Respected Readers please give your inputs to fine-tune it.
I intend to use world bank knowledge economy indices as independent variable to check the effect on new business and business established ( GEM variables) to check for the dominating factors out of 4 index factors.I have attached the model here.
Thanks.
Using IPA (integrative propositional analysis) the model would have a Complexity of 5 and (if the hypotheses prove correct) a Systemicity of 0.20. That is a level typical of theoretical models in the social/behavioral sciences. To improve those scores, and create a model that is more useful, you could identify more causal connections between the variables. See: http://sgo.sagepub.com/content/5/3/2158244015604190
In my personal view, external environment such as Political, economic,social, technology (u considered as innovation) and legal (PESTL) may also be required to justify the model in much appropriate manner.
Using IPA (integrative propositional analysis) the model would have a Complexity of 5 and (if the hypotheses prove correct) a Systemicity of 0.20. That is a level typical of theoretical models in the social/behavioral sciences. To improve those scores, and create a model that is more useful, you could identify more causal connections between the variables. See: http://sgo.sagepub.com/content/5/3/2158244015604190
@Mavendra Thanks for the input. As you said PESTEL or PEST should be incorporated there are 2 ways either, the PEST variable be used as control along with other control variables as I intend to compare the economies based on broad categorization of Factor/Economy/Innovation driven economies. The second way would be to use some of these as independent variables also.
@Sahazad Hanif This will be more like internal factors i.e. technological capabilities, finance, HR etc external factor i.e. PESTL and their impact on performance or success or u can use the porter five force model like structure with control variable i.e. age, education, family background etc
@Steven thanks for the input Sir. I have gone through the IPA method- its interesting. I would keep this point in focus also. Secondly Its also possible that some factors may not have a significant relationship so this will probably increase the systemicity. the 4 independent variables here are composite- made up of multiple underlying factors so perhaps would open them up also. I will also check for inter-relation of the independent variables to check for causality as you advised.
Thanks.
One of the important factors in determining entrepreneurial success which is missing from the World Bank model is culture, especially the way culture stimulates or not assuming risks. In cultures with a high value for the index of avoiding uncertainty (see Hofstede dimensions) it more difficult to have successful entrepreneurs than in cultures that encourage decision making in conditions of uncertainty. Risk taking is not only a problem of evaluation of business risks but also a problem of perception of risks.
In my view entrepreneurial success should be considered at the intersection of internal (i.e. personal) factor and external (i.e.environment) factors. If your model is focused only on external factors then what you can obtain is only a potential level of success, which means that some entrepreneurs may have success but others may have not, as a function of their personal driving forces.
@constantin Sir, Many thanks for the inputs. I am using GEM data and perception of risk factor is accounted for in it and I will include that variable. My idea is to use the variables of new & estab. business ownership together as a proxy to business sustainability element so again the point raised will be addressed.
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