A Proposal for a Standard With Innovation Management System

-order
CFA
Measurement model
Thanh Huynh, Daniel Aranda and Luis Molina-Fernández
Models χ 2 df p-value RMSEA NFI CFI GFI
Network structure 64.05 35 0.0020 0.068 0.94 0.97 0.93
Network governance 42.86 20 0.0021 0.080 0.91 0.95 0.94
Network content 43.23 20 0.0019 0.080 0.96 0.98 0.94
Original entrepreneurial
capability
Necessary supplemental
capability
86.87 54 0.003 0.058 0.90 0.96 0.93
35.29 27 0.013 0.041 0.93 0.98 0.96
Spin-off's performance 37.23 20 0.0109 0.069 0.94 0.97 0.95
The CFA of measurement model comprising of social network characteristic and entrepreneurial
capability measurements reveal a good fit (χ 2 =62.27, df=44, RMSEA=0.049; NFI=0.93; CFI=0.97;
GFI=0.95). All of indices satisfy the requirement of a good model fit. All parameter estimates are
statistically significant at the 0.5 level, and all variables load on one factor each. The measurement
model passes the test of convergent validity and achieves a certification of discriminant validity of
indicators (Figure 1). Thus, the endogenous latent variable, social network characteristics, is
interpreted by network structure, network governance, and network content variables. The original
entrepreneurial capability and necessary supplementary capability variables construct the
entrepreneurial capability endogenous latent variable.
Hypothesis test
The results from first-order CFA of the model revealed an acceptable fit (χ 2 =13.78, df=11,
RMSEA=0.037; NFI=0.97; CFI=0.99; GFI=0.98). The results from the second-order CFA of model
also reveal a good fit (χ 2 =14.91, df=12, RMSEA=0.037; NFI=0.96; CFI=0.99; GFI=0.98). The ratio chisquare/degrees
of freedom is below 2 (χ 2 /df = 1.24) indicated that the model is acceptable fit. All
parameter estimates are statistically significant at the 0.5 level, and all variables load on one factor
each. Thus, the model passes the test of convergent validity and achieves a certification of
discriminant validity of indicators. Eventually, the social networks of the members of founding teams
significantly and positively influence the entrepreneurial capabilities of the teams, and lead to affect
the spin-off's performances in the growth or development stages. This means that the hypotheses 1
and 2 of this research were supported. This result partially concur with the prior propose of Collins
and Clack (2003) and Hoang and Antoncic (2003) that social networks of founding teams affect the
firm's growths. The network factor indirectly influences the performance measure via the direct effect
on the entrepreneurial capability indicator (Figure 1). As prior mentions, the inventors prefer working
in the academic environment instead attending to the new firms. These inventors can keep their
relationships with the spin-offs via working in advisory boards. However, during the creation's
processes, the abilities of the founders were transferred and become the firm's capabilities.
4. Discussion and conclusion
Beyond the network approach, the social network characteristics of entrepreneurial teams in the
period of spin-off's foundation comprise of network structure, network governance, and network
content. The study indicated that network structure was compounded from network ties, density, and
centrality, and network governance includes reciprocity and reputation. The results supported the
hypotheses that entrepreneurial capabilities include originally entrepreneurial capabilities constructed
by entrepreneurial technology, organizational capability, and human capital, and necessarily
supplementary capabilities comprising entrepreneurial strategy and commercial capability. The results
also reinforced validity of firm's performance instruments, which comprise both financial and
operational performance factors.
Overall, results of the analysis suggest that the hypothesized structural model represent a good fit. It
supports the hypothesis that there is an existence of the relationships between entrepreneurial
capabilities and spin-off's performances. However, the results revealed that the social networks of
entrepreneurial teams in the period of spin-off's foundation dissociate with the performances of spinoffs
in the development stage. The results also depicted a direct linkage between social networks and
entrepreneurial capabilities of the founding teams. This showed an indirect influence of the social
network characteristics of the entrepreneurial teams on the spin-off's performance.
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