International Journal of Entrepreneurship and Small Business (153 papers in press)
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
Abstract: Does traditional sector innovate as others? The wine sector evolution proves the role of innovation since antique world with the amphora innovation until Californian cluster that symbolises new world country production-based from wineries and coopetition. While wine suppliers focus on technical innovations, winegrowers develop organisational innovations to face their structural lack of resources. Anyway, both actual global context and climate change lead wine actors to innovate for survive or adapt. In our article, we first analyse innovation in wine sector over time. Then, we define innovation and focus on wine sector specificities.
Keywords: wine industry; innovation; wine history; organisational innovation; coopetition.
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.
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.
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.
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.
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.
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.
The promise of coworking environments: a content analysis of the positioning of collaborative workspaces in Amsterdam.
by Victor Cabral, Willem Van Winden
Abstract: The emergence of collaborative workspaces is a remarkable feature of contemporary cities. These spaces have appeared rapidly, catering for the locational needs of self-employed workers, start-ups, and small-size companies. The objective of this paper is to provide an analysis of four categories of collaborative workspaces (Accelerators, Incubators, Coworking spaces, and FabLabs). For the case of Amsterdam, we conducted a website content analysis to assess how these spaces position and present themselves towards potential users. The empirical evidence shows that these spaces promise a variety of benefits, ranging from business development to access to social networks. This diversity illustrates the emergence of distinct work settings in an economic environment characterized by the need to work in a social environment that at the same time stimulates networking and collaboration.
Keywords: collaborative workspaces; positioning; collaboration; business benefits; accelerators; incubators; coworking spaces; fablabs.
The management control system of Italian SMEs. A survey in the wine sector
by Laura Broccardo, Matteo Rossi
Abstract: This paper aims to analyse the management control systems (MCS) adopted in Italian family-managed small and medium enterprises (SMEs) operating in the wine sector. This study has a particular focus on the design, implementation and use of a strategy map as a tool to facilitate strategy implementation by measuring a wide range of strategic variables on a long time horizon and integrating economic and financial indicators with non-financial indicators through cause-and-effect links.
This research was conducted through the qualitative method of case studies where theory and empirical research are intertwined. The study shows how the four companies identified the critical success factors to reach success in their businesses. This paper has some theoretical and practical implications, as it contributes to integrating the existing literature on management control systems in family-managed small and medium firms, but the sample has to be enlarged.
Keywords: wine business; SMEs; family; strategy; financial perspective; internal business process perspective; learning and growth perspective.
IMPACT OF THE HUMAN CAPITAL ON THE PERFORMANCE OF MICRO-ENTERPRICE: AN EMPIRICAL STUDY IN ARGENTINA
by Nicolas Beltramino, Domingo García Perez De Lema, Luis Enrique Valdez Juarez
Abstract: The purpose of this paper is to analyse the determinants of business performance micro firms. In order to do that, an empirical study is carried out in the Argentine context, based on the information obtained from 468 micro firms. The micro firms are those that have less 10 employees. The results show that human capital measurement by education level, previous experiences, management skills and motivation to set up the company have positive impacts on the performance of micro companies. These results have important economic and social implications that allow governments favour the ecosystem of the micro-enterprices.
Keywords: human capital; micro-enterprices; motivations to start the company; performance.
Impact of successors social skills in family firms
by Hedi YEZZA, Didier CHABAUD
Abstract: Succession is connected to family firms low rate of long-term survival. This research tests the effects of a successors social skills on the success of succession in family firms. It extends the studies of Baron and Markman (2000, 2003), who emphasise the role of social skills in the early stages of the venturing process. To bridge this conceptual and empirical gap, a quantitative study was conducted on 77 companies that had experienced at least one succession in their recent history. The results indicate that the dimensions of social skills influence the success of succession in different ways. The successors self-promotion has a negative effect, whereas his or her social adaptability, social perception, ingratiation, expressiveness, education level, and experience within the family firm have a positive impact. Lastly, this research provides a better understanding of emerging economies in Africa.
Keywords: Family business; succession; social skills; successors.
TQM in Indian auto component SMEs: Role of Contextual or Institutional Factors
by Neena Sinha, Neelam Dhall
Abstract: Over the past few years, the small business sector has gained lot of prominence in the entrepreneurship literature as it has emerged as a leading force creating an impact on the growth of national economies by providing employment and driving economic development. Small and Medium Enterprises(SMEs) in the Indian auto component sector are facing stiff competition from large companies as they could provide products of greater value with lower cost as compared to SMEs. To meet these challenges, Indian auto component SMEs must implement TQM, which has been recognised as a resource for promoting organisational innovation. This study aims to investigate the effect of contextual factors namely size, age and geographical location of company on TQM implementation in Indian auto component SMEs. Survey methodology was used for data collection from 482 SMEs. Data of 120 SMEs that responded to the survey was taken for analysis. The study provides empirical evidence that a context-dependent argument for TQM implementation does not hold good. Research findings suggest that the extent of TQM implementation in these SMEs is not governed by their distinctive characteristics as suggested by contingency theory but rather by institutional factors as suggested by institutional theory. This study presents a number of practical implications specifically for public policy and administration in an emerging economy such as India. It is recommended that industry associations must be regarded as valuable public policy motivators in promoting quality implementation in auto component SMEs.
Keywords: Contextual factors; Indian auto component SMEs; Institutional role.
Entrepreneurship in agriculture: A literature review
by Roland Condor
Abstract: Whereas scholars in entrepreneurship have focused their studies on various entrepreneurial situations, little is known about entrepreneurship in agriculture. Using the Scopus database, we analyse 229 papers related to this topic to understand what entrepreneurship means in agriculture, why this topic is growing, and who publishes and where. This paper provides quantitative results that can be useful for scholars, consultants and decision makers. It also provides a qualitative analysis of the topic, showing a structure for the idea of change: agri-entrepreneurship appears as a new paradigm based on the implementation of deliberate strategies to respond to liberalisation and sustainability. These results are discussed while taking into account the criticism of liberalisation and sustainable concerns. We show that the debates on liberalisation do not question the legitimacy of the agri-entrepreneurship topic but rather question the way farmers undertake it and how entrepreneurship can reinforce the resilience of farms.
Keywords: Agriculture; entrepreneurship; farm; literature review; liberalisation; sustainability.
The Concept of Entrepreneurial Ability-Evidence from Women in MSMEs of Karnataka State
by Shivakami Rajan, Sunita Panicker
Abstract: The Indian women entrepreneurs have come a long way today from the traditional deep rooted view of the Indian society where the sociological set up has always been very patrician. Despite all the social hurdles, Indian women entrepreneurs today are lauded for their achievements in their respective industrial arena. The MSME sector of any economy is the barometer of the overall growth of its diverse population including the women entrepreneurs. Hence to uplift Indias women entrepreneurs through policy initiatives, a proper understanding of the entrepreneurial ability of the women entrepreneurs is of paramount importance. The objective of this study is to explore the factors of women entrepreneurial ability which impacts the successful performance of the women entrepreneurs in MSMEs of Karnataka state. A theoretical framework model of entrepreneurial ability is developed for the study which is an empirical research based on primary data, collected through questionnaire. The sample size is 427 selected through random sampling method. The research question is tested using Factor Analysis and Pearson correlations. The demographic variables, MSME characteristics and the clustered factors are then tested for significance individually. Overall the results of this study support the contention; the perceived business performances of women entrepreneurs have a significant influence on their entrepreneurial ability. The study concludes with a discussion of implications and a number of recommendations are discussed.
Keywords: Alertness,Entrepreneurial Ability; Personality; Motivation; MSMEs ,Self-efficacy; Successful Business performance,Women Empowerment,Women Entrepreneurship.
Local Institutions on Small Firm Investments: Degrees of Institutional Persistence Matter
by BACH NGUYEN
Abstract: This study investigates the influence of local institutions including corruption, administration transparency, and leadership proactivity on small firm investment. Drawing from the institutional theory, we suggest that the persistence (resistance to changes) of institutional forces is an important determinant of their effects on investment. Using a dataset of 945,725 firm observations in Vietnam from 2006 to 2015, we find that: (1) investment is a U-shaped function of corruption controls; (2) transparency has a positive effect on investment; and (3) leadership proactivity can moderate the adverse effects of corruption and opaqueness in public services. This variety in the association patterns between investment and institutional forces is due to the degree of institutional persistence in local norms of doing business.
Keywords: Institutions; Corruption; Investment; Governance; Small Business; Vietnam.
External Financing Perceptions by Sub-Saharan Entrepreneurs: A Qualitative approach
by Eric Braune, Jean-michel SAHUT, Lubica Hikkerova
Abstract: Based on the interviews of 18 Cameroonian entrepreneurs, we study how the entrepreneurs locus of control and motivations influence their perception of bank loans. Also, we evaluate the mediating roles of the managerial team and the entrepreneurs social network in this relation. Our results are manifold. First, we show that venture creation was not the initial professional choice of most of the entrepreneurs in our sample. Then, we distinguish three classes of entrepreneurs according to their professionalisation process. Finally, we shed light on the relationships between entrepreneurs motivational trajectories and their acceptance to meet bank requirements
Keywords: entrepreneur; loan; debt; motivation; venture creation; managerial team; social network.
Opening the Black Box: How Social Interaction Contributes to Entrepreneurial Intentions among Deaf and Hard-of-Hearing Individuals
by Michael Jasniak
Abstract: Entrepreneurial intentions are widely recognised as a strong predictor of entrepreneurial behaviour. With regard to the minority of Deaf and hard-of-hearing individuals, the recent literature has elaborated on the beneficial influence of social ties on entrepreneurial behaviour. The process of gathering and sharing information includes a variety of facets, including social ties. Derived from the theory of social capital and social identity theory, we expand the concept of social ties to a holistic view of social interaction. Accordingly, we define social interaction as a synergy of general social support, particularly from relatives, and general boundary-spanning. Respective insights are held within a black box being scarcely highlighted. After applying a two-step methodology based on linear regression models, our results demonstrated that the concept of social interaction has a significant influence on entrepreneurial intentions. Having opened the black box, social interaction among Deaf and hard-of-hearing individuals revealed a strong influence on entrepreneurial intentions, whereas social interaction with hearing individuals lacked significance levels.
Keywords: Social Interaction; Entrepreneurial Intentions; Social Support; Boundary-spanning; Hearing-Impaired Individuals; Minority Entrepreneurship.
Antecedents of well-being for artisan entrepreneurship: A first exploratory study
by Lelaorne Lemaire Severine, Partouche Cohen Judth, Myriam Razgallah, Adnane Maalaoui
Abstract: Studies examining the well-being of artisan entrepreneurs have not been widely developed. Some scholars have studied the entrepreneurial phenomena in the field of handicraft in general, focusing on the motivations, goals and perceptions of success of artisan entrepreneurs. However, studies regarding artisan entrepreneurs and, specifically, their quality of life and well-being have not been sufficiently discussed in this entrepreneurship literature. For that reason, this paper explores the well-being of artisan entrepreneurs and seeks to identify the antecedents of this well-being. We conducted an exploratory qualitative study through which we highlighted some important characteristics of artisan entrepreneurs well-being, such as passion, personality, creativity, culture and heritage. On the basis of these findings, we propose and discuss a first model of the antecedents of well-being for artisan entrepreneurs.
Keywords: well-being; artisan; entrepreneurship; Gioia method; passion; heritage; sense of work.
A CONCEPTUAL MODEL OF SOCIAL ENTREPRENEURIAL INTENTION BASED ON THREE DIMENSIONS OF SOCIAL CAPITAL
by Pham Xuan Lan, Phan Tan Luc
Abstract: The purpose of this paper is to formulate the new model of social entrepreneurial intention based on social capital dimensions. Authors present a literature review bases on previous research about the relationship between social capital and social entrepreneurial intention to identify gaps. There is no research which uses three dimensions of social capital to measure social entrepreneurial intentions, although these three dimensions were introduced in 2000 (Nahapiet and Ghoshal, 2000). This research contributes to the literature of social entrepreneurship in general and social entrepreneurial intention in particular by providing new relationships between the three dimensions of social capital and social entrepreneurial intention. The findings also suggest important implications for policy makers in increasing the number of social entrepreneurs as well as new research directions on social entrepreneurial intention for researchers.
Keywords: social entrepreneurial intention; social capital dimensions; the theory of planned behaviour; social interaction and ties; social trust; shared norms.
Dynamism and Performance of Indigenous Entrepreneurs: Role of tribal culture and failure of policy incentives in Mizoram (India)
by Shailaja S. Thakur, Amit S. Ray
Abstract: This paper aims at exploring the drivers of entrepreneurial dynamism and performance in indigenous societies. In Mizoram (India) with a predominantly tribal population, the government has actively intervened to encourage entrepreneurship through policy incentives/ subsidies. Yet, the region continues to lag behind in entrepreneurship development. In an attempt to explain this apparent failure of conventional policies to promote entrepreneurship in Mizoram (India), this paper explores the factors that could potentially determine entrepreneurial dynamism and performance in an indigenous society through the lens of their tribal culture and institutions. Our results show that tribal values are the prime drivers of entrepreneurial dynamism, while conventional traits and attitudes have no impact, disproving two dominant narratives. We also find that conventional subsidies have a negative impact on profitability, perhaps due a dampening effect of subsidies on dynamism.
Keywords: Indigenous entrepreneurship; Mizoram (India); tribal values; policy incentives; entrepreneurial dynamism; culture and entrepreneurship.
THE IMPACT OF ORGANISATION WORK ENVIRONMENT ON JOB SATISFACTION, AFFECTIVE COMMITMENT, WORK-FAMILY CONFLICT AND INTENTION TO LEAVE: A STUDY OF SMEs IN INDIA
by Anjni Anand, Veena Vohra
Abstract: Faced by global competition and working in a challenging and competitive business environment, small and medium enterprises are also making attempts at making themselves adept at meeting these challenges. The challenge is not just to improve and increase their production capacity, but also make the work environment conducive to attracting and retaining talented workforce. The study takes a look into the work environment in some of the SMEs operating in India and the impact of the work environment on the job-related attitudes of the employees. A sample of 345 employees working in 14 SMEs was drawn for the purpose of the study based on convenience sampling technique and various organisational theories like the Social exchange theory, social embeddedness theory, role theory and role overload theory were tested for their applicability to the specific work environment prevalent in these SMEs. The various work domain factors which directly affect the psychological perceptions of the employees about their work-place are tested in the study and the results confirm the strong and significant role played by work-place social support and role overload in affecting work behaviours like job satisfaction, affective commitment, turnover intentions and also in affecting work-family conflict faced by the employees of SMEs.
Keywords: co-worker support; supervisor support; organisational support; role overload; job satisfaction; affective commitment; turnover intentions and work-family conflict.
Entrepreneurship in Post-Soviet Cuba: Self-Employed Workers and Non-Agricultural Cooperatives
by Mario Gonzalez Corzo
Abstract: The expansion of entrepreneurial activities is one of the pillars of Cubas strategy to adopt a less paternalistic, economic model in which the non-State sector is expected to play a larger role. Primarily driven by economic reforms and a desire for greater autonomy from the State, Cubas self-employed workers and non-agricultural cooperatives have increased significantly since 2010. This has unleashed an unprecedented level of entrepreneurial activities in one of the last bastions of communism in the Western Hemisphere. However, Cubas self-employed workers and non-agricultural cooperatives face a wide range of institutional and economic barriers that limit their economic contributions and potential for growth. Eliminating these barriers, and drastic changes in State policies towards the emerging non-State sector, are essential requirements for the development and expansion of small and medium enterprises (SMEs), and for improving the living standards of the Cuban people.
Keywords: Cuba; Cuban economy; economic reforms; entrepreneurship; non-agricultural cooperatives; self-employment; transition economies.
Entrepreneurial culture and promotion of exporting in Algerian SMEs: perception, reality and challenges.
by Riad ABADLI, Chokri Kooli, Abdelhafid Otmani
Abstract: In the last three decades of the 20th century, the economic policies of the developed countries were built on small and medium enterprises. The governments of these countries encouraged the creation of an entrepreneurial culture by providing all the necessary facilities and subsidies. In this logic, the Algerian government has launched some initiatives encouraging SMEs, with the aim of gradually getting out from the windfall economy and diversifying exports. That is why we will discuss the reality of entrepreneurship in Algeria in order to verify the reliability of the measures taken. Indeed, the objective of our research consists of checking the reliability of the SMEs created. We also intended to verify whether the objective of export diversification through the encouragement of SMEs is realistic. To make a real statement, we built our study on interviews / surveys with Algerian exporting enterprises or potentially exporting. The analysis of data collected showed that the effort deployed by the Algerian government has led to an important increase of SMEs creation. Results also showed that the majority of these new companies are non-exporting and integrate the sector of services and trade. These new firms created new opportunities of employment and consequently deeply contributed to the decrease of the unemployment rate in Algeria. However, the reaching of the objective of a diversified economy is far from being achieved. The contribution of these SMEs in exports remains too far from the objectives targeted by the Algerian government.
Keywords: Entrepreneurial culture; promotion of export; Algerian SMEs; contribution of these SMEs in exports.
ETHNIC MIGRANT ENTREPRENEURS, RESOURCES AND OPPORTUNITIES: AN INTEGRATED FRAMEWORK
by Hamizah Abd Hamid, Zizah Che Senik
Abstract: This paper aims to propose an integrated framework of the major models within the discourse of ethnic migrant entrepreneurship. This study employs the competing explanatory models in understanding ethnic migrant entrepreneurship as a phenomenon, through a qualitative perspective in a non-western contextual setting. The findings suggest that the coalescence of the host country environment and ethnic migrant entrepreneurs home country cultural resources is a fundamental factor in influencing migrant entrepreneurial activities in the host country. This paper contributes to the ethnic and migrant entrepreneurship discussion by providing an integrated framework of the explanatory models in the field, which can be utilised in complimentary with conventional theories and models in business and management studies. The integrated framework, which is the outcome of this study, outlines the general landscape of ethnic migrant entrepreneurship, thus provides important practical implications for entrepreneurs operating in international settings and policy makers dealing with trade and migration.
Keywords: Ethnic migrant entrepreneurs; resources; opportunities.
Invited Paper: Scottish Family Businesses: Innovative Strategies for Education and Business Support
by Claire Seaman
Abstract: Family business is of critical importance to economies, communities and societies across Scotland, but academic research that considers and supports this group of businesses through links to the policy agenda is in the relatively early stages of development. In 2017, it was estimated that the Top 100 family businesses in Scotland contributed 11% of on-shore GDP to the Scottish economy and supported around 100, 000 jobs. The development of a Top 100 list for Scottish Family Businesses is key because it allows us to consider their economic importance alongside the wide range of international family business research that considers their differentiating factors. Building this bridge between academic research and policy is a current priority. This paper outlines some of the practical developments from this work, whilst contributing to the debate about the translation of academic research into the wider field of policy and business support. In opening the debate, the academic team at Queen Margaret Business School are also highlighting their willingness to engage with colleagues whose professional experience is similar or complementary and to share approaches that have worked across difference countries, cultures and geo-political divides.
Keywords: Family business; small business impact; Scotland; business education; migrant communities.
Factors Influencing the Adoption of Urban Commercial Vegetable Production in the Bangkok Metropolitan, Thailand
by Suneeporn Suwanmaneepong, Sasima Fakkhong
Abstract: The urban vegetable production has rapidly increased in recent years. It is a strategy adopted by urban dwellers aiming to improve their livelihoods. Hence, in this context, Thailand can adopt this strategy and promote vegetable production in a citys residential area, thereby benefitting its urban dwellers. Therefore, the objectives of this study were as follows: 1) to describe the socio-economic factors of urban dwellers who practise vegetable production and (2) to determine the factors influencing urban dwellers adoption of urban commercial vegetable production (UCVP) in the Bangkok Metropolitan. Questionnaires were administered to 134 respondents (88 home vegetable growers and 46 commercial vegetable growers), who were randomly selected. A binary logistic regression model was employed to analyse the collected data. The results revealed that network membership and the practice of urban vegetable production has the potential to reduce the cost of buying vegetables and increase household income. Additionally, the motivation that the consumption of urban vegetable products enhances peoples health was found positively significant to the adoption of the UCVP practice. Moreover, the following factors were found to be negatively significant to the adoption of the UCVP practice: access to information on urban vegetable production can also facilitate access to fresh vegetables and practising vegetable production as a recreational activity. The research identified factors influencing the adoption of UCVP; simultaneously, the research recommends that not only the relevant organisations but also stakeholders should consider determining measures that possibly encourage the adoption of urban vegetable as well as identifying suitable tools that can best lead to positive adoption decisions
Keywords: urban vegetable production; commercial urban production; home urban vegetable production; vegetable production adoption; home garden; commercial garden.
Determinants of Entrepreneurial Opportunity Recognition by Agricultural Entrepreneurs
by Ehsan Masoomi, Naser Zamani
Abstract: Agriculture sector has more uncertainties than non-agriculture sector. On the other hand, due to diversity in products and services, this sector offers many entrepreneurial opportunities. The purpose of the current study was to investigate determinants of entrepreneurial opportunity recognition by agricultural entrepreneurs. This study was conducted using survey method, and the sample was made up of 140 Iranian agricultural entrepreneurs. The participants were assigned with proportionate stratified random sampling. Data was gathered using a questionnaire, and was analyzed using SPSS22 and AMOS22. Path analysis results showed that social networks was the most important determinant of entrepreneurial opportunity recognition with the highest direct effect (0.41). Other factors influencing opportunity recognition included creativity, self-efficacy, prior knowledge and regulatory institution. Education influenced opportunity recognition indirectly through creativity, prior knowledge and social networks, and work experience influenced opportunity recognition indirectly through self-efficacy and social networks. Relevant theoretical and practical implications and contributions are discussed.
Keywords: Agricultural entrepreneurs; Entrepreneurial opportunity; opportunity recognition; Agribusiness; Iran.
Evaluating the impact of registration on future firm performance in the Middle East and North Africa region: evidence from the World Bank Enterprise Survey
by Colin C. Williams, Abbi Kedir
Abstract: The aim of this paper is to investigate whether the future firm performance of formal enterprises that started-up unregistered and spent longer unregistered are significantly different to those that registered at the outset. Reporting World Bank Enterprise Survey data on 3,420 formal enterprises from eleven countries in the Middle East and North Africa (MENA) region, and controlling for other determinants of firm performance as well as the endogeneity of the registration decision using the Heckman selection model, the finding is that unregistered firms at start-up witness lower sales and productivity growth but higher employment growth rates. The effect of the registration decision on future performance thus depends on the performance indicator analysed. The theoretical implications are then discussed along with the limitations and future research required.
Keywords: entrepreneurship; venture creation; business start-ups; informal economy; informal sector; development economics; economic development; firm performance; Middle East; North Africa.
Process of customer loyalty in very small craft enterprises: an exploratory study of the steps and skills of the owner-manager
by Thierry Mahougnon ADANKANHOUNDE
Abstract: Customer loyalty, already studied by many practitioners and researchers, continues to be topical due to the benefits that loyal customers provide to the business. There are, in the literature, tools developed for companies to retain customers who become demanding and rare. Very small craft enterprises (VSE) which are booming presently represent the next economy. However, the proprietors of such ventures, though mostly illiterate, have to adapt not only to the different stages for establishing long-lasting relationships with customers, but also to the necessary skills in the process. In this line, interviews were held with 25 groups of group-based VSE proprietors. The data collected shows that the process of customer retention follows three steps during which the owner-manager must develop skills and specific skills.
Keywords: customer loyalty; very small craft business; process; steps,skills.
Culture and Entrepreneurship: The case of Guatemala
by Marco Villatoro, Andres Marroquin
Abstract: In this paper we explain some of the main traits associated with becoming an entrepreneur and examine others traits that, to our knowledge, have received little attention. Common traits are related to: network effects, perceived skills, ability to spot opportunities, and self-confidence. We add cultural traits: ethnicity, beliefs about inequality and entrepreneurial status in society, and religion. We conduct our analysis in the context of the Central American country of Guatemala, which is ethnically diverse. We use GEM (Global Entrepreneurship Monitor) survey-data to verify our claims. Within some limitations, we find that among cultural traits, ethnicity remains significant after using several checks.
Keywords: entrepreneurship; Guatemala; GEM data; beliefs and the economy; culture and economics; economic inequality; entrepreneurial status; religion and entrepreneurship; culture and entrepreneurship; ethnicity and entrepreneurship.
Evaluating the impacts on firm productivity of informal sector competitors: results of a business survey in South-Eastern Europe
by Collin Williams, Slavko Bezeredi
Abstract: The aim of this paper is to evaluate whether informal sector competitors have a negative impact on the productivity of formal businesses. To analyse the relationship between the productivity of businesses and their perception of the prevalence of informal sector competitors, data is reported from a representative sample of 1,430 businesses in Bulgaria, Croatia and FYR Macedonia. This reveals that businesses who assert that their competitors always or in most cases participate in the informal economy have significantly lower productivity growth rates compared with those who assert that their competitors do not participate in the informal economy. The implications for theory and policy are then discussed.
Keywords: entrepreneurship; informal sector; productivity; firm performance; South-East Europe.
Network collaboration for local and regional development the case of Swedish women entrepreneurs
by Irene Bernhard, Anna Karin Olsson
Abstract: The aim of this study is to explore women entrepreneurs participation in networks with focus on local community collaboration. In recent years interest in the importance of women entrepreneurship worldwide has increased, especially from the viewpoint of local and regional development. Previous studies show that local competitors coordinated in networks can gain cross sector knowledge sharing and boost the attractiveness of a region. Using case study methodology with 14 qualitative semi-structured in-depth interviews in two phases with business counselors and women entrepreneurs, participatory observations and document studies, this study explores women entrepreneurs in smaller cities and their collaboration in networks with particular reference to a Swedish context. Results state that women entrepreneurs are active and participate in various local community networks and that networks are viewed as valuable assets for business development. Women entrepreneurs strategically choose to join strong networks that have an impact on local community development. Challenges faced by women entrepreneurs are mainly related to the role as entrepreneur and running a business in a smaller city. However, some specific gendered challenges are lack of trust or respect from other business and public actors, especially in contact with authorities. The women entrepreneurs have mixed experiences of local community support hence the main sources for renewal processes and knowledge sharing are co-owners, staff, digital tools, networks partners, families and friends. f
Keywords: network collaboration; women entrepreneurs; local and regional; innovation; tourism; Sweden.
Analysing the differences in the importance of social entrepreneurship critical success factors across social enterprise demographics
by Mir Shahid Satar
Abstract: The present paper was formulated with the purpose to find out the significant differences in the degree of importance of formally identified social entrepreneurship (S-ENT) critical success factors (CSFs) across different demographic parameters of Indian social enterprises (SEs). All in all, the former survey have covered SEs operating in seven prominent socio-economic sectors involving diverse social settings within India. Kruskal-Wallis test in conjugation with descriptive stats was employed to analyse the significant differences in the present study. The study found that out of 24 CSFs, the relative importance of eight outlined CSFs remarkably differs as per the type of legal structure, socio-economic sector and nature of revenue generation of the studied SEs. Further, the analysis led to find the relative importance of the above eight significant factors for different types and nature of SEs under consideration. The study will help the practitioners and other stakeholders of S-ENT in reviewing the relative importance of CSFs while seeking their relevant application for a particular S-ENT venture. Alternatively, the study outcomes would enable the practitioners in weighing the contextual specificities while prioritizing the 24 formerly discovered CSFs. The findings simultaneously are expected to advance literature on S-ENT CSFs vis-
Keywords: social entrepreneurship; social enterprise; critical success factors; strategic management; India; sustainability; demographics.
Does Board Gender Diversity affect Firm Performance? Evidence from the French SMEs
by Riadh MANITA
Abstract: In the contemporary business world, the diversity of boards in terms of gender has been examined by many researchers and those responsible for public policy. Although many studies have assessed the correlation between how a company performs financially and the gender diversity of its board, this research has tended to focus on larger companies and the results have been inconclusive. This paper will re-examine key elements of the existing discourse by focusing on a selection of small and medium-sized enterprises (SMEs) in France between 2009 and 2014. Panel data and the two-stage least squares (2SLS) methodology was employed to assert empirical control over both the significance and direction of the correlation between the financial performance of an organisation and the diversity of its board. Unlike the literature, in our study of French SMEs, we found no notable correlation between how a company performs financially and how diverse its board is in terms of gender. This paper will examine the benefits firms can access by ensuring the gender diversity of their respective boards.
Keywords: Board of directors; Company performance; Diversity; Gender; Women.
A Philosophical Approach to Entrepreneurial Education: A model based on Kantian and Aristotelian thought
by Massimiliano Matteo Pellegrini, Cristiano Ciappei, Giacomo Marzi, Marina Dabic, Carolyn Egri
Abstract: In the field of entrepreneurship education, how to develop an effective program to teach entrepreneurship has been widely debated. However, an inductive approach based on analysis of educational program experiences and outcomes has led to mixed conclusions about the appropriate scope and structure of entrepreneurship education. In contrast, we take a deductive approach to develop a comprehensive entrepreneurship education model based on concepts from two schools of philosophical thought: the Kantian debate about freedom versus determinism, and the Aristotelian concepts of praxis and po
Keywords: entrepreneurship education; philosophy of entrepreneurship; entrepreneurial acting; entrepreneurship pedagogies; art and science of entrepreneurship; Aristotle; Kant.
ENTREPRENEURIAL GROWTH STRATEGIES IN CENTRAL ASIA: A MID-TRANSITION TYPOLOGY OF 4S
by Gul Berna Ozcan
Abstract: With empirical evidence gathered from three Central Asian states, we develop a typology of dynamic strategies by which firms adapt to market conditions. These are characterised by "sliding" into vertical expansion, "skipping" from one business into an entirely different one, horizontal expansion by "scooping" up kindred functions, and "specialising" to exploit lucrative niches. This we call the 4S typology. The disadvantage of this exuberance is that most entrepreneurs remain in a disjointed state of skipping as they face competition from fellow imitators and absorption from exploiters.
Keywords: transition entrepreneurship; small business strategy; growth typology; Central Asia.
MOTIVATION OF WOMEN ENTREPRENEURS IN SMES: CASE OF THE KINGDOM OF SAUDI ARABIA
by Fariza Hashim, Priyanka Aggrawal
Abstract: Women's contribution in SMEs is significantly increasing worldwide. However, their motivation to venture into entrepreneurship is not fully understood yet, especially in developing countries. Motivation literature suggests that push and pull theory could explain the phenomenon. Nevertheless, the distinction between the push and pull itself remains inconclusive. Therefore, this study attempts to verify the factors that motivate women to become entrepreneurs and confirm the differences between them. The study analyses the primary data collected from 186 SMEs in Riyadh, and data was analysed quantitatively. The results reveal that the pull factor is more dominant than the push factor in motivating women to participate in entrepreneurship. Demographic factors such as age, education, and type of business have some influence in stimulating them to become entrepreneurs. This study also confirms the elements for push and pull factors using exploratory factor analysis.
Keywords: Entrepreneurship; SMEs; Motivation; Women; Saudi Arabia.
Age effects on entry into entrepreneurship of the unemployed, employed and self-employed
by Maryam Cheraghi, Nastaran Simarasl
Abstract: Prior research suggests that hybrid entry, being an entrepreneur alongside being employed/engaged in another business, is a strategy to reduce the opportunity costs and risks of engaging in entrepreneurship. So far, research has primarily relied on the assumption of homogeneity among hybrid entrepreneurs and that they all incur similar switching costs for entry into entrepreneurship during their lifetime. This paper considers self-employed individuals who engage in creating another business as a new type of hybrid entrepreneurs. We argue that an individuals age affects the switching cost of entry into entrepreneurship in relation to an individuals occupation. We test our proposed framework on a Spanish dataset from the Global Entrepreneurship Monitor. Our findings show that an individuals age and occupation impact the switching costs of entry into entrepreneurship.
Keywords: Hybrid entrepreneurs; unemployed nascent entrepreneur; portfolio nascent entrepreneur; entrepreneur’s age; switching costs; opportunity costs; risk; entrepreneurship entry; small business; Global Entrepreneurship Monitor.
DETERMINANTS OF SOURCE OF CREDIT FOR SMALL AND MEDIUM ENTERPRISES IN THE HANDICRAFT SUBSECTOR IN GHANA
by Kofi Osei Adu
Abstract: This study examined the factors that influence SMEs in the handicraft subsector source of credit in selected cities in Ghana. By employing multinomial logit regression analyses on a sample of 372 SMEs, a major finding is that Artisans have much urge for informal credit compared to retailers whiles wholesalers prefer universal banks and non-bank financial institutions to informal source of credit. The study found that experience, business size, loan size and wholesale have positive relationship with universal bank whiles artisan has negative relationship with universal bank. Also, experience, business size and loan size were found to have positive relationship with non-bank financial institution whiles wholesale has negative relationship with non-bank financial institution. The study recommends that universal banks should introduce artisans to group lending since they may not have collateral.
Keywords: Source of Credit; Handicraft subsector and SMEs.
Vietnamese Family Business in Vietnam and in Poland. Comparative Analysis of Trends and Characteristics.
by Nguyen Hoang Tien
Abstract: Enterprise and entrepreneurship are well-known phenomena that have their history of research and development of over 300 years. However, family business and family entrepreneurship are still under-researched subjects in the literature of economics and management in both developed and developing countries. Based on the study of management literature on family business, both in research and in practice, this article is an attempt to construct a theoretical framework to be used in a comparative empirical analysis of family businesses, their familial character in the context of different Vietnamese communities, at home and overseas. As a result of research and analysis, similarities and differences of those family business groups are revealed to draw interesting conclusions and to propose recommendations for business environment and authority to help this specific kind of business activity to prosper and better perform in the future.
Keywords: Family business; family entrepreneurship; Vietnam; Poland.
Exploring State Interventions in Entrepreneurship Development in India: Evidence from Jammu and Kashmir
by Zahoor Ahmad Paray, Naresh Singla
Abstract: The Indian government has been promoting entrepreneurship vehemently from last three decades, Institutions were established and programs were launched. Jammu and Kashmir Entrepreneurship Development Institute of India (JKEDI) as part of this series of institutions has been working comprehensively in making entrepreneurship a common phenomenon among the masses. The purpose of this paper is to highlight the impact of entrepreneurial initiatives by the state government with the support of JKEDI towards the creation of new enterprises in Bandipora district of Jammu and Kashmir in India. Primary data has been collected with a structured schedule from 100 new JKEDI sponsored entrepreneurs from the district. Both qualitative and quantitative information was collected and analysed with simple statistical tools and analysis of the interview. The findings show that there is a positive impact of training, financial support and consultation for the overall development of entrepreneurship in both urban and rural areas of the district in particular and state as a whole.
Keywords: Jammu and Kashmir; Entrepreneurship; JKEDI; New enterprises; Service; Manufacturing; Employment; India.
The Effect of Small Business Entrepreneurship on Poverty. Evidence from U.S. Rural Counties
by Gibson Nene, Melaku Abegaz
Abstract: Small businesses are generally considered important for poverty alleviation. Existing literature on the relationship between entrepreneurship and poverty is focused mainly on urban communities. This study contributes to the literature by examining the effect of small business entrepreneurship on poverty rates across 604 U.S. rural counties for the period 2010 to 2012. Our empirical results show that entrepreneurial activity employing less than 20 workers (0 to 19) is associated with lower poverty rates across the rural counties. Findings on businesses that employ 20 to 99 workers did not appear to affect poverty during the study period. The results suggest that microenterprises play an important role in alleviating poverty in rural U.S. counties.
Keywords: entrepreneurship; poverty; small businesses; rural counties; U.S.
Three Dimensional Concept of familiness in Family-owned Businesses: Evidence from Myanmar
by Nayzar Aung, Youji Kohda
Abstract: This qualitative study explored the unique resources of family-owned businesses (FOBs), viz., familiness. Although familiness has been analysed from multiple perspectives, the role of family originated resources has still been neglected. Six cases of analysis revealed that five embedded resources of families are generative of familiness and able to develop capabilities for business. We also found that different family natures generate two different business behaviours, i.e., stable familiness (tradition-based family customs with inward-orientation behaviours) and flexible familiness (modern-based family customs with outward-orientation behaviours). This suggested that familiness may serve as a strategic resource to gain competitive advantages and it might help to maintain the core competency of businesses. Thus, this study aims to share our knowledge as feedback to the businesses for encouraging their socio-economic development and these findings offer benefits as human resources for businesses.
Keywords: family-owned business; familiness; resource; business behaviours; competitive advantages.
EXPLAINING INFORMAL ENTREPRENEURSHIP IN CROATIA: A SOCIAL ACTOR APPROACH
by Collin Williams, Slavko Bezeredi
Abstract: In recent years, a social actor approach has emerged to explain informal sector entrepreneurship. Grounded in institutional theory, this asserts that formal institutional failures lead entrepreneurs to view participation in the informal sector as acceptable, which results in the prevalence of informal entrepreneurship. The aim of this paper is to evaluate this social actor approach. Reporting the results of 521 face-to-face interviews with a nationally representative sample of entrepreneurs in Croatia, this finds a significant association between entrepreneurs participation in the informal economy and the non-alignment of their views with the formal rules, and that the formal institutional failings significantly associated with the acceptability of informal entrepreneurship include their perception of poor quality public services, a lack of tax fairness, corruption and political instability. The implications for theory and policy are then discussed.
Keywords: informal economy; shadow economy; underground economy; entrepreneurship; tax morale; institutional theory; transition economies; Croatia.
ENTREPRENEURSHIP IN PERU: A SWOT ANALYSIS
by Raina Rutti, Fernando Garcia, Marilyn Helms
Abstract: The purpose of this research is to use the SWOT analysis to examine Perus country conditions and identify areas for potential sources of entrepreneurial opportunities. Findings indicate Perus main drivers of its economic activities are the energy, agriculture and tourism industries. However, insufficient infrastructure, crime, corruption, poor education and poverty limit economic development. Opportunities for entrepreneurship exist through a diversified economy with a favourable business environment. Although current entrepreneurial activity is mostly concentrated in the retail, hotel and restaurant sector, there is potential to increase entrepreneurial activity within the main economic activities as foreign investments are expected to increase Perus export-driven industries. Because Perus government efforts to support entrepreneurship and entrepreneurship education have been stagnant in the last decade, we offer recommendations for policy makers to increase entrepreneurial activities based on training and motivation to improve business conditions that would promote and encourage entrepreneurial behaviour.
Keywords: Peru; Latin America; emerging economies; entrepreneurship; SWOT analysis; opportunities; development.
The perceptions of individuals aged 50 years and older towards engaging in entrepreneurial activities
by Reham El Tamimi, Nadia Sweis
Abstract: Aging population and the increasing of dependent ratio have attracted researchers to call for senior/older entrepreneurship as a late career alternative.
This research aims to overview the perceptions of Jordanians aged 50+ years regarding entrepreneurial activities, and their effect on intentions to engage in these activities.
This objective was achieved through analyzing data for this group that was collected by Global entrepreneurship Monitoring (GEM) for Jordan in 2004, 2009 and 2016 using descriptive, binary logistic regression and generalizing a comparison across years.
Results revealed that individual perceptions followed by socio-cultural perceptions have the strongest effect on seniors intentions. Choosing entrepreneurship as a good career choice has been revealed to have the weakest effect between all types of perceptions across years.
This study presents new framework that described the relation between perceptions and intentions. It also proposes two new terms of entrepreneurship: Entrepreneurship the Dream and Golden Entrepreneurship, and recommends applicable solutions to boost them in Jordan.
Keywords: Entrepreneurship; Perception; Unemployment; Seniors; Jordan.
Special Issue on: Entrepreneurship, Migration, and Family in Peripheral Contexts - Avenues for Growth and Internationalisation
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.
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 transnational entrepreneurs (TEs), 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 in-depth interviews with TEs of Indian origin in the UK, and nine of their counterpart heads of transnational venture (TNV) operations, we explore the use of prior experience, and personal and industry ties in the founding of 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: 1) entering the home country; 2) 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; TEs; UK; India.
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 Berlin's ecosystem development as they enrich the supportive environment with diverse resources that local entrepreneurs cannot provide. We found that diasporans in Berlin reinforce the ecosystem's capitals and act as important 'interweavers' of such capitals to the unique and successful structure of Berlin's start-up ecosystem.
Keywords: start-up ecosystem; Berlin; diaspora entrepreneurship; bi-focality; mixed embeddedness.
Transnational intrapreneurship: opportunity development in transnational teams in the Nordic periphery
by Maria Elo, Zsuzsanna Vincze
Abstract: Transnational resources of entrepreneurs and employees foster firm's 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.
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 immigrant's 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; export; internationalisation; psychic distance; SME; language; cultural competence; cultural awareness; internationalisation knowledge; employer perspective; liability of outsidership; Sweden.
Practices in operating a small business in a host community: a social capital perspective of Chinese immigrant entrepreneurship within the South African business context
by Tinashe Tsungai Raphael 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 different forms of 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.
The role of family social capital in immigrants' entrepreneurial opportunity creation processes
by Quang Evansluong, Marcela Ramírez-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.
Keywords: immigrant entrepreneurship; opportunity creation; family social capital; entrepreneurial ideas; home country; host country; family duty; family trust.
From the periphery to the centre: start-up and growth strategies for minority diaspora entrepreneurs
by Indianna D. 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 USA 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: entrepreneurship; diaspora; diaspora entrepreneurship; enterprise; diaspora business; networks; business start-up; co-ethnic; transnational entrepreneurship; liabilities of foreignness; internationalisation; Caribbean; family; periphery.
Refugee entrepreneurship: taking a social network view on immigrants with refugee backgrounds starting transnational businesses in Sweden
by Susanne Sandberg, Rebecca Immonen, Sara Kok
Abstract: The global world of today is characterised by movement, both voluntarily and forced. Still few studies have focused on immigrant entrepreneurs with refugee background and how they start and run transnational businesses in their country of residence. The purposes of the paper are: 1) to identify characteristics of refugee entrepreneurs; 2) to examine how the social network is utilised for starting up and running the business. Four refugee entrepreneurs, who started business with transnational characteristics in Sweden, are studied. Findings identify a time span before becoming self-employed, an urge to start own business, strong transnational ties, importance of COR ties and knowledge of the native language and legislation, as key for refugee entrepreneurs. Through positioning refugee entrepreneurship to existing research, and by taking a social network view on transnational business of refugees, novel theoretical and empirical contributions and implications are given.
Keywords: refugee; immigrant; diaspora; transnational; international; social network; entrepreneurship; social capital; human capital.
Special Issue on: Strategic Choices, Capital Structure, Innovative and Financial Performance of European SMEs
Innovation Orientation: an investigation of Italian SMEs producing building materials
by Francesca Rivetti, Mirella Migliaccio, Arturo Capasso
Abstract: In the last decades, the attention of scholars to innovation orientation has grown considerably. Despite this, a shared definition and a common view regarding this concept are still missing. The purpose of this paper is to shed light on Innovation Orientation (IO). On the basis of relevant literature, we investigate IO with specific reference to Italian small and medium enterprises producing building materials. Following the Benz
Keywords: innovation orientation; small and medium enterprises (SMEs); Italy; building materials.
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: Anatomy of Cultural and Creative Entrepreneurship Past, Present and Future
Balancing the creative business model
by Walter Van Andel
Abstract: Entrepreneurship within the creative industries is said to adhere to specific circumstances, rules and norms. This article takes on an exploration into the specific context of these industries as it investigates how the environment surrounding a creative organisation can create opposing demands on the organisation, leading to issues in long-term sustainability. The specific environment is operationalised by the creative biotope, which is composed of four spheres that influence a sustainable artistic practice, with each domain containing its own norms for legitimacy. Correspondingly, each domain exudes its own influences and pressures on the creative organisation on how to behave. This article postulates that the business model, defined as the active operationalisation of an organisations strategy, can be used as a balancing mechanism to mitigate these tensions. This leads to eight theoretically derived propositions on the relationship between the business model and tensions resulting from the creative environment.
Keywords: creative industries; creative entrepreneurship; entrepreneurship; business models; institutional theory; creative biotope; organizational tensions; institutional pluralism; sustainability.
Leveraging Historical Shifts in the World Economy: Systems of Patronage and Supportive Ecosystems for Creative and Cultural Enterprise
by M.J.R. Montoya, Claire Stasiewicz
Abstract: The following paper examines the history of patronage as it relates to creative and cultural entrepreneurship (CCE). How have patrons transformed into the creative ecosystem that currently supports creative and cultural work? How has the supportive ecosystem changed in relation to patrons of CCE? Applying three critical frameworks (art history, globalisation theory, and decolonial theory), this analysis describes and critiques patronage systems from the Renaissance to the contemporary era of CCE. We point out that while the systems of patronage have changed, the cultural logic of the patron has not. Strategic implications are discussed, including how to leverage new supportive ecosystems of CCE to address power dynamics in relation to patronage.
Keywords: Creative and Cultural Economy; Patronage; Globalisation; Art and Entrepreneurship; Critical Management Studies.
Mapping and thematic analysis of cultural entrepreneurship research
by Tobias Bürger, Christine Volkmann
Abstract: Two decades of cultural entrepreneurship research have passed, but until now relatively little is known about the development of this new field of scientific inquiry. To evaluate the progress, we conduct a large-scale scientometric-based systematic literature review on 350 publications. Results of our mapping analyses show that the research community devoted to cultural entrepreneurship research is rather individualistic and fragmented, characterised by an intense import of theory and a persistent lack of internal orientation. The thematic analysis reveals the emergence of seven dominant themes that can be grouped into three distinct clusters of cultural entrepreneurship research. However, despite recent advances in the academic institutionalisation and the dissemination of themes, the field is still in its infancy. In conclusion, the present study provides tailored recommendations on how to overcome the liabilities the field displays.
Keywords: cultural entrepreneurship; creative entrepreneurship; art entrepreneurship; systematic literature review; scientometric evaluation; bibliometrics; citation analysis; thematic analysis; contextualisation.
The role of education in the entrepreneurial ecosystem. The case of Made in Italy Tuscany Academy in the Florence fashion city
by Luciana Lazzeretti, Francesco Capone
Abstract: In the last few years, increasing interest has been devoted to the concept of entrepreneurial ecosystems (EE), underlining the role of entrepreneurs in local ecosystems. Notwithstanding the wide research on EE, the role of education in an entrepreneurial ecosystem is often overlooked, either in general or in the creative industries domain. Most works, in fact, have focused on the education of the professionals who deal with intangibles (such as designers, creative thinkers, advertisers, etc.), while the role of other creative artisans and production experts (modellers, for instance) has not received the appropriate attention. We contribute to the existing debate on entrepreneurial ecosystems and education analysing the ecosystem of a manufacturing fashion city, in an attempt to answer two main research questions: a) To what extent does the education of creative artisans matter in a manufacturing fashion city? b) And how can it contribute nurturing the local EE?
We analyse the case study of the Made in Italy Tuscany Academy (MITA), a technical higher education school situated in Scandicci (close to Florence), where world level fashion brands, such as Gucci, Ferragamo and Prada, are localised. We studied the ego-network of MITA with the help of social network analysis (SNA) through a questionnaire administered to 115 students over a period of seven months in 2015. The results underline the crucial role of the school in the education of creative artisans for the famous local fashion firms and in sustaining the local entrepreneurial ecosystems.
Keywords: education; creative artisans; fashion city; Florence; Made in Italy Tuscan Academy (MITA).
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.
Risk-taking behaviour of family firms: Evidence from Tunisia
by Dorra ELLOUZE, Khadija MNASRI
Abstract: Using a unique database of 87 Tunisian non-financial firms over the period 1998-2014, we analyse risk-taking behaviour of family firms. We find evidence that family ownership is positively related to corporate risk-taking. But family firms undertake less risky projects when the manager is not a member of the family or when the founder is no longer active in the firm. Our results show also that in these cases, family ownership becomes negatively associated to risk-taking. Finally, we find that family firms take more risk only when they belong to diversified groups, especially those operating in several industries.
Keywords: Family ownership; Risk-taking; Corporate governance; Group affiliation.
Does Board Gender Diversity Affect Firm Performance?
The Mediating Role of Innovation on the French Stock Market
by Manita Riadh, ELOMMAL NAJOUA, DANG Rey, Saintives Camille, Houanti L'Hocine
Abstract: Based on the resource dependency theory, this article investigates the relationships among board gender diversity, innovation, and firm performance. Specifically, this article examines the mediating role of innovation, which may explain how board gender diversity is related to firm performance. Using a sample of 120 SBF companies from 2009 to 2012, the results indi-cate a negative effect of board gender diversity on innovation. In addition, we do not find evidence of a mediating role of innovation within the board gender diversityfirm perfor-mance relationship.
Keywords: Board of directors; diversity; innovation; gender; corporate governance.
Financial crisis and private equity performance in France
by Amel SAHLI, Sabrina KHEMIRI
Abstract: This study aims at analysing the performance of the private equity industry in France taking into account the financial subprime crisis. Based on a sample of 339 private equity funds, the results show that the financial crisis negatively and significantly impacted the performance of private equity funds. Development capital funds and buy-out funds experienced a significant decline in their performance after the crisis. Results show a better resilience of small funds in comparison to larger ones. The bigger funds suffered from a severe drop in their performance after the beginning of the financial crisis.
Keywords: financial crisis; private equity; performance; internal rate of return; France.
Market Microstructure and Securities Values: Empirical Evidence from the Tunisian Stock Market
by Abderrazak Elkhaldi, Nada BEN MARIEM
Abstract: This study proposes to examine the price reaction of a sample of stocks listed on the Tunisian Stock Market following their transfer between Continuous trading and Fixing trading from January 2005 to January 2017 by analysing the evolution of their cumulative abnormal returns during the period surrounding the transfer event. Our empirical tests yield two important results; First, they contradict the claims on the improvement of returns after the transfer of frequently-traded stocks from Fixing to Continuous trading. Second, they reveal evidence about the absence of any improvement in returns following the transfer of infrequently-traded stocks from Continuous to Fixing trading.
Keywords: Market microstructure; Trading systems; Cumulative Abnormal Returns (CAR).
An Empirical Evidence of Up-Gradation need in Islamic Banking Sector of Pakistan
by KIRAN JAVARIA
Abstract: Islamic banking has been gaining popularity in recent past years. This research study examines the need of up-gradation in Islamic banking of Pakistan where mainstream of population about ninety eight percent are Muslims. The need of up-gradation in Islamic banking was examined in different segments like people perception about Islamic banking, Islamic banking and micro finance and Islamic banking regarding agriculture. Present study adapted the structured questionnaire from different studies and explored irreconcilable aspect of selected variables. Questionnaires were distributed to bankers and customers in 6 big cities of Pakistan (Lahore, Karachi, Islamabad, Rawalpindi, Quetta and Peshawar) by simple random sampling. The researcher collected data from 986 correspondents by visiting different banks. Conclusion of this study discloses that Islamic banking lack policies regarding microfinance and agriculture related product and services which need to be solving to up-gradate banking system in modern prospect.
Keywords: Islamic banking; Up-gradation; Customer’s awareness level; Perception; comparative; Microfinance Policies; Agricultural Products; up-gradation policies.
Internal Corporate Governance Mechanisms and Intellectual Capital Disclosure: Evidence from Tunisia.
by Mondher Kouki, Mariem Boucherb, Abderrazek Elkhaldi
Abstract: This paper examines the effect of internal corporate governance mechanisms on Intellectual capital disclosure. Using data of 27 non-financial listed Tunisian firms, the current study provides evidence in support of the non-linear relationship between corporate governance and Intellectual capital disclosure. The empirical results show that the structure and the way the board of directors functions are systematically significant factors determining intangible capital disclosure. The empirical tests indicate that managers, majority shareholders as well as institutional shareholders have a significant effect on the informative transparency of intangible capital. These results seem to corroborate the view that an increase in corporate governance mechanisms has a positive effect on voluntary disclosure. Furthermore, tests of the non-linear hypothesis show that an increase in the number of board members up to 9, and an increase in the number of majority shareholders up to 67% have a beneficial effect on intangible disclosure. However, as these variables increase beyond a turning point, the effect inverts and cuts off the improvement of voluntary disclosure of intangibles.
Keywords: corporate governance; Intellectual Capital; Disclosure; Board size; ownership structure.
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.
Women on the board and dividend payouts, the moderating effect of institutional ownership in France
by Nawel Fendri, Salah Ben Hamad
Abstract: This paper investigates the effect of institutional ownership on the relationship between the characteristics of the directors board and dividend payouts after the law enforcement on mandatory female quotas in France. We test our hypotheses on a sample of French listed firms belonging to the SBF 120 index over the period 2009-2014.
We find that the enforcement of the law on female quotas on the boards of directors significantly reduces dividend payouts of firms non-dominated by institutional investors. It has, however, no significant effect on firms paid dividends which are controlled by institutional stockholders.
Tests of the moderating effect of institutional ownership reveal that the latter does not interact with the board independence and CEO duality. These characteristics have each one an independent positive effect on dividend payouts.
On the other hand, institutional ownership negatively moderates the effect of the board size on dividend payouts; but, it positively moderates the impact of the new quota of women directors on dividend payouts. Institutional investors are powerful in monitoring the firm management and hence motivating the large number of directors to retain cash. On the contrary, the new fractions of women directors on these boards assume independent roles in forcing insiders to distribute more dividends. Therefore, profiles and competencies of these new directors could not certainly be the same in all firms.
Keywords: Agency costs; dividend payouts; corporate board of directors; law on mandatory female quota; women directors.
Special Issue on: Socio-emotional Wealth and Entrepreneurial Performance of Family Firms
Socioemotional wealth and innovativeness in Italian family firms: what happens when the leader is a latest-generation member?
by Valentina Lazzarotti, Rafaela Gjergji, Federico Visconti
Abstract: In this study, we attempt a further step in understanding the effect of different socioemotional (SEW) dimensions on family firm innovativeness by focusing on a particular player, i.e. the young leader who belongs to the last generation of family managers and who is increasingly engaged in the firm management. After surveying young leaders noneconomic goals with respect to those of senior members in a sample of Italian family firms, such goals are analysed in relation to the level of firm innovativeness. Obtained through a hierarchical regression, results show that two SEW dimensions above all characterize young leaders when they foster innovation: a low emotional attachment on one hand, a high attention to nurture binding social ties on the other.
Keywords: family firms; socioemotional wealth; young generations; intra-family succession; innovativeness.
The influence of socioemotional wealth on firm financial performance: evidence from small and medium privately held family businesses
by Maria J. Martínez-Romero, Ruben Martinez-Alonso, Pilar Casado-Belmonte
Abstract: By integrating literature on firm performance, family firms and socioemotional wealth (SEW), this paper empirically analyses how different SEW dimensions influence firm financial performance in privately held family businesses. The findings from a population of 173 family firms reveal that two SEW dimensions, i.e. identification of family members with the firm and renewal of family bonds through dynastic succession, exert a negative and significant impact on financial performance. Therefore, this study provides a better comprehension of the relationship between family involvement and financial performance and complements the partial view offered up until now, by introducing the SEW approach, its multidimensional nature and the effects of its various dimensions.
Keywords: Socioemotional Wealth; Financial Performance; Privately held family firms; family influence.
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.