J. for International Business and Entrepreneurship Development (12 papers in press)
Social ties, foreign market attractiveness and trust
by Maher Al Sayah, Charbel Salloum, Jacques Digout, Catherine Mercier-Suissa, Hajer Jarrar
Abstract: Throughout history, civilisations have expanded their territories in search of wealth and enrichment. Hence, foreign expansion has always been perceived as a way of increasing and acquiring resources, crafts, knowledge and markets. Currently, foreign expansion is mostly executed by firms driven by the same reasons. The foreign market attractiveness theory stands as a reference for any examination of multinational entrepreneurial expansion and related foreign venturing prospects. Our approach tests the validity of the theorys constraints when subjected to social ties linkage. This research analyses how entrepreneurs weigh information of a foreign market opportunity transmitted through socially tied sources. We found that the trust factor between the entrepreneur and his socially tied source of information negatively influences the foreign market entry attractiveness theory. Additionally, entrepreneurs with a strong social knowledge base and bonds investigate any information communicated to them by a socially tied source.
Keywords: social tie; entrepreneur; foreign venture; social capital; opportunities; source of information.
Founder effectiveness in sustaining financial performance: influence of family ownership
by Norazlin Ahmad, Irene Wei Kiong Ting, Le Thi My Hanh
Abstract: This paper aims to investigate the association between the founder-CEO and the level of firm financial sustainability in the presence of family ownership by using a unique dataset of publicly listed construction firms in Malaysia from 2009 to 2017. Our regression results show that the founder-CEO and family ownership significantly and negatively affect financial sustainability, which is proxied by operational self-sufficiency. However, their negative effects are alleviated when the founder-CEO and family ownership interact. These results show that the founder-CEO may be ineffective in sustaining the financial performance in the construction industry. This study calls for greater examination of founder effectiveness under the influence of family ownership.
Keywords: financial sustainability; founder-CEO; family ownership; founder effectiveness; construction firms.
International diversification and economic development in a regional context: a dynamic capabilities approach
by Abel Duarte Alonso, Seng Kok, Michelle OShea
Abstract: This exploratory study proposes a theoretical framework grounded on the dynamic capabilities approach to facilitate understanding of the role of managerial resources and dynamic capabilities in international diversification (ID) initiatives in a changing business environment in the context of Western Australia. Data were gathered through interviews with representatives of this states chambers of commerce, government agencies and town halls. While the identified ID strategies will not replace the states ubiquitous mining industry, these were nevertheless perceived as significant contributors to its future economic performance. The strategies primarily emphasised the potential and value of further developing tourism, international education, innovative and technological resources, and premium agricultural products. The proposed framework provides an interpretative and guiding tool, which highlights the strategic importance of a regions alternative resources as contributors of its diversification, economic development, and competitive advantage. In addition, the study will discuss various implications from the findings and identify future research strands.
Keywords: dynamic capabilities; country/region attractiveness; economic potential; Western Australia.
The role of social commerce in online purchase intention: mediating role of social interactions, trust, and electronic word of mouth
by Amirreza Konjkav Monfared, Mohammad Ghaffari, Mohammadreza Barootkoob, Milad Mohebali Malmiri
Abstract: Given the technological development in the current world, social commerce is very important for business. Social commerce paves the way for the easy shopping and thereby consumers trust to the online purchases can be increased. As a result, consumers intention to word of mouth and online purchase will be increased. This is why the present study aims to develop a model for business success in the online environment. In particular, the study aims to investigate the effect of social commerce and social interactions on consumers trust, electronic word of mouth, and purchase intention. For this purpose, 300 consumers of Digikala Company were surveyed. Structural Equation Modelling (SEM) was used for analysing the research data. For this purpose, both SPSS and SMART-PLS were used. Our findings revealed that ratings and reviews, as one of the constructs of social commerce, significantly affect social presence, informational support, closeness, and familiarity and do not affect emotional support and purchase intention significantly. Recommendations and referrals, as the second construct of social commerce, affect social presence, informational support, closeness, familiarity, and purchase intention significantly. In addition, social presence, informational support, emotional support, closeness, and familiarity affect trust significantly. Another part of our findings showed that emotional support affects trust significantly; trust affects the electronic word of mouth significantly; electronic word of mouth affects purchase intention significantly; informational support does not affect purchase intention significantly. The results of this study can be helpful for electronic marketing professionals in terms of consumer online purchase process management.
Keywords: social commerce; social intersections; electronic word of mouth; trust; online purchase intention.
The antecedents and the outcomes of the firms dominant logic: the dynamic managerial capability perspectives
by Md Imtiaz Mostafiz
Abstract: The firm's dominant logic is one of the most critical elements of the firm to make resource allocation and deployment decisions. Drawing on dominant logic theory and dynamic managerial capability, this study articulates the antecedents and the outcomes of the practice of the firms dominant logic. The paper proffers that entrepreneurial sensing, seizing, and transforming capabilities play a very crucial role as antecedents to the firms dominant logic and subsequently improve organisational performance. Eight propositions have been developed to conceptualise the research model. Entrepreneurs should have a higher magnitude of dynamic managerial capabilities to increase their abilities to bootstrap resources, which leads to better dominant logic in order to attain superior performance. The outcome of the research will not only benefit academicians but also assist policymakers by providing profound insights that aim at linking and integrating diverse sets of policies pertaining to the creation of entrepreneurial ventures.
Keywords: dynamic managerial capability; firm’s dominant logic; entrepreneurship.
A comprehensive model of factors influencing green entrepreneurial intentions in the Jordanian context
by Sara Haddadin, Mohammad Al Khasawneh
Abstract: This research aimed to provide a better understanding related to the factors that affect entrepreneurs' decisions to start a new green business. Limited research, to the best of our knowledge, has been done regarding green entrepreneurial intention (GEI), therefore, this research will fill this particular gap within the existing entreprenurship literature. The newly developed model consists of 11 independent variables and one dependent variable; the model is theoretically based and leads to new relationships regarding GEI. A quantitative data collection method has been used. A five-point Likert scale survey was distributed to students of universities in Jordan. Data was analysed by using SEM run by AMOS software program. The findings of this research showed that eight variables (personal attitude, green environmental awareness, PBC, self-efficacy, perceived advantage, complexity, perceived feasibility, and green entrepreneurial support) have a significant influence on GEI in the Jordanian context. In contrast, the research found that the remaining three variables (prior experience, moral obligation, and observability) do not have impact on GEI. The newly developed model is theoretically based and creates new GEI relationships.
Keywords: entrepreneurship; intention; green entrepreneurial intention; students; Jordan.
Entrepreneurial attributes and intention among management students: a longitudinal approach to the evolution and applicability of conceptual and empirical constructs
by Vikas Gautam, Arati Basu, Anuradha Basu, Teena Singh
Abstract: In the era of technological disruption and automation, job creation for the aspiring youth is a challenge for all countries across the globe. Yet technology is offering immense opportunities for the new startups and venture creation for those who have intentions. This research is an attempt to adopt the theoretical constructs to investigate whether or not Indian aspirational youth of management education is being motivated to entrepreneurial intention. We have used six constructs on students' perceptions on (business environment, business knowledge, social norms, self-efficacy, entrepreneurial intentions and future choice of career) for two-period analysis to evaluate the effect of one-year management education. Data are collected through survey method at the entry point of students for two-year PGDM course and after one year. We used paired t-test to find the mean difference with reference to entrepreneurial intentions due to one year of management education. Moreover, we employed higher order structural equation modelling to test study hypotheses. In conclusion, we pointed out inadequacies of present entrepreneurial intention models and direction of future research for improving efficacy of entrepreneurial intention model and its influence on pedagogy development of higher education.
Keywords: entrepreneurial intentions; business environment; business knowledge; social norms; self-efficacy; future choice of career.
Inclination for internationalisation, a key driver to explain the speed of international market entry through the moderation of effectuation decision logic: a study on small and medium software firms of Bangladesh.
by Imtiaz Masroor, Dr. Md. Nur Alam, Khan Abdullah Adnan, Israt Jahan
Abstract: Inclination for internationalisation refers to the extent to which entrepreneurs intend to expand business in the international market, which has an impact on the entry speed to the international market. Behavioural intent usually leads the entrepreneur to real action, which is also affected by the decision-making approach taken by the entrepreneur. Moreover, the interplay between behavioural intent and speed of internationalisation can be moderated by the decision-making approach as it helps entrepreneurs to process the information. The purpose of this paper is to capture the complex interplay between the inclination to internationalise, internationalisation speed and effectuation. The data of the study were collected through a structured questionnaire from 150 IT entrepreneurs of Bangladesh selected using non-probability convenient and judgmental sampling during April-June 2016. Structural Equation Modelling (SEM) was used to find the relationship between constructs. The study result showed a positive association between inclination for internationalisation and internationalisation speed. The study also showed significant moderating impact of the effectuation decision-making approach on the relationship between the inclination for internationalisation and internationalisation speed. The effectuation decision approach positively moderated the relationship between the inclination for internationalisation and internationalisation speed.
Keywords: inclination for internationalisation; effectuation; internationalisation speed; PLS-SEM; decision-making approach.
Diversity, institutions, and entrepreneurship
by Abu H. Ayob
Abstract: Recent trends in globalisation have shown significant human migration. Subsequently, diversity in society changes local demographics. Although much research has discussed the effect of diversity on various domestic affairs, little is known about the real impact on business activities, particularly how institutional factors might affect the interaction. This study examines the impact of ethnic, religious, and linguistic diversity on the rate of entrepreneurial entry by considering the institutional context, both formal and informal, as the boundary conditions. Analysing multisource data from 88 countries aggregated between years 2010 and 2014, we found that ethnic and linguistic diversity impedes business formation, in contrast to religious diversity which spurs entrepreneurial entry. In addition, institutional variables of control of corruption, trust, and entrepreneurial culture are positively related to entrepreneurship. Lastly, the effects of diversity on entrepreneurship are moderated by some but not all institutions. This study provides important insights for all stakeholders to address contemporary issues such as labour mobility and migration.
Keywords: ethnic diversity; religious diversity; linguistic diversity; control of corruption; trust; entrepreneurial culture; entrepreneurship.
Exploring the influence of home country factors on rapid internationalisation of emerging multinational companies
by Osama Al-Kwifi, Shatha Obeidat, Abdulla Hamad M A Fetais
Abstract: This research explores home country influence on successful internationalisation of emerging multinational companies. We considered Qatar Airways and Emirates Airways as two companies from different countries with similar economic structures. Interviews with five experts in the airline industry revealed that four home country factors have produced significant competitive advantages, allowing both carriers to rapidly internationalise their activities and become key players in the global aviation industry. These home country factors are the location of the country, rapid economic development, government support, and influence of related industries.
Keywords: emerging economies; emerging multinational companies; home county effect; government support; economic development; competitive advantage.
Entrepreneurial intention among female university students in Oman
by Abdelghani Echchabi, Mohammed Mispah Said Omar, Abdullah Mohammed Ayedh
Abstract: The aim of the study is to identify the factors that influence the entrepreneurial intention among female students in Oman. The study used a survey questionnaire to collect data for a sample of 384 respondents in Oman. The study ensured that the major country regions and universities are covered. The collected data was analysed using partial least square (PLS) method as well as basic descriptive statistics. The findings revealed that perceived behavioural control and personal attitude were the main factors that influence Omani female students entrepreneurial intention. Attitude to risk, facilitating conditions and subjective norm were found to have no significant impact on entrepreneurial intention. The focus on female entrepreneurship is both timely and necessary worldwide and particularly in Oman. The findings have significant theoretical and practical implications that would certainly improve the entrepreneurship activities among female undergraduate students in Oman.
Keywords: entrepreneurial intention; EIQ; theory of planned behaviour; Oman.
Ethical fibre and psychological contract of social entrepreneurs
by Shilpi Sharma, S.P. Sahni
Abstract: In difficult economic times for a nation, entrepreneurs have been observed to innovate and generate value out of new products and services (Saifan, 2012). Entrepreneurship innovation consists of identifying environmental opportunities and exploiting them in a manner that maximises business productivity for their personal profit as well as resolving an impending social issue for a greater societal cause (Ajagbe et al., 2015; Dabor et al., 2015; Goodpaster, 2007). It is widely acknowledged that ethics and morality are central to social entrepreneurship research, but there isnt a clarity or objectivity in the measures of ethical fibre underpinning social entrepreneurship (Fuentess and Valenzuela-Garcia, 2019). There is only a presumption that since social entrepreneurship aims at creating new social value, it would be ethically and morally viable (Osorio-Vega, 2019). Ethical challenges in the domain of entrepreneurship primarily centre around efforts to balance between personal profit making and societal benefit (Covey, 1998; Fulmer, 2004; Robbins et al., 2000; Vduva et al., 2018). Of the many facets of entrepreneurship under investigation, the ethical fibre of entrepreneurs is hugely under-investigated (Florin et al., 2003; Zhang et al., 2003). It is evident that even today, well-known organisations rely on gut feeling for assessing the ethical orientation of entrepreneurs. The difficulty in assessing ethical orientation is due to a lack of consensus amongst practitioners and researchers in objectifying ethical fibre in the context of entrepreneurship (Chell et al., 2016). It goes beyond the written, legal contracts. This paper argues that the subtle, relational and behavioural aspects of employees' and employers' expectations from each other serve as an effective metric for a reliable assessment of the ethical orientation of entrepreneurs. Such implicit levels of unwritten expectations are referred to as psychological contract, which is of a much greater relevance in small and medium enterprises in today's millennial times. A breach of a psychological contract would encourage an employee to break the rules of the written employment contract and reduce their work efficiency (Guchait et al., 2015; Morrison and Robinson, 1997; Thomas et al., 2016).
Keywords: ethics; entrepreneurship; social entrepreneur; psychological contract; ethical fibre; business ethics; social responsibility; corporate social responsibility.