Health Care Entrepreneurship in the Nashville Region: Societal Linkages, Change Dynamics, and Entrepreneurial Responses

By Carr, Jon C.; Topping, Sharon et al. | Journal of Applied Management and Entrepreneurship, January 2004 | Go to article overview

Health Care Entrepreneurship in the Nashville Region: Societal Linkages, Change Dynamics, and Entrepreneurial Responses


Carr, Jon C., Topping, Sharon, Woodard, Beth, Burcham, Michael, Journal of Applied Management and Entrepreneurship


Executive Summary

This research argues that societal demands and expectations have created transformational change in the health care industry, thus providing the environment for entrepreneurship to thrive. As a result, new and innovative organizational forms have flourished, particularly when embedded in communities of entrepreneurial activity where networks of experience, access, and social/work relationships exist. Using a qualitative interview approach supplemented with secondary data, this paper seeks to integrate theoretical insights gained from previous models of entrepreneurship and the use of the punctuated equilibrium paradigm for explaining environmental change and response in the US health care industry. The region of interest is the area known as the "health care business capital" of the United States - Nashville, Tennessee. Implications concerning the unique aspects of the US health care industry and the associated entrepreneurial response to revolutionary change in Nashville are presented and discussed.

Introduction

Research in entrepreneurship has often focused on the economic and technological consequences of entrepreneurial action and the related benefits to regional development (Bellandi 2001, Blundel 2002). However, the study of entrepreneurship should also capture those development activities that are more macro-related, to include societal impacts on entrepreneurial action within some regional or national domain. Societal impacts (be they cultural, governmental, or environmental in nature) can affect different industry groups in different ways, with a consequent impact on the entrepreneurial actions that individuals or organizations take in response to those impacts.

Accordingly, the purpose of this study is two-fold. First, this study seeks to describe the unique societal relationship between health care delivery as a societal institution in the US and the "business of health care" as a form of regional development. Because of the nature of the industry, health care policy is influenced significantly by the social issues of the day. In this study, we focus on the impact that changes in health care policy have had on the entrepreneurial activity and the evolution of new organizational forms or communities. Thus, it is a natural assumption that these changes would be reflected in the type and form of health care organizations that develop; that is, a co-evolution of organizations and environments occur (Baum & Singh, 1994).

secondly, using the punctuated equilibrium model of organizational evolution (Gersick, 1991; Tushman & Romanelli, 1985), this study seeks to describe how Nashville, Tennessee has responded to revolutionary change created by the societal and institutional forces that affect the US health care industry. The response has both economic and societal components, namely the creation of an entrepreneurial climate that has led to the Nashville region being named the "health care business capital of the US".

According to the Nashville Health Care Council (NHCC), Nashville today is home to over 220 health care companies and 130 professional service firms that support the health care industry (NHCC, 2003). Additionally, Nashville has attracted venture capital to support the entrepreneurial activity both locally and outside of the community. According to the NHCC website (2002), "[...] the $750 million in venture capital that was invested in Nashville health care companies between 1995 and 1997 accounts for 25% of all venture capital invested in health care service companies in the United States during that period". Nashville is home to companies in many segments of the for-profit health care industry, such as long-term care, home health, information technology, biotechnology, biomedicine, and clinical research.

Thus, this research seeks to explain how new organizations in a specific industry and in a specific region, namely the for-profit health care industry in the Nashville region, have resulted from societal 'shocks' that have occurred over the last several decades. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Health Care Entrepreneurship in the Nashville Region: Societal Linkages, Change Dynamics, and Entrepreneurial Responses
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.