Bengt Johannisson - TylöSand0915 FSF


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Bengt Johannisson - TylöSand0915 FSF

  1. 1. Glocalization as a Generic Entrepreneurial Strategy Bengt Johannisson Växjö University Jönköping International Business School Presentation at the FSF Conference Globalization, Innovation and Entrepreneurship Tylösand. September 15-16, 2008
  2. 2. The Proposition <ul><li>Glo bal venturing does not guarantee success – some entrepreneurs and business concepts are just domestic </li></ul><ul><li>Lo cal venturing, not even if joining forces in (in)formal alliances and clusters, is by no means a safe way to success – introvertness create lock-ins </li></ul><ul><li>Glocal venturing provide builds global competitiveness through local collaboration </li></ul>
  3. 3. The Argument for Globalization <ul><li>Markets are increasingly global </li></ul><ul><li>ICT makes the boundrary between the real and the virtual fuzzy </li></ul><ul><li>Partners mayforce or seduce you to join their internationalization </li></ul><ul><li>Serendipitous encounters trigger international venturing </li></ul><ul><li>Humans are born to be adventurous </li></ul>
  4. 4. The Argument for Localization <ul><li>Entrepreneurship is usually dressed as a family business where family and place matter </li></ul><ul><li>Launching a business career is about crafting a new identity and new everyday life </li></ul><ul><li>Businesses start where the founder belongs </li></ul><ul><li>Physical and social proximity matter </li></ul>
  5. 5. Place is important <ul><li>We all anchor our everyday life somewhere </li></ul><ul><li>Some entrepreneurs move but most of them stay, even the internationalizing ones </li></ul><ul><li>We are all committed to place, especially small-business owner-managers </li></ul><ul><li>… .yet physical space is not the only one </li></ul>
  6. 6. Alternative Images of the Business of Doing Business <ul><li>The firm as a nexus of instrumental relations, created in order to exploit opportunities to the economic benefit of the few </li></ul><ul><li>The firm as an existential endeavour and carried by social and emotional relations </li></ul><ul><li>In the family business these two understandings of business coexist </li></ul>
  7. 7. Basic Statements about Founders, Firms and Localities <ul><li>Firms are initiated by persons – as human beings with passions and dreams </li></ul><ul><li>Firms emerge out of personal networks – which to a great extent are local </li></ul><ul><li>The potential of localized business activity is relational – not primarily associated with individual firms </li></ul>
  8. 8. The weaknesses of the family business make the strengths of ‘Gazelle’ firms <ul><li>Gazelle leaders are not economically motivated - they are existentially driven </li></ul><ul><li>Gazelle leaders are not pro-active - they are inter-active </li></ul><ul><li>Gazelle leaders do not plan – they improvize and practise bricolage </li></ul><ul><li>Gazelle leaders do not worship financial capital – they co-create and use human and social capital </li></ul>
  9. 9. Entrepreneurship is relational, social venturing <ul><li>All of us, also entrepreneurs and small-business owner-managers, craft oour own identities through relating </li></ul><ul><li>Relations, bonds of trust and the cultural embedding constitute entrepreneurship </li></ul><ul><li>The environment is enactable and socially constructed, enacted, by relating </li></ul>
  10. 10. Entrepreneurship is Collective – A Relational phenomon <ul><li>For good reasons most firms are family businesses </li></ul><ul><li>Entrepreneurship is about creative organizing, about committing others </li></ul><ul><li>Ventures sediment out of the personal network of the (would-be) entrepreneur </li></ul><ul><li>Sometimes collective entrepreneurship becomes very visible – especially in the industrial district as a localized cluster </li></ul>
  11. 11. The Gnosjö Industrial District <ul><li>The only territorial system in Sweden that is integrated (production, social and information) </li></ul><ul><li>In the l990s the economically most successful region in Sweden </li></ul><ul><li>Few firms are themselves entrepreneurial </li></ul><ul><li>Offers denser networks than induced localized clusters such as science parks </li></ul><ul><li>Invites to frequent lateral networking </li></ul><ul><li>Practises organic clustering at different levels </li></ul><ul><li>Firms balance local and non-local networking </li></ul>
  12. 12. Localized Business as Collective Entrepreneurship <ul><li>Acknowledges that all economic activity is socially embedded </li></ul><ul><li>Is a relational phenomenon </li></ul><ul><li>Is not (only) about collective efficiency but about providing a potential for business creation </li></ul><ul><li>Implies that the individual firm can amplify its own development conditions </li></ul>
  13. 13. Contrasting Two Rationales for Regional Entrepreneurship and Development <ul><li>The territorial rationale: Overview and action orientation; trusted others and shared practices; collective embodied knowledge </li></ul><ul><li>The functional rationale: Broad outlook and far-reaching mindmaps; many acquaintances and diverse talent; academic knowledge </li></ul>
  14. 14. Rural Urban Life-setting Focused Complex Outlook Local Global Contrasting Rationales for Local/Regional Development - the Territorial and the Functional Competence
  15. 15. The Myth of Functional Supremacy <ul><li>Science parks – no! Science ‘villages’ – yes! </li></ul><ul><li>Personal networking in cosmopolitan clusters </li></ul><ul><li>Personal communities, communities of practice </li></ul><ul><li>Temporal clusters, such as international trade fairs, operate as bridge-heads for localized clusters </li></ul>
  16. 16. Glocal Phenomena <ul><li>The digital revolution – far apart in physical space but close in social and mental space - and certainly in time </li></ul><ul><li>The emergent experience economy – close to individual consumers </li></ul><ul><li>Born globals – in mental and social space far ahead of materialization in physical space </li></ul>
  17. 17. The Role of Place as a Social Attractor for Born-Global Entrepreneurs <ul><li>Björn Lövstedt – Index: Creating a meaningful life for his mother </li></ul><ul><li>Staffan Preutz - Polaris: Creating own space in the family business; </li></ul><ul><li>Gunnar Liljedahl – Like: Creating a better life for the many through the public sector </li></ul>
  18. 18. Glocalization as a Generic Strategy <ul><li>Individuals as social animals instigate ventures where they belong </li></ul><ul><li>Only adventurous people who have a place where to return survive </li></ul><ul><li>Concentration of social and human capital build flexibility and feeds alertness to customers/consumers </li></ul><ul><li>Overview and diversity combine locally, creating capability to deal with environmental variety/ambiguity </li></ul>
  19. 19. Implications for Practice <ul><li>Support (local) contexts as organized settings – not individual firms </li></ul><ul><li>Encourage extrapreneurship to multiply firms and relations </li></ul><ul><li>Build absorptive capacity for complex competencies and diverse values – from inside and below! </li></ul><ul><li>Recognize the social and emotional dimension of entrepreneurship </li></ul>