Technological determinants of entrepreneurship performance: Evidence from OECD countries
Vol. 7(22), pp. 2126-2133, 14 June, 2013
DOI: 10.5897/AJBM12.574
ISSN 1993-8233 © 2013 Academic Journals http://www.academicjournals.org/AJBM African Journal of Business Management
Full Length Research Paper
Technological determinants of entrepreneurship performance: Evidence from OECD countries
Ashraf Galal Eid1* and Mourad Mansour2
¹Finance and Economics Department, King Fahd University of Petroleum and Minerals, Saudi Arabia.
²Management and Marketing Department, King Fahd University of Petroleum and Minerals, Saudi Arabia.
Accepted 9 May, 2013
In this paper we acknowledge the role of technology as an engine in fostering entrepreneurship. We examine the technological determinants of entrepreneurship performance in twenty three developed
OECD countries during the period 2000-2007 using two measures of entrepreneurship performance: the number of newly registered corporations, which is introduced by the World Bank Group
Entrepreneurship Survey (2008), and the number of new enterprises, which is introduced by the OECD
Structural and Demographic Business Statistics. Results of the mixed-effects model suggest a positive and significant relationship between the intensity of cellular phones, patent applications, and computer and communications services on entrepreneurship performance while the impact of personal computers ownership is found to be inconclusive.
Key words: Entrepreneurship performance, technological changes, patents, mixed-effects model, OECD countries. INTRODUCTION
It has been widely recognized that successful entrepreneurship fosters the production of wealth for a nation, creates jobs, increases the standard of living of the society and contributes to political and social stability, innovation and economic development (Postigo and
Tamborini, 2007). For example, Faria et al. (2008) claim that there exists a two-way dynamic relationship between entrepreneurship and unemployment. When new startups hire workers,
DOI: 10.5897/AJBM12.574
ISSN 1993-8233 © 2013 Academic Journals http://www.academicjournals.org/AJBM African Journal of Business Management
Full Length Research Paper
Technological determinants of entrepreneurship performance: Evidence from OECD countries
Ashraf Galal Eid1* and Mourad Mansour2
¹Finance and Economics Department, King Fahd University of Petroleum and Minerals, Saudi Arabia.
²Management and Marketing Department, King Fahd University of Petroleum and Minerals, Saudi Arabia.
Accepted 9 May, 2013
In this paper we acknowledge the role of technology as an engine in fostering entrepreneurship. We examine the technological determinants of entrepreneurship performance in twenty three developed
OECD countries during the period 2000-2007 using two measures of entrepreneurship performance: the number of newly registered corporations, which is introduced by the World Bank Group
Entrepreneurship Survey (2008), and the number of new enterprises, which is introduced by the OECD
Structural and Demographic Business Statistics. Results of the mixed-effects model suggest a positive and significant relationship between the intensity of cellular phones, patent applications, and computer and communications services on entrepreneurship performance while the impact of personal computers ownership is found to be inconclusive.
Key words: Entrepreneurship performance, technological changes, patents, mixed-effects model, OECD countries. INTRODUCTION
It has been widely recognized that successful entrepreneurship fosters the production of wealth for a nation, creates jobs, increases the standard of living of the society and contributes to political and social stability, innovation and economic development (Postigo and
Tamborini, 2007). For example, Faria et al. (2008) claim that there exists a two-way dynamic relationship between entrepreneurship and unemployment. When new startups hire workers,
References: Armington C, Acs ZJ (2002). The Determinants of Regional Variation in New Firm Formation Atrostic BK, Nguyen SV (2002). Computer Networks and U.S. Audretsch DB, Keilbach M, Lehmann EE (2006). Entrepreneurship and Economic Growth Audretsch DB, Keilbach M (2004). Entrepreneurship Capital and Economic Performance Autor DH, Katz LF, Krueger AB (1998). Computing Inequality: Have Computers Changed the Labor Market? Q Cette G, Mairesse J, Kocoglu Y (2002). Diffusion of ICRs and Growth of the French Economy over the Long-term, 1980-2000 Desai S (2009). Measuring Entrepreneurship in Developing Countries. UNU-WIDER Research Paper No. 2009/10. Fairlie RW (2006). The Personal Computer and Entrepreneurship. Faria JR, Cuestas JC, Gil-Alana L (2008). Unemployment and Total effects (β1+ u1i) Friis C, Karlsson C, Paulsson T (2006). Relating Entrepreneurship to Economic Gompers PA, Kovner A, Lerner J, Scharfstein DS (2008). Performance Persistence in Entrepreneurship Grilo I, Thurik R (2004). Determinants of Entrepreneurship in Europe. Hall J, Rosson P (2006). The Impact of Technological Turbulence on Entrepreneurial Behavior, Social Norms and Ethics: Three InternetBased Cases Henriquez C, Verheul I, Knaap IVD, Bischoff C (2001). Determinants of Entrepreneurship in France: Policies, Institutions and Culture. Hochberg Y, Ljungqvist A, Lu Y (2007). Whom You Know Matters: Venture Capital Networks and Investment Performance Holcombe RG (1998). Entrepreneurship and Economic Growth. Q. J. Austrian Econ. 1:45-62 Hulsbeck M, Pickave EN (2012) Kukoc K, Regan D (2009). Measuring Entrepreneurship. Retrieved from http://www.treasury.gov.au/documents/1352/PDF/02_Entrepreneursh Kuhn P, Skuterud M (2002). Job Search Methods: Internet versus Traditional Kuhn P, Skuterud M (2004). Internet Job Search and Unemployment Eid and Mansour Leitão J, Franco M (2008). Individual Entrepreneurship Capacity and Performance of SMEs OECD (2009). Measuring Entrepreneurship: a Collection of Indicators. Parker SC (2008). Statistical Issues in Applied Entrepreneurship Research: Data, Methods and Challenges, in Measuring Postigo S, Tamborini MF (2007). Fostering Entrepreneurship in Crisis