Syllabus

This syllabus was replaced May 25, 2009. Link to the new syllabus: http://www.usbe.umu.se/utbildning/kursplaner/2fe146_090525.pdf

Entrepreneurship, Dynamics and Business Venturing D, 30 ECTS

Entreprenrskap och affrsutveckling i frnderliga affrsmiljer D
Credit points: 30 ECTS/30 hp Course code: 2FE139 Responsible Unit: Ume School of Business Subject: Business Administration Level: Advanced (D) Subject area/Field of education: Social Sciences Grading scale Fail-Pass-Pass with distinction This is a course at the D-level in a Msc-degree at Ume University. The course can also be included in study programs in Business Administration and Economics at Ume School of Business.

1.

Confirmation

The course is established by the Faculty of Social Sciences at Ume University and the syllabus was confirmed by the Board of Ume School of Business on May 21, 2008. The syllabus is valid from September 1, 2008.

2.

Contents

The core course consists of four modules, which will be further described below: Module 1. Innovation in Changing Business Environments, 7.5 ECTS Module 2. Dynamic business settings, 7.5 ECTS Module 3. Entrepreneurial Activity and Business Venturing, 15.0 ECTS

Module 1. Innovation in Changing Business Environments, 7.5 ECTS

In order to innovate, entrepreneurs must develop the ability to recognize opportunities during periods of industrial and social change: emerging and declining markets and industries, and changes in values and regulations. Also, to ensure survival and growth, the entrepreneur must have an understanding of the business environment in order to identify opportunities and threats that might affect current and future prospects for the organization. This first module introduces the program in general, and introduces the first semester of the program in particular. Therefore a range of concepts central to the program will be introduced at the start of this module, such as innovation and creativity, entrepreneurship, the process of entrepreneurship, etc, in order to outline a framework on which the later modules of this course will build. The module will then address the issue of innovation and opportunity recognition on different types of markets. In particular, focus will be directed at the first stage of the entrepreneurial process, namely the identification of entrepreneurial opportunities and how they are related to micro level conditions on the market, such as competition and consumer preferences. Thereafter, the module will focus on the macro business environment. Business development and entrepreneurship cannot be properly understood without considering the economic, historical and institutional settings in which they operate. The development of the macroeconomic environment determines the long term strategic framework for firms. Structural change in the economy, stemming from, for example, technological change or changing demand exemplified by a more service-oriented economy have direct and indirect effects on markets and can provide new opportunities for businesses. Institutional transformation can have a similar effect, either by opening or widening new markets or by narrowing and regulating the framework within which business opportunities are created. In order to understand how business opportunities emerge in the modern western business context, it is therefore necessary to study the interaction between state and market. Issues such as general attitudes towards entrepreneurship, government and non-government institutions and business laws and regulations, etc,

that support and surround entrepreneurship will be raised. In total, awareness of changes in the macro and micro environment will give the students ability to identify opportunities in a business setting. In the last part of the module, students are introduced to the business development assignment that they will follow during the first semester. The focus is here placed on practical analysis of business ideas. Further, there is a focus on activities supporting business development in teams, such as creativity, group-dynamics and conflict-solving. Expected learning outcomes: On successful completion of this module, students should be able to: describe and analyse the nature of the macro and micro environments of importance to entrepreneurial activity analyse for driving forces behind dynamism and change in todays business contexts in relation to practical entrepreneurship outline the process of entrepreneurship and analyse business opportunities reflect upon how ones own behaviour contributes to the group dynamics and creativity in team work provide oral and written presentations at a masters level Focus of instruction A mix of lectures and seminars will be used and the teaching is characterized by a strong emphasis on student activity, both verbally and in written tasks. A core idea in the program, is action based learning (or learning by experience). Therefore, the module ends with the introduction of the business development assignment that runs throughout the semester. This assignment will include both practical analyses of real life business idea as well as reflection on the individual learning experiences. The concept of log book as a tool for reflection is introduced. The student is expected to actively participate both individually and in small groups in the different seminars and tasks, and in the written and oral presentations. Examination modes Comprehension and understanding of the course module content will be assessed in seminars and through case work, which may be examined verbally and/or in writing. There will also be a comprehensive exam. The business development assignment is examined via the writing and presenting of a project plan, including a draft feasibility study, plus a reflection assignment. Students must attend all seminars and presentations in order to pass the module. See also note 6 below.

Module 2. Dynamic business settings, 7.5 ECTS

As identified in the previous module, innovation and entrepreneurial activity flourishes or struggles within a wider business context. This module concentrates on different types of dynamic entrepreneurial settings - including national business systems, clusters, industrial districts, innovation systems, technological fields, networks, and communities of practice which provide different arenas for entrepreneurial activities and interaction between organizations. Research on business incubators, science parks, business networks and resource clustering and these phenomenas strategic importance for early and dynamic business development processes play an essential part. This module first briefly focuses on the role of the national business system for creating the conditions which stimulate or restrict entrepreneurial activity and innovation from arising. Common characteristics of the Nordic arena as a whole within the E.U., and distinctive characteristics of the three different markets (Sweden, Finland, and Denmark), will be introduced. Secondly, a modern view of innovation emphasizes the role played by location in the process of innovation. Through interaction over time, firms form varying degrees of dynamic business settings. Experience from practice and research emphasises the importance of local business multiplicity, ready access to physical resources, a regional labour market with a multitude of relevant professionals, educational and research institutions, and venture capitalist. This module therefore concentrates on different types of dynamic entrepreneurial settings - including clusters, industrial districts, innovation systems, technological fields, networks, science parks and communities of practice - as the arena of organisation-level interaction in entrepreneurial activities.

Finally, the module will introduce two factors contributing to the dynamism of different business settings, namely the role of competitive and cooperative relations in building dynamic contexts, and the role of knowledge flows for dynamism in the local setting. Expected learning outcomes: This module aims to equip the student to identify, analyze, and strategically plan for entrepreneurial activity in dynamic business contexts. On successful completion of this course module, students should be able to: identify common characteristics of the different Nordic business settings supporting entrepreneurial activity describe and analyse the nature of different types of business settings, including clusters, industrial districts, innovation systems, and technological fields. evaluate the support for entrepreneurial activities within specific dynamic business settings. critically reflect on and develop knowledge from scientific articles apply theoretical knowledge onto real-life business situation. Focus of instruction The core topics of the module will be covered through introductory lectures, literature seminars, paper writing and the analysis of dynamic business settings. Students will also continue with the business development assignment during this module, and coaching activities may be included. The teaching is characterized by a strong emphasis on student activity, and on action-based learning. A main focus in the students learning process is placed on individual and group studies of the course literature, with comprehension and understanding of the course content aided through literature seminars and case seminars. The student is therefore expected to participate actively in all lectures, literature seminars, group assignments, and case seminars. Student presentations will include both oral and written presentations. Examination modes The examination of this module comprises; active participation in seminars, a completed case assignment focusing on particular dynamic Swedish business settings, and an integrating open-book written exam (so-called home exam). The examination may also include short discussion papers related to literature seminars designed to test the students grasp of concepts covered by course literature. Finally, a completed feasibility study of the business development assignment is examined. Students must attend all seminars and case presentations in order to pass the module. See also note 6 below.

Module 3. Entrepreneurial activity and Business Venturing, 15.0 ECTS

Current debate places strong emphasis on the necessity of entrepreneurship in different parts of business society. This module has two main focuses; a) the entrepreneur and different entrepreneurial activities, b) early entrepreneurial processes and how to generate and develop business ideas The module starts with the question; Who is the entrepreneur? Research into entrepreneurship has placed strong emphasis on the individuals psychological motives for engaging in entrepreneurial activity. This module provides an understanding of entrepreneurial characteristics and how they differ from country to country. The importance of situational factors such as limited work opportunities and the presence of new resource combinations as driving forces for entrepreneurship will also be discussed. Entrepreneurship entails renewal and change, and takes place in many different situations requiring various entrepreneurial roles. Entrepreneurs are often defined as individuals who develop new ventures or spin-offs from existing businesses. To get an understanding of idea generation and business venturing in different milieus, research made on business incubators both within companies and within an academic context and their strategic importance for early business development processes will be discussed. Innovations can only lead to new products or new markets if an entrepreneur uncovers potential business opportunities. Here both networking and opportunity recognition are important factors and students will be provided with an understanding of the ways in which entrepreneurial activity can lead to new business venturing. As early entrepreneurial processes and how to generate and develop business ideas is a main focus of this module, theories for early entrepreneurial development stages will be mixed with more practically oriented techniques and methods in order to facilitate and support learning and understanding. Key concepts are Creativity Idea Generation Idea development Idea Conceptualization. Creativity is in general considered to be the key concept for successful renewal and development in the commercial sector but also in the public sector. The theoretical review of creativity will be mirrored from an

individual, group, company as well as from society perspective. The students will also apply some methods intended to detect and measure individual creativity. The module continues by focusing on the output of creativity; namely idea generation. Next, the process of idea development is emphasized, that is to step-by-step add value to the first embryonic thoughts/initiatives in order to approach business ideas closer to commercialization. The interplay between product idea and market needs and potentials is emphazised. Finally, the content of the three earlier modules will be merged and integrated into complete business concepts. These concepts must undergo a variety of tests i.e. market, sustainability, functionality, design where it is important to determine the commercial strength, the possibility for success for concepts. Emphasis will be given to the design, facilitation, and data analysis of focus groups in real or virtual environments. Students will setup their own market analysis and gain experiences with different data collection techniques, and combine the results with existing research to conclude on the viability of their business concept. Expected learning outcomes On successful completion of this course module, students should be able to: explore and follow the research front in early entrepreneurial processes use theoretical knowledge to analyze real-life business situations interpret and analyze their own creative potential and the use of creativity in early entrepreneurial processes understand and manage the entrepreneurial process, from identification, detection, and construction of potential business concepts to the exploitation of business opportunities evaluate the commercial potentials for business concepts

Notice: This course module initiates the practical, entrepreneurial, hands-on stream of courses that aim to build entrepreneurial competence by providing practical opportunities for acquiring creativity, alertness, and business acumen. Focus of instruction The accomplishment of the module is built on a combination of various teaching methods and learning activities. Lectures and literature studies are the core teaching methods combined with case-studies and business simulations. In the final stage of the module, different dimensions of a business concept will be confronted via various market tests, consumer panels, simulations and role plays. Students will be organized in small groups or entrepreneurial teams focusing on either a given business idea or a business idea created in the group. Attention will be given to group dynamics and individual development and reflection. During the whole process, from idea generation to the analysis and interpretation, each group are supported by entrepreneurs, companies, business angels and expertise organisations. Examination modes Comprehension and understanding of the course module contents will be assessed in workshops, seminar tutorials, simulations, business panel presentation and a home assignment. The home assignment will be a report on the research done on the students entrepreneurial idea. In the home assignment the students will describe their idea generation and idea development process, experienced pros and cons of different techniques. In the assignment the students shall use and analyze techniques for anticipating market possibilities, consumer reactions, or financial outcomes. The home assignment should also contain a plan how to continue the business development in upcoming courses. A passing level of minimum 50% is required on the final mark. See also note 6 below.

3. 4.

Expected learning outcomes Required knowledge

See above under respectively module

Universitet/hgskola: Fretagsekonomi C, 15 hp eller motsvarande. University: Courses in Business Administration (75 ECTS) At Basic level (A-level) and Intermediate level (B-level) a minimum of 60 ECTS in Management, Marketing, Accounting and Finance courses. At the C-level (Bachelor), a minimum 15 ECTS.

Students are also required to have English A from Swedish gymnasium or the equivalent.

5. 6.

Focus of instruction Examination modes

See above under respectively module

See also above under respectively module. The following grading system is used: Pass with distinction (Vl godknd, Vg, 75% or more), Pass (Godknd, G, 50% or more) and Fail (Underknd U, less than 50%). To receive the grade Pass with distinction (Vl godknd) in the course, the student must have achieved at least 75% of the total of points in the separate modules or the equivalent. In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given on each occasion. Students who do not pass the written examination will be offered a re-examination opportunity within 23 weeks. Beyond that, additional opportunities to complete the written examination normally arise every academic year one-week prior to the start of the autumn term. When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. Guest lectures during a module might be used as basis for examination. Student who has passed an examination can not redo the examination to get a higher grading. Grades on the course are awarded when students have passed all examinations and compulsory course elements.

7.

Academic credit transfer

Academic credit transfers are according to the University credit transfer regulations.

8.

Course literature

Module 1. Innovation in Changing Business Environments, 7.5 ECTS

Textbook: Bragg A. & Bragg M (2005) Developing New Business Ideas, a step-by-step guide to creating new business ideas worth backing, Financial Times, Prentice Hall A list of articles, including among others: Aldrich, Howard E., & Fiol, Marlene (1994) Fools rush in? The institutional context of industry creation. Academy of Management Review, 19 (4), 645-670. Chen, Ming-Huei (2006) Understanding the Benefitrs and Detriments of Conflict on Team Creativity Process; Creativity and Innovation Management, 15 (1), 105-116. Kim, W. Chan & Mauborgne, Rene (2004) Blue Ocean Strategy, Harvard Business Review, October, 76-84. Kratzer, Jan, Leenders, Rogers Th A. J. & Ven Engelen, Jo M. L. (2004) Stimulating the Potential: Creative Performance and Communication in Innovation Teams; Creativity and Innovation Management, 13 (1), 63-71. Kratzer, Jan, Leenders, Rogers Th A. J. & Ven Engelen, Jo M. L. (2006) Team Polarity and Creative Performance in Innovation Teams, Creativity and Innovation Management, 15 (1), 96-104. Porter, Michael E. (1979) How competitive forces shape strategy, Harvard Business Review, MarchApril, 137-145. Reference literature Bloisi, Wendy, Cook, Curtis W. & Hunsaker, Phillip L. (2007), chapters 10-11, Managing groups and teams and Conflict management and negotiation in Management & Organistional Behavior. Maidenhead: McGraw Hill Education. Kubr T., Marchesi H., Illar D., Keinhuis H (1998) Starting up, achieving success with professional business planning. McKinsey & Company, Inc. Switzerland. To be downloaded at: http://venturecup.inforce.dk/graphics/user/vc_swe/vc_swe_files/vc_swe_handbok/Handbook%20english. pdf

Module 2. Dynamic business settings, 7.5 ECTS

Course literature comprises a compendium of articles and book chapters, including; Albertini, S. (1999) Networking and division of labour the case of industrial districts in the north east of Italy. Human Systems Management, 18,pp 107-115 Asheim, B & Isaksen A (1997) Location , agglomeration and innovation: towards regional innovation systems in Norway?. European planning studies 5, pp299-330 Bengtsson, Maria & Kock, Sren (2000). "Coopetition in Business etworks - to Cooperate and Compete Simultaneously". Industrial Marketing Management, 29 (5), 411-426. Bresman, Henrik, & Slvell, rjan (1997). Local and global forces in the innovation process of the multinational enterprise an hour-glass model, NORDREFO 1997:3. Special issue: Regional Specialisation and Local Environment Learning and Competitiveness. Brown, John Seely & Duguid, Paul (2001). "Knowledge and Organization: A Social-Practice Perspective". Organization Science, 12 (2), 198-213. Etzkowitz, Henry & Leydesdorff, Loet (2000) The dynamics of innovation: from national systems and Mode 2 to a Triple Helix of university-industry-government relations. Research Policy, 20: 109-123. Gnyawli & Fogel (1994), Environments for Entrepreneurship: Key Dimensions and Research Implications. Entrepreneurships Theory and Practice. Summer 1994, pp 43-62 Goglio S. Introduction: the Industrial district as a proving ground. European planning studies vol 10 nr 4 pp 421-424.

Hofstede, G., Nooderhaven, N:G:, Thurik, A.R., Uhlander,LM, Wennekers,A.RM, &Wildeman, R.E (2004), Cultures role in entrepreneurship: self employment out of dissatisfaction. Chapter 8 in Brown, T.E, & Ulijn, J. Innovation, Entrepreneurships and Culture: The interaction between technology, progess and economic growth. Edgar Elgar.Publishing Inc. UK. Pp 162-203 Keeble, D. (2000) Collective learning processes in European High technology milieux. In David Keeble & Frank Wilkinson (eds.) High technology clusters, networking and collective learning in Europe. Pp199-229 Porter, Michael E. (1998). "Clusters and the New Economics of Competition". Harvard Business Review, 76 (6), 77-90. Pouder, Richard & St John, Caron (1996). "Hot Spots and Blind Spots: Geographical Clusters of Firms and Innovation". Academy of Management Review, 21 (4), 1192-1225. Shane, Shane (2003) The environmental context of entrepreneurship. Chapter 7 in A General Theory of Entrepreneurship. The Individual-Opportunity Nexus. Cheltenham: Edward Elgar. Wenger, E. (2000) Communities of practice and social learning systems. Organisation, 7(2), 225-246 Whitley, R. (1992) The social construction of organisations and markets: the comparative analysis of business recipes. In Reid, M 6 Hughes, M. (1992) Retinking Organizations: New directions in organization theory and analysis. Sage, London., pp.120-142 Note: some minor adjustment may be may to the above list by the beginning of the module.

Module 3. Entrepreneurial activity and Business Venturing, 15.0 ECTS

Textbooks: Shane, S. (2003). A general theory of entrepreneurship. The individual-opportunity nexus. Cheltenham: Edward Elgar Publishing Limited. Bragg A. & Bragg M (2005) Developing New Business Ideas, a step-by-step guide to creating new business ideas worth backing, Financial Times, Prentice Hall Kubr T., Marchesi H., Illar D., Keinhuis H (1998) Starting up, achieving success with professional business planning. McKinsey & Company, Inc. Switzerland. To be downloaded at: http://venturecup.inforce.dk/graphics/user/vc_swe/vc_swe_files/vc_swe_handbok/Handbook%20english. pdf Articles: Antoncic, B. & Hisrich, R.D. (2001). "Intrepreneurship: Construct refinement and cross-cultural validation". Journal of Business Venturing, 16(5): 495-527. Burt G & van der Heijden K. (2003) First Steps: towards purposeful activities in scenario thinking and futures studies. Futures vol 35 pp 1011-1026 Claxton J.D., Brent Richie, J.R. & Zaichkowsky J. (1980), The Nominal Group Technique: Its potential for consumer research. Journal of Consumer research vol 7 December Dunham, L. & Venkataraman, S. (2002). "From Rational to Creative Action: Recasting Our Theories of Entrepreneurship". Darden School Working Paper. DSWP-02-06. Granovetter, M. (1985). "Economic Action and Social Structure: The Problem of Embeddedness". American Journal of Sociology, 91(3): 481-499. Gruber M. (2006) Uncovering the value of planning in new venture creation: A process and contingency perspective. Journal of Business Venturing vol 22 pp 782-807 Mitchell V.W. (1991), the Delphi Techniques: An Exposistion and Application. Technology Analysis and Strategic Management vol 3 no 4, pp 333-358 Minniti M., Bygrave W.D., Autio E. (2005). "Global Entrepreneurship Monitor: 2005 Executive Report" to be downloaded at GEM Consortium website: http://www.gemconsortium.org/download/1147080420578/GEM_2005_Report.pdf

Morgan D.L. (1996) Focus groups, Annual Review of Sociology vol 22, 129-152 Paulus P.B., Yang, H (2000) Idea generation in Groups: A Basis for Creativity in Organizations, Organizational Behavior and Human Decision Processes vol 82 No.1 Sarasvathy, S.D. (2001). "Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency". Academy of Management Review, 26(2): 243-263. Sarasvathy, S., Dew, N., Velamuri, S.R. & Venkataraman, S. (2003) Three views of entrepreneurial opportunity. In Acs, Z.J. & Audretsch, D,B. (eds) (2003). Handbook of Entrepreneurship Research. An Interdisciplinary Survey and Introduction. Shane S. & Delmar F. (2004) Planning for the market: business planning before marketing and the continuation of organizing efforts. Journal of Business Venturing vol 19, 767-785 Wynarczyk, P & Raine A. (2005), The Performance of Business Incubators and their pontential Development on the North East Region of England, Local Economy vol 20 no 2 205-220 More articles will be added.

Ume University, Ume School of Business, SE-901 87 Ume, Sweden Web: www.usbe.umu.se Phone: +46 (0)90-786 52 55. Fax: +46 (0)90-786 77 64. Text phone: +46 (0)90-786 59 00