Showing papers in "Journal of Small Business and Enterprise Development in 2021"

Entrepreneurial competencies, entrepreneurial orientation, entrepreneurial network, government business support and SMEs performance. The moderating role of the external environment

Abstract: The purpose of this study is to examine the moderating influence of the external environment on the relationship between entrepreneurial competencies, entrepreneurial orientation, entrepreneurial network, government business support and SMEs performance. The objectives of the study are achieved using the resource-based view and dynamic capability theory.,The survey method of research was used by personally administering questionnaires to the respondents. Multistage sampling techniques are used in selecting 470 SMEs owners/managers that participated in the survey. SPSS 24 and PLS-SEM 3.0 were used in the analysis of the data.,In the Nigerian context, the findings indicated that EC, EO and GBS directly influence the SMEs performance. Surprisingly, SMEs performance is not influenced by EN. Similarly, EE significantly moderated the relationship between EC, GBS and SMEs performance. On the contrary, EE does not have any moderating influence on the relationship between EO, EN and SMEs performance.,The study is limited to northeastern Nigeria. The study is limited to the EC, EO, EN GBS EE and SMEs performance and the use of cross-sectional data. The findings imply that SMEs owners/managers need a high level of entrepreneurial competencies and government business support to achieve a better performance especially in an external environment that is characterised by dynamism, diversity, complexity and hostility. Hence, providing support for both RBV and DCT.,Thus, the study offers additional empirical evidence from Nigeria and also expands knowledge and understanding in this field. The findings offer owners/managers, government agencies, financial institutions and other stakeholders of SMEs strategies EC, EO, GBS and EE to achieve a better SMEs performance.,The conceptual framework of the study is unique, and the study was conducted in northeastern Nigeria which is grossly underrepresented in the literature. It also provided understanding on the moderating influence of EE on the framework.

Entrepreneurial intentions among women: does entrepreneurial training and education matters? (Pre- and post-evaluation of psychological attributes and its effects on entrepreneurial intention)

Abstract: Researchers have been trying to identify different psychological attributes which influence entrepreneurial intention (EI) and role of entrepreneurial education and training programs to develop these attributes among women. Therefore, the purpose of this study is twofold: firstly, to evaluate the difference among psychological attributes before and after an entrepreneurial education and training program. Secondly, to examine the effects of psychological attributes on EI among female students in Saudi Arabia.,A detailed program was designed with the combination of entrepreneurial education and training program throughout a 14-week semester. Data were collected using a structured questionnaire from 310 female university students studying in a Saudi university and participated in this program. SPSS, version 20, was used to analyze the data.,Entrepreneurial education and training programs based on active learning and learner-centered approaches play an important role to significantly improve the level of psychological attributes and EI of female students. Furthermore, findings of this study also suggest that psychological attributes (training retention, self-confidence, tolerance of ambiguity, innovativeness and achievement motivation) positively influence EI.,Previous studies only focused on relationship testing among psychological attributes and EI. This research proposes strategies to design entrepreneurial education and training program to improve psychological attributes and EI which can be considered practical version of EntreComp conceptual model.

Social media and entrepreneurship: exploring the impact of social media use of start-ups on their entrepreneurial orientation and opportunities

Abstract: PurposeThe aim of this paper is to investigate how social media use (SMU) affects the entrepreneurial orientation (EO) and entrepreneurial opportunities (EOP) of start-ups.Design/methodology/approachThe hypothesis testing and analysis were conducted using the partial least squares approach to structural equation modeling (PLS-SEM).FindingsThe research shows that SMU has a strong positive impact on EOP, while it has no impact on start-ups' EO. Interestingly, the impact of SMU on EOP is stronger than the impact of EO on EOP.Originality/valueThe findings add new knowledge to the emerging research stream that focuses on SMU in the context of entrepreneurship and provides useful insights for both scholars and practitioners. In particular, the evidence suggests implications for stakeholders with regard to their firms' entrepreneurial activities. This research offers several possible avenues for future research.

SME managers' learning from crisis and effectual behaviour

Abstract: Purpose: The COVID-19 pandemic has entailed a critical situation for small- and medium-sized enterprises (SMEs) since restrictions on business activity have been imposed by authorities to reduce infections. The result is that SME managers must manage their firms through a crisis under very challenging conditions. The purpose of the present paper is to address how SME managers respond in the second “wave” of COVID-19 based on their perceived uncertainty as well as eventual learning from the first “wave” in early 2020. Design/methodology/approach: Four hypotheses are presented, resulting in a theoretical model relating crisis impact, uncertainty, learning from crisis experience and effectuation behaviour. The theoretical model is tested through an empirical questionnaire-based quantitative study of Norwegian SMEs in the bar and restaurant sector, applying structural equation modelling as the analytical technique. Findings: The results show that impact from COVID-19 leads to both uncertainty and learning and further that uncertainty primarily leads to a focus on affordable loss while learning leads to experimentation behaviour. Originality/value: The present paper is novel in several ways. First, it empirically studies a unique situation where a crisis encompasses two “waves” of significant impact on the firms in focus. This provides the opportunity to address managers' learning through a crisis for application in a very similar situation later. Second, the present paper provides an empirically supported model of how uncertainty or learning leads to different dimensions of effectuation behaviour in a crisis situation. © 2021, Emerald Publishing Limited.

Social support as a driver of social entrepreneurial intentions: the moderating roles of entrepreneurial education and proximity to the US small business administration

Abstract: The purpose of this paper is two-fold: to examine the relationship between social support and social entrepreneurial intentions and to test the moderating roles of entrepreneurial education and physical proximity to the office of the US Small Business Administration.,The study adopts a quantitative methodological approach. The hypotheses are tested on a sample of 1,245 respondents who intend to start a business in the state of Florida. Factor analysis and multiple regression analysis were used to identify the relationship between social support and social entrepreneurial intentions.,The hypotheses are supported by the results. The study found a positive and significant relation between social support and social entrepreneurial intentions. It also establishes the moderating effects of entrepreneurial education and proximity to office of the US Small Business Administration on the relationship between social support and social entrepreneurial intentions, i.e. our results show not only that higher levels of social support are associated with higher entrepreneurial intentions but that this association becomes stronger with entrepreneurial education and proximity to the office of the US Small Business Administration.,This is the first empirical study that highlights the role of entrepreneurial education and physical proximity to the US Small Business Administration in moderating the relations between social support and social entrepreneurial intentions. The study contributes to the understanding of factors that influence social entrepreneurial intentions.

Trusting in indigenous institutions: Exporting SMEs in Nigeria

Abstract: Purpose: The purpose of this article is to develop new insights into the interplay between trust, indigenous institutions and weak/dysfunctional formal institutions using the Nigerian context - a developing country in sub-Saharan Africa. It advances new understanding on how Nigerian entrepreneurs trust in their indigenous institutions such as family ties, kinship, chieftaincy, religion, cooperatives and trade associations to resolve disputes arising from their exporting activities as opposed to dormant formal institutions in their country. Design/Methodology/Approach: This exploratory study adopts an interpretive research paradigm and it utilises a case study strategy. Data collected through observations, archival records and qualitative conversations with 36 exporting Nigerian SMEs is analysed by utilising a combination of within and cross-case analysis techniques. Doing so enabled an in-depth study of the methods their owner managers use in order to take advantage of the relationships they established through their long-standing cultural institutions in the place of weak formal institutions in their country. Findings: Indigenous institutions have evolved to replace formalised institutions within the business environment in Nigeria. They have developed to become an alternative and trusted arbiter for solving SMEs' export issues because of weak/dysfunctional formal institutions in the Western African country. The owner managers of exporting SMEs perceive formal institutions as representing a fragmented system that does not benefit their export businesses. Practical Implications: The findings demonstrate that there is need for policy makers to consider the role of informal institutions in the Nigerian context. Such an approach is essential given the economic importance and increasing number of SMEs that trade and export their goods through informal structures in Nigeria. Originality: The study indicates that it is not just the void or absence of institutions that exist in a developing country such as Nigeria, but weak/dysfunctional formal institutions have been replaced by culturally embedded informal institutions. Thus, the study provide a new theoretical avenue depicting the concept of trusting in indigenous institutions.

Entrepreneurial intention of academic students in the time of COVID-19 pandemic

Abstract: Purpose: The purpose of this study was to investigate the consequences of the economic shock caused by the COVID-19 pandemic on the entrepreneurial intentions of academic students. In addition, this research examined whether the pandemic reinforces the tendency to operate new businesses or represents a barrier to the pursuit of entrepreneurial opportunities. Design/methodology/approach: This study was conducted with a sample of university students. Risk perception and contextual variables were measured. Information was collected from 308 university students enrolled at the University of Sfax (Tunisia) who participated by responding to a structured questionnaire distributed in electronic form by email. Findings: The results show that university students perceive higher levels of personal entrepreneurial risk than other types of entrepreneurial risks (financial risk and social risk). Perceived financial risk only has a significant effect on entrepreneurial intention for students who view the COVID-19 crisis as an opportunity. Regarding perceived contextual support, only perceived educational support has a significant and positive effect on entrepreneurial intention. Research limitations/implications: The results have important practical implications for identifying entrepreneurial intentions. They indicate that universities have an essential role in providing educational support for students by implementing awareness and training programs for entrepreneurship. Furthermore, they reveal the differentiated effect of the COVID-19 crisis on the risk perceptions of participants according to their views of the crisis as a threat or as an opportunity. Originality/value: This is one of few studies that have examined the impact of the COVID-19 pandemic (positive or negative) on the entrepreneurial intention of academic students. © 2021, Emerald Publishing Limited.

Twenty-five years of the Journal of Small Business and Enterprise Development: a bibliometric review

Abstract: Commensurate with the 25th anniversary of the Journal of Small Business and Enterprise Development (JSBED), this retrospective work distils trends across all original articles published in the journal during this time period.,Bibliometric analysis techniques are used to analyse 917 original JSBED publications. Specifically, performance analysis is conducted to analyse the journal's publication and citation patterns, bibliographic coupling and author keyword co-occurrence analysis are conducted to identify major themes, and co-authorship analysis is conducted to analyse author collaborations.,Results indicate JSBED has grown considerably since its inception, both in terms publication and citations. JSBED's most prevalent themes include management and growth of small firms, entrepreneurship education, strategy in small firms, business development, technology in small firms, business competencies in small firms, internationalization in small firms, role of social capital, entrepreneurial orientation and entrepreneurship in under-represented and minority populations.,This is the first comprehensive bibliometric analysis of JSBED in the journal's history. Accordingly, it presents a novel and heretofore disparate understanding of the key themes and dialogues emerging from an established journal with a growing reputation for scholarly and practitioner impact.

Capital structure determinants of small and medium-sized enterprises: evidence from Central and Eastern Europe

Abstract: The main aim of the paper is to examine the small and medium-sized enterprises’ (SMEs) capital structure determinants in Central and Eastern Europe (CEE) (Poland, Czechia, Slovakia, Hungary, Bulgaria and Romania).,The authors used panel models to analyze financial data of 15,253 companies operating in the years 2014–2017.,The authors confirmed the dominant role of firm-specific factors. Industry and country variables explain only 4% of debt variability of the surveyed companies. The direction of influence of the diagnosed firm-specific factors is consistent with the pecking order theory. About one-fourth of SMEs in CEE hold a stock of debt capacity. It negatively affects the share of debt in the capital. The authors did not confirm the influence of the systematic industry business risk.,The limitations of the study are (1) the inclusion of only six CEE countries in the sample; (2) the exclusion of microenterprises from the sample; (3) the capital structure relationships are observed following the applications of static panel; (4) the endogeneity issue has not been addressed in the model.,This study shows that business-friendly institutional environment is an important factor influencing the indebtedness of companies. It increases the leverage and, consequently, the return on equity, especially in CEE countries.,SME analyses in CEE countries are not as frequent as for other regions. Despite the classical determinants of the SMEs' capital structure, the authors have included debt capacity and systematic industry business risk in this study.

Operationally defining family SMEs: a critical review

Abstract: In this study, we investigated the dilemma of devising an operational family business definition in the SME context. The existing family business literature mostly agrees with the validity of a theoretical model called F-PEC, which identifies family businesses by evaluating three dimensions: power, experience, and culture. Nonetheless, empirical studies on family SMEs still use just one or a few elements with many different thresholds to operationally define family SMEs, highlighting an unsolved definitional divergence among scholars, which limits the possibility of investigating the potential effects of family attributes on firms’ goals, structures, processes, and performance.,Employing ancestry searching, online databases, and issue-by-issue searches from two decades (1990–2019), we analyzed 255 empirical studies that specified a family business’s operational definition (despite posing different research questions) and used a sample of small-sized and medium-sized enterprises (SMEs).,Results showed ownership and governance/management are the most used elements in the operational definitions provided in the literature to date, but that there still is not a universally adopted operational definition of family SMEs in use today.,This paper is one of the first to comprehensively analyze and review the operationalized use of family SME definitions in the literature.

Fintech, base of the pyramid entrepreneurs and social value creation

Abstract: PurposeFintech is having a profound impact in Sub-Saharan Africa (SSA) because it offers more financial inclusion. In this paper, the authors examine the interrelationship of Fintech, base of the pyramid (BOP) entrepreneurs and social value creation, particularly in the SSA context.Design/methodology/approachThe current paper uses a qualitative research design with open-ended, in-depth interviews as the main data sources. The authors interviewed respondents from the Sierra Leone Fintech Association and four BOP entrepreneurs operating in different sectors.FindingsThe authors find that Fintech services, specifically mobile money, play a significant role in reducing uncertainty surrounding business operations. FinTech also offers growth possibilities for BOP entrepreneurs and creates social value by providing transactional security, convenience and reducing physical cash robberies. At the same time, Fintech contributes to social value by enhancing BOP entrepreneurs as well as consumers' skills development.Research limitations/implicationsThis study highlights the importance of context-specific theorization when analyzing the interlinkage between BOP entrepreneurship, social value creation and Fintech. For example, the possibility of safety from a street robbery may not appear to be part of social value creation by a technological development like Fintech. However, in a country like Sierra Leone, which has experienced both a civil war and Ebola outbreak, insecurity has been one of the biggest concerns expressed by BOP inhabitants. Hence, scholars need to incorporate contextual elements of risk, uncertainty and volatility while theorizing on Fintech's application in BOP contexts.Practical implicationsA key managerial implication relates to micro-firm entrepreneurs and information specific benefits. Fintech offers entrepreneurs the possibility to be in regular contact with customers and evaluate their purchasing patterns as well as emergent needs. Fintech offers BOP entrepreneurs a possibility to further develop their technological skills as learning to use such apps can be used as a basis for further skills development. From a policy perspective, our study highlights the importance of regulating Fintech charges so that the affordability is increased, which is expected to result in significantly more BOP entrepreneurs using these services.Social implicationsThe authors find that at the same time, Fintech contributes to social value by enhancing skills development of BOP consumers who interact with case firms.Originality/valueThis paper is one of the first studies that specifically focuses on BOP entrepreneurship and social value creation by Fintech services in an SSA context. It is also one of the few studies that incorporates views from both entrepreneurs and the country's Fintech association, rather than focusing solely on either entrepreneurs or Fintech firms. Finally, there is a specific focus on BOP entrepreneurs engaging in micro-entrepreneurship.

The interactive effect of cultural values and government regulations on firms’ entrepreneurial orientation

Abstract: Purpose: Considering that the social-cultural context is important as in which the entrepreneurs are embedded to conceptualise entrepreneurial orientation (EO), the purpose of the study is to explicate the influence of the key decision-makers’ internalised cultural values and perceptions of government regulations, to offer nuanced explanations of micro-level variations in EO of firms embedded in the same institutional context. Design/methodology/approach: Using a quantitative approach, relationships are explored in a sample of 201 Malaysian small- and medium-sized enterprises (SMEs). Partial least squares structural equation modelling (PLS-SEM) is used for the sample, and an additional test is conducted for a robustness check. Findings: The study finds that three cultural values of the key decision-maker, namely individualism, masculinity and uncertainty avoidance, exhibit a significant association with the EO of the firms. Further, the analysis reveals that the positive effects of individualism and masculinity are enhanced when moderated by favourable perceptions of government regulations to entrepreneurship. Research limitations/implications: The study uses a single key informant in data collection, therefore, the possibility of single-respondent bias. The results must be interpreted in light of these limitations. Originality/value: The study contributes to the existing literature regarding the relationship between institutions and entrepreneurship. Specifically, it articulates a microfoundations lens to explain the influence of institutions in terms of key decision-makers’ internalised cultural values (informal institutions) and their perceptions of government regulations (formal institutions) on the EO of the firm. It further elucidates the need to embrace informal and formal institutions as interdependent factors instead of treating them as standalone constructs in entrepreneurship research and policy design.

Entrepreneurial value creation: conceptualizing an exchange-based view of entrepreneurship

Abstract: This paper proposes an Exchange-Based View of the value creation process. The Borrowing from marketing literature, the EBV advances that entrepreneurs and stakeholders are tied by exchange relationships, through which they co-create value by reciprocally making and realizing promises of value.,Propositions are developed and offered to advance the role of exchange in the entrepreneurial value creation process.,The authors conceptualize the enterprise as a system of exchange relationships between entrepreneurs and their stakeholders, thus proposing an exchange-based view of entrepreneurship.,Such an account of the role of entrepreneurs and of their relationship with the stakeholders has meaningful implications for our understanding of the entrepreneurial tasks of opportunity recognition and exploitation.

Assessing entrepreneurial ecosystems through a strategic value network approach: evidence from the San Francisco Area

Abstract: The purpose of this article is to develop a model to assess entrepreneurial ecosystems. Specifically, the authors examine how to measure value creation and value capture mechanisms from a single participant's perspective and at the ecosystem level through a strategic value network-based approach.,Building on extant research on strategic networks, value networks and business models and leveraging a qualitative survey, the authors develop and test an assessment tool to measure value creation and capture within the entrepreneurial ecosystem of the San Francisco Bay Area.,The authors show that value-based measures on entrepreneurial ecosystems provide a systemic approach to assess how ecosystems operate, which can guide policymakers, entrepreneurs and all the other stakeholders of entrepreneurial ecosystems in their strategic decision-making process.,The authors provide an original model grounded in the strategic management and entrepreneurship literature for entrepreneurial ecosystems' assessment as few studies have done before. Besides, the authors provide an illustrative attempt to show how to empirically apply the original model by assessing the San Francisco Bay Area's entrepreneurial ecosystem.

Family commitment and performance in private family firms: moderating effect of professionalization

Abstract: The purpose of this research is to examine the interplay between family commitment as a family-centric resource and professionalization of the organization as a firm-centric resource to determine how the two phenomenon come together to enhance business performance in the context of privately held family firms.,Deploying the theoretical lens offered by the resource-based view, a conceptual link is developed between family commitment to the firm and firm performance with the potential moderating influence of firm professionalization. The hypotheses are tested using data collected from 357 privately held medium-to-large family-owned manufacturing companies in Bangladesh. The data are analyzed through structural equation modeling using SmartPLS (v.3.2).,The data analysis suggests that in absence of the moderator; professionalization, family commitment has a positive and significant association with firm performance. While in the presence of the moderator the above relationship is substantially stronger. The findings indicate that when family-specific resources and firm-specific resources are synchronized, it enhances performance of the family firm and puts it on a strong economic footing toward a more sustainable future.,Cross-sectional nature of the study exposes it to the specter of common method bias despite the fact that procedural remedies were initiated to minimize the impact of such occurrence. Furthermore, data were collected from a single individual in each organization. Therefore, a longitudinal study with data obtained from multiple individuals at different levels of the organization would possibly yield more robust findings.,Leaders of family firms may find pertinent clues from the outcome of this study. Particularly, the confluence of family commitment to the firm as a family-specific resource and professionalization as a firm-specific resource can be valuable, rare, difficult to imitate and substitute source of competitive advantage for the family business organization.,Survival of family businesses is vital to the global economy as one of the primary drivers of global gross domestic product growth and source of new employment. Policymakers can benefit from the findings of this study to customize policies to nurture growth of family enterprises and incentivize family firms to adopt professionalization through better governance and transparent managerial procedures.,A nuanced understanding of how family commitment and firm professionalization combine to significantly improve performance of family firms has not been dominant in the literature. Therefore, findings of this study carry special theoretical implications, because it suggests that both family-specific features and firm-specific features are necessary for enhanced levels of firm-centric business outcomes such as economic performance.

COVID-19 and necessity-based online entrepreneurship education at US community colleges

Abstract: Purpose: This paper explores community college entrepreneurship education's near-instantaneous transition to online course delivery following the 2020 COVID-19 pandemic. Design/methodology/approach: Primary data were obtained from 92 community college entrepreneurship faculty via online survey in late March of 2020, right at the time faculty were required to transition their courses to an online mode of delivery due to the COVID-19 pandemic. Data were collected in partnership with the National Association for Community College Entrepreneurship and the Entrepreneurship Education Project. Findings: While the majority of community college entrepreneurship educators have taught online previously, many were not familiar with exemplar education technology tools and applications, demonstrating an opportunity for continued professional development. To deliver courses online, educators primarily relied on pre-recorded lectures and using Zoom as the technology platform of choice. Last, there were significant faculty concerns about their ability to effectively create an “experiential” classroom virtually for students to learn and practice entrepreneurship. Originality/value: This is the first paper investigating how community college entrepreneurship educators responded to one of the most disruptive events to ever impact entrepreneurship education (viz. the COVID-19 pandemic). More broadly, this is also one of very few studies exploring both (1) community college entrepreneurship education and (2) how unexpected crises (e.g. natural disasters, pandemics) impact educational environments. © 2021, Emerald Publishing Limited.

Organizational structure and convergent change: explanatory factors in SMEs

Abstract: By integrating the structural contingency and the organizational adaptation theories, this study analyzes the impact of the main variables of organizational structure on convergent change. The authors also examine whether some contingency variables, such as the firm's size, age and sector, may help to explain differences in the relationship between organizational structure and convergent change.,This work was carried out through an explanatory and cross-sectional study. The hypotheses were tested through a multiple regression analysis.,This paper demonstrates that, in Bogota's SMEs, modifications in differentiation and formalization explain convergent change, and that centralization does not affect it. Furthermore, the authors find that the company's size explains these relationships, and that age and sector do not influence them.,The authors provide useful information in this work to guide managers and professionals on the implications of organizational structure and convergent change, more specifically on decisions regarding hierarchical arrangement, job division and processes redefinition.,This work provides empirical evidence with original data for a better understanding of the reality of Colombian SMEs in the Latin American context.

Leveraging Internet capabilities for international business relationships: a comparison between Australian, Chilean and Taiwanese exporting SMEs

Abstract: Purpose: The purpose of this study is to investigate how Internet capabilities influence international business relationships using the resource-based view and capabilities perspective. Many studies highlight the importance of the Internet in helping smaller firms internationalize. However, few studies actually test how this is happening. The central purpose of this research was to examine and test the impact of Internet capabilities on international information availability, international strategic orientation and international business relationships in a sample of small and medium-sized enterprises (SMEs) in Australia, Chile and Taiwan. Design/methodology/approach: The study uses a structural equation modeling process so as to test the Internet capabilities on international business networks. The empirical research is based on an analysis of a sample of internationalizing SMEs in three export-intensive markets in Australia (215), Chile (204) and Taiwan (130) to test a conceptual model. Findings: The results demonstrate that Internet capabilities have a distinct effect on the development of international business relationships for SMEs in the three countries. That is, Internet capabilities have a positive impact on a firm's international business relationships, but this varies across Australian and Taiwanese and Chilean SMEs. Originality/value: These studies give empirical validation on the way in which smaller firms are using Internet capabilities for leveraging networks in internationalization and how this varies across countries. The results demonstrate that Internet capabilities have a distinct and positive impact on the development of international business relationships for SMEs in the three countries. However, there are specific differences between countries in how the Internet is being leveraged for the development of international business networks. Something currently not highlighted in the body of knowledge.

Family Influence and Firm Performance: The Mediating Role of Stewardship

Abstract: This study examines how stewardship might mediate the influence of family ownership on firm financial performance. The authors argue that differences in financial performance may reflect not only the family's influence but also the prevalence of a stewardship-oriented culture, across varying degrees of family influence.,The measure of family influence uses the F-PEC scale: family [F], power [P], experience [E] and culture [C]. It supports cross-firm comparisons of different levels of family influence. To capture the multidimensional nature of family influence, this study uses structural equation modelling and measures the meditating effects of stewardship.,The results reveal a mediating effect of stewardship; family firms achieve better performance when they take advantage of and encourage stewardship attitudes among owners and leaders. Factors associated with stewardship behaviour, including stewardship motivation and stewardship culture, help explain why some family firms perform better than others.,When analysing the behaviour of family firms, interested entrepreneurs, managers and consultants should acknowledge that the family's influence entails both financial and emotional capital. The survival of the family businesses depends on balancing these aspects.,In response to calls for research into mediators of the complex relationship between family influence and firm outcomes, this study provides a novel explanation for performance-maximizing behaviours by organizations, in which pro-organizational attitudes coexist with self-serving motives.

The imitation game: building cultural intelligence as a social learning capability to boost SMEs' international performance

Abstract: Drawing on the upper echelons theory and resource-based view, the purpose of this paper is to investigate how SMEs' decision-makers can develop cultural intelligence to improve firms' adaptive capability and performance in foreign markets. The study addresses this need by using social cognitive theory as an appropriate tool to measure cultural intelligence development.,Using a sample of 244 Italian SMEs, data were collected through an online survey and analyzed with structural equation modeling techniques.,The results show that decision-makers of resource-constrained SMEs can rely on modeled behaviors to inform their decisions when dealing with diverse cultural contexts. The findings also reveal that the development of cultural intelligence can foster adaptive strategies and support SMEs in achieving superior performance outcomes in international markets.,Other variables can be taken into account to expand the model and recognize new determinants able to affect the link between the constructs. Other learning theories could provide additional interpretations of cultural intelligence development.,Social cognitive processes nurture cultural intelligence in helping SMEs' owner-managers become more flexible and adaptive in responding to the requests of local settings. When facing the uncertainties of foreign markets, decision-makers can effectively make inferences from the observation of successful modeled behaviors. This helps owner-managers better coordinate, recombine and allocate resources to address the needs of diverse cultural markets.,This study demonstrates that social cognitive theory is a relevant tool to measure cultural intelligence development in small business settings.

Asymmetric effects of alliance intensity on absorptive capacity: the differences between potential and realized capacities

Abstract: Prior research suggests that organizational alliances' contribution to innovation performance is conditional to absorptive capacity (AC). Instead of an antecedent of alliances, in this study, the authors conceptualize and evaluate AC as an outcome of alliance intensity.,The authors tested their theoretical framework using multivariate statistical analysis on data collected from a survey applied to dedicated biotechnology firms (DBFs) from three countries: Brazil, Portugal and Spain.,First, the results show that whereas the high alliance intensity effect is positive and stronger on RAC, it is negative and weaker on PAC. Second, the alliance intensity effect on RAC is strengthened when firms have alliances only in their home country and the top manager does not have both academic and managerial experiences.,The authors’ study suggests as implications for DBFs: (1) firms should form alliances to develop AC, (2) firms should consider alliances for improving AC when top managers' expertise is not diverse, and (3) firms should consider only alliances with national partners as a differential for AC development.,This research contributes to the literature of dynamic capabilities, AC, alliances and innovation management by providing empirical validation for key contingencies surrounding the benefits of alliances as an antecedent of AC.

Antecedents of business location decisions: the case of aspiring immigrant opportunity entrepreneurs

Abstract: PurposeThe purpose of this paper is to investigate aspiring immigrant opportunity (AIO) entrepreneurs' start-up location decisions.Design/methodology/approachThe authors used conjoint analysis to explore 1,264 location decisions nested within 79 highly educated, first-generation AIO entrepreneurs.FindingsThe authors found that although government support positively influences business location decisions, network support decreases the perceived benefits of government support for AIO entrepreneurs. Furthermore, locations with high costs of doing business are unattractive to AIO entrepreneurs, but financial capital access through ethnic and nonethnic sources in these locations enhances the appeal of high-cost locations.Research limitations/implicationsThe generalizability of the findings to AIO entrepreneurs should be considered with caution. Future research should longitudinally examine immigrant opportunity entrepreneurs' location decisions and their implications for their start-up and community-level performance outcomes. The authors also encourage replication of the study.Practical implicationsThe findings of this study have implications for AIO entrepreneurs who intend to make start-up location decisions. Also, government policymakers can use the findings of this study to better attract AIO entrepreneurs to different locations.Originality/valueBy integrating ethnic enclave theory and location theory, this research contributes to theory and practice about immigrant opportunity entrepreneurs' start-up location decisions which are currently underexplored in the immigrant entrepreneurship literature.

Internationalisation of developing economy small and medium-sized enterprises: social capital and learning in Palestinian pharmaceutical firms

Abstract: The paper examines the role of learning through social capital on the internationalisation process of small and medium-sized enterprises (SMEs) based within extreme contexts. The study focuses on the Palestinian pharmaceutical industry.,The inductive, exploratory research used in this study adopts a case study approach. Data derived from semi-structured in-depth interviews held with senior management and companies' founders were analysed using content and thematic analysis techniques.,The findings suggest that accumulated learning by SMEs seeking international expansion is enhanced with stronger social capital ties and networks through structural, relational and cognitive mechanisms. Serendipity and liability effects enabled modes of foreign entry with higher degrees of commitment than efficacy-related factors.,The Palestinian pharmaceutical industry presents a benchmark for other industries in comparable developing economy contexts. This study elucidates the important interrelationship between social capital and learning for SMEs seeking to expand internationally; the findings have implications for regional policymaking in developing economy regions.,The case study investigation focuses on the pharmaceutical industry and SMEs operating within the extreme context of Palestine, thereby contributing insights in an area of management enquiry that is under-represented in the extant literature.

Small business debt financing: the effect of lender structural complexity

Abstract: Small- and medium-sized enterprises (SMEs) depend on a large measure on commercial banks for external capital, and US SMEs are increasingly experiencing bank credit constraints and resorting to costly alternatives. The purpose of this paper is to investigate the impact of lender organizational complexity on SME financing shortfalls. In particular, it examines the credit shortage effects associated with the SME's reliance on bank holding company (BHC) owned, as opposed to independent, lenders.,Building on agency–theoretic rationales, the authors posit that both hierarchical and horizontal complexity associated with present-day BHC structures will diminish an affiliated bank's ability and willingness to properly underwrite SME credit needs. Consequently, they hypothesize that SMEs whose commercial lenders are BHC affiliates are likely to experience greater credit shortages. This hypothesis was tested using exhaustive financial data from a large and nationally representative sample of US SMEs.,Greater SME reliance on loans from BHC lenders was found to be associated with a greater use of late trade–credit payments. The latter is an expensive form of financing and a generally accepted indicator of shortages in conventional (and cheaper) bank credit.,Despite the evolution toward more complex bank organizational forms, especially among community banks, the implications for SME lending are not yet fully understood. This paper's contribution is to offer a first examination of the impact of post-deregulation BHC structures on SME financing shortfalls.

An exploration of the role and contribution of entrepreneurship centres in UK higher education institutions

Abstract: This study evaluates current and future roles of UK entrepreneurship centres (ECs) within Higher Education institutions. Literature suggests current activity in entrepreneurship education is strongly associated with the contribution of ECs. However, ECs experience resource limitations and high stakeholder's expectations, leading to a proliferation of aims, roles and identity issues.,The study evaluates five UK EC using evidence from a range of stakeholders within each centre. The study considers the strategic direction of ECs, their aim and roles, resourcing and the leadership role they adopt.,The study assesses the role ECs are fulfilling in the promotion of entrepreneurship and the resource constraints limiting future development. The need for EC identity and community contribution are identified as a determinant of success.,This study offers novel insight into factors influencing EC behaviour and future strategy, which will be of value for UK HEI and Entrepreneurship educators.

Innovation and small and medium enterprises’ performance in Cameroon

Abstract: This article attempts to explain performance through the development of innovations within small and medium enterprises (SMEs). Specifically, the authors analyse the determinants of innovation and assess the role of technological and non-technological innovations in performance.,Based on a sample of 508 Cameroonian SMEs, the PSM (propensity score matching) technique was used to reduce the selection bias inherent in this type of analysis.,The results show that technological innovation does not influence significantly the performance of SMEs, whereas non-technological innovation positively influences it. The combination of these two types of innovation leads to better performance than even accentuated development of only one type.,To improve the performance of SMEs, it is necessary to adopt a comprehensive innovation policy that combines non-technological and technological innovations. In addition, it is important to intensify informations and communication technologies (ICT) promotion policies that contribute to the adoption of innovations within enterprises.,This paper contributes to the literature by showing the role of technological and non-technological innovations in explaining the performance of SMEs. Moreover, unlike the existing work in sub-Saharan Africa, which is limited to testing the innovation–performance relationship, this study also determines the productivity gain generated by innovative firms compared to non-innovative ones.

The emergence of entrepreneurial team as a research field – way forward

Abstract: PurposeThe purpose of this paper is to review and critique the existing literature on entrepreneurial teams (ET) by taking a multi-disciplinary viewpoint and provide a future research agenda based on the identified themes and trends.Design/methodology/approachA systematic literature review (SLR) was undertaken using “business source complete”. Further scrutiny and application of exclusion criteria led to a final sample consisting of 139 papers from 27 different journals belonging to not just entrepreneurship and strategic management but also other disciplines like OB, finance, sociology, psychology, etc. Using qualitative thematic analysis, the authors identified 11 major themes.FindingsThe paper reviews both the eleven themes and the linkages between the themes. Thereby identifying areas that have been understudied and those that have received comparatively more attention. The review revealed that the research stream possesses certain conceptual and methodological concerns apart from its cross-sectional and primarily bivariate nature. Five such main concerns have been identified and discussed in detail. Other elements of the resulting research agenda include calls for more clinical process-oriented research, further attention to context, shifting the level of analysis, and a need to integrate across disciplines.Originality/valueThis paper incorporates a broad insight of ET across academic disciplines to show how future contributions could benefit by incorporating research from other fields. In doing so, provides a starting point for more nuanced discussions around the interrelationships between the different conversations that are taking place in the ET literature.