This dominant psychological-economic approach does not fully take into account how history and context shape the new ventures and marketcreating activities of entrepreneurs. It neglects to show how business partners of entrepreneurs take part in the founding process and fails to take into account the overall entrepreneurial dynamics within a sector, fi eld, or population. The fact that contextual, historical, and social factors also play a part in the emergence of new industries has been overlooked and their importance undervalued. The discipline that studies these related phenomena, sociology, and in particular its subdiscipline, organization theory, has largely ignored the creation of new organizations and the transformative behavior of entrepreneurs (Aldrich, 1999). The new sociological contribution defi nes entrepreneurship as a collective phenomenon that recognizes the actions and contributions of dynamic actors but simultaneously
acknowledges the substantive impact of the larger social network and institutional community in which these actors are embedded, constraining or facilitating their behavior. Besides the actions and strategies of individuals, entrepreneurship also depends on collective action whereby entrepreneurs draw upon local, regional, sectoral, and/or professional communities (Schoonhoven & Romanelli, 2009).