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Impact of Institutional Factors on IEO

University: Bradford College

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 7 / Words 1738
  • Paper Type: Dissertation
  • Course Code: INTE2412
  • Downloads: 19395
Question :

This sample will let you know about

  • What is Research Problem?
  • What are Research Objectives?
Answer :
Organization Selected : IEO

Introduction to Entrepreneurship

Background of study

Entrepreneurship is all about creation of a new business. It further deals with generation of new ideas, organization as well as hands on action that are likely to have many effects. Entrepreneurship is very important to nations as it helps in generation of many employment opportunities an also contributes towards research and development processes (Entrepreneurship in Developing Countries, 2013). It further helps in provision of self-sufficiency and wealth for the entire nations and individuals. This has been true for developed nations up till now. But in the present times, same trend is being observed in emerging economies.

In recent times, there has been emergence of entrepreneurial culture in the Middle East region. It has been on account of Arab uprisings that have created a new form of entrepreneurial spirit in the Middle East region (Importance of Entrepreneurship in Developing Country, 2013). This is particularly true in case of younger entrepreneurs who are emboldened for starting up small medium sized enterprises. There have been a surprising number of young talents that have started their own technology companies and other kinds of business ventures.

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Research problem

The present study will try to handle varied issues that are present in the area of Entrepreneurship. There is presence of unclear concept of Entrepreneurship Orientation as well as international Entrepreneurship Orientation (Lingelbach, Viña and Asel, 2013). Discussions are required to be carried out as to whether IEO should be seen as an individual or firm level construct. In the similar manner, there is a huge lack of applying Institutional theory in the area of entrepreneurship. The application has majorly been on developed nations. But, this is not true for developing nations, for example, Middle East where institutional factors have a tendency to have a profound impact on shaping entrepreneurial orientation (Kaynak, Tatoglu and Kula, 2005). The past studies done in the area have majorly focused on developed nations. One such study has been written by Arabaugh, Cox and Camp, 2009 that signifies the EO construct in North America (Arabaugh, Cox and Camp, 2009). Another study has been carried out by Hassim and et.al., from Malaysian perspectives (Hassim and et.al., 2009).
Research question

The current study has thus tried to give a due emphasis on the research question being how do institutions shape International Entrepreneurship Orientation (IEO) in the Middle East?

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Research objectives

As per the formulated research question, there has been a preparation of many objectives that are as follows;

  • To understand the meaning of IEO from the Middle Eastern context.
  • To examine the impact of institutions in shaping IEO -middle eastern perspective.
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Literature Review

Entrepreneurial orientation (EO)

The term Entrepreneurial orientation can be considered as a multidimensional construct which is applied at organizational level. EO has been regarded as one of the central components of entrepreneurship and carrying out of a thorough strategic research. It characterizes the entrepreneurial behaviour of the firm which is inclusive of dimensions related to risk-taking attitude, tendency to innovate as well as pro-activeness (Autio, 2005). It is thus a set of processes, actions, methods as well as decision making styles that are undertaken by a firm. The traditional view on entrepreneurship has given a due emphasis on content in comparison to process (De Clercq, Hessels and van Stel, 2008). On the other hand, EO has focussed on processes and strategy development style within an existing business.

Effectuation theory

The focus of this theory has been on the ability of entrepreneurs' to create opportunities along with network partners in order to understand the developments made in global firms. This theory holds a promising idea towards development of international entrepreneurship area. The focus of effectuation theory has majorly been on using evolving means in order to achieve new goals. The process of Effectuation thus has an ability to evoke transformative tactics (Effectuation, 2012).
The network theory

This approach views the market exchange which happens due to interaction between market actors. The markets are thus regarded as system of social and business relations that is found amongst customers, supplier as well as competitors. In this regard, the small and medium enterprises as well as budding entrepreneurs heavily rely on network relations during internationalization of activities (Foss, 2011). These may thus assist in understanding the knowledge and experience that is likely to be gained by enterprises in foreign markets

Resource based view

This theory is all about the manner in which competitive advantage are generated by firm from unique set of resources. Resource based view in context of entrepreneurship orientation is all about recognizing the prevailing opportunities and opportunity-seeking behaviour as a major form of resource. The concept also treats the overall process of combination and organization as a resource.

Dynamic capability

The research carried out by Jantunen and et.al., 2005 has clearly revealed that entrepreneurial orientation of a firm as well as reconfiguring of existing capabilities has an overall impact on performance of a company on international level . This further provides for an empirical support to dynamic capabilities of a firm. In this regard, if entrepreneurial behaviour and organizational capabilities are utilized in a proper manner then there can be generation of a competitive advantage.
Organizational ecology theory

The given theory is all about examining how the population of any firm changes and develops with time by moving through stages of foundation, growth, alteration, decline followed by death. The theory has further addressed the forces of socio political and economic systems that increase diversity of any firm (Douma and Schreuder, 2013).

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The given section is all about undertaking a thorough discussion towards the research methods, tools and techniques that are useful to carry out a research study. The areas are as follows;

  • Research Type - The research type utilized in present scenario happens to be qualitative to provide for a precise discussion about ideas regarding role played by institutions to shape International Entrepreneurship Orientation (IEO) in the Middle East.
  • Research Design - The chosen research design is exploratory for exploring the meaning of IEO from the Middle Eastern context as well as assessing the impact of institutions to shape International Entrepreneurship Orientation as per Middle Eastern perspective.
  • Research philosophy - There has been a selection of interpretevism philosophies to explore the meaning of IEO in Middle Eastern context. The selection is apt as data collection has been done by using secondary literature sources (Chilisa, 2011). Hence, there can be a presence of contradictory views that have been presented by authors.
  • Research approach - There has been a choice of deductive research approach to move from generalized research study on International Entrepreneurship Orientation to the one that is focused on Middle East.
  • Data collection - In order to collect facts, figures and viewpoints, there has been a usage of secondary sources of data. Primary data has not been included as difficulties are likely to be encountered while obtaining information in terms of Middle East. Hence, the secondary data sources have been in form of journal articles, online works, books written by various authors in the area of International Entrepreneurship (Ethridge, 2004).
  • Data Analysis - Data analysis will be aided by use of thematic study where results will be presented in form of themes. .
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  • Arabaugh, J. B., Cox, L. W., \and Camp, S. M., 2009. Is Entrepreneurial Orientation a Global Construct? A Multi-Country Study of Entrepreneurial Orientation, Growth Strategy, and Performance. The Journal of Business Inquiry. 8(1). Pp. 12-25.
  • Autio, E., 2005. Creative Tension: The Significance of Ben Oviatt's and Patricia McDougall's Article, Toward a Theory of International New Ventures.Journal of International Business Studies. 36(1). Pp. 9-19.
  • Bagherinejad, J., 2006. Cultivating technological innovations in Middle Eastern countries: Factors affecting firms' technological innovation behaviour in Iran.Cross Cultural Management: An International Journal. 13(4). pp.361 - 380.
  • Brush, C., 2013. International Entrepreneurship. Routledge.
  • Carsrud, L. A., andBrännback, M., 2009. Understanding the Entrepreneurial Mind: Opening the Black Box.Springer.
  • Chilisa, B., 2011. Indigenous Research Methodologies. USA: SAGE.
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