This document discusses management theories that can help entrepreneurs start new businesses. It summarizes five theories: 1) Signaling theory explains how entrepreneurs can signal quality to attract investors. 2) Agency theory describes how venture capitalists monitor founders to align interests. 3) Pecking order theory explains how startup funding costs increase with information problems. 4) Intellectual capital theory shows how human capital, relationships and reputation contribute to startup success. 5) Resource-based theory proposes that startups succeed by exploiting rare, valuable resources that are difficult to imitate.
ETHICAL BUSINESS PRACTICES: A KEY TO SUCCESSFUL EXPORT TRADEIJMR Journal
The term ethics in simple layman’s words can be described as moral philosophy. The dictionary however says that the word “ethics” is derived from the Greek word “Ethikos” meaning customs or character. Since ethics is described as moral philosophy it could be elaborated by calling it a branch of philosophy and is considered a normative science because it is concerned with the norms of human conduct, as distinguished from formal sciences such as mathematics and logic, physical sciences such as chemistry and empirical sciences such as economics or psychology. The ethical practices in conducting the business may sounds to be difficult but in long run its fruits can be reaped by generations to come. In this paper, “Ethical Business Practices: A Key to successful export trade” an effort has been made to highlight the business practices at Tynor Orthotics Ltd having worldwide acceptability of the products which is the basic requirement for sustainability in the today’s global economy. The primary data has been collected directly through discussions with the officials related to Tynor and the secondary data has been collected from reports of Tynor and website. The ethical business practices followed at the Tynor has contributed a lot in the world wide acceptability of its products.
Systems thinking goes beyond the use of systems tools. In this presentation, delivered as a keynote at the 2019 Systems Innovation Conference in Barcelona, Philippe Vandenbroeck (shiftn.com) lays out a path to systems mastery that is grounded in a personal ethos and worldview as a basis for the capacity to apply tools, developing method and sustain the capacity for social learning in dealing with complex challenges.
5 Concepts for 21st Century HR Professionals to KnowR__Ganesh
This slide deck was used in a guest lecture at NL Dalmia Institute of Management, Mumbai to second year Master of HRD Management (MHRDM) students. It was adapted from a knowledge sharing session made to HR professionals at a global technology company
Governance & integrated thinking….through a responsible investor lens: The ch...Dr Raj Thamotheram
This presentation identifies that academic/practitioner collaboration could be the catalyst for a more integrated approach to governance and how this could address the failure of traditional corporate governance thinking to deliver value even its narrow frame of reference, leave aside taking account of wider mega-trends. The presentation also considers what academics can do differently to realise this potential.
Detailed Individual Assignment FormatLecture of 22nd February .docxsimonithomas47935
Detailed Individual Assignment Format
Lecture of 22nd February 2016
General Information
“The issue of linking the character traits of an individual to the success of a business – picking winners – needs to be approached with caution.”
Burns P (2011, pg 34) Entrepreneurship & Small Business, Palgrave Macmillan 3rd edition
Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’.
Discuss, with examples, whether or not your analysis supports Burns assertion.
Based on your analysis, what do you personally conclude about creating a successful new venture and entrepreneurial success?
Part 1: Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’. (Approx 300 words)
Discuss, with examples, whether or not your analysis supports Burns assertion.
Part 2
Internal (Endogenous)factors for his success (Approx 400 words)
Part 3
External (Exogenous) factors for his success(Approx 400 words)
Based on your analysis, what do you personally conclude about creating a successful new venture and entrepreneurial success?
Part 4 (Approx 400 words)
Reasons for a successful enterprise
Saras Saraswathy entrepreneurship
For general Introduction: Some interesting definitions
An entrepreneur is someone who perceives an opportunity and creates an organisation to pursue it.
Bygrave (1997)
Use an interesting description or two like this and highlight it.
An Entrepreneur is a person who identifies and starts a business venture,
sources and organizes the required resources,
and takes both the risks and rewards
associated with the venture.
1974 Borland talked about entrepreneurs having Internal locus of control
1979 Kirzner talked of them as arbitrageurs - ability to spot opportunities
Part 1
Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’.
A Chart to save word length on the Entrepreneur’s Journey.
(This is a rough draft; you can do it much better!)
Part Two
Endogenous factors
Locus of Control
Internal locus of control - Individuals who believe themselves to be in control of their own destiny
External locus of control - People who believe that their lives are dominated by chance events outside their own control or powerful people i.e. “fate” controls their destiny.
14
Core and Desirable Attributes
CORE ATTRIBUTES
Commitment & Determination
Leadership
Opportunity Obsession
Tolerance of Risk
Ambiguity & Uncertainty
Creativity, Self-Reliance and Adaptability (Water Logic)
Motivation to Excel
DESIRABLE ATTRIBUTES
Energy, Health, and Emotional Stability
Values
Capacity to Inspire
Creativity & Innovativeness
Intelligence
THE NON-ENTREPRENEURIAL ATTRIBUTES
Being Macho
Perfectionist
Impulsiveness
Being anti-
authoritarian
Counter/dependency
Knows .
Behavioural Meetup: Stuart Church on Darwin to DesignPrime Decision
This presentation from the Behavioural Meetup series explores how concepts and ideas about evolutionary systems can be applied to the way that we understand behaviour, and design products and services.
What can models of evolutionary cooperation tell us about customer relationships and service design? Can there be too much innovation? What lessons can evolutionary processes teach us about design processes?
More Related Content
Similar to The Art of the Start... with a little help from management theory Jan Rosier
ETHICAL BUSINESS PRACTICES: A KEY TO SUCCESSFUL EXPORT TRADEIJMR Journal
The term ethics in simple layman’s words can be described as moral philosophy. The dictionary however says that the word “ethics” is derived from the Greek word “Ethikos” meaning customs or character. Since ethics is described as moral philosophy it could be elaborated by calling it a branch of philosophy and is considered a normative science because it is concerned with the norms of human conduct, as distinguished from formal sciences such as mathematics and logic, physical sciences such as chemistry and empirical sciences such as economics or psychology. The ethical practices in conducting the business may sounds to be difficult but in long run its fruits can be reaped by generations to come. In this paper, “Ethical Business Practices: A Key to successful export trade” an effort has been made to highlight the business practices at Tynor Orthotics Ltd having worldwide acceptability of the products which is the basic requirement for sustainability in the today’s global economy. The primary data has been collected directly through discussions with the officials related to Tynor and the secondary data has been collected from reports of Tynor and website. The ethical business practices followed at the Tynor has contributed a lot in the world wide acceptability of its products.
Systems thinking goes beyond the use of systems tools. In this presentation, delivered as a keynote at the 2019 Systems Innovation Conference in Barcelona, Philippe Vandenbroeck (shiftn.com) lays out a path to systems mastery that is grounded in a personal ethos and worldview as a basis for the capacity to apply tools, developing method and sustain the capacity for social learning in dealing with complex challenges.
5 Concepts for 21st Century HR Professionals to KnowR__Ganesh
This slide deck was used in a guest lecture at NL Dalmia Institute of Management, Mumbai to second year Master of HRD Management (MHRDM) students. It was adapted from a knowledge sharing session made to HR professionals at a global technology company
Governance & integrated thinking….through a responsible investor lens: The ch...Dr Raj Thamotheram
This presentation identifies that academic/practitioner collaboration could be the catalyst for a more integrated approach to governance and how this could address the failure of traditional corporate governance thinking to deliver value even its narrow frame of reference, leave aside taking account of wider mega-trends. The presentation also considers what academics can do differently to realise this potential.
Detailed Individual Assignment FormatLecture of 22nd February .docxsimonithomas47935
Detailed Individual Assignment Format
Lecture of 22nd February 2016
General Information
“The issue of linking the character traits of an individual to the success of a business – picking winners – needs to be approached with caution.”
Burns P (2011, pg 34) Entrepreneurship & Small Business, Palgrave Macmillan 3rd edition
Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’.
Discuss, with examples, whether or not your analysis supports Burns assertion.
Based on your analysis, what do you personally conclude about creating a successful new venture and entrepreneurial success?
Part 1: Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’. (Approx 300 words)
Discuss, with examples, whether or not your analysis supports Burns assertion.
Part 2
Internal (Endogenous)factors for his success (Approx 400 words)
Part 3
External (Exogenous) factors for his success(Approx 400 words)
Based on your analysis, what do you personally conclude about creating a successful new venture and entrepreneurial success?
Part 4 (Approx 400 words)
Reasons for a successful enterprise
Saras Saraswathy entrepreneurship
For general Introduction: Some interesting definitions
An entrepreneur is someone who perceives an opportunity and creates an organisation to pursue it.
Bygrave (1997)
Use an interesting description or two like this and highlight it.
An Entrepreneur is a person who identifies and starts a business venture,
sources and organizes the required resources,
and takes both the risks and rewards
associated with the venture.
1974 Borland talked about entrepreneurs having Internal locus of control
1979 Kirzner talked of them as arbitrageurs - ability to spot opportunities
Part 1
Select an ‘entrepreneur’ and analyse their entrepreneurial journey, from the conception of the initial idea through to start-up & ‘growth’.
A Chart to save word length on the Entrepreneur’s Journey.
(This is a rough draft; you can do it much better!)
Part Two
Endogenous factors
Locus of Control
Internal locus of control - Individuals who believe themselves to be in control of their own destiny
External locus of control - People who believe that their lives are dominated by chance events outside their own control or powerful people i.e. “fate” controls their destiny.
14
Core and Desirable Attributes
CORE ATTRIBUTES
Commitment & Determination
Leadership
Opportunity Obsession
Tolerance of Risk
Ambiguity & Uncertainty
Creativity, Self-Reliance and Adaptability (Water Logic)
Motivation to Excel
DESIRABLE ATTRIBUTES
Energy, Health, and Emotional Stability
Values
Capacity to Inspire
Creativity & Innovativeness
Intelligence
THE NON-ENTREPRENEURIAL ATTRIBUTES
Being Macho
Perfectionist
Impulsiveness
Being anti-
authoritarian
Counter/dependency
Knows .
Behavioural Meetup: Stuart Church on Darwin to DesignPrime Decision
This presentation from the Behavioural Meetup series explores how concepts and ideas about evolutionary systems can be applied to the way that we understand behaviour, and design products and services.
What can models of evolutionary cooperation tell us about customer relationships and service design? Can there be too much innovation? What lessons can evolutionary processes teach us about design processes?
Similar to The Art of the Start... with a little help from management theory Jan Rosier (20)
Behavioural Meetup: Stuart Church on Darwin to Design
The Art of the Start... with a little help from management theory Jan Rosier
1. The Art of Start:
...with a Little Help from
Management Theory
Jan Rosier,
Elan Chair of the Business of Biotechnology
UCD Michael Smurfit Graduate School of Business &
School of Biomolecular and Biomedical Science
February 19th 2014
2. 1 What is a management theory?
A management theory attempts to
explain and predict social phenomena
as they occur in organizations
Management research is a
systematic inquiry into
social phenomena in
organisations that
increases our knowledge
about organisations and
the individuals in these
organisations
J Rosier – Elan Chair of the Business of Biotechnology
2
3. Examples of management theories
Why are some people successful in making other people ‘follow’ them?
Transformational
theory
J Rosier – Elan Chair of the Business of Biotechnology
3
4. Examples of management theories
Do CEOs, and the decisions that they take, matter?
Population
ecology
theory
J Rosier – Elan Chair of the Business of Biotechnology
4
5. Examples of management theories
How do firms grow?
Theory of the
growth of the firm
J Rosier – Elan Chair of the Business of Biotechnology
5
6. Examples of management theories
Why are some firms more productive?
Stupiditybased
theory of
organisations
J Rosier – Elan Chair of the Business of Biotechnology
6
7. 2. Why is theory useful?
There is
nothing more
practical than
a good theory
Kurt Lewin (1890-1947)
J Rosier – Elan Chair of the Business of Biotechnology
7
8. 2. Why is theory useful?
Knowledge is
constructed on
cognitive structures
and is used to
understand – and
increase your
understanding – of
the world around you
Jean Piaget (1896-1980)
J Rosier – Elan Chair of the Business of Biotechnology
8
9. 5 theories
that will help you
think about start-up’s
J Rosier – Elan Chair of the Business of Biotechnology
9
10. 1
Signalling theory
(Spence, 1973, 1974;
Podolny, 1993, 2005):
Signaling theory describes
behavior when two parties
have access to different
information. The sender
signals information, to its
own benefit, and modifies
the behavior of the
receiver
Young springbok Antidorcas marsupialis
‘stotting’ or ‘pronking’
J Rosier – Elan Chair of the Business of Biotechnology
10
11. 2
Agency theory (Principal –
Agent theory)
(Gompers & Lerner, 1999;
Sahlman, 1990)
A ‘principal’ (VC) monitors an
‘agent’ (biotech entrepreneur)
to align their interests to
create shareholder value
under conditions of
information asymmetry
J Rosier – Elan Chair of the Business of Biotechnology
11
12. 3
Pecking Order
theory
(Corporate finance Roberts, 1991; Watson
and Wilson, 2002): the
cost of financing
increases with
asymmetric
information
J Rosier – Elan Chair of the Business of Biotechnology
12
13. 4
Intellectual Capital
theory
(Theoretical foundation
in information
economics –
Understanding how
human, structural,
relational, reputational,
and social capital
contribute to the value
and survival of the firm)
J Rosier – Elan Chair of the Business of Biotechnology
13
14. 5
Resource Based theory
(Barney and Clark, 2007):
Why do some firms
achieve better economic
performance than others
continuously?
J Rosier – Elan Chair of the Business of Biotechnology
14
24. A MORAL
HAZARD
SITUATION
A ‘moral hazard’ occurs
when an agent with more
information to act has the
intention to behave
inappropriately from the
perspective of the agent
with less information
J Rosier – Elan Chair of the Business of Biotechnology
24
25. ‘Any situation in which
one person makes the
decision about how much
risk to take, while
someone else bears the
cost if things go badly’
(Paul Krugman, Nobel
Prize 2008)
J Rosier – Elan Chair of the Business of Biotechnology
25
28. 1
R&D scientists can take
directions that affect the
direction of the
whole company
R&D
CEO
‘...single
individuals can
sometimes take
initiatives that
affect the
direction of the
entire company’
Grove, 1996; Burgelman et al., 2004; Christensen and Diehl, 1997
28
29. 2
R&D scientists are
autonomous and
independent knowledge
workers
CEO
R&D
‘A knowledge worker in life
science R&D is a selfmonitoring and enterprising
agent, basically outside of the
full control of management’
Alvesson, 2004; Florida, 2002; Marks, 2011
29
31. 4
R&D scientists have
knowledge that CEOs
have difficulty to imagine
CEO
R&D
‘R&D did not feel their
top managers were
capable to see the full
implications of the new
tools and techniques’
Styhre, 2009
31
32. VC’s will interfere with the USO
as predicted by agency theory...
i. Affirmative covenants
ii. Negative covenants
iii.Non-compete clauses
iv.Board representation
v. Special voting rights
vi.Dismiss management clause
vii.Monitoring devices
viii.Bad leaver clause
ix.Stand still
x. Force an exit
because of .... moral hazard
J Rosier – Elan Chair of the Business of Biotechnology
32
39. EU
Reputational
capital
l
a
u
ct ty
T
lle vi
S
TI
te ra
N
n g
IE
I
C
R
A
T
S
SUCCESS
t
of is t
sc a he
ie s
nt ta va
is r lu
t?
e
Structural
capital
Intellectual
Capital
(leading to
IP)
Human
capital
R
Social
capital
S
W
ha
Relational
capital
J Rosier – Elan Chair of the Business of Biotechnology
39
40. EU
R
For each article written by a starscientist, as or with a firm as
employee, additional funds of an
average of 1.1 million $ are obtained
(Darby and Zucker, 2002)
l
a
u
ct ty
T
lle vi
S
TI
te ra
N
n g
IE
I
C
R
A
T
S
SUCCESS
S
J Rosier – Elan Chair of the Business of Biotechnology
40
41. The Matthew effect
in start-up management
‘For all those who have,
more will be given and they
will have an abundance;
but from those who have
nothing even what they
have will be taken away’
(Matthew 25,29)
41
44. Biotech question:
Why are some biotech/pharma firms more
effective in developing new patentable drugs
than others? (Henderson and Cockburn, 1994)
Answer: it is caused by their ‘architectural
competence’: the ability to facilitate cooperation among
the different scientific disciplines required to develop
patentable drugs
J Rosier – Elan Chair of the Business of Biotechnology
44
45. If a firm has resources that are:
• valuable,
• rare, and
• costly to imitate, and…
• the firm is organized to exploit these resources,
That are combined into capabilities then the firm can
expect to enjoy a sustained competitive advantage.
J Rosier – Elan Chair of the Business of Biotechnology
45
46. The Question of Value
• in theory: Does the resource enable the firm
to exploit an external opportunity?
• in practice: does the resource result in a
continued flow of new ideas?
J Rosier – Elan Chair of the Business of Biotechnology
46
47. The Question of Rarity
• if a resource is not rare, then perfect competition
dynamics are likely to be observed (i.e., no
competitive advantage, no above normal profits)
• a resource must be rare enough that perfect
competition has not set in
J Rosier – Elan Chair of the Business of Biotechnology
47
48. The Question of Imitability
• the temporary competitive advantage of valuable
and rare resources can be sustained only if
competitors face a cost disadvantage in imitating
the resource
» intangible resources are usually more costly to imitate than tangible resources
J Rosier – Elan Chair of the Business of Biotechnology
48
49. The Question of Organization
• a firm’s structure and control mechanisms
must be aligned so as to give people ability
and incentive to exploit the firm’s resources
• Examples: formal and informal reporting structures,
management controls, compensation policies,
relationships, etc.
J Rosier – Elan Chair of the Business of Biotechnology
49
50. RECIPE FOR SUSTAINED ADVANTAGE
Valuable?
Yes
Yes
Yes
Yes
Disadvantage
Below
normal
Normal
Temporary
Advantage
Above
normal
Sustained
Advantage
Above
normal
No
Yes
Economic
Implications
No
Yes
Competitive
Implications
Parity
No
Exploited by
Organization?
No
Rare?
Costly to
Imitate?
Yes
SUCCESFULL USO
J Rosier – Elan Chair of the Business of Biotechnology
50