+1 (208) 254-6996 [email protected]
  

The primary goal of the replies is to discuss the threads by offering analysis and critiques to include specific strengths and weaknesses and other insights for consideration. In your replies, address at least 1 strength and 1 weakness per reply.

each response must be supported with at least 2 peer-reviewed sources, APA format 420 words each

Don't use plagiarized sources. Get Your Custom Essay on
Case Study 1
Just from $13/Page
Order Essay

Business Research Methods, 14e/Schindler

1

>cases

In periods of economic downturn, government leaders try to stimulate entrepreneurship activity. Project directors of the Global Entrepreneurship Monitor, partnered with the Kauffman Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, the London School of Business and Babson College,designed a research study to add insight to what activities would be most likely to stimulate entreprenship activities.

>Abstract

>The Scenario What government policies and initiatives are most likely to generate high levels of entrepreneurial activity? Which are positively correlated with the economic well-being of a country as measured by growth in GDP and job formation? Project directors of the Global Entrepreneurship Monitor (GEM), who define entrepreneurship as “any attempt at new business or new venture creation, such as self-employment, a new business organi- zation, or the expansion of an existing business, by an individual, a team of individuals, or an established business,” suggest the following:

• Promoting entrepreneurship, especially outside the most active age group (25– 44), with specific programs that support entrepreneurial activity.

• Facilitating the availability of resources to women to participate in the entre- preneurial process.

• Committing to long-term, substantial postsecondary education, including training programs designed to develop skills required to start a business.

• Emphasis on developing an individual’s capacity to recognize and pursue new opportunities.

• Developing the capacity of a society to accommodate the higher levels of income disparity associated with entrepreneurial activity.

• Creating a culture that validates and promotes entrepreneurship throughout society.

Researchers at the Kauffman Center for Entrepreneurial Leadership (Babson College) and the London Business School revealed these propositions based on a study designed to prove a causal relationship between factors that affect entrepreneurial opportunities and potential, to business dynamics and national economic growth and well-being.

The research design compensated for lack of control of extraneous variables by using data from 10 nations “with diversity in framework conditions, entrepreneurial sectors, business dynamics, and economic growth.” The longitudinal study proposed to prove or disprove a new conceptual model of cultural, economic, physical, and political factors to predict economic growth (Exhibit C-GEM 1–1).

A GEM of a Study

>The Research

704

A GEM of a Study

What government policies and initiatives are most likely to generate high levels of entrepreneurial activity? Which are positively correlated with the economic well-being of a country as measured by growth in GDP and job formation? Project directors of the Global Entrepreneurship Monitor (GEM), who define entrepreneurship as “any attempt at new business or new venture creation, such as self-employment, a new business orga- nization, or the expansion of an existing business, by an individual, a team of individu- als, or an established business,” suggest the following:

• Promoting entrepreneurship, especially outside the most active age group (25–44), with specific programs that support entrepreneurial activity.

General National Framework Conditions

Openness Government Financial markets Technology, R & D Infrastructure Management (skills) Labor markets Institutions

• • • • • • • •

Entrepreneurial Framework Conditions

Financial Government policies Government programs Education & training R & D transfer Commercial, legal infrastructure Internal market openness Access to physical infrastructure Cultural, social norms

• • • • • •

• •

Business Dynamics

(firms, jobs) • • • •

Births Expansion Deaths Contraction

Entrepreneurial Opportunities

Entrepreneurial Capacity

Economic Growth

(GDP, jobs) Social,

Cultural, Political Context

Existence Perception

• •

Skills Motivation

• •

EXHIBIT C-GEM 1–1 Conceptual Model: The Entrepreneurial Sector and Economic Growth

coo98706_cases.qxd 6/9/02 2:05 PM Page 704

• Facilitating the availability of resources to women to participate in the entrepre- neurial process.

• Committing to long-term, substantial postsecondary education, including training programs designed to develop skills required to start a business.

• Emphasis on developing an individual’s capacity to recognize and pursue new opportunities.

• Developing the capacity of a society to accommodate the higher levels of income disparity associated with entrepreneurial activity.

• Creating a culture that validates and promotes entrepreneurship throughout society. Researchers at the Kauffman Center for Entrepreneurial Leadership (Babson Col-

lege) and the London Business School revealed these propositions based on a study designed to prove a causal relationship between factors that affect entrepreneurial opportunities and potential, to business dynamics and national economic growth and well-being. The research design compensated for lack of control of extraneous vari- ables by using data from 10 nations “with diversity in framework conditions, entrepre- neurial sectors, business dynamics, and economic growth.” The longitudinal study proposed to prove or disprove a new conceptual model of cultural, economic, physical, and political factors to predict economic growth (Exhibit C-GEM 1–1).

CASES 705

Culture

Favorable

Neutral

Unfavorable

0.8

0.15

0.34

–0.07

–0.2

–0.09

–0.92

–0.65

–0.36

0.87

U.S.

Canada

Israel

U.K.

Germany

Denmark

France

Japan

Finland

Correlation to Start-Up Rate

1.23

0.55

–0.06

0.17

–0.22

–0.3

–1.01

0.29

–0.94

0.79

0.44

0

–0.97

–0.03

–0.21

–0.56

–0.81

–0.52

–0.33

0.58

0.21

–0.12

0.29

–0.02

0.03

–0.12

–0.23

–0.39

–0.1

0.69

–0.46

–0.28

–0.26

–0.97

–1.24

–0.52

–1.21

–1.06

–0.94

0.65

0.8

0.22

0.04

0.08

0.15

0.39

–0.1

–0.68

–0.22

0.71

0.88

0.86

0.67

0.57

0.29

0.33

–0.49

–0.61

1.03

0.55

Equity Debt R&D Education Subcontractor Legal, Banking

EXHIBIT C-GEM 1–2 Entrepreneurial Framework Conditions: Cross-National Comparisons of Key Informant Multi-Item Indexes

coo98706_cases.qxd 6/9/02 2:05 PM Page 705

Business Research Methods, 14e/Schindler

4

>Sources

Various data collection methods were employed, including: • Promoting entrepreneurship, especially outside the most active age group (25–

44), with specific programs that support entrepreneurial activity. • Current, nonstandardized data collected by each national research team. • Two rounds of adult population surveys (1,000 randomly selected adults per

country) to measure entrepreneurial activity and attitude, completed and coordinated by an international market survey firm by phone—or face-to-face in Japan. (Market Facts [Arlington, VA] did the first round of data collection in June 1998 [Canada, Finland, Germany, the United Kingdom, and the United States]. Audience Selection, Ltd. [London] conducted the second round in March 1999 from all 10 countries.)

• Hour-long personal interviews with 4 to 39 experts (key informants) in each country.

• Detailed 12-page questionnaire completed by each key informant.

The perception of opportunity (.79) and the two measures of entrepreneurial potential of the population—capacity (.64) and motivation (.93)—positively correlate with business start-up rates. And start-up rates positively correlate with growth in GDP (.60) and level of employ- ment (.47).

While many cross-sectional measures still remain in this ongoing study, study directors claim, “The support for the conceptual model is encouraging, although clearly not conclu- sive. GEM provides a robust framework within which national governments can evolve a set of effective policies for enhancing entrepreneurship.”

1. What are the independent and dependent variables in this study? 2. What are some of the intervening, extraneous, and moderating variables that the study

attempted to control with its 10-nation design? 3. Can you do a causal study without controlling intervening, extraneous, and moderating

variables? 4. What is the impact on study results of using national experts (key informants) to

identify and weigh entrepreneurial framework conditions? 5. Can you do a causal study when much of the primary data collected is descriptive

opinion and ordinal or interval data?

• Developed for Business Research Methods, 7e. Used with permission of Pamela S. Schindler and Donald R. Cooper. © 2001

• Global Entrepreneurship Assessment: National Entrepreneurship Assessment, UK, 1999 Executive Report. Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, 1999.

• Reynolds, P., M. Hay, and M. Camp. Global Entrepreneurship Monitor: 1999 Executive Report. Kauffman Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, 1999.

• Reynolds, P., J. Levie, and E. Autio. Global Entrepreneurship Monitor:1999 Data Collection- Analysis Strategies Operations Manual. Babson College and the London Business School, 1999.

• Reynolds, P., J. Levie, E. Autio, M. Hay, and B. Bygrave. Global Entrepreneurship Monitor: 1999 Research Report: Entrepreneurship and National Economic Well-Being. Babson College and the London Business School, 1999.

• Zacharakis, A., P. Reynolds, and W. Bygrave. Global Entrepreneurship Assessment: National Entrepreneurship Assessment, United States of America, 1999 Executive Report. Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, 1999.

A GEM of a Study

>>>>>Discussion

1. The dependent variable (DV) is the attempt at a new business or new venture creation. It’s the primary interest to the project directors of the Global Entrepreneurship Monitor and the Kauffman Center for Entrepreneurial Leadership of Ewing Marion Kauffman Foundation, the London School of Business, and Babson College. An attempt at a new business or new venture creation can be monitored, predicted, or measured and it is expected to change from a controlled independent variable (IV).

The IVs are:

· Promoting entrepreneurship, especially outside the most active age group (25–44), with specific programs that support entrepreneurial activity.

· Facilitating the availability of resources to women to participate in the entrepreneurial process.

· Committing to long-term, substantial postsecondary education, including training programs designed to develop skills required to start a business.

· Emphasis on developing an individual’s capacity to recognize and pursue new opportunities.

· Developing the capacity of a society to accommodate the higher levels of income disparity associated with entrepreneurial activity.

· Creating a culture that validates and promotes entrepreneurship throughout society.

The IVs are manipulated into affecting the DV, which is the attempt at a new business or new venture creation. This study researches the interaction of these two variables and is the basis of causal studies. A study on role conflicts at the workplace and its affects on work stress demonstrates the relationship of the two variables. “Studies have shown that role conflicts can reduce employee’s work satisfaction and increase their anxiety, which in turn lead to work stress” (Fu-Chiang, 2019).

2. The intervening variables are the perception of opportunity, potential of the population capacity, and the potential of the population motivation. These variables are thought come from IVs and may be the actual cause towards DVs. The lack of control of extraneous variables was compensated by using data from 10 nations with diversity in framework conditions, entrepreneurial sectors, business dynamics, and economic growth. Extraneous variables have little effect on DV. They are included to eliminate any biases, resulting a more accurate study. The moderating variables are entrepreneurs outside the most active age group (25-44), and women entrepreneurs. They are secondary IVs that might have a strong influence on the IV – DV relationship. It is believed that entrepreneurs who are women and entrepreneurs who are not the age of 25-44 would make a huge difference on the DV. A study on using instrumental variables and quasi-trial analysis for ESME, Epidemiological Strategy and Medical Economics, included additional variables in its study to lower any biases towards the study. “The SIMEX method reduces the bias induced by measurement error by establishing a relationship between measurement error-induced bias and the variance of the error” (Ezzalfani, 2021).

3. A causal study can be done without controlling intervening, extraneous, and moderating variables. Only a dependent and IV is required. Intervening variables are not directly controlled, are phenomena created by IVs, and observed to be the manipulator of the DV. There are two kinds of extraneous variables, control variables and confounding variables. Control variables affect the DV but not often, and confounding variables divide the DV stating only certain parts of the DV are influenced. Extraneous variables are measured to exclude any biases. The moderating variable narrows down an IV to a more specific range. It has significant effects towards the relationship between the IV and DV, but it’s not a necessity. The purpose of these variables is to refine the results with more thorough research. “A moderator variable can be considered when the relationship between a predictor variable and dependent variable is strong, but most often it is considered when there is an unexpectedly weak or inconsistent relationship between a predictor and a dependent variable” (Farooq 2017).

4. National experts can give their professional opinion on the openness to new entrepreneurship, their view on the role of the government, advise on financial markets, and information on technology and research and development. They can also assist in following a legal infrastructure, give management support, apply knowledge on labor markets, and provide knowledge on institutions. National experts give an extra step to the conceptual model for The Entrepreneurial Sector and Economic Growth. By using national experts, entrepreneurial framework conditions and entrepreneurial capacity can be skipped, leaving a path to economic growth through entrepreneurial opportunities and business dynamics. A study on how the government impacts entrepreneurial rice farmers reports positive results. “… the more conducive the role of the government is in optimizing an agroecosystem, the more it will increase the entrepreneurial orientation…” (Anisa, 2021).

5. A causal study can be done when much of the primary data collected is descriptive opinion and ordinal or interval data. It can be grouped into four types of data that are based on the type of measurement scale used to collect the data. The four types of data are nominal, ordinal, interval, and ratio. From these four types of data nominal data has classification but does not have order, equal distance, or natural origin. Ordinal is the same as nominal but includes order, and interval is the same as ordinal but includes equal distance.

Secondary data is collected from primary data. Primary data is interpreted to at least one level to form secondary data. When a causal study is made, a DV and an IV is needed to conclude a correlation. Primary data is collected on a DV, and secondary data can be used as IVs. In a recent study on depression and pain, it concluded that depression and pain is strongly found among low- and middle-income countries (LMICs). Primary data was collected on LMICs and secondary data such as the gender and age of residents were chosen as IVs. “Female sex, older age, lower levels of education and wealth, anxiety, arthritis, diabetes, angina, and asthma were significantly associated with higher prevalence of severe pain” (Stubbs, 2017).

The Independent variables in this study are entrepreneurial framework conditions, entrepreneurial capability, entrepreneurial opportunities, and general national framework conditions.

The Dependent variables in this study are economic growth which is measured with job opportunities, business dynamics, and the Gross Domestic Product (GDP).

2. What are some of the intervening, extraneous, and moderating variables that the study attempted to control with its 10-nation design?

Some of the variables that the study tried to control with its 10-nation design were employment opportunities, social culture, and economic growths as well. The rate of business start-up portrays a positive correlation with growth in the GDP at 0.60 and the employment level at 0.47.

In addition, this study includes a powerful correlation with the perceived opportunity at 0.79 and entrepreneurial potential measured by capability at 0.6, and the level of motivation at 0.93. The measurements mentioned indicate that the perceived positive opportunities to start up a business in every country paired with skills and motivation to seize the opportunities is realistic.

3. Can you do a causal study without controlling intervening, extraneous, and moderating variables?

I believe that all variables should be accounted for to achieve a reliable level of certainty of success. Removing one variable changes the entirety of the test and one would lose the reliability of the hypothesis.

In addition, Clausen, Hytti, & Solvoll (2016) state, “the study finds that the entrepreneurial identity influences whether the individual predominantly engages ineffectual or causal behavior”. A casual study based on entrepreneurial opportunities should examine causes and effects between independent and dependent variables to depict a direct relationship between the two.

Lastly, after stating these points, I believe, order to conduct a study without controlling intervening, extraneous, and moderating variables would be extremely unreasonable. With these variables being controlled, and accurate causality within the study can be seen.

4. What is the impact on study results of using national experts (key informants) to identify and weigh entrepreneurial framework conditions?

National experts or key informants are those with broad knowledge and experience within the entrepreneurial framework conditions within the ten countries chosen by this study. The experts were those that identified the critical issues in every country that was selected.

In addition, the experts focused primarily on causative factors that were related to the rate of business start-ups in each country. Every expert completed a twelve-page questionnaire after conducting interviews and using personal experience. We may conclude that statistical errors within the study results were few since the data was from primary sources. It may also be included, that the key informants were a real illustration of the population of interest.

5. Can you do a causal study when much of the primary data collected is descriptive opinion and ordinal or interval data?

This study was managed with primary information that was mainly collected via descriptive opinion and ordinal or interval information. This study features a vital quantity of variables that would have to be monitored for a considerable amount of time. The more variables involved need an extended quantity of time in most cases to take into consideration all the factors that might alter the model.

           Conclusion

The primary focus of this study was to explore the scope and nature of influences that affect economic growth, with the implementation of data from several countries around the world. The mentioned research does not list the exact reasons for economic growth. The research techniques and processes employed in this study ought to assist researchers in creating a clear image of the economic growth over time.

Order your essay today and save 10% with the discount code ESSAYHELP