Hunt published in Journal of Small Business Management, Management Decision
Rick Hunt, assistant professor for the Division of Economics and Business
GOLDEN, CO, March 14, 2017 —
Rick Hunt, assistant professor for the Division of Economics and Business, recently published “The Entrepreneurship Industry: Influences of the Goods and Services Marketed to Entrepreneurs," in the Journal of Small Business, as well as “Entrepreneurial Round Tripping: The Benefits of Newness and Smallness in Multi-Directional Value Creation" in Management Decision.
R.A. Hunt and K. Kiefer. (2017) "The Entrepreneurship Industry: Influences of the Goods and Services Marketed to Entrepreneurs." Journal of Small Business Management.
ABSTRACT: This paper constitutes the first comprehensive attempt to define and assess entrepreneurship as an industry, and it is the only study to date to empirically evaluate the extent to which the entrepreneurship industry (EI) is associated with entrepreneurial actions and outcomes. EI is defined as the goods and services explicitly intended for opportunity discovery and development by current and prospective entrepreneurs, an industry with $13 billion in annual revenue. In order to assess EI's influence, we employ a matched set comparison of EI consumers and non-consumers, which reveals that high levels of EI consumption are associated with an increase in entrepreneurial activity but a decrease in performance and survival prospects. The findings address material gaps in existing frameworks by adding EI to the entrepreneurial contexts that exert a potent influence on the identification, development, and exploitation of opportunities.
R.A. Hunt and L.L. Ortiz-Hunt. (2017) "Entrepreneurial Round Tripping: The Benefits of Newness and Smallness in Multi-Directional Value Creation." Management Decision.
ABSTRACT: In this study, we develop and empirically test the theory that new industry entrants hold advantages over incumbents in the shift from unidirectional to multi-directional revenue streams. Using a Cobb-Douglas production function, modified to isolate returns to innovation, we examine data from three separate contexts: steamships on western U.S. rivers (1810-1860), satellite-based Internet services (1962–2010), and food waste recycling (1995-2015). The results reveal that while incumbents often attempt to stretch existing technologies to fit emerging circumstances, entrepreneurial innovators achieve greater success by approaching multi-directional value creation as a distinct challenge, one requiring new technologies, organizational forms and business models. While existing theories have primarily attributed incumbent inertia to a firm’s inability perceive and pursue radical innovations, our results also suggest that existing firms are simply unwilling to pursue innovations that are likely to erode the marginal profitability of their respective business models. Ironically, rather than protecting incumbents’ financial interests, we find that “marginal reasoning” can lead to diminished performance and even extinction. Our proposed framework and empirical findings have implications for a diverse array of multi-directional frontiers, including: social networking, commercial space travel, distance education, and medical treatments using nanoscale technologies.