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FACTORS THAT AFFECT TECHNNOPRENEURSHIP: A META ANALYSIS

Conference Paper · December 2016

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Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
(ICGBEC 2016), 5-6 December 2016, Universiti Kuala Lumpur (UniKL) Kuala Lumpur, Malaysia.

FACTORS THAT AFFECT TECHNNOPRENEURSHIP: A META ANALYSIS

Montadzah Ambag Abdulgani1 Jonathan Mamangkiang Mohammad Serazul Islam3

International Islamic University Mantikayan2 Universiti Kuala Lumpur
Malaysia Cotabato City State Polytechnic [email protected]
[email protected] College, Philippines
[email protected]

Abstract
In the digital economy, technopreneurs play a crucial role in creating and promoting new
Information Communication Technologies (ICT) goods and services to the local and overseas
markets to fulfill the clients demand. However, there are still many newly established IT
technopreneurs that found themselves either failed right at the start-up or during the maturity of
the businesses. These could be due to either both the internal or external factors. The literature
review covers empirical studies on the factors affecting technopreneurship. For the review, meta-
analysis is employed for locating, selecting, assessing and combining information relevant to
factors underpinning technopreneurship. The study sheds light on the factors, issues and
challenges related to technopreneurship environment.
Keywords: Technopreneurship, Entrepreneurship, Technology, Industrial Establishment

Introduction
Technology is a magical word that has transformed the world today. Not only has it made
life easier, in fact much easier, it has also accelerated it. Most of the work is done simply in
minutes without much ado. Technology is nothing but the usage and knowledge of tools, crafts,
organizational methods and systems to solve certain problems or provide services. Various
literatures use the term “technology-based entrepreneurs”, “technical entrepreneurs”, “high
technology entrepreneurs” or even “high tech new ventures” to describe new business that
combine entrepreneurial skills and technology (Dahlstrand and Lindholm, 1999; Renko, Autio
and Tontti, 2002; Oakey, 2003; Kakati, 2003).
Definition of the Technopreneurs have been given by various experts in different
situations, the following are the major definition cited by the experts. A person who destroys the
existing economic order (creative destruction) by introducing new products and services by
creating new forms of organizations and by exploiting new raw materials (Schumpeter, 1934). A
person who undertakes risks by creating an enterprise or business that has the chance of profit (or
success). Technopreneurs distinguish themselves through their ability to accumulate and manage
knowledge, as well as their ability to mobilize resources to achieve a specified business or social
goal (Kuemmerle, 2002). The technopreneur is a bold, imaginative deviator from established
business methods and practices who constantly seeks the opportunity to commercialize new
products, technologies, processes, and arrangements (Baumol, 2002). The technopreneur
distinguishes logic from tradition, prejudice, common sense and integrating a variety of ideas
from diverse groups and disciplines (Cereijo, 2002). Technology-based entrepreneur is a process
Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
(ICGBEC 2016), 5-6 December 2016, Universiti Kuala Lumpur (UniKL) Kuala Lumpur, Malaysia.

and formation of a new business that involves technology and these technopreneurs use
technological innovations and translate such technology into successful products or services
(Jusoh & Halim, 2006).
By looking at the economic theory, entrepreneurial activity concerns with the
combination of factors of production such as land, labour, and capital to produce goods or
services and entrepreneurs are the agents who combine the other resources with a mission to
create a successful business venture. They are also the risk-bearer as the business venture has no
guarantee of profit (Jusoh & Halim, 2006). Entrepreneurship, like technology has added another
dimension to the human life. It is impossible to not notice that all forms of employment today
have arisen from some or other form of technopreneurial venture. Entrepreneurship and
technology both are products of the human genius and equally wonderful is the compound that is
formed by merging the two together for benefit of the society. There have been various forms of
entrepreneurship that have developed over the ages. From entrepreneurship for profitable
purposes to social entrepreneurship, the world is now welcoming technopreneurship.
This paper explores different factors that affect technopreneurship. First, we have
attempted to include major environmental conditions empirically studied or mentioned in the
existing literature. Second, we show different elements of each factors identified. Third, and
most importantly, we have attempted to summarize possible framework that captures the
richness of a technopreneurship environment and can be subjected to systematic research.

Technopreneurship Factors
We grouped the environmental conditions into fourteen factors: individual characteristics,
motivation, situational, exogenous, social, financial, non-financial, entrepreneurial and business
skills, cultural, pull, push, environmental, socio-economic conditions, government policies and
procedures. Table 1 presents the previous study, factors and elements that affect
technopreneurship environment.

Table 1
Factors that Affect Technopreneurship in the Literature

Study Factors Elements

(Lee & Wong, Individual Need for approval, the perceived instrumentality of wealth,
2004; Okorie et Characteristics the degree of community, the need for personal
al., 2014) Factor development, the need for independence, and the need for
escape led individuals toward new firm formation

(Lee & Wong, Motivation Attitudes, interests, values, and talents regarding
2004; Oakey, Factor entrepreneurship
2003) Business management skills, the amount of external
resources accessed level of personal control of running the
business
Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
(ICGBEC 2016), 5-6 December 2016, Universiti Kuala Lumpur (UniKL) Kuala Lumpur, Malaysia.

(Lee & Wong, Situational Time constraints, task difficulty, and the influence of other
2004) Factors people through social pressure

(Lee & Wong, Exogenous Lack of opportunities for employment

2004) Factors

(Abetti,1992) Social Factors Family and social support system, financing sources,
employees, customers, suppliers, cultural, political as well
as economic environment
Sources of technical expertise, availability of human
resources and a variety of financing sources

(Kazanjian, 1988; Financial Venture capital

Hiemstra et al., Factor Alternative sources of financing
2006; Selvarani Low-cost loans
& Venusamy, Willingness of financial institutions to finance small
2015) entrepreneurs
Credit guarantee program for start-up enterprises
Competition among financial institutions

(Jusoh & Halim, Non-Financial Counseling and support services

2006; Miller & Assistance Entrepreneurial networks
Garnsey, 2000) Factor Incubator facilities
Government procurement programs for small businesses
Government support for research and development
Tax incentives and exemptions
Local and international information networks
Modem transport and communication facilities

(Oakey, 2003; Entrepreneurial Technical management skills and business management

Miller & and Business skills
Garnsey, 2000; Skills Factor Capacity to identify opportunities and mobilize resources
De Jong & Technical and vocational education
Hartog, 2007; Business education
Fuad & Bohari, Entrepreneurial training programs
2013; Schaper & Technical and vocational training programs
Volery 2004) Availability of information
Psychological characteristics
Information and knowledge
Ability to analyze an opportunity
Quick and efficient judgments and decisions
Ability to find and develop simplifying strategies
Recognizing, evaluating and exploiting of opportunities
Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
(ICGBEC 2016), 5-6 December 2016, Universiti Kuala Lumpur (UniKL) Kuala Lumpur, Malaysia.

(Altinay & Cultural Quality of the firm’s management, Co-ethnic capital, Co-
Altinay, 2008; Factors ethnic labor, Co-ethnic information, Co-ethnic market
Metcalf et al., Religion, Language
1996; Levent et
al., 2003)

(Humbert & Pull Factor Autonomy and independence

Drew, 2010) Personal satisfaction and achievement
Dream of being an entrepreneur
Gap in the market
Looking for a challenge
Rejecting stereotypical feminine identities

(Humbert & Push Factor Dissatisfaction in the labor market, Need for greater
Drew, 2010) income, Redundancy, Unemployment, Last resort

(McKenzie, Environment Presence of experienced entrepreneurs

Ugbah & Factor Presence of skilled labor force
Smothers, 2007) Accessibility of suppliers
Accessibility of customers or new markets
High degree of competition among firms
Favorable government policies
Provision of training and support services, and supportive
infrastructure
Characteristics of people, their skills, experience, and
motivation

(Acs, 2006; Acs, Socioeconomic Public attitude toward entrepreneurship

Desai & Hessels, Conditions Presence of experienced entrepreneurs
2008) Factor Successful role models
Existence of persons with entrepreneurial characteristics
Recognition of exemplary entrepreneurial performance
Proportion of small firms in the population of firms
Diversity of economic activities
Extent of economic growth

(McKenzie, Government legal and institutional frameworks for efficient functioning

Ugbah & Policies and of private enterprises
Smothers, 2007; Procedures Local economy and legal-institutional
Friar & Meyer, Factor Restrictions on imports and exports
2003; Kolodko, Provision of bankruptcy laws
2000; Volery, Entry barriers
2007) Procedural requirements for registration and licensing
Number of institutions for entrepreneurs to report to
Rules and regulations governing entrepreneurial activities
Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
(ICGBEC 2016), 5-6 December 2016, Universiti Kuala Lumpur (UniKL) Kuala Lumpur, Malaysia.

Laws to protect proprietary rights

National economic tax policy to lure large
technology-intensive multinationals to build
manufacturing centers

Conclusion
The arguments developed in this paper suggest that similar relationships may exist
between factors and individual technopreneur, and that a match between specific requirements of
the technopreneurs and environmental factors would lead to greater likelihood of business start-
up and success. We identified and addressed some gaps in the literature on technopreneurial
environments; (i) lack of a framework to integrate the available literature on technopreneurial
environments; (ii) lack of explicit links between the needs of technopreneurs and the dimensions
of the environments; (iii) lack of guidelines to conduct empirical research on technopreneurial
environments; and (iv) lack of consideration of the needs of policy makers. A key notion of this
paper is that technopreneurship can grow if potential technopreneurs find opportunities in the
environment, if environmental conditions inspire technopreneurs to take advantage of these
opportunities, and if environmental conditions enhance technopreneurs' ability to start and
manage a business. The contribution of this paper is that it provides a comprehensive view of the
technopreneurial environments and guidelines for conducting future empirical research. The
common areas to be addressed by the public policy are: (i) increasing the opportunity for
technopreneurs and creating a general environment that fosters technopreneurship; (ii)
encouraging the establishment of institutions that support technopreneurs; and (iii) providing
financial and non-financial assistance once technopreneurs' likelihood to venture has been
enhanced. Further research should empirically test the identified factors.

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Paper Presented at the 1st International Conference on Global Business, Entrepreneurship and Creative Industry
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