IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v35y2011i1p185-215.html
   My bibliography  Save this article

Delineating the Domain of Development Entrepreneurship: A Market–Based Approach to Facilitating Inclusive Economic Growth

Author

Listed:
  • Jeffery S. McMullen

Abstract

Development economists and management scholars have called for a more market–based approach to address the extreme poverty suffered by the billion people residing primarily in least developed countries. This article proposes a theory of development entrepreneurship that blends business entrepreneurship, social entrepreneurship, and institutional entrepreneurship to accelerate the institutional change necessary to make economic growth more inclusive. After examining various explanations of market failure in the base of the pyramid and social entrepreneurship literatures, I explain why entrepreneurial transformation of formal institutions is needed and what differentiates development entrepreneurship from related concepts such as social entrepreneurship, social business entrepreneurship, and socio–political activism.

Suggested Citation

  • Jeffery S. McMullen, 2011. "Delineating the Domain of Development Entrepreneurship: A Market–Based Approach to Facilitating Inclusive Economic Growth," Entrepreneurship Theory and Practice, , vol. 35(1), pages 185-215, January.
    • Handle: RePEc:sae:entthe:v:35:y:2011:i:1:p:185-215
    DOI: 10.1111/j.1540-6520.2010.00428.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2010.00428.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2010.00428.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Justin W. Webb & Geoffrey M. Kistruck & R. Duane Ireland & David J. Ketchen Jr., 2010. "The Entrepreneurship Process in Base of the Pyramid Markets: The Case of Multinational Enterprise/Nongovernment Organization Alliances," Entrepreneurship Theory and Practice, , vol. 34(3), pages 555-581, May.
    2. Amin, Sajeda & Rai, Ashok S. & Topa, Giorgio, 2003. "Does microcredit reach the poor and vulnerable? Evidence from northern Bangladesh," Journal of Development Economics, Elsevier, vol. 70(1), pages 59-82, February.
    3. Dani Rodrik, 2006. "Institutions for High-Quality Growth: What They Are and How to Acquire Them," Chapters, in: Kartik Roy & Jörn Sideras (ed.), Institutions, Globalisation and Empowerment, chapter 2, Edward Elgar Publishing.
    4. David P. Baron, 2007. "Corporate Social Responsibility and Social Entrepreneurship," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(3), pages 683-717, September.
    5. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    6. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    7. Johanna Mair & Ignasi Marti, 2006. "Social Entrepreneurship Research: A Source of Explanation, Prediction, and Delight," Post-Print hal-02311880, HAL.
    8. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
    9. Garud, Raghu & Karnoe, Peter, 2003. "Bricolage versus breakthrough: distributed and embedded agency in technology entrepreneurship," Research Policy, Elsevier, vol. 32(2), pages 277-300, February.
    10. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
    11. Per Davidsson & Johan Wiklund, 2001. "Levels of Analysis in Entrepreneurship Research: Current Research Practice and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 25(4), pages 81-100, July.
    12. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    13. Dutz, Mark A. & Ordover, Janusz A. & Willig, Robert D., 2000. "Entrepreneurship, access policy and economic development: Lessons from industrial organization," European Economic Review, Elsevier, vol. 44(4-6), pages 739-747, May.
    14. Mair, Johanna & Marti, Ignasi, 2009. "Entrepreneurship in and around institutional voids: A case study from Bangladesh," Journal of Business Venturing, Elsevier, vol. 24(5), pages 419-435, September.
    15. Certo, S. Trevis & Miller, Toyah, 2008. "Social entrepreneurship: Key issues and concepts," Business Horizons, Elsevier, vol. 51(4), pages 267-271.
    16. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    17. Jeffery S. McMullen & D. Ray Bagby & Leslie E. Palich, 2008. "Economic Freedom and the Motivation to Engage in Entrepreneurial Action," Entrepreneurship Theory and Practice, , vol. 32(5), pages 875-895, September.
    18. Yosem Companys & Jeffery McMullen, 2007. "Strategic Entrepreneurs at Work: The Nature, Discovery, and Exploitation of Entrepreneurial Opportunities," Small Business Economics, Springer, vol. 28(4), pages 301-322, April.
    19. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    20. North, Douglass C, 1987. "Institutions, Transaction Costs and Economic Growth," Economic Inquiry, Western Economic Association International, vol. 25(3), pages 419-428, July.
    21. Julie Battilana & Bernard Leca & Eva Boxenbaum, 2009. "How actors change institutions : Towards a theory of institutional entrepreneurship," Post-Print hal-00576509, HAL.
    22. Douglass C. North & Robert Paul Thomas, 1970. "An Economic Theory of the Growth of the Western World," Economic History Review, Economic History Society, vol. 23(1), pages 1-17, April.
    23. Zahra, Shaker A. & Gedajlovic, Eric & Neubaum, Donald O. & Shulman, Joel M., 2009. "A typology of social entrepreneurs: Motives, search processes and ethical challenges," Journal of Business Venturing, Elsevier, vol. 24(5), pages 519-532, September.
    24. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, vol. 35(10), pages 1499-1508, December.
    25. Rainer Kattel & Jan A. Kregel & Erik S. Reinert, 2009. "The Relevance of Ragnar Nurkse and Classical Development Economics," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 21, TUT Ragnar Nurkse Department of Innovation and Governance.
    26. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
    27. Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-662, June.
    28. Weingast, Barry R., 1997. "The Political Foundations of Democracy and the Rule of the Law," American Political Science Review, Cambridge University Press, vol. 91(2), pages 245-263, June.
    29. Hayek, F. A., 1978. "Law, Legislation and Liberty, Volume 2," University of Chicago Press Economics Books, University of Chicago Press, number 9780226320830, April.
    30. Mukesh Sud & Craig VanSandt & Amanda Baugous, 2009. "Social Entrepreneurship: The Role of Institutions," Journal of Business Ethics, Springer, vol. 85(1), pages 201-216, February.
    31. Ted London & Stuart L Hart, 2004. "Reinventing strategies for emerging markets: beyond the transnational model," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(5), pages 350-370, September.
    32. Yadong Luo, 2001. "Determinants of Entry in an Emerging Economy: A Multilevel Approach," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 443-472, May.
    33. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    34. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
    35. Andrew L Zacharakis & Jeffery S McMullen & Dean A Shepherd, 2007. "Venture capitalists' decision policies across three countries: an institutional theory perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(5), pages 691-708, September.
    36. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
    37. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sahasranamam, Sreevas & Nandakumar, M.K., 2020. "Individual capital and social entrepreneurship: Role of formal institutions," Journal of Business Research, Elsevier, vol. 107(C), pages 104-117.
    2. João J. Ferreira & Cristina I. Fernandes & Marta Peres-Ortiz & Helena Alves, 2017. "Conceptualizing social entrepreneurship: perspectives from the literature," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(1), pages 73-93, March.
    3. Saul Estrin & Tomasz Mickiewicz & Ute Stephan, 2013. "Entrepreneurship, Social Capital, and Institutions: Social and Commercial Entrepreneurship across Nations," Entrepreneurship Theory and Practice, , vol. 37(3), pages 479-504, May.
    4. Jeffery S. McMullen & Katrina M. Brownell & Joel Adams, 2021. "What Makes an Entrepreneurship Study Entrepreneurial? Toward A Unified Theory of Entrepreneurial Agency," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1197-1238, September.
    5. Boettke, Peter J. & Coyne, Christopher J., 2009. "Context Matters: Institutions and Entrepreneurship," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 5(3), pages 135-209, March.
    6. Etayankara Muralidharan & Saurav Pathak, 2018. "Sustainability, Transformational Leadership, and Social Entrepreneurship," Sustainability, MDPI, vol. 10(2), pages 1-22, February.
    7. Elisabet Ferri & David Urbano, 2010. "Environmental Factors and Social Entrepreneurship," Working Papers 1003, Departament Empresa, Universitat Autònoma de Barcelona, revised Sep 2010.
    8. Xiangping Jia & Geoffrey Desa, 2020. "Social entrepreneurship and impact investment in rural–urban transformation: An orientation to systemic social innovation and symposium findings," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 37(4), pages 1217-1239, December.
    9. Klein, Peter G. & Mahoney, Joseph T. & McGahan, Anita M. & Pitelis, Christos N., 2009. "Toward a Theory of Public Entrepreneurship," Working Papers 09-0106, University of Illinois at Urbana-Champaign, College of Business.
    10. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.
    11. Etayankara Muralidharan & Saurav Pathak, 2019. "Consequences of Cultural Leadership Styles for Social Entrepreneurship: A Theoretical Framework," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    12. Estrin, Saul & Mickiewicz, Tomasz & Stephan, Ute, 2016. "Human capital in social and commercial entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(4), pages 449-467.
    13. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    14. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    15. Adélie Ranville & Marcos Barros, 2022. "Towards Normative Theories of Social Entrepreneurship. A Review of the Top Publications of the Field," Journal of Business Ethics, Springer, vol. 180(2), pages 407-438, October.
    16. Gupta, Parul & Chauhan, Sumedha & Paul, Justin & Jaiswal, M.P., 2020. "Social entrepreneurship research: A review and future research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 209-229.
    17. Amir Forouharfar & Seyed Aligholi Rowshan & Habibollah Salarzehi, 2018. "An epistemological critique of social entrepreneurship definitions," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-40, December.
    18. Mariana Voros Fregolente & Marly M. Carvalho, 2023. "Exploring BoP Generations through Business Model Innovation Lens: A Review and Framing," Sustainability, MDPI, vol. 15(17), pages 1-37, August.
    19. Pradeep Kumar Hota & Balaji Subramanian & Gopalakrishnan Narayanamurthy, 2020. "Mapping the Intellectual Structure of Social Entrepreneurship Research: A Citation/Co-citation Analysis," Journal of Business Ethics, Springer, vol. 166(1), pages 89-114, September.
    20. Steven A. Brieger & Anne Bäro & Giuseppe Criaco & Siri A. Terjesen, 2021. "Entrepreneurs’ age, institutions, and social value creation goals: A multi-country study," Small Business Economics, Springer, vol. 57(1), pages 425-453, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:35:y:2011:i:1:p:185-215. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.