International Journal of Entrepreneurship and Small Business (149 papers in press)
by Howard Frederick
Abstract: This article combines entrepreneurship, economics and sustainability to build a new theory of biosphere entrepreneurship. Going beyond business and social entrepreneurship, which add value to private and community domains, respectively, biosphere entrepreneurship adds value to the biosphere and ecosystem services. The purpose of this article is to define biosphere entrepreneurship, and to devise and extend mental models (frameworks) relating entrepreneurship and climate change to facilitate theory building. Using images and visual depictions, the article elaborates a series of illustrative candidate frameworks that suggest a theoretical model of entrepreneurial ecology or biosphere entrepreneurship. It aims to show how the Earth, humanity, and the economy are connected through negative entrepreneurship and positive entrepreneurship. It extends extant frameworks from the fields of financial and capital, entrepreneurial allocation, risk and survival, value and disvalue creation, growth and de-growth, socio-cultural frameworks, and entrepreneurial opportunity to justify entrepreneurial activity that adds value to Earth. The article concludes with implications for entrepreneurship education. What should educators be doing to help our young entrepreneurs come to grips with existential and catastrophic risks?
Keywords: value creation; opportunity recognition; entrepreneurship development; climate change; sustainable development; resilience theory; economic growth.
Entrepreneurship in the Third Age: Retirees' Motivation and Intentions
by Eli Gimmon, Ronit Yitshaki, Shira Hantman
Abstract: This exploratory study of motivation for entrepreneurship in later life extends the concept of active aging which in recent decades has attracted growing research attention in contemporary Gerontology. Motivation of older adults toward entrepreneurship has been underexplored. Previous research shows mixed results regarding the effect of pull and push factors on entrepreneurial intentions. We employed a mixed methods approach while data was collected from a homogeneous cohort of retirees. rnFindings indicate that older adults' motivation to become entrepreneurs is centered mainly on pull factors such as self-fulfillment, increasing personal well-being, self-realization and enhancing personal interests. Older adults may consider becoming entrepreneurs as part of their active aging perceptions. These findings have implications for designated training programs for older adults that aim to promote their motivation and foster their skills to launch entrepreneurial activities.rn
Keywords: Active aging; Entrepreneurial motivation; Entrepreneurial intentions; Older adults' education.
Does Transformational Leadership Matters in Gazelles and Mice: Evidence from Bosnia and Herzegovina?
by Ramo Palalic, Benjamin Durakovic
Abstract: The purpose of this paper is to examine gazelles and mice, their transformational leadership style level and its relationship with business performance. The study is a quantitative approach based on survey data collected from business owners and CEOs across Bosnia and Herzegovina. The quantitative results show that gazelles apply more transformational leadership compared to mice. In the long term, we suggest gazelles to improve transformational leadership styles in order to maintain their growth and development. Leaders of mice should be aware that transformational leadership can influence their transformation into gazelles if it is fully implemented. Both gazelles and mice should work on intellectual stimulation that can create and produce proactiveness in the long term, giving them more strength and synergy for being a first mover in the market. The research also draws implications for managers and business owners regarding transformational leaderships effect in creating a growth model for mice to reach gazelles level, while simultaneously suggesting how gazelles should behave in order to retain their current title. This is the first empirical research that examines transformational leadership styles effect on business performance in gazelles and mice.
Keywords: Gazelles; Mice; Transformational leadership; Business performance; SMEs.
Adequacy of Agency Theory in Explaining the Venture Capitalist Entrepreneur Relationship: A Firm Life Cycle Perspective
by Swati Panda
Abstract: This paper explores the adequacy of agency theory in explaining the Venture capitalist (VC) entrepreneur relationship through a firm life-cycle perspective. In the process, it draws the temporal boundaries in the relationship which are adequately explained by the agency theory. The findings indicate that early stage relationships are plagued little by agency risks while the relationships that are developed at an advanced stage suffer from severe agency risks. Based on these findings, its prudent for the stakeholders in the early stages to invest in relational mechanisms for curbing agency risks while contractual mechanisms are essential for advanced stage relationships. The findings have important implications for VC-Entrepreneur relationships as it can lead to better decision making through increased level of cooperation.
Keywords: Agency theory; Entrepreneurship; India; Information asymmetry; Goal incongruence; Venture capital.
Reinvention of management innovation for successful implementation
by Philippe Giuliani, Marc Robert, Frederic Le Roy
Abstract: This papers primary aim is to show how a management innovation is implemented due to the creation of another new management innovation through an endogenous process. We call this process the reinvention of a management innovation. Building on management innovation implementation literature, we elaborate a theoretical framework that details the endogenous mechanisms through which the implementation phase of a management innovation can be the foundation of another management innovation. A management innovations adoption does not necessarily require its adaptation. Adopting a management innovation may lead to the generation of another management innovation in order to successfully implement the first management innovation. We use the term reinvention when a management innovation is generated through an endogenous process. We used an exploratory method based on a qualitative and longitudinal case research study. The present paper contributes to the understanding of emergence and implementation process of management innovations.
Keywords: Management innovation; Implementation; Reinvention; Multinational Company.
Development of Rural Group Entrepreneurship in Indonesia: Benefits, Problems, and Challenges
by Istiqomah , Wiwiek Rabiatul Adawiyah
Abstract: Rural entrepreneurship especially for women has been imperative because various entrepreneurial activities have empowered them in social, economic and cultural fields.The strategy of using group to foster rural entrepreneurship has been appealing for development planners and donors. With such a spirit, Bank Indonesia in collaboration with the village authority has developed a women business group in Papringan village, Banyumas district, Central Java through the provision of trainings, production tools, a gallery, and support to participate in trade fairs. Using interviews as the main data collection, this paper presents the lessons learned from this initiative particularly from three aspects: benefits as members perceive, problems and ways to deal with them, and challenges facing the group in the future. The results show the following findings: a) equal level of skills or complementary skills among members could be an important aspect to develop group entrepreneurship, b) providing gradual victory could be important to retain and motivate members, and c) member recruitment should consider their motive. Because the supervision will soon come to an end, the mission of the group should be clearly defined whether it serves as a business entity or a business incubator for villagers who want to learn to be entrepreneurs. rn
Keywords: rural development; rural entrepreneurship; female entrepreneurship; group entrepreneurship.
Intrinsic Entrepreneurial Motivation Factors: Gender Differences
by Paul Daulerio
Abstract: In the last two decades the growth in female-owned entrepreneurial ventures has accelerated dramatically. Despite this, there is sparse research regarding gender differences in key intrinsic entrepreneurial motivation factors. This paper adds to the extant literature regarding this topic in the context of the post-2007/2008 U.S. economic recession. I examine each of the three most often cited intrinsic entrepreneurial motivation factors, i.e., (1) Challenge and Achievement Focus, (2) Acceptance, Appreciation, and Self-Esteem, and (3) Self-Fulfillment and Creative Outlet. My findings suggest that these key intrinsic entrepreneurial motivation factors are stronger for female entrepreneurs than male entrepreneurs.
Keywords: entrepreneurial motivation factors; female entrepreneurs; entrepreneurial venture importance; intrinsic motivation factors; challenge; achievement; acceptance; appreciation; self-esteem; self-fulfillment; creative outlet; U.S. recession; male entrepreneurs; small business job creation.
The value of communication in turbulent environments: How SMEs manage change successfully in unstable surroundings
by Badih Arnaout, Mark Esposito
Abstract: Few studies exist on how communication influences the successful implementation of change initiatives in SMEs experiencing turbulent environments. The purpose of this paper is to bridge this gap by exploring a case study where managerial communication skills influence the ability to manage change successfully in a turbulent environment. A detailed case study approach is used to describe the particular ways management uses communication to effect change while experiencing a very unstable turbulent environment. This research proposes a model where communication at its center is the means by which conceptualisation changes the process as it relates to the implementation of change initiatives in a turbulent environment. Communication is the prominent component to the successful implementation of change initiatives in turbulent environments. In other words, without the communication element, successful implementation of change in a turbulent environment is very questionable. The findings of this research point to the importance of communication as a key linking all pieces of the model together in order for SMEs to manage change successfully under environmental turbulences. Therefore, if one fails in ones communication attempts, ones change implementation will fail.
Keywords: Change management; SME; Entrepreneurship; Organisational change; Environmental Turbulences; Communication.
Mapping of International Opportunity Recognition among foreign SMEs in Iran: from a theoretical analysis to an empirical perspective
by Ehsan Soltanifar, Peyman Ajdari, Manochehr Ansari
Abstract: This paper is aimed to make a detailed comparison among international opportunity recognition (IOR) profiles of foreign Small and Medium Enterprises(SMEs) in Iran including four specific countries. After undertaking a literature review, we have conducted 44 semi-structured-interviews with SMEs from different industries which focused on Iranian markets in their IOR. Using matrix approach for data display and condensation, this analysis extracted main themes from practitioners responses by discussion based on literature, and led to a set of IOR profiles divided by each country's practice. The research indicated that most of SMEs commence their OR process by attending fairs or outgoing delegations and continue different routes based on their industrial, cultural and networking components grouped into six factors. The method we have developed for IOR-mapping could help international business scholars to analyze and compare practitioners' situation with others and it also facilitates IOR initiatives locally and globally.
Keywords: International entrepreneurship; International opportunity recognition; IOR profiling and mapping; Iran.
Educating Entrepreneurship: A Tool to Promote Self Employability
by Asma Zaryab, Usman Saeed
Abstract: The academic institutions and universities are facing unprecedented challenges in establishing the structures that may provide students a medium for new startups. Recently the perceptions have been changed, and universities are placing emphasize on academic as well as professional development of an entrepreneurial set of skills. This research aims to investigate the role of universities in fostering and developing the entrepreneurial intentions of students from different programs. Also, it confirms the effects of various educational programs in developing the entrepreneurial intentions of science, IT, engineering and management graduating students, empirically tested through the theory of planned behavior.
Keywords: Entrepreneurial intentions; entrepreneurship in education; self-employability.
Influence of unemployment and education on women intentions to start e-entrepreneurship: Evidence from Indian survey data
by Harvinder Mand, Meenakshi Atri, Amarjit Gill
Abstract: This study examines the influence of unemployment and education on womens intentions to start e-entrepreneurship. Female owners of e-businesses from India were surveyed regarding their perceptions of unemployment, education, and their intentions to start e-entrepreneurship. Findings suggest that unemployment and education positively influence womens intentions to start e-entrepreneurship in India. This study contributes to the literature on the factors that influence womens intentions to start e-entrepreneurship. The findings may be useful for investment advisors, Indian government, and entrepreneurship consultants.
Keywords: E-entrepreneurship; unemployment; education; family size; India.
ENTREPRENEURIAL ORIENTATION IN NAMIBIA: THE DOLAM COMMUNITY
by WILFRED ISAK APRIL
Abstract: Aims: This paper seeks to explore the various barriers expatriates faced in a large underdeveloped, yet entrepreneurial community of Dolam in Windhoek, Namibia. It has been a very daunting task for the communities in Dolam in attaining entrepreneurial success since Namibian independence on 21st March 1990.
Literature Review: This paper is built on the thesis that small businesses cannot grow or succeed unless they strive to be entrepreneurial and innovative. In addition the paper explores the entrepreneurial orientation of expatriates in Dolam. In the past, expatriates have settled in numerous areas, within Namibia and have seized business opportunities to establish their own enterprises, but growth to such start-ups has been limited or non-existent due to various limitations and challenges. The various dimensions of entrepreneurial orientation and the role of knowledge spillover and foreign direct investment are explored. According to Gardella (2011) there are numerous problems which hinder the development of small business namely; lack and access to finance, lack of market information and lack of managerial skills amongst many others. This paper will further explore whether expatriates in Namibia are willing to take this as inherent and what factors could prevent their businesses from success.
Methodology: This research made use of questionnaires and face to face interviews to support its methodological approaches.
Findings: This study revealed that expatriates in Namibia faired reasonable good on the entrepreneurial orientation dimensions, but the policy implications needs great improvement, if the country wish to benefit from the skills and knowledge of these entrepreneurs.
Keywords: Entrepreneurship; Dolam; Expatriates; Katutura; Namibia; Foreign Direct Investment; Knowledge Spill Over and Small Business.
What Makes You Popular: Beauty, Personality or Intelligence?
by Andrea Fronzetti Colladon, Francesca Grippa, Elisa Battistoni, Peter Gloor, Agostino La Bella
Abstract: This study explores the determinants of popularity within friendship and advice networks. We involved almost two hundreds college students in an experiment to predict how personality traits, self-monitoring, creativity, intelligence, energy, and beauty influence the development of friendship and advice networks. Our results indicate that physical attractiveness is key to develop both friendship and task-related interactions, whereas perceived intelligence and creativity play an important role in the advice network. Our findings seem to support the idea that there might be a kernel of truth in the stereotype that attractiveness correlates with positive social traits and successful outcomes.
Keywords: Advice Network; Friendship Network; Social Network; Personality; Intelligence; Attractiveness; Creativity; Peer selection; Peer influence.
Entrepreneurship and Knowledge spillovers from FDI and Exports concentration, diversification
by Arbia Chatmi, Karim Elasri
Abstract: The present paper addresses the effects of goods exports concentration/diversification, services exports concentration/diversification and inward FDI, which enables knowledge spillovers, on entrepreneurial activity that is business entry in a panel of 75 countries in 2004-2012. For economies at the efficiency-driven stage, entrepreneurial activity benefits from goods exports concentration, services exports diversification and inward FDI. For economies at the innovation-driven stage, knowledge spillovers to business entry come from concentration in both goods exports and services exports. For economies at factor-driven stage, goods exports diversification and services exports concentration generate knowledge spillovers for business entry.
Keywords: Entrepreneurship; Exports; Goods; Services; Countries; Economic Development.
Entrepreneurship Policy to Overcome Barriers to New Firm Growth in a Developing Economy: Evidence from Oman
by Abdullah Al Shukaili, Marco Cucculelli, Jose L. Gonzalez-Pernia, Inaki Pena Legazkue
Abstract: The debate continues over the effectiveness of entrepreneurship policy to address market and institutional failures, as mixed findings from the literature have led to unclear conclusions. While this subject has been extensively analysed in advanced economies, little is known about the impact of entrepreneurship policy in developing countries. The purpose of this study is to examine the extent to which current insights on entrepreneurship policy are applicable to less developed countries, where market and institutional failures are more pronounced. More specifically, the implementation of a government support programme a programme aimed at granting loans for venture growth in the context of a developing economy is assessed. Using bias-corrected matching estimation techniques, the results reveal that a policy designed to address severe financial market failure in a developing economy positively contributes to new firms overcoming barriers to growth during the critical early stages of their development.
Keywords: Entrepreneurship policy; government loan support program; new firm growth; developing economies.
Opening the Black Box of Small-Firm Networks: Governance Mechanisms and their Impact on Social Capital
by Douglas Wegner, Kadigia Faccin, Pietro Dolci
Abstract: The literature on business co-operation and Small-Firm Networks (SFNs) is silent regarding the effects of governance on relational variables such as entrepreneurs social capital. Based on this assumption, we analysed how the governance mechanisms of SFNs influence the social capital of participant entrepreneurs. The research was based on a survey involving 212 firms from 49 different Brazilian SFNs. Results show that governance mechanisms of SFNs influence both the individual dimensions of the entrepreneurs social capital (structural, relational and cognitive) and the aggregated variable. Centralisation of decision-making is the main governance mechanism that negatively influences social capital. Our paper contributes to theory by showing how the design of governance mechanisms in SFNs affects social relations and the entrepreneurs' social capital. The study also provides network managers with practical insights on how to govern SFNs in order to make the co-operation effective and avoid side-effects on members' social capital.
Keywords: small-firm networks; governance; social capital; cooperation; business networks.
Human capital management at incubators successful in new firm creation: Evidence from Japan
by Nobuya Fukugawa
Abstract: Supporting entrepreneurial activities in high-tech sectors has a significant implication on growth of knowledge-based economies. A number of business incubators have been established in Japan since the 1990s to revitalise a stagnated economy through the promotion of high-tech entrepreneurship. This study quantitatively examined characteristics of incubators which were successful in new firm creation, with a focus on human capital management according to technologies and life cycle stages of startups to which incubators gave support. The results of panel estimation reveal that the breadth of professional experiences of incubation managers is positively associated with new firm creation in electronics, while specialisation matters for the creation of biotechnology startups. These results are observed only for incubators which give support to nascent entrepreneurs. Alliance with and proximity to universities are positively associated with incubators success when they are devoted to assisting nascent entrepreneurs, which is salient in biotechnology.
Keywords: business incubators; entrepreneurship; incubation managers; innovation intermediaries; innovation policy; knowledge-based economies; sectoral innovation systems; economic growth; new firm creation; Japan.
Social Capital, Knowledge Management and Innovation Performance
by Maryam Ghaedi, Mehrdad Madhoshi
Abstract: The present study was conducted to explain the role of social capital in innovation performance with the mediating effect of knowledge management in knowledge-based companies. The population in the present descriptive survey included all knowledge-based companies established in the Science and Technology Park of Tehran University. Data analysis was conducted using structural equation modeling and WarpPLS-5 software. The results indicated that social capital affects organizational knowledge management; however, its effects vary based on the type of activities. It was also shown that social capital affects soft knowledge management activities (including creation and transfer of knowledge, but its impact on hard knowledge management activities is not significant. Moreover, it was found that improving knowledge management in companies requires the availability of appropriate structures and technologies in addition to trust-based interactions between organizational members or, in other words, the development of organizational social capital.
Keywords: Innovation performance; Social capital; Knowledge management; Knowledge-based companies.
Social Entrepreneurship by Co-operative: Examining Value Chain Options of an Indigenous Fishermans Co-op
by A.K.M. Shahidullah, Durdana Islam
Abstract: Indigenous cooperative supporting community development objectives has potential to flourish as a social enterprise. Our study draws on social value creation and value chain to find value addition opportunities of a community-based cooperative. Field study was conducted in Norway House Cree Nation community, Northern Manitoba, Canada, adopting qualitative case study methods. We surveyed fisher-households and cooperative members. As well, we conducted semi-structured interviews with experts, government officials, NGO personnel, fish distributors, retailers, and marketing agents. We also held two focus group discussions in the community. We observed that the studied cooperative operates only as a supplier to the primary market. Results show, intervention in the upstream value chain with establishment of modern processing facilities would ensure cooperatives participation in the secondary markets, create employment opportunities in the community, and enhance its capacity for further social contributions. We conclude that, value chain intervention, if made at the community level where producers work corporately as a primary suppliers under a cooperative, create further value in the society.
Keywords: Social entrepreneurship; Fisherman’s Cooperative; Value chain; Value creation; Indigenous community.
Identifying Sources and Roles of Networks in International Expansion among Small Businesses in a Less-Technology-Intensive Industry
by Byoungho Jin, Bharath Ramkumar, Wendy Hsiao-Chun Chou
Abstract: The purpose of this exploratory study is to examine how small businesses in a less-technology-intensive industry gain and utilize networks strategically to facilitate their internationalization process. Using a multiple case study method, this study found that small businesses in a less-technology-intensive industry gain networks through business consultants, fans and friends (personal networks), government institutions, diaspora, embassies and trade fairs. These network sources are strategically utilized in various stages of the internationalization process such as gaining knowledge about a new market (before foreign market entry), assisting in marketing and promotional activities (after foreign market entry) and connecting with international partners (both before and after foreign market entry). This study extended the networking approach of internationalization theory to a less-technology-intensive industry, by identifying network sources and linking these to their specific roles in the internationalization process of small businesses. Small businesses can learn from the findings of this study on how to expand their existing networks in todays global marketplace and gain a competitive advantage. The unique sources of networks identified in this study may be valuable to small businesses in the less-technology-intensive and highly consumer-driven industries.
Keywords: small business; networking; internationalization; global; consultant; case study; less-technology-intensive; apparel and related industry.
THE HIDDEN EFFECT OF INNOVATION IN THE GROWTH OF THE SPANISH FIRMS
by Manuel Angel Nogueira, Sara Fernandez-Lopez, Maria Jesus Rodriguez-Gulias, Milagros Vivel-Bua, David Rodeiro-Pazos
Abstract: Since the studies of Schumpeter (1939), Solow (1957), or Nelson and Sidney (1982), innovation has been considered one of the major drivers of economic growth. This paper explores the relationship between firms innovation and sales growth. Using an original dataset of 80 listed Spanish firms over the period 20042014, we firstly apply a panel data fixed effects estimator. However, since growth rates follow a Laplace distribution, we also employ panel data quantile regressions to overcome the problems of regression techniques focused on the average firm. Additionally, we consider a rich set of innovation and firm-specific variables that help mitigating standard omitted variable bias. Our results show that R&D expenditures influence sales growth, but the effect seems to be due to tax benefits, rather than expected innovation outcomes. In contrast, the market value of patents is undoubtedly related to firm growth, although high-growth firms capture larger benefits.
Keywords: innovation; growth; Spain; panel data; quantile regressions; R&D expenditures; patents; R&D intensity; financial performance.
PHOTOGRAPHY AS VISUAL LEARNING TOOL IN ENTREPRENEURIAL EDUCATION
by Marina Dabic, Barbara Unkovic, Ivan Novak
Abstract: We live in an age of pervasive visual imagery all around us there are arguments that a more focussed toward visually oriented educational system is needed which should build pathways on visual literacy.\' By analyzing, interpreting and debating the content of photographs the theoretical or conceptual development is facilitated. The visual learning tool presents a starting point for further research on visual tools and their impact on the subsequent performance of students in non-business and business entrepreneurship courses. The tool tailors professional settings that require high visual decoding skill and visual information acquisition and encourages higher education system to produce multiliterate graduates able to get along in the volatile global environment.
Keywords: : entrepreneurial education; photography; visual tools.
Investment Readiness and Access to External Finance among Ghanaian Small and Medium-Size Enterprises
by Edward Nii Amar Amarteifio, Siaw Frimpong
Abstract: The importance of SMEs in the process of transitioning from a planned economy to a market economy is now recognised in the body of knowledge on SME investment readiness. This study examined the investment readiness of SMEs and its access to external finance in the Accra Metropolis in Ghana. A mixed method approach, employing both quantitative and qualitative research methodology were utilized. Face-to-face interviews, using questionnaires were employed to collect data from 500 owner/managers of SMEs in the metropolis. The results of the study revealed that investment readiness variables such as owner/managers age, financial leverage and financial information had significant positive relationship with access to external finance of SMEs. It was recommended that government should support SMEs and also develop programmes to enhance investment readiness amongst SME owner/managers.
Keywords: Investment-readiness; access to external finance; Small and Medium-Size Enterprises; Ghana.
The Lioness from Peki'in
by Osnat Akirav
Abstract: This study explores two questions: What are the obstacles that Druze women face in both their traditional society and Israeli democratic society when they want to become entrepreneurs? And secondly, how do they overcome these obstacles? To answer these questions we use a case study analysis: the story of Savta Gamila (Savta means grandmother in Hebrew), a religious Druze woman who manufactures and sells herbal soaps worldwide. A combination of personal characteristics and the ability to recognize opportunities and act upon them helped Gamila overcome the obstacles to becoming an entrepreneur.
Keywords: Women's entrepreneurship; Druze women; Tefen Industrial Park.
Early Growth States of Small Businesses in China: the Business Model Perspective
by Michael Jijin Zhang
Abstract: In this study, we drew on the business model research and the stage theory of business growth to develop a five states model of how small businesses in China grow in their early existence. The model suggests that a Chinese small business may progress through five states of early growth, depending on the extent to which the business addresses the four fundamental issues in business value (for whom to create value, what value to create, how to create value, and how to capture value). To evaluate the validity of our model, we developed a survey instrument for assessing the five different growth states and collected the survey data from 100 small and micro businesses operating in the City of Changsha in China. A factor analysis of the survey data provided some initial evidence for the model structure.
Keywords: small businesses; business growth; business model; China.
ONTOLOGIES AND EPISTEMOLOGIES IN KNOWING THE NEXUS IN ENTREPRENEURSHIP: BURNING RICE HAY AND TRACKING ELEPHANTS
by Yolanda Sarason, Michael Conger
Abstract: The distinctive domain of entrepreneurship has been defined as the nexus of the entrepreneur and opportunities. We argue that this definition, as well as dominant research in entrepreneurship, is rooted in a Western perspective situated in market-based economies. In order to further the understanding of the dominant assumptions of the nature of the nexus (ontology) and our understanding of the nexus (epistemology), we interpret and reinterpret a case of an entrepreneurial venture in Vietnam. We propose that a multi-paradigm analysis in entrepreneurship will yield insights that are applicable to a more global perspective of entrepreneurship.
Keywords: Philosophy of Science; Ontology; Epistemology; Entrepreneur Opportunity Nexus; Paradigm; Subjective; Objective.
How the working capital management influences companies' profitability. Case study of Greek pharmaceutical companies.
by DIMITRIS AXIOTIS, ALINA HYZ, PETROS KALANTONIS
Abstract: This study examines the relationship between working capital management and firm's profitability for the period before and after last economic crisis in Greece. We use as a sample Greek pharmaceutical industry. We examine as a dependent variable return on assets ratio, as explanatory variables: cash conversion cycle, days inventory outstanding, days sales outstanding and days payable outstanding and as control variables: firm's growth, leverage and firm's size. The results, based on the implementation of descriptive statistics, Pearson's correlation and regression analysis show: 1/. positive relationship between profitability and cash conversion cycle, firm's size, growth and leverage and 2/. negative relationship between profitability and components of cash conversion cycle. The impact of economic crisis on these relationships is also analysed.
Keywords: Working Capital; Profitability; Crisis; Greece; Pharmaceutical industry.
Managing Rapid Change and Rapid-growth in Emerging Industries
by Hamid Etemad, Christian Keen
Abstract: Increasingly, competitiveness is not an option for firms that seek to survive and grow in the interconnected world. Countries, and industries are facing an unprecedented change in their business structures with new young and dynamic firms reshaping old business models as smaller firms are internationalising successfully. They are not only entering developed economies; but also in emerging economies due to globalisation, removal of barriers and open-trade policies. At home, they are becoming the drivers of jobs and wealth creation and innovation. We posit that emerging industries are also affected as rapidly-growing enterprises (RGEs) change and challenge industrys operating environments. In developed economies RGEs are dynamic, take advantage of newly-emerging or fragmented markets to deliver higher values in spite of their constrained resources. In the emerging economies, the dynamism and liberalisation of international markets are changing the relative values of resources and increasing the importance of becoming a learning organisation for which RGEs offer an excellent model. The paper presents a theoretically based framework to facilitate and guide the transition. A discussion in the Conclusions explores implications and suggests public policy recommendations
Keywords: Competitiveness; entrepreneurial mind-set; international networks; internationalisation; learning organisations; RGEs.
Understanding the aspirations of Finnish entrepreneurs and venture capitalists: their effects on international operations and growth
by Diane A. Isabelle, Mika Westerlund, Risto Rajala, Seppo Leminen
Abstract: Small firms must increasingly seek external funding to fuel their growth ambitions domestically and internationally. However, external funding comes with conditions and ownership claims signifying changes to the entrepreneurs status quo. At the same time, the current climate for entrepreneurship and the availability of funding tend to fluctuate because potential funders contemplate the keenest investment strategy. In this study, we use a sample of 262 small internationally operating firms in Finland to investigate the impacts of entrepreneurs acceptance of venture capitalists (VCs) as new stakeholders in their firms and the approaches VCs take to entrepreneurship. Moreover, we study the effect of external funding on international operations, growth and financial performance of the firm. We found that the aspirations of entrepreneurs and VCs affect the firms use of external funding, and that this funding contributes to increased international operations, corporate growth and financial performance.
Keywords: entrepreneurship; funding; financial performance; growth; Finland; international; stakeholders; venture capital; SMEs; acceptance.
THE ROLE OF INSTITUTIONAL ELEMENTS IN STRATEGIC ACTIVITIES OF SMALL BUSINESS PRACTITIONERS
by MARCIO MARIETTO, FERNANDO SERRA
Abstract: This study offers different perspectives for observing the phenomenon of Strategic Practice of managers and sales persons in small stores located in an organisational field through the lens of Strategy as Practice (S-as-P) and Institutional Theory. Qualitative participant observation procedures were used in the largest Latin-American cluster of bridal stores and involved strategic work using the institutional elements of Weddings. The results indicated that the institutional and dynamic elements of the symbolic ritual of wedding enable the interaction among practitioners in their strategic activities. This provides legitimacy and, consequently, the survival of the organizations. We present a model in which the propositions seek to direct future studies of S-as-P with the assumptions of Institutional Theory. The study also contributes analysing strategic activities of small business practitioners to increase the potential for future empirical researches.
Keywords: Strategy as Practice; institutional theory; small business; practitioners; strategic activities; participant observation; organizational field; technical and institutional environment; small bridal stores.
The impact of regional systems of innovation on the formation of university spin-offs by biomedical star scientists
by V.J. Thomas, Elicia Maine
Abstract: Scientists in research universities can play a formative role in commercializing their inventions for the benefit of society. University spin-off formation is increasing in importance as an alternative to licensing, and can be impacted by both micro and macro-level factors of the regional system of innovation. However, there is limited understanding of the ways in which these factors can interact to enable the formation of university spin-offs. In this study we examine how the productivity of two biomedical star scientists in co-founding university spin-offs can be supported or constrained by other elements of the regional system of innovation. Recommendations are made for research universities seeking to foster entrepreneurship through university spin-off formation.
Keywords: Star scientists; University Spin-offs; Regional Systems of Innovation; Anchor Companies; Technology Entrepreneurship; Innovation Policy; Science Policy; Academic Entrepreneurship; University Entrepreneurship; Science Commercialization; Biomedicine; Life-sciences; Biotechnology; Technology Transfer.
Influence parameters correlation in a Twitter event network
by Cristian Bisconti, Angelo Corallo, Laura Fortunato, Alessandra Spennato
Abstract: Influence measures, like Social Network Analysis (SNA) metrics, Twitter social parameters, sentiment score and influence maximisation, are used in the literature in order to provide a characterisation of the user role and the content of messages inside a social media communication network. Using a Twitter network related to the international event EXPO2015, crawled from the events page, the paper measures the correlation between different influence measurements. The aim is to obtain an influence indicator framework able to interpret different user behaviour through the evaluation of user popularity, participation, influence and polarity of texts.
Keywords: Social Influence; Social Network Analysis; Sentiment Analysis; Influence Maximisation.
International entrepreneurship by particular people on their own terms: evidence of universal attributes of entrepreneurs in evolving economies
by Vahid Jafari Sadeghi, Paolo Pietro Biancone, Robert B. Anderson, Jean-Marie Nkongolo-Bakenda
Abstract: Incorporation of local people in different places into value creation through the establishment of new businesses is perceived as an entrepreneurial behaviour that promotes the internationalisation. Building on the wealth of material on internationalisation theory and regulation theory, this paper broadens the understanding of universal determinants of international entrepreneurial orientation and performance. Our results reveal that education, household income, and gender significantly contribute to the IE while we could not find any evidence to support the influence of age categories. To do so, we employed a binomial logistic regression modelling covered the data from evolving economies including Italy, Iran, and Canada.
Keywords: Internationalisation; Entrepreneurship; International Orientation; Regulation Theory; Universal Determinants.
The critical success factors of social entrepreneurship in India: An empirical study
by M.I.R. SHAHID SATAR, Shibu John
Abstract: The paper describes the social entrepreneurship (S-ENT) critical success factors (CSFs) identified from a survey study carried out in India. The ranking analysis of the survey results shows that 28 factors are rated as critical for determining the S-ENT success of a social enterprise. Further, the factor analysis revealed that the identified CSFs can be grouped into seven clusters, namely leadership, social enterprise planning, community engagement, innovative financing, human capital, legal support, and social enterprise marketing.
The outcome of the thesis provides pioneering insights through a structured framework for investigating the individual CSFs and their different levels of contribution to S-ENT success. The inventive knowledge generated out of the thesis work, can be specifically fruitful for practitioners and other stakeholders in identifying the areas of their social enterprise functioning that demand their utmost priority and attention, in identifying the skills and resources required for their venture success, in assessing their competitive edge and in helping to setup evaluation mechanism of their ventures etc. The pioneering insights can also be utilized by academicians for theory building and further analysis in the field.
Keywords: social entrepreneurship; social enterprise; critical success factors; strategic management; India; innovation management; planning.
Roles of Career Anchors and Path Dependency in the Entrepreneurial Process. Case Finland
by Rauno Rusko, Lenita Hietanen, Krista Kohtakangas, Taina Järvi
Abstract: Studies of entrepreneurship education emphasize the impact of this educational process in career and entrepreneurship development. This study focuses in particular on the impact of the decision to start entrepreneurship education at the university level. Traditionally, career anchors are associated with relatively stable career development, but through an analysis of 59 life stories, this research observed that career anchors are more flexible. This study revealed four main types of previous life paths among the students beginning the Entrepreneurship Studies Program (ESP) in Northern Finland, including their transitions between latent nascent entrepreneurship and actual entrepreneurship and between different career anchors. Entrepreneurship experiences do not always mean continuum in an entrepreneurship career.
Keywords: Career anchors; entrepreneurial process; competencies; path-dependency.
The rise of inter-firm agreements in the Japanese video game industry
by Kenichi Ohkita, Leo Dana
Abstract: The purpose of this paper is to examine inter-firm agreements between small firms and a large well-established firm; focusing on agreements involving complementary products. The well-documented emergence of the Japanese home video game industry is sourced for stylised facts to contribute to literature about the nature of complementary inter-firm agreements. Findings reveal that these agreements between small firms and a large well-established firm can be truly symbiotic, allowing the small firm to build its own reputation and influence the market. Furthermore, the small firm benefits from the user base and core competency of the large firm through economies of scale, and the large firm benefits from the product variety of the small firms through economies of scope. The managerial implications of this paper offer value to both small and large firms in terms of what to look for and how to benefit from inter-firm relationships based on complementary products.
Keywords: inter-firm agreements; complementary products; video game platform; emerging market; Nintendo.
Resource Based Theory and SMEs Internationalisation: Evidences from Indian Firms
by Pranaya Srivastava, Deepak Srivastava
Abstract: Small and Medium Enterprises (SMEs) play an important role in the economic activities of any country, including in exports.
This paper examines the role of firm specific resources in the export performance of Indian automobile ancillary SMEs located in the southern and western parts of India. The firm specific resources studied are (i) entrepreneurial resources (ii) knowledge based resources and (iii) property based resources.
To gain better insights into the research, the case study method of research has been used. A total of four case studies were analysed qualitatively in which two firms were selected from southern India and two from western India. In the case study method, in-depth personal interviews were conducted at the workplace.
The study found that entrepreneurial resources, knowledge based resources and property based resources played an important role in the export performance of SMEs. It was found that global mindset and international networking played an important role in export. Participation in trade fairs was found helpful in augmenting export performance. The research showed that SMEs were using latest technologies and owners played the key role of marketer. One of the findings of the study is that SMEs relied more on internally generated financial resources.
It was also found that owners of many SME were risk averse and were passive exporters. They preferred to export through agents. Trust was found to be a significant factor in any export decision.
Keywords: Resource Based Theory; Small and Medium Enterprises; Entrepreneurial Resources; Knowledge Based Resources; Property Based Resources; Trade Fairs; Global Mindset; Networking; Technological Resources; Marketing Resources; Slack.
The Effect of Emotional Intelligence on Entrepreneurial Behaviour and on New Venture Creation: An Egyptian Perspective
by Hadia Fakhreldin, Hala Hattab
Abstract: The study investigates the effect of emotional intelligence (EI) of Egyptian entrepreneurs on entrepreneurial behaviour (EB) and on new venture creation (NVC). It examines a sample of 467 Egyptian entrepreneurs who conduct self-administered questionnaires. The analysis shows that there is a significant relationship between emotional intelligence and entrepreneurial behaviour. There are also three components of EI (Interpersonal Skills, Internal Motivation and Self-Awareness) which strongly affect the NVC. Age has a moderating effect in this relationship. rnrnFurthermore, the study analyses the differences between the necessity-driven entrepreneurs and the opportunity-driven entrepreneurs with respect to the effect of EI on EB and NVC. In general, EI affects EB significantly, but this is particularly the case in the case of necessity, as EI does not affect EB in the case of opportunity-driven entrepreneurs. The effect of EI on NVC is significant in both cases. Looking at the components of EI, the analysis shows differences between cases of necessity and opportunity. The results have practical implications on entrepreneurship development and capacity building, specifically in developing countries, where necessity is more common. rn
Keywords: Emotional Intelligence; Necessity-Driven; Opportunity-Driven; Entrepreneurial Behaviour; New Venture Creation.
Interpretation of the Nexus between the Entrepreneurs and Entrepreneurial Business Opportunities in the Healthcare context: A Phenomenological Study
by Rosa Mehrabi, Jahangir Yadolahi Farsi, Kambiz Talebi
Abstract: Since few studies focused exclusively on the entrepreneurship, the entrepreneurial agents, and their interaction with the business opportunities in the healthcare area, the purpose of this paper is to interpret the intersubjective nature of the interplay between the entrepreneurs and entrepreneurial business opportunities in the context of healthcare entrepreneurship. The papers methodology is qualitative hermeneutic phenomenology. The samples of sixteen entrepreneurs in the pharmaceutical, medical biotechnology, medical devices and m-health areas of Iran were interviewed using semi-structured questions. Based on the interpretive phenomenological analysis approach, this study explores how healthcare entrepreneurs make sense of their business opportunities. The findings indicated seven spheres of the entrepreneurs' context-based insights, the entrepreneurs' context-based projections, the entrepreneurs' dispositional attributions, the external facilities in macro levels, the external facilities in micro levels, the entrepreneur's environmentally oriented actions and the entrepreneur's presupposition-oriented actions as the nature of the healthcare entrepreneurship nexus.
Keywords: Entrepreneur: Entrepreneurial business opportunity: Entrepreneurship nexus: Healthcare entrepreneurship: Hermeneutic phenomenology.
Marketing innovation and up-and-coming product and process innovation
by Marina Dabic, Andrea Razum, John Finley
Abstract: This paper focuses on the influence of different marketing innovation types impacts on product and process innovation. Marketing innovation is investigated through the report of innovation in terms of capabilities of product/service design, promotion and marketing methods. The cross-national research sample consists of 380 entrepreneurs from Croatia, Poland and the United Kingdom. The empirical results indicate significant contribution of different types of marketing innovation to product and process innovation therefore pointing towards essential importance of marketing in the firms innovation performance. Product and service design have been proven to have the most significant role in the successful product and process innovation, innovation in marketing methods contributes to radical product innovation whereas innovation in promotion to incremental process innovation.
Keywords: Marketing innovation; Product innovation; Process innovation.
Sing it out loud! The entrepreneurship of SME opera enterprises in Scandinavia
by Staffan Albinsson
Abstract: The purpose of this study is to contribute new knowledge on the entrepreneurial facets of opera production based on an in-depth study of a dozen SME enterprises. Interviews have been conducted with a semi-structured set of questions. As the studied companies are SMEs, the majority of the respondents are both their initiators, their artistic directors and their general managers in short their entrepreneurs. The analysis shows that opera entrepreneurs do, fundamentally, follow normal entrepreneurial processes in their endeavours. However, along the path of that process there is a wide variety of choices made which influence the outcome, mainly regarding the choice of repertoire and its subsequent staging. For a few, there was some entrepreneurship or project management tuition in prior education. For most, the necessary skills have been acquired through trial-and-error experiences. The study includes an attempt at an Observed Quality score and a Value-for-Money assessment.
Keywords: cultural entrepreneurship; opera; entrepreneurship in Scandinavia; entrepreneurship in SMEs; performing arts administration; cultural economics.
Who cares what the neighbours say: perceived failure intolerance and entrepreneurial intention
by Brock M. Stout, Heather Annulis
Abstract: Communities worldwide are seeking to improve aggregate entrepreneurial intention for local economic growth. This study investigates the potential influence of perceived failure intolerance (PFI) on entrepreneurial intention among potential entrepreneurs in rural environments. Failure intolerance has been mentioned as a possible entrepreneurial intention inhibitor, but less is known about the specific psychological operation of perceived failure intolerance or about why some individuals are less affected. The study also explores the influence of demographic variables and self-efficacy on the ability of potential entrepreneurs to overcome perceived failure intolerance. The synthesis of an anonymous expert panel from four states in the Midwestern United States indicates that PFI acts as a necessary filter to screen out individuals not possessing sufficient entrepreneurial mindset, but recommends more encouragement of groups underrepresented in a communitys startup base in order to increase overall entrepreneurial momentum.
Keywords: economic development; perceived failure intolerance; entrepreneurship; failure; regional development; entrepreneurial intention; entrepreneurial culture; social capital; self-efficacy; subjective norms; entrepreneurial mindset; community development; collective self-.
Maintaining the scene: Entrepreneurship in Berlins artistic sectors
by James Cunningham, Kaisa-Maija Tolonen
Abstract: Berlin is a city famous for its artistic culture and uniquely inspired history, building a hotbed of creativity to draw talent from across the world. Our research problem is that, notwithstanding abundant creativity, Berlins economy struggles behind other capital cities, and indeed Germanys national economy. We offer an explanation for this situation in the way entrepreneurship functions in Berlins artistic sectors. We apply a mixed embeddedness lens to find the key role of the intermediary driven by cultural agendas and the maintenance of artistic integrity. Thus, economic goals are deprioritised. Our findings have implications for understanding the creative industries in Berlin, and more broadly, they demonstrate the importance of social and spatial context in determining the nature of entrepreneurial activity.
Keywords: cultural entrepreneurship; creativity; Berlin; mixed embeddedness; social context; artists; noneconomic; ethnography; qualitative data; social construction.
Impact of Personal Cultural Orientations and Moral Potency on Self-Employment Intentions: The Moderating Role of Cognitive Styles
by Martin Mabunda Baluku, Kathleen Otto
Abstract: Self-employment presents a viable work opportunity for the unemployed. However, not all unemployed individuals are attracted to self-employment. Based on the assumptions of the situated meta-cognition model of entrepreneurial mind-set and theory of planned behaviour, we explain why unemployed individuals may evaluate self-employment as an attractive opportunity for career progression. Using a sample of 227 unemployed young people from East Africa, we examine the interactional effects of cognitive style, personal cultural orientation, and moral potency. Our findings show that unemployed young individuals with an adaptive cognitive style have higher self-employment intentions compared to their counterparts with intuitive or analytic styles. Moderation analyses showed that the effects of risk aversion and moral potency on self-employment intentions are conditioned by cognitive styles. Practical implications of these findings are discussed.
Keywords: Cognitive adaptability; cognitive styles; cultural orientation; entrepreneurship; independence; moral potency; risk aversion; self-employment.
Entrepreneurial competencies in successfully innovative SMEs
by Kyllikki Taipale-Eravala, Kaisa Henttonen, Hannele Lampela
Abstract: This study examines what kinds of specific entrepreneurial competencies enable SMEs to successfully implement innovations. The conceptual research approach is supported by empirical data in a multiple case study. A framework of entrepreneurial competencies in the 2000s is created, based on how they are defined in the recent literature, and the framework is reflected with qualitative interview data from 13 innovative Finnish SMEs in the forest industry. The study indicates that in SMEs that were able to successfully exploit and execute innovations, the entrepreneurial competencies include special extrovert competencies (e.g. open-mindedness), competencies related to preparation, and pro-activeness in business operations, which all seem to have a significant influence on successfully implementing innovations. Additionally, the study concluded that there are no notable differences between different innovation types and found entrepreneurial competencies in innovative SMEs.
Keywords: entrepreneurial competencies; SMEs; innovative; Finland; multiple case study.
Effects of Business Jihad on Entrepreneurs Motivation and Performance
by Zulkarnain Kedah, Md. Aftab Anwar, Suhaimi Mhd Sarif, Aahad M. Osman-Gani
Abstract: Despite being misinterpreted in many different ways, the concept of Jihad can be adopted to convey positive virtues in various aspects of life . While many studies have been generated on the topic of Jihad after the September 11th attack, little information is available in the area of business Jihad. The purpose of this study is to explore the effects of business Jihad on entrepreneurs motivation and performance. Nine experienced and successful Muslim entrepreneurs were selected to participate in this study which was conducted by using in- depth interviews. The results revealed that the adherence to the philosophy of business Jihad has significant positive impact on the entrepreneurs motivation and performance. Therefore, these findings have the capacity to inspire the leaders from various government agencies and entrepreneurs to work together in instilling the spirit of business Jihad as a means to achieve high motivation and performance in the business world.
Keywords: Business Jihad; Motivation; Performance; Entrepreneurship.
EXPLORING FIRM PERFORMANCE AND GROWTH AMONG OWN-ACCOUNT AND MICRO ENTERPRISES IN GHANA
by Nkechi Owoo, Abena D. Oduro, Charles Ackah
Using micro-level data from the 2013 nationally-representative GENDA survey on approximately 1,200 own-account and micro enterprises, we examine firm performance and business growth between men and women entrepreneurs in Ghana. Using OLS and multinomial logit (MNL) regression techniques, we find differential effects and constraints for men and women-owned businesses: Men generally perform better than women, controlling for a host of characteristics. We find that among women-operated firms, locating a business at home has negative performance implications. Additionally, women-operated firms report more positive growth experiences when their businesses are formally-registered. While credit constraint has negative effects for both male and female-operated firms, the effects are felt stronger among men. We also find some evidence of ICT use-age on performance of firms, with differential effects for men and women. These findings provide significant scope for policy targeting in order to enhance business performance and growth among own-account and micro- enterprises in Ghana.
Keywords: Own-account firms; micro enterprise; gender; firm performance; business growth; Ghana.
Womens Entrepreneurs Micro and Small Business Performance: Insights from Malaysian Microcredit
by Samer Alshami, Izaidin Majid, Nurulizwa Rashid
Abstract: In this paper we aim to provide a clear understanding about the factors that are associated with the success of womens micro and small enterprises who received microcredit for start-up new businesses for three years. An exploratory qualitative study from a constructivist grounded theory perspective was used, while sample of sixteen women was conducted in-depth unstructured interviews. We found that women who have a high level of future orientation, authority in decision making, group management skills, networks resources and business knowledge are more likely to meet a high performing business in innovation and job creation for outsiders family members. This study provides insights into womens entrepreneurship and small business development in the developing countries
Keywords: Women; Business Performance; Microcredit; Malaysia.
Why latent entrepreneurs delay their launch to the market in Mexico?
by Lucia Rodríguez-Aceves, José Manuel Saiz-Álvarez, Edgar Muñiz-Avila
Abstract: Entrepreneurship fosters job creation and GDP growth. Due to its strategic geographical position, the region of Jalisco, Mexico, is an attraction pole with more than 650 high-tech companies, exporting a total value of USD 21 billion (around GBP 16.4 billion) annually in tech products and services. In this paper, we introduce a new entrepreneurial perspective about latent entrepreneurship, and we propose an MSEM (Multigroup Structural Equation Modelling) model using GEM (Global Entrepreneurship Monitor) data. The model explains why latent entrepreneurs delay launching to the market, based on their fear of failure, perceived opportunities, and the emulation effect formed when nascent entrepreneurs interact with other successful colleagues. The main finding of this study suggests that in Mexico latent entrepreneurs fear of failure does not moderate the relationship between perceived behavioural control, entrepreneurial intentions, perceived opportunities, and the knowledge of other successful entrepreneurs.
Keywords: Entrepreneurship; latent entrepreneur; fear of failure; perceived opportunities; entrepreneurial networks; multigroup structural equation modelling; GEM; Global Entrepreneurship Monitor; Mexico; Jalisco; innovation; intention; perceived behavioural control; entrepreneurial intention; small business.
Our Herstory: Beit Hillels Founding Mothers
by Yahel Kurlander
Abstract: The article portrays the story of the founding mothers of Moshav Beit Hillel in Northern Israel, that was largely erased from the villages collective memory. It argues that without their entrepreneurial and resilient spirit, Beit Hillel would not have survived, thus hinting at the key role such women played the in history of the agricultural settlement in Israel.
Keywords: agricultural settlement in Israel; women’s entrepreneurship; Moshav Beit Hillel.
Is there a supreme being controlling the universe? Entrepreneurs personal beliefs and their impact on network learning
by Federica Ceci, Andrea Prencipe
Abstract: Entrepreneurs personal beliefs determine how external information, conditions and stimuli are filtered, interpreted and incorporated into a decision, which has a profound impact on firm performance. Spirituality, one of the most prominent aspects of personal beliefs, derives from the effects of both personal and social religious practices and confidence about the existence of a supreme being. Based on primary data collected from members of an association of firms that share the same principles and values, this paper analyses the effect that the entrepreneurs personal beliefs have on the possibility to learn from the network and, therefore, improve his or her firms performance. We find that the effect of shared beliefs on network-based learning is positively mediated by the cultural compatibility, creativity and sense of identity of the entrepreneurs in the network.
Keywords: Spirituality; Entrepreneurship; Personal beliefs; Network based learning; Cognitive proximity.
A study of sustainability reporting disclosures for manufacturing MSMEs: Evidence from India
by Manvendra Pratap Singh
Abstract: In present business environment, success and survival of micro, small and medium enterprises (MSMEs) depend upon how they are affecting natural environment and society against economic profits. Thus, it is necessary to examine the core business practises of enterprises in developing economy like India using sustainability reporting disclosures. The study reviewed the sustainability reports published by manufacturing MSMEs using MSME sustainability disclosure index (MSDI) in order to detail the business practises performed by the firms to address the sustainability challenges. The results indicate that sustainability reporting practises are dearth in Indian manufacturing MSMEs, especially in the context of environmental and social disclosures. The study feeds the debate regarding the extent to which MSDI can be considered as a mechanism for discharging social and environmental accountability in MSMEs.
Keywords: Sustainability reporting; GRI; MSME; manufacturing; India.
Opportunities of the entrepreneurship education for enhancing co-operation between start-up entrepreneurs and business angels
by Tiit Elenurm, Külliki Tafel-Viia, Silja Lassur, Külli Hansen
Abstract: This paper analyses the perceptions of start-up entrepreneurs and business angels about success factors, knowledge gaps and other challenges of co-operation between entrepreneurs and investors. Co-operation challenges and related learning needs are studied in the start-up entrepreneurship context, where entrepreneurs as new growth oriented venture founders are often searching additional capital providers. Understanding knowledge gaps of each other and learning by doing are important drivers of co-operation between founders and investors. Entrepreneurs pointed out knowledge gaps of business angels related to syndication. Business angels stressed learning needs of entrepreneurs in the field of testing the business idea and communicating with early users. Creating the cooperative entrepreneurial team was also considered an important learning challenge. Entrepreneurship education should prepare young entrepreneurs to understand the role of symbiotic entrepreneurship and different stakeholders in the start-up venture development process.
Keywords: entrepreneurship; business opportunities; start-up process; business angels; knowledge gaps; co-operation; trust; Estonia.
Examining female entrepreneurial firms: Can we predict growth orientation?
by Emma Fleck
Abstract: Both regional and global evidence presents a positive picture of increased entrepreneurial activity among females, and highlights in particular, the rise in the rate of early stage entrepreneurs across both developed and emerging nations. However, it appears that a significant percentage of female‐owned organisations remain small in size, with limited growth. Traditional growth models seem unable to account for this phenomenon and do not consider differences in gender as a causal factor. Consequently, this paper examines the growth orientation of female-owned firms in Ireland. Specifically, it identifies the factors that impact upon this process and provides clarity on predicting the growth trajectories based upon these entrepreneurial and organisational factors. As such, it aims to provide a mechanism to predict and stimulate high growth businesses among female entrepreneurs both within Ireland and across similar countries.
Keywords: Female entrepreneurs; Growth Factors; Growth trajectories.
Vho (Ms) Denga na (and) Vho (Ms) Masindi: role-model rural bricoleur women entrepreneurs
by Mavhungu Abel Mafukata, Mavhungu Elias Musitha
Abstract: Abstract: This paper explores how simple and ordinary rural women pioneered, developed and sustained their informal entrepreneurial activities. The success of these women entrepreneurs came at the back of a plethora of intertwined complexities these women entrepreneurs had to contend against. This paper uses the story of Vho (Ms) Denga and Vho (Ms) Masindi in its discourse. Vho Denga andrnVho Masindi were successful bricoleur entrepreneurs. Their activities have influenced a few other local women to enter entrepreneurship. This paper finds that these entrepreneurs never developed into larger formal entities commonly known as SMMEs. Vho Denga and Vho Masindi should be considered and utilised as role models and mentors of aspiring women entrepreneurs.
Keywords: Bricoleur; entrepreneurship; homeland; Street vendors; rural areas; SMMEs; women entrepreneurs.
Implementation of E-commerce Innovation on Small Enterprises in Nigeria.
by Blessing Ajao, Timothy Oyebisi, Helen Aderemi
Abstract: This paper contributes to debates on technological adoption in the informal sector. It identified and categorized e-commerce as an innovation among microenterprises. It also assessed the level of innovativeness on the use of e-commerce and determined the effects of adoption on firms performance. Primary data was collected from 387 microenterprises engaged in furniture works, leather products, clothing and textiles from three states in Nigeria through the use of questionnaire. The result showed that majority (62.4%) adopted e-commerce in their business and categorized it more as marketing (66.7%) or organizational innovation (62.4%). Adoption had positive and significant on performance. The study established that e-commerce adoption improves firm performance; however SSEs still lags in their level of adoption. There is therefore the need for SSEs to be sensitized to enhance total institutionalization of e-commerce.
Keywords: microenterprises; e-commerce adoption; innovation; level of adoption; and firms’ performance.
INTERNATIONALISATION OF SMEs: DEVELOPMENT AND VALIDATION OF A MULTI-DIMENSIONAL MEASUREMENT SCALE.
by Ishaq Ahmad Dar, Mridula Mishra
Abstract: The purpose of this study is to develop a multi-dimensional measure for Internationalisation of Small and Medium Enterprises. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) was used on primary data collected from Indian SMEs. The developed measure was tested for reliability and validity. We found that Degree or Extent, Speed, and Scope are the three dimensions of Internationalisation for SMEs, and also found them reliable and valid to measure this construct. Results of this study contradict with some past studies which supported Internationalisation of SMEs being a uni-dimensional construct. But, results are also supported by some previous studies,for claiming Internationalisation of SMEs being a Multi-dimensional construct. This study will imply to practitioners in assessment of Internationalisation in their SMEs, related to degree, speed and scope. To policy makers, for analysis of Government policies for Internationalisation of SMEs. Objectives of policies and programes to promote Internationalisation in SMEs can be set accordingly. In addition, International Entrepreneurship researchers can use this measure to further study and investigate Internationalisation of SMEs. This study provides a ground for future to add more dimensions to the Internationalisation construct.
Keywords: Internationalisation; SMEs; Construct; Degree; Speed; Scope; Scale; Measure; Dimensions; Model.
Innovation and the Export Performance of Firms in Transition Economies: the Relevance of the Business Environment and the Stage of Transition
by Fisnik Reçica, Iraj Hashi, Ian Jackson, Besnik A. Krasniqi
Abstract: This paper investigates the impact of product and process innovation on firms export performance in Transition Economies (TEs) which embarked on a systemic change from a planned to a market economy in the early 1990s. The research builds on the technology gap theory and the analysis of the self-selection of firms into the export market. Unlike other studies that have focused on the export behaviour of firms in developed economies where business environment is generally stable and favourable, the paper controls for the relevance of business environment and the stage of transition on export performance of firms. The paper uses the firm-level Business Environment and Performance Survey data undertaken by the European Bank for Reconstruction and Development in 2002, 2005 and 2008 in 29 TEs. Findings show that the impact of innovation on export performance increases with the transition reforms. Macroeconomic instability acts as a moderating factor of export performance in countries at high transition stage, as it pushes firms to export more, as a risk shifting mechanism. The main implication of the study is that the impact of some explanatory factors on export performance differs through the stages of transition.
Keywords: export performance; innovation; transition stage; quality of institutions.
Dual Environments of Home and Host Countries of Diasporic Transnational Entrepreneurs: An Empirical Study in the Canadian context
by Jean-Marie Nkongolo-Bakenda, Elie Virgile Chrysostome
Abstract: This study determines the relative importance of business environment factors perceived by the Canadian Diasporic Transnational Entrepreneurs (DTEs) as affecting the success of their foreign activities in the host and home countries. Findings indicate that in the home countries, government regulations and lack of human and financial resources were the most determinant impeding factors while welcoming attitude of local rulers was the most determinant facilitating factor. In the host country, tolerance, openness, recognition and validation of credentials from the home country, and government services for immigrants were found as the most significant factors that facilitate the start-up and development of diasporic transnational entrepreneurship. The lack of these factors impedes the start-up and development of diasporic transnational activities.
Overall, depending on the indicator used for internationalization, up to 30% of the variations in the international activities of DTEs are attributed to the dual business environments.
Keywords: Diaspora – Entrepreneurship – Internationalisation – Transnational - Immigrant.
Empirical analysis of Women Entrepreneurs and their Success Perception
by Nidhi Tiwari, Geetika Goel
Abstract: Success is measured in several ways, especially the success of a business enterprise. Present paper has taken up perceptual measure of success. Nine success factors are identified on basis of past researches and women entrepreneurs perception on these factors is measured with the help of primary survey conducted on all the registered women owned enterprises in the northern state of India. Entrepreneurs background characteristics and enterprise characteristics are considered to assess whether they have an impact on the success perception of the entrepreneurs. The study shows that family size, education, firms size and age have impact on success perception of women entrepreneurs. The major contribution of the paper is that the background of entrepreneur as well as enterprise are studied together to assess their impact on success perception.
Keywords: success perception; education; family size; firm size; firm’s age.
The relationship between women entrepreneurship practice, ICT adoption, and business performance in Malaysia and Indonesia
by Sharon Yong Yee Ong, Nurul Fadly Habidin, Mad Ithnin Salleh, Nursyazwani Mohd Fuzi
Abstract: This paper highlights the specific variables of women entrepreneurship for women in Malaysia and Indonesia. An interdisciplinary literature review result in identification of previous studies suggesting positive relationship between women entrepreneurship practice, ICT adoption and business performance. A conceptual framework is then developed, the concept of six WEP dimension (entrepreneurial traits, entrepreneurial experience, management skill, customer relation, training and education and environment); two ICT adoption dimension (e-commerce and m-commerce); and two BP measures (financial performance and non-financial performance). The conceptual framework linked different constructs from empirical study in the literature to the explanatory variable relative to women entrepreneur in Malaysia and Indonesia. The implication of this study is expected to highlighting the importance of WEP and the role of ICT adoption for BP and clarifies which practices approaches are valuable. In future, a research model will be developed by testing the proposed conceptual framework using Structural Equation Modelling (SEM).
Keywords: Gender; women entrepreneurship practices; business performance; ICT adoption; entrepreneurial traits; entrepreneurial experience; management skill; customer relation; training and education; environment.
Impact of Micro-Credit Financing on Women Empowerment and Poverty Eradication: An Empirical Evidence from Pakistan
by Omar Masood, Kiran Javaria
Abstract: Abstract: The present study investigate the Micro credit financing (MF) policies implication in developing nation Pakistan. The gaps in literature warrant research on the impact of MF on poverty eradication (PE) and women empowerment (WE) in Pakistan. The data was collected, from Micro credit financing participants and a control group of non-participants, through cluster sampling technique. The study produced an MF model comprising significant constructs MFP, PE and WE. The research reveals that participation in micro-credit finance program eradicates poverty in Pakistan. Participation in MFP also empowers women in Pakistan through poverty eradication. However, the study found that MFPs are not lending to the poorest of the poor. In addition, MFP produces greater social-acceptance, awareness and involvement of women in decision making; and greater control of women over money/assets in Pakistan. Study results are helpful for policy makers so that they can use effective policies in order to eradicate the poverty and unemployment from society.
Keywords: Micro-credit finance; women empowerment; poverty eradication; micro-credit finance program; social-acceptance; involvement; decision making.
Factors driving the share and growth of Chinese entrepreneurship in Italy
by Roberta Apa, Ivan De Noni, Andrea Ganzaroli
Abstract: Chinese entrepreneurship may represent an important growth lever for a manufacturing country like Italy. Chinese are both, one of the fast growing ethnic communities in Europe and one of the most entrepreneurial. The development of ethnic enclave further contributes to support the increasing role of migrant entrepreneurship on local development. In the last decade, Chinese community is expanding at regional level and its entrepreneurial attitude is strongly increasing compared to natives in despite of economic crisis. However, since Chinese entrepreneurs are not homogeneously distributed, looking at spatial and industrial dependence is crucial to better understand the Chinese entrepreneurship growth strategies and to suggest policies supporting and exploiting local network externalities potentially influencing the regional development. In this perspective, this study focuses on the role of Chinese community size and its capacity to stimulate entrepreneurial specialisation rather than diversification across industries as well as the industrial specialisation of the local system in driving the share and growth rate of Chinese micro-entrepreneurship.
Keywords: ethnic entrepreneurship; entrepreneurial diversification; local specialisation; Chinese community; growth strategy; Italy.
"From Guanxi to WeChat?" New Social Networking Technologies and Digital Entrepreneurship in Beijing
by Birte Hansen
Abstract: This paper explores how digital entrepreneurs utilise social networking technologies to develop and maintain networks in an increasingly digital environment. Despite the growing relevance and use of social networking technologies in entrepreneurship, few studies investigate the impact and outcome of social networking technologies in entrepreneurial processes. This paper addresses this research gap and explores the silent revolution instigated by new technological developments on contemporary networking practices. The paper is based on a case study involving 20 Beijing based digital entrepreneurs and presents empirical data contributing to the intersection of entrepreneurship and networking in the digital age. The paper applies a theoretical framework combining entrepreneurship and network theory, and offers new theoretical directions suited to explore networking in the digital dimension. The paper finds that WeChat, the Swissknife of social media, provide entrepreneurs with new diverse channels of networking, in practice diminishing traditional restraints for networking. The paper offers advanced insights to contemporary entrepreneurship and networking in the digital era, a field in need of future attention and extensive research.
Keywords: Digital entrepreneurship; social networking technology; networks; guanxi; strong ties; weak ties; latent ties; WeChat; China; Beijing.
Does gender matter in credit denial among small and medium scale enterprises in Ghana?
by SAMUEL TAWIAH BAIDOO, Daniel Sakyi, Jacob Benson Aidoo
Abstract: The role played by small and medium scale enterprises (SMEs) in employment creation, economic growth and poverty reduction of the developing world cannot be overemphasised. However, the ability of these enterprises to access credit in order to expand their businesses has for years remain a key challenge. Past studies on credit denial among SMEs have emphasised firms characteristics with little emphasis on firm owners characteristics such as gender. The present study revisits previous studies and provide evidence supporting our hypothesis that gender matters in credit denial among SMEs. The study relies mainly on primary data and applies the binary probit estimation technique to the dataset. The study reveals among others that owners of small and medium scale enterprises who are females are less likely to be denied credit. Given the findings, recommendations and relevant policy implications are provided.
Keywords: Gender; entrepreneurship; small-and-medium-scale enterprises; credit denial; probit regression; Ghana.
A gender analysis of micro-entrepreneurship in developing-transition countries: insights from Botswana
by Daniel Mmereki
Abstract: Policy-makers and members of the donor community have acknowledged the importance of micro-enterprises to livelihoods in developing countries. Their contribution to household income is significant to the extent that in some developing countries it exceeds that of the formal sector. However, the dearth of information regarding the ways in which male-owned and female-owned micro-enterprises grow and change over time is becoming a major academic and policy concern. Using Botswana as the case study country, this paper presents a qualitative analysis of microenterprises in developing countries, using data collected on issues of source of start-up capital, perceived growth, and the dynamics of household decision making in the informal sector. A number of challenges were identified including inadequacy of policy support on micro-enterprises, the gap between male and female-owned entrepreneurs in terms of perceived growth of their operational units and inadequacy of programs for start-up of micro-enterprises. Comparatively, female-owned micro-enterprises were faced with a myriad of more challenges than male-owned micro-enterprises. The outputs are particularly useful to support decision makers, and focus on enhancing empowerment and awareness on available support programs to female entrepreneurs for employment creation in specific locations.
Keywords: Male-owned micro-enterprise; female-owned micro-enterprises; growth rate; performance; policy support.
SMEs in Mauritius: Economic Growth, Employment and Entrepreneurial Culture
by Randhir Roopchund
Abstract: The present research seeks to analyse the contribution of SMEs to the Mauritian economy. There are around 124, 000 SMEs operating in different business sectors in our economy. The Ministry of Business, Enterprise and Co-operatives of Mauritius launched a 10 year plan in 2016 for the Small and Medium Enterprises so as to boost up economic growth and development. The research relies on existing statistics and also makes reference to some of the government and private firms surveys carried out recently for the SME sector. The main objectives of the research are to link SME growth to macro-economic variables such as economic growth, unemployment and at the same time develop a better understanding of the causes of SME failures in Mauritius. The research also provides a description of the Mauritian entrepreneurial culture based on survey carried out by Mauritius Commercial Bank.
Keywords: SMEs; Entrepreneurship; Government; Economic Growth and Macroeconomic variables.
The influence of personality traits on social entrepreneurial intention among owners of civil society organisations in Vietnam
by Luc Phan
Abstract: The purpose of this paper investigated the relationship between personality traits on social entrepreneurial intention through determinants of planned behavioral theory. A structured questionnaire was used to collect the data. The study surveyed 503 owners of civil society organisations in South East of Vietnam. The confirm factor analysis and technique of structural equation modeling were used to explore relationships among latent constructs. The results show that commercial entrepreneurs and social entrepreneurs have similarities in character, and the personality traits of social entrepreneurs only affect the social entrepreneurial intention through subjective norms. The findings indicate that the entrepreneurship programs should aim to build a sense of social responsibility and the ability to think creatively towards sustainable development. The media should play a key role in raising citizens awareness of social entrepreneurship. This is the first social entrepreneurial intention research which targeted the owners of civil society organisations.
Keywords: social entrepreneurship; theory of planned behaviour; personality trait; social entrepreneurial intention.
The influence of length of stay on immigrant entrepreneurship
by Aissa Mosbah, Kalsom Abd Wahab, Jaithen Abdullah Al Harbi, Hassan Ghasadi Al Mahdi
Abstract: Length of stay, a concept not properly addressed in migration studies, refers to the usual period spent by an immigrant in the host country up to the moment he/she is surveyed for research purpose. This paper adopted a mix approach that blends review, synthetization and discussion of existing research to apprehend the use of this concept in the literature and draw useful insights on the extent to which it influences business establishment and performance. Our discussion concluded with the following notes: First, immigrant entrepreneurship researchers have so far favored length of stay over firm age in predicting the entrepreneurial outcomes. Second, length of stay was used in two different ways: backward and forward. Third, immigrants with short lengths of stay or short settlement intentions tend to have lower propensities for self-employment compared to their peers who have longer settlement intentions, and they are most likely to locate their businesses within their ethnic communities. In contrary, immigrants with long length of stay or long settlement intention are in better positions to understand the mainstream market, more likely to behave like natives, have higher propensities to start a business, and prefer to locate their businesses outside the co-ethnic community.
Keywords: immigrant; host country; length of stay; performance; self-employment.
Manual Labour in the Post-Industrial World: A Study on Shoe Craft in St.Petersburg, Russia
by Mikhail Sinyutin, Yuri Veselov, Ruben Karapetyan
Abstract: The article provides the results of sociological study of manual labour in St-Petersburg, Russia. It is focused on a shoemaking, a very conventional craft in the contemporary urban environment. We start with theoretical background and definitions of craft from the standpoints of economics and sociology; then, in order to reveal the impact of industrialisation on manual labour we trace the history and explain the evolution of shoemaking in Russia in the 19th and 20th centuries; next we describe in economic terms how this small business of shoemaking is organised nowadays and how it competes with the mid-size business in St. Petersburg; in the discussion we present the explanatory models of crafts reproduction in contemporary urban environment. The main idea of this article is to reveal the supporting social structures like labour migration or ethnic communities for sustainable reproduction of craft and manual labour in the post-industrial world.
Keywords: craft; shoemakers; post-industrial world; urban labour; comparative research.
Vincent van Gogh (1853-1890), innovator and entrepreneur: An experiential report of Van Gogh guides in Nuenen
by Jos Pieterse
Abstract: Primarily known as a painter, Vincent van Gogh (1853-1890) was an innovator and an entrepreneur. Researched in Nuenen, the Netherlands, this paper analyses letters of the 19th century and reports observations of modern-day Van Gogh experts as well as Vincentre guides. In addition 25 students specialising in innovation and entrepreneurship were asked to give their public voice about Van Gogh and if he could be considered as an entrepreneur. Using a questionnaire we asked both expert and non-expert respondents to make a rank order on the aspects of innovativeness (HAIRL-model) and ten characteristics of entrepreneurship. The findings of this explorative study shows that the innovative and entrepreneurial potential of Van Gogh highly reflect his imagination, creativity and analysing capabilities. Based on the amount of his drawings, paintings and letters he can also be seen as a hard worker. Taking his financial successes into account we can only say with hindsight that he was artistically far ahead and perhaps not recognized by his audience. Future research might investigate mood analysis in his letters and further explore the characteristics of innovation and entrepreneurship we used in this study. The field of artistic innovation and entrepreneurship mostly organized in small businesses can be explored in more detail.
Keywords: history of art; entrepreneurship; intrapreneurship; innovation; Vincent van Gogh; cultural studies.
Opportunities For Raising The Entrepreneurial Culture A Factor For Competitiveness Of The Bulgarian Economy
by Valentina Nikolova-Alexieva, Mina Angelova
Abstract: This paper aims to study the role of entrepreneurial culture as an essential factor to increase the creativity and innovativeness of Bulgarian entrepreneurs and hence the competitiveness of the national economy. The research is of survey-descriptive type. The population surveyed includes entrepreneurs, students and young people aged between 25 and 45 years from Plovdiv and the region, i.e. 1 200 people. Findings: The socio-historical cataclysms resulting from the particular attractiveness of the geostrategic position of the country create a very controversial and variable environment in which the Bulgarian entrepreneurial culture is formed and developed. Analysis of collected data using SPSS software along with sign test, pathway and Exploratory factor analysis indicated that among different dimensions of Bulgarian entrepreneurial culture, the dimension of independence, higher incomes, risk-taking, creativity is in a proper condition, while other dimensions of entrepreneurial culture including boldness, tolerance of creative deviation, underdog aggressiveness, open communication, cooperation, proactive innovation and voice are in an unsuitable condition.
Keywords: entrepreneurship; entrepreneurial culture; Bulgarian entrepreneurs; competitiveness.
Barriers and key success factors in the transgenerational transmission of family farm businesses in the French context: 'theory of hypertrophy vs. equilibrium of life spheres' proposition
by Lovanirina Ramboarison-Lalao, Albert Lwango, François-Régis Lenoir
Abstract: Our qualitative study explores the barriers and key success factors in the transgenerational transmission of family business farms within the French context. On the one hand, the life stories of the 26 French farm owners in our sample indicate an over-cumbersome professional sphere. This leads some farmers to neglect their personal sphere of life, which in turn has a negative impact on the potential for transmission. The single lifestyle of many French farmers today is one of the main factors compromising family farm business transmission. In addition, most farmers' children appear to want less tiresome and better paid jobs, again reducing the chances of transmission. On the other hand, our findings suggest that the more dynamic the life sphere of farmers, the greater the likelihood of family business transmission. We subsequently discuss the implications of the theory of hypertrophy vs. equilibrium of life spheres proposition derived from our insights.
Keywords: business transmission; transgenerational continuity; barriers and key success; life spheres; farmers; hypertrophy versus equilibrium.
Profiling entrepreneurial commitment across cultures: a Malaysian perspective
by Rahayu Tasnim, Nomahaza Mahadi, Harcharanjit Singh, Roselina Ahmad Saufi
Abstract: Is it true that certain cultures are known to illustrate higher levels of commitment to their businesses, hence complimented for their entrepreneurial triumph? And does this mean that certain cultures behave less committed to their businesses, occasioning lower entrepreneurial success? This pioneering study acknowledges the possibility of measuring entrepreneurial commitment, and seeks to characterise the psychological construct of 'commitment' in entrepreneurs across three major cultures in Malaysia - Malays, Chinese and Indians. The entrepreneurial commitment model was applied using the PLS-MGA approach to analyse the changes in the magnitude of commitment across all three cultures. Changes in the magnitude of affective, normative and continuous commitments were detected, portraying the uniqueness of certain components of commitment to certain cultures. A change in the magnitude of total entrepreneurial commitment was also seen, with the Chinese illustrating the highest, while both the Malays and Indians sharing similar levels. What this study puts forward signals the importance of acknowledging the fact that entrepreneurial commitment is measurable and that it can be profiled accordingly.
Keywords: entrepreneurial commitment; entrepreneurship and culture; Malaysian entrepreneurs; PLS-multi-group analysis; PLS-MGA; Malaysia.
Informal sector and urban unemployment: small businesses contribution to large livelihood improvements
by Tefera Darge Delbiso, Fekadu Nigussie Deresse, Addisalem Ambaye Tadesse, Befekadu Bezabih Kidane, Germán Guido Calfat
Abstract: Based on quantitative data collected from 450 informal sector operators and in-depth interviews with stakeholders in Hawassa City, Ethiopia, this study assesses the improvement in the livelihood of informal sector operators. Our findings show that the majority of operators (about 90%) have improved their livelihood. Operators who are native, educated, experienced, profitable, and economical are more likely to improve their livelihood than their counterparts. However, operators face challenges such as a shortage of working capital, lack of working premises, shortage of raw materials, and narrow local market base. Given the considerable impact of the informal sector on the livelihood of the operators, the government needs to seriously consider the role of the informal sector in combating growing urban unemployment.
Keywords: informal sector; livelihood improvement; small business; urban unemployment; Ethiopia.
Entrepreneurship policy in Brazil: its focus and gaps
by Cândido Borges, Éder Danilo Bezerra, Glessia Silva, Tales Andreassi, Vicente Da Rocha Ferreira
Abstract: This article presents an overview of public entrepreneurship policies in Brazil, and categorises them according to a model with eight types of entrepreneurship policy. In doing so, documents on public entrepreneurship policies on the websites of the 39 ministries, departments and agencies of the federal government were consulted. The results showed that public entrepreneurship policies in Brazil focus more on maintaining existing businesses, with finance policies and support for entrepreneurial, technological and innovation policies. However, few policies directly contribute to increasing the number of entrepreneurs in Brazil. These would include policies for the reduction of entry and exit barriers and policies on improving public infrastructure. It was also found that there are few policies on the promotion of entrepreneurship culture and education, which are essential if entrepreneurship is to be seen by more people as a career option.
Keywords: public policy; entrepreneurship; entrepreneurship policy; small businesses; small- and medium-sized enterprises; SMEs; Brazil.
The succession process from the perspective of financial institutions: a focused view on external vs. internal succession
by Mario Situm, Stefan Märk
Abstract: Financial institutions remain the backbone of the European financial market. Their core business is the receipt of compensation for lending money to companies. However, the decision to lend is not the result of a simple process. Different types of risk have to be considered, in particular for family businesses. This paper approaches analysis of this topic in an interesting new way: combining aspects of financial theory and associated risks with the various types of internal and external succession. Financial institutions were asked to share their preferences concerning internal and external succession across a range of different associated issues. This paper provides the results of this financial institution survey as well as a comparison to existing literature. It also includes the applied combination of crises in family businesses with their succession process, moving towards an idea to determine an optimal moment for succession. Indeed, this optimal moment could be connected to recognised financial theories currently in existence.
Keywords: financial institutions; management buy-out/management buy-in; MBO/MBI; family business; succession process.
Comparative analysis of managerial and entrepreneurial firms of Nigeria using entrepreneurship and knowledge capital
by Mbonu Chikwelu, Hari Shanker Shyam, Milindo Chakrabarti
Abstract: The shift from the managed to entrepreneurial economy in the developed western economies featured the importance of small entrepreneurial firms in economic growth. The entrepreneurial economy featured the relevance of knowledge capital and entrepreneurship capital at both the micro and macro levels of the economy as the most innovative countries and industries are the ones with greatest investment in research and development. It becomes imperative to observe these variables at the firm level in a developing country like Nigeria that is searching for solution for economic diversification. Developing countries features a mix managed entrepreneurial model showing that both large managerial and small entrepreneurial firms are relevant to the economy. Questionnaire and unstructured interview were used to gather data from the two types of firms. The data were analysed using Excel and SPSS software and the hypotheses tested with T-test. The result reveals that the small entrepreneurial firms have fared better than the large managerial firms and so are the hope of country's potential for economic diversification and economic democracy. Triple helix approach is bound to increase the levels of knowledge and entrepreneurship capital in these firms.
Keywords: managerial firms; entrepreneurial firms; knowledge capital; entrepreneurship capital; economic diversification; Nigeria.
The nexus between entrepreneur skills and successful business: a decompositional analysis
by Naziruddin Abdullah, Noor Ul Hadi, Léo-Paul Dana
Abstract: Entrepreneurship, which then began as a concept in 1700s, has now become a buzzword. Specifically, the concept has been practically spread over all sectors of the economy, and across countries and regions; Pakistan is not an exception. Today, although the notion of entrepreneurship is more or less understandable, the measurement is not. Equally true, what impact the entrepreneurship skills has on business success is not widely known, let alone empirically measured. It is for this reason the present study is conducted. The results obtained in this study lead to a number of implications; policy, theoretical and empirical. In relation to policy, marble manufacturing units depend on entrepreneur skills; top among which is the resiliency skill. Second, in reference to theoretical and empirical, the results of this study have contributed to the advancement of theory and understanding of entrepreneurship, as well as provided empirical evidence to support the theory at large.
Keywords: marble manufacturing industry; Pakistan; entrepreneur skills; success.
Special Issue on: Innovation in the Wine Industry
by Dean McCorkle, Rebekka Dudensing, Dan Hanselka, Ed Hellman
Abstract: The motivation for this study centres on the labour-and cost-intensive nature of wine grape production and the potential opportunities for robotic technology. The objectives of this study are to develop cost of production budgets for five representative wine grape vineyards in four U.S.A. states, assess the economic viability of wine grape production under current operating conditions, evaluate labour costs by production task, and identify common production challenges and tasks that could be augmented with robotic technology development. Investigators have worked with grower panels to develop a production budget for representative vineyards in four states, and to gather input on production tasks that the growers and technology developers feel would be most suitable for robotic technology. A stochastic simulation model was developed to assess baseline pro-forma financial statements for each vineyard size. Combined, the results help in exploring opportunities to strengthen vineyard profitability and competitiveness using robotics.
Keywords: Wine Grapes; Robotic; Technology; Stochastic; Monte Carol; Simulation; Labour; Empirical Distribution; Financial Statements; Precision Mechanization.
Innovation developments in the wine industry: a journey from the amphorae of old to the California wine cluster
by Julien Granata, Beysül Aytac, David Roubaud
LINKING BRANDING STRATEGY TO OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE AND STABILITY: CASE OF FRENCH WINE COOPERATIVES
by Sandra Challita, Philippe Aurier, Patrick Sentis
Abstract: This research explores the relationship between the branding and financial performance of a firm while taking into account its ownership structure. Using decisional theory, we apply a normative approach to better explain the incentives and constraints of branding in two types of firms: cooperatives and investor-owned firms (IOFs). We then perform a quantitative analysis using a survey of 207 French firms in the wine sector and financial information data. We show that cooperatives are more constrained to private branding. As a consequence, they invest more in labelling, whereas IOFs are more likely to invest in private branding. Additionally, we find that branded (private and labelling) firms have poorer financial and commercial performance, as measured by return on assets and return on sales ratios, respectively. Finally, we find that the main factor contributing to the stability of financial performance is a cooperative ownership structure rather than the branding strategy.
Keywords: Branding; Financial Performance; Cooperatives; Decision Theory; Wine Industry.
Co-creating a wine: A dyadic approach to consumer experiential value and SME value creation
by Karine Garcia, Philippe Aurier, Angélique Rodhain
Abstract: Consumer and firm involvement in co-creation processes has been attracting scholarly attention. Nevertheless, few studies have focused on co-creation between customers and SMEs. We therefore investigated a single case of a wine collectively co-created through interactions on a French winemakers blog between the winemaker and twenty-five participants.
Our study sought to determine how the winemaker and customers engaged in the co-creation process and the value they derived from this experience. From a consumer perspective, our research highlights the perceived ethical value through the participants engagement at multiple levels. From a managerial perspective, this study demonstrates that customer involvement can be an effective strategy for implementing innovation at a relational and experiential level in an SME context.
Keywords: co-creation process; value; innovation; relationships; wine; SME; collective; experiential value; consumer ethical value.
Innovation in Wine Closure Packaging: The Case of Diam
by Emilie Darroman, Călin Gurău, Cyrille Mandou
Abstract: Using a case study methodology, this paper presents the company Diam, which is one of the leaders on the market for wine bottle closures, both in France and internationally. The strategic approach to the market realities, expressed through the specific needs of wine producers, retailers and customers in terms of permeability, neutrality and sustainability, is characterised by a deeply embedded integration and complementarity between the market and the innovation orientation of the firm. The capacity of the firm to develop and apply new technological improvements, supported by a strong policy of intellectual property protection, and an active strategy of marketing communications, represents an illustration of the successful application of various levers of managerial actions to enhance the performance and the market reputation of both the product offering and of the firm as a whole.
Keywords: Innovation orientation; market orientation; levers of managerial action; wine closures; cases study.
Can crowdfunding promote innovation in the wine industry?
by Nirjhar Nigam, Sondes Mbarek, Cristiane Benetti
Abstract: In this paper we study 3 leading crowdfunding platforms, specific to the wine industry, and analyse how these platforms have opened up new channels of innovation in wine industry, in meeting financing needs and in promoting consumer-winemaker engagement. The platforms are: Cruzu from the United States, Fundovino from France and Naked Wines headquartered in United Kingdom. We also study the challenges wine makers face, and how crowdfunding helps mitigate these issues. We observe that crowdfunding can be a viable means to bridge the financing obstacle which exists for bootstrapped projects or those which were unable to obtain support from the traditional financing sources such as the banks. We manually collect data from these platforms in order to highlight how innovations have been fostered via crowdfunding. We further demonstrate that improved engagement levels between consumers and producers, creates a win-win scenario for everyone.
Keywords: Wine industry; innovation; crowdfunding; financing; donation based model; reward based model; wine ratings; wine spectator rating; Robert Parker Rating; marketing; promotion; consumer engagement; innovation technologyrn.
Special Issue on: Management Innovation
Integrated software deployment and Management innovation: a bricolage perspective
by Anass Mawadia, Ariel Eggrickx, Philippe Chapellier
Abstract: This paper examines the relationship between management innovation (MI) and ERP (Enterprise Resource Planning) systems deployment in the context of small subsidiaries of an Intermediate Size Enterprise (ISE). In these small enterprises, embedded locally, the resources are limited and the necessity of doing with the means at hand while respecting the rules and directives of the group is important. The results of our intervention research show the existence of several forms and practices of bricolage (tinkering) present at several levels: intra-affiliates, inter-affiliates and group. This research shows the complementarity between both technology innovation (TI) and MI which lead to continuously improve the technology and management practices. The MI and TI co-evolution within the ISE and its subsidiaries, stimulated by the multilevel bricolage approach, allows the continuous improvement of the core model and generates a competitive advantage.
Keywords: Management innovation; Technology innovation; Small Subsidiaries; ISE context; ERP deployment; Bricolage; Co-evolution; Core model.
The Generation of Management Innovation in Microentreprises: Absorptive Capacity and Entrepreneur-CPAs relationship
by Agnès Mazars-Chapelon, Philippe Chapellier, Sophie Mignon
Abstract: In microentreprises, considering the management knowledge basis of the entrepreneur, the generation of management innovation (MI) is a crucial question. In this qualitative case study of a microentreprise, we follow Mol and Birkinshaw (2014) who claimed for research on management innovation generation, highlighting how relations with external and internal partners can deliver knowledge (2009). We focus on the entrepreneur-CPA relationship to study how the relationship between the CPA as an external change actor and the entrepreneur as an internal change actor can be a lever of MI generation in microentreprises. More particularly, we aim at understanding how the external CPAs knowledge can be internalized by the entrepreneur in microentreprises through the acquisition, assimilation, transformation and exploitation of knowledge. And more particularly, we propose to highlight the key drivers of the generation of management innovation in microentreprises through the study of the process by which a potential ACAP becomes realized (Cohen and Levinthal, 1990; Lane et al., 2006; Gebauer et al., 2012; Marabelli and Newell, 2014).
Keywords: Management innovation; Absorptive capacity; Microentreprise; Relationship; CPA; Entrepreneur.
Categorising the Internationalisation of SMEs with Social Network Analysis.
by Cláudia Ribau, António Moreira, Mário Raposo
Abstract: This paper analyses the internationalisation of SMEs highlighting the importance of social network analysis (SNA) to display the main categories involved in SME internationalisation research. Methodologically, the paper uses a systematic review of the literature as a departure point to select the main papers on the internationalisation of SMEs and uses SNA to illustrate the main categories that have been used by researchers to identify how sectoral studies (manufacturing vs service firms and single vs multiple industry) have evolved and to identify the geographical origins of the papers carried out on SME internationalisation. This study is useful for researchers and academic community alike as it embeds the three main categories found (internationalisation theories, international strategy and performance) using SNA methodology.
Keywords: SME; Internationalisation; Literature review; Social Network Analysis.
Understanding the international strategic alliances of SMEs: A case-study approach
by Rohit Prabhudesai, Ch. V. V. S. N. V. Prasad
Abstract: As the foreign firms and local SMEs in a market differ in their resources and sizes, the dynamics of strategic alliances formed between them are markedly different from the other types of cooperative ventures. Despite this, the extant literature has largely ignored the domain of SME international alliances and has focused mainly on the international alliances of large firms. The objective of this paper is to bridge this theoretical gap and provide integrated insights on the three domains of SME international alliances- formation, management and performance outcomes. To do so, the authors undertake case studies of four Indian SMEs in the manufacturing sector which have formed international alliances. Findings indicate that SMEs exhibit similarity across the three domains in their international alliances. The paper provides important research as well as practical implications.
Keywords: Strategic alliance; international strategic alliance; Small and medium enterprise alliance; SME Alliance; SME international alliance; SME governance; trust; commitment; SME performance.
Entrepreneurship: An insomniac discipline? An empirical study on SME owners/directors
by Florence Guiliani, Olivier Torrès
Abstract: The aim of this article is to highlight an area rarely addressed: the sleep patterns of SME owners. We are all aware of the importance of sleep for ones health, but sleep remains an under-investigated subject. The sleep patterns of SME owners/directors and their impact on alertness are therefore worthy of investigation. We draw on three complementary sleep assessment tools: the Pittsburgh Sleep Quality Index, the Epworth Sleepiness Scale and the Fatigue Severity Scale. We reveal our initial results based on these tools and emphasize the need to go further by comparing these tools to problems rooted in entrepreneurship.
Keywords: Small and medium enterprises; owners/directors; sleep patterns.
Growth Constraints and Management Consulting: the Case of SMEs in Peripheral Regions
by Yanay Farja, Eli Gimmon, Zeev Greenberg
Abstract: This study explores the factors that cause differences in employment growth between young SMEs in core urban and peripheral regions and whether the uneven distribution of resources requires peripheral firms to draw on management consulting to achieve growth. We applied a mixed methods approach that included a quantitative study of 155 Israeli new ventures and 10 in-depth interviews with experts from academia and experienced practitioners. Regression analysis results show that management consulting was beneficial for SMEs growth only for those located in peripheral regions. SMEs funded by money from family members grew less than the other firms. The economic development of peripheral areas needs to be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.
Keywords: Peripheral development; firm growth; Management consulting; early-stage financing; SMEs.
The concept of management innovation: definition, state of the art and future research avenues
by Frederic Le Roy, Marc Robert, Philippe Giuliani
Abstract: The invention, implementation and diffusion of management innovation is a new research area. This paper identifies the main steps of development of this concept. By analyzing the specificity of management innovation against other kinds of innovation, the authors adopt a historical overview to describe the slow recognition of this concept in the literature. They also identify the main drivers of management innovation, its impact on firm performance, question its role and determinants in non-profit organizations. This paper provide also instances from recent management practices within contemporary organizations.
Keywords: Management innovation; Invention; Drivers; Implementation; Non-profit organization; Futures research.
Special Issue on: Entrepreneurship, Migration, and Family in Peripheral Contexts - Avenues for Growth and Internationalisation
Transnational intrapreneurship: Opportunity development in transnational teams in the Nordic periphery
by Maria Elo, Zsuzsanna Vincze
Abstract: Transnational resources of entrepreneurs and employees foster firms competiveness. Firm competitiveness, especially the knowledge intensive business, is linked to its talent base and embeddedness in international networks providing business opportunities. However, in peripheral regions it is challenging to capitalise on international talent. This single case study describes an enterprise in Northern Sweden, which is strategically employing transnational diaspora resources and foreign STEM-talent as transnational intrapreneurs developing the business. The study contributes to international opportunity development and transnational diaspora research and illustrates how the creation of a transnational work-scape may compensate locational disadvantages and enable access to new opportunities and ideas.
Keywords: Intrapreneurship; transnational resources; diaspora; network; opportunity; innovation.
Social Ties, Prior Experience, and Venture Creation by Transnational Entrepreneurs
by Sarika Pruthi, Mike Wright
Abstract: The interaction between resources, and host and home country contexts of migrant entrepreneurs, is important for understanding their strategies and hence performance of their ventures. Yet, how they deploy their unique experiences and social networks in the founding of ventures in multiple institutional contexts is less understood. Based on 15 case studies (24 in-depth interviews) of transnational entrepreneurs (TEs) of Indian origin in the UK, we explore the use of personal and industry ties in the founding of transnational ventures (TNVs) in their home country. Our findings show that the way TEs use personal and industry ties in the host and home countries is contingent on whether they have prior experience of a) entering the home country and b) implementing the business opportunity underlying the TNV in the home country, respectively, with a former employer. The implications of these findings are discussed.
Keywords: Social ties; venture creation; transnational entrepreneurs; UK; India.
Linking Periphery with Centre: The liability and usefulness of returnee entrepreneurial firm in home country context
by Wensong Bai
Abstract: Returnee entrepreneurship has received increasing attention because of its characteristics of innovation, international orientation and performance advantage, but understanding of how returnee entrepreneurial firms achieve desirable entrepreneurial goals in home country context is limited. Drawing on literature on the centre-peripheral dichotomy in international scientific community, this paper attempts to investigate context constraints that influence returnee entrepreneurial firms innovation and entrepreneurship performance in the home country and to explain how firms deal with these constraints. Based on a longitudinal case study that investigates a successful returnee entrepreneurial firm from China, research findings show that the returnee entrepreneurial firm is able to overcome its peripheral research condition by developing international network connections with researchers at the centre of the international scientific community. However, the firm may not be able to properly respond to the regulatory regime constraints without having a good understanding of the home country and making re-adjustments accordingly. Hence, this study presents a discussion of the usefulness and liability of returnee entrepreneurial firms that influence their entrepreneurship process and performance in the home country.
Keywords: Returnee entrepreneurship; peripheral context; context constraints; international network connections; re-adjustment.
The immigrant effect from employer and employee perspectives in a Swedish context
by Heléne Lundberg, Anneli Rehnfors
Abstract: This explorative study addresses the immigrant effect. Not only is the employer perspective considered, but employed immigrants also share their experiences. We report a multi-case comparative study of two immigrant-employing SMEs in Vasternorrland, a peripheral and sparsely populated region located in Mid Sweden, in northern Europe. The employment of immigrants reportedly had several advantages as well as disadvantages. Both employers and immigrant employees agreed that the immigrants language and cultural competences reduced psychic distances between the company and the export market represented by the immigrants country of origin. Employers reported a generally increased awareness of psychic distance among markets resulting from the employment of immigrants, though employing immigrants resulted in increased psychic distance within the companies.
Keywords: immigrant effect; immigrants; export; internationalization; psychic distance; SME; language; culture.
The Role of Diaspora Entrepreneurs in Start-up Ecosystem Development A Berlin Case Study
by Thomas Baron, Aki Harima
Abstract: Start-up Ecosystem has reached great attention in the recent research. Understanding how dynamic ecosystems develop has become of major interest for policy makers due to a potential regional economic well-being. In this study, we explore how the uniqueness of diaspora entrepreneurs may contribute to the development of a successful start-up ecosystem. Based on a case study conducted in Berlin, we analyse the role of diaspora entrepreneurs in ecosystem development with a conceptual framework developed from Austrian capital theory. The empirical findings show that diasporans are an auspicious co-creator for Berlins ecosystem development as they enrich the supportive environment with diverse resources that local entrepreneurs cannot provide. We found that diasporans in Berlin reinforce the ecosystems capitals and act as important interweavers of such capitals to the unique and successful structure of Berlins start-up ecosystem.
Keywords: Start-up Ecosystem; Berlin; Diaspora Entrepreneurship; bi-focality; mixed embeddedness.
From the Periphery to the Centre: Start-up and Growth Strategies for Minority Diaspora Entrepreneurs
by Indianna Minto-Coy
Abstract: Not all diasporans face the same opportunities and challenges in the entrepreneurial process. Some are forced to the periphery in terms of proximity to essential business resources and networks considered important for overcoming liabilities of foreignness, size and newness. The paper, therefore asks: how do diaspora entrepreneurs from the periphery and non-mainstream markets emerge, survive and grow? The question is addressed through the lens of social network theory and a case study of Golden Krust Caribbean Bakery and Grill (GK), the largest Caribbean eatery in the US and its CEO and founder the Jamaican-born Lowell Hawthorne. The article underscores the role of family, co-ethnic networks as well as the cultural knowledge and resources from the country of origin in helping entrepreneurs from the periphery to start, grow and mainstream their enterprises.
Keywords: Diaspora; Family; transnational; Entrepreneurship; Caribbean; Growth; Golden Krust Pastry; Networks; co-ethnics; start-up.
The role of family social capital in immigrants entrepreneurial opportunity creation processes
by Quang EvansLuong, Marcela Ramirez-Pasillas
Abstract: This paper conducts an inductive case study to build a theory on the role of family in both the host and home countries in immigrant entrepreneurs attempts at creating entrepreneurial opportunities. We used the perspectives of the opportunity creation process and family social capital. We relied on data collected from four cases of immigrant entrepreneurs from Lebanon, Syria, Cameroon and Mexico who have established businesses in Sweden. The paper identified three sources of family social capital: family duties, family trust and family support as being relevant for creating opportunities. While family duties triggered the process of forming an entrepreneurial idea, this process was advanced by the existence of family trust. Family support was then the building block for launching an entrepreneurial idea. By identifying these three sources of family social capital we show that families in the host and home countries contribute to immigrant entrepreneurs opportunity creation in different ways.
Keywords: Immigrant entrepreneurship; opportunity creation; family social capital; entrepreneurial ideas; home country; host country; family duty; family trust.
Practices in operating a small business in a host community: a social capital perspective of Chinese immigrant entrepreneurship within the South Africa business context
by Tinashe Ndoro, Lynette Louw, MacDonald Kanyangale
Abstract: This study explores how Chinese immigrant entrepreneurs who own small retail businesses in the Eastern Cape province of South Africa draw from their social capital to operate their small businesses. The study followed a qualitative research design in which 21 in-depth interviews were conducted. The findings show that the Chinese immigrant entrepreneurs used on different forms social capital to operate their small retail businesses in the host business environment. Drawing from their social capital, the Chinese immigrant entrepreneurs were able to respond to opportunities and challenges in the host business environment. Social capital embedded in relationships and networks between the Chinese immigrant entrepreneurs and different stakeholders was central to the operations of the small retail businesses.
Keywords: small and medium-sized enterprises; immigrant entrepreneurship; social capital; networks; qualitative; Chinese; South Africa.
Refugee entrepreneurship: taking a social network view on immigrants with refugee background starting transnational business in Sweden
by Susanne Sandberg, Rebecca Immonen, Sara Kok
Abstract: The global world of today is characterized by movement, both voluntarily and forced. Despite the current situation, few studies have focused on refugees and their entrepreneurial activities. The research question is: how do immigrant entrepreneurs with a refugee background start and run transnational business in their country of residence? The purposes of the paper are (1) to identify the characteristics of the refugee entrepreneur and (2) to examine how the social network is utilized for starting up and running the business. Through this, the scarce understanding of refugee entrepreneurial activities will be enhanced and particular traits of refugee entrepreneurship can be determined. Four cases of immigrant entrepreneurs with a refugee background who conduct business with transnational characteristics have been studied. Consequently, contributions of both theoretical development, integrating refugee entrepreneurship into the field of international business, as well as novel empirical contributions through a less-studied angle on refugee entrepreneurship, are made.
Keywords: Refugee; immigration; diaspora; transnational; international; entrepreneurship; social network; social capital; human capital.
Special Issue on: 16th ISS Conference Schumpeterian Perspectives on Entrepreneurship
Profitable Growth Through International High-Technology Product and Market Development
by Sophie Veilleux, Nancy Haskell, Donald Béliveau
Abstract: This article seeks to answer the following question: how do firms adapt their technological innovations in a way that sustains profitable growth in global markets? The context examined is small and medium high-technology firms as they face the challenges of being young firms that must serve global markets with their limited resources. A multi-case exploratory study captures the product and market development processes during two phases of the growth cycle. The comparison of five start-up firms and five growth firms from Quebec Citys photonics cluster (Canada) points to an error frequently made by start-up firms: spending too much time and money creating or adapting products for each initial customer. Growth firms, on the other hand, have built product platforms that respond to basic client needs. The results confirm the strategic role of mass customisation.
Keywords: technological innovation; mass customisation; platform; internationalisation; growth; adaptation; product development; market development; small- and medium-size firms; product family architecture.
A Comparison of the Performance of Majority Female-Owned and Majority Male-Owned Small and Medium-Sized Enterprises.
by Julio Miguel Rosa, Daouda Sylla
Abstract: This paper examines the impact of majority gender ownership on the following measures of enterprise performance: sales per employee, profit per employee, employment, innovation, ratio of authorized to requested debt financing and interest rate on debt financing. Using Statistics Canadas Survey on Financing and Growth of Small and Medium Enterprises waves of 2011 2014, as well as administrative data from Statistics Canadas Linkable File Environment, we find that gender affected all measures of enterprise performance in 2011, whereas only sales per employee and employment were affected in 2014. In 2011, majority female-owned small and medium-sized enterprises (SMEs) had lower profit per employee than majority male-owned SMEs; they were more likely to be innovative than majority male-owned SMEs; they had lower ratio of authorized to requested debt financing than majority male-owned SMEs; and they also faced higher interest rate on debt financing than majority male-owned SMEs.
Keywords: Entrepreneurship; majority gender ownership; financial constraints; firm performance.
Experiences Using a Science-Based Lean LaunchPad Program and Its Impact on National Innovation System Evolution
by Tim Kastelle, Sarah King, Martie-Louise Verreynne, Peter Kambouris
Abstract: Innovation drives economic growth. At the level of countries, the National Innovation System has a strong influence on the success of innovative activities within the region. However, it is often assumed that these systems evolve through policy innovation, in a top-down manner. This paper presents a case study of the introduction of a Lean LaunchPad program in Australia. It started as a small pilot, then quickly grew to become a national program. The details of this case give insight into another way that Innovation Systems evolve: through an evolutionary process of variation, selection and replication.
Keywords: Research commercialisation; lean startup; technology transfer; national innovation system.
Drones, Dangerous Animals, and Peeping Toms: Impact of Imposed vs. Organic Regulation on Entrepreneurship, Innovation, and Economic Growth
by John Chisholm
Abstract: This paper categorizes regulations of economies and societies as either imposed or organic. Imposed regulations federal, state, and local statutes, regulatory agency promulgations, and executive orders rest on top of and interact with organic regulations social customs, markets, private agreements, and common law. We show how organic regulation, with its many distributed control points (courts, markets, and individuals) and near-continuous decision making (by individuals and judges), better reflects the complex systems nature of and more closely evolves with economies and societies. Imposed regulations offer efficiencies and uniformity but their fewer control and decision points (legislatures, agencies, and officials) invite public-choice concerns unrelated or counter to public welfare. As a result, imposed regulations are more prone to error, corruption, and unintended consequences, and are less predictable long-term. Greater reliance on organic regulation correlates with greater entrepreneurship, innovation, and long-term economic growth. We consider case studies of self-driving vehicles and unmanned aerial vehicles (drones) and conclude with recommendations for regulators, lawmakers, and policy makers.
Keywords: regulation; complex systems; drones; entrepreneurship; innovation; economic growth; self-driving vehicles; unmanned aerial vehicles; technology; evolution; common law; public choice; unintended consequences; conflict resolution; regime uncertainty.
Approaching Indirectly to Complementors and Taking Neutral Position in Platform: Exploratory Research on the Progression from a Start-Up to a Platform Leader
by Yusuke Hoshino, Yoshiyuki Matsumura
Abstract: How does a small start-up become a platform leader from the viewpoint of inducing complementors? Previous researches on platform management seem to focus on platform design and the relationship between complementors and platform leaders. However, samples used in these researches are large, established leaders, and strategies for start-ups have not been studied in detail. From single case studies about the progression of a Japanese platform leader, we found that collaborations with organisations at the centre of networks are useful because (1) these collaborations provide start-ups paths to complementors, (2) these collaborations enhance the trustworthiness of start-ups and (3) the higher the number of collaborations, the more neutral the position enjoyed by platform leaders, even as start-ups.
Keywords: start-up; entrepreneur platform management; platform leader; complementor; inter-organisational relationship; neutrality; business-to-business electronic marketplace.
Human Capital in the Entrepreneurship Ecosystem
by Annemarie Østergaard, Svetla Marinova
Abstract: Since Adam Smith (1776) took consideration to human capital as an asset of economic value, academic interest has focused on the economic effects of human capital. In 1931, Schumpeter called for a focus on the individual entrepreneur or the creative destructor with his/her motives, wishes, aspirations and activities when dealing with entrepreneurship and entrepreneurs.
Along these lines, this paper focuses on an in-depth investigation of the domain of human capital in Isenbergs Entrepreneurship Ecosystem. It captures the entrepreneurial mindset of the highly complex individual as a requisite for entrepreneurial success and ultimately, for business growth and development.
The increasing literature debating human capital confirms the relevance of locating and refining the factors for entrepreneurial success. Consequently, this paper improves the roadmap of Entrepreneurship Ecosystems by adding the innate skills and conceptualizing four generic archetypes, the Local Entrepreneur, the Global Entrepreneur, the Incremental Entrepreneur, and the Radical Entrepreneur, based on the combination of short/long education and narrow/broad labour.
Keywords: Human capital; entrepreneurship ecosystem; labour experience; education; success stories; archetypes; Local Entrepreneur; Global Entrepreneur; Incremental Entrepreneur; Radical Entrepreneur.
Innovation, Networks and the Paradigm of Biofuels
by Carolina Da Silveira Bueno, Jose Maria Ferreira Jardim Da Silveira, Antonio Marcio Buainain
Abstract: The production of renewable liquid biofuels has become a reality in a number of countries around the world, some of which focus on bioethanol, others on biodiesel. The USAs participation in the biofuels market, with biomass produced from corn, has presented new issues of a social and environmental nature, generating debates and increased complexity. The motivation behind this text lies in the emergent character of technological platforms that arise from these traditional biofuel production platforms (Cheribuni et al., 2009). The intensification of scientific collaboration, the greater complexity of areas surrounding collaboration and the elevated scientific content of patents related to biofuel and bioenergy are clearly detected when network methods are applied to knowledge products. The results of this study appear to confirm this, with the production of statistical and visual representations of the quantity, scale and density of research collaborations among countries, as well as the relative intensity and the interdependency of various fields of knowledge production. The results suggest that it is possible to trace explanatory - and even predictive - relationships between the institutional character of knowledge production (the paradigm that molds the innovation trajectory) and the innovations that are being produced in the field of bioenergy, as well as the consolidation of markets of technological inputs/services. The interrelationship between the traditional and innovative sectors clearly manifests in the dominance of the patenting process, suggesting a pattern of market concentration that begins when routines monitor knowledge networks involving public and private research institutions.
Keywords: paradigm technological; innovation; networks; collaborative; bioenergy.
Female Top Management in Family Firms and Non-Family Firms: Evidence from Total Population Data
by Fredrik Andersson, Dan Johansson, Johan Karlsson, Magnus Lodefalk, Andreas Poldahl
Abstract: We exploit information on ownership, management and kinship to study the representation of women in top management teams in Swedish family and non-family firms among domiciled limited liability firms over the years 2004 to 2010. The share of female top managers is analysed across listed and non-listed firms as well as across industries. We then estimate the likelihood that a woman is elected into the top management team in family and non-family firms using a probit regression model where we control for firm- and individual-level characteristics, including the gender distribution of the firm and kinship relations to existing board members and firm owners. We find that non-listed family firms are more likely to appoint female top managers, whereas we find no differences among listed firms. Moreover, we find that the gender composition and kinship structures of firms influence the appointment of female top managers.
Keywords: female top management; family firm; family business; entrepreneurship; gender; gender equality; total population; executive board; chief executive officer; CEO; kinship.
Research on Korean Female Entrepreneurs for the Last Two Decades:
Past Trends and Future Opportunities
by Tae-Young Park
Abstract: Korean female entrepreneurs have shown a dramatic increase from both quantity and quality perspectives, and studies have been dedicated to this topic for almost 20 years. However, it is hard to find any study reviewing a large body research performed by Korean scholars for the last two decades on this topic. Therefore, this study aims at systematically reviewing previous studies in terms of three aspects: (1) bibliography; (2) methodology; and (3) research focus, uncovering major issues with Korean studies and suggesting opportunities for future research. This study also shows how Korean female entrepreneurs have grown and what their characteristics are.
Keywords: female entrepreneurs; female-owned firms; review study; South Korea.
The limited innovation of small businesses in the solar photovoltaic sector in the USA. Is Small Business Innovation Research program such a boon for US small businesses?
by Xue Han, Jorge Niosi
Special Issue on: Coordinating, Collaborating and
Co-operating for Innovative Change
Management control systems in family businesses: Do women matter? Evidence from the Italian food sector
by Elisa Truant, Laura Broccardo, Vanessa Ratten
Abstract: The aim of the project was to investigate medium-size family firms in Italy operating in the food sector, which is crucial for the national economy as it ranks second after the metal and mechanical engineering industries. Special attention was paid to whether the presence of women in top managerial positions had any significant effect on the strategic orientation of family firm (FFs), in terms of strategy formulation and implementation of management control systems. The results of empirical analysis using a sample of family businesses show that gender diversity in top managerial positions can benefit strategic orientation, as FFs are more likely to formulate and implement strategy through advanced management control tools.
Keywords: Family firms; female; gender diversity; management control systems; strategy.
Special Issue on: Immigrant, Gender, and Succession Issues in Family Firms
ENTREPRENEURIAL LEADERSHIP AND PERFORMANCE OF FEMALE-OWNED SMALL AND MEDIUM-SIZED ENTERPRISES IN GHANA
by Daniel Quaye, Isaac Mensah
Abstract: This study sought to investigate the effect of entrepreneurial leadership attributes on performance of female-owned SMEs in Ghana. This quantitative study adopts a survey research design and simple random sampling technique to select 257 female entrepreneurs in Ghana. SPSS and Structural Equation model (SEM) was used to analyze the field data. The study result shows a significant effect of female entrepreneurial leadership behavior on business performance. The paper found that innovation, proactiveness and vision significantly influence firm performance. The paper recommends that female entrepreneurs should develop self-motivating drive, improve their knowledge and skills through training and education in order to improve their innovative abilities, take calculated risk and explore more opportunities. The paper has revealed that entrepreneurial leadership is not a preserve attribute for male entrepreneurs. Again, the paper revealed clear dynamism in female entrepreneurial literature by revealing that female entrepreneurs are innovative, proactive and visionary, risk averse and less motivated.
Keywords: Entrepreneurship; SMEs; Entrepreneurial leadership; Innovativeness; Proactiveness; Female-owned Enterprise.
Family Business Learning and Performance
by Timothy Pett, James Wolff, Mark Heileman
Abstract: This research study examines the relationship of entrepreneurial orientation and learning orientation on the performance of small family businesses. It is proposed that the dimensions of entrepreneurial orientation (innovativeness, proactiveness, and risk-taking) and of learning orientation (commitment and open-mindedness) will be positively related to two dimensions of family business performance (growth and profitability). The study uses a survey method approach for data gathering to test the proposed relationships. Multiple regression analyses were employed using the performance dimensions as the dependent variables. The results suggest that in all cases, innovativeness was not found to explain either performance dimension, while the size of the family business consistently provided a reliable control measure. Furthermore, the results suggest that proactiveness and risk-taking help explain both growth and profitability, and that open-mindedness helps explain profitability. This study contributes to the developing body of small family business literature in the context of learning and performance. The paper concludes with some preliminary findings, conclusions, and recommendations for the future.
Keywords: Family business; learning; performance.
OWNER MOTIVATION IN SMALL SIZE FAMILY FARMS: INSIGHTS FROM AN EXPLORATORY STUDY ON THE ORNAMENTAL PLANT INDUSTRY
by Giuseppe Di Vita, Valeria Allegra, Manuela Pilato, Zarbà Alfonso Silvio
Abstract: Owner motivations are a relatively new area of investigation, which has seen over the last fifteen years the succession of numerous articles and studies.Therefore an in-depth study of the owner motivation can become an useful and strategic tool for improving strategies of small firm success. This case study particularly aims to analyse this phenomenon in the context of the ornamental plant sector, considering that the characteristics of this sector may be indicative of the ongoing dynamics for modern agricultural productions. The analysis was designed and planned in order to identify the owners motivations within family farm and it was conducted by segmenting the sample into two sub-samples according to a range of different production (short or long productive cycle) and economic size farm.Results allow to highlight how emotion item is particularly relevant for owners in both groups. Affective motivation is a key factors influencing the actions and business approaches of respondents. In addition inheritance is another predominant motivation among respondents that prompted the decision to become an owner. The findings also show interesting questions that could have on the potential impact about the owners decision-making. In fact, we have identified two aspects of owner action, which can be exclusively the competence of the individual (Group A), or well distinct among managerial responsible management and commitment to operational management skills and more knowledge of human resources (Group B). Despite the limit of the research, this study contributes to report the results for a specific region and a specific sector, its empirical applications could reasonably be extensible and also applicable to other similar agricultural sectors of the Mediterranean, with a high level of technological innovation and a high level of owners know-how where there remains a strong link between businesses and socio-familiar context.
Keywords: micro size farms; innovation; ownership; organization training management.
The Chinese are taking over. Chinese small entrepreneurs in the Cayo district of Belize.
by Carel Roessingh, Niek Vermeulen, David Passenier
Abstract: The transnational entrepreneurship debate discusses the economic and entrepreneurial consequences of transnational relations and trade for ethnic entrepreneurs. The multi-ethnic society of Belize is an example where transnationalism is an important factor because of its implications for the history, roots, and future of ethnic entrepreneurs. Our case study of ethnically Chinese entrepreneurs points to the shadow of ethnic entrepreneurship that is in danger of being forgotten in the more business and politically oriented discussions about transnationalism. In a national context where a discourse of Chinese transnational influence has developed, locally-based ethnically Chinese entrepreneurs appear to be subject to stereotyping and stigmatisation. Chinese entrepreneurs real embedding in transnational networks may be unclear and may be easy targets for gossip and unwarranted generalisation. We thus argue that the investigating a local, rural context may reveal the ambiguous social consequences of economic prosperity brought about by transnationalism.
Keywords: Belize; Chinese; transnationalism; ethnic entrepreneurship.
Coopetition of Small- and Medium-Sized Family Enterprises: Insights from an IT Business Network
by Johanna Gast, Andreas Kallmünzer, Sascha Kraus, Katherine Gundolf, Judith Sofia Maria Arnold
Abstract: Coopetition drives prosperity and economic development. Surprisingly, despite its relevance and the presence of family dynamics which affect business behaviour, researchers have not yet explored coopetition in small- and medium-sized family enterprises. This study seeks to advance coopetition research by analysing its application by family SMEs coopeting in a German business network in the information technology sector. We explore the nature of coopetition among family SMEs, and focus on motivational drivers to coopete and the implications of coopetition. Based on the present qualitative case study on 11 coopeting family SMEs, we discovered that coopetition among family SMEs tends to be cooperation-dominated. Moreover, the decision for and implications of coopetition seem to facilitate the family SMEs non-economic goal to safeguard their socioemotional wealth. The creation of binding social ties and the fortification of the firms long-term orientation in the form of family bonds renewal are important consequences of coopetition.
Keywords: coopetition; cooperation; family firms; family SMEs; innovation; socioemotional wealth; business network; IT sector; Germany.
Performance Implications of the Interrelationship between Risk-Taking and Family Support for Women-Owned Businesses: Evidence from South Africa
by Brownhilder Ngek Neneh
Abstract: Extant entrepreneurship literature has often accentuated the importance of understanding entrepreneurial risk preferences, as excessive or averse behaviors towards risk could significantly affect entrepreneurial outcomes. Women entrepreneurs, in particular, have been noted to be more risk averse than their male counterparts, however, little is known about how the risk-taking propensity of women entrepreneurs influences the performance of their businesses, especially in developing countries. This study made a contribution in this domain by examining the association between risk-taking propensity and the performance of women-owned businesses in a developing world context. Also, given the increasing evidence of a strong interlink between the business and family context for women entrepreneurs, this study postulated that the risk-taking to performance nexus could be moderated by family support. The findings indicated a positive association between risk-taking propensity and the performance of women-owned businesses. Moreover, this association was positively moderated by financial and emotional family support. The study makes a contribution to the current knowledge base by illustrating the interrelation between the trait approach and the family embeddedness approach on entrepreneurial outcomes for women entrepreneurs. Furthermore, the policy and practical implications of the findings are discussed.
Keywords: Risk-taking propensity; women entrepreneurs; firm performance; family support.
FAMILY BUSINESS AND SUCCESSION IN DEVELOPING ECONOMIES: THE NIGERIAN PERSPECTIVE
by Catherine Akinbami, Oluwabunmi Opeyemi Adejumo, Folashade Akinyemi, Temitope Jiboye, Joshua Obisanya
Abstract: Studies have shown that despite the enormous business activities in Nigeria, family businesses appear fragile and less successive. This incessant discontinuation of family businesses often add to the already high business failure rates in the economy. Therefore, this study is conducted to find out the reasons why family businesses in Nigeria do not thrive beyond the third and fourth generations. Using qualitative and explorative research, case studies were carried out among business owners in Ile-Ife Community, in the South Western Nigeria. Responses were analysed with Atlas.ti to bring out various thematic issues from the data collected. The results suggest that most business owners have succession plans but vary in their implementation approaches. Fundamentally, their succession plans are being affected by their family structures and successors personal interest. Also, the findings suggest that business owners who have gone beyond the first generation sustained their businesses through innovative strategies.
Keywords: Family; Business; Developing Economies; Succession; Business Owners; Generation; Sustainability; Succession Plan; Perception; Successor.
Women Entrepreneurship enticed Family Prosperity- An Empirical evaluation of performance of microenterprises under Kudumbashree mission in Kerala, India
by Shehnaz S R, Suresh Kumar
Abstract: Kudumbashree, meaning the familys prosperity, is one of the flagship programmes of the Government of Kerala, centred on woman empowerment has been successful in giving hope to millions of impoverished women and their families in Kerala. Kudumbashree considers micro enterprises as a growth engine that triggers development process. Besides improving the standard of living of the families, women empowerment can go a long way in building gender equality and social acceptance of labour in the community. This study focuses on review of the production, marketing, asset management, profitability, government support and women empowerment issues faced by the microenterprise units under Kudumbashree. The study, based on primary data obtained from 279 samples (93 each from three districts) in Kerala, the 100% literate state of India, using factor analysis revealed seven principal components that accounted for variations in performances of microenterprise units under Kudumbashree mission in Kerala.
Keywords: Kudumbashree; micro-enterprises; women empowerment; poverty alleviation; gender equality; family prosperity; financial inclusion; standard of living.
Mapping Successors Expectations: Decoding factors responsible for Effective Succession in Indian Family Businesses
by Sunil Shukla, Amit Kumar Dwivedi
Abstract: The purpose of our paper is to better understand the association between leadership succession in family owned businesses and its impact on family owned firm. In order to understand the salient features of succession and performance in Indian Family Businesses a survey on succession planning and management for Family owned businesses was done by Entrepreneurship Development Institute of India to identify expectations concerning successors (i) from the incumbent leader, (ii) from the family. This survey was conducted to determine successors future plan that are relevant for a family business to consider for planning before actual succession in business. This paper discusses the summary findings on some of the influential variables discovered during the survey. This article is also an attempt to elucidate on the process of succession in Indian family businesses and describe the magnitude of post succession impact on these firms.
Keywords: Indian Family Owned Business; Succession; Business Performance.
Effects of National Culture on Leadership Succession Planning in Small-to-Medium Scale Family Enterprises
by Kim Anne Menezes, Suku Bhaskaran, Akshay Deswal
Abstract: This article reviews leadership succession in small-to-medium scale family enterprises in India and, through amplification of the findings, the practices of small-to-medium scale family enterprises in other emerging economies. The findings reveal that succession planning and practice is influenced by cultural underpinnings such as succession being confined to male family members; successors assuming leadership because of family expectations and filial piety rather than interest and competency; non-induction of outsiders thereby limiting the opportunities to introduce greater diversity in leadership teams; business competencies being overly perceived from a business acumen and contact networks perspective; and training and development being confined to learning through shadowing incumbents. Consequently, family enterprises are unable to develop leaders with competencies to transition these enterprises to a higher growth and development trajectory. Small-scale family enterprises are not accessing market opportunities arising from the liberalisation of Indias economy and its greater integration with the global economy.
Keywords: family enterprises; leadership succession; succession planning; national culture; small-to-medium enterprises; India; emerging economies; case studies.
How do female entrepreneurs experience and cope with role Conflict in Sub-Saharan Africa (SSA): Case study from Ethiopia
by Mulu Hundera, Geert Duysters, Naude Wim
Abstract: This paper presents the experience of role conflict and consequent coping strategies used by women entrepreneurs in Sub-Saharan Africa (SSA). The data was collected from female business owners in the textile sector of Addis Ababa, Ethiopia, in multiple case studies. The results indicate that sources of role conflict for women entrepreneurs in the context studied include family, business (work), social role expectations, and personal factors. We therefore argue in this study that sources of role conflict should not be limited to those stemming from family and work, the normative focus in workfamily interface literature. In addition, we identified nine types of coping strategies (e.g., social support) that women entrepreneurs use to manage the competing time demands, behavioral expectations, and strain that arise from different sources. The importance of factors related to the nature of the role conflict (sources, types, and intensity) and choice of coping strategies vary over time depending on the business stage. The key theoretical contribution of this study lies in its development of a model of role conflict and coping strategies over time as indicated by a businesss stage. The main practical implication is that in cases where there is a shortage of resources, efforts aimed at promoting female entrepreneurship should start by examining the source of conflict and the business stage in order to have a greater impact on the role conflict and coping strategies of the women entrepreneurs.
Keywords: Business stages; Coping strategies; Role conflict; Women entrepreneurs.
ENTREPRENEURS EARLY STAGE ANTICIPATION FOR BUSINESS TRANSFER AND SUCCESSION PROCESSES
by Tarja Römer-Paakkanen, Severi Paakkanen
Abstract: Within the next decade European SME-firms and family firms are facing a need of business transfer and in Finland the successful business transfers are even more important as family firms have a significant role to play in the Finnish economy. It is well known that some transferors have difficulty in preparing and carrying out their own departure. This study was conducted to find practical information for different stakeholders to raise awareness of those entrepreneurs who should start to plan transferring their business to next generation entrepreneurs. In this paper the focus is on the way the entrepreneurs anticipate and prepare for transferring the business to the next generation entrepreneurs. Considering entrepreneurs early stage attitudes towards business transfer or succession we found four main types of entrepreneurs that were named Pre-active preventor, Pro-active arranger, Re-active fire-fighter and Passive lonely-rider.
Keywords: Business transfer; business transfer process; family business succession; family business succession process; incumbent; transferor; predecessor; potential successor; successor; family firm; family business; preparing for business transfer.
Special Issue on: IFC 9 Investment and Risk Taking
A post merger performance of acquiring firms: Evidence from French stock market
by Ferihane Zaraa, Kamel Naoui
Abstract: This paper investigates the impact of takeovers on the short- and long-run stock market performance of a sample of 87 mergers and acquisitions transactions undertaken between 2008-2012 by French financial and real estate industry. For the short horizon event studies, document short-run non-significant abnormal returns of acquiring companies. Furthermore, we test the financial performance by computing the cumulative abnormal returns (CAR), the buy and hold abnormal returns (BHAR) and the Jensen measure (Alpha) to study long horizon of up to 60 months, as part of the calendar analysis, and 36 months in the event approach. The results show negative and significant long-term abnormal returns on acquiring companies either on event time or in calendar analysis for different horizons.
Keywords: Mergers; Acquisitions; Short- term performance; Long run performance; Event studiesrn.
What Wards Clustering Method Tells About The Four Largest Emerging Equity Markets?
by Bora Aktan, Sinem Peker, Makram Bellalah
Abstract: Investing in stock market indices or ETFs could be more reasonable (and relatively secure) for relatively new and incognizant investors who are personally unable to value of each stock/firm in a way. This paper attempts to group the well-known four largest emerging stock markets so-called BRIC or Big-Four economies namely Brazil, Russia, India and China based on return characteristics through Wards hierarchical clustering method over the period of 2005 and 2015. Additionally, the first principle component (PCA) of the related indices is calculated and the abnormal variability is observed through control chart over time. Results indicate that Brazilian and Indian markets show more similarity over the studied period.
Keywords: Emerging markets; BRIC; big four; clustering; stock index; PCA.
CYCLICAL BEHAVIOUR OF THE SWISS REAL ESTATE MARKET
by THOMAS ANKENBRAND, Fabian KOSTADINOV, B.E.N. BOUHENI FATEN
Abstract: The influence of the last real estate crisis in Switzerland, in the 90s, was severe. Here, we seek to analyse the Swiss real estate market using Agent-based modelling (ABM), from December 1986 to September 2014. Our model combines explicit knowledge of behavioural patterns of the agents, with implicit knowledge in the form of time series analysis. Findings are in line with other markets, indicating that the Swiss real estate market is pro-cyclical. If the trend of historically long-term increasing prices on the Swiss real estate market stops, we would expect a hard landing. Then, if regulation reduces the increasing real estate prices, this would lead to a drop in long-term prices.
Keywords: Swiss real estate market; Agent-based modelling; Economic cycle.
Optimal option portfolio hedging strategy with non Gaussian fluctuations
by Haykel Hamdi, Jihed Majdoub
Abstract: The third and fourth moments are two important factors in designing the optimal hedge strategy. This paper investigates the problem of futures hedging under the third and fourth moment based on the multi-objective programming. As the price of the underlying asset changes over time, delta of the option changes and a gamma hedge is required along with delta hedge to reduce risk. This motivates us to find an improvement in delta approximation for various models as well as to investigate the extent of such improvement across fourth moment models. We develop in this work a new framework of risk measure via the fourth moment order of expected utility which is more sensitive to large fluctuations in the variance and risk aversion. Results show that the new approach of Delta optimisation with expected utility ensure significant improvement in modelling option prices leading to better risk-management decision-making.
Keywords: Risk aversion; utility functions; Delta hedging; Hedging Strategy optimal extreme risk.
THE CONTAGION OF THE GREEK DEBT CRISIS ON THE EMU SOVEREIGN BOND MARKETS: A GARCH-DCC APPROACH
by Oussama Kchaou
Abstract: We use the dynamic conditional correlation (DCC) model of Engle (2002) to examine the contagion effects from the Greek debt crisis on seven Economic and Monetary Union (EMU) sovereign bond markets, namely Portugal, Ireland, Spain, Italy, Germany, France and the Netherlands. Following this purpose, daily data on 10-year sovereign bond yields for these countries were collected for a period ranging from September 1, 2009 to December 31, 2015. We show a strong evidence of contagion effects from the Greek sovereign bond market to those of the other peripheral countries during the spring of 2010 suggesting a
Keywords: Contagion; Greek debt crisis; EMU sovereign bonds; DCC model.
Hedge Funds Portfolio Optimisation using a Vine copula-GARCH-EVT-CVaR model
by Rihab Bedoui, Sameh Noiali, Haykel Hamdi
Abstract: This paper investigates the Conditional Value at Risk (CVaR) hedge funds portfolio optimisation approach using a univariate GARCH type model, Extreme Value theory (EVT) and the Vine Copula to determine the optimal allocation for hedge funds portfolio. First, we apply the Generalised Pareto Distribution (GPD) to model the tails of the innovation of each hedge funds strategy return. Second, we capture the interdependence structure between hedge funds strategies and construct a Vine Copula-GARCH-EVT model. Then, we combine it with Monte Carlo simulation and Mean-CVaR model to optimise hedge funds portfolio, in order to estimate the risk more accurately. The empirical results of five Hedge funds indexes show that the C-Vine Copula can better characterize the interdependence structure between the different hedge funds strategies and the performance of C-Vine Copula-GARCH-EVT-CVaR model is better that of multivariate copulas-GARCH-EVT-CVaR models in portfolio optimisation.
Keywords: Hedge Funds; Vine Copula; GARCH; EVT; CVaR; Portfolio Optimisation.
Factors explaining the decision to hold liquid assets: Dynamic analysis of Tunisian listed companies
by Garsellaoui Mongi
Abstract: In this paper, our aim is to study the factors that explain the decision to hold liquid assets. To this end, we examine a sample of 20 Tunisian companies listed on the stock exchange during the 2006 - 2015 periods. Specifically, we estimate a dynamic panel model that links change in liquidity holdings and some variables that may affect liquidity. The results indicate that companies opt for liquidity as a precaution for a possible financing need, mainly if these companies have difficulty accessing external financing sources. For a company, holding liquidity has two advantages: it allows them to easily cover their obligations and future investments, and to retain some of its financial assets.
Keywords: Liquid asset-holding decision; dynamic panel model; liquidity; financing sources; future investments.
TOWARDS A COMMUNICATION-BASED TYPOLOGY OF MANAGEMENT CONTROL MODES: SHOWING THE RELEVANCE OF COMMUNICATIVE ACTION FOR ENTREPRENEURIAL SETTINGS
by Tawhid Chtioui, Stephanie Thiery Dubuisson
Abstract: This study uses Habermass Theory of Communicative Action to illustrate the relevance of adopting a communication-based approach in order to better understand the management control process. We develop a three-dimensional measurement model to analyse the act of communication in the management control process in terms of organisational communication, interpersonal communication, and managerial communication. We use this model to propose a typology of management control modes, and define four modes of communication for the management control process: communicative, relational, command-control, and informative. We found that one situation corresponds to highly efficient communication, based on mechanisms for circulating and sharing organisational information. Our results and typology support the idea that communication is a crucial item within the management control process and that it enables it through two specific channels: interpersonal and organisational communication. This communicative management control mode is consistent with new challenges and growth opportunities that emerge in settings such as the ones of entrepreneurship.
Keywords: management control; management control systems; MCS; communicative action; entrepreneurship; entrepreneurial settings; typology; control modes; communication; innovation.
FINANCIAL STRESS TESTING OF TUNISIAN BANKING SECTOR IN WORST CASE SCENARIOS
by Ben Mbarek Hassene, Gammoudi Imed, Ghourabi Mohamed
Abstract: Financial stress testing (FST) is a key technique for quantifying financial vulnerabilities; it is an important risk management tool. FST should ask which scenarios lead to big loss with a given level of plausibility. However, traditional FSTs are criticized firstly for the plausibility that rose against stress testing and secondly, for being conducted outside the context of an econometric risk model. Hence the probability of a sever scenario outcome is unknown and many scenarios yet plausible possibilities are ignored. The aim of this paper is to propose a new FST framework for analysing stress scenarios for financial economic stability. Based on worst case scenario optimization, our approach is able first to identify the stressful periods with transparent plausibility and second to develop a methodology for conducting FST in the context of any financial-economic risk model. Applied to Tunisian economic system data, our proposed framework identifies more harmful scenarios that are equally plausible leading to stress periods not detected by classical methods.
Keywords: Worst-Case Scenarios; Financial stress testing; Risk management.
Entrenchment, director networks, and CEO compensation
by Najla Hamdi, Mohamed Imen Gallali
Abstract: This paper examines the relationship between CEO compensation and the hypothesis of entrenchment according to the two approaches of governance (disciplinary and cognitive); a model is developed and tested. Based on a sample of 130 Canadian companies, composing the Toronto stock index S&P /TSX cover the period from 2005 to 2015, we examine whether networks are built for reasons of information gathering or for the accumulation of managerial influence. Our results suggest that in Canada the executives network (centrality degree), in our case, enable the CEO to obtain higher compensation.
Keywords: executive remuneration; professional and social networks; corporate governance; entrenchment of executive.
Special Issue on: Collaborative Innovation Networks
Look Inside. Predicting Stock Prices by Analysing an Enterprise Intranet Social Network and Using Word Co-Occurrence Networks
by Andrea Fronzetti Colladon, Giacomo Scettri
Abstract: This study looks into the employees communication behaviours taking place in an intranet social network, offering novel metrics of Semantic and Social Network Analysis, which can help predict a company stock price. To this purpose, we studied the intranet forum of a large Italian company, exploring the interactions and the use of language of about 8,000 employees. We analysed more than 48,000 news and comments, over a period of 94 weeks. In addition to using more traditional semantic and social network metrics, we built a network linking words included in the general discourse. In this network, we focused on the position of the node representing the company brand. We found that a lower sentiment of the language used, a higher betweenness centrality of the company brand, a denser word co-occurrence network and more equally distributed centrality scores of employees (lower group betweenness centrality) are all significant predictors of higher stock prices. Our findings contribute to the stream of research concerned with the prediction of stock prices, offering new metrics that can be helpful for scholars, company managers and professional investors and could be integrated into existing forecasting models to improve their accuracy. We also show the importance of looking at internal communication streams while analysing a companys financial performance. Lastly, we contribute to the research on word co-occurrence networks by extending their field of application.
Keywords: stock price; economic forecasting; intranet; social network; web forum; semantic analysis; word co-occurrence network.
A Network-based Dashboard for Cultural Heritage Promotion in Digital Environments
by Antonio Capodieci, Gianluca Elia, Francesca Grippa, Luca Mainetti
Abstract: Social networks and online communities are becoming the new spaces where people express opinions and share knowledge about their cultural experiences. Monitoring these interactions and the content exchanged is the first step towards the design of a customer-centered strategy for promoting cultural heritage in online communities. This paper describes the design and application of a dashboard for visualizing and monitoring the interaction of content providers and online users with cultural objects within digital environments. The dashboard combines social network analysis metrics and content analysis indicators with the goal to visualize the structural properties of social networks as well as to explore the content exchanged in the digital space. The dashboard relies on two-mode networks where nodes can be Cultural Heritage Objects (CHOs), or institutional providers (e.g. galleries, museums), or individual digital content providers (e.g. experts and content aggregators). The links connecting the two typologies of nodes provide information about the digital resources associated to each CHOs. The dashboard offers insights on the evolution of the most central providers, the most sought-after digital resources, and the most popular cultural objects over time. We applied the dashboard to the DiCet project (an Italian Living Lab centered on Cultural Heritage and Technology) and to Europeana.eu (a European platform for the storage and sharing of cultural digital objects). Preliminary results show the emergence of clusters of interest around specific digital resources, and help identify online contributors sharing new topics of discussion and promoting innovative ways of organizing the content.
Keywords: Content Analysis; Cultural Heritage; Dashboard; Real-Time Data Extraction; Social Network Analysis.
How Gender Affects Collaborative Innovation Networks Performance: The Case of the Dutch Fashion Industry
by Yang Song, Ron Berger
Abstract: The aim of this paper is to study the use of online social networks by male and female fashion entrepreneurs in-order to better understand its structure and how it leads to better collaboration and better performance. In particular, we examine whether gender, diversity, and their combined effects influence the performance of start-ups in the fashion industry. We hypothesize that an entrepreneurs diverse online social network ties, including weak ties and strong ties, have different impact on performance for male and female entrepreneurs. The data for the study was collected through industry surveys and from Facebook. We used ANOVA to test the direct interaction effects of gender and network diversity. The key finding of this study pertains to the interaction effect of gender and network diversity on the performance of a start-up. In general, start-ups established by male entrepreneurs displayed better performance which can be attributed to the diversity of their online social networks compared to female entrepreneurs.
Keywords: Entrepreneurs; fashion industry; online social network; strong and weak ties.
Web Data Geostatistics and Analytics to Evaluate the Impact of a Cultural Event
by Angelo Corallo, Laura Fortunato, Clara Renna, Alessandra Spennato
Abstract: This work proposes a methodological approach that analyses and interprets data resulting from cultural events fruition, in order to obtain information useful to improve cultural events management and encourage the cooperation between the different stakeholders involved. The methodology, based on geostatistics and text analytics techniques, has been proposed and applied to a real case study: the Italian folk music Festival La Notte della Taranta. In particular, text analytics techniques, like semantic and sentiment analysis, integrated with spatial analysis techniques, allowed identifying sentiment score spatial variation and locating geographical area characterized by negative or positive average sentiment score, in order to understand the impact of a cultural event on the local territory.
The particular structure of the event (itinerant) and the Salento territory where it is rooted, an area rich in traditions and folklore, make this Festival an appropriate use case for the approach proposed.
Keywords: Cultural Event Management; Semantic Analysis; Sentiment Analysis; Geostatistical Techniques.
Exploring the Effect of Venture Capital Development on Innovation Performance of Knowledge-Based Companies
by Azam Sazvar, Mahmood Yahyazadehfar
Abstract: Given the enormous technological changes affecting everyday life in todays developing world, organizations and countries are not able to survive without adaptation with the external environment as well as movement towards creating new ideas and their commercialization. Therefore, unremitting presence of organizations in todays global market depends on the development and application of innovative ideas and new knowledge. However, knowledge-based Small and Medium-sized Enterprises (SMEs) are constantly encountered with financial problems in their initial stages of establishment. In this respect, Venture Capital (VC) is a certain type of financing which perfectly meets the needs of newly-established technology-oriented companies. These firms usually have an uncertain future that can lessen their chance to get loans from traditional sources; thus, VC can solve these companies problems by stock participation. Since little research has been conducted to investigate the effects of Venture Capital Development (VCD) on innovation performance of knowledge-based companies and considering the fact that the emergence of science and technology parks has made inactive areas into the most industrial centers, the present study was conducted to examine the effects of Venture Capital Development on innovation performance of knowledge-based companies established in science and technology parks. are private organizations.
Keywords: Venture Capital Development; Venture Capital Firms; innovation Performance; Business Environment.
Dynamic Resolve Model: An Interpersonal Resilience Construct
by Stephanie Colbry
Abstract: This paper explores interpersonal resilience as a means for groups to navigate uncertainty more effectively. Supported by a study completed over a decade, comprised of observations and interviews in unconventional dynamic environments, a model, the Dynamic Resolve Model (DRM) was constructed. The qualitative research method of phenomenology was chosen to analyze 150 interviews representing a diverse audience from the Department of Defense and NGO community. DRM serves as a resource for any group navigating uncertainty. DRM aims to help individuals engage in best practices to strengthen their collaborative capabilities by strengthening interpersonal resilience. DRM is an interpersonal resilience construct connecting observed relational qualities with behavioral patterns of exchange resulting in engagement actions. The study supports research which considers a new paradigm shift from an individualistic overview of the key traits and characteristics of individuals to the observed actions and outcomes of resilient collaborative teams. The study fills a gap in research which considers the complexity of groups that function in heightened emotional states attentive to the techniques that motivate individuals to accept uncertainty and experimentation.
Keywords: dynamic resolve; patterns of exchange; interpersonal resilience; collaboration; human capacity; unconventional dynamic environments.
A Pattern Language for Designing Innovative Projects: Project Design Patterns
by Takashi Iba, Haruka Mori, Ayaka Yoshikawa
Abstract: In this paper, we present a pattern language for sharing practical knowledge to design innovative projects, which we call Project Design Patterns. This pattern language consists of thirty-two patterns about designing projects, which are organized into five categories: CORE, LEARN, CREATE, LIVE, and PLEASURE. This collection of practical knowledge behind designing projects were created through a mining process of interviewing professional project designers, organizing the mined elements using the KJ method (a method for clustering ideas), and writing the information in the pattern format: pattern name, illustration, context, problem, solution, and consequence. This paper presents three patterns in full text as well as summaries of all thirty-two patterns. The survey results and responses of workshop participants and users, presented in the later sections of the paper, imply the potential power of the proposed language for thinking, reflection, and dialogue on designing innovative projects.
Keywords: pattern language; practical knowledge; innovation; project.
Network processes for collaborative innovation
by Giovanna Ferraro, Antonio Iovanella, Matteo Cinelli
Abstract: Collaborative innovation networks represent adequate structures within which to foster members abilities to interact and cooperate in order to increase the level of knowledge and facilitate access to innovation. These systems show a high potential as the best engines to drive innovation. It is supposed that members take advantage of their participation in these networks by creating and extracting value when performing certain deliberate and purposeful processes. Within this paper, we examine such processes by considering two different network models: hierarchical and heterarchical. The first is the classic single hub organisation, where the orchestration model is deemed more appropriate. The second, the choreography model, is characterised by more than one hub and the power of decision is spread among all partners. The main contribution of this paper is to describe in detail the processes within organisations when they are configured in a heterarchical, instead of hierarchical, manner. Our contribution can be considered as valuable in that it offers support for firms to evaluate and pursue the diverse opportunities offered by such models according to their needs.
Keywords: collaborative innovation networks; network processes; network choreography; network orchestration.
Special Issue on: Coordinating, Collaborating and Co-operating for Innovative Change
Informal Training in Chinese Small- and Medium-sized Enterprises
by Yuliani Suseno, Chanzi Bao, Mark Baimbridge, Cong Su
Abstract: Entrepreneurship in small- and medium-sized enterprises are significant contributors to economic development. The purpose of this research is to examine the extent and motives for the use of informal training in Chinese SMEs. Using case studies, we found that informal training is widely used and generally accepted in Chinese SMEs. We also uncovered three separate categories on the motives for SMEs in adopting informal training based on the financial and time constraints they face, the perceived outcomes of training activities in terms of organisational performance, employee turnover, and the development of guanxi and positive team cohesion, as well as the attitudinal aspects of both managers and employees that influence their intentions in adopting a specific training approach. Our study contributes to the literature of HRM in Asia, and has important implications for the government and institutions in emerging countries to support entrepreneurship and SMEs.
Keywords: informal training; small and medium-sized enterprises (SMEs); HRM; China.
Consumer evaluation of collaboration between perfumery and gastronomy for innovation
by Ekaterina Besson, Yue ZHAO, Hajer KEFI, Adnan Maalaoui
Abstract: This paper contributes to the research on collaborative entrepreneurship by studying consumers perception and evaluation of inter-industry collaborations between perfumery and gastronomy for the sake of new product development. First, we review the literature and secondary documents to identify potential variables about consumers perceived industry-level fit between collaborating partners and consumer knowledge, which we assume to influence consumers evaluation of collaboration. Second, we interview professionals in the two industries to further refine these variables, operationalise them into measurable constructs, and add new moderating variables specific to the context. Third, we conduct an online survey of consumers, testing our hypotheses. Our research reveals that the presence of consumers perceived industry-level similarities suffices to leverage their possible doubts on industry-level dissimilarities when they evaluate the relevance of inter-industry collaboration to develop a new product. Consumers relative openness to inter-industry collaborations provides an encouraging signal for companies to push the frontier and seek inspiration from seemingly distant sectors.
Keywords: Consumer evaluation; collaboration for innovation; perfumery; gastronomy; collaborative entrepreneurship; inter-industry collaboration; industry similarity; industry dissimilarity; perceived fit; consumer knowledge; mixed methodology.
Who invests why? An analysis of investment decisions in b2b or b2c equity crowdfunding projects
by Tanja Jovanovic, Alexander Brem, Kai-Ingo Voigt
Abstract: Crowdfunding is a remarkable phenomenon in the field of financing, as it is evolving in theory and practice. However, most research is focused on non-equity based campaigns. Hence, we shed light on a yet under researched aspect: B2B and B2C-companies reaching for equity-based crowdfunding. We chose an empirical approach and conducted a quantitative study among almost 300 participants to reveal the difference between the funding decisions for startups located in either B2B or B2C-markets. Our results show that differences in investments between B2B and B2C firms do exist, revealing that other success factors are necessary in those cases. Moreover, we find that the involvement of the investor as lead user has relevance for the decision to invest in both cases. We conclude with implications for theory and practice, and give suggestions for future research.
Keywords: crowdfunding; equity-based crowdfunding; investment; investment decision; fundraising; startup; B2B; B2C.
Special Issue on: Strategy and Coopetition
When less is more: coordinating innovation in open versus closed source software development
by Petra Kugler
Abstract: This paper compares the coordination effort required for innovative work in a typical firm and in an open source software development project. It concludes that the open mode of organising requires a lower amount of coordination compared to the closed mode typical of firms. The reasons for this finding are a reduced need for subsystem differentiation, task variability and interdependence in open source software development. The open mode is therefore interesting for entrepreneurial ventures striving to overcome limited resources. It has two advantages: it creates fewer costs and is better suited to generating innovative output compared to the closed model used in firms. This conceptual paper builds on the literature on open organisations, the open source software phenomenon and contingency theory. It illustrates its theoretical findings with two cases (Microsoft and the Arch Linux open source project).
Keywords: coordination; open innovation; closed innovation; open source software development; closed source software development; contingency theory; innovation; new types of organising.
Identifying the determinants of corporate venture capital strategy: evidence from French firms
by Souad BRINETTE, Sabrina KHEMIRI
Abstract: In this paper, we aim to empirically assess the main determinants of decisions of established large firms to launch or join a corporate venture fund. Our study is performed on a database of all French firms that adopted a corporate venture capital (CVC) strategy between 1995 and 2015. This specifically collected dataset includes 58 large groups listed on the SBF 120 index, with 29 groups that launched or joined CVC funds and the other 29 groups are our control sample. The results provide evidence that a firms CVC strategy is an increasing function of the strength of its specific resources, its performance, the availability of resources, and its low level of indebtedness.
Keywords: corporate venture capital; entrepreneurial finance; slack resources theory; resource based view; agency theory; large firms; small businesses; France.
Special Issue on: Strategy and coopetition
CO-OPETITION IN THE BOATING INDUSTRY AND COLLECTIVE MANAGERIAL CAPACITY
by Jean Sebastien LACAM, David SALVETAT
Abstract: Co-opetition allows small businesses to pool their human resources to introduce new lines of business and/or exploit new geographic markets. Co-opetition is nevertheless a difficult strategy to organize because of its dual nature. The management of the collaborators involved in a project plays a role in achieving the collective and individual objectives pursued by the firms involved. The relationship between the management of human resources during co-opetition and the objectives related to the cooperative sector's activity and territory policies deserves to be addressed. Our empirical study of the leaders of 106 French small and medium-sized enterprise (SME) and mid-cap boating firms reveals that specialized and national co-opetition encourages individual learning linked to the exposure of the human resources of its participants. Conversely, the complexity of a diversified and international co-opetition creates a new collective managerial capacity resulting from the firms collaborative efforts.
Keywords: Co-opetition; managerial capacity; human resources; geographic strategy; sector strategy; SMEs.
THE IMPACT OF TRUST AND ELECTRONIC WORD-OF-MOUTH REVIEWS ON PURCHASING INTENTION
by Joana Torres, Pedro Torres, Mário Augusto
Abstract: This paper analysed the causal relationships among trust, general attitude toward electronic word-of-mouth reviews, electronic word-of-mouth reviews rank, and purchase intention. Using a sample of 201 users of social network sites and an application of structural equation modelling, a conceptual model was tested. The main findings show: i) trust and general attitude toward electronic word-of-mouth reviews have a significant impact on purchase intentions and on electronic word-of-mouth reviews rank; ii) trust doesnt have a significant effect on electronic word-of-mouth reviews attitude, and iii) electronic word-of-mouth reviews rank doesnt have a significant influence on purchase intentions. Thus, marketing managers should focus on building trust and promoting a positive general attitude toward electronic word-of-mouth reviews to increase purchase intention.
Keywords: eWOM; general attitude toward electronic word-of-mouth reviews; electronic word-of-mouth reviews rank; trust; purchase intention; digital marketing.