who are active venture capitalists or business angels. The study explores the investors' views based on three theories of VC-entrepreneur relationships: agency theory, stewardship theory and game theory. The findings indicate three approaches taken by investors: avoidance, expectation and passivity. Since the success of radical strategic change is critical to venture performance, it is suggested that investors adopt the expectation approach, which optimises the prisoner's dilemma inherent in the VC-entrepreneur relationship during such events. The findings of this exploratory study indicate the need for further research.

Given the contribution of Schumpeterian entrepreneurship to technological progress and well-being, the accuracy of investment decisions by venture capitalists is a societal issue. Venture capitalists find the human capital of entrepreneurs difficult to assess. This paper employs instrumental value theory to assess the impact of different human capital factors on the performance of new ventures. A meta-analysis of 29 previous empirical studies that examined the effect of founder's human capital on new venture performance suggested that instrumental value theory holds promise as a guide for research on entrepreneurs' human capital and new venture performance. It could also help venture capitalists to make better investment decisions, benefiting society in general.