Volume 7, Issue 4 -

Our theory of competitive advantage, namely the theory of entrepreneurial rent, posits that the firm’s entrepreneurial orientation, their alertness, agility, absorptivity, and proactive adaptability, is a source of competitive advantage. The firm’s entrepreneurial orientation sustained by the entrepreneurial incentives continually updates and enriches the management logics that enhance the execution of the business model mechanism wherein lies the firm’s competitive advantage. The business model mechanism constituting the management logics, core resources, value opportunities, and value activities sustains the firm value creation and appropriation. Superior execution of the business model mechanism sustained by the firm’s entrepreneurial orientation provides a sustainable competitive advantage. The entrepreneurial incentives are at the heart of our theory of competitive advantage. The superior execution of the business model mechanism is sustained by the entrepreneurial incentives, in that the business model execution is enhanced by the management logics that are continually updated with the firm’s entrepreneurial orientation, and the firm’s entrepreneurial orientation is sustained by the entrepreneurial incentives.

This paper analyzes the spatial nature of entrepreneurship at NUTSIII. Lately, academic studies are including the relation between incipient entrepreneurs and geography. In some cases, this relation is considered as unidirectional insofar as the decision to become an entrepreneur can be highly influenced by geographical location. Beyond the cultural and social boundaries that affect the entrepreneur as an individual, there are spatial characteristics that provide advantages of location for some industries. While several studies highlight the role of location and geography as aspects that have an impact on entrepreneurial activity, the externalities generated by such aspects are not considered in empirical work. The aim of this paper is to check how avoiding considering location can have an effect on the results of entrepreneurship research. Our results point that both location and temporary effects have a significant impact on entrepreneurship research results. Thus, it is important to use a temporary and spatial methodological approach in entrepreneurship research to avoid bias.

We have scrutinized the role of regulative, normative and cognitive institutional environments on perceived desirability and feasibility of entrepreneurial action by applying the institutional framework to two types of Israel kibbutz cooperative communities. When combining convenient and snowball sampling, entrepreneurial drive indicators were identified among 253 community members in 2010. MANOVA analysis revealed that members of wage differential oriented kibbutzim perceived entrepreneurial action as more feasible but not more desirable than members of egalitarian kibbutzim. This reaffirms the importance of accounting for specific community characteristics when researching aspects of entrepreneurship.