1 WELCOME!

2 Innovation and Collaboration: A New Approach for Supporting the Theory and Practice of Entrepreneurship USASBE 2013 What's New, What Works: In the Classroom and on the Street San Francisco, California - January , 2013 Steve Wallis, PhD F.A.S.T. Noah Harris, MA Shamana Consulting, Inc.

3 AGENDA Introductions (who are we and why are we here?) Integrative Propositional Analysis (IPA) – (a new way to improve & test models) Activity – Use IPA to integrate and test models Discussion – academic/practitioner challenge – creating a better model together Consortial benchmarking – brief overview & next steps

4 Definition of a Model A model (conceptual construct) is a set of interrelated propositions.

5 A Model by Any Other Name Lens Map Metaphor Story Diagram Narrative Set of axioms Theory Ethics Policy Mental model Schema Mind map Assumptions These are all names for a conceptual construct that is useful for engaging the world.

6 One Very Simple (very difficult) Idea Creating a good model has TWO requirements: 1 – External correspondence (reality-to-concept) 2 – Internal coherence (concept-to-concept)

7 AGENDA Introductions (who are we and why are we here?) Integrative Propositional Analysis (IPA) – (a new way to improve & test models) Activity – Use IPA to integrate and test models Discussion – academic/practitioner challenge – creating a better model together Consortial benchmarking – brief overview & next steps

8 Integrative Propositional Analysis 1. Identify propositions within one or more theoretical models. 2. Diagram those propositions with one box for each concept and arrows indicating directions of causal effects 3. Find linkages between causal concepts and resultant concepts between all propositions 4. Identify the total number of concepts 5. Identify concatenated concepts 6. Divide the number of concatenated concepts by the total number of concepts in the model

9 IPA – Step 1 Identify propositions within one or more models. For Example: When there is more entrepreneurial risk-taking, the firm will exhibit enhanced performance.

10 IPA – Step 2 Diagram propositions one box for each concept arrows indicating directions of causal effects “Concept A” More entrepreneurial risk taking “Concept B” Better firm performance Proposition #1

11 IPA – Step 3 Find linkages between causal concepts and resultant concepts ABC P #1P #2 B OR A C B

12 IPA – Step 4 Identify the total number of concepts ABC Total Number of Concepts = 3

13 IPA – Step 5 Identify concatenated concepts ABC Number of Concatenated Concepts = 1

14 IPA – Step 6 Divide the number of concatenated concepts by the total number of concepts in the model Total Number of Concepts = 3 Number of Concatenated Concepts = 1 Robustness = 0.33 (result of one divided by three) AB C

15 Pop-quiz #1 … Holmes, T. J., & Schmitz Jr, J. A. (1990). A theory of entrepreneurship and its application to the study of business transfers. Journal of Political Economy, 98(2), [partial model] Total number of concepts = Number of concatenated concepts = Robustness = More pursuit of opportunity (entrepreneurial task) More new product created (new business forms)

16 Pop-quiz #2 … Montanye, J. A. (2006). Entrepreneurship. The independent review, 10(4), Total number of concepts = Number of concatenated concepts = Robustness = More creation and capture of economic rents in face of uncertainty and scarcity More rewards above equilibrium level More living better than others

17 Pop-quiz #3 … Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32, Total number of concepts = Number of concatenated concepts = Robustness = More stock of knowledge Less efficient use of R&D by incumbents Less regulation administrative barriers, government intervention in the market More entrepreneurship

18 Comparing Models ModelStructureComplexity Holmes, T. J., & Schmitz Jr, J. A. (1990) R = 0.0 C = 2 Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2009) R = 0.0 C = 3 Montanye, J. A. (2006) R = 0.25 C = 4

19 Example of integration… Holmes & Schmitz”A theory of entrepreneurship and its application to the study of business transfers.” More Modernization Less equilibrium More opportunities for developing new products More economic growth Less equilibrium More opportunities for developing new products

20 Integrating the two propositions… More Modernization More economic growth Less equilibrium More opportunities for developing new products Total number of concepts = Number of concatenated concepts = Robustness =

21 AGENDA Introductions (who are we and why are we here?) Integrative Propositional Analysis (IPA) – (a new way to improve & test models) Activity – Use IPA to integrate and test models Discussion – academic/practitioner challenge – creating a better model together Consortial benchmarking – brief overview & next steps

22 Integrating Three Models (see handout) Total number of concepts = Number of concatenated concepts = Robustness = More stock of knowledge Less efficient use of R&D by incumbents Less regulation administrative barriers, government intervention in the market More entrepreneurship More creation and capture of economic rents in face of uncertainty and scarcity More rewards above equilibrium level More living better than others More pursuit of opportunity (entrepreneurial task) More new product created (new business forms)

23 The Integration Game Work solo or in group (as convenient) Examine handouts Identify where models might overlap Link them together Prepare to share your results and insights

24 AGENDA Introductions (who are we and why are we here?) Integrative Propositional Analysis (IPA) – (a new way to improve & test models) Activity – Use IPA to integrate and test models Discussion – academic/practitioner challenge – creating a better model together Consortial benchmarking – brief overview & next steps

25 Resulting Model… Is more Complex (greater breadth)? Is more Robust (more likely to be effective in practice? Creates opportunities for research? Suggests directions for practice?

26 AGENDA Introductions (who are we and why are we here?) Integrative Propositional Analysis (IPA) – (a new way to improve & test models) Activity – Use IPA to integrate and test models Discussion – academic/practitioner challenge – creating a better model together Consortial Benchmarking – brief overview & next steps

27 Consortial Benchmarking (CB) What is it? Collaborative form of Researcher-Practitioner investigation of “best practice” firms re: a specific research question.) Purpose – Enhance rigor & relevance in collaborative research Brief History - American Productivity & Quality Center process benchmarking work influences, key proponents Schiele & Krummaker

28 CB Process

29 CB, Rigor & Relevance Appropriate Operational Measures Strong Relationship Identification Generalizability Reliability/Replicability

30 CB vs. Multi-Case Studies Practitioners as Co-Researchers – Accesses both knowledge-practice bases Team-Based – Member, Perspective, Experience & Competency Diversity Multiple Evidence Sources – Analyst, Perspective & Data Triangulation Best “Practice” (Pattern) Focus – Industry Tourism Prevention Critical Discourse – Constructive Researcher-Practitioner Discourse/Dialogue

31 CB Challenges & Suitability Complexity – Research Approach Resource Intensity – Time, Analysis, Discussions, etc. Potential Practical Issues – Member/Best Practice Firm Competition, Team-Based Challenges Best for High Priority Researcher- Practitioner Topics

32 To Conclude… IPA provides an innovative and rigorous tool for integrating and evaluating models based on logical structure Using IPA, we can develop better academic models CB provides an innovative and useful process for sharing knowledge Using CB, we can share and improve upon best practices for supporting entrepreneurs

33 MANY THANKS We look forward to collaborating with YOU! USASBE 2013 What's New, What Works: In the Classroom and on the Street San Francisco, California - January , 2013 Steve Wallis, PhD F.A.S.T. Noah Harris, MA Shamana Consulting, Inc.