J. for International Business and Entrepreneurship Development (9 papers in press)
The role of market orientation in the performance of born global firms: a multi-dimensional construct approach
by Tishani Herath, Hettige Don Karunaratne
Abstract: This study investigated the multi-dimensional effect of market orientation in the performance of born global firms. To date, the existing literature lacks empirical findings from developing country contexts and the conceptualization of market orientation as a multi-dimensional construct. Thus, this study contributes to fill the said gaps in the Sri Lankan context, a developing country. The conceptual model was tested drawing on data from 225 ICT (Information and Communication Technology) born global firms and the structural equation modelling (SEM) was performed to test the hypothesised relationships. The findings indicate that all three dimensions of market orientation, customer orientation, competitor orientation and inter-functional coordination, significantly and positively influence the performance of ICT born global firms in Sri Lanka. The findings suggest several insights into the market orientation and performance relationship.
Keywords: born global firms; market orientation; customer orientation; competitor orientation; inter-functional coordination; performance.
Women entrepreneurship in Bangladesh: influential aspects and their relationship in small and medium enterprise involvement
by Md. Zillur Rahman Siddique
Abstract: This study aims to recognise influential factors for women initiating their involvement in business and the relationship among those dynamics. Current research acclimates theoretical models and hypotheses based on past literature to examine the relationship among essential aspects. To test the hypotheses, this paper develops a structured questionnaire and pre-tests it before the survey. Using CFA and multiple regression analysis, this paper has identified that technological support (TECS), training (TRA), tax benefits (TAXB), contribution for family (CFF), feminism (FEM), and entrepreneur skills (ENS) are essential dynamics for women entrepreneurship development. TECS, TAXB and CFF motivate to participate in TRA, which enriches ENS for entrepreneurship involvement. Again, TECS influences FEM, and FEM affects ENS. Finally, entrepreneurship skilled women are likely to become involved in business. Results of the study will provide guidelines for stakeholders who are dealing with women entrepreneurship development and will aid in design strategies.
Keywords: women entrepreneurship; influential aspects; SME; women business involvement; Bangladesh.
A model for understanding the process of firm establishment in foreign loosely structured emerging markets
by Desalegn Abraha, Syeda-Masooda Mukhtar
Abstract: Our understanding of the process of firm establishment of foreign firms within the developing and emerging countries remains limited, while the market-specific context-driven nature of the firm establishment process is largely overlooked in the literature. We aim to address these omissions and explore the establishment process of a Spanish telecommunication firm, Telef
Keywords: internationalisation; firm establishment; Telefónica; Brazil; Chile; Spain; telecommunication; multinational; foreign market entry process.
Entrepreneurial action in the context of firms and managers operating internationally: an empirical study
by Abel Duarte Alonso, Seng Kok
Abstract: This exploratory study draws on entrepreneurial action theory, and proposes a theoretical framework to understand the main rationale for companies and their managers to have an international presence. The perspectives of managers representing four international companies operating in the state of Western Australia were examined through in-depth face-to-face interviews. The findings revealed various strong associations with the theory. Notably, while firms action was partly motived by the significance of Western Australias natural resources, equally important were strategic elements surrounding such decision, including matching or anticipating competitors moves. Entrepreneurial action was also manifested among participants, particularly in that their accumulated knowledge and expertise provided an ideal fit with their organisations goals. The framework can therefore inform future research, both from a practical and theoretical perspective.
Keywords: entrepreneurial action; international entrepreneurship; corporations; managers; natural resources; Western Australia.
Developing and validating opportunity creation as a construct: a preliminary study
by Adamu Ado Makama, Murali Sambasivan
Abstract: In this research, we develop and validate the construct, opportunity creation. We outline the theoretical foundations of opportunity creation. A review of research on opportunity creation gave rise to 21 manifest variables and three potential dimensions: (1) action and reaction, (2) individual differences, and (3) socially created. These variables were subjected to various validity tests using entrepreneurs from Nigeria. Initial data from 231 entrepreneurs from Nigeria was used to conduct exploratory factor analysis and identify the dimensions of opportunity creation and their items. In order to validate the construct and its dimensions, data was collected from 360 entrepreneurs from Nigeria and was subjected to confirmatory factor analysis. Based on the findings, we argue that opportunity creation is a reflective construct with three dimensions and 13 variables.
Keywords: opportunity creation; opportunity recognition; measurement validity; reflective construct.
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.
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.