My research focuses on the influence of the external environment on entrepreneurship. Specifically, I have sought to be a leader in investigating the types of environments that encourage the founding of high growth, technology-based firms. Although I build on previous work that focuses on individual characteristics, network ties, and strategy, my major contribution is to demonstrate that institutions matter. I have broken new ground in showing that effective institutional change influences who starts firms, not just how many firms are started. I have repeatedly studied entrepreneurship in a single country (China, Chile, Japan, and the U.S.) before and after a major institutional change. My work is divided into three streams: (1) formal institutions (policies and regulations), (2) university and industry environments, and (3) informal institutions (social movements).
STREAM 1: My research in this stream advances theory by introducing novel mechanisms (e.g. barriers to growth and failure, institutional inconsistency), introducing new concepts (e.g. skill adequacy and context relevance) and in theorizing that institutional changes that lower barriers to growth and to failure alter who becomes an entrepreneur, the type of firms, and performance.
STREAM 2: My work in this stream changes the way we think about team composition as well as what characteristics lead to venture performance by linking their impacts to industry environments.
STREAM 3: In this stream, I explored how social movement organizations can change firms.
My research changes the way we think about how the environment – formal institutions, informal institutions, and industry contexts – influences entrepreneurship. I am a leader in situating ventures within environments and showing that interactions between environments and entrepreneurs matter. I am among the first to argue and show that policies that foster high-growth entrepreneurship are different than those that spawn small businesses. If policy leaders wish to foster technology-based start-ups, then we must consider how institutions operate. My research shows that institutional changes can significantly influence the types of firms that are created, who creates them, and how they perform. My research challenges widely accepted ideas about entrepreneurship by highlighting taken-for-granted notions that are incomplete or misleading. My studies call into question the assumption that institutions that make it easier to start firms are unambiguously beneficial, and that experienced, diverse founding teams are always superior. My theoretical contributions include introducing such concepts as institutional barriers to growth, skill adequacy and context relevance. I lead the way in broadening our conception of entrepreneurship beyond the developed North American economies. I have contributed methodologically by (A) showing how to measure talent, (B) collecting data internationally, (C) using randomized field experiments, and (D) analyzing multi-industry databases with state-of-the-art statistics (instrumental variables, differences-in-differences). I have been a pioneer in overcoming the challenges of inferring causality, by finding changes that altered the landscape for entrepreneurship, along with collecting novel data in international settings. In future work, I plan to do more studies incorporating software development for data collection and digital platforms for randomized experiments focusing on issues related to strategic change and entrepreneurship training.