Entrepreneurship, business contexts and change D, 20 points/30 ECTS Syllabus : Entrepreneurship, business contexts and change D Course code : FEKD32 Responsibility : Umeå School of Economics Subject : Business Administration Level : D (Specialized) Course credit : 30 ECTS / 20 points Field of education: Social Sciences This is a course at the D-level in a Msc-degree at Umeå University. The course can also be included in study programmes in Business Administration and Economics at Umeå School of Business. 1. Resolution to arrange the course The course was established by the Faculty of Social Sciences at Umeå University in December 2002. The syllabus was revised by the Board of Umeå School of Business on May 29, 2006. The syllabus is valid from August 28, 2006. 2. Objective and contents Businesses are a part of complex and changing environmental contexts. Contemporary management therefore requires a dynamic perspective, where change, innovation, and flexibility are incorporated into the strategic process. Such a perspective is provided through entrepreneurial management. Entrepreneurial management is about understanding environmental change, initiating new ventures, and exploiting opportunities in large international firms as well as smaller firms, projects, and public authorities. Consequences and opportunities originating from such forces as globalization and regionalization, deregulation, increased emphasis on the market, and technological development need to be identified and transformed into strategic actions. These strategic actions take place within a business setting consisting of innovation networks, regional production systems, and clusters. In these different types of business settings, firms obtain the benefits of labor pooling, specialized suppliers, and challenging customers; entailing increased opportunities for learning the resources needed for innovative actions. The advantages of dynamic business settings include the opportunity for jointly creating knowledge or integrating the complementary knowledge needed for further development. The ability to develop and manage strategic relationships with other actors in these business settings is of crucial importance. A strong emphasis is placed on entrepreneurs and entrepreneurial activities for the creation and exploitation of business opportunities in existing as well as in emerging markets. Finally, entrepreneurial management - i.e. the integration of environmental conditions, inter-organizational relations, and entrepreneurial activities - needs to be incorporated into the overall strategic process. This course develops the student’s understanding of entrepreneurial management through the knowledge acquired in the four core courses. First, students acquire a capacity for informed critical understanding of environmental conditions and the ability to analyze current trends. Second, organizing and co-ordinating competitive and co-operative relations in different settings are examined; third, entrepreneurial activities and competence building are reviewed and highlighted. The fourth course focuses on the strategy process. The first three courses provide a solid theoretical frame of reference as well as practical examples, whereas the fourth course integrates and utilizes the knowledge gained in the previous courses through practical and process application of the strategy process. The course provides students with up-to-date and competitive training in management with a focus on entrepreneurship and environmental analysis. Students gain a deep knowledge and understanding of contemporary research and business practices as well as frameworks, skills, and tools needed in entrepreneurial activities for change. The course familiarizes students with classical theories on the subject, as well as current areas of debate and research. Students from the Entrepreneurship, business contexts and change course are prepared for positions demanding up-to-date competence in environmental analysis with implications for strategic management. Their capabilities as potential entrepreneurs will increase. Future possible positions in companies include various types of change agents, identifying, initiating, and developing necessary change processes. The competencies of these graduates also equip them for work in planning or in departments with strategic considerations; at larger firms and in international divisions; in trade associations; public authorities; and sectors in which competition, globalization, and technological development are key areas for future development. Graduates are also welcome to apply for the Ph.D. Programmes in Business Administration. A number of extracurricular activities in which students can increase their knowledge and experience is also available. The modules are: Module 1. Perspectives on business contexts (5 points/7,5 ECTS) Business development and entrepreneurship cannot be properly understood without considering the economic and institutional settings in which they operate. The development of the macroeconomic environment determines the long-term strategic framework for firms. Structural change in the economy, stemming from, for example, technological change or changing demand exemplified by a more service-oriented economy have direct and indirect effects on markets and the profitability of new or old businesses. Institutional transformation can have a similar effect, either by opening or widening new markets or by narrowing and regulating the framework within which business is created. Modern industrial economies in a Western sense have, without exception, extensive regulatory frameworks as well as a large public sector, thus making businesses dependent on political policy making. In order to understand the business context, it is therefore necessary to study the interaction between state and market, or the political economy. To understand the nature, mechanisms, and trends that govern these factors demands a long-term perspective. The module will pinpoint some of the theoretical approaches that may explain the development of the world economy and modern industrial societies, including the emergence of differing regional environments and the creation of distinctive regional economies that foster innovations and entrepreneurship, while relating to a changing environment on the macro-level. It is also essential to examine changes in the internationalization of the world economy and international trade patterns. The reasons behind, and connections between, the parallel movement towards stronger and more specialized regional economies, as well as a more globalized and integrated world economy, will be taken into account. These factors are particularly relevant against a background of long-term shifts in technological and institutional regimes and structural economic changes in modern Western societies. In a changing environment, the entrepreneur must adapt to change and use change in order to reach new paths of development. This makes it imperative for the course to examine theoretical approaches explaining the driving forces behind change and development and entrepreneurial activity The overall purposes of this module are: * to provide students with explanations for changes in the world economy and in modern societies and the influence of these changes in today’s business contexts; * to relate to a current business context the long-term development of the relationships between the market- and state-governed sectors of the economy; and * to introduce a theoretical discussion about the driving forces behind the dynamism and change in modern capitalist economies and the relationship of these forces to practical entrepreneurship. Teaching methods: See below 4. Examination methods: See below 5. Module 2. Dynamic business settings (5 points/7,5 ECTS) As identified in the previous module, innovation and entrepreneurial activity flourishes or struggles within a wider business context. It is therefore crucial for the entrepreneur and other actors that in various ways support entrepreneurial activity. While the first module focuses on general macro level changes in the business environment, this module sets the inter-organizational context for entrepreneurial activities, highlighting meso-level factors that contribute to the structure of the inter-organisational business context, such as national business systems, location, and other factors that stimulate dynamism in such locations. This module aims to equip the student to identify, analyze, and strategically plan for entrepreneurial activity in dynamic business contexts. As entrepreneurial activities do not take place in a vacuum, but are inherently shaped by the context in which they arise, this module firstly focuses on the role of the general business environment in which dynamic business settings arise, and in particular on the role of the national business system for creating the conditions which stimulate or restrict entrepreneurial activity and innovation from arising. Common characteristics of the Nordic arena as a whole within the E.U., and distinctive characteristics of the three different markets (Sweden, Finland, and Denmark), will be introduced. Issues such as general attitudes towards entrepreneurship, government and non-government institutions and business laws and regulations, etc, that support and surround entrepreneurship will be raised. Secondly, a modern view of innovation emphasizes the role played by location in the process of innovation. Through interaction over time, firms form varying degrees of dynamic business settings. Experience from practice and research emphasises the importance of local business multiplicity, ready access to physical resources, a regional labour market with a multitude of relevant professionals, educational and research institutions, and venture capitalist. This module therefore concentrates on different types of dynamic entrepreneurial settings - including clusters, industrial districts, innovation systems, technological fields, networks, and communities of practice - as the arena of organisation-level interaction in entrepreneurial activities. Finally, the module will introduce two factors contributing to the dynamism of different business settings, namely the role of competitive and cooperative relations in building dynamic contexts, and the role of knowledge flows for dynamism in the local setting. Expected learning outcomes: On successful completion of this course, students should be able to: - Identify common characteristics of the Nordic business setting supporting entrepreneurial activity - Identity specific characteristics of the Swedish business setting supporting entrepreneurial activity - Describe and analyse the nature of different types of meso-level business settings, including clusters, industrial districts, innovation systems, and technological fields. - Analyse the dynamic nature of the meso-level business setting - Strategically plan for entrepreneurial activities within dynamic business settings. Furthermore, the student should be able to: - Produce oral and written academic presentations at a master’s level - Produce independent work - Work in groups and/or work-teams - Critically reflect on and develop knowledge from scientific articles - Examine investigations and reports from a critical and scientific point of view. - Apply theoretical knowledge onto real-life business situation - Take responsibility for continual learning Teaching methods: The core topics of the module will be covered through introductory lectures, literature seminars, and the analysis of a dynamic business setting from the northern part of Sweden. The teaching is characterized by a strong emphasis on student activity, and a main focus in the student’s learning process is placed on individual and group studies of the course literature, with comprehension and understanding of the course content aided through literature seminars and case seminars. The student is therefore expected to participate actively in all lectures, literature seminars, group assignments, and case seminars. Student presentations will include both oral and written presentations. Examination methods: The examination of this module comprises three main types; mini-exams to be completed at home, designed to test the student’s grasp of concepts covered by course literature, case assignments focusing on particular dynamic Swedish business settings of regional/national/ international importance, and finally an integrating open-book written exam (so-called ‘home exam’). The following grading system is used: Pass with distinction (75 % or more), Pass (50 % or more) and fail (less the 50 %). The final course grade is awarded when the students have passed all examinations and have fulfilled the compulsory course requirements. Students must attend all seminars and case presentations in order to pass the module. Module 3. Entrepreneurial activity (5 points/7,5 ECTS) Current debate places strong emphasis on the necessity of entrepreneurship in different parts of business society. This module focuses on the entrepreneur in order to provide a broader view of different entrepreneurial activities. Who is the entrepreneur? Research into entrepreneurship has placed strong emphasis on the individual’s psychological motives for engaging in entrepreneurial activity. This module provides an understanding of entrepreneurial characteristics and how they differ from country to country. The importance of situational factors such as limited work opportunities and the presence of new resource combinations as driving forces for entrepreneurship will also be discussed. Where do we find entrepreneurs? Entrepreneurship entails renewal and change, and takes place in many different situations requiring various entrepreneurial roles. Entrepreneurs are often defined as individuals who develop new ventures or spin-offs from existing businesses. The concept "intrapreneurs" depicts actors initiating change within established organizations. For example, technological innovation and increased competition create a greater need for renewal in established firms and in the public sector. Other entrepreneurial activities are outsourcing and network building. The drivers of such renewal processes are called "extrapreneurs". These different entrepreneurial concepts are defined in the module. Based on these concepts, students will be provided with an understanding of the ways in which entrepreneurial actions can increase organizational propensity to change. What is an entrepreneurial activity? The basis for entrepreneurial activities - opportunity recognition - will be examined. The aim is to create an understanding of the chain: business opportunity - business concept - business exploitation. Innovations can only lead to new products or new markets if an entrepreneur uncovers potential business opportunities. How this process has been treated from different theoretical perspectives will be examined in this module. How to generate business ideas (I)? This module starts with a focus on creativity which in general is considered to be the key concept for successful renewal and development in many areas in the society, especially in the commercial sector but also in the public sector. The theoretical review of creativity will be mirrored from an individual, group, company as well as from society perspective. This module is mainly build on theories from different disciplines and traditional literature. The students will also have an opportunity to apply some methods in order to detect and “measure” individual creativity. Expected learning outcomes: On successful completion of this course, students should be able to: - Identify, describe and analyse entrepreneurial characteristics and roles in different corporate and cultural settings - Recognise entrepreneurial opportunity - Stimulate entrepreneurial activities. Note: This course initiates the practical, entrepreneurial, hands-on stream of courses that aim to build entrepreneurial competence by providing practical opportunities for acquiring creativity, alertness, and business acumen. Teaching methods: The accomplishment of the module is built on a combination of various teaching methods and learning activities. Lectures and literature studies are the core teaching methods combined with case-studies and creativity assessment tests. Examination methods: Comprehension and understanding of the course contents will be assessed in workshops, seminar tutorials and a home assignment. A passing level of minimum 50% is required on the final mark. For a Pass with distinction, a minimum level of 75% is required. Module 4. Processes - business strategy (5 points/7,5 ECTS) Management and entrepreneurship are closely related in the creation of strategies and in the corporation’s overall strategic approach. The goal of this module is to bring the perspectives on people and projects together with a perspective on the dynamics of the business context in a process view of management and entrepreneurship. The focus in this module is on the significance of management in the process of organizational change and its development in alignment with the complexity and multiplicity of factors shaping the internal and external business context. Business strategy is viewed as the ongoing efforts in an organization, in which multiple activities and processes converge into a strategic corporate process. Business strategy or strategizing is the topic for this module. Theoretical inspiration will be provided through seminars and lectures on change management and strategy making. Various schools of thought on strategies are presented and their assumptions examined. The aim is to illustrate the impact of these different schools on strategic management. The learning process will combine theory, practice, and reflection. Students will be organized in small groups or management teams working together with a company or a public organisation in a project assignment. They will face different dilemmas that require capacity to integrate and resolve complex issues to develop a theoretical and problem-based understanding of the strategy process. Corporate and public representatives will be involved in various activities as experts, informants, experts and "boards". Attention will also be given to group dynamics and individual development and reflection. Students will be required to demonstrate their capacity to integrate aspects of business originating from both internal and external contexts in the strategizing process. Human resources, strategic identity, network opportunities, innovation processes, structural arrangements, entrepreneurial capacity, market conditions and regulations, competition, and project and portfolio resources are just some examples of factors that are covered. The overall purposes of the module are: * to provide students with an understanding of the Business Strategy Process; and * to improve students' abilities to analyze and integrate the business context, human resources, and organizational capabilities in the strategizing process. Teaching methods Lectures are used in different parts of the module to outline general theories, and workshops will be utilized for more detailed examination and to deepen understanding of theories. The practice of strategizing will be pursued through an advanced project assignment. Students are expected to be well prepared and to participate actively in discussions during the workshops and different project activities. Moreover, students will take part in reporting a group assignment with both oral and written presentations. Examination methods The examination will be based upon the student's active participation workshops, and the successful completion of a project assignment. Material from guest lectures may also be examined. The following grading system is used: Pass with distinction (Väl godkänd, Vg, 75% or more), Pass (Godkänd, G, 50% or more) and Fail (Underkänd U, less than 50% 3. Prerequisites Courses in Business Administration (90 ECTS) A minimum of 40 points/60 ECTS from A-level and B-level courses (Management, Accounting, Financial Investments, Cost Accounting, Marketing) At the advanced, C level, a minimum of 20 points/30 ECTS, including a Bachelor’s thesis or equivalent 4. Teaching methods The core topics of the course will be covered through lectures, seminars, and various types of cases. The topics provide a connection with leading research in the area as well as its practical applications. The teaching is characterized by a strong emphasis on student activity. Students are expected to participate actively in lectures, seminars, case analyses, and presentations, and, on a number of occasions, to make oral and written presentations. Students will also be assigned particular responsibilities - as seminar hosts, for example. 5. Examination Students must attend seminars and case presentations in order to pass the four modules. The quality of written and oral presentations may constitute a portion of the grade in each module. The method of examination in each module will include either a comprehensive written examination (tentamen) or a more extensive written assignment (PM). Material from guest lectures and cases may be used in the examination. The following grading system will be used: Pass with distinction (Väl godkänd, Vg, 75% or more), Pass (Godkänd, G, 50% or more) and Fail (Underkänd, U, less than 50%). To receive the grade Pass with distinction (Väl godkänd) on the course, the student must have achieved that grade at three of the four modules. Students who do not pass at the time of the normal written examination will be offered an opportunity to sit a further examination within 2-3 weeks. Beyond that, additional examination opportunities normally arise every academic year one-week prior to the start of the autumn term. When a student has failed an examination on two occations, he or she has a right to have another grading teacher. A written request should be handed to the director of studies no later than two weeks before the next examination opportunity. Grades on the course are awarded when students have passed all examinations and compulsory course elements. 6. Utilisation et cetera In cases where there are applicants from exchange programmes or similar, the course language will be English. Otherwise, parts of the course may be taught in English. Information on language aspects can be obtained from the Student Counsellor. Other Regulations Acknowledgment/Plagiarism: Plagiarism is not acceptable and may result in the imposition of severe penalties. The University provides clear guidelines on its attitude towards plagiarism and how to avoid unintentional plagiarism. Students are advised to read these carefully. If any doubts remain as to what constitutes plagiarism, students should discuss the matter with the lecturer(s). Study Time: Students are expected to prepare a significant amount of material outside of the classroom in order to fulfil course requirements. Previous indications suggest that students should treat this subject as full time work and invest a minimum of forty hours in preparation and attendance. 7. Readings and other materials Module 1. Perspectives on business contexts (5 points/7,5 ECTS) Chandler, Jr, A. D. (1992). What is a firm?. European Economic Review, 36(2-3): 483-492. Hall, P.A. (1993). Policy paradigms, social learning, and the State. The case of economic policymaking in Britain. Comparative Politics, 25(3): 275-296. Dienel, H-L. & Lyth, P. (1998). "Introduction" in Flying the flag: European commercial air transport since 1945, Basingstoke: Macmillan. Richards, J.E. (1999). Towards a positive theory of international institutions: Regulating international aviation markets. International Organization, 53(1): 1-37. Richards, J.E. (2001). Institutions for flying: How states built a market in international aviation services. International Organization, 55(4): 993-1017. Sinha, D. (1999). The regulation and deregulation of US airlines. Journal of Transport History, 20(1): 46-64. More articles will be added. Module 2. Dynamic business settings (5 points/7,5 ECTS) Course literature comprises a compendium of articles and book chapters, including; Albertini, S. (1999) Networking and division of labour – the case of industrial districts in the north east of Italy. Human Systems Management, 18,pp 107-115 Asheim, B & Isaksen A (1997) Location, agglomeration and innovation: towards regional innovation systems in Norway?. European planning studies 5, pp299-330 Bengtsson, Maria & Kock, Sören (2000). "’Coopetition’ in Business Networks - to Cooperate and Compete Simultaneously". Industrial Marketing Management, 29 (5), 411-426. Bresman, Henrik, & Sölvell, Örjan (1997). Local and global forces in the innovation process of the multinational enterprise – an hour-glass model, NORDREFO 1997:3. Special issue: Regional Specialisation and Local Environment – Learning and Competitiveness. Brown, John Seely & Duguid, Paul (2001). "Knowledge and Organization: A Social-Practice Perspective". Organization Science, 12 (2), 198-213. Etzkowitz, Henry & Leydesdorff, Loet (2000) “The dynamics of innovation: from national systems and Mode 2 to a Triple Helix of university-industry-government relations”. Research Policy, 20: 109-123. Gnyawli & Fogel (1994), ‘Environments for Entrepreneurship: Key Dimensions and Research Implications’. Entrepreneurships Theory and Practice. Summer 1994, pp 43-62 Goglio S. Introduction: the Industrial district as a proving ground. European planning studies vol 10 nr 4 pp 421-424. Hofstede, G., Nooderhaven, N:G:, Thurik, A.R., Uhlander,LM, Wennekers,A.RM, &Wildeman, R.E (2004), ‘Culture’s role in entrepreneurship: self employment out of dissatisfaction’. Chapter 8 in Brown, T.E, & Ulijn, J. Innovation, Entrepreneurships and Culture: The interaction between technology, progess and economic growth. Edgar Elgar.Publishing Inc. UK. Pp 162-203 Keeble, D. (2000) “Collective learning processes in European High technology milieux”. In David Keeble & Frank Wilkinson (eds.) High technology clusters, networking and collective learning in Europe. Pp199-229 Porter, Michael E. (1998). "Clusters and the New Economics of Competition". Harvard Business Review, 76 (6), 77-90. Pouder, Richard & St John, Caron (1996). "Hot Spots and Blind Spots: Geographical Clusters of Firms and Innovation". Academy of Management Review, 21 (4), 1192-1225. Shane, Shane (2003) ”The environmental context of entrepreneurship”. Chapter 7 in A General Theory of Entrepreneurship. The Individual-Opportunity Nexus. Cheltenham: Edward Elgar. Wenger, E. (2000) ‘Communities of practice and social learning systems’. Organisation, 7(2), 225-246 Whitley, R. (1992) The social construction of organisations and markets: the comparative analysis of business recipes’. In Reid, M 6 Hughes, M. (1992) Retinking Organizations: New directions in organization theory and analysis. Sage, London., pp.120-142 Note: some minor adjustment may be may to the above list by the beginning of the module. Most articles are available via the University Library (UB) or their Internet services. Module 3. Entrepreneurial activity (5 points/7,5 ECTS) Shane, S. (2003). A general theory of entrepreneurship. The individual-opportunity nexus. Cheltenham: Edward Elgar Publishing Limited. Antoncic, B. & Hisrich, R.D. (2001). "Intrepreneurship: Construct refinement and cross-cultural validation". Journal of Business Venturing, 16(5): 495-527. Dunham, L. & Venkataraman, S. (2002). "From Rational to Creative Action: Recasting Our Theories of Entrepreneurship". Darden School Working Paper. DSWP-02-06. Granovetter, M. (1985). "Economic Action and Social Structure: The Problem of Embeddedness". American Journal of Sociology, 91(3): 481-499. Minniti M., Bygrave W.D., Autio E. (2005). "Global Entrepreneurship Monitor: 2005 Executive Report" to be downloaded at GEM Consortium website: http://www.gemconsortium.org/download/1147080420578/GEM_2005_Report.pdf Paulus P.B., Yang, H (2000) Idea generation in Groups: A Basis for Creativity in Organizations, Organizational Behavior and Human Decision Processes vol 82 No.1 Sarasvathy, S.D. (2001). "Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency". Academy of Management Review, 26(2): 243-263. Sarasvathy, S., Dew, N., Velamuri, S.R. & Venkataraman, S. (2003) Three views of entrepreneurial opportunity. In Acs, Z.J. & Audretsch, D,B. (eds) (2003). Handbook of Entrepreneurship Research. An Interdisciplinary Survey and Introduction. Sutton R., Hargadon A.(1996) Brainstorming Groups in context, Administrative Science Quarterly, Dec96, 41:4 More articles will be added. Module 4. Processes - business strategy (5 points/7,5 ECTS) Required (assigned) text: Johnson, Gerry, Scholes, Kevan, Whittington Richard (2004). "Exploring Corporate Strategy". (Text only) 7th ed Harlow, Essex: Pearson Education Limited Articles can be added. --------------- Umeå University, Umeå School of Business, SE-901 87 Umeå, Sweden.