Reflections on the Advent of a More Enterprising Culture in Finland

246 Pages·2002·18.21 MB·English

by  Kimmo Hyrsky

JYVA SKYLA STUDIES IN BUSINESS AND ECONOMICS 10
Kimmo Hyrsky
Reflections on the Advent of a More
Enterprising Culture in Finland:
An Exploratory Study
Esitetiiiin Jyviiskyliin yliopiston taloustieteiden tiedekunnan suostumuksella
julkisesti tarkastettavaksi yliopiston vanhassa juhlasalissa (S212)
helmikuun 23. piiiviinii 2001 kello 12.
Academic dissertation to be publicly discussed, by permission of
the School of Business and Economics of the University of Jyviiskylii,
in Auditorium S212, on February 23, 2001 at 12 o'clock noon.
~
~
~
JYVA SKYLAN YLIOPISTO
JYV ASKYLA 2001
Reflections on the Advent of a More
Enterprising Culture in Finland:
An Exploratory Study
JYVA SKYLA STUDIES IN BUSINESS AND ECONOMICS 10
Kimmo Hyrsky
Reflections on the Advent of a More
Enterprising Culture in Finland:
An Exploratory Study
~
~
~
JYVA SKYLAN YLIOPISTO
JYV ASKYLA 2001
Editors
Tuomo Takala
School of Business and Economics, University of Jyvaskyla
Pekka Olsbo and Marja-Leena Tynkkynen
Publishing Unit, University Library of Jyvaskyla
ISBN 951-39-0881-X (nid.), 978-951-39-5172-6 (PDF)
ISSN 1457-1986
Copyright © 2001, by University of Jyvaskyla
Jyvaskyla University Printing House, Jyvaskyla
and ER-Paino Ky, Lievestuore 2001
ToPirjo
ABSTRACT
Hyrsky, Kimmo
Reflections on the Advent of a More Enterprising Culture in Finland:
An Exploratory Study
JyvaskyHi: University of Jyvaskyla, 2001, 244 p.
(Jyvaskyla Studies in Business and Economics
ISSN 1457-1986; 10)
ISBN 951-39-0881-X (nid.), 978-951-39-5172-6 (PDF)
Finnish Summary
Diss.
The present thesis constitutes a pilot effort in studying Finnish enterprise culture.
To achieve its goals, the study explores features of both cultural climate of
entrepreneurship and potential for enterprise among respondents from across
Finland. Past research has shown that the proliferation of an enterprising culture
in society requires that a positive entrepreneurial climate is accompanied by the
presence of a pool of individuals who possess proper entrepreneurial attitudes and
orientations and who are willing and able to make the sacrifices needed to acquire
personal wealth. The study has two research objectives which were chosen to
enable to shed light on both sides of this argument as regards their applicability
in the Finnish context.
Firstly, the thesis examines how members of adult population view and relate
to entrepreneurship as it unfolds in the country (Articles 1 & 2). This exploration
provides early evidence of an attitudinal and societal climate amongst Finnish
people towards entrepreneurial activity. This is done by combining the ideas of
entrepreneurship and linguistics. The study brings linguistically grounded
methods of analysis to the field of entrepreneurship research. At this early stage,
the aim is to get an overview of how people perceive and conceptualise
entrepreneurs and entrepreneurship in their verbal expressions. This is done by
inquiring what kind of metaphors, collocations and conceptual definitions a pool
of respondents use in defining entrepreneurs and entrepreneurship in their
everyday language use.
The second focus of the thesis is placed on exploring entrepreneurial
orientations and tendencies among entrepreneurs and the wider public (Articles
3 & 4). This is achieved by looking into two key constructs, risk-taking propensity
and innovativeness. This examination yields insights into enterprising potential
of the subjects. The dimensions are studied with cross-national samples of
entrepreneurs and members of general adult population. The analysis is related to
entrepreneurial motives, practices and contexts amongst the subjects to link the
cognitive propensities to their socio-cultural environment.
In Articles 1 and 2 a paradoxical outlook towards entrepreneurship emerged
among the Finns. Besides the frequent existence of metaphors, collocations and
entrepreneurial concepts conjuring up gloryfying images of entrepreneurs and
entrepreneurial activity, there were also a number of expressions with rather
negative and cynical undertones. The findings seemed to reflect an enduring
ambivalence towards entrepreneurship. Nevertheless, on the whole,
entrepreneurial climate in Finland appeared to be rather positive. Reflecting the
growing importance of entrepreneurship, the meanings of the term entrepreneur
and entrepreneurship seem to have shifted in the popular view from being
somewhat pejorative to being complementary.
Meanwhile, in Articles 3 and 4 it was found that the cognitive profiles of
Finnish owner-managers tended to be not so entrepreneurial as has often been
projected in public discussion in the Finnish political and societal arena. There was
also a great discrepancy between these findings and the entrepreneurial
perceptions and images found in Articles 1 and 2. In a comparison with US
entrepreneurs, the Finnish owner-managers were found to be less innovative and
rather risk-averse individuals who instead of pursuing profit and business growth
were oriented towards their personal goals and aimed at providing for the
economic well-being of their families. The US entrepreneurs were also more
conscious in their business planning than the Finns. Moreover, it was found that
the cognitive styles of problem-solving and decision-making among Finnish small
business owner-managers were clearly less innovative and developed than those
manifested by a range of their European and US counterparts.
In future, policies promoting small business development in Finland need to
pay more attention to the indigenous features of the national culture of enterprise.
Even though social climate in the country is gradually becoming more positive
towards aspects of entrepreneurship, the cultural and structural properties of the
society and economy do not yet allow for a widespread proliferation of individual
entrepreneurship.
Keywords: enterprise culture, entrepreneurial climate, metaphor, collocation,
cognitive psychology, enterprising tendencies, risk-taking, innovativeness
ACKNOWLEDGEMENTS
Just like an entrepreneur, a doctoral student needs to gain access to networks of
external resources in order to operate effectively. Over the past years, there have
been several individuals and organisations which have contributed towards my
thesis. Now is the time to acknowledge their efforts. First and foremost, I would
like to thank my instructor Professor Matti Koiranen for providing supervision
and guidance throughout the doctoral process. Rather than pushing his own ideas,
he has given me important hints which have helped to refine my own thoughts.
I would also like to express my gratitude to the School of Business and Economics
at the University of Jyviiskylii for facilitating this study. Moreover, I would
sincerely like to thank my research colleagues M.Sc. Mika Tuunanen and Dr. Aki
Kangasharju who have acted as co-authors in Articles 3 and 4 of the thesis
respectively. The hard work they have put in and the new ideas and collegial
support they have expanded are highly appreciated.
I am indebted to Professor Bjorn Bjerke of the University of Stockholm,
School of Business for acting as my external and public examiner. He has provided
insightful advice and constructive feedback throughout the reviewing process. I
am also most grateful to Professor Martin Lindell of the Hanken Swedish School
of Economics and Business Administration for acting as my other external
examiner. Professor Lindell has provided invaluable comments and helpful
suggestions for improving my thesis.
Further, this dissertation would not have been realized without the
numerous, anonymous reviewers of the four research articles which form the
second part of the work. The reviewers have provided professional advice which
has led the research towards new entrepreneurial signposts. The author is also
indebted to Professor Jo Ann Carland and Professor James W. Carland, both from
the University of Western Carolina, for their generousness in supplying the
original Carland Entrepreneurship Index for use in Article 3 of the thesis. In
addition, I am grateful to all the informants who took time from their busy
schedules to fill out my questionnaire. Finally, carrying out this research would
not have been possible without funding. I gratefully acknowledge the financial
support provided by Ellen ja Artturi Nyyssosen siiiitio, Hans Bang Stiftelsen, Jenny
ja Antti Wihurin rahasto, Jyviiskyliin Kauppalaisseuran Siiiitio, Jyviiskyliin
yliopisto, Liikesivistysrahasto, Marcus Wallenbergin liiketaloudellinen
tutkimussiiiitio, Suomen Kulttuurirahaston Keski-Suomen rahasto ja Teresia ja
Rafael Lonnstromin rahasto, and Yrjo Uiton siiiitio. To conclude, I would like to
express my gratitude to my parents and my life companion Pirjo for their solid
support.
Helsinki, December 2000
Kimmo Hyrsky
Author's Address Kimma Hyrsky
Erkki Melartinintie 7 C 33
FIN-00720 Helsinki
Finland
Phone: [phone]
E-mail: [email protected]
Supervisor Professor Matti Koiranen
School of Business and Economics
University of JyvaskyHi, Jyvaskyla, Finland
Reviewers Professor Bjorn Bjerke
School of Business
University of Stockholm, Sweden
Professor Martin Lindell
The Swedish School of Economics and Business
Administration
Hanken, Helsinki, Finland
Opponent Professor Bjorn Bjerke
School of Business
University of Stockholm, Sweden
CONTENTS
ABSTRACT
ACKNOWLEDGEMENTS
PART I: THE FRAMEWORK OF THE DISSERTATION
1 INTRODUCTION. .............................................................................................. 11
1.1 General background ................................................................................. 11
1.2 Research goals .......................................................................................... 13
2 RESEARCH DESIGN: OUTLINE AND SCOPE OF THE THESIS .............. 15
3 ENTREPRENEURIAL CONCEPTUALISATIONS ....................................... 19
3.1 Historical origins of definitions: The role of economics .................... 19
3.2 Multitude of contemporary approaches .............................................. 23
3.2.1 Psychological school. ................................................................. 24
3.2.2 Process view ................................................................................ 26
3.2.3 Sociological schooL.................................................................. 28
3.2.3.1 Social development modeL .................................... 29
3.2.3.2 Structural factors and situational events............... 30
3.2.4 Definitional malaise in entrepreneurship ............................. 31
3.2.5 Definitions adopted in the study............................................ 34
3.2.6 Synthesis: Three views on enterprise development ............. 35
4 IN SEARCH OF ENTERPRISE: RISK-TAKING AND
INNOVA TIVENESS ............................................................................................ 37
4.1 Entrepreneurial risk-taking .................................................................... 37
4.1.1 Defining risk-taking in small business .................................. 38
4.1.2 Risk-taking in entrepreneurial setting ................................... 38
4.1.3 Empirical evidence ................................................................... 39
4.1.4 Entrepreneurs as risk-managers ............................................. 40
4.1.5 Critique of risk behaviour studies .......................................... 41
4.2 Entrepreneurial innovation ................................................................... 42
4.2.1 Defining innovation and creativity in small business .......... 43
4.2.2 Entrepreneurs as innovators: Schumpeterian view............ 44
4.2.3 Past empirical findings ........................................................... 44
4.2.4 Criticism of innovation studies ............................................... 45
4.3 Risk-taking and innovativeness as indicators of enterprising
behaviour. ................................................................................................ 46
5 CULTURAL AND SOCIO-ECONOMIC CONTEXT OF
ENTREPRENEURSHIP ...................................................................................... 47
5.1 Theoretical starting-points for deciphering enterprise culture ...... 48
5.1.1 Defining culture ......................................................................... 48
5.1.2 Protestantism and entrepreneurship ...................................... 50