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Blockchain and Entrepreneurial Value Creation in the Textile Industry

Written by Ludvig Blomqvist

Paper category

Master Thesis

Subject

Business Administration>Supply Chain & Logistics

Year

2018

Abstract

Master Thesis: Entrepreneurship value creation theory Entrepreneurship value creation theory was proposed by Chandra S. Mishra, Professor of Entrepreneurship in the Management Program Department of Florida Atlantic University Business School and Ramona K. Zachary, Professor of Management in the Narenda Paul Loomba Management Department, and Baruch College, City University of New York, in their 2014 In the book "Entrepreneurship Theory: Creating and Maintaining Entrepreneurship Value" published in 1988. All references to entrepreneurial value creation theory and its components in this paper are from this book and other works by Mishra and Zachary. 2.2.1 Background and application of entrepreneurial theory, also known as and hereinafter referred to as the entrepreneurial value creation theory (hereinafter referred to as "EVC"), aims to fully explain entrepreneurial experience, and entrepreneurs begin to capture value through the process of entrepreneurship The intention is to be applied to the discovery of entrepreneurial opportunities and the development of entrepreneurial capabilities in order to ultimately provide appropriate entrepreneurial returns. EVC proposes certain terms, which are defined or exemplified below in the order in which they appear in the entrepreneurial value creation process, as described below. EVC includes and proposes the following sub-theories: entrepreneurial intention theory, entrepreneurial ability theory, and business model theory. EVCaims demonstrates and examines the detailed internals of the entrepreneurial value creation process ("EVCP") by defining and describing a two-stage value creation and funding framework. See Figure 2.2.1 The first stage of EVCP focuses on risk formulation, and the second stage focuses on risk monetization. The following is a further explanation. 2.2.2.1 The first stage-Entrepreneurship formulation EVCP begins with the discovery of entrepreneurial opportunities based on or triggering entrepreneurial intentions. Entrepreneurship intention is described as the desire for rewards, which may lead to the discovery of entrepreneurial opportunities or the effect of discovering entrepreneurial opportunities. Entrepreneurship opportunities are external stimuli and the basis for making venture capital. For example, entrepreneurial opportunities can be innovations or inventions discovered but not invented by entrepreneurs. Entrepreneurship value creation theory clearly distinguishes between what inventors invent and what entrepreneurs discover, for example. Other people’s inventions or innovations, and formulate venture capital to commercialize and monetize inventions. In the process of risk formulation, entrepreneurs may re-allocate entrepreneurial opportunities to complete sufficient entrepreneurial capabilities, thus entering the second stage of EVCP. 2.3.2 Dynamic capabilities and value creation Dynamic capabilities focus on creating value by creating and maintaining competitive advantages. This is the direct or indirect impact of dynamic capabilities. However, there are other potential results that can prove to be neutral or even negative, as illustrated in Figure 2.3.2 below. Figure 2.3.2 above shows how the creation of dynamic capabilities is affected by internal management behaviors and complementary organizational knowledge and resources, and how external factors create results in the form of continuous or temporary competitive advantage or neutral or even negative. Ambrosini & Bowman, 2009) The part of the discussion surrounding dynamic capabilities believes that dynamic capabilities should be evaluated based on their evolutionary adaptability, referring to their impact on revenue and/or profit, as well as technical adaptability, focusing on the quality of their capabilities. . (Ambrosini & Bowman, 2009) 2.3.3 Critical dynamic ability does not always lead to the improvement of company performance, and it may not produce expected effects or positive results. The reason may be the uncertainty of the impact of dynamic capabilities and the unknown situation of external factors. If t is changed, it is difficult to predict that o company's resources will generate valuable new resources, which is a necessary condition for being regarded as a dynamic capability. Dynamic capabilities revolve around the creation of future resources. The potential benefits can only be known after arrears. This may be sensitive to small and young companies. The company may need to focus on other actions to increase greater value, and it is always necessary Consider replacement costs. The concept of dynamic capabilities seems to involve circular reasoning, because valuable underlying processes may be valuable, but not dynamic capabilities. There are also some challenges in defining dynamic capabilities, because terms such as processes and resources can mean many different things, and the concepts are very broad and inaccurate. Rather than its impact and influence on practice. (Pisano, 2015) The field of dynamic capabilities seems to be mainly based on conceptual elaboration and less based on empirical research. This may be because the capabilities are not well specified, so it may be difficult for the observer to determine the focus. The field of dynamic capabilities seems to be mainly quantitative research, and quantitative research may prove to be less suitable for detailed analysis of complex processes and answering questions that begin with "how". (Ambrosini & Bowman, 2009) Read Less