The Social Science Of Entrepreneurship - Syllabus - Stanford 2008

8/9/2019 The Social Science Of Entrepreneurship - Syllabus - Stanford 2008

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The Social Science of EntrepreneurshipSociology 161, 261, Spring 2008

Stanford University

MW !1"6!#0 p$%$

&'opyrighted %aterial, do not distri(ute )ithout per%ission

*rofessor *atricia Thornton Teaching +ssistant

ffice -ours! M W 6!#0".!1 ffice -ours!and (y appoint%ent and (y appoint%ent

Telephone! 60$#80$011 Telephone!

E%ail! thornton/due$edu E%ail!

Course Description

Who is liely to (eco%e an entrepreneur -o) do you discover entrepreneurial

opportunities What are the factors that affect the success of entrepreneurial venturesWe )ill ea%ine these 3uestions in light of classic and contemporary theoryand

e%pirical research in the social sciences$

We use action learning as a %ethod of instruction4)hich integrates theory and research

)ith interaction )ith epert practitioners in the venturing co%%unity$ 5eadings

underscore universal principles action learning teaches current practices and %aretcycles$

Entrepreneurship is the endeavor to co%%erciali7e innovation$ We ea%ine ho)

individuals discover and create innovations, as )ell as ho) innovations are (rought to%aret (y (uilding a start"up venture, either independently or as a part of an eisting

organi7ation$ We focus on the levels of (oth person and place4 persons )ith the a(ility

to recogni7e and create innovations, and places )here innovations and resources todevelop innovation are highly concentrated$ Students conduct intervie)s in places that

are rich sources of entrepreneurial innovations, such as technology licensing offices,

venture capital and corporate venturing fir%s, and entrepreneurial develop%entorgani7ations$

The first part of the course focuses on ho) hu%an, social, and cultural capital influencesthe discovery of innovations$ The second part ea%ines ho) %arets and organi7ations

are drivers of innovation and entrepreneurship$ The %odel (elo) su%%ari7es these

relationships$

PERSON"""""""""""""""""PLACE""""""""""""""""""ENTREPRENEURSHIPSocial 'apital

9et)ors*rior Eperience

Environ%ents

:ncu(ator rgs;5egions 'ultures

Marets

-ierarchies

States


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The last part of the course )e apply theories of co%petition, cooperation, technological

change, and leadership to understand ho) to anticipate )indo)s of entrepreneurial

opportunity and ho) to %anage the challenges of ne) venture develop%ent$

ho should ta!e this course"

Undergraduate and co"ter% students )ho )ould lie to have the analytical sills to foundtheir o)n co%panies and create innovation in eisting co%panies$

hat are the course prere#uisites"

There are no prere3uisites$ The course recruits across %a?ors$ :t is helpful if you have

courses in psychology, sociology, and econo%ics and have taen sociology 160$

hat are the course o$%ecti&es" 'no(led)e o*+

1$ social science theories for discovering and developing innovations

2$ ho) to use theory to recogni7e @ solve pro(le%s @ predict future outco%es

#$ the organi7ation of environ%ents that are rich sources of innovations

A$ the resources for founding ne) ventures$ theories and strategies for leading the stages of gro)th in nascent co%panies

hy should I care a$out this course"

Entrepreneurship is a central deter%inant of innovation in societies, the accu%ulation and

distri(ution of )ealth, and the social and econo%ic status of individuals andorgani7ations$

Course *ormat

'lass sessions %ae use of lectures, discussions, fil%, and student and guest speaerpresentations$ The study 3uestions on the sylla(us are designed to focus your

attention on the points to (e discussed in class and are useful to prepare the case

study and intervie) assign%ents$ To shorten the length of case study assign%ents useattach%ents$ +ttach%ents are infor%ation in diagra%, graph, and nu%eric for%$:

have paired a theoretical reading )ith each case study$ The theoretical reading )ill

help you to interpret the facts in the case and address the 3uestions on the sylla(us$The (est grades go to students )ho use the theory reading to construct an argu%ent

that guides insightful state%ents a(out the %eaning and i%plications of the facts in

the case study$ Bogon on to the 'ourseWor )e(site to vie) the po)er point slides

presented in class and an annotated sylla(us )hich %otivates and su%%ari7es eypoints of the readings and ho) the readings as a )hole fit together$

Teams

:t is your responsi(ility to for% a tea% and if you select to co%plete the innovation

environ%ent intervie) assign%ent you )ill need to schedule a presentation date (y the

second or third class$ +lso : e%phasi7e that it taes considera(le lead ti%e to scheduleintervie)s )ith epert practitioners to co%plete this assign%ent$ *lease see %e or the

teaching assistant if you are having any difficulties$

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Ca&eats

+ll for%s of entrepreneurship cannot (e ade3uately covered in one course$ We )ill focuson (usiness innovations )ith the a(ility for high gro)th, not on non"profit social

entrepreneurship and ClifestyleD co%panies$ -o)ever, )ith prior approval students

have the flei(ility to craft assign%ents around these other for%s ofentrepreneurship$ Students do not develop a (usiness plan in this course$

Due Dates and Relati&e ,alues o* Course Assi)nments

ASSI-N.ENT DUE

DATE

DESCRIPTION / O0 0INAL -RADE

INDI,IDUAL

'lass *articipation 12

A; # < *rinting 'ase 12

A;1A +le Baats 'ase 12

;12 +pple 'ase 126;2 Mission Evaluation 12

6;A S%ile =actory 'ase 12

TEA. 1select 2 o* 34 :nnovation Environ%entintervie) @ presentation

28

6;A 'ase Study of EntrepreneurManaging 9e) Fenture

Gro)th

28

Co5term Students

:n addition to the a(ove assign%ents, co"ter% students )ill need to update the innovation

)e(site addresses at the end of the sylla(us$ This update should identify any sites that%ay have (eco%e inactive and add ne) sites$ *lease e%ail this assign%ent to %e no later

than the last day of finals$

Ph6D6 Students

'lass participation is re3uired$ The a(ove assign%ents are optional$ + 2 page paper

eploring ne) research 3uestions in entrepreneurship is due the last day of class$ Students%ay %ae prior arrange%ents to study a pheno%enon of interest in the field of

entrepreneurship$

Team Assi)nments 1select 2 o* 34

Inno&ation En&ironments Inter&ie( rite5up OR Presentation:t %ay (e easier to found ne) ventures in places that have %ore infrastructure, for

ea%ple regions )ith technology licensing offices, venture capital fir%s, angelorgani7ations, corporate venturing progra%s, incu(ators and other entrepreneurial

develop%ent organi7ations$ +n inherent part of the %ission of these organi7ations is to

influence individuals on ho) to discover and eploit entrepreneurial opportunities$ Hourassign%ent is to conduct an intervie) )ith an individualIsJ )ith line responsi(ility in an

environ%ent rich in entrepreneurial ideas and resources$ The )e(sites at the end of the

#


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sylla(us %ay spar possi(le ideas$ Hour intervie) eperience should allo) you to

(eco%e fa%iliar )ith one of these CplacesD and it should focus on ho) such

environ%ents provide training, sociali7ation, %entoring, and resources for individuals)ho )ant to (eco%e entrepreneurs and develop innovative co%panies$ Hour report

should cover (oth the pros and the cons of discovering and developing innovations in

such environ%ents fro% the perspective of the entrepreneur$

To learn fro% your intervie) eperiences, student tea%s )ill present a #0 %inute report

of their intervie) in the (eginning of class$ To organi7e your intervie) and to fra%e youranalysis you should dra) on one or t)o of the theories covered in a prior class$ Hour

class presentation should use a co%(ination of %edia, including video if possi(le$ +

)ritten report that su%%ari7es your %ain findings is due one )ee after your class

presentation and should approi%ate 8 dou(le spaced pages, plus attach%ents$+ttach%ents are infor%ation in diagra%, graph, and nu%eric for%$ *lease include a )ord

count at the end of the report and su(%it your presentation slides in hard and electronic

copy so that they can (e placed on the course )e(site$

While a co%(ination of secondary research %ethods %ay (e used, you are re3uired to

tae part in actual face"to"face conversations )ith at least one hu%an (eing )ho isno)ledgea(le a(out the organi7ation;environ%ent you are studying$ E%ail chats and

phone conversations are not su(stitutes, (ut %ay (e used in addition to face"to"face and

on"site conversations$

Case Study o* Entrepreneur .ana)in) Ne( ,enture -ro(th

'onduct a case study of an entrepreneur )ho is currently facing the challenges of

%anaging ne) venture gro)th$ =or guidance see the (elo) articles at the end of thesylla(us$

1$ -a%er%esh, -esett, and 5o(erts I200J$ C+ 9ote on Managing the Gro)ing

Fenture,D -arvard Kusiness School 'ase "80"02$2$ 'hurchill, 9eil '$ and Firginia B$ Be)is I18#J$ CThe =ive Stages of S%all Kusiness

Gro)th,D -arvard Kusiness 5evie) reprint 8##01$

Select an individual on the founding tea% )ho is in a line %anage%ent position of a

co%pany that has gro)n (eyond the initial start"up stage, (ut is not a %ature (usiness$

Hour case should not focus on the individualLs personal characteristics, (ut instead on the

entrepreneurLs %anage%ent style and strategies to overco%e start"up challenges$ Houshould intervie) this person a(out gro)th"related stu%(ling (locs and alternative

strategies that %ay have (een used to address these pro(le%s$ *lease do not intervie) a

friend or a fa%ily %e%(er$ This assign%ent should (e an opportunity to (uild your socialcapital$ This assign%ent should (e infor%ed (y the readings and (e approi%ately 20

pages dou(le"spaced plus attach%ents$ Secondary data sources are very useful for the

necessary (acground infor%ation$ This assign%ent re3uires a face"to"face intervie)unless the entrepreneur is located outside the geographic area$ *lease see prior approval

for such cases$ $

Specifically, your case study should de%onstrate an understanding of!

A


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Kacground4industry structure and dyna%ics, revie) (arriers to gro)th

co%%on in the industry, overvie) of co%pany history, including

infor%ation on founding date, founders, entry strategy, and perfor%ance todate$ +lso note patterns of gro)th, previous hurdles, and ena(ling

strategies that )ere developed$

Beadership Style4ho) does he or she %otivate e%ployees to acco%plishstrategic goals

Strategic +ssess%ent4descri(e the co%panyLs current position and strategy,

pinpoint areas of co%petitive advantage and )eaness$ -ighlight gro)th"related challenges currently facing the co%pany$

5eco%%endations4reco%%end strategies for overco%ing challenges

identified in your assess%ent$

0ormat *or Su$mittin) Assi)nments

*lease su(%it assign%ents in hard copy at the (eginning of class on the date designated

on p$ # of the sylla(us$


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0$A +"

8.$8 K

8A"86 K80$8#K"

.". '

.0".A ', and so on

To deter%ine your final grade your scores are )eighted per the relative values in the chart

on p$ #$ +ll %e%(ers of a tea% receive the sa%e grade$ :f for any reason you (elieve thattea% %e%(ers are not contri(uting e3uita(ly, please do not )ait until the end of the

course to discuss this pro(le% )ith %e$ :n such rare cases : reserve the right to survey

tea% %e%(ers and ad?ust individual grades (ased on a survey of student feed(ac$

Late Assi)nments and Emer)encies

The *i&e case analysis assi)nments cannot $e late $ecause they *orm the $asis *or

class discussion and *eed$ac! on the Courseor! (e$site6Kecause e%ergencies tend

to happen, you have the option to drop 1 case assign%ent or if you co%plete all caseassign%ents to drop the one )ith the lo)est score$ +ssign%ents other than discussion

cases )ill (e do)n graded 10N of the earned grade for each )ee they are late$

Readin)

Hou )ill have the opportunity to read the originaltheoretical argu%ents that are tested inconte%porary e%pirical research$ There is one classic (oo, Beadership in +d%inistration

(y *hilip Sel7nic and a course pac$ +ll %aterials are availa(le through University

5eaders at )))$universityreaders$co%;students$ Hou should (e a(le to do)nload the first

20N of the coursepac prior to purchase$ +n asteris identifies the reco%%endedreading$ To reduce costs, reco%%ended readings are not included in the course pac and

can (e found on reserve in Green li(rary or via the University :nternet ?ournal stores$

763

Class Introduction and O&er&ie(

. 768

Persons9ho :ecomes an Entrepreneur9Psycholo)y o* Entrepreneurship

5eading!1$ Krochaus and -or)it7 I186J OThe *sychology of the EntrepreneurO in The +rt

and Scienceof Entrepreneurship 2"AA

2$ 'ase! Guilder I18AJ O+ *atch of SandO The Spirit of Enterprise 2#"A1$

'ase *reparation Puestions!1$ :n )hat )ays are entrepreneurs psychologically distinct fro% other types of

individuals

2$ :s there an entrepreneurial personality

#$ What type of ris taers are entrepreneurs

A$ What do you thin of the psychological research on entrepreneurs

6
http://www.universityreaders.com/studentshttp://www.universityreaders.com/students


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$ What 3uestions are left unans)ered in this research

6$ Which attri(utionIsJ (est eplain Si%plotLs entrepreneurial (ehavior

a$ 9ature4-ard )ired4:P, *ersonality($ 9uture4Sociali7ation4Schooling, *arenting

c$ Buc4Environ%ental Events, right place, right ti%e

.$ :s there attri(ution (ias :f so, in )hat direction and )hy8$ -o) )ould you ran Si%plot on the psychological characteristics identified (y

Krochaus and -or)it7

'lass +ctivities!

1$


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2$ 'ase! Shane, Scott I1J$ +le Baats and 9KR 'orporation I


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argu%ent )hat are the ey differences (et)een 'atholicis% and refor%ed

*rotestantis% that laid the ground)or of We(erLs thesis

2$ -o) can We(erLs theory (e interpreted as a hu%an capital theory#$ :s religion a good %easure of the concept of culture

A$ Kased on the i%plications of the institutional logics case, )here )ould you loo

for innovative ideas )ith the potential for co%%erciali7ation Why$ Give an ea%ple of an innovation and entrepreneurial opportunity that co%es

fro% (ridging the cultures of different societal sectors$

6$ 'an you predict a future innovation (ased on the theoretical argu%ents of theinstitutional logics case

'lass +ctivity and Assi)nment!

1$ We )ill revie) the case preparation 3uestions in class as )e discuss the case$2$ Write a 1"2 page essay addressing the case preparation 3uestions$

. 7632

Place9Inno&ation Disco&ery.ar!ets9An En)ine o* Entrepreneurship

5eading!

1$ 5o(erts, Michael $ and -o)ard Stevenson I2002J$ C9e) Fenture =inancing,D

-arvard Kusiness School 9ote I9""802"1#1J$2$ Thornton, *atricia I2002J$ CTypology of =or%s 'o%peting for Fenturing Space$D

#$ Go%pers, *aul and oshua Berner I2000J$ CFenture 'apital Glossary,D Fenture

'apital 'ycle, M:T *ress$A$ Bogon to )))$lifescienceangels$co%

Puestions!

1$ 'an you associate the different types of funding )ith different types and stages ofdevelop%ent of start"ups

2$ What are the (enefits and detri%ents for the entrepreneur of founding a co%pany

)ith de(t versus e3uity financing

'lass +ctivity!

1$ Guest speaer! +ngel :nvestor

763> Pro*essor out o* to(n? this class (ill $e a session (ith the TA on your team

pro%ects

5eading!1$ 5o(erts, Michael $ I200AJ$ C-o) Fenture 'apitalists Evaluate *otential Fenture

pportunities,D -arvard Kusiness School 'ase, "80"01$2$ Go%pers, *aul and oshua Berner I200#J$ CE3uity =inancing,D -and(oo of

Entrepreneurship 5esearch! +n :nterdisciplinary Survey and :ntroduction$

Puestions!
http://www.lifescienceangels.com/http://www.lifescienceangels.com/


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1$ What is the nu%(er one deter%inant of the value of a start"up (y a venture

capitalist

2$ What is the %ost i%portant factor in deter%ining )hether or not a venturecapitalist funds an entrepreneur

. 763@Hierarchies9An En)ine o* Entrepreneurship

Entrepreneur as A))re)ator Entrepreneur as :ro!er o* Companies

Contin)ency? Transaction Cost? and Institutional Theories

5eading!

1$ 'handler, +lfred


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#$ Thornton, *atricia, -$ I2008J CKuilt to Bast! =ounding 9e) Fentures in the

Maret and -ierarchy,D )oring paper$

Puestions!

1$ What are the advantages and disadvantages of starting a ne) venture )ithin an

M"for% corporation IintrapreneurshipJ co%pared to the outside capital %aretsIe$g$, (ans, venture capital, private place%entJ

a$ -o) do the control %echanis%s and incentive structures differ

2$ 'an you descri(e the various %odels for organi7ing corporate venturing#$ -o) do the %odels differ in ter%s of their degree of centrali7ation Speculate on

)hat are the i%plications of these differences for the entrepreneur and the start"

up

A$ :f you )ere the 'E of the perfect :ntrapreneurial fir%4ho) )ould you descri(eit

'lass +ctivity!

1$ Guest speaer! 'orporate 'apital :nvestor

. 6

Re)ions9En)ines o* Entrepreneurship

5eading!1$ ucer, Bynne, Michael


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5eading!

1$ +ldrich, -o)ard and Martin 5uef I2006J$ rgani7ations Evolving, chapter10,

Sage$

Puestions!

1$


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'lass +ctivity and Assi)nment!

1$ We )ill revie) the case preparation 3uestions in class as )e discuss the case$

2$ Write a # page essay addressing the case preparation 3uestions in light of *orterLs%odel of the co%petitive forces to analy7e the %aret structure of the personal

co%puter industry and +ppleLs position in that %aret$ Trace +pplesL strategies in the

historical contet of changes in the structure of the %aret place over the last 2 years$

627

Cooperation and .ar!et Structure Shapes indo(s o* Opportunity *or De&elopin)

Products and Partners

Increasin) Returns Theory

5eading!

1$ +rthur, W$ Krian$ I16J$ C:ncreasing returns and the ne) )orld of (usiness$D-arvard Kusiness 5evie) uly"+ugust .A! 100"10$

2$ 'hes(rough, -enry W$ and


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1$ Tush%an, Michael B$ and *hilip +nderson$ I186J$ CTechnological


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The Role o* Leadership in Institutionaliin) .eanin) and Purpose

Institutional Theory and Or)aniational Culture

5eading!1$ Sel7nic, *hilip I1.J$ Beadership in +d%inistration! + Sociological

:nterpretation, p$1"6A$

2$


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1$


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SOCIOLO-G 2=23=2 SU..ARG

1.


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DATE TOPIC LEARNIN- TOOLS

INTRODUCTION

W A"2 'ourse vervie)

HO :ECO.ES AN ENTREPRENEUR

M A". Uni3ue *ersonalities *sychological Theories

*ractice4Si%plot 'aseINNO,ATION DISCO,ERG9Person

W A" Distri$ution o* In*ormation4*rior Eperience -u%an 'apital Theory

*ractice4#


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We(sites for :deas for :nnovation Environ%ents :ntervie)s

9ational


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Kench%ar 'apital, )))$(ench%ar$co%

Qleiner, *erins, 'aufield @ Kyers, http!;;)))$pc($co%;

Se3uoia 'apital, http+(((6se#uoiacap6com

The Fenture 'apital :nstitute (((6&cinstitute6or)

Google


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The National :usiness Incu$ation Association? (((6n$ia6or)

0irst 0li)ht ,enture Capital Center?(((6nctda6or)

HahooV


23/26

M:T! http+(e$6mit6edutlo(((

Kereley! http+otl6:er!eley6edu

Stanford http+otl6stan*ord6edu*lash6html

-arvard http+(((6techtrans*er6har&ard6edu

'altech http+(((6ott6caltech6edu

National Institutes o* Health O**ice o* Technolo)y Trans*er monitors and handles trans*er

o* NIH in&entions and also mana)es the patent and licensin) acti&ities *or the 0ood

and Dru) Administration

http+ott6od6nih6)o&a$outKniha$out6html

Bining :deas and :nnovation in Technology Transfer, http!;;)))$i(ridgenet)or$org

9ational University of Singapore Entrepreneurship 'enter!http!;;)))$nus$edu$sg;nec;

:ndustry +ssociations and Entrepreneurship *olicy

The Se%iconductor 5esearch 'orporation, )))$src$org$ This organi7ation signals un%etgro)th areas of innovation fro% the perspective of industry$

The 5esearch Triangle 'ouncil for Entrepreneurial


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S%all Kusiness and Technology


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+ustralian Fenture 'apital ournal http!;;)))$vc?ournal$co%$au;

'enter for :nternational *rivate Enterprise(((6cipe6or)

:nternational Entrepreneurship =oru% )))$esse$ac$u;conferences;ief;

-ispanic Kusiness =astest Gro)ing 100 )))$hispanic(usiness$co%

E"Entrepreneur a ne) voice for young +ra( entrepreneurshttp!;;)))$a%einfo$co%;ne)s;E"Entrepreneur;

:rish Enterprise Strategy Group http+(((6*or*as6iees)

'ontact Singapore We(site! The Kest *lace to Set Up Kusiness Ipportunities for

EntrepreneurshipJ! http!;;)))$contactsingapore$org$sg;opporforEnt$sht%l

Singapore Econo%ic


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Stanford 'enter for Social :nnovation http+(((6)s$6stan*ord6educsi

The :nstitute for Social Entrepreneurs http+(((6socialent6or)6

Social Fenture 9et)or http+(((6s&n6or)

'o%%unity

Documents

The Social Science Of Entrepreneurship - Syllabus - Stanford 2008