Showing papers in "Entrepreneurship Theory and Practice in 2008"
TL;DR: In this article, the authors examined the direct effect of EO on firm performance and found that simply examining the direct EO effect on a firm's performance provably did not yield significant improvements.
Abstract: Entrepreneurial orientation (EO) is a key ingredient for firm success. Nonetheless, an important message from past findings is that simply examining the direct effect of EO on firm performance prov...
980 citations
TL;DR: A special issue on entrepreneurship in emerging economies examines the literature that exists to date in this important domain and reviews the research that was generated as part of this special issue as mentioned in this paper, concluding with a discussion of the critical future research needs in this area.
Abstract: Emerging economies are characterized by an increasing market orientation and an expanding economic foundation. The success of many of these economies is such that they are rapidly becoming major economic forces in the world. Entrepreneurship plays a key role in this economic development. Yet to date, little is known about entrepreneurship in emerging economies. This introductory article to the special issue on entrepreneurship in emerging economies examines the literature that exists to date in this important domain. It then reviews the research that was generated as part of this special issue on this topic. The article concludes with a discussion of the critical future research needs in this area.
872 citations
TL;DR: This paper reviewed the development of the family firm context and identified its dimensions and explored the nomological relationships of the construct based on a social capital theory perspective and offer a theory of familiness.
Abstract: In the search for ways in which the family firm context is unique to organizational science, the construct of “familiness” has been identified and defined as resources and capabilities that are unique to the family’s involvement and interactions in the business. While identification and isolation of a construct unique to family firms is both groundbreaking and important for family firm research, it is also important that the development of the construct continues to be examined from complementing theoretical viewpoints. As such, we set out to review the development of the familiness construct and identify its dimensions. We also explore the nomological relationships of the construct based on a social capital theory perspective and offer a theory of familiness.
764 citations
TL;DR: The internationalization of new ventures from emerging economies to developed economies remains an unfilled gap at the intersection of the literature between international entrepreneurship and stra... as discussed by the authors, and the internationalization remains an open question.
Abstract: The internationalization of new ventures from emerging economies to developed economies remains an unfilled gap at the intersection of the literature between international entrepreneurship and stra...
680 citations
TL;DR: In this paper, the authors analyze the relationship between entrepreneurial orientation and growth orientation in a sample of 434 SMEs and reveal the complexity of the relationships between EO, strategy, environment, resources and growth.
Abstract: The literature existing on entrepreneurship implicitly assumes that entrepreneurial orientation (EO) and growth orientation are positively related with each other. However, few studies, whether theoretical or empirical, analyze such relation in an explicit manner. Instead, most previous works have focused on the EO-performance relation, even though growth and profitability do not always correlate positively. This work has been carried out on a sample of 434 SMEs, and contributes two novelties with regard to previous research: (1) the analysis focuses on the EO-growth relation; and (2) it uses a flexible method (Partial Least Squares) which allows the study of several simultaneous relationships. The results reveal the complexity of the relationships between EO, strategy, environment, resources and growth.
567 citations
TL;DR: Using institutional theory, the Heritage Foundation/Wall Street Journal 2003 Index of Economic Freedom, and the 2002 Global Entrepreneurship Monitor, this paper regress opportunity-motivated entrepreneuria using a regression model.
Abstract: Using institutional theory, the Heritage Foundation/Wall Street Journal 2003 Index of Economic Freedom, and the 2002 Global Entrepreneurship Monitor, we regress opportunity–motivated entrepreneuria...
539 citations
TL;DR: The special issue of Entrepreneurship Theory and Practice on government policy and entrepreneurial activity as mentioned in this paper summarizes the contributions included in this volume and puts them in the context of the ongoing research debate.
Abstract: This paper serves as an introduction to the special issue of Entrepreneurship Theory and Practice on government policy and entrepreneurial activity. Entrepreneurship is an important engine of growth. Government policy, in turn, shapes the institutional environment in which entrepreneurial decisions are made. Thus, government policy is important for entrepreneurship. But what policies are more conducive to productive entrepreneurship? In spite of a significant amount of work on this and related topics, there is still much we do not know about this important relationship. After reviewing recent literature on entrepreneurship policy, this paper summarizes the contributions included in this volume and puts them in the context of the ongoing research debate. The goal of the special issue is to address important unanswered questions and trigger a constructive debate among diverging views.
484 citations
TL;DR: This article found a family firm's culture of commitment to the business is positively associated with its strategic flexibility, the ability to pursue new opportunities and respond to threats in the competitive environment, and stewardship-oriented organizational culture positively moderated the family commitment-strategic flexibility relationship.
Abstract: The ability of family firms to identify and respond to changes in their external environments can be a key source of competitive advantage leading to success and survival. Some research, however, has suggested family firms are conservative and often lack the ability to adapt to their changing competitive environments. Using data from 248 family firms, we found a family firm's culture of commitment to the business is positively associated with its strategic flexibility—the ability to pursue new opportunities and respond to threats in the competitive environment. Further, we found stewardship-oriented organizational culture positively moderated the family commitment-strategic flexibility relationship.
471 citations
TL;DR: In this article, the authors empirically validated an instrument for measuring country institutional profiles for the promotion of entrepreneurship in a sample of 254 business students from three emerging economies: Bulgaria, Hungary, and Latvia.
Abstract: In this article, we sought to empirically validate an instrument for measuring country institutional profiles for the promotion of entrepreneurship in a sample of 254 business students from three emerging economies: Bulgaria, Hungary, and Latvia. Results from the confirmatory factor analysis suggest high reliability, internal consistency, and construct validity of the instrument. Further, we find important differences in the three dimensions (regulatory, cognitive, and normative) of the institutional profiles across the three emerging economies, reflecting their idiosyncratic cultural norms and values, traditions, and institutional heritage in promoting entrepreneurship. Implications for future research, managerial practice, and public policy are discussed.
463 citations
TL;DR: In this article, the role of small business managers' growth motivation for business growth, taking into account the important effects of previous motives and feedback from earlier performance, is discussed. But the authors focus on sales and not the number of employees, and find support for their hypotheses when examining employment growth but only partial support when examining sales.
Abstract: This study addresses the role of small business managers’ growth motivation for business growth, taking into account the important effects of previous motives and feedback from earlier performance. We hypothesize that small business managers’ growth motivation has a unique influence on firm outcome measured as growth in sales and in number of employees. Data were gathered from two different Swedish samples of small firms using telephone interviews. Using cross-lagged regression analysis, we find support for our hypotheses when examining employment growth, but only partial support when examining sales.
398 citations
TL;DR: In this article, the critical role of entrepreneurial orientation (EO) in firm performance has been widely studied in the U.S. context, however, the examination of this key construct in emerging regions such as Chi...
Abstract: The critical role of entrepreneurial orientation (EO) in firm performance has been widely studied in the U.S. context. However, the examination of this key construct in emerging regions such as Chi...
TL;DR: This paper integrates insights from the family business literature with the work–family and identity boundary literatures to describe degrees of integration between the family and business identities in family firms and outline contingencies that influence this integration.
Abstract: In this paper we illustrate how boundary theory can be a useful perspective to understand the dynamics of family businesses. We integrate insights from the family business literature with the work–family and identity boundary literatures to describe degrees of integration between the family and business identities in family firms and outline contingencies that influence this integration. We also develop the notion of “differential permeability” as a state of being both integrated and segmented on various aspects of identity and articulate costs and benefits to this state, as well as to high integration and high segmentation. Finally, we invoke the research on “boundary work” as a means of managing family business boundaries and conclude by outlining additional avenues of research that stem from using such a boundary theory lens.
TL;DR: This article found that family influence affects resource management actions taken in response to threats of imitation, and that family-influenced firms are less rigid in their responses to such threats, reducing R&D and internationalization significantly less than firms without family influence.
Abstract: We integrate theory on the resource-based view and threat rigidity with family business research to explain the role family influence plays in responding to threats of imitation. As opposed to family control, we find that family influence affects resource management actions taken in response to threats of imitation. Specifically, results show that R&D investment and internationalization actions mediate the relationship between imitability and performance. However, we find that family-influenced firms are less rigid in their responses to such threats, reducing R&D and internationalization significantly less than firms without family influence.
TL;DR: This paper provided a further empirical examination into that relationshi... and showed that family business research appears to be caught in a "jungle" of competing theories in regards to familiness and performance.
Abstract: Family business research appears to be caught in a “jungle” of competing theories in regards to familiness and performance. This study provides a further empirical examination into that relationshi...
TL;DR: In this paper, the authors investigate the lack of consistency regarding the choice of organizational form by examining two possible explanations: a difference in motivational goals among social entrepreneurs or perceived ambiguity regarding trends in core dimensions of the institutional environment.
Abstract: Social entrepreneurship (SE) is emerging as a common approach to meeting social needs. However, SE founders appear to be organizing under both for-profit and nonprofit organizational forms to engage in essentially the same activities. We investigate this lack of consistency regarding the choice of organizational form by examining two possible explanations: a difference in motivational goals among social entrepreneurs or perceived ambiguity regarding trends in core dimensions of the institutional environment. Overall, we argue that founder perceptions of an ambiguous institutional environment are leading to the variance in choice of organizational form for SE ventures. Both theoretical and practical directions for future research are discussed as well.
TL;DR: In this paper, the influence exerted by affiliate directors in the diversification decisions of family-controlled publicly traded firms is examined, using a relational view based on the developmen view.
Abstract: The present study examines the influence exerted by affiliate directors in the diversification decisions of family–controlled, publicly traded firms. Using a relational view based on the developmen...
TL;DR: In this article, a detailed exploration of VCs' team evaluation criteria and the moderator variable of VC experience is presented. But the authors focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion.
Abstract: The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as “What strength does it take to compensate for a weakness in characteristic A?” Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data were obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models.
TL;DR: In this article, human capital and social capital measures were used to examine the science park location decisions of returnee entrepreneurs and the performance of the returnee businesses in a science park.
Abstract: Building on an asset complementarity perspective, human capital and social capital measures are used to examine the science park location decisions of returnee entrepreneurs and the performance of ...
TL;DR: In this article, network-based resource capital such as political capital, social capital, and reputational capital are critical in providing firms with special access to various resources and legitimacy in emergin...
Abstract: Network–based resource capital such as political capital, social capital, and reputational capital are critical in providing firms with special access to various resources and legitimacy in emergin...
TL;DR: In this paper, the authors examined the relationship among TMT heterogeneity and the capital raised by the firm through its initial public offering (IPO) and found that heterogeneity in the TMT's functional background and educational background is associated with greater capital raised through an IPO.
Abstract: A significant body of research exists on the top management teams (TMTs) of established firms and specifically on the heterogeneity of TMTs of established firms. Little research exists, however, on the heterogeneity of TMTs of firms in the early stages of their existence. In this study, I examine the relationship among TMT heterogeneity and the capital raised by the firm through its initial public offering (IPO). I argue that TMT heterogeneity provides a signal to potential investors about the quality of the IPO and hence is associated with greater capital accumulations. My findings suggest that heterogeneity in the TMT's functional background and educational background is associated with greater capital raised through an IPO.
TL;DR: In this article, the authors separate the act of entrepreneurship from its mode or organizing (internal vs. independent organization), and find that portfolio entrepreneurship is a common phenomenon and that the majority of portfolio entrepreneurs use the internal mode of organizing.
Abstract: With the purpose of advancing our understanding of portfolio entrepreneurship, we separate the act of entrepreneurship (new entry) from its mode or organizing (internal vs. independent organization). Analyzing a cohort of 2,253 novice and habitual business founders, we find that portfolio entrepreneurship is a common phenomenon and that the majority of portfolio entrepreneurs use the internal mode of organizing. Whether or not business founders subsequently pursue portfolio entrepreneurship is explained by their human capital (education and start-up experience) and social capital (business networks and links with government support agencies). Further, novice entrepreneurs are more likely to organize portfolio entrepreneurship within their existing firms while habitual entrepreneurs more often organize subsequent acts of portfolio entrepreneurship by creating another new independent organization. Implications for entrepreneurship research are discussed.
TL;DR: In this paper, the authors present a theoretical concept called the collaborative network orientation (CNO) and test it using a sample of male and female small business owners, finding that female owners had a stronger preference for a CNO.
Abstract: This study presents a theoretical concept called the collaborative network orientation (CNO) and tests it using a sample of male and female small business owners. The CNO is based on (1) research that indicates female managers prefer to organize in cooperative network relationships and (2) conflict theory that indicates collaboration is preferred for both building relationships and achieving goals. Empirical tests revealed that female owners had a stronger preference for a CNO. A CNO was associated with business success for all owners, but it was significantly more positively associated with success for male business owners.
TL;DR: In their article on entrepreneurship, effectuation, and over-trust, Goel and Karri suggest relationships between effectuation and overtrust, and certain psychological characteristics of entrepreneurs as mentioned in this paper.
Abstract: In their article on entrepreneurship, effectuation, and over–trust, Goel and Karri suggest relationships between effectuation, over–trust, and certain psychological characteristics of entrepreneurs...
TL;DR: In this paper, the authors extend research conducted primarily in mature economies on how managers react to enviro shocks in emerging country governments open their markets to outside influences, and show that environmental shocks can occur when emerging country government opens its markets to external influences.
Abstract: Environmental shocks can occur when emerging country governments open their markets to outside influences. We extend research conducted primarily in mature economies on how managers react to enviro...
TL;DR: The importance of grounding entrepreneurship research in its national context has been discussed in this paper, where different European researchers, all knowledgeable about the entrepreneurship research scene in their respective country, present the state of the research field for France, Germany, the United Kingdom (Blackburn & Smallbone, 2008); and Scandinavia.
Abstract: With this article, as introduction to a special issue on entrepreneurship research in Europe, we hope to initiate a discussion about the importance of grounding entrepreneurship research in its national context. Different European researchers, all knowledgeable about the entrepreneurship research scene in their respective country, present the state of the research field for France, Germany, the United Kingdom (Blackburn & Smallbone, 2008); and Scandinavia. Two articles from U.S. authors complement this issue, reviewing differences in how entrepreneurship scholars measure the phenomenon and assessing the European approach(es). This special issue sets out to demonstrate the value of variety in the field—variety that very much depends on the different national, methodological, and thematic contexts entrepreneurship research takes place in.
TL;DR: In this paper, the authors have generally suggested global solutions that typically focus solely on foreign direct inveses (FDI) for emerging economies face daunting economic development challenges, and they have generally proposed global solutions to these challenges.
Abstract: Emerging economies face daunting economic development challenges. Economists and management consultants have generally suggested global solutions that typically focus solely on foreign direct inves...
TL;DR: This paper examined the role of general and specific human capital in the decision policies of 114 Swedish loan officers in their as... using a human-capital perspective and the similarity-attraction paradigm.
Abstract: Using a human-capital perspective and the similarity-attraction paradigm, we examine the role of general and specific human capital in the decision policies of 114 Swedish loan officers in their as ...
TL;DR: In this article, the authors examined the legitimacy of foreign IPOs (initial public offerings) in the United States and found that firms from countries with governmental policies and institutional practices that protect the economic freedom of its citizens are significantly less underpriced than IPOs of firms originating from countries experiencing lower levels of economic freedom.
Abstract: Foreign firms from emergent economies are increasingly seeking equity capital in developed economies like the United States. Utilizing institutional, signaling, and agency theories this research examines the legitimacy of foreign IPOs (initial public offerings) in the United States. Employing the population of foreign IPOs listed on U.S. stock exchanges between 1997 and 2004, it is demonstrated that firms from countries with governmental policies and institutional practices that protect the economic freedom of its citizens are significantly less underpriced than IPOs of firms originating from countries experiencing lower levels of economic freedom. The evidence further indicates that firms from emerging economies can overcome negative country perceptions associated with lower levels of legitimacy by increasing their international scope of operations prior to beginning the IPO process as well as by retaining acceptable levels of ownership in their respective firms.
TL;DR: The authors argued that family businesses can develop identity confirmation as a unique, hard to imitate competitive resource that unleashes and leverages the relational capabilities that differentiate them from non-family businesses.
Abstract: This paper adopts a broad perspective on identity and identity relations and argues that family businesses can develop identity confirmation as a unique, hard to imitate competitive resource that unleashes and leverages the relational capabilities that differentiate them from nonfamily businesses. A person's identities are “confirmed” in a business, to the extent they are supported therein. Identity and identity confirmation research is marshaled to consider the impact of identity confirmation on succession. Implications for other relational challenges family businesses face are explored. The potential for family business research to contribute to a general theory of the firm is illustrated.