Approved Module Information for BSM980, 2014/5 Module Title/Name: Entrepreneurship & Innovation in Emerging Economies Module Code: BSM980 School: Aston Business School Module Type: Standard Module New Module? No Module Credits: 15 Module Management Information Module Leader Name Ute Stephan Email Address stephanu@aston.ac.uk Telephone Number 3183 Office SW916 Level Description: Masters Programmes in which available: MSc in Entrepreneurship and International Business. MSc in International Business. Dip/MSc in Strategy and International Business. Available to Exchange Students? Not Specified Module Learning Information Module Aims: The aim of this module is to provide students with an understanding of the processes on new business creation, investment, innovation and risk taking in emerging economies, from managerial as well as economic and policy perspectives. The importance of emerging market economies is steadily growing and illustrated by the fact that they are projected to account for half of the world GDP in 2013. The focus of this module is on entrepreneurial and innovative activities by both established businesses and new enterprises which contribute to the success of emerging economies. The topics to be covered will include: (a) the theoretical concepts for understanding entrepreneurship and innovation in emerging and developing economies (networks and social capital, resource based view, and institutional theories); (b) entrepreneurship at the bottom-of-the pyramid; (c) entrepreneurial strategies to overcome resources constraints and weak institutions; and (d) distinctive emerging economy innovation strategies including frugal or constraint-based innovation. The module will use examples and smaller case studies of emerging economy entrepreneurship throughout. Module Learning Outcomes: Students should develop: (a) the ability to apply relevant economic and management principles, concepts and tools to the analysis of issues faced by new businesses related to the emerging markets environment, and (b) an understanding of the implications of the emerging market environment for both business creation and innovation. By the end of this module, students should be able to: 1) assess the implications of the diverse economic institutional environment for new business creation and innovation in emerging markets; 2) assess, in broad terms, implications of economic policies, institutional change, as well as change in technology and in the global economic environment for the creation of new enterprises in the emerging market economies; 3) discuss, in broad terms, strategic options available to owners-managers of new businesses in an emerging market economies environment.
Indicative Module Content: Emerging economies are characterized by an increasing market orientation and an improvement in their institutional frameworks, access to technology and infrastructure. The success of many of these economies is such that they are rapidly becoming a major economic force in the world. Entrepreneurship plays a key role in driving the economic development of these economies. The module will investigate the sources and the characteristics of the entrepreneurial dynamism in these economies and their implications, both from managerial and economic perspectives. The geographic area we cover is diverse, including East Asia, Eastern Europe, and Latin America. Week 1 Entrepreneurship in developed economies and emerging markets This introduction session to the module will include a discussion of the basic concepts and issues around the notion of entrepreneurship and emerging economies. We will explore how assumptions from developed economies may need substantial alteration when examining emerging market economies. The session will also provide an overview of the module and the assignments. Week 2 Formal institutions and emerging market entrepreneurship Building on session 1, we will examine in more depth how institutional settings impact the nature of entrepreneurship. We will focus on formal institutions ranging from the rule of law to regulation and discuss institutional voids. Week 3 Informal institutions and emerging market entrepreneurship Building on the previous sessions we now turn our eye to informal institution such as cultural values, norms and social capital. We explore the role of diverse informal institutions for entrepreneurship and how they can help entrepreneurs to effectively deal with institutional voids. Week 4 Emerging market entrepreneurship from a resource perspective: Employing a resource-based view of the firm, we will examine how resources are a crucial part of successful entrepreneurial efforts in the emerging market economies and the strategies entrepreneurs? use to overcome resource constraints. Week 5 Emerging market entrepreneurship and access to finance We will discuss access to finance by new firms in emerging market economies, this includes the role of informal sources of finance, emerging stock markets and use of global financial markets by local companies as well as microfinance. Week 6 Innovation in emerging markets We discuss to what extent innovation models from developed economies may be transferable to emerging markets which typically lack the institutions to protect intellectual property rights. We examine drivers of innovation unique to emerging markets including resource constraints and poverty. The session Week 7 Base of the Pyramid Markets and Entrepreneurship We explore Base of the Pyramid (BOP) Markets in this session, which are particularly prevalent in emerging economies. We will explore BOPs as customers for emerging market entrepreneurs (?selling to the bottom billion?) as well as a source of entrepreneurship. We will also highlight business models particularly suited to create value in BOP markets. Week 8 Internationalization of the emerging market businesses and returnee entrepreneurship We will discuss how new business can benefit from?the flat world? of shrining distance and global markets. In particular, we will examine the internationalization efforts by new ventures from emerging economies. Here, we will integrate the resource-based views and institutional theory, to explain the internationalization of new ventures under varying conditions. We will also examine the role of returning migrants in emerging markets entrepreneurship, exploring the role of complementarity of resources, networks and personal development whilst abroad. Week 9 Module review International Dimensions: The lectures will use examples from a range of emerging market economies including those in South East Asia, Central and Eastern Europe, Latin America and Africa. Corporate Connections: The lectures will draw on examples and cases of reported in academic literature, and experiences of emerging markets in the aftermath of economic reforms and major policy changes. In addition, as part of their assessment, students would be expected to utilize firm, sector and/or country-wide data to characterize aspects of the economic business-environment in emerging markets. Ethical Approval: This module does not require any primary research and no ethical approval will be necessary. Students will only use publicly accessible databases. Links to Research: The module content draws on the lecturer?s past and present research including research on the impact of formal and informal institutions on entrepreneurs?? strategic decisions. For at least one of the assignments students will undertake independent research utilizing available country-level data from a range of sources to profile and?diagnose? how supportive of entrepreneurship the institutions in a particular emerging market economy are. Students can focus on an emerging market economy of their choice.
Module Delivery Methods of Delivery & Learning Hours (by each method): Method of Delivery Learning Hours Lecture: 27 hours Project: 48 hours Independent Study: 75 hours Total Learning Hours: 150 hours Learning & Teaching Rationale: The module will use a number of non-technical research papers. The lectures provide the analytical framework, and integrate the required reading into this framework. The lectures also draw on industry and country experiences, as appropriate. Each 3 hour session contains a mix of active in-class exercises, tutorial and actual lecturing, facilitating student contribution to the discussion in class throughout as well as making use of various kinds of group work. Assimilation of different viewpoints and critical analysis is encouraged throughout. Module Assessment Methods of Assessment & associated weighting (including approaches to formative assessment as well as summative): Assessment Type Category Duration/ Submission Date Common Modules/ Exempt from Anonymous Marking Details Assessment Weight Coursework Individual Assignment start week 5 No 50% Assignment 1: Entrepreneurship in NAME OF COUNTRY CHOSEN BY STUDENT Task Details/Description: Based on the theories and evidence covered in weeks 1 to 4 including the recommended readings as well as own independent deskresearch, students will profile one emerging market economy of their choice in terms of its supportiveness of entrepreneurship. Students should briefly provide a rationale for their choice of country and why it is considered an emerging economy. The major part of the essay should critically discuss the quality of the country?s institutions and economy in terms of features that enable or hinder entrepreneurship and innovation. This should include a characterization of the type and quality of entrepreneurship prevalent in the country. The assignment will be introduced in week 1 and a list of resources pointed out to aid the independent country-research component. (Attached as an appendix A1a to this document and posted for students on the module blackboard site.) Evaluation criteria include the quality of the critical discussion and use of theory covered in the module to do so as well as the quality and depth of the country-profile. Evaluation criteria will also be introduced in week 1. (Attached as appendix A1b to this document and posted for students on the module blackboard site.) Module Learning Outcomes Assessed: 1. the ability to apply relevant economic and management principles, concepts and tools to the analysis of issues faced by new businesses related to the emerging markets
Details environment, and 2. an understanding of the implications of the emerging market environment for both business creation and innovation. 3. assess the implications of the diverse economic institutional environment for new business creation and innovation in emerging markets; 4. assess, in broad terms, implications of economic policies, institutional change, as well as change in technology and in the global economic environment for the creation of new enterprises in the emerging market economies; Presentation Requirements: Word Count: Maximum 2000 words for essay (Please note that this is strictly maximum 2000 words, no more.) Font Size: 12 Line Spacing: 1.5 Submission Date & Time: Beginning of week 5 Assessment Weighting for the Module: 50% Percentage Assessment Criteria Evaluation criteria include the quality of the critical discussion and use of theory covered in the module to do so, as well as the quality and depth of the country-profile. For a high mark, students outline why they have chosen to focus on a specific country and elaborate in depth why this country can be considered to be an emerging economy. This implies going beyond discussing the country?s gross national income per capita or classification by supra-national institutions like the World Bank. For a high mark, students also go beyond reiterating facts and figures when characterizing the country?s institutions in terms of their supportiveness for entrepreneurship. Rather students would discuss the quality of institution in terms of strengths and weakness and explain how and why a certain institution is a strength/weakness and enables entrepreneurship in the country. Students would use theory discussed in class to make such argument. Furthermore, for a high mark students would also discuss potential contradictions or synergies in a country?s institutional framework and their consequences for entrepreneurship and innovation. They also touch on the different types of entrepreneurship (e.g. necessity, growthoriented) or innovation (e.g. frugal innovation, social innovation). Students should ensure that they consult further information on assignment criteria as posted on blackboard and attached as appendices (A1a and A1b) to this document. Ethical Requirements For assessments which require the collection of primary data: n/a Essential Reading for Coursework Task Readings as per module outline Coursework Individual Assignment week 10 No 50% Details Assignment 2: NAME OF VENTURE IDEA CHOSEN BY STUDENT Task Details/Description: In this assignment students will apply theory and evidence covered in the module and develop one venture idea. Students should describe their idea similar to a short version of a business plan directed at a potential investor. This includes making a case for the viability of the venture idea, spelling out the business model (i.e. logic of value creation and capture), customers, markets, financing and other resources, sustainability of the idea over the longer term (covering at least the first 3 years of trading) etc. Students are free in their choice of idea, i.e. these could take the form of business ventures, social ventures or business-cases for innovations to be introduced in the private, public or third sector. Consequently the potential investors at which the venture idea is targeted can take the form of venture capitalist, banks, government funds, impact investors or philanthropists to name a few. It is important that students spell out the target investor at the beginning of their essay. Students may also wish to build on their insights generated in assignment 1. Details of the assignment including which areas are expected to be explored to ensure that the venture idea is described in sufficient depth as well as detailed evaluation criteria can be found in Appendix 2. The assignment tests especially knowledge obtained in weeks 5 through 9. A successful assignment contains evidence of application of theory and evidence discussed in class. Module Learning Outcomes Assessed: 1. the ability to apply relevant economic and management principles, concepts and tools to the analysis of issues faced by new businesses related to the emerging markets environment, and 2. an understanding of the implications of the emerging market environment for both business creation and innovation. 3. an understanding in broad terms of the strategic options available to owners-managers of new businesses in an emerging market economies environment. Presentation Requirements: Word document Word Count: Maximum 2000 words for essay plus 200 words for selfreflection (see Appendix 2 for details). Font Size: 12 Line
Spacing: 1.5 Submission Date & Time: Week 10 Assessment Weighting for the Module: 50% Percentage Assessment Criteria Please see Appendix 2 for specification of the assessment criteria. Ethical Requirements For assessments which require the collection of primary data: n/a Essential Reading for Coursework Task (if in addition to reading provided in the module outline): Readings as per module outline Total: 100% Method of Submission: Both Hard Copy and Electronic Copy Assessment Rationale: The module contains two pieces of coursework assessment as outlined above. They each test different learning goals (as outlined above). Both assessments require students to apply knowledge obtained in class and through independent further reading. The first assessment is a type of country report diagnosing the entrepreneurship-supportiveness of that country's institutions as well as the level and type of entrepreneurship found in that country. Students will need to draw on theoretical frameworks in class to discuss the findings of their research. Thus this assignment is similar to a country-profile as compiled by international associations such as the World Bank. The second assignment is a business plan for an emerging market business and targeted at a potential investor. This assignment requires application of knowledge obtained through the first assignment as well as through the further teaching sessions to argue the case for the viability and novelty of the planned business. To account for student preferences both assignments allow students to choose a specific market economy. The second assignment also allows choice with regard to the type of business pursued (commercial or social, non-profit). Students can also present a case for an innovation in the context of an established business (corporate entrepreneurship idea). Feedback Rationale: The first assignment provides formative feedback. In addition, a range of feedback opportunities will be available to students including in-class feedback, through blackboard discussion group and at individual?s request (during office hours).