“Guanxi” is a term in Chinese referring to the reciprocal nature of interpersonal relationships. Its attributes, which are specific to Chinese culture, have been the focus of recent literature. Whereas the impact of guanxi seems to be quite similar to that of general relationships, ties or connections, it is characterized by a number of different dimensions. In this paper, we studied 44 entrepreneurial companies in the pharmaceutical industry in China to examine these attributes in greater detail. We use a system dynamics model to simulate the influence of various guanxi variables – the strength, scale and structure of guanxi – on the development of entrepreneurial companies.
The authors analyse the level of education and the attitude to education of immigrant entrepreneurs in relation to enterprise activity, the reasons for setting up businesses and the creation process. The main objective of this article is to discover the most important characteristics of immigrant entrepreneurs in the Valencian Community. In particular, it attempts to explain the influence of education on the setting up of businesses. To do so, 326 questionnaires have been analysed to undertake a study of the various immigrant communities in the Valencian Community that identify said factors. The hypothesis we put forward in this article is an attempt at relating the attitude to education of immigrant entrepreneurs, and its relation to business activity, the motivation for setting up businesses and the process for said business creation. As the most outstanding result, this article shows that the level of education of an entrepreneur is the factor on which the majority of business activity will depend. There is no factor of this personal dimension that relates to most aspects of motivation and business process. The study focuses on a particular geographical area. Consequently, the study helps to understand business activity by non-national entrepreneurs in a globalized economy and adds value to public policies for fostering business.
This paper re-evaluates the explanations for informal work in third world cities. Until now, informal work has been theorized either as a residue (modernisation), by-product of contemporary capitalism conducted out of economic necessity (structuralism) or an alternative to formal work chosen due to either an over-burdensome state (neo-liberalism) or for social, redistributive, resistance or identity reasons (post-structuralism). Reporting a study of 80 households in Koforidua in Ghana, this paper finds that although its depiction as a residue is not valid, the other representations of the informal economy are each valid in relation to different types of informal work and varying populations in this third world city, and that only by combining them will a finer-grained and more comprehensive understanding of the diverse nature of the informal economy be achieved. The outcome is a call for more nuanced explanations of the informal economy in other contexts.
The country institutional profile (CIP) construct has become the most widely used conceptualization of institutional environment for entrepreneurship. This construct is frequently employed to study institutional forces influencing entrepreneurial activity at the national level. However, relatively little is known about the cross-national equivalence of the construct. Moreover, the institutional environment for entrepreneurship in emerging economies remains largely under-explored. To address these issues, in the current study, we used the most frequently utilized CIP scale to collect data from 809 young adults in four rapidly emerging countries: Brazil, China, India, and South Korea. We examined the invariance of the CIP construct and unraveled differences in perceived institutional profiles among these rapidly emerging economies. Results support the CIP construct as largely invariant in the four REME countries and revealed important differences in specific aspects of institutional environments in these countries. Implications for future research and practice are discussed.
This paper focuses on the ethical frameworks of social enterprises, out of two basic organizational documents which are unveiling the corporate moral discourse (codes of ethics and values statements). Three types of well-known social entreprises have been chosen : (1) charitable clubs and associations ; (2) cooperatives and mutuals ; (3) conventional private sector foundations. The main contribution of the article is to present the basic connections between social enterprises’moral discourses and some philosophical schools of thought. The paper show how the moral discourse of social entreprises is more or less philosophically coherent. Rational coherence could be applied to values (axiological coherence), or to the philosophical grounds of the discourse (philosophical coherence). The ethical framework of social entreprises is conveying business concerns as well as socially-focused and philosophically-rooted concerns. It is both enhancing economic (business-focused) and non-economic (social) aims. The philosophical challenge of social entreprises is to build up sense of collective identity, without having an ambiguous moral discourse. The moral discourse of social entreprises should have an inner coherence : the various documents (such as the code of ethics and the values statement) should enhance the same set of values. Moreover, if social entrepreneurs are unable to provide a basic philosophical orientation to their corporate moral discourse, then they will not contribute to any social change, since their moral discourse will not be trusted by anyone who is carefully reading the main organizational sources of corporate moral discourse.
The purpose of this paper is to examine the impact of macro-institutional and macro-non-institutional factors on the new venture creation time across emerging as well as developed economies in Europe using panel data from 2003 to 2006 in 15 emerging and developed countries. This paper finds significant relationships between the venture start-up time and institutional factors that include lending interest rates, start-up procedures, and taxation and one non-institutional factor, GDP per capita. Additionally, we found differences in the factors between emerging and developed countries. Institutional factors, such as start-up procedures and trade opportunities, are important determinants of new venture creation time in emerging countries, consistent with the findings of recent studies. To encourage business formation, policy makers may need to revise policies concerning these factors which can facilitate or restrict new venture formation. Implications for further research and practice are discussed.
New ventures can simultaneously face survival challenges and benefit from distinct advantages based on their newness. Despite the importance of these issues, extant entrepreneurship studies, with limited exception, have often employed only rudimentary measures (e.g., venture age) to investigate important issues related to organizational newness. Accordingly, we develop and refine a scale to measure critical dimensions of newness that stakeholders perceive after NV start-up. We first discuss the theoretical background and previous research related to various newness dimensions. We then introduce a new construct, organizational energy, that heretofore has received scant attention in NV research. Next, we present results from an inductive study conducted to generate various dimensions of newness as well as two empirical investigations that further refine these dimensions into a reliable scale for measuring different newness dimensions. We conclude by discussing our empirical findings, the study’s limitations, and potential future research directions.
The purpose of this paper is to develop a mediational model of small business growth. It evaluates the links between human, social and financial capital of entrepreneurs, innovation and firm growth. Our goal through this model is to demonstrate that it is through the process of innovation these capitals are converted into growth. Based on an analysis of data from 228 Tunisian micro-enterprises, we concluded the mediation possibility of innovation on small business growth.
This study examines the proposition that the migration experience influences perceptions of risk and, as such, the ‘migrant condition’ is a factor in explaining relatively high rates of entrepreneurship among immigrants in many host countries. The study analyses data obtained from the Global Entrepreneurship Monitor (GEM) Spain 2009 Survey with regard to perceptions of risk in beginning a new venture. The study finds that immigrants to Spain, irrespective of their origin or ethnicity, are less likely than native Spaniards to perceive business creation as a risky situation. Moreover, the findings suggest that the perception of risk has a significant impact on the decision to engage in business start-up activity.
This study explores the relative influence of geographical and cognitive proximity to explain innovation performance. This paper deepens the controversy between the significance of both types of proximity, contributing to a better understand their interconnections. The study further analyzes to what extent knowledge acquisition provides a congruent explanation of the effectiveness of innovation in proximity contexts. The paper has tested a structural model based on a sample of 224 Spanish footwear firms. Footwear industry is a mature and traditional industry with a significant presence of the territorial agglomeration of firms all over Spain. Findings suggest both a direct and indirect effect of cognitive proximity on innovation performance. However, an excess of geographical proximity produces spatial lock-in, thus limiting the access to new knowledge and lowering innovations. By contrast, proximity in terms of goals and culture leads firms belonging to a territorial cluster to achieve knowledge acquisition resulting in relevant innovation. Findings suggest that although transferable valuable knowledge exists in clustered contexts firms should adopt a proactive behavior to have access common knowledge and in order to generate effective innovations.
Drawing on the resource-based view and contingency theory, this study investigates how technological and market turbulence influence the effect of firm innovativeness on business performance. Using a survey-based sample of 452 Taiwanese manufacturing firms in a broad range of industries, we employ a hierarchical moderated regression analysis to test two-way interaction hypotheses. The results show that technological turbulence enhances the positive effect of firm innovativeness on business performance but that market turbulence does not. The post hoc analysis indicates that when technological turbulence is high, firm innovativeness has a more positive effect on business performance. An additional sub-group analysis reveals that the positive moderating influence of market turbulence manifests only in the high-technology sub-sample. Our findings suggest that managers of manufacturing firms should nurture high levels of innovativeness to help their firms to thrive under high technological turbulence. This study contributes to the firm innovativeness literature by clarifying the boundary conditions under which firm innovativeness enhances business performance. Contrasting with previous research, our research demonstrates that the performance effect of firm innovativeness is not equally positive but instead increases with the level of technological turbulence. We shed new light on the crucial role of firm innovativeness in an environmental of high technological turbulence.
This paper interprets opportunity entrepreneurship, within the framework of Solow—Romer model and the characteristics of society’s entrepreneurship capital, as it is expressed by cultural background, transaction characteristics and economic institutions, using the principal components and regression analysis. It extends the concepts of growth theory to the entrepreneurial determination framework, based on the assumption that growth is generated by entrepreneurship. Τhe paper accomplishes to organize an integrated model of the actual opportunity entrepreneurship determination where the cultural variables play a predominant role. From the variables used to express entrepreneurial economy and its effects on the levels of opportunity entrepreneurship, only the variables expressing cultural background seem to have an effect, and more specifically a promoting one. It is established that for the configuration of opportunity entrepreneurship, the effect of cultural background is more serious than that of the Solow-Romer factors. Furthermore, the institutions and the transactions characteristics are purely endogenous formations.
In this paper we analyse the effect of ownership on the response of firms’ R&D expenditures to the business cycle, using a panel dataset of Spanish manufacturing firms for the period 1990–2006. Following Aghion et al. (2012, Journal of the European Economic Association), we allow the impact of the business cycle on firms’ R&D expenditures to depend upon credit constraints, but we extend their analysis by considering the moderating effect of different firms’ ownership types. We find that firms’ R&D spending is countercyclical but that credit constraints may reverse this counter cyclicality, in line with previous results in the literature. However, our findings indicate that these results are moderated by firms’ ownership. In particular, in the case of firms that are family owned and firms that are group affiliated, the responsiveness of R&D to the business cycle is considerably less dependent on being credit constrained, especially during recessions.
In the extant literature, research attention has been largely given to explore the issue of Chinese peasant entrepreneurship based on strategic entrepreneurial perspective. The current study examines the intention of Chinese peasant entrepreneurs based on entrepreneurial behavior perspective and hypothesizes that self-efficacy positively moderates the relationship between the need for power and entrepreneurial intention and the relationship between institutional environment and entrepreneurial intention. An analysis of a sample of 298 Chinese peasants proved most of the hypotheses. Results show that the need for power has a positive influence on the entrepreneurial intentions of the selected low-social-status population. Results also reveal the positive effect of the institutional environment perceived by individuals on entrepreneurial intention. The finding indicates that the government can enhance the entrepreneurial intention of rural individuals by updating entrepreneurial policies, by training and education in entrepreneurial activities that target the rural masses, and by promoting a successful entrepreneurial model. Moreover, positive moderation of self-efficacy on the relationship between the need for power and entrepreneurial intention is proven, which indicates that the effects of these two factors on entrepreneurial intention mutually reinforce each other. The finding also indicates that moderation of self-efficacy on the relationship between the institutional environment and entrepreneurial intention is negative that shows that self-efficacy and institutional environment can substitute for each other.
Despite much interest in the characteristics of entrepreneurs and their impact on venture performance or survival of start-ups, the relationship between such entrepreneur characteristics and successful venture exit has largely been unexplored. This paper explores the impact of the entrepreneur’s pre-entry industry experience, general education, and post-entry labor on entrepreneurial exit. We distinguish closing down of a venture from the termination of business because of a merger or acquisition (M&A). Examining the tracking data of the exiting U.S. start-ups launched in 2004, this study found that it was not the human capital but the labor of the entrepreneur that helped realize a successful entrepreneurial exit. The result suggests that although the entrepreneur’s human capital is known to affect his/her decision on exit strategies, the actual successful exit of a start-up is primarily due to hard-working characteristics of the entrepreneur.
This study probes into the effects of entrepreneurial resources on speed of entrepreneurial success and attempts to find if the entrepreneurship moderates the relationship. Accordingly, this study validates the hypothesis using the Cox regression model. Based on the empirical analytical result of 374 small and medium Chinese enterprises, for entrepreneurs with stronger entrepreneurship, the effect of their owned funds on speed of entrepreneurial success is more significant than those without entrepreneurship. In addition, for entrepreneurs with stronger entrepreneurship, the effect of network ties on speed of entrepreneurial success is superior to those without entrepreneurship.
During the last few decades the field of entrepreneurship has received increased scholarly attention all over the world. Nevertheless, against this internationalization background, little is known about how entrepreneurship research developed in different regions. In this study, we illustrate the development of entrepreneurship field not only in the USA and Europe but also in China. The study is based on co-citation analysis of entrepreneurship-related articles in the SSCI and Chinese Social Science Citation Index (CSSCI) databases. It appears that the development of entrepreneurship as a research field in China has followed a different path compared to the USA and Europe, where “contextual force” was the main driver in the early stage, but during the development process the external influence became weaker and that of “internal force” becomes stronger. In China, the main driver of entrepreneurship research is “internal force” while the “contextual force” has been downplayed. Similarities and differences in the development process across regions have also been identified.
The aim of this paper is to analyze the gender differences in entrepreneurial intentions by studying a range of socioeconomic and psychosocial factors. Furthermore, we aim at analyzing these differences in three groups of countries depending on the stage of economic development of each country according to the Global Competitiveness Report. Using a logistic regression analysis and data from the 2008 APS (Adult Population Survey) database which is part of the Project GEM (Global Entrepreneurship Monitor), results show the existence of gender differences in entrepreneurial intentions. The model proposed in the study has decreasing explanatory power as the degree of economic development increases, and is also more conclusive for men than women. An important methodological innovation we implemented in the current study is the use of the variable gender as a dependent variable rather than a variable of a socio demographic nature.
This paper advances our understanding of university-industry research and development (R&D) collaborations. These strategic relationships are a dimension of entrepreneurial activity, and they are thus important drivers of economic growth and development. Business collaboration with universities increases the efficiency and effectiveness of industrial investments. Previous studies have found that universities are more likely to collaborate with industry if the business is mature and large, is engaged in exploratory internal R&D, and there are not major intellectual property (IP) issues between both parties. Businesses gain from such collaborations through increased commercialisation probabilities and economies of technological scope. Based on publicly available data collected by the Science-to-Business Marketing Research Centre of Germany as part of a European Commission project, our paper focuses on two key questions. First, why are there cross-country differences in the extent to which universities collaborate with business in R&D? Second, are there covariates with these differences that might offer insight into policy prescriptions and policy levers for enhancing the extent to which such collaboration takes place? We find that access is positive and statistically significant in relation to fostering university-business R&D collaborations. Our results, albeit that they are tempered by a small sample of data, have implications how national innovation systems support further harmonization of IP regimes across universities and how universities prioritize their own investments and incentives.
How do home country institutions influence new ventures’ export strategy? As informed by the institution-based view, we argue that new ventures can use export to avoid the high costs of doing business in a home country with hostile institutions. Specifically, we argue that new ventures will export more when (1) their home countries have more government corruption problems, (2) managers have to spend more time with government officials for accessing public services, and (3) the proportion of ownership owned by foreign companies is high. Using a sample of 719 new ventures in 25 transition economies in Central and Eastern Europe (CEE), we find supportive results. We conclude that new ventures’ export strategy is tied to the costs of doing business in their home country institutions.
The current economic environment is getting progressively more competitive, demanding and challenging for most organizations. Organizations are currently witnessing a significant rise in globalization trends and revolutionary changes in technologies. This gives rise to several organizational complexities and in order to survive and be successful, organizations need to tackle them by constantly working on their products, services and business models to maintain a competitive advantage. This paper reviews some of the key literature in the intrapreneurial research field and discusses how intrapreneurship can be an effective solution for managing innovation progression in different organizations and thereby resolving a range of such complexities. Intrapreneurship as an organizational concept has evolved substantially over the years and this review highlights how several organizations have now adopted intrapreneurial initiatives to derive distinct benefits. An innovation culture attained through such intrapreneurial initiatives can lead to considerable organizational development in terms of firm performance, innovativeness, profitability and competitiveness. Top management leaders should therefore prioritize intrapreneurship while structuring their management strategies.
For entrepreneurs, decision making is present right from the start. The decision-making process in business has received extensive academic attention in recent decades. One of the first-order strategic decisions for an entrepreneur is where to locate the new business. The emergence of the multi-criteria decision analysis paradigm allowed several criteria to be considered when making a decision, which surpassed the previous single criterion decision paradigm. The Electre methodology pioneered this new paradigm and, among the evolutions of the Electre method, version IV is perhaps the least used. This paper aims to show a methodology to aid decision making for entrepreneurs, in particular the location decision. Thus, this study shows an example, an empirical application of Electre IV for locating a business, with the ultimate goal of providing companies with a ranking of alternatives to consider, such that it provides a competitive advantage if the choice agrees with the first positions of the final ranking.
This paper investigates factors associated to a higher likelihood of engaging in Intellectual Property Right (IPR) activities in the 103 Italian provinces for the period 1998–2007. We distinguish between patent and trademark activity and find that their determinants are to some extent different. Both patent and trademark activity are influenced by use of credit, presence of university graduates, and industrial districts. Hence, three types of capital matter for both types of IPR activity: financial, human, and network capital. Higher endowment of social capital only influences trademark activity. We do not find an impact of entrepreneurship capital. Patent activity appears to be influenced relatively more strongly by financial and network capital, and trademark activity relatively more strongly by human and social capital.
While there is a broadly held belief in the need for and inherent value of entrepreneurial action on the part of established organizations, much remains to be revealed about how corporate entrepreneurship (CE) is defined in organizational settings. Fortunately, knowledge accumulation on the topic has been occurring at a rapid rate and many of the elements essential to constructing a theoretically grounded understanding of CE can be readily identified from the extant literature. Corporate entrepreneurship may possess the critical components needed for the future productivity of global organizations. However, it is a far reaching concept that encompasses differing aspects and as research continues to increase in this field a stronger perspective of what constitutes corporate entrepreneurship needs to be examined. Our purpose in this article is to outline the various domains that currently exist in the research arena of corporate entrepreneurship. Exploring these domains and gaining a sharper focus on the corporate entrepreneurship process may be a most important step for scholars interested in moving the field forward.
In the last years, the business creation and management literature has paid increasing attention to the entrepreneurship that occurs within organizations. Most empirical studies show a positive relationship between corporate entrepreneurship and performance. The objective of this article is to identify which internal and external factors condition corporate entrepreneurship. The study uses two different theoretical perspectives: Resource-Based Theory (for internal factors) and Institutional Economics (for external or environmental factors). Both theories have been widely used in the strategic management and entrepreneurship literature, however, very few studies in the corporate entrepreneurship field are grounded on them together. The research applies negative binomial regression and uses data from the Global Entrepreneurship Monitor (GEM) for the period 2004–2008. Overall the sample has 339.071 observations and it provides information for 9 different European countries (Greece, Spain, Italy, Ireland, the Netherlands, France, the United Kingdom, Denmark and Finland). Results reinforce the importance of internal factors (knowledge, personal networks and being able to identify business opportunities) compared to external (having fear of failure, media impact and the number of procedures to create a company). Contributions of the study are both theoretical and practical. On the one hand, it contributes to the development of the literature in the corporate entrepreneurship field. On the other hand, it provides useful insights for those companies that are interested in entrepreneurship within the organizations.
Although conceptual models of the corporate entrepreneurship process are numerous, our current empirical knowledge regarding it remains fragmented, especially concerning the contributions of individual employees to corporate entrepreneurship. Thus, two important questions remain unanswered: How do employees from different managerial ranks of an organization contribute to the corporate entrepreneurship process, and how do these contributions change as the project unfolds over time? In the current research, we aim to answer these questions and offer an integrative framework for the corporate entrepreneurship process that would account for dynamic contributions of multiple actors through their activities and behaviors. We approach these questions in a specific context by studying three cases within a large company in a dispersed corporate setting.
International corporate entrepreneurship increasingly requires broader internal and external networks and legitimacy seeking in areas where the corporation and the entrepreneur are not well known. In this article, the important factors that influence the degree of legitimacy granted to corporate entrepreneurs are proposed and discussed. Specifically, we identify three primary levels of legitimacy: pragmatic legitimacy, normative legitimacy, and structural legitimacy. A model is proposed that suggests that organizations move through these levels of legitimacy resulting in differing brokering behaviors for network building. In addition, we integrate this effort into a global perspective by focusing on corporate entrepreneurs who seek to engage in international efforts. Implications for future research are provided.
This paper examines a specific, yet unexplored, dimension of human capital; namely, intrapreneurial experience. Intrapreneurial experience is defined as a human capital attribute of employees who have a leading role in the development and implementation of re-generation activities within an organization under a proactive, innovative, and risk-oriented focus. The effect of individuals’ intrapreneurial experiences on firm creation from an organization (i.e., corporate venturing) is tested by using data collected from different countries. Using a binomial logistic regression analysis and data from the 2011 Global Entrepreneurship Monitor (GEM), results show that intrapreneurial experience is positively associated with corporate venturing. Moreover, the effect on corporate venturing seems to be higher than that exerted by other human capital variables of employees.
The purpose of this comparative study is to investigate the role of gender and culture in entrepreneurial orientation (EO) among students in the selected nations. EO dimensions are important variables in the study of organizational performance. We adopted Lumpkin and Dess’ EO dimensions. We statistically analyzed the collected data from 389 university students in the US (96), Korea (114), Fiji (80), and Malaysia (99). The results showed significant differences in most EO dimensions between genders and among the nations. Thus, it is important that customized approaches based on gender and unique cultural context are needed for developing EO among college students.
Intrapreneurial employees and intrapreneurial projects are considered to be an important driver of innovation and strategic renewal within companies. While many studies addressed the top-down implementation of innovative projects, analyses of employee initiatives in promoting innovation within companies are scarce. This paper therefore takes a bottom-up approach and focuses on employee behaviour and how it can be stimulated towards intrapreneurship. We propose and test a two-step model where formal and informal work context affects employees’ intrapreneurial behaviour, which then provides the basis for bottom-up initiated intrapreneurial projects. Our empirical data consist of questionnaire responses of 176 employees in six Dutch companies. The results of structural equation model estimations indicate that formal organisational factors (horizontal participation, resource availability) affect employees’ intrapreneurial behaviour, but also highlight informal factors such as trust in the direct manager. We also find that innovativeness and personal initiative, but not risk taking, play a role for an effective translation of employees’ behaviour into intrapreneurial projects.
Entrepreneurship is viewed at either an individual level (self-employment), or a firm level (firms’ creation) phenomenon. We also observe the self-employed and firms that hire employees and grow, and others that do not. This paper theorizes occupational and firm-creation decisions and uses Spanish data on industry, region and time to compare entrepreneurial indicators based on official statistics of the number of self-employed individuals and of the number of firms, both with and without employees. The results show that there are important differences in the patterns of the determinants of growth rates in the self-employed and in firms and, within each of them, between those that hire employees and those that do not. We establish sound arguments to recommend the highest level of disaggregation possible in entrepreneurship studies.
The aim of this paper is to evaluate critically competing theoretical perspectives towards off-the-books entrepreneurship, namely the modernist perspective that depicts such endeavour as a leftover from a previous mode of accumulation, the romantic perspective that depicts it as a chosen alternative to the formal economy, the survivalist perspective that views it as a by-product of contemporary capitalism and survival practice for those marginalised from the circuits of the modern economy, and the social actor perspective that views off-the-books entrepreneurship as chosen for social, redistributive, political or identity reasons. To do this, a 2005/6 survey involving face-to-face interviews with 102 off-the-books entrepreneurs in Moscow is analysed. No single theorisation is found to be universally applicable to all Muscovite off-the-books entrepreneurs. Instead, all are found to be valid in relation to different populations of off-the-books entrepreneurs, and only by combining and using them all is it asserted to be feasible to achieve a finer-grained more nuanced explanation of the complex and heterogeneous character of off-the-books entrepreneurship.
A research need exists regarding the relationship between entrepreneurial team informational diversity and team performance, including the conditions under which such diversity might benefit performance. This study explores the moderating effect of shared leadership on the relationship between informational diversity and entrepreneurial team performance. Four dimensions are used to measure informational diversity: functional specialty, educational specialty, educational level, and managerial skills. The results show that functional specialty diversity can improve entrepreneurial team performance. Managerial skill diversity can improve entrepreneurial team performance when leadership is shared among team members. These findings advance the understanding of entrepreneurial team performance and provide practical implications regarding team structure.
A process model is developed in which entrepreneurs enlist stakeholders for their new ventures. According to stakeholder theory, this challenge should be insurmountable due to the extreme uncertainties regarding the ability of the new ventures to generate sufficient rents. The new model comprises two stages of contract formation: an attention contract and an investment contract. During the attention contract stage entrepreneurs gain attention by engaging in narrative sensegiving that reduces the perceived uncertainties of the new venture. By offering re-enactment of the resources controlled by the stakeholders, entrepreneurs are able to provide a credible story of future rents and therefore persuade stakeholders to support the new venture.
This research analyzes the influence of a global mindset on the internationalization behavior of Norwegian and Portuguese small firms. It specifically sets out to assess the role of global orientation of the entrepreneur and firm perspectives on the global market. Based on a sample of 354 small firms, we used structural equation modeling to conduct our analysis. The results show the differing importance of a range of factors in explaining global mindset in different contexts. The global mindset of Norwegian entrepreneurs conditions their behavior and international experience, while for Portuguese entrepreneurs it affects the cognitive domain and their technical expertise. Global mindset and global orientation have more relevant effects on the internationalization behavior of Norwegian firms than that of Portuguese firms.
This exploratory paper concerns Spanish biotechnology, a newcomer in the world of molecular biology and its applications. Our central research question is: how different or similar is the national system of Spanish biotechnology compared to those of other countries such as Canada, the United Kingdom or the United States? And how could it be overhauled to rejoin leading countries? The study is based on both public figures and a database built by the authors on Spanish dedicated biotechnology firms. The paper argues that Spanish biotechnology is growing under a fairly different system from the one that was established in the leading nations, the United States, the United Kingdom and Canada. In the Spanish system, venture capital and university spin-offs do not hold a major position, but government support and large private company groups of companies do. Spain may thus develop a latecomer version of the Continental European biotechnology adoption system. In the conclusion, we summarize the findings and implications of the study.
This study investigates the concept of HR Operational Autonomy, i.e., the freedom a franchisor offers to franchisees throughout the system with regards to their creation of HR practices. It is shown to have a significant positive moderating effect on the EO-performance link among UK franchise systems, explaining over 20 % of the variance in performance outcomes. Implications and future research directions are discussed.
Grounded in the knowledge-based view of the firm, this paper compares the performance outcomes from different modes of new venture entry. Data from new hotels entering the United Kingdom between 2006–2010 was used to explore how entry mode (i.e., franchised or independent) impacts post-entry firm performance. Controlling for market demand and market segments, this study found that affiliation with a franchise made it easier for new owners to ramp up revenues in the first six months if the service had a high level of operational complexity (e.g., full-service hotels). After this initial benefit period no significant performance benefit accrued to branded full-service hotels. In contrast, hotels that offered less complex services obtained higher levels of performance when relying on independent status vs. brand affiliation between six and twenty-four months after entry. Implications of the results are offered in the context of determining the value of explicit versus tacit knowledge obtained from external sources versus going it alone as an entrepreneur.
Using vector autoregression technique, we examine the interrelation between venture capital flows, economic development, capital market fund-raising activities, and capital market valuation, based on annual data of the United States over the past half-century. We find that venture capital commitments appear to be correlated with GDP and capital market valuation. While capital market fund-raising activities (Initial Public Offerings and Seasoned Equity Offerings) are also correlated with venture capital flows, these effects are subsumed by GDP, indicating that the overall economy drives both venture capital flows and capital market financing activities. Analyses from impulse response functions suggest that shocks to GDP have a permanent effect on venture capital flows, while the impact of capital market valuation (Standard & Poor 500 returns) on venture capital flows is rather short lived. Overall, both economy-wide development and financial market fluctuations seem to impact venture capital flows.
The purpose of this paper is to analyze the main socio-cultural factors that influence women entrepreneurship in Catalonia, using institutional economics as a theoretical framework. The empirical research employs logistic regression models (rare events logit), utilizing data obtained from the Global Entrepreneurship Monitor project (GEM). The main findings highlight that ‘fear of failure’ and ‘perceived capabilities’ are the most important socio-cultural factors on the probability of becoming a woman entrepreneur. The research contributes both theoretically, advancing knowledge of the socio-cultural factors that affect female entrepreneurship, and practically, helping in the development of educational programmes and support policies to promote entrepreneurial activity.
This work analyses the role of previous beliefs and attitudes on the intention to continue using online platforms. Although the literature has ignored the role of those variables in determining the continuance usage, this work makes use of the mediated relationships to verify its relevance. The conclusion is that, although previous attitudes do not have an impact on the continuance usage, the previous beliefs about the effort expectation, the perceived usefulness and trust do have an impact on the continuance intention to use an e-learning platform.
This paper reports the results of a study that examined the impact of a culture-based entrepreneurship study abroad program on student interest in business ownership. Ninety-six students were asked to complete a pre-and post-study abroad program questionnaire that asked about their understanding of a variety of program activities and to gauge their interest in starting a business. Little similar research has been reported in the literature. Pre- and post- program mean rankings of the variable are reported. The results indicated that post-program mean ranking of knowledge, understanding, and skill ability variables tend to be higher than pre-program mean rankings. Fifteen of the 22 post-program mean values of the measured variables are significantly different from pre-program mean values. Logit regression analysis indicated that the language and program structure variables were positively associated with interest in starting a business while the Spanish business and entrepreneurial skills were negatively associated with business ownership. The results of this study may be of interest to educators involved in developing entrepreneurship and study abroad courses and programs. The study may be of special interest to those involved in developing integrative entrepreneurship programs.
Under the uncertainty of external environment, how do the firms exploit resources, adjust organizational structures, and adopted proper strategies to gain the better performance is an important issue. Many theories have been proposed to explain this phenomenon. Structure-conduct-performance model suggest that industry structure influences the firm behavior and determines the performance of individual firms and of the industry as a whole. Strategy-structure-performance model suggest that strategy must dictate organizational structure, which in turn influences performance. The environmental perspective considers external environments. Resource-Based View suggests that management must focus on the values of resources to generate sustained competitive advantages and to improve performance. Dynamic adjustment among environment, strategy, structure, and resources can become primary causes of the firm performance. The purpose of this paper is to clarify the gaps between different theories and to complement the existing theories. This paper confirmed the measurement of the constructs first and competing models were used to examine dynamic adjustment among constructs and the relationships to firm performance. The results demonstrated that most of the relationships among constructs were supported and support the dynamic adjustment of the constructs. When facing uncertain environments, firms tend to use competition strategies as well as cooperation strategies; firms tend to formalize organizational structures and to amass resources. Firms which conduct cooperation strategies and possess more resources will attain better performance levels than those that do not. As to the theoretical models, the structure-conduct-performance model and the environmental perspective were supported. Practitioners should recognize the importance of the industrial and environmental factors.