Abstract
In this chapter, we use phenomenological analysis to discover how founders’ identity and the associated venture identity interact with investors’ interests in the genesis of ventures that combine private economic interest and societal purpose in the Balkans. There are different ways in which founders make sense of the intended venture in relation to a larger set of norms determined by the private economic versus societal purpose. Successfully financed Balkan ventures with a recognizable societal purpose crystallize their business models and generate both private economic and societal value by balancing founders’ identity and sensemaking and investor interests.
This chapter is co-authored by Jonathan Pérez, School of Management, Universidad de los Andes, Bogotá, Colombia.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Abdelkafi, N., & Täuscher, K. (2016). Business models for sustainability from a system dynamics perspective. Organization & Environment, 29(1), 74–96. https://doi.org/10.1177/1086026615592930
Acs, Z., & Storey, D. (2004). Introduction: Entrepreneurship and economic development. Regional Studies, 38(8), 871–877. https://doi.org/10.1080/0034340042000280901
Aidis, R., Welter, F., Smallbone, D., & Isakova, N. (2007). Female entrepreneurship in transition economies: The case of Lithuania and Ukraine. Feminist Economics, 13(2), 157–183. https://doi.org/10.1080/13545700601184831
Albert, S., & Whetten, D. (1985). Organizational identity. Research in Organizational Behavior, 7, 263–295.
Aldrich, H. E., & Zimmer, C. (1986). Entrepreneurship through social networks. In C. Zimmer (Ed.), The art and science of entrepreneurship (pp. 3–23). Cambridge, MA: Ballinger.
Alvord, S., Brown, L., & Letts, C. (2004). Social entrepreneurship and societal transformation. The Journal of Applied Behavioral Science, 40(3), 260–282. https://doi.org/10.1177/0021886304266847
Ashforth, B., & Mael, F. (1989). Social identity theory and the organization. The Academy of Management Review, 14(1), 20. https://doi.org/10.2307/258189
Aspara, J., Lamberg, J., Laukia, A., & Tikkanen, H. (2013). Corporate business model transformation and inter-organizational cognition: The case of Nokia. Long Range Planning, 46(6), 459–474. https://doi.org/10.1016/j.lrp.2011.06.001
Aulet, W., & Murray, F. (2013). A tale of two entrepreneurs: Understanding differences in the types of entrepreneurship in the economy. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2259740
Barney, J., Bunderson, J., Foreman, P., Gustafson, L., Huff, A., Martins, L., et al. (1998). A strategy conversation on the topic of organization identity. In A. Whetten & P. Godfrey (Eds.), Identity in organizations: Building theory through conversations (pp. 99–168). Thousand Oaks, CA: Sage.
Battilana, J., & Dorado, S. (2010). Building sustainable hybrid organizations: The case of commercial microfinance organizations. Academy of Management Journal, 53(6), 1419–1440. https://doi.org/10.5465/amj.2010.57318391
Battilana, J., Lee, M., Walker, J., & Dorsey, C. (2012). In search of the hybrid ideal. Stanford Social Innovation Review, 10(3), 50–55.
Baum, J., Calabrese, T., & Silverman, B. (2000). Don’t go it alone: Alliance network composition and startups’ performance in Canadian biotechnology. Strategic Management Journal, 21(3), 267–294. https://doi.org/10.1002/(sici)1097-0266(200003)21:3<267::aid-smj89>3.0.co;2-8
Berends, H., Smits, A., Reymen, I., & Podoynitsyna, K. (2016). Learning while (re)configuring: Business model innovation processes in established firms. Strategic Organization, 14(3), 181–219. https://doi.org/10.1177/1476127016632758
Bellah, R., Madsen, R., Sullivan, W., & Swidler, A. (2007). Habits of the heart: Individualism and commitment in American life. University of California Press.
Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management Review, 13(3), 442–453. https://doi.org/10.5465/amr.1988.4306970
Birkinshaw, J., & Goddard, J. (2009). What is your management model?. MIT sloan management review. Cambridge, 50(2), 81–90.
Bocken, N., Rana, P., & Short, S. (2015). Value mapping for sustainable business thinking. Journal of Industrial And Production Engineering, 32(1), 67–81. https://doi.org/10.1080/21681015.2014.1000399
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: State-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19. https://doi.org/10.1016/j.jclepro.2012.07.007
Bosma, N., & Harding, R. (2007). Global Entrepreneurship Monitor: GEM 2006 results. GEM.
Casadesus-Masanell, R., & Ricart, J. (2010). From strategy to business models and onto tactics. Long Range Planning, 43(2–3), 195–215. https://doi.org/10.1016/j.lrp.2010.01.004
Casadesus-Masanell, R., & Zhu, F. (2010). Strategies to fight ad-sponsored rivals. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1476530
Casson, M., & Wadeson, N. (2007). The discovery of opportunities: Extending the economic theory of the entrepreneur. Small Business Economics, 28(4), 285–300. https://doi.org/10.1007/s11187-006-9037-7
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363. https://doi.org/10.1016/j.lrp.2009.07.010
Chesbrough, H., & Rosenbloom, R. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529–555. https://doi.org/10.1093/icc/11.3.529
Cope, J. (2005). Researching entrepreneurship through phenomenological inquiry: Philosophical and methodological issues. International Small Business Journal, 23(2), 163–189. https://doi.org/10.1177/0266242605050511
Dahan, N., Doh, J., Oetzel, J., & Yaziji, M. (2010). Corporate-NGO collaboration: Co-creating new business models for developing markets. Long Range Planning, 43(2–3), 326–342. https://doi.org/10.1016/j.lrp.2009.11.003
Davidsson, P. (1991). Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth. Journal of Business Venturing, 6(6), 405–429. https://doi.org/10.1016/0883-9026(91)90028-c
Davidsson, P. (1995). Culture, structure and regional levels of entrepreneurship. Entrepreneurship & Regional Development, 7(1), 41–62. https://doi.org/10.1080/08985629500000003
Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331. https://doi.org/10.1016/S0883-9026(02)00097-6
Davidsson, P., & Wiklund, J. (1997). Values, beliefs and regional variations in new firm formation rates. Journal of Economic Psychology, 18(2–3), 179–199. https://doi.org/10.1016/s0167-4870(97)00004-4
de Carolis, D. M., Litzky, B. E., & Eddleston, K. A. (2009, March). Why networks enhance the progress of new venture creation: The influence of social capital and cognition. Entrepreneurship Theory and Practice, 33, 527–545.
de Carolis, D. M., & Saparito, P. (2006). Social capital, cognition, and entrepreneurial opportunities: A theoretical framework. Entrepreneurship Theory and Practice, 30(1), 41–56.
Doz, Y., & Kosonen, M. (2010). Embedding strategic agility: A leadership agenda for accelerating business model renewal. Long Range Planning, 43(2–3), 370–382. https://doi.org/10.1016/j.lrp.2009.07.006
Dutton, J., & Dukerich, J. (1989). Keeping an eye on the mirror: Image and identity in organizational adaptation. Academy of Management Journal, 34(3), 517–554. https://doi.org/10.2307/256405
Dutton, J. E., & Jackson, S. (1989). Does what you see depend on where you sit?: Linking context and strategic issue categories. Paper presented at the Academy of Management meetings, Washington, DC.
Eesley, C., & Wang, Y. (2017). Social influence in career choice: Evidence from a randomized field experiment on entrepreneurial mentorship. Research Policy. https://doi.org/10.1016/j.respol.2017.01.010
Eleven quarterly report. 2017. Made available in private correspondence with the eleven fund managing partners.
Erez, M., & Earley, P. (1993). Culture, self-identity and work. New York: Oxford University Press.
Fauchart, E., & Gruber, M. (2011). Darwinians, communitarians, and missionaries: The role of founder identity in entrepreneurship. Academy of Management Journal, 54(5), 935–957. https://doi.org/10.5465/amj.2009.0211
Fiol, C. (1991). Managing culture as a competitive resource: An identity-based view of sustainable competitive advantage. Journal of Management, 17(1), 191–211. https://doi.org/10.1177/014920639101700112
Fiol, C. (2001). Revisiting an identity-based view of sustainable competitive advantage. Journal of Management, 27(6), 691–699. https://doi.org/10.1177/014920630102700606
Fiol, C., & Dunbar, R. (1990). Identifying the basis for organizational cohesion: The tight side of loose coupling. Leonard N. Stern School of Business, New York University.
Forbes, D. (1999). Cognitive approaches to new venture creation. International Journal of Management Reviews, 1(4), 415–439. https://doi.org/10.1111/1468-2370.00021
Gartner, W. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706. https://doi.org/10.5465/amr.1985.4279094
Gedajlovic, E., Honig, B., Moore, C. B., Payne, G. T., & Wright, M. (2013). Social capital and entrepreneurship: A schema and research agenda. Entrepreneurship Theory and Practice, 37(3), 455–478.
GEM. (2017). GEM 2016/2017 global report (pp. 1–180). Global Entrepreneurship Monitor. Retrieved from http://www.gemconsortium.org/report/49812
Startup Genome. (2012). Startup ecosystem report.
Gibb, A., & Ritchie, J. (1982). Understanding the process of starting small businesses. European Small Business Journal, 1(1), 26–45. https://doi.org/10.1177/026624268200100102
Gioia, D., Price, K., Hamilton, A., & Thomas, J. (2010). Forging an identity: An insider-outsider study of processes involved in the formation of organizational identity. Administrative Science Quarterly, 55(1), 1–46. https://doi.org/10.2189/asqu.2010.55.1.1
Gioia, D., Schultz, M., & Corley, K. (2000). Organizational identity, image, and adaptive instability. The Academy of Management Review, 25(1), 63. https://doi.org/10.2307/259263
Goffman, E. (1967). Interaction ritual. New York: Routledge.
Grabenwarter, U., & Liechtenstein, H. (2011). In search of gamma—An unconventional perspective on impact investing. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2120040
Gries, T., & Naudé, W. (2010). Entrepreneurship and structural economic transformation. Small Business Economics, 34(1), 13–29. https://doi.org/10.1007/s11187-009-9192-8
Harding, R., Brooksbank, D., Hart, M., Jones-Evans, D., Levie, J., O’Reilly, J., et al. (2006). Global Entrepreneurship Monitor United Kingdom 2005. London: London Business School.
Haugh, H. (2005). A research agenda for social entrepreneurship. Social Enterprise Journal, 1(1), 1–12. https://doi.org/10.1108/17508610580000703
Hausmann, R., & Rodrik, D. (2003). Economic development as self-discovery. Journal of Development Economics, 72(2), 603–633. https://doi.org/10.1016/s0304-3878(03)00124-x
Hitlin, S. (2003). Values as the core of personal identity: Drawing links between two theories of self. Social Psychology Quarterly, 66(2), 118. https://doi.org/10.2307/1519843
Hockerts, K. (2006). Entrepreneurial opportunity in social purpose business ventures in Social Entrepreneurship. In J. Mair, J. Robinson, & K. Hockerts (Eds.), Handbook of research in social entrepreneurship. Palgrave Macmillan.
Hofstede, G. (1980). Motivation, leadership, and organization: Do American theories apply abroad? Organizational Dynamics, 9(1), 42–63. https://doi.org/10.1016/0090-2616(80)90013-3
House, R., Hanges, P., Javidan, M., Dorfman, P., & Gupta, V. (2004). Culture, leadership, and organizations.
Hycner, R. (1985). Some guidelines for the phenomenological analysis of interview data. Human Studies, 8(3), 279–303. https://doi.org/10.1007/bf00142995
Isenberg, D. (2011). The entrepreneurship ecosystem strategy as a new paradigm for economic policy: Principles for cultivating entrepreneurship. Presentation, Institute of International and European Affairs.
Itami, H., & Nishino, K. (2010). Killing two birds with one stone. Long Range Planning, 43(2–3), 364–369. https://doi.org/10.1016/j.lrp.2009.07.007
Kimberly, J. (1979). Issues in the creation of organizations: Initiation, innovation, and institutionalization. Academy of Management Journal, 22(3), 437–457. https://doi.org/10.2307/255737
Kreiser, P., Marino, L., Dickson, P., & Weaver, K. (2010). Cultural influences on entrepreneurial orientation: The impact of national culture on risk taking and proactiveness in SMEs. Entrepreneurship Theory and Practice, 34(5), 959–983. https://doi.org/10.1111/j.1540-6520.2010.00396.x
Lafuente, E., Vaillant, Y., & Rialp, J. (2007). Regional differences in the influence of role models: Comparing the entrepreneurial process of rural Catalonia. Regional Studies, 41(6), 779–796.
Learned, K. (1992). What happened before the organization? A model of organization formation. Entrepreneurship Theory and Practice, 17(1), 39–48. https://doi.org/10.1177/104225879201700105
Magretta, J. (2002, May). Why business models matter. Harvard Business Review, 86–92.
Mair, J., Battilana, J., & Cardenas, J. (2012). Organizing for society: A typology of social entrepreneuring models. Journal of Business Ethics, 111(3), 353–373. https://doi.org/10.1007/s10551-012-1414-3
Martins, L., Rindova, V., & Greenbaum, B. (2015). Unlocking the hidden value of concepts: A cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99–117. https://doi.org/10.1002/sej.1191
Massa, L., Tucci, C., & Afuah, A. (2017). A critical assessment of business model research. Academy of Management Annals, 11(1), 73–104. https://doi.org/10.5465/annals.2014.0072
McCracken, G. (1988). The long interview. Newbury Park, CA: Sage.
McCloskey, D. N. (2006). Bourgeois virtue: Ethics for an age of commerce. Chicago: The University of Chicago Press.
McGrath, R., MacMillan, I., & Scheinberg, S. (1992). Elitists, risk-takers, and rugged individualists? An exploratory analysis of cultural differences between entrepreneurs and non-entrepreneurs. Journal of Business Venturing, 7(2), 115–135. https://doi.org/10.1016/0883-9026(92)90008-f
Meyskens, M., Robb-Post, C., Stamp, J. A., Carsrud, A. L., & Reynolds, P. D. (2010). Social ventures from a resource-based perspective: An exploratory study assessing global Ashoka fellows. Entrepreneurship Theory and Practice, 34(4), 661–680.
Minniti, M., Bygrave, W., & Autio, E. (2006). Global Entrepreneurship Monitor: 2005 executive report. London: London Business School.
Minniti, M., & Naudé, W. (2010). What do we know about the patterns and determinants of female entrepreneurship across countries? The European Journal of Development Research, 22(3), 277–293. https://doi.org/10.1057/ejdr.2010.17
Monitor Institute. (2009). Investing for social & environmental impact (p. 86). Monitor Institute (Monitor Deloitte).
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58(6), 726–735. https://doi.org/10.1016/j.jbusres.2003.11.001
Nanda, R., & Sørensen, J. B. (2010). Workplace peers and entrepreneurship. Management Science, 56(7), 1116–1126. https://doi.org/10.1287/mnsc.1100.1179
Neumeyer, X., & Corbett, A. (2017). Entrepreneurial ecosystems: Weak metaphor or genuine concept? In Advances in the study of entrepreneurship, innovation & economic growth (pp. 35–45). Retrieved from https://doi.org/10.1108/s1048-473620170000027005
Nielsen, C., & Lund, M. (2014). A brief history of the business model concept. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2579439
Porter, M., & Kramer, M. (2011). The big idea: Creating shared value. How to reinvent capitalism—And unleash a wave of innovation and growth. Harvard Business Review, 89, 1–2.
Qin, F., & Estrin, S. (2015). Does social influence span time and space? Evidence from Indian returnee entrepreneurs. Strategic Entrepreneurship Journal, 9, 226–242. https://doi.org/10.1002/sej
Reim, W., Parida, V., & Örtqvist, D. (2015). Product–Service Systems (PSS) business models and tactics—A systematic literature review. Journal of Cleaner Production, 97, 61–75. https://doi.org/10.1016/j.jclepro.2014.07.003
Rindova, V., Barry, D., & Ketchen, D. (2009). Entrepreneuring as emancipation. Academy of Management Review, 34(3), 477–491. https://doi.org/10.5465/amr.2009.40632647
Roach, M., & Sauermann, H. (2015). Founder or joiner? The role of preferences and context in shaping different entrepreneurial interests. Management Science, 61(9), 2160–2184. https://doi.org/10.1287/mnsc.2014.2100
Schmutzler, J., Andonova, V., & Diaz-Serrano, L. (2018). How context shapes entrepreneurial self-efficacy as a driver of entrepreneurial intentions: A multilevel approach. Entrepreneurship Theory and Practice. https://doi.org/10.1177/1042258717753142
Schwartz, S. (1994). Are there universal aspects in the structure and contents of human values? Journal of Social Issues, 50(4), 19–45. https://doi.org/10.1111/j.1540-4560.1994.tb01196.x
Schwartz, S. (2012). An overview of the Schwartz theory of basic values. Online Readings in Psychology and Culture, 2(1), 11. https://doi.org/10.9707/2307-0919.1116
Seelos, C. (2014). Theorising and strategising with models: Generative models of social enterprises. International Journal of Entrepreneurial Venturing, 6(1), 6–21.
Seelos, C., & Mair, J. (2005). Social entrepreneurship: Creating new business models to serve the poor. Business Horizons, 48(3), 241–246.
Shane, S. (1992). Why do some societies invent more than others? Journal of Business Venturing, 7(1), 29–46 https://doi.org/10.1016/0883-9026(92)90033-n
Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://doi.org/10.5465/amr.2000.2791611
Shook, C., Priem, R., & McGee, J. (2003). Venture creation and the enterprising individual: A review and synthesis. Journal of Management, 29(3), 379–399. https://doi.org/10.1016/s0149-2063_03_00016-3
Short, J., Moss, T., & Lumpkin, G. (2009). Research in social entrepreneurship: Past contributions and future opportunities. Strategic Entrepreneurship Journal, 3(2), 161–194. https://doi.org/10.1002/sej.69
Smallbone, D., & Welter, F. (2004). Entrepreneurship in transition economies: Necessity or opportunity driven? Paper presented at the Babson-Kauffman Entrepreneurship Research Conference, Babson College, Boston, MA, June.
Smith, J., & Eatough, V. (2006). Interpretative phenomenological analysis. In G. Breakwell, S. Hammond, C. Fife-Schan, & J. Smith (Eds.), Research methods in psychology. London: Sage Publications.
Smith, J. A., Jaman, M., & Osborn, M. (1999). Doing interpretive phenomenological analysis. In M. Murray & K. Chamberlain (Eds.), Qualitative health psychology: Theories and methods. London: Sage.
Smith, W., Binns, A., & Tushman, M. (2010). Complex business models: Managing strategic paradoxes simultaneously. Long Range Planning, 43(2–3), 448–461. https://doi.org/10.1016/j.lrp.2009.12.003
Sørensen, J. B., & Fassiotto, M. A. (2011). Organizations as fonts of entrepreneurship. Organization Science, 22(5), 1322–1331. https://doi.org/10.1287/orsc.1100.0622
Sosna, M., Trevinyo-Rodríguez, R., & Velamuri, S. (2010). Business model innovation through trial-and-error learning. Long Range Planning, 43(2–3), 383–407. https://doi.org/10.1016/j.lrp.2010.02.003
Teece, D. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194. https://doi.org/10.1016/j.lrp.2009.07.003
Thomas, A., & Mueller, S. (2000). A case for comparative entrepreneurship: Assessing the relevance of culture. Journal of International Business Studies, 31(2), 287–301. https://doi.org/10.1057/palgrave.jibs.8490906
Timmers, P. (1998). Business models for electronic markets. Electronic Markets, 8(2), 3–8. https://doi.org/10.1080/10196789800000016
Wells, P. (2016). Economies of scale versus small is beautiful: A business model approach based on architecture, principles and components in the beer industry. Organization & Environment, 29(1), 36–52. https://doi.org/10.1177/1086026615590882
Wennekers, A., Uhlaner, L., & Thurik, A. (2002). Entrepreneurship and its conditions: A macro perspective. International Journal of Entrepreneurship Education (IJEE), 1(1), 25–64 Retrieved from http://Hdl.Handle.Net/1765/15876
Whetten, D. (2006). Albert and Whetten revisited: Strengthening the concept of organizational identity. Journal of Management Inquiry, 15(3), 219–234. https://doi.org/10.1177/1056492606291200
Whetten, D., & Mackey, A. (2002). A social actor conception of organizational identity and its implications for the study of organizational reputation. Business & Society, 41(4), 393–414. https://doi.org/10.1177/0007650302238775
Williams, C. (2008). Beyond necessity-driven versus opportunity-driven entrepreneurship. The International Journal of Entrepreneurship and Innovation, 9(3), 157–165. https://doi.org/10.5367/000000008785096647
Wyrwich, M., Stuetzer, M., & Sternberg, R. (2016). Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: A tale of two regions. Small Business Economics, 46(3), 467–492. https://doi.org/10.1007/s11187-015-9695-4
Zott, C., & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. https://doi.org/10.1016/j.lrp.2009.07.004
Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1674384
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Andonova, V., Nikolova, M.S., Dimitrov, D. (2019). Founder and Stakeholder Interests: Combining Economic and Societal Factors in the Balkan Peninsula. In: Entrepreneurial Ecosystems in Unexpected Places. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-98219-9_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-98219-9_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-98218-2
Online ISBN: 978-3-319-98219-9
eBook Packages: Business and ManagementBusiness and Management (R0)