During the last couple twelvemonth entrepreneurship has become a popular field of survey in the universities, but besides in the society, harmonizing to Landstrom ( 2009 ). But if we go back in the history the research about entrepreneurship started already in the 1860s, and was by so rooted in the field of political scientific discipline and disposal. Richard Cantillon and Jean Baptiste Say are the 1s who introduced the construct of entrepreneurship in the economic scientific discipline ( Landstrom, 2009 ). Since the survey of entrepreneurship as phenomena is relatively new, research workers have found it difficult to hold on a generic definition of the kernel in entrepreneurship ( Campbell & A ; Mitchell, 2012 ). Even though the definitions of entrepreneurship take on different positions and attacks, one common idea is that entrepreneurship is about the ability to place and work chances ( Cunningham & A ; Lischerson, 1991 ; Petersen, 1985 ; Shane & A ; Venkataraman, 2000 ).
Today, the entrepreneurship and the entrepreneurial activities in the universe have grown harmonizing to Global Entrepreneurship Monitors ( GEM ) national study for 2012. The survey includes 54 different states and 140 000 persons in the age of 18-64. From 2010 to 2011 there was an addition of entrepreneurial activities with 22 per centum, which can be explained by a more positive attitude towards entrepreneurship and an upturn in the economic system ( Braunerhjelm et al, 2012 ).
The entrepreneurial procedure explains the different phases for an enterpriser, from the designation of the chance to the execution and growing of the thought. An of import portion of this procedure is the web ( Bygrave, 2004 ). Lea, Yu, Maguluru and Nichols ( 2006 ) specify a web as a set of people that is connected by meaningful relationships. For an enterpriser with a freshly started concern, a big web is high valued and can be an of import door opener. A web can be utile for an enterpriser since it can supply resources such as new information, new employers and entree to different distribution channels ( Greve & A ; Salaff, 2003 ). Therefore is an entrepreneurs web ever altering, since the concern is required different resources during the entrepreneurial procedure ( Klyver & A ; Grant, 2010 ). The societal web of an enterpriser can besides supply a great repute of its concern ( Klyver, Hindle & A ; Meyer, 2008 ). Because of the technological development the usage of societal web sites ( SNS ) have become a great usage for marketing a concern. The SNS chief intent is to keep bing webs and connect alien with similar involvement or beliefs to each other ( Boyd & A ; Ellison, 2008 ). The most used societal web sites today are LinkedIn and Facebook ( Indrupati & A ; Henari, 2003 ). Facebook has over one billion utilizations worldwide in February 2012 ( Witek & A ; Grettano, 2012 ).
The intent of this study is to explicate how networking can be utile for an enterpriser and how the web is act uponing the entrepreneurial procedure. The study besides aims to explicate the development of networking over clip.
In this portion different definitions and theories will be presented, that are relevant for the topic of networking and entrepreneurship. There will besides be a portion that connects the topics to each other.
Entrepreneurship as a field of survey is relatively new in relation to other Fieldss such as leading and selling ( Campbell & A ; Mitchell, 2012 ). As a consequence of this, there is no general understanding of what entrepreneurship is or what it does ( Churchill & A ; Lewis, 1986 ). The field of entrepreneurship is defined as “ the scholarly scrutiny of how, by whom, and with what effects opportunities to make future goods and services are discovered, evaluated, and exploited ” ( Shane & A ; Venkataraman, 2000, p. 218 ). Gartner ( 1985 ) means that an enterpriser is frequently linked to the laminitis of new concern, while Peterson ( 1985 ) refers to an enterpriser as a individual who is able to place and work an chance. Shane and Venkataraman ( 2000 ), on the other manus, argue that entrepreneurship include more than get downing new organisations. Entrepreneurship can be viewed in a figure of different positions and the term is used to specify the activities that are related to entrepreneurship such as initiation, creative activity, accommodating and pull offing a venture ( Cunningham & A ; Lischeron, 1991 ). Bamoul ( 1990 ) see that an enterpriser is watchful and active in the hunt for chances for self-gain. Much of the consequences of entrepreneurship increases the wealth in the society or additions the economic system, which besides enriches the enterpriser. But entrepreneurship does n’t hold to be good for the society. Entrepreneurship can be destructive and merely reassign wealth from one individual to another ( Campbell & A ; Mitchell, 2012 ).
Smith ( 1967 ) did one of the earliest surveies in the field of entrepreneurship where he made the premise that a house created by an enterpriser is reflected by the type of the enterpriser. He identified two types of enterprisers ; the craftsman enterpriser and the timeserving enterpriser. The craftsman enterpriser is a individual with a lower instruction who prefers manual work. The chief force for the craftsman enterpriser is to be able to back up the household. As a leader the craftsman enterpriser tends to be paternalistic and follow a stiff concern scheme. The timeserving enterpriser is described as a individual with higher instruction and is more prone to be a leader and spread out the concern than the craftsman enterpriser. The timeserving enterpriser is more proactive to market their house and develop more advanced schemes ( Smith, 1967 ).
Research workers have tried to separate the enterpriser from the nonentrepreneur and have come up with three accounts ; personality differences, cognitive differences and societal web differences ( Dyer, Gregersen & A ; Christensen, 2009 ). Many research workers have tried to associate the enterpriser to different personality traits. One of these theoretical accounts is called the “ great individual ” school of entrepreneurship. The focal point in this point of view is that enterprisers are born with certain traits or qualities, which differentiates them from the crowd ( Garfield, 1986 ). The enterpriser is described as a individual who is risk-taking, have a demand for accomplishment and a high venue of control. This attack assumes that enterprisers are a homogenous group, which they are non since they tend to get down concern by a batch of different grounds ( Carter & A ; Jones-Evans, 2006 ).
The “ great individual ” theory has besides been used in the field of leading where research workers came to the decision that lone traits are non plenty to explicate who will go a successful leader and who will non ( Yukl, 2010 ). When it comes to the cognitive differences, enterprisers frequently seems to be more motivated to prevail in prosecuting new chances and thoughts than nonentrepreneurs ( Busenitz & A ; Barney, 1997 ). Entrepreneurs are more able to detect chances since they are good at acknowledge tendencies and alterations in the society ( Baron, 2006 ). Research about the enterprisers ‘ societal webs has come to the decision that societal webs will find the measure and quality of information that the enterpriser will have. It will besides find how fast the enterpriser will acquire the information that is necessary to detect profitable chances ( Uzzi & A ; Spiro, 2005 ). Entrepreneurs tend to hold a larger and more diverse web than nonentrepreneurs ( Stuart & A ; Ding, 2006 ). Gartner ( 1989, p. 57 ) have argued for the behavioral attack and claims that “ research on the enterpriser should concentrate on what the enterpriser does, non who the enterpriser is ”.
Entrepreneurs behave in a specific manner harmonizing to Dyer, Gregersen and Christensen ( 2009 ). They mean that the enterprisers have an active behavior ; they ask inquiry, observe, experiment and web with other people to happen the chances. After the find of an chance the enterprisers are able to rapidly implement the thought in the market ( Dyer et al., 2009 ).
The entrepreneurial procedure
The entrepreneurial procedure starts with an chance and the demand for the enterpriser to work the chance. What sort of chance the enterpriser is able to acknowledge is specific to his/hers environment and earlier experiences. After the chance is discovered it is up to the enterpriser to make up one’s mind how to transform the chance into a concern. The undermentioned stairss in the entrepreneurial procedure will dwell of seeking of information, advice on how to continue, reassurance that it will work and resources of equipment, infinite and money ( Birley, 1985 ).
Many laymans equate entrepreneurship as the act of making or contriving an thought or concept that finally proves to fulfill the demands of multiple stakeholders ( Brockner, Higgins & A ; Low, 2004 ). However, a big figure of ventures do non accomplish success. One of the chief grounds for the high mortality rate is the enterprisers ‘ deficiency of ability to develop and pull off their concerns ( SEBRAE, 2005c ). This underpins the importance of apprehension and analysing the entrepreneurial procedure. Based on Moore ‘s theoretical account, Bygrave ( 2004 ) presents the entrepreneurial procedure as a set of phases and events that follow one another. These phases are: the thought or construct of the concern, the event that triggers the operations, execution and growing. In his theoretical account of the entrepreneurial procedure ( Figure 1 ), Bygrave ( 2004 ) highlights the critical factors that drive the development of the concern at each phase.
Figure 1. Model of the Entrepreneurial Procedure
Beginning: Bygrave, W. D. ( 2004 ). The entrepreneurial procedure. In W. D. Bygrave & A ; A. Zacharakis ( Eds. ). The portable MBA in entrepreneurship ( p. 3 ). Hoboken, NJ: John Wiley & A ; Sons.
As can be seen above, every portion of the procedure is necessary for an endeavor. The invention is merely the beginning of the procedure, working the chance, triping the event and set it into pattern is the existent organic structure of growing. In looking to lend to the designation and apprehension of the behaviour that may take an enterpriser to success. Surveies by McClelland ( 1987 ) set forth the undermentioned entrepreneurial features: seeking chances and inaugural, designation of chances, ability to respond to defeat and ‘stressing ‘ state of affairss, demand for quality and efficiency, committedness, set uping ends, planning and systematic monitoring, persuasion and a web of contacts, and independency. Filion ( 1999 ) has stated that the literature frequently points out that entrepreneurs actively strive to accomplish ends, and that they develop doggedness and creativeness, every bit good as the ability to observe chances and that they are agents for alteration, which is they do new and different things.
De Clerk and Arenius ( 2003 ) province that there is a relation between human capital, i.e., the experience and apprehension of the enterpriser, and the success of the entrepreneurial activity, so that those who are best educated and put more resources in bettering their abilities are more disposed to harvest the benefits through their entrepreneurial activities. Environmental factors besides include sociological factors such as: function theoretical accounts, household duties, the tradeoff between the experience that comes with age and the optimism and energy of young person, and contacts ( a web of personal relationships ). Chay ( 1993 ) besides identifies sociological factors as: household civilization, web of personal relationships, past experiences, parents and function theoretical accounts.
A bulk of network-based research has noted the importance of both societal and economic contexts of the new venture creative activity procedure, and within these contexts, trust has been systematically identified as an indispensable constituent to this procedure ( Smith & A ; Lohrke, 2008 ). In the succeeding phases of the concern, from execution to full organisational development in the growing phase, other personal properties become of import. These are: vision, leading, entrepreneurial spirit, direction ability and committedness ( Nassif, Ghobril & A ; Silva, 2010 ). The theoretical account clearly analysing the entrepreneurial procedure from portion to portion, depicting the switching importance given to personal, sociological and environmental properties throughout the development of the concern.
A web can be defined in different ways, but in general it is defined as a set of people or organisations that is connected by ongoing meaningful relationships ( Lea, Yu, Maguluru & A ; Nichols, 2006 ). Networking can be seen as advertisement of an enterpriser and its concern and it is an easy and inexpensive method to make mark market ( Indrupati & A ; Henari, 2012 ). Networks do non necessitate to be a specific size or heterogeneousness to be considered a web ( Lea, et al., 2006 ). Since an enterpriser requires different resources during different stages in the entrepreneurial procedure, the web is something that is invariably altering ( Klyver & A ; Grant, 2010 ).
Entrepreneurs have a great usage of their societal web because it complements their resources by giving them support and supplying new information and entree to different distribution channels. An enterpriser can utilize its societal web to acquire important information, shorten way to knowing people and make new relationships ( Greve & A ; Salaff, 2003 ). The societal web of an enterpriser can besides supply new valuable resources such as of import information, entree to finance and accomplishments and great repute ( Klyver, Hindle & A ; Meyer, 2008 ).
With the technological development, the societal webs sites ( SNS ) have become immense portion of peoples lives ( Boyd & A ; Ellison, 2008 ). Network sites as LinkedIn and Facebook has become the top media sites to utilize for entrepreneurial networking ( Indrupati & A ; Henari, 2003 ). Facebook was founded in February 2004 and has over on billion users worldwide merely eight old ages subsequently ( Witek & A ; Grettano, 2012 ). There are two chief intents of societal webs sites ; to maintenance preexistent webs and to assist people link to each other. The SNS differ in two ways ; in audience and in incorporate of new information ( Boyd & A ; Ellison, 2008 ). SNS is besides utile for people to portion cognition, experience and involvement ( Lea, et al., 2006 ). It has besides been shown that SNS can be of import for the ability to be advanced ( Magnier-Watanabe, Yoshida & A ; Watanabe, 2010 ).
Social web influence the entrepreneurial procedure most when it comes to place an chance and mobilise resources to work it ( Stuart & A ; Sorenson, 2001 ). When it comes to the “ chance ” stages in the entrepreneurial procedure, societal webs influence the ability to happen and acquire entree to new chances. The web can besides actuate people to prosecute an chance. When traveling over to the organisation creative activity, the societal web affects the squad formation, capital accretion and employee enlisting ( Martinez & A ; Aldrich, 2011 ). ( Something more about squad, capital and employer ). After the organisation creative activity stage, the exchange phase Begins, which means that the web alterations because the company exchanges resources with providers, clients and other involvements ( Martinez & A ; Aldrich, 2011 ).
Strong and weak ties
The “ strength ” of an interpersonal tie can be defined as, a ( likely linear ) combination of the sum of clip, the emotional strength, the familiarity ( common confiding ), and the mutual services, which characterize the tie ( Granovetter, 1973 ). The relationship between people, harmonizing to the “ strength ”, can be divided into strong ties and weak ties. For illustration, a really close friend, co-workers who work together and frequently exchange thoughts are strong ties. And people who merely meet some times, high school schoolmates that have no contact for a long clip, are weak ties.
Granovetter ( 1973 ) thought that weak ties are frequently more powerful than strong ties in societal webs. Here, he proposed a construct of “ Bridge ” ; this is a line in a web, which provides the lone way between two points ( Harary, Norman, and Cartwright 1965, p. 198 ). No strong tie is a span. All Bridgess are weak ties ( Granovetter, 1973 ).
The sense of “ Bridge ” is that it can associate two different societal groups. Weak ties as a “ span ”, the person can come into contact with more people, every bit good as crossbeam the greater societal distance which strong ties can non be achieved. Strong ties exist by and large in little groups, because persons in little groups tend to hold the same involvements and cognition, and easier to construct strong ties between persons. Strong ties guarantee the exchange of information and cognition between persons. Therefore, in little groups, the cognition and information of other persons are non of import value to another ( because it is really easy to cognize, or already cognize ). The stronger the tie connecting two persons, the more similar they are, in assorted manner ( Berschied & A ; Walster 1969, pp. 69-91 ; Bramel, 1969, pp. 9-10 ; Brown 1965, pp. 71-90 ; Laumann 1968 ; Newcomb 1961, fellow. 5 ; Precker 1952 ). Weak ties frequently exist in different societal groups.
Weak ties make it possible for different groups to interchange information and cognition. Those to whom are decrepit tied are more likely to travel in circles different from our ain and will therefore hold entree to information different from that which we receive ( Granovetter, 1973 ). From this position, weak ties have more advantages to strong ties.
From direction Perspective, endeavors should attach importance to the function of weak ties, because of the weak ties, on the one manus, they have entree to the resources of heterogeneousness, and heterogenous resources is considered to be an of import beginning of concern invention. On the other manus, by weak ties, endeavors can come in the larger societal web, which helps endeavors acquire more valuable information and resources ( non mention ).
The web of an enterpriser ( drumhead )
This exploratory survey was conducted in three independent instances of little INVs. The instance method facilitates a deeper apprehension of the context ( Yin, 2003 ) and is of import for general nucleus competency apprehension ( Eden & A ; Ackermann, 2000 ). The chief informations beginnings of this paper were primary informations and secondary informations consist of a sum of 65 personal interviews with 38 respondents. The choice of respondents was achieved through sweet sand verbena sampling. Potter ( 1996 ) describes the sweet sand verbena technique as one that begins with a purposive sample in which cardinal sources who can supply of import penetrations are selected. Snowball sampling can be placed within a wider set of link-tracing methodological analysiss that seek to take advantage of the societal webs of identified respondents and supply a research worker with an ever-expanding set of possible contacts ( Spreen, 1992 ). This procedure is based on the premise that a “ bond ” or “ nexus ” exists between the initial sample and others in the same mark population, leting for a series of referrals within a circle of familiarities ( Berg, 1988 ).
Besides the proprietor, directors, former employees, concern spouses, friends, household members, providers, and clients where interviewed. The interviews were informal and done in individual, and the interview usher consisted of open-ended inquiries. Respondents were, for case, asked to depict the house ‘s concern from both engineering and market positions, and from entrepreneurial and competency positions. They were besides asked to depict the house ‘s most of import competences and resources, for case how they had developed and where being used. The locations of the interviews depended on the respondents and were held in multiple states. Each interview was between on and four hours, and were recorded, canned and set out to the respondents for rectification and confirmation.
Secondary informations were collected through one-year studies, internal study, exposure, newspaper articles, memos, and contracts. If available, other academic surveies ( undergraduate and/or alumnus ) look intoing the vase companies have been used as secondary informations. This heterogenous attack enhances multiple aspects and installations comprehension and analysis, and has a double intent: foremost, to enrich the empirical instance with thick descriptions, which improves its trustiness and enhance content cogency ( Rouse & A ; Daellenbach, 1999 ) ; and 2nd, to heighten dependability by triangulating the information and method ( Creswell, 1994 ).
The analysis of qualitative informations consists of informations decrease, informations show and decision drawing/verification, harmonizing to three concurrent flows of activity ( Miles and Huberman, 1994 ).
Data decrease refers to the procedure of selecting, concentrating, simplifying, abstracting, and transforming the informations that appear in written field atoms or written texts. The decrease of the empiric collected for this survey began instantly after an interview. The information decrease at this phase is the procedure of identifying, coding and categorizing the primary forms in the information ; in other words, analyzing the content of interviews, paperss and the observations. The analysis began by reading through all of the field notes from the interviews and the paperss and so spliting them up. Since there are three vases with multiple respondents in each, it was of import to synchronize and categorize their replies to keep a logical flow.
The construction and cryptography was done harmonizing to the lineation of the theory. Data show is the 2nd major flow of analysis activity. By and large, a show is an organized, compressed assembly of information that permits decision pulling. For qualitative research workers, the typical manner of show has been extended, unreduced text normally in the signifier of written field notes, which the analyst scans through, attaching codifications and so pull outing coded section and pulling decisions. The tierces watercourse of analysis activity is decision pulling and confirmation. It is at this phase that the research worker begins to make up one’s mind what things mean by observing regularities, forms, accounts, possible constellations, insouciant flows, and propositions.
Data analysis is widely recognised as the most hard and least structured country of instance survey research ( Eisenhardt, 1989 ). To get the better of this failing, two signifiers for analysis were used. Consequences of this survey were analysed from a within-case position and a cross-case position. In the within-case analysis, the grounds from each of the three instances was analysed individually using the frame of mention as a footing. This frame, which is a combination of theories on the countries of entrepreneurship and strategic direction, helps us understand the instance. Any similarities or unsimilarities compared to the frame of mention and to the theoretical model will be the findings of the within-case analysis. Once the within-case analysis is complete, a cross-case analysis will be initiated to bring out cross-case forms. Consequently, the analysis will concentrate on issues and facets that can merely be understood by comparing the instances. For cogency grounds, the findings were written in vase study of which the following subdivision of this paper is an extract. Most of the respondents independently read through their transcripts and corrected this study before composing the concluding bill of exchange of the instance. The findings were besides verbally presented and discussed with co-workers.
4 Description of the initial competences
This portion consist a sum-up of three different instances ; Polaris, Index and Liko. These sum-ups are based on case-materials handed out during a talk in entrepreneurship. It is these three instances that will be analyzed with the theoretical findings in the field of networking.
4.1 Case Polaris
Polaris, a privately-owned niche company that designs, signifiers, develops, industries and sells rimless eyewear. Staffan Preutz, the present proprietor and president of the company, started the company together with an associate in northern Sweden in 1979. Staffan Preutz realized that he wanted to plan and fabricate spectacless while he was working in his male parent ‘s horologists and ocular shop during his adolescent period. His experience and endowment of design enable him to be the innovator in the spectacless field.
Polaris moves towards the universe successfully. One of the factors is the strong web. In Staffan ‘s sentiment, one of the chief grounds to internationalise his concern was to go and run into new people. When he was 15 old ages old, Staffan Preutz started a young person inn for the hitchhikers from different parts of Europe. He enjoyed meeting and speaking to new people. He established many connexions during five old ages, which he still has today. Furthermore, besides bettering his English, he learned about different civilizations, imposts and traditions and most of import, how to cover with different nationalities. During 1960s and 1970s Staffan Preutz travelled often to some makers in different parts of Europe. All the going made him able to develop a web with of import participants in the industry.
In the summer of 1979, during a tradeshow in Milano, Staffan bumped into an American which was acquainted with Staffan through Staffan ‘s connexions during his clip as a interior decorator in France. This individual had 18 top-end French-American optical shops named “ Blue Jeans ” and he was interested in get downing to sell Polaris ‘s merchandises. Polaris started successfully to sell eyewear to this concatenation in USA from late 1979. In 1981, he wrote to some friends in Washington and requested to see them. There was a household from Boden, where the adult male was captain in the military and the adult females was a homemaker, and they used to be clients while Staffan was working in his male parent store.
During 1980 and 1981, this homemaker had been an agent for the Polaris aggregation in USA without any success. But the party for Staffan arranged by the twosome changed the state of affairs for Polaris. Staffan met a miss who helped him to set up Polaris USA and it turned out to be really profitable. The petition for Polaris ‘s merchandises had besides increased tremendously thanks to the Swedish King and Queen. Staffan wrote a missive to the King trusting the King and the Queen could have on Polaris ‘s spectacless during the visit to the Olympics in the United States and they agreed. Later, Royal Polaris appeared. In 2002, a Canadian named David Opie who bought a brace of eyewear of Polaris called Staffan and requested in going an agent for Polaris in the US. As he got back to North American, he started a new company. Soon, the company becomes a successful multimillion company in North America.
Fritz, an lens maker who Staffan had made connexions with, entered the German market and requested to go spouse with Staffan by set uping a fabrication installation in Germany. Consequently, a joint venture was established. The concern gave net incomes from the really beginning and the demand for Swedish rimless spectacless grows enormously. In 1980, a French-American lens maker which had started to sell Polaris ‘s aggregation in the US had a friend in France, Pierre Marly, which was besides interested in start merchandising Polaris ‘s merchandises. Marly had 10 shops in the metropolitan Paris, and hence, in 1981, Staffan started to besides plan spectacless entirely for his concatenation in Paris.
When Preutz was working at a British monocle maker in 1971, he had established a friendly relationship with Lengton who at that clip still was in the eyewear industry. Staffan asked Lengton and his sister to work for him. In 1982, Staffan met another Englishman, Mr. Wilde, which was an familiarity of Lengton. This individual had a company that manufactured optical spectacless. He had seen Polaris ‘s merchandise at a tradeshow and was now interested in start bring forthing and marketing them in UK. Consequently, Lengton and his married woman, Staffan ‘s sister Ann-Marie, moved back to United Kingdom and started to sell Polaris spectacless on experimental bases together with Mr. Wilde. In 1983, Polaris started a joint venture, Polaris UK. The English market has been and still is one of the most profitable 1s for Polaris.
In 1983, the proprietor of a major top-end Nipponese optical concatenation contacted Polaris. This adult male, Mr. Iwaki, had seen Polaris ‘s merchandises in one of the “ Blue Jeans ” shops at Fifth Avenue in New York. Consequently, Staffan has a joint venture with Mr. Iwaki. Staffan has during his clip in Japan learnt much about the Nipponese civilization. Staffan ‘s experience in Japan besides changed him as a director and concern proprietor. Today, the Nipponese market is, together with the British, the two most important markets for Polaris. The aggregation offered in Japan is different from the remainder of the universe.
In 1987, Staffan met a Swedish household during one holiday in Australia. This household had a little fabrication installation outside Brisbane in Australia and as they talked more and more, Staffan became interested in puting in a subordinate in Australia. After a selling research, Polaris established a entirely owned subordinate in Brisbane. Staffan uses his web to internationalise his company, whatever it is successful or failed and in web, weak ties are even more of import to some extent.
4.2 Case Index
Index Braille AB is a company which manufactures and sells high-technology and high quality Braille pressmans. The company is the world-leader within the section of selling individual and double-sided Braille embossers with high publishing velocity. It has 13 employees and a turnover of 36 MSEK in the twelvemonth 2007 and 97 per cent of the house ‘s entire gross revenues are exported to around 80 states in the universe. The company was established in 1982 by the present proprietor and CEO Bjorn Lofstedt together with Torvald Lundqvist. Bjorn ‘s male parent worked at steel mills, it helped Bjorn to be fascinated with mechanics. His female parent was blind but was really societal and interested in run intoing new people and Bjorn became a good helper of his female parent.
Therefore, when he found his female parent was forced to hold same process with each individual transcript because the Braille authors did non hold any memory, he decided to do it easier for her. In 1982 Bjorn managed to register the company Index Braille Printer Company together with Torvald. In late 1983, the first merchandise started to be finalized. But at this clip, the two spouses had two different sentiments, and the co-operation between Index and the Norse house became instead tense. Bjorn asked Rolf A-sterberg, who was a really celebrated director, to be a minority spouse and board member. With Rolf ‘s aid Bjorn managed to work out the job with Norwegians.
In 1984, Bjorn started to look at chances for selling their pressman abroad. He took one paradigm to different tradeshows abroad. The undermentioned two old ages Index entered several markets. In the terminal of 1985, Bjorn ‘s small brother, Soren, joined the company to assist with the fabrication and one of his closest friends, Staffan Syk started assisting him with piecing the pressmans. In 1986, the turnover had increased from about nil in 1984 to four MSEK. In May 1988 Index was split into two different houses, Index Braille Printer Company and Polar Print AB. In early 1990s, Bjorn was forced to open the doors for an investing company because Sweden entered a fiscal crisis with debased currency. In late 1991, Bjorn felt that the “ new ” pressmans were in acceptable status to be sold. Until 1990, Bjorn changed the “ general-agent construction ” and allow others besides have entree to Index ‘s merchandises. This new scheme has been really successful and Index has increased their gross revenues from 9 MSEK in 1991 to 36 MSEK in 2001.
Bjorn was really skilled in mechanics but he needed Torvald to develop the electronics and the package in this new undertaking. Bjorn managed to affect his co-worker at the university, Torvald Lundqvist, in this undertaking. In 1984, Bjorn started to look at chances for selling their pressman abroad. He took paradigms to different tradeshows abroad. This became to be his first trip outside Nordic states. The undermentioned two old ages Index entered several markets. The procedure of set uping distributers normally took about a twelvemonth. The distributer must acquire familiar with Index and their merchandises, and besides set up a personal relation and assurance in Bjorn.
Between 1984 and 1988 the house grows from 2 individuals to 12 individuals, dwelling of friends, married womans, other household members and familiarities. This had finally led to the fact that Index had lost its chief focal point. Consequently, in May 1988 Index was split into two different houses, Index Braille Printer Company and Polar Print AB. In late 1991, Bjorn felt that the “ new ” pressmans were in acceptable status to be sold. With the experience of the house ‘s early internationalisation in mid 1980s, Bjorn already had a operation web, which could be more specific in taking the markets and distributers. Index had merely one distributer in each state and these distributers were supposed to be a general agent for Index ‘s merchandises. However, this construction had the drawback of being dependent on one distributer and one system.
4.3 Case Liko
Liko AB was founded in 1979 by Gunnar Liljedahl and is located in Alvik, in the North of Sweden. Gunnar was born in Alvik in 1945 and was into job work outing in already as a kid. In senior high school he was accepted to analyze technology for three old ages, which lead to development of his accomplishments in job resolution. When he graduated he shortly started to work for the transnational company ASEA where he took an internal technology plan. During this clip he increased his cognition about development, production and production planning. Gunnar spent the following four old ages at ASEA. A few old ages subsequently he got an employment at the County Council Public Health Board as a builder and job convergent thinker.
His chief undertaking was to work out jobs for handicapped individuals who could n’t utilize the standard solutions that the market was offering. During the following 13 old ages Gunnar travelled about Sweden to build separately based AIDSs for handicapped persons. The most of import things he learnt during these old ages were what the handicapped and the healers needed, and besides the linguistic communication that they use in health care. Gunnar means that this cognition was a great advantage when he developed the solutions. Soon he realized that his solutions could be used to assist a batch of people and he started a company of his ain to go on to develop the buildings.
Liko AB was established in 1979 and the concern thought was to develop, industry and market lift and reassign equipment to people with reduced mobility. To get down up the company Gunnar needed an industrial edifice, but it was difficult to acquire loan from the Bankss since it seemed to be such a hazardous concern. Gunnar solved the job by Lodge his parents ‘ house and land as security. Liko presented their first paradigm in 1980 and after that the word of oral cavity helped to make an involvement for the company. In 1981 Liko got an order from Gunnar ‘s former employer, the County Council Public Health Board, to fabricate 100 lifts. Gunnar accepted the order and from that twenty-four hours the growing of Liko was tremendous.
After a twosome of old ages Gunnar realized that the Swedish market was excessively little and he started to look for chances to travel international. He started to take part in trade carnivals in the Nordic states and through that he was able to set up relationships with distributers in Denmark, Norway and Finland. When the internationalisation procedure started Gunnar asked his older brother Soren to fall in the company since he needed aid with the exportation. Soren became the export director of Liko. The first market to come in was Norway and that was largely because Gunnar had established some contacts at that place earlier. After spread outing to the Nordic market Liko took the following measure in the internationalisation procedure and that was the US market.
Why they choose to come in the US market before the European market can be explained by a happenstance. Soren and his married woman invited Gunnar and his married woman Barbro to a dinner. Another twosome, Hans and Ethel Sigvardsson, who had been populating in US for a long clip, were besides invited. Hans was a man of affairs while Ethel was a homemaker. She was looking for a undertaking to pass her clip with and she was interested in selling Liko ‘s merchandises at the US market. Harmonizing to Gunnar the other market entries were besides more by random. In 1988 Gunnar and Soren met some Nipponeses who wanted to sell the merchandises in Japan. To happen new distributers Gunnar and Soren travelled to a batch of tradeshows to carry suited distributers that could sell Liko ‘s merchandises at their place market.
Today Liko AB is the 3rd largest company in the universe when it comes to patient lifts. They have about 60 per centum of the Swedish market and 45 per centum of the Norse market. In the whole universe they have about 20 per centum of the market portion.
In this portion the different definition and theories are discussed along with the three instances presented above. Similarities and differences are analyzed in all the instances to happen form that is connected to the definitions and theories of entrepreneurship and networking.
In all three instances we can see that the persons have the ability to place chances and work them, which is in line with the definition that Peterson ( 1985 ) gives of entrepreneurship. Staffan Preutz saw the chance in rimless eyewear and started Polaris AB. Bjorn Lofstedt identified an chance in pressmans and founded Index Braille AB. The last one, Gunnar Liko exploited the chance that he saw in patient lifts, which resulted in Liko AB. In the three instances we can see that all enterprisers have started a organisation based on their thought, but this is, harmonizing to Shane and Venkatarman ( 2000 ) non indispensable to be an enterpriser. The kernel in entrepreneurship is to be able to happen the chances, and hopefully increase the wealth in the society ( Bamoul, 1990 ).
The chances that are identified in the instances gain the society in different ways. Staffan Preutz were able to develop the industry of eyewear and give the consumers a stylish and sole merchandise. Bjorn Lofstedt has helped blind people all over the universe whit his Braille pressman. He got the inspiration from his blind female parent who wanted to show herself in the lone linguistic communication she could read – Braille. Gunnar Liko has besides increased the day-to-day life for both patients and carers with his patient lifts. Their entrepreneurship and their ability to place chances have both gained the economic system and enriched their personal life since they have been able to give their life to their vision and to back up their households.
The three enterprisers come from a similar background where they early have a captivation for job resolution. Smith ( 1967 ) identifies two types of enterprisers, the craftsman enterpriser and the timeserving enterpriser. Staffan, Bjorn and Gunnar tends to be more of timeserving enterprisers since their chief force for get downing a concern was follow their bosom and do their thought happen. The strongest force for the craftsman enterpriser is to be able to back up his/hers household, but the money they earned was merely a fillip for Staffan, Bjorn and Gunnar. The timeserving enterpriser frequently works in a more proactive manner to internationalise their house than the craftsman enterpriser harmonizing to Smith ( 1967 ).
In each of the three instances we can see that the enterpriser Oklahoman or subsequently decided to present their house to the international market. Staffan developed an international web early in his calling by participate in international tradeshows, where he meet people who helped him to come in new foreign markets. In the instance of Index Braille, Bjorn started to look for chances to take his company abroad already two old ages after the start up. He decided that a good scheme to show his merchandise to the international market was to see tradeshows around the universe and shortly he was able sell his merchandise in a several new markets. Gunnar, the laminitis of Liko AB, came to the decision to internationalise the company when he realized that the Swedish market was excessively little. Then he took on an active attack and started to seek for chances in tradeshows, merely as the two others.
When it comes to separate the enterpriser from other people we can see that Staffan, Bjorn and Gunnar have some qualities and traits that have helped them to develop their thoughts. A trait that frequently is seen in enterprisers is risk-taking ( Carter & A ; Jones-Evans, 2006 ) and a large motive to seek for chances ( Busenitz & A ; Barney, 1997 ). All three of them have started companies in based on their thought and without confidence that it will work. The force to work the chance is in most instances bigger than the fright of failure. But it is merely non the traits that will make up one’s mind who is an enterpriser and who is non. Stuart and Ding ( 2006 ) mean that enterprisers have a larger and more diverse web than nonentrepreneurs. Staffan, Bjorn and Gunnar were acute on making relationships with other people in the same industry to be able to develop and profit the ain company. To construct a large and valuable web it is of import to act in an active manner, which we can see that Staffan, Bjorn and Gunnar did when they travelled to a batch of different tradeshows to sell their merchandise, but besides to make valuable contacts. This active behavior can be one account to why they were able to place the chance in the beginning. By behave in an active manner the enterpriser is able to experiment, inquire inquiries and web which will do it easier to acknowledge chances in the society, harmonizing to Dyer, Gregersen and Christensen ( 2009 ).
Analysis of entrepreneurial procedure
In the instance of Index, the entrepreneurial procedure is really clear. The theoretical account set Forth by Bygrave ( 2004 ) raises issues that suggest the demand for research that would integrate the dynamic position in the apprehension of the enterpriser and entrepreneurship. And Bjorn, as an enterpriser, established his company with his friend. He was really skilled in mechanics, something his male parent had influenced him with. His male parent worked at steel mills and Bjorn ‘s female parent was blind and it is awkward for her to make the work as authorship protocols. So an thought was recognized by Bjorn. He started to believe about how to do a author with memory for his female parent and implemented his program when he thought it was mature for triping the event. Because of Bjorn ‘s background, his character is different from others, as instance two mentioned: Elisabeth besides describes Bjorn as a individual, which already as a kid was different from the others. “ He was ever a spot particular from the remainder of us, he did non care what the others thought, but did his ain ways. ”
All the illustrations point out Bjorn is a individual who do non care about hazard, do the determination merely follow his bosom. It is a typical personal property of enterpriser. Timmons ( 1978 ) agrees that certain personal properties, such as the demand for realisation, a leaning for taking deliberate hazards, and control venue ( an intense desire to be in control of one ‘s ain fate ), are observed in the bulk of successful enterprisers. ( Nassif, Ghobril, Silva, 2010 ) A combined with appropriate personality and environment, the procedure developed rapidly. Whilst the company frequently faces inauspicious conditions, such as competition or capital deficit, Bjorn ne’er give up. He took full advantage of societal resources. For illustration, he managed to affect his co-worker at university, his close friend in his childhood and his small brother ; He attended many different tradeshows abroad, met many distributors, and so relieved the tenseness bit by bit.
After the execution, progressively jobs emerged, such as company scheme, construction of distributors and different civilization abroad ; on the external facet, Bjorn besides encountered with tonss of slippery state of affairss. Environmental factors besides include sociological factors such as: function theoretical accounts, household duties, the tradeoff between the experience that comes with age and the optimism and energy of young person, and contacts ( a web of personal relationships ). ( Nassif, Ghobril, Silva, 2010 ) It is necessary to analysing yourself, calculating out the job all the clip, and so can be survival and growing in the competitory markets.
In the instance of Polaris, the enterpriser who called Preutz is a really extravert and self-assured individual. Filion ( 1999 ) has stated that the literature frequently points out that entrepreneurs actively strive to accomplish ends, and that they develop doggedness and creativeness, every bit good as the ability to observe chances and that they are agents for alteration, that is, they do new and different things. It helped him doing a batch of friends such as the hitchhikers in his young person inn and strongly driving the entrepreneurial procedure. Meanwhile, with the influence of household concern and the endowment of pulling and design, the chance was recognized swimmingly by Preutz. He made full readying such as sing many industries abroad and taking charge of dialogue and buying of new joint aggregations, and so he chose an appropriate clip to trip the event. During the execution, Preutz besides confronted with many external jobs. For illustration, the German market is really demanding and difficult to delight merely like the US market, which the instance mentioned “ they got into some jobs with the US authorities since optical spectacless are considered a medical merchandise and must be approved by the FDA, which was both clip and money consuming. ”
How to work out the jobs depends on many facets. In the succeeding phases of the concern, from execution to full organisational development in the growing phase, other personal properties become of import. These are: vision, leading, entrepreneurial spirit, direction ability and committedness. ( Nassif, Ghobril, Silva, 2010 ) Preutz ‘s ain ability is first-class, whilst it is difficult for him to acquire on good with spouses, because he can non accept others suggestion. Sometimes it is of import to take a firm stand your ain sentiment, but mentioning to others suggestion is besides helpful to the growing of entrepreneurial procedure.
In the instance of Liko, Gunnar, the enterpriser of Liko, has rich experience of innovation. He has learnt “ the demands and bounds of both those who we helped and those that we were assisting ” for 13 old ages. It contributes to the good beginning of entrepreneurial procedure. Prevailing in the high experience and instruction of employees, Gunnar managed to do Liko be ranked as the 3rd largest maker in the universe. And his R & A ; D squad has helped company against many rivals of him. The Model of the Entrepreneurial Process describes an aggregative vision of the kineticss of the entrepreneurial procedure, demoing the switching importance given to personal, sociological and environmental properties throughout the development of the concern. ( Nassif, Ghobril, Silva, 2010 ) It is a good method for analysing the internal and external environment, and so depending on the decision to put down the appropriate scheme for company. Obviously, teamwork is more efficient, originative and comprehensive than single work at ulterior phases.
In all three instances networking has been used to spread out the concerns, sometimes in different ways. Network is something that is invariably altering, because of an entrepreneurs different usage of resources ( Klyver & A ; Grant, 2010 ). That can be linked with the instances, because the concerns started with close contact with household members and subsequently on expand with aid from friends, university comrades and friends of friends. Staffan Preutz, the laminitis of Polaris, started his concern while he was working in his male parent ‘s horologists and ocular shop. He besides opened a inn for hitchhikers, in the vicinity of his household place. As the company expanded Preutz started to go to different industries in Europe to larn about the industry and to develop contact with people that could be utile in the hereafter of his company. Preutz web had now grown and now he did non necessitate aid from his parents, but from of import participants in the industry. In the instance of Index the web of the laminitis Bjorn Lofstedt alterations in a different manner. Lofstedt started his concern together with his college at the university and subsequently on the asked his small brother and closest friend to fall in the company, because he needed their expertness as the concern expanded.
Gunnar Liljedahl, the laminitis of Liko, besides used his web to spread out his company. He established the concern entirely in ( old ages ) and in the beginning he used his parents ‘ house and land as a security for acquiring a loan to purchase an industrial edifice. As the company expanded, Liljedahl involved his older brother to the company. His brother had a friend that subsequently on would assist Liljedahl to spread out in US. In all three instances the web of the laminitiss did alteration in gait with the spread outing concerns, because they required different resources during different stages in the company life-time.
Networking can be an easy and inexpensive method to make mark market. Networking can besides be used as advertisement of an enterpriser or its concern ( Indrupati & A ; Henari, 2012 ). Tradeshows is something that the laminitiss in all three instances used to publicize their merchandises to new market. The tradeshows took portion in the Nordic states but besides in other parts of Europe. Preutz besides started to sell his merchandise to an optical shop in the United States called the “ Blue Jeans ”. It was this co-operation that subsequently on made it possible for Preutz to get down selling his merchandises in Japan. The Swedish King and Queen market the merchandises of Polaris when they used the eyewear during the Olympics in the United States.
Preutz had written a missive to the King and the Queen, with the petition to utilize his merchandises during the games and they agreed. In the instance of Index, laminitis Bjorn Lofstedt used a different type of scheme to market his concern, he changes the “ general-agent construction ” so that other would hold entree to sell his merchandises. This besides increased his web and was a truly successful scheme, since the gross revenues increased 27 MSEK between 1991 and 2001. Gunnar Liljedahl, laminitis of Liko did non publicize his merchandises more than sing different tradeshows in the Nordic states. After some old ages the Japanese where interested in selling Liko ‘s merchandises, since they have seen the merchandises in a tradeshow. The different tradeshows was an easy method to make mark market or seeking to make new market.
In all three instances the societal web of the laminitis helped the company to spread out and make new market. The co-operation with “ Blue Jeans ” made it possible for Polaris to get down selling its merchandises in the United States, but besides in Japan. Preutz web with the proprietor of “ Blue Jeans ” linked him farther to one of the major ocular concatenation in Japan. An enterpriser has a great usage of its societal web in many different ways. The web can for back up a concern by supply new information or give entree to new distribution channels ( Greve & A ; Salaff, 2003 ).
When it comes to Index, Bjorn Lofstedt used his web to enter markets outside the Nordic states, every bit good as Gunnar Liljedahl at Liko did. Liljedahl used his web to spread out in Norway and so to the other Nordic states. Subsequently on he expanded his concern to the United States with aid from a friend of his brother. The repute of a concern is besides depending on the ability for the company to utilize its web ( Klyver, Hindle & A ; Meyer, 2008 ). An illustration of how the repute could impact the company is when the Swedish King and Queen were have oning Polaris ‘s merchandises during the Olympics in the United States and the petition of the merchandises increased tremendously because of it. It was free advertisement of the merchandises that raised the good repute of the company and led to increased demand.
Social webs sites ( SNS ) are something that has become a immense portion of peoples lives, much because of the technological development. The chief intent is to keep bing webs and aid people to link with aliens ( Boyd & A ; Ellison, 2008 ). During the clip when the three instances take portion, the SNS has non become so successful as today. It is networking sites like LinkedIn and Facebook that has become the top sites for networking ( Indrupati & A ; Henari, 2003 ). Facebook was founded in February 2004 and in February 2012 the site had one billion users worldwide ( Witek & A ; Grettano, 2012 ). The usage of networking sites has increased quickly, but when Polaris, Index and Liko started there was no equivalent to the networking sites. SNS can be truly utile for enterprisers to portion cognition, experience and involvement ( Lea, et al., 2006 ). Therefore it is of import to see utilizing networking sites when the concern is in an expansive stage.
The power of strong and weak ties
In Polaris enterpriser sentiment, one of the chief grounds to internationalise his concern was to go and run into new people. This is the chief ground that he can take full advantages of utilizing his strong ties and weak ties to internationalise his company. He started a young person inn for hitchhikers from different parts of Europe in his adolescent period. In the young person hotel, he met a batch of new friends, improved his English, learned about different civilizations and how to cover with different nationalities. These friends he met those old ages are weak ties for him and assist him subsequently to some extent. He traveled often to run into some makers. All the going helped him to develop weak ties with of import participants in the eyewear industry. Some friends and other people that the Polaris enterpriser met in his life give him chances to develop international markets. In USA market, he used weak ties to develop it. He bumped into an American which was acquainted with him through his connexions during his clip as a interior decorator in France. Because of this adult male, Polaris started successfully to sell eyewear in USA.
In a party arranged by his friends, he met a miss who help Polaris USA turned out to be really profitable. And a client of Polaris started an agent for Polaris in the US successfully. An lens maker who he had made connexions with became spouse with him to set up a joint venture in Germany, which made the demand for Swedish rimless spectacless grew enormously. The friend of a French-American lens maker who had started to sell Polaris ‘s aggregation in the US interested in selling Polaris ‘s merchandises. Then, the Polaris enterpriser started to besides plan spectacless for the concatenation in Paris. A Nipponese who had seen Polaris ‘s merchandises in a shop which cooperated with Polaris in New York, had a joint venture with Staffan in Nipponese market which is one of the most important markets for Polaris.
And in Australia market, the Polaris enterpriser met a Swedish household that helped Polaris set up a subordinate in Brisbane during one career in Australia. Polaris ‘s merchandises increased tremendously thanks to a missive wrote to the Swedish King and Queen by the enterpriser. And in strong ties aspect, the enterpriser asked his sister and Lengton his sister married with to work for him. Due to Lengton, he met another Englishman, and these three people helped Polaris develop UK market, which still one of the most profitable markets. Although it is non ever successful in concern, the weak ties and strong ties of the Polaris enterpriser help the company a batch. Polaris develops many international markets during a short period of clip by weak ties.
In the Index enterpriser calling life, weak ties and strong ties play a function. He asked his co-worker aid him to develop the electronics and the package in new merchandises. One of his close friends helped him with piecing. With a spouse ‘s aid, the enterpriser managed to work out the job with Norwegians. His household besides helps him. His male parent worked at steel mills, which help the enterpriser to be fascinated mechanics. His female parent was blind, which cause him to make up one’s mind to bring forth the new pressman. And his brother joined the company to assist with fabrication. In the internationalisation procedure, friends in his childhood who can talk French fluently help him to advance the Gallic market. And the Index enterpriser met some distributers at trade shows help him to develop international markets more easy. Customers are besides one of his weak ties.. Weak ties are an of import resource in doing possible mobility chances ( Mark Granovetter, 1973 )
One of the factors of the Liko enterpriser ‘s success is besides weak ties and strong ties. The 13 old ages of his life with going around the state and together with occupational healer and physical therapist helped him a batch. A physical therapist got an of import portion in his life. And his household, his married woman helped him with the paperwork in Liko. In the internationalisation procedure of Liko, the enterpriser asked his older brother to fall in the company as export director to assist him develop international markets. Some distributers and familiarities he met aid him every bit good. The ground of the success of the UK market was because the enterpriser met his brother ‘s friends.
Strong ties and weak ties are all reflected in these instances to the full. As Mark Granovetter defined, the “ strength ” of an interpersonal tie is a ( likely linear ) combination of the sum of clip, the emotional strength, the familiarity ( common confiding ), and the reciprocal services which characterize the tie. Strong ties and weak ties both play a function in these instances, but, weak ties have more advantages to strong ties to some extent. Because in strong ties, the information is more similar. And through weak ties, the person can come into contact with more people, every bit good as crossbeam the greater societal distance. Weaker interracial ties can be seen to be more effectual in bridging societal distabce ( Mark Granovetter, 1973 ). In a word, strong ties and weak ties are good to entrepreneurial procedure. Nowadays, SNS such as facebook, chirrup is a efficient manner to develop weak ties and strong ties.