J. for International Business and Entrepreneurship Development (14 papers in press)
Factors affecting the performance of women entrepreneurs in SMEs: a case study of Punjab, Pakistan
by Hafiz Yasir Ali, Muhammad Khalid Khan, Muhammad Asrar-ul-Haq
Abstract: Women entrepreneurs play a vital role in the economic development of any country. However, certain factors affect the performance of women entrepreneurs that vary from culture to culture. The present study is an effort to examine and highlight those factors that have significant impact on the performance of women entrepreneurs and their characteristics in SMEs. Data is collected from 307 women entrepreneurs with response rate of approximately 83% using survey questionnaires. Data analysis is conducted through SPSS 21.0 and AMOS 22. Results show that economic, social, and legal and administrative factors significantly affect the performance of women entrepreneurs. The present study will help women entrepreneurs to get knowledge about factors, which may affect their performance. This study may help the government to increase the number of women entrepreneurs and encourage them to play their role in sustainable growth of economy by removing their economic, social and legal obstacles.
Keywords: entrepreneurship; women entrepreneur; performance; SMEs; Pakistan.
The role of video marketing in the modern business environment: a view of top management of SMEs
by Tanja Sedej
Abstract: In the 21st century modern business environment, video marketing has been becoming the centre of attention of strategic marketing planning and the trend is still on the rise. In order to plan and execute video marketing effectively, companies need to follow trends and consequently be aware of effective new marketing options that will provide maximum business results. This article tackles those issues and provides fresh empirical data on video marketing and its role in the modern business environment. It also provides an insight into video marketing trends and possibilities that are considered crucial for the near future. The evaluated and analysed data were gathered on the basis of research carried out in 2018 among 45 top managers of small and medium-sized companies that have been doing business globally.
Keywords: modern business environment; video marketing; marketing communication; digital trends; video communication; brand empowerment.
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
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.
Special Issue on: “New Paradigms in International Business”
Greenfield investment vs. merger and acquisition as an entry strategy in Mexico: the case of Austrian companies
by Manuela Sandler, Vito Bobek, Anita Macek, Tatjana Horvat
Abstract: Over recent decades, Mexico has become a very attractive destination for FDI. When opening a wholly-owned subsidiary, firms can establish local presence through either greenfield investment or merger and acquisition (M&A). The aim of this paper is to make recommendations to Austrian companies that want to establish a wholly-owned subsidiary in Mexico. An empirical study in the form of qualitative semi-structured interviews was conducted in order to learn from the experiences of Austrian firms that have already taken the step into the Latin American nation. The size and the location of the Mexican market are the main motivations for Austrian companies to establish local presence; hence, Austrian investors can be defined as market-seekers. Also, the cost advantage is an important driver. Moreover, it is more common to build up the subsidiary from scratch. The ratio of greenfield investment to M&A is 9 to 1, simply because the value chains are not as developed yet in Mexico.
Keywords: wholly-owned subsidiary; FDI; greenfield investment; finance; merger and acquisition; Mexico; market entry strategy; location-specific investment motives.
International franchising in the fashion industry from the franchisor perspective
by Anita Macek, Johanna Kros, Vito Bobek
Abstract: Over the years, fashion retail franchising in emerging markets has seen a significant growth. Nevertheless, when a fashion brand decides to franchise its business, it also affects the control level over franchise store operations, which may influence a brands image and overall success. This paper investigates how international fashion companies can implement and assure brand standards and qualities among their franchise network in emerging markets. With exploratory qualitative research authors give more insight into the general motives for fashion companies franchising their businesses in emerging markets and the implementation of brand standards, assuring quality and control, and challenges in operating franchise stores. The research shows that the implementation process and assurance of brand standards and qualities involve high management and control skills, in which a solid, lasting relation between franchisor and franchisee is required. With relationship marketing, the brand standards implementation can be strategically planned and managed. Since follow up and control of brand standards and qualities are often inconsistent, the procedures must get standardised.
Keywords: franchising; fashion industry; emerging markets; brand standards.
A study on financial constraints of capital structure theories and dividend policy: evidence from the Indian capital market
by Sreenu Nenavath
Abstract: This study focused on the ability of firms to play this role is in major part determined by the structure of the financial system in which they operate, and in particular whether this financial system is able to make capital available efficiently to those firms that need it. The study examines the relation between the financing, investments, capital budget and dividend decisions, where the effect of financial constraints on the firms investment decision is investigated. The study focuses on how financial constraints affect different firms by investigating the extent to which the dependence on internal cash flow is affected by firm characteristics, such as size, age, dividend payout ratio, and market listing. This implies that firms retain earnings (RE) in order to ensure that they have sufficient capital to invest, confirming the initial result that Indian firms are financially constrained. This study adopted a descriptive design that aims at exploring the financial constraints of dividend policy and capital structure theories of companies listed at NSE and BSE in India. The data was obtained from financial statements and balance sheets of all the listed companies information available at the NSE and BSE secretariat for 10 years from 2005 to 2016.
Keywords: dividend; finance decision; capital market; financial system; profitability ratio.