International Journal of Entrepreneurship and Small Business
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International Journal of Entrepreneurship and Small Business (187 papers in press)
Regular Issues
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.
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.
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
Abstract: Abstract 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.
DOI: 10.1504/IJESB.2019.10012561
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.
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.
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
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.
Interplays between Mother and Entrepreneurial Identities in the Succession Process: When Mom is the Founder and Passes the Baton
by Francesca Cesaroni, Amaya Erro-Garces, Annalisa Sentuti
Abstract: This study aims to understand how women entrepreneurs involved in a succession process as incumbent manage their double identities of entrepreneur and mother, and how these two identities interplay. The paper aims also to reflect on the role of the father in a succession process where the founder is a mother. Two longitudinal case studies from Italy and Spain are analysed. In both cases, the main character is a woman who founded a business and recently passed the leadership to her children. Results show that these women were able to effectively manage their double identities with positive effects for the succession process. Moreover, while in a traditional succession process, with a father as founder, the mother acts as mediator between incumbent and successor, in our cases the need for a third actor to act as a mediator disappeared and fathers had no role because a dyadic mother-children relationship emerged.
Keywords: women entrepreneurs; women-owned family businesses; mother and entrepreneurial identities; mother-children succession; father's role; business transfer; family business; passing the baton; succession process; case studies.
Community level impact of solar entrepreneurs in rural Odisha, India: The rise of women led solar energy based enterprises
by Boidurjo Mukhopadhyay, Rodica Ianole
Abstract: Contemporary research in the area of renewable energy based entrepreneurship has largely ignored studying the effects of women led solar businesses in a regional context, particularly rural areas. While there are studies recognising entrepreneurship as a key instrument in bringing in regional transformation and thereby development, very little insight has been provided to gain an understanding of solar entrepreneurship and its effect at regional levels. This research explores the community level impact of women led solar businesses by using an exploratory qualitative method and carrying out semi-structured interviews and participant observation on solar entrepreneurs in rural Odisha, India. The paper offers empirical analysis from discussions led by thematic analysis method that introduces the varied impact of women led solar entrepreneurship on rural Odisha and how that is evidently realised at various levels as well as time scales.
Keywords: solar entrepreneurs; renewable energy technologies; India; community empowerment; rural development; women entrepreneurs;.
What determines self-employment profits? Evidence from India
by Bhaskar Jyoti Neog, Bimal Kishore Sahoo
Abstract: The present paper contributes to the limited literature on the factors affecting self-employment performance in the developing country context of India. The study uses the Indian Human Development Survey (IHDS) panel data for the years 2004-05 and 2011-12. The study employs Ordinary Least Squares (OLS) regression to analyse the determinants of profitability, making efforts to correct for potential endogeneity and selection bias in the earnings function. Attempts to correct for endogeneity is made using the instrumental variables method as well as using lag values of potentially endogenous variables in the earnings model. The findings point towards a significant influence of role models, capital constraints, human capital and the market environment on firm performance. However, social networks are not found to influence firm profitability significantly. Further, earnings are found to be significantly lower for female-headed firms and firms owned by socially-marginalized groups.
Keywords: Self-employment; profits; endogeneity; human capital; social networks; credit constraints; caste; gender.
Strategic orientations, hypercompetitive environment, and entrepreneurial alertness of small firms: evidence from the central region of Mexico
by Héctor Montiel-Campos
Abstract: Entrepreneurial alertness (AE) is an essential concept in entrepreneurial opportunities research. However, there is relatively little empirical evidence on its precursors. This study examines entrepreneurial orientation (EO) as a precursor to EA in small firms and the moderating influence of market orientation (MO) on that relationship. The study hypothesises that a hypercompetitive environment moderates the complementary effects of EO and MO on EA. The theoretically developed research model is tested using the survey data of 135 small manufacturing firms from the central region of Mexico. The results support a positive influence of EO on the components of EA concerning scanning and search, as well as evaluation and judgment, and indicate that the influence is stronger when MO is included under the conditions of a hypercompetitive environment. Interestingly, EO and MO do not positively influence the association and connection component of EA unless a hypercompetitive environment is present.
Keywords: entrepreneurial orientation; market orientation; hypercompetitive environment; entrepreneurial alertness; small firms.
APPLICATION OF FUZZY ANALYTIC HIERARCHY PROCESS IN MULTI-CRITERIA DECISION-MAKING OF VENTURE CAPITALISTS
by Monika Dhochak, Prince Doliya
Abstract: The purpose of this study is to investigate the venture capital investment process in an emerging market like India. In the venture capital industry, a decision to invest in a new venture has emerged as a proactive measure where certain factors are directly or indirectly involved in the investment process. This study aims to determine the factors of the venture capital investment process that may influence the multi-criteria investment process of venture capitalists. Firstly, we used the exploratory factor analysis to identify and analyse the consistency of several factors that may facilitate the adoption of multi-criteria decision-making (MCDM) techniques in an Indian venture capital industry. Secondly, fuzzy analytical hierarchal process (FAHP), a most suited technique for MCDM to handle the fuzziness, vagueness and multi-dimensionality, was adopted to assign the weights and prioritise the pre-defined criteria and sub-criteria. These findings indicate that venture capitalists investment decision does not emphasise solely on entrepreneurial activities, product and market; however economic and regulatory environment also plays a significant role in the venture capitalists investment decision-making process. The priority weight of the factors such as entrepreneurs characteristics, economic environment, product and financial constraints facilitates the relative importance of the pre-defined factors. Based on these criteria, entrepreneurs may recognise their strengths in respective criteria before approaching a right venture.
Keywords: Venture Capital; Investment decision-making; Multi-criteria decision-making (MCDM); Fuzzy analytical hierarchal process (FAHP).
Women in Family Businesses: Utilizing Assistance for Success
by Jim Cater, Marilyn Young, Pooja Krishnan
Abstract: As women in family firms experience challenges in leadership, we explore how sources of assistance and networking have been valuable to their success. Using a case study approach, we interviewed respondents from 18 US family firms in diverse industries. Respondents explained the importance of receiving assistance and guidance from both internal and external sources. We identified important types of needed information and external assistance sources. We generated four propositions from our study and noted the positive effect of close family ties and the negative effects of gender bias and family conflict.
Keywords: family business; family firm; women; gender bias; conflict; assistance; networking; leadership; case study approach; qualitative.
Impacts of Socio-Cultural Practices on Family Support System for Rural Women Entrepreneurship Development in Nigeria: A Comparative Analysis
by Catherine Akinbami
Abstract: This paper examined existing support system from family members and its effects on rural women entrepreneurial activities. It also assessed the effects of cultural practices on support received by the rural women entrepreneurs in Southwest and Southeast Nigeria. Concurrent mixed method, involving the use of quantitative and qualitative strands in a single phase was employed. Descriptive and thematic analyses were done through SPSS and Atlas ti respectively. Findings revealed that some forms of support system exist in both regions but the degree of access differs. Results also showed that socio-cultural practices have great influence on women entrepreneurship development. As a result, most women are unwilling to encourage their children to take over current business ventures. Consequently, husbands in particular, are encouraged to de-emphasise cultural norms which hinder business transformation into family businesses for sustainable entrepreneurship growth, sustainable rural family economic empowerment and poverty reduction. This research provides comparative baseline data for further study.
Keywords: Entrepreneurship Development; Support System; Sustainable Family Business; Rural Women; Socio-cultural Practices.
Strategic symbiotic arrangements: how can contract breweries help change a local market into part of an integrated broader market?
by Renato Chaves, Marcos Rego
Abstract: The impacts of the craft beer revolution reached Brazilian beer industry in the first years of this century. The evolution of the craft beer segment is paving the way to the development of different forms of organising in Brazil, such as contract brewing, designed for firms that do not own physical brewing facilities. This form of organising has several combinations, which vary according to the firms value proposition. Contract brewing may be a reflection of open strategy practices, which affect both organisational structures and ownership forms. This research on the contract brewing business model attempts to advance our understanding of strategic symbiotic arrangements in this particular industry. After examining how contract breweries are operating in practice, we were able to group the business models key components into two different configurations Symbiotic and Transitional, whose main challenges are closely related to their interdependencies with a production partner and their interorganisational strategy.
Keywords: Symbiotic network; symbiotic arrangement; interorganisational strategy; strategic alliance; business model; open strategy; contract breweries.
Female social entrepreneurship in Indonesia: A critical literature review
by Prameshwara Anggahegari, Gatot Yudoko, Bambang Rudito, Hendrati Dwi Mulyaningsih, Veland Ramadani
Abstract: This is a literature review paper related to female social entrepreneurship in Indonesia by using content analysis methodology. Based on papers related to female involvement in social entrepreneurship, there are some gaps within current literature that we tried to analyse. Most research in social entrepreneurship is considered as blurry areas where a female is categorized as the other' type of entrepreneur. This condition is also occurring in Indonesia. Even if females are described in the literature, most researchers focus more on the physiological and psychological differences between male and female. Females are rarely being highlighted as the subject of change. They were not seen as the change makers that have contributed more to the social values creation that emerged from their involvement in social entrepreneurship. The contested problems came from the Western point of view that has given some limitation to female empowerment in Indonesia. Therefore, we provide a new focus that emphasises the Eastern tradition to portrait how female involvement in social entrepreneurship may give more impact to the social value creation
Keywords: Social entrepreneurship; female empowerment; social value creation; Indonesia.
COMPLEMENTARY RELATIONSHIP BETWEEN TYPES OF INNOVATION IN SMEs: THE CONTEXT OF KOSOVO
by Lura Rexhepi Mahmutaj, Slavica Rocheska, Besnik Krasniqi
Abstract: Complementary innovations within Small and Medium-sized enterprises (SMEs) has been a subject of great interest among authors. This study aims to examine the complementary of different types of innovations with specific focus on SMEs in the Kosovo market. The empirical bases for this analysis are derived from 24 qualitative case studies from innovative SMEs in Kosovo, coming from service, manufacturing and trade sectors by using NVivo software. The majority of interviewed enterprises developed two innovations simultaneously, meaning that the introduction of one innovation led to the introduction of another one. Product and process innovations are complementary in most of the cases, and the firm prefers a simultaneous adoption. Nevertheless, the findings show that in few cases, there is a combination of other types of innovations.
Keywords: Complementarity; Innovation; Small and Medium Enterprises.
POSITION OF DAUGHTERS IN FAMILY BUSINESSES: THE ROLE OF MOTIVATION
by Anna Akhmedova, Rita Cavallotti
Abstract: This article addresses the underrepresentation of daughters in high-level management positions in a family business. The study takes a constructivist approach to explore the psychological link between daughters and family, illuminating the psychological processes behind a daughters acquisition of a high position in the family firm. A multiple case study method is used to analyse the patterns of motivation of three groups of daughters in family businesses. Findings suggest that there are important differences in terms of extrinsic, intrinsic and ethical motivation among daughters that occupy different positions. These differences affect the way daughters interact with their business environment and how they justify themselves as leaders and viable successors. Thus, this research points to the specific motivational mechanisms that underlie career outcomes of daughters in family businesses. Furthermore, the research indicates motivational synergies between intrinsic and ethical motivation that are important in the family business context.
Keywords: family business; succession; gender; motivation; next generation career; women career progress.
Intra-family SUCCESSION IN SOUTH AFRICAN TOWNSHIPS: WOMEN'S ACCOUNT OF THE DESIRABLE ATTRIBUTES
by Robertson Tengeh, Ziyanda Phikiso
Abstract: Although it is customary that family-owned businesses would want to ensure an effortless trans-generational succession, more often the transition efforts are not effective in circumstances where the incumbent does not know what to look for in a possible successor. Aim: focused on women, this article investigates the qualities and attributes that family-owned businesses desire in a potential successor. Methods: The study adopted a mixed research design that incorporated the use of quantitative and qualitative research methods. This paper is the outcome of quantitative data that was solicited and collected from 120 participants using a semi-structured questionnaire. From a qualitative perspective, the article benefited from the open-ended questions that were embedded in the questionnaire. The Statistical Package for Social Sciences (SPSS) software was utilised to analyse that quantitative data and was complemented with the elements that were drawn from the qualitative data. Results: The results suggest that the incumbents prefer the potential successor to have management skills; leadership skills; ability to relate well with other members of the family; show interest in becoming a successor, possess greater aptitude than other members of the family; understands the business vision, be trustworthy; be committed to the business; has management experience; must be related by blood or law and able to harmonise the interests of the family with those of the business. Value/contribution: reliant on women, this narrative highlights the womans position in a male-dominated discourse, besides suggesting that an understanding of the attributes desired by the incumbent will positively impact on the succession process in South African townships.
Keywords: Family-Owned Business; Succession Planning; successor attributes; South African townships.
Generational Differences in Self-Employment: Work Characteristics, Health, Work-Family, and Satisfaction
by Nicholas J. Beutell, Jeffrey W. Alstete, Joy A. Schneer, Marianne M. O'Hare
Abstract: This paper examines self-employment by generational cohort (Millennials, Generation X, Baby Boomers, and Matures) in relation to work variables, health variables, work-family variables, and life and job satisfaction. The analyses used data from a national probability sample (n = 738 self-employed), the National Study of the Changing Workforce. Significant differences were found between generational groups of self-employed for most of the major study variables (e.g., hours worked, job pressure, work-family conflict). We also found that the study variables (e.g., autonomy, turnover intentions) predicted job satisfaction in self-employment. Limitations, implications, and directions for future research are discussed.
Keywords: Entrepreneurship; job-demands resources; JD-R; self-employment; small business; SME; work-family.
Successor Attitudes in Family Firms
by SALMA FATTOUM
Abstract: The aim of this paper is to highlight the impact of the predecessors role on the successors attitude following his integration into the family business. We deploy a combined model that helps to elucidate the process (Le Breton-Miller, Miller and Steier (2004)) and a typology developed by Bauer (1993) that helps to characterize the actors. Four attitudes are distinguished: belated independence, unconstrained independence, forced conservatism and agreed conservatism.
Keywords: successor; predecessor; attitude; family business; succession role.
Internationalisation, risk-taking and export compliance: A comparative study between economically advanced and developing country
by Vahid Jafari Sadeghi
Abstract: The global economy involves enormous internationalisation activities that provide untapped opportunities for entrepreneurs and businesses. In a rapidly evolving economic environment, it is inevitable to adopt an integrated policy for presence in global markets. Although in recent years, the business environment has been characterised by the liberalisation of emerging nations and their increasing contribution to the global economy there are still some restrictive regulations that all international businesses need to comply with. In this regard, export compliance is defined as a multidisciplinary and specialised framework, which supports enterprises in compliance risk management. This research aims to explore the essence of this phenomena in the international business economy and investigate the consequence of the failure to comply with the international regulations as the potential risk that firms might face in their global activities. Similarly, this paper aims to explore the risk-taking practices of small ventures in Italy and Iran. Consequently, the methodology of this paper relies on the multiple case studies, in which the data were gathered through conducting interviews with the CEOs/s managers of small and medium-sized enterprises (SMEs) in Italy and Iran. The result of this study compares Italian versus Iranian businesses in regards to the concept of risk-taking and export compliance and introduces the context-based, universal and ineffective factors.
Keywords: internationalisation; export compliance; risk-taking; Case study; Iran.
Failure prediction models: Development and comparison between the multivariate discriminant analysis and the support vector machine for Tunisian companies
by Mraihi Fayçal
Abstract: In this study, we try to develop a model that would predict corporate default using a multivariate discriminant analysis (ADM) and a support vector machine (SVM). The two models are applied on the Tunisian context. Our sample consists of 212 companies operating in different industries, of which 106 are 'performing' companies and 106 are "failing" companies, observed over the 2005-2010 period. The results of the use of a battery of 87 ratios showed that 16 ratios can build the model and that liquidity and solvency have more weight than profitability and management in predicting distress. Despite the slight superiority of the results provided by the SVM model, on the control sample, the results provided by the two models are good either in terms of correct classification percentage or in terms of the stability of discriminating power over time and space.
Keywords: distressed firms; forecasting model; multivariate discriminant analysis; support vector machine.
Entrepreneurial burnout: a systematic review and research map
by Carolin Palmer, Sascha Kraus, Norbert Kailer, Linda Huber, Zeynep Hale Oner
Abstract: Entrepreneurial activity is gaining importance regarding its implications for societal, national, and regional development as well as economic growth. As a professional activity, entrepreneurship is defined by unique job characteristics particularly with regard to the experience of high passion, drive and spirit. Moreover, entrepreneurship is highly demanding in several domains and requires individual coping skills. In such context, the sustainability of entrepreneurial activities requires physical and mental health and well-being of entrepreneurs. Yet, burnout is a rarely discussed topic in entrepreneurial research. Hence, burnout of entrepreneurs has to be examined within the realities of their multidimensional professional context, which is shaped by nature of entrepreneurial activity, work characteristics as well as entrepreneurs personality. This literature review systematically examines and critically analysis 23 quantitative and qualitative articles about burnout in the context of entrepreneurship. Integrating the findings, we provide a research map for and thereby hope to stimulate further research to extend our knowledge about the challenging phenomenon of entrepreneurial burnout and its extensive consequences and implications.
Keywords: entrepreneurship; entrepreneurial; burnout; stress; psychology.
Evaluating the Systematic Risk and Its Impact on Profitability and Liquidity; Evidence from European Countries
Abstract: The purpose of this research study is to establish if there is systematic risk and its impact on profitability, liquidity of the banks in Europe. This study used various financial performance ratios of 100 banks operating in different European countries to investigate if such relationship exists over five year period. Before working on evaluating the systematic risk we need to know that in order to shape up the financial structure of any firm, the operating performance is of crucial importance. It is expected that the outcomes of this research are of importance both to investors as well as bank managers, as these findings will help them in fully analyzing the effects of various strategic choices keeping in view related to risk profile of banks. Some implications of the potential policy which based on the new capital requirements in view of the risk-leverage relationship have also been discussed in this study.
Keywords: Financial Risk; Business Risk; Profitability; Liquidity; systematic risk; financial performance; capital requirements; risk-leverage.
The impact of access to finance and institutional barriers on SMEs performance: difference between the formal and informal sector
by Kujtim Zylfijaj, Dimitar Nikoloski
Abstract: This paper explores the impact of access to finance and institutional barriers on small and medium sized enterprises (SMEs) sales. For the purpose of this empirical study two samples were used for both formal and informal SMEs in Kosovo. The sample of formal SMEs consists of 1000 businesses, while the sample of informal SMEs consists of 250 businesses. The logit models were employed to find out the impact of access to finance and institutional barriers on SMEs performance in both sectors. Findings indicate that access to finance and institutions affect the performance of SMEs in the formal and informal sector. Although, findings show that access to finance and institutional barriers affect the performance of formal SMEs more than informal ones. The evidences show that formal SMEs outperform informal ones in terms of sales.
Keywords: SMEs; access to finance; institutional barriers; sales; performance; formal sector; informal sector.
Capital Structure Analysis of MSMEs with reference to Start-up and Later Stages
by Purva Hegde Desai, Nilesh Borde, Mitesh Nagar
Abstract: MSMEs (Micro, Small and Medium enterprises) worldwide differ on the parameters of definitions and the set of challenges faced. Although MSMEs continuously enhance the economic activity of a country, the difficulty in accessing finance slows down there growth and development. They find it more difficult to raise finance at an initial stage as compared to a later stage. Given this background, this research focuses on finding the impact of some selected factors like size and sector on the capital structure of MSMEs, in emerging economies like India. It affirms that regarding capital structure, MSMEs do not differ among themselves and can be regarded as common cohort or a single unit of analysis. The empirical testing provides evidence that capital structures of MSMEs differ across initial and later stage, with reference to sector and age classes.
Keywords: MSME; Capital structure; Debt Equity Ratio; Size; Sector; Initial stage; Later stage.
Who Earns more: Job Creators, Solo-Entrepreneurs or Employees? Empirical evidence from Visegrad Countries.
by Ondřej Dvouletý, David Anthony Procházka, Marzena Starnawska
Abstract: Entrepreneurship research in Central and Eastern Europe is still under-developed. One of the most important questions of individuals pursuing entrepreneurship as a career choice is, do entrepreneurs earn more, compared to employees? Is there a premium for undertaking the risks of self-employment? Our study aims to contribute to this research by comparing the earnings of employees, solo-self-employed and self-employed with employees (job creators). For this purpose, we utilise data from the two recent harmonised waves of the European Survey on Working Conditions (2010 and 2015). The analysis is focused on Visegrad countries (Czech Republic, Hungary, Poland and Slovakia) and is empirically based on the OLS approach and nearest neighbour matching approach. Controlling for some key individual characteristics, we find positive returns to entrepreneurship. However, we show that the OLS approach over-estimates the size of the returns to entrepreneurship and therefore we methodologically rely more on the matching approach. Based on the obtained matching estimates we show that self-employed without employees earn on average 6.7% more when compared to employees, and to self-employed with employees even on average 22% more than employees. Finally, once we compare solo-self-employed and entrepreneurs having employees, we find that job creators earn on average 22% more when compared with solo-self-employed.
Keywords: Income; Returns to Entrepreneurship; Self-employed with Employees; Solo-Self-employed; Employees; European Survey on Working Conditions (EWCS).
Success Factors of Academic Entrepreneurship Education: A New Approach
by Oliver Thomas, Torsten Wulf
Abstract: Discussions about whether entrepreneurship education stimulates entrepreneurial intentions and start-up activities continue due to weak empirical evidence and stagnating start-up rates. Based on the review of extant research in entrepreneurship, we argue that the success of entrepreneurship education largely depends on the contents and teaching methods applied. We propose that teaching the right contents and methods comprises three different factors: a rational component for teaching relevant knowledge and skills, an emotional component for evoking the inspiration of the participants, and a social component for supporting the development of the participants social networks. We present a number of practical, hands-on recommendations on these topics and develop a proposal for an ideal-typical entrepreneurship education curriculum. This paper is intended for university managers and program developers as a framework for designing successful entrepreneurship education programs.
Keywords: entrepreneurship education; entreprenurship program; entrepreneurship course; inspiration; social networks; learning; entrepreneurial skills; venture creation; venture formation.
The relationship between entrepreneurship education and entrepreneurial intention: Evidence from a transition country
by Edmond Çera, Gentjan Çera, Engjell Skreli
Abstract: Finding ways that foster entrepreneurship is a constant concern for policymakers. Education is seen as a key factor that may contribute in this regard. This study seeks to assess the relationship between entrepreneurship education and entrepreneurial intention in the context of a transition country. Using a dataset of 528 respondents, two groups (treated and controlled) were created following a quasi-experimental research design. To ensure the comparability of these two groups, propensity score matching and coarsened exact matching were performed. The study found a positive relationship between entrepreneurship education and entrepreneurial intention, which is consistent with previous studies. This research provides useful insights for policymakers and universities who are responsible for designing policies or curricula to encourage students to engage in entrepreneurial activities.
Keywords: entrepreneurship education; entrepreneurial intention; propensity score matching; coarsened exact matching; transition country; Albania.
Bank leverage choices of French SMEs: A quantile analysis
by Ramzi Benkraiem, Calin Gurau, Thi Hong Van Hoang, Amine Lahiani, Thuy-Luu Seran
Abstract: With a large sample of 24,825 firm-year observations of French SMEs in the 2003-2016 period, we investigate the drivers of bank leverage choices. A quantile regression modeling is used to consider the bank leverage distribution. This method is applied on three different sub-periods to examine the impact of the financial crisis. The results reveal that drivers of the bank leverage level vary in function of its distribution and of time. This helps explain mixed results of previous research in this field. The pecking order theory is suitable to French SMEs while performance is the most important criterion considered by banks.
Keywords: SMEs; Bank leverage; Quantile regressions; Nonlinearity; Crisis.
Impact of Bank Capital Regulation and GDP growth on profitability in commercial Small and Medium Banks: Empirical Study
by Shazaib Butt
Abstract: Abstract:We empirically examine the impact of Basel compliance and economic activity on the profitability of commercial small and medium banks of Pakistan during and post global financial crises of 2007-2008. Panel data setting is implemented using annual data from 25 commercial banks during the period 2007 to 2014. The data tested GDP growth rate and bank specific risk variables. We find strong evidence that market risk, nonperforming loans, NPLs and GDP growth rate have significant impact on the profitability of small and medium commercial banks
Keywords: Keywords:CAR; Basel Capital; Commercial Banks; NPLs; Credit Risk; Market Risk; Operational Risk.
Utilisation of information and communication technology among informal traders in Africa: A case of local economies in Nigeria
by Tochukwu Omenma, Ambrose N. Omeje
Abstract: Information and communication technology (ICT) is changing the face of business among the operators of formal and informal sectors. One school of thought argues that the informal economy is being dragged into the ICT-driven market system by multinational cooperation, while on the other hand, it is the convenience that has lured informal operators to the new market system. It is on this premise that this study investigated the extent of the utilisation of ICT among informal traders in Nigeria. The study applied a descriptive statistics method. We found that there is significant influence of mobile phones, online banking services and waybill systems on the business transactions of rural and semi-urban informal traders. The result indicates a positive correlation between the use of mobile phones and waybill services and the lower cost of business transactions by informal traders on one hand, and the higher profits on the other. The finding indicates that the majority of the informal traders do not rely on formal courier services because they deal in perishable goods that are not covered by insurance. The increasing utilisation of ICT infrastructure by the informal traders is linked to the introduction of global systems for mobile communication in 2003 and its penetration into the most rural communities in Nigeria. Though, ICT infrastructure has enhanced local economies in Nigeria, the availability of quality networks and coverages are limiting factors to the informal traders.
Keywords: information and communication technology; informal trade; entrepreneurship; local economy; Nigeria.
Predicting Entrepreneurial Intentions Among Postgraduate Students Using the Theory of Planned Behaviour: Jordan Case
by Mohammed Iqbal Al-Ajlouni
Abstract: The current study used the Theory of Planned Behaviour [TPB] to predict the intentions toward the entrepreneurship and identify insignificant antecedents for these intentions. The study targeted postgraduate students majoring in business and finance schools in the two top universities in Jordan. Through purposive sampling and completion of a self-administrated questionnaire, (308) respondents were included in the sample. Adopting a quantitative descriptive approach and Structural-Equation-Modelling with the use of Partial Least Squares, results reported that TPB predicted (41%) of variance in respondents intentions: attitudes toward behaviour and subjective norms were seen to be moderate-level significant antecedents, while perceived behavioural control was seen to be an insignificant antecedent; moreover, the entrepreneurship education programs significantly influenced the three antecedents. Following the results, implications and suggestions are discussed, directions for further research are suggested.
Keywords: Entrepreneurship; intentions; Theory-of-Planned-Behaviour; postgraduate students; entrepreneurship education programs; developing economies; Jordan.
GENDER AND EXPOSURE DIFFERENCES IN ENTREPRENEURIAL ATTITUDES OF INDIAN UNIVERSITY STUDENTS
by Dennis Barber III, Suhail M. Ghouse, Shanan Gibson, Michael Harris
Abstract: The process of entrepreneurship has undergone rapid changes in India. This includes a large IT segment driving the process and structural industry changes. The inclusion of women as entrepreneurs has generally been slow in India for several reasons. This study provides individual level data on the entrepreneurial attitudes of students in India and how gender and entrepreneurial exposure are related to these attitudes. Exposure was measured through previous work exposure, familial exposure or previous small business ownership. Entrepreneurial attitudes of 127 young adults at a university in India were measured with the Entrepreneurial Attitudes Orientation (EAO) survey instrument which is comprised of four subscales. The Indian males scored higher on all four subscales and the overall EAO score than their female counterparts. Of the three types of exposure only directly working with a small business in the past was associated with statistically significantly higher entrepreneurial attitudes.
Keywords: Entrepreneurial attitudes; Entrepreneurship; University Students; Gender; Exposure; India.
Artpreneurs' lessons to traditional business
by Marilena Vecco
Abstract: This paper aims to illuminate a new paradigm within cultural entrepreneurship that differs considerably from the accepted model. In recent years, an interesting trend has been observed - that of an increased appreciation of the arts within the field of business research and practice. The business world now turns to - and learns from the arts. The figure of the so-called 'artpreneur' will be analysed, focusing on their behaviour, skills and art-making processes, in order to identify which lessons have value for traditional entrepreneurship. What can business people and entrepreneurs learn from artists? Can we talk about a cross-fertilisation between arts and entrepreneurship?
Keywords: cultural entrepreneurship; artist; entrepreneurship artpreneur; creativity; behaviour; human core skills; emotional intelligence; aesthetic intelligence; design thinking.
The Impact of Horizontal Revolution on Small and Medium size Enterprises (SMEs) Owned by Women: The Context of the UAE
by Samia Kargwell
Abstract: In the forthcoming few years, the UAE would expect to experience a growth in the number of female entrepreneurs. There is stable increase rate of women business owners according to Global Entrepreneurship Monitor (GEM). As Social Media has become an important marketing tool for Small and Medium Size Enterprises (SMEs) around the Globe. Social media platforms have substantial increase in sales and improving advertising feature. It has led businesses to create a new extension and give them the characteristics of being more accessible and user-friendly. Therefore, the utilization of this technique as a global tool bring the power needed for success to SMEs owners with extensive demand and usage of social media platforms among youth in the UAE. It creates horizontal communication with consumers and, then more opportunities to businesses in the country with the use of popular social media applications for example, Facebook, Twitter, you tube, Pinterest and LinkedIn as effective marketing tools. The significance of social media emerge as a result of its effect on marketing and advertising budget and costs which allow small and medium size enterprises (SMEs)to compete with the big businesses and the reach customers over the globe . Therefore, the way businesses communicate with customers has changed drastically and become horizontal communication with consumers. A self-completion questionnaires were distributed to 150 female entrepreneurs and sophisticated SPSS was use to analyze the data. The implications will be useful for decision makers to provide facilities to increase the number of women entrepreneurs to escalate their contribution to the economy of the UAE.
Keywords: Keywords: Social Media; Horizontal Revolution; Women; Entrepreneurship; UAE.
Discovering an Entrepreneurs Journey from Idea to Reality: A Phenomenological Study
by Ashish Badola, Rakesh K. Agrawal
Abstract: Entrepreneurship is one of the key elements in Indians economic and socio-economic growth. In an effort to discover a new dimension to the entrepreneurship process transforming an idea to reality, the study attempts to discover new dimensions of the entrepreneurship process. The study finds that non-availability of the level playing field, opportunity relationship and inadequate tapping of skill set plays a significant role during an entrepreneurial action. The final outcome is contingent to trust and mutual understanding within the entire process.
Keywords: Entrepreneurship; Indian context; Venture creation; Phenomenology.
Entrepreneurship Behaviour of African Minorities in the UK: Demystifying Cultural Influence
by Abdullah Opute, Nnamdi Madichie, Sirak Berhe Hagos, Jafar Ojra
Abstract: The purpose of this study is to illuminate the role of culture (and feed in factors) on entrepreneurial orientation using a case illustration of two African social communities in the United Kingdom (UK). The study uses a combination of in-depth and semi-structured interviews with 18 African (Nigerian and Eritrean) entrepreneurs in the UK, to understand their psychological mindset, critical cultural artefacts, and entrepreneurial orientation influence. While the criticality of the cultural influence is observed to be pronounced in both social groups, the extent of family influence, age-based generational differences, individualism/collectivism propensity, acculturation propensity and extended implication with regards to the utilisation of the various forms of capital (social, human and financial) and entrepreneurial performance, were found to be highly contingent upon the post-conventional culture artefacts. The limited focus on social groups explored, and the qualitative research design of the study are key limitations that could be interrogated further using quantitative research design protocols. The study may also be further developed by exploring additional culture artefacts beyond those conceptualised in this study, as these may influence entrepreneurial activity in other cultural enclaves.
Keywords: Ethnic Minority Businesses; Mixed-Embeddedness; Culture (and acculturation); Forms of Capital; Family influence; War History; Colonialism.
Survival in the agri-food industry: Internationalisation and manager gender in Spanish SMEs
by Pablo Rodríguez-Gutiérrez, M. Dolores Guerrero-Baena, Mercedes Luque-Vílchez
Abstract: An analysis is presented of the survival patterns of both small and medium-sized firms in Spain, as well as the effects of the internationalisation of the firm and manager gender on firm survival. The study aims to shed some light from a gender perspective on the field of SME internationalisation and SME performance, examining the role of manager gender as a key determinant of business survival. The data comprise a sample of 5,095 agri-food SMEs. The Kaplan-Meier method is employed for a univariate analysis of survival, applying a linear regression for multivariate analysis. The results revealed that the SMEs were more likely to survive if internationalised and/or if their managers were women. The findings of this research may help provide a better understanding of the influence of manager gender on the internationalisation process of SMEs, which would assist policymakers in developing relevant and targeted export promotion policies and programmes.
Keywords: Firm survival; internationalisation; gender; agri-food industry; Kaplan-Meier.
Risk(ing) Sophistication: Towards a Structural Equation Model for Risk Management in Small and Medium-Sized Enterprises
by Ilka Heinze, Thomas Henschel
Abstract: The purpose of this paper is to highlight critical success factors for establishing sound and effective risk management in small and medium-sized enterprises (SMEs). In particular, our research tests the effect of personal risk propensity and financial planning sophistication and its interaction with an enterprise risk management system. Based on data yielded by a survey among 270 SMEs, we apply a structural equation model (SEM) to identify the critical success factors for comprehensive risk management in SMEs. Our results show that personal risk propensity and sophistication of financial planning have a significant effect on the quality of risk management. SME managers with a higher risk propensity show a significant better risk management sophistication in terms of risk management organisation as well as in the risk management process. We also show that the formalization of the financial planning in SMEs is positively associated with risk management sophistication. The study also explores the link of risk management sophistication and business performance. Although to date structural equation modelling is rarely applied in SME research, our results clearly indicate the suitability of the method. The paper also offers a new theoretical research framework which can be used by other researchers to study the risk management sophistication of SMEs in a comprehensive manner. Finally, the study provides some support for SME policy advisers and consultants on how to evaluate SMEs risk management efforts and tailor risk management trainings to the SMEs particular needs.
Keywords: risk management; risk perception; performance; SMEs; structural equation modelling.
IMPACT OF MICROENTREPRENEURIAL ACTIVITY: A CASE OF INDIAN ECONOMY
by Debasish Joddar
Abstract: Development of sustainable microenterprises considered as ideal paradigm to uplift the rural masses by reducing their vulnerability calls for an in-depth evaluation of desired impacts of microenterprise development programmers. Based on the primary data in selected districts of West Bengal the study attempts to assess the socio-economic impact of the microenterprises on their household with reference to the standard of living and seeks to demonstrate the status of the women and children with respect to the use of basic health and educational services. Compared to others, the superiority of the sustainable enterprises has been explored in terms of higher standard of living index as well as the better-off situation of the women of their family with respect of use of antenatal care and institutional delivery. On the contrary the alarming drop-out rate of children in the family of unsustainable enterprises needs to be taken into consideration.rnrn
Keywords: Microfinance; Microenterprise; Entrepreneurial activity; Impact; Sustainability; Standard of living; Educational services; Drop-out; Child labour; Antenatal care; Institutional delivery.
How small enterprises manage unexpected customer requests in B2B sales
by Kai Hänninen, Matti Muhos, Harri Haapasalo
Abstract: This article analyses upstream supply chain practices in small enterprises to determine how firms manage unexpected customer requests in business-to-business (B2B) sales situations. A small companys offer often fails to satisfactorily meet a customers needs in B2B sales situations. In such situations an upstream supply chain network plays an important role in advancing B2B sales negotiations. The selection of a new supplier is crucial if the existing supplier network is not able to respond within an acceptable amount of time. In small firms, well-managed supplier networks can ensure fast delivery. Selecting a new supplier during sales negotiation could be risky; however, potential risks could be mitigated by having a core group of suppliers who can expeditiously fulfil requests.
Keywords: Small sized enterprises; Sales; Customer preferences; New product creation; Supply chain; B2B.
GEOGRAPHIC DIMENSION, INFORMATION ASYMMETRY, AND THE SUCCESS OF CROWDFUNDING CAMPAIGNS
by Nessrine Omrani, Adnane Maalaoui, Charles Perez, Gael Bertrand, Rony Germon
Abstract: In this paper, we study the relationship between geographic distance, asymmetric informationrnand the success of crowdfunding campaigns. For this purpose, we collect data from thernKickstarter crowdfunding platform from 2012 to 2013. The sample contains 9,146 projectsrnfinanced by more than 300,000 funders in 165 countries. An ordinary least squares (OLS) modelrnwas used. Results show a positive and significant relationship between information asymmetryrnitems and the success of the crowdfunding campaign. This relationship is negative between therngeographic distance of the funders and the campaigns success, meaning that the farther thernfunder is located from the project the less is the probability of the campaigns success. Resultsrnalso show that the number of funders, the duration of the project, and the economic sector arernlinked to crowdfunding campaign success.
Keywords: Crowdfunding; asymmetric information; geographic distance; OLS.
Determinants of Informal Entrepreneurship in Africa
by Amanze Ejiogu, Obiora Okechukwu, Chibuzo Ejiogu, Andrews Owusu, Ogechi Adeola
Abstract: This study investigates the determinants of informal entrepreneurship in Africa. Using a cross-section of 21,954 firms from 47 African countries, the study estimates several multivariate models to examine the factors that are associated with the decision of firms to register at the start of their operation and the length of time to remain unregistered. The findings show that entrepreneurship in the informal sector is complex and context-bound as contextual factors unique to Africa, such as, corruption, political instability, crime rate, infrastructure (electricity and transportation), access to land and finance, influence the entrepreneurs decision to register their firm at the start of its operation. The length of time firms remain unregistered is shown to be positively correlated to access to finance and infrastructural availability and negatively related to crime and political instability. These results vary based on the size of the business with larger businesses being impacted less by these variables.
Keywords: Africa; Informal Entrepreneurship; Socio-Cultural; Corruption; Crime.
Sustainable development of social entrepreneurship Evidence from Vietnam
Abstract: This article delivers a full insight into interrelated concepts of social enterprise, social entrepreneurship and their sustainability issues. Despite different nature, determinant factors, motivation and purpose, as well as orientation towards sustain
Keywords: social entrepreneurship; social responsibility; social enterprise; sustainable development.
Portuguese textile association fostering the internationalisation of small and medium-sized enterprises
by Eric Costa, Antonio Lucas Soares, Jorge Pinho De Sousa, Maria Elo, Susana Costa e Silva
Abstract: The support and influence of industrial business associations (IBAs) for the internationalisation process of small and medium-sized enterprises (SMEs) is questioned. This qualitative case study on the textile industry in Portugal illustrates how SMEs are influenced by their IBA. Findings suggest that it has a preponderant role in supporting the international expansion of associated SMEs. Particularly, the promotion and organisation of trade fairs seem to foster first entries and continuous international expansion in the same way the IBA seems to influence their foreign market selection. However, SMEs feel that the IBAs work could still be improved by their facilitating more matchmaking processes, promoting collaborations, improving their seizing of available internationalisation opportunities, and providing more information about agents and distributors in foreign markets. Thus, we can say that, despite the Internet and global opportunities that firms can directly benefit from, the role of IBAs is still relevant for SMEs internationalisation, and there is still room for improvement.
Keywords: international business intermediaries; internationalisation; small and medium-sized enterprises; industrial business associations; internationalisation process; business networks; institutional networks.
Consideration Sets as Resources for Business Model Generation
by Eric Shaunn Mattingly
Abstract: Business models as outcomes for entrepreneurship are increasing in prevalence in pedagogy and practice. Instructors and entrepreneurs are focusing efforts on iterating potential ideas through a process of trial and error in hopes to produce working business models. However, such practices need to be better underpinned by theory so we can develop an understanding of how to identify more valuable opportunity ideas and how to progress them towards working business models with fewer trials and errors. This conceptual paper focuses on integrating extant conceptualisations of business models as interdependent activities with research on identifying opportunities as problem-solution pairings. While integrating those literatures, the present framework also details how reliance on Constrained, Systematic Searchwith its resource based view underpinningscan help individuals with entrepreneurial aspirations identify more valuable opportunities and progress them faster and with fewer trials and errors into working business models.
Keywords: business model; recombination; entrepreneurship; systematic search; knowledge.
Micro and small business risk-taking behaviour: Does religion matter?
by Ibrahim Fatwa Wijaya, Bambang Setiaji, Linggar Ikhsan Nugroho
Abstract: This study aims to investigate the impact of Muslim entrepreneurs religiosity on risk-taking behaviour, i.e., choosing a high-risk vs. low-risk lending product in Islamic banking. The authors used probit regression to test the role of entrepreneurs religiosity in choosing mode of finance in Islamic banking. Data were collected using the questionnaire method; 249 respondents from the Central Java province, Indonesia, took part in this survey. The respondents are both micro and small enterprises. The findings reveal that the religiosity level of entrepreneurs has determinant effects on the risk-taking behaviour pattern, i.e., the more religious entrepreneurs prefer to have a less risky mode of finance.
Keywords: Religiosity; risk-taking; Islamic banks; SMEs.
CAPITAL INVESTMENT DECISION IN GHANAIAN MANUFACTURING SECTOR: DO GENDER DIVERSITY AND EXPERIENCE OF TOP MANAGERS MATTER?
Abstract: This study sought to examine the effect of gender and working experience of top managers on investment decision in the Ghanaian manufacturing sector. World Banks 2013 Enterprise Survey data collected from 720 manufacturing firms in Ghana was used. The study employed binary logit model to examine effect of gender and working experience of top managers on investment decisions in the Ghanaian manufacturing sector. The study found that gender of the top manager, experience of the top manager, firm size, region of establishment and certified financial statement are the main determinants of capital investment decisions in the Ghanaian manufacturing sector. The paper revealed that women who are top manageress as compared to men who are managers are less likely to invest in capital. Similarly, the probability of a top manager investing in capital decreases as the mangers years of experience increases.
Keywords: Capital investment; manufacturing sector and gender diversity.
Italian SMEs and IPO Performance. An empirical analysis over a 10-year period
by Maurizio Dallocchio, Emanuele Teti, Matteo Perugi
Abstract: We investigate the performance of shares issued by Italian small and medium enterprises (SMEs) between January 2007 and August 2017. The empirical evidence shows that stocks traded on the AIM Italia market the market of Borsa Italiana devoted to the SMEs with high growth potential - significantly underperform comparable listed companies over the same time horizon. The cause is related neither to the limited size of the companies small firms significantly outperform larger ones within the sample nor to the tendency to inflate the economic results in the fiscal year before the IPO, but it is rather explained by the limited liquidity of most of the underperforming SMEs.
Keywords: Small and Medium Enterprises (SMEs); AIM Italia; IPOs; Performances; Small cap.
Female entrepreneurship as rupture: becoming a female entrepreneur in Sweden in neoliberal times
by Gabriele Griffin, Anneli Häyrén
Abstract: Neoliberal economies have fostered entrepreneurship through the restructuring and reduction of public sector employment, an emphasis on individual agency, and on becoming entrepreneur as a processual project of self. Female entrepreneurship as a situated phenomenon takes particular forms in this context. Drawing on empirical research on female entrepreneurs in Sweden, we suggest that becoming entrepreneur for our interviewees involves agency as a reaction formation to five phenomena: organizational restructuring processes, work conflicts in previous employment, sickness, family issues, and a view of life as a differently worked and lived project than encapsulated in conventional employment. Entrepreneuring here becomes rupture but also engagement with new entrepreneurial support structures, in this instance an all-female co-working hub. We challenge certain core assumptions about entrepreneurship, in particular the notion of entrepreneurs as young and solely future- and goal-oriented.
Keywords: female entrepreneur; mid-life entrepreneur; reaction formation; neoliberalism; work life cycle; entrepreneuring as rupture.
Funding Innovative SMEs Operating in Traditional Sectors
by Ronen Harel, Dan Kaufmann
Abstract: This study is a continuation of Harel and Kaufmanns research, who investigated the funding difficulties of Innovative SMEs in Traditional Sectors (ISTS) from the supply side. The current study aim is to assess the ISTS funding market-failure argument, from the demand side as well.rnThe findings based on an analysis of case studies show similar reports of lack of funding access, despite the great diversity and variety of the companies in the sample, as manifested in their activities across an array of industrial sectors, their levels of innovation, their present lifecycle stages, and their broad size and age range.rnThe in-depth interviews contribute to an understanding of the market failure from the personal perspective of the company executives, provided a first-ever opportunity to obtain sensitive, seldom-revealed information and data, and afforded the opportunity to shed light from a different perspective on the difficulties ISTS face in obtaining financing for innovation. rn
Keywords: SME; funding; innovation; traditional sectors; market failure.
Digitalisation and Internationalisation of SMEs in Emerging Markets
by Yan-Yin Lee, Mohammad Falahat, Bik-Kai Sia
Abstract: Digitalisation is one of the drivers for emergence of early internationalising firms. However, only limited empirical studies outline the mechanism of how these firms can benefit from digitalisation. To fill this gap, we explore how digitalisation benefits early internationalising SMEs and the determinants of digital orientation through case interviews of 20 SMEs from low and high tech industries in Malaysia. Our findings reveal the entrepreneur, product, firm, technology and market characteristics that determine the digital orientations of firms in international market. Firms with the relevant characteristics of determinants could leverage digitalisation for early and rapid internationalisation. The paper also highlights six interesting topics worth further exploration in International Entrepreneurship research.
Keywords: born global firms; brand orientation; digitalisation; digital orientation; early internationalisation; rapid internationalisation.
Explaining Gender Differences in Entrepreneurship: The Impact of Motivations, Success Factors and Business Training on the Performance of Microenterprises in Central Vietnam
by Quan Vu Le, Mai Nguyen Lisovich
Abstract: The objective of this study is to analyze and explain gender differences in entrepreneurship in Vietnam by measuring the impacts of motivations, success factors, and business training program for entrepreneurs on the performance of their microenterprises. A questionnaire administered to 110 female and 110 male business owners in Vietnam in 2016, data was collected in the central region of the country with a very high ratio of female entrepreneurs. This study confirms that there are gender differences with respect to the entrepreneurial motivations, perceived success factors, and the types of business training received by the entrepreneurs. The study also reveals evidence that business training provided to male and female entrepreneurs has different impacts on the performance of microenterprises owned by them. As a result, a one size fits all approach to training entrepreneurs may not be appropriate since not all types of training programs lead to the improvements of the performance of microenterprises.
Keywords: Entrepreneurship; gender; motivations; success factors; business training; performance; microenterprises; Vietnam.
THE SOCIAL DIMENSION OF NECESSITY ENTREPRENEURSHIP
by TESSIER CHRISTEL, FAYOLLE ALAIN
Abstract: This paper aims to propose a new perspective on Necessity Entrepreneurship (NE). This phenomenon is indeed widely considered in the literature as having no or a negative impact on economic growth and is therefore mostly depreciated by scholars. We argue that NE allows to socially integrate deprived individuals and increase their psychological and human capital, if adequate structures and public policies are in place. We have opened a new venue, in considering for the first time NE in the perspective of a knowledge development process, calling for a differentiated approach. Although NE proves to play a limited impact on shrinking unemployment, fighting poverty and reducing discriminations, its social role as inclusive tool for deprived individuals has been underestimated: efficient entrepreneurial Knowledge Management, skills and competencies development in a constrained context can have a positive impact on individuals and societies.
Keywords: Necessity entrepreneurship; entrepreneurial competencies; social capital; human capital; social entrepreneurship.
Trust, distrust and psychological ownership in strategic entrepreneurship-based tensions
by Ville-Veikko Piispanen, Kaarlo Paloniemi, Antti Kauppinen
Abstract: Several studies have considered the chief executive officer (CEO) and that persons advantage-seeking (AS) and opportunity-seeking (OS) activities, including the CEOs trust and distrust of employees of large firms. Nevertheless, prior research does not offer an approach that assesses the potential link between those concepts in the context of small and medium-sized enterprises (SMEs). This paper aims to fill this gap by examining tension regarding CEOs experiences in the business development (BD) of SMEs from the perspectives of AS, OS, trust (T), distrust (D) and psychological ownership (PO). The basis for a new theory is built here by first coding a CEOs narratives and recoding the material to the existing literature through cross-validation. The results of this study highlight that a CEOs strategic entrepreneurship (SE) activities, trusting and distrusting beliefs in board members (BMs) and PO affect the tension CEOs experience between the board members on an SMEs business development.
Keywords: CEO; tension; trusting beliefs; distrusting beliefs; strategic entrepreneurship; opportunity-seeking; advantage-seeking; psychological ownership; balance; business development; narrative.
Exporting and indebtedness in Spanish firms from the expansion to the great recession
by Antonio García-Tabuenca, Fernando Crecente-Romero, Federico Pablo-Martí
Abstract: This paper discusses the link between financial constraints and the behaviour of exporting and nonexporting firms in the period 2003-2012, which includes expansion (2003-2007) and crisis (2008-2012). A sample of 27,000 Spanish firms is used, of which 15,000 are exporters. We studied whether easy access to credit in the period of economic expansion or the challenging financial conditions arising from the crisis affected the competitiveness and internationalization of these firms. We find evidence that during the expansion and bubble, the decision to export was not related to sources of financing. We also find that after the onset of the crisis, a firms level of indebtedness had a negative relationship with its probability of exporting.
Keywords: Exporting firms; Balance sheet recession; Spain; Indebtedness.
At the Heart of Things: The Impact of Life-Partners on Entrepreneurs' Psychological Capital
by Ben Bulmash
Abstract: Given the uncertainties and challenges faced by entrepreneurs, psychological capital is now considered a leading factor in entrepreneurial longevity and success. However, since psychological capital has traditionally been considered a dispositional attribute, little attention has been given to the external factors that influence it. Based on the idea that psychological capital is a state rather than a trait, this study sought to test the association between life-partners support and strain and entrepreneurs mental states of optimism, pessimism, and self-esteem, which are three key psychological capital components. The interaction between life-partner support and strain was also examined. Results suggest that while both life-partner support and strain are linked to entrepreneur psychological capital, low levels of support result in the least favourable mental states, suggesting a support-buffering effect. This study provides important implications for all who are involved in entrepreneurial activities.
Keywords: Entrepreneurship; psychological capital; optimism; pessimism; self-esteem; life-partner; spouse; spousal capital; social capital.
Exploring individual entrepreneurial orientation through education in emerging market conditions: The case of Malaysia and Thailand
by Vasilios Stouraitis, Mior Harun Mior Harris, Markos Kyritsis
Abstract: The motivators that guide university students individual entrepreneurial orientation towards new venture creation are an emerging theme. The novel settings of entrepreneurship education the developing country context of South East Asia (Malaysia and Thailand) are used, while comparing them to key assumptions on general business in Asia and the west. A total of 332 participants were recruited. The items were reduced to five components using principal component analysis, and, using binomial logistic regression, shown to predict some of the variance in perceptions on individual entrepreneurial orientation in Malaysia and Thailand. The study shows that individual entrepreneurial orientation motivators can be separated into the distinct dimensions of which innovation, proactiveness, risk taking, and culture correlate with the the decision to become an entrepreneur in Southeast Asia. In addition, assumptions on business and education in the west and in Asia hold partially in Southeast Asia and entrepreneurial new venture creation particularly regarding risk and autonomy.
Keywords: Emerging markets;education;entrepreneurship;motivations;orientation;Thailand;Malayisia.
The Impact of Mexican Culture on the Human Resource Management Practices of Mexican-American Family Firms
by Jim Cater, Kevin James, Roland Kidwell, Kerri Camp, Marilyn Young
Abstract: Mexican-American family firms comprise one of the fastest growing family business sub-groups in the U.S. Effective use of human resources is important for the profitability of family firms and their capability for growth. We interviewed Mexican-American family firm leaders from 20 companies to gauge the extent to which the cultural dimensions of their country of origin, Mexico, were influencing the operation of their family firms. We found evidence that these cultural dimensions continued to influence Mexican-American family firm leaders. We present propositions regarding how Mexican-American family firm leaders retain and/or reduce their cultural ties to Mexico and if their HRM practices differ from other U.S. family firms. We discuss which cultural dimensions may affect Mexican-American family firm HRM practices. Then, we present ideas for future research as well as implications for practice for Mexican-American family firms.
Keywords: Mexican; Mexican-American; family business; cultural dimensions theory; human resource practices; qualitative approach.
Dynamic Capabilities in Subsistence Small Businesses
by Carlos Fernandez-Jardon
Abstract: Small business, created as a means of subsistence of the entrepreneur and their family, are called subsistence small business. They need to grow to improve the situation of poverty, especially in developing countries. This paper analyses a mechanism, based in relationships and closeness, to grow in subsistence small businesses from dynamic capabilities. SSBs elaborate dynamic capabilities to grow. In particular, SSBs use the human capital management to improve customer management and product and territory management. These two capabilities improve innovativeness that generate growth.
Keywords: Dynamic capabilities; Subsistence; Small business; Growth; Latin America.
Financing social enterprise in the United Kingdom: Responding to new challenges in competitive markets
by Walter MsWaka, Olu Aluko, Safaa Hussein, Armindo Dos Santos De Sousa Teodósio, Huifen Cai
Abstract: Social entrepreneurship activities continue to make a significant contribution to the development of the United Kingdoms (UK) economy and remain at the core of the governments strategies for ameliorating socio-economic deprivation across the country. Despite the growth of this type of business activity, a key area that requires further analysis is how social enterprises respond to the funding challenges posed by globalisation, declining state support and increased demands for social welfare interventions. These challenges also come at a time when the UK government is encouraging communities to explore innovative ways of tackling socio-economic deprivation, through innovative and sustainable business practices. Drawing on a qualitative case study approach of social enterprises in South Yorkshire UK, this research contributes to extant literature by scrutinising the operations of social entrepreneurs in resource-constrained environments. By employing components of Kirzners (1973) theory of entrepreneurship, the findings of this investigation highlight how opportunity spotting and innovation in financing strategies have enabled social entrepreneurs in South Yorkshire to widen their organisations sources of financial resourcing. This study is of particular benefit to policy makers and researchers in social enterprise.
Keywords: Equity investments; Funding; Innovation; Legal structures; Social enterprise; Social entrepreneur; South Yorkshire.
Learning from the Omagongo Cultural Festival about Entrepreneurship and Self Employment in Namibia
by WILFRED ISAK APRIL
Abstract: Omagongo festival is one of the most entrepreneurial initiatives of the Namibian Owambo people. The primary symbol for this festival is the marula tree, celebrated as it is a key source of an alcoholic beverage; which normally takes place during the harvest seasons from February to May annually. In addition, the tree is also used for shade and the making of the onjove oil to name a few. There is much to learn about self-employment, small business and entrepreneurship. This unique festival is hosted by almost ten ethnic (10) groups/clans annually in Northern Namibia, of which some were armed forces in the liberation struggle of Namibia 29 years ago. Numerous fighters with a great zeal or entrepreneurship lost their lives; and the stories of their entrepreneurial initiatives are little known and almost never told in the academic literature. Since 2017, the communities joined forces to hold an annual cultural festival where the entrepreneurial legacy of the tribes is celebrated. The stories of the Oshiwambo people are not well documented. The authors of this paper joined forces with the community at the annual Omagongo festival of 2018 and captured twenty (20) stories from entrepreneurs and local community members. These stories will give an overview of how they build capacity and make entrepreneurship work for the people. It is envisaged that a true story from the people will teach the reader about enterprise and livelihood in an independent Namibia and beyond. In addition in depth interviews focus groups and participant observation were also used.
Keywords: Namibia; Ethnic group; Omagongo; entrepreneurship; small business; self-employment and informal markets.
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: 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.
Cultural and creative entrepreneurship (CCE): towards a paradigmatic proposal?
by Christine Sinapi
Abstract: In the last decades, cultural and creative entrepreneurship (CCE) research has significantly developed, with strong acceleration since 2005. It is still however in search of a homogenous theoretical framework as it remains polysemous regarding its ontological postures, theoretical grounds, and research questions. In this context, our research objective is to investigate if converging trends exist in CCE research, which may signal the emergence of paradigmatic views. We question CCE connection to entrepreneurship research, its developing as a contextualised form of entrepreneurship, or, alternatively, as a research field per se. The research method consists of an analysis of recent CCE literature development, based on the concepts of paradigm and field of research as applicable to entrepreneurship research (Kuhne, 1963, Dana et al., 2008, Verstraete and Fayolle, 2005) and seeking converging trends regarding research methods, theoretical grounds, and research topics. From the literature development analysis, we identify a broadening of ontological postures and research projects, which embraces the traditional features of research in entrepreneurship, in terms of phenomenology (individual, process, organisation), theoretical grounds (innovation, economy, strategy), and topics (business creation, sustainability, value creation, business models, education to CCE), while incorporating sectoral contextualisation (in particular cultural value and the cultural vs. economic balance challenge). We also observe a shift in the topical perspective of the research, including a (re-) centring on CCE in se and per se (implications for the traditional economy becoming secondary), and acknowledging both the economic significance of the sector and its inherent sustainability tension. These findings suggest that paradigmatic views are emerging within CCE research, simultaneously anchored in entrepreneurship research and developing as a field of research per se. This research paves the way, in our view, for the development of a CCE research agenda that should be anchored in the emerging cultural value creation paradigm, addressing sustainability as a central question, and questioning tensions inherent in CCE between cultural and economic values, creation and sustainability, and the fundamental individual-collective-societal triptych.
Keywords: cultural and creative entrepreneurship; cultural value; paradigm; research field; sustainability.
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: Socio-emotional Wealth and Entrepreneurial Performance of Family Firms
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.
ENTREPRENEURIAL ORIENTATION AND INNOVATION SUCCESS IN FAMILY FIRMS
by Daniel Jimenez-Jimenez, Raquel Sanz-Valle, Jose Alberto Pérez-Caballero
Abstract: There is a general agreement that entrepreneurial orientation can significantly improve firms
Keywords: entrepreneurial orientation; new products success; family firms.
Exploring the side effects of Socio-Emotional Wealth. A multilevel analysis approach to the dysfunctional dynamics in family business succession
by Flippo Ferrari
Abstract: Current literature highlights that family firms have non-economic goals, pursuing Socioemotional Wealth (SEW), such as the desire to preserve business continuity and involving the next generation in family business. However, in pursuing non-economic advantages family firms also sustain non-economic costs, on individual, family group, and organizational levels. By adopting a qualitative protocol this study investigated a sample of 8 family firms, unveiling the roots of dysfunctional patterns resulting from business transmission specifically. Furthermore, findings highlight the strength of a multilevel approach in providing empirical evidence to support the idea that striving for non-economic goals could be a myopic behaviour, resulting in undesired long-term effects for generations involved in a business transmission process.
Keywords: family firms; business succession; socioemotional wealth (SEW); multilevel analysis; dysfunctional patterns;.
Values as Antecendents of Socio-Emotional Wealth Behaviour in Family Firms
by Philipp Julian Ruf, Petra M. Moog, Imanol Belausteguigoitia Rius
Abstract: Research has shown that family firms differ from their nonfamily counterparts in terms of strategic behaviour. Socio-emotional wealth (SEW) is a homegrown theory in this context explaining differences in decision-making by acknowledging the unique connection between a family and their business. This paper contributes to the ongoing research related to the theory of socio-emotional wealth by investigating individual, family and family business values as antecedents and underlying motivators for SEW behaviour, influencing strategic decision-making in family firms, directly and as a mediator via SEW. A qualitative study was performed to analyse this connection and the effects on strategic decisions made in family firms. The outcomes show that individual and collective family values are the main drivers of SEW behaviour, changing over time and leading to a different focus on the dimensions of SEW, which is then represented in the strategic decisions made in the family business.
Keywords: SEW; socio-emotional wealth; values; strategy; family business; family firm; decision-making.
Unpacking Socioemotional Wealth: Exploring the Origins of Affective Endowment in Founder Firms
by Jana Bövers, Christina Hoon
Abstract: This article aims to further clarify the socioemotional wealth (SEW) construct. By conducting a qualitative study we examine the roots of emotional endowment and personal SEW. The results of the case study involving 13 founding firms indicate that SEW develops in the early stages of a business life cycle. The study revealed two types of personal SEW priorities, namely achievement-related priorities and ties-related priorities. We propose that these different types of SEW priorities constitute a good predictor for explaining the transition of a founder firm into a family firm. This article contributes both to the research on SEW and on intergenerational intention by combining them in a unique way.
Keywords: Socioemotional wealth; founder firms; family business development; intergenerational intention.
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.
Special Issue on: Entrepreneurship in the Wine Sector
Disintermediation: The Optimal Distribution Strategy for Small Wineries?
by Sharon Forbes, Mark Wilson, Khalid Alsulaiman
Abstract: This study examines the utilisation of the disintermediation strategy by a family owned New Zealand wine business. A longitudinal case study approach was used to gather qualitative data about their distribution strategy. The key finding is that this business originally earnt ninety-five percent of total revenue through selling directly to end consumers by disintermediating their supply chain. Today, that figure has reduced to eighty percent of total revenue and the distribution strategy now includes some indirect retail and restaurant channels. This change in distribution strategy over time has been driven primarily by consumer demand. Whilst the disintermediation strategy initially allowed the business to maximise profits, gain distribution efficiencies, and enhance customer relationships, it did not fully meet the needs of all consumers. We discuss the rationale of the various direct and intermediated channels utilised by this business and suggest that these will be useful for other small wine businesses that want to achieve similar benefits through a combination of channel strategies.
Keywords: wine; supply chain; disintermediation; distribution.
Special Issue on: IFC 10 Risk in Investment and Financing Decisions
Regulation, Supervision and European Banking Performance
by B.E.N. BOUHENI FATEN
Abstract: We investigate the effects of regulation and supervision on the banking performance of the ten largest banks from selected European countries during the period of 2005-2011 using the Generalized Method of Moments (GMM) for a dynamic panel. Our results provide two major findings. First, with regard to influencing factors, regulation and supervision perform differently. In particular, restrictions on banking activities, supervision, deposit insurance and private monitoring have different impacts on banking performance, depending on the indicators of profitability and risk taking. Capital requirements decrease banking profitability, but the market structure boosts Return On Equity (ROE). Second, neglecting the influencing factors, we find that restrictions on banking activities, supervision, private monitoring and market structure increase profitability and reduce risk taking by European banks. We conclude that for the successful implementation of banking regulation and supervision, it is crucial to consider bank-level and country-level factors. In addition, the effect of regulation and supervision on banking performance is conditioned by the improvement of banking governance in Europe.
Keywords: Regulation; Supervision; Profitability; Risk taking ; Dynamic panel data; European banks.
Special Issue on: 20th Uddevalla Symposium 2017 Knowledge Transfer, Innovation and Entrepreneurship for Regional Development
Backer behaviours: an explorative study of investor types in equity crowdfunding
by Ola Olsson
Abstract: Equity crowdfunding (ECF) is a new source of early-stage finance where ordinary people are the investors. In this context, investors are called backers, and their behaviours are complex and less well understood. The contribution of this paper is to explore differences between backer investment behaviours. This is important, as it not only further positions equity backers when it comes to behaviour of different investor types in this literature, but also enables a discussion of attitudes and management of uncertainty from a portfolio theory perspective. The paper presents evidence of differences among backer investment behaviours. It also indicates that some behaviours are similar to those used by professionals in early-stage investment. This adds to the ECF literature and also supports previous findings of investor behaviour within the early-stage finance domain. The data include 3584 unique investors or 4938 transactions collected from FundedByMe.com during 2012–2016. The majority of the crowd invest only in single campaign portfolios and seem less attracted to uncertainty (single-portfolio backers). However, 16% of the crowd (572 investors) invest in multiple campaign portfolios and seem more attracted to uncertainty (multi-portfolio backers). These backers have investment behaviours similar to professionals who diversify to manage the portfolio uncertainty. Hence, a minority of the crowd seem to care about uncertainty and also manage it in a professional manner. The role of specialists must be further scrutinised and is a potential avenue of future research.
Keywords: Keywords: Early stage finance, equity crowdfunding, investor behavior, backer behavior, investment patterns, portfolio management, diversification, specialization, management of uncertainty
BUILDING REGIONAL INNOVATION CAPACITY: LINKING KNOWLEDGE-INTENSIVE INNOVATIVE ENTREPRENEURSHIP AND INNOVATION GOVERNANCE
by Olof Zaring, Stefan Szucs, Maureen McKelvey
Abstract: This article examines the processes of building innovation capacity, within a regional innovation sys-tem. We analyse a case study of technological development in a region, leading us to propose a con-ceptual model to explain how and why the development of a common resource pool of scientific and technological knowledge in turn leads to regional innovation capacity. The model visualizes our prop-osition that a process of governance enables actors to exploit a set of regional resources (incentives, networks, global relations), whereby collectively creating industrial opportunities.. We thereby use the model to predict that the success and directionality of specific technology in the region is dependent on establishing an organizational structure for exploiting said resources collectively. This contributes to understanding the governance of innovation systems because our proposed organizational structure, once established, will protect and channel knowledge and resources to the heterogeneous participating actors (regional government, universities, firms).
Keywords: innovation; entrepreneurship; economic emergence; regional governance; collective action; resources; knowledge-intensive entrepreneurship.
Innovation and SMEs Patent Propensity in Korea
by Junghee Han, Almas Heshmati
Abstract: This paper analyzes the patent propensity as an outcome of innovative activities of regional SMEs. To achieve the aims, we apply robust regression analysis to estimate the models to test 5 research hypotheses using 263 firm level data located at Gwangju region in Korea. Our empirical results show that a firms industry characteristics, such as machinery and automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz firms designated as innovative SMEs by the government are not performing differently than general firms. Only the CEOs academic credentials are positively related with propensity to patent. From the findings, we can conclude that patenting propensity is not directly related with a firms characteristics but mainly to CEOs managerial strategy. Also, we cannot find evidence for policy effectiveness from public support given to InnoBiz firms as part of the state policy to nurture photonic industry to boost regional economic development. Given the lack of strong policy effects, a new industry policy should be considered to actively promote SMEs innovativeness.
Keywords: Patent propensity; Photonic Industry; SMEs growth; R&D; innovation; InnoBiz; Korea.
Building an Open Innovation Model over a Horizontal Network by Applying the Open Innovation Theory on SMEs in Japan.From a Case Study on Shitamachi Bobsleigh Network Project in Ota City, Tokyo
by Mutsumi Okuyama, Kyosuke Sakakura, Toshiyuki Yasui, Takashi Maeno
Abstract: The purpose of this research was to verify that building an open innovation model over a horizontal network in regional clusters of small and medium-sized enterprises, by applying the open innovation theory, was effective to accelerate the creation of new products. We were able to prove using Design Structure Matrix (DSM), which visualizes dependency between various elements, that one of the main contributing factors for small and medium-sized enterprise clusters to be able to generate open innovations, was the deepening of human networks and relationships. Next, we verified using a well-being survey that an improved subjective level of well-being of the constituent members was a contributing factor (Diener 1984, Watson et al. 1988, Maeno 2013 and Maeno 2017).
Keywords: Shitamachi Bobsleigh;SMEs;open innovation;DSM;well-being.
Entrepreneurial Success Revisited: What Hofstedes Dimensions and GEDI Missed in Evaluating the Entrepreneurial Potential in Three Pilot Countries
by Dalia Sherif, Brenda Rios
Abstract: This concept paper examines entrepreneurial culture and its national cultural fit based on two of the cultural dimensions within Hofstedes theory and the Global Entrepreneurship Index (GEDI) ranking, while comparing these with the actual entrepreneurial outcomes in Pakistan, Egypt, and Zambia. The GEDI ranking indicates the potential for countries to be responsive to entrepreneurial investment, which can impact the willingness of investors to venture into a country. Pakistan, Egypt, and Zambia were among the first beneficiaries of the U.S. Government First Global Entrepreneurship Program (GEP) and its subsequent partner programs. The researcher(s) spent considerable time in the field, facilitating entrepreneurial initiatives in all three countries. Although the three countries have lower GEDI rankings, they have shown considerable entrepreneurship potential based on GEPs (or its partner programs) country reports. Additionally, when using two of Hofstedes cultural dimensions to assess openness for entrepreneurial initiatives, the three countries did not seem to provide a supportive ecosystem for entrepreneurial initiatives, yet other factors appear to have buffered these negative cultural forces. The following analysis will demonstrate that cultural dimensions and GEDI may no longer be effective indicators for the success and sustainability of donor programs targeting entrepreneurial initiatives and interventions. To better understand how a countrys culture impacts entrepreneurial initiatives, this concept paper proposes the need for an alternative construct to gauge favorable entrepreneurial environment, which has huge policy implications for global angel financing, venture capital, and seed funding. The analysis shows that the presumed correlation between some cultural dimensions, GEDI rankings, and the creation of successful start-ups may not always hold. Start-ups seem to provide a counter-cyclical cushion in low-income countries to survive periods of economic downturn in cultures that do not support new ventures and risk taking. This analysis will help prompt further research geared towards building a better assessment model that incorporates socio-cultural perspectives, politico-economic regulatory factors, and technological infrastructures.
Keywords: Big Five; Culture; Egypt; Entrepreneurship; Entrepreneurship Initiatives; Global Entrepreneurship and Development Index; Hofstede's Cultural Dimensions; Masculinity; Maslow's Hierarchy of Needs; Pakistan; Uncertainty Avoidance; Zambia.
Credit risk assessment: A comparison of the performances of the linear discriminant analysis and the logistic regression
by ALDO LEVY, RIAD BAHA
Abstract: The prediction of credit risk and borrowers solvency has been widely discussed in the financial and accounting literature whatever the international financial accounting standards (Levy et al., 2016). Various methods are used to build prediction models and can be adapted according to the country, the sector of activity and the nature of the data used. These methods have shown their effectiveness compared to traditional financial analysis for companies classification. This paper aims to compare the classification performances of the Logistic Regression model (LR) with those of the Linear Discriminant Analysis (LDA) one on a SMEs sample belonging to the Algerian private sector.
Keywords: credit risk; solvency of borrowers; SMEs failure; performances; classification; linear discriminant analysis; logistic regression.
Reflections on a SMART urban ecosystem in a small island state: The case of SMART Reykjavik
by Magnus Yngvi Josefsson, Runolfur Smari Steinthorsson
Abstract: This conceptual paper is based on a study which explores SMART cities and SMART specialisation. SMART refers to digitally enabled, innovative, progressive, green and sustainable social / technical systems. The focus is on SMART cities as an interactive innovative ecosystem illustrated through the concept of Triple and Quadruple Helix systems. The paper argues that a SMART city strategy should aim to build on uniqueness that can be enabled through tapping and connecting SMARTness to the available assets and resources that enhance and complement the existing ecosystem. The SMART city and SMART specialisation approach leverages existing human, social and relational capital. It fosters redesign and extension of established value chains and further activates and mobilises knowledge and innovation clusters to create more opportunities and development towards a more sustainable urban future. The discussion in this paper is based on SMART Reykjavik, a project on SMARTness in the capital of Iceland. As Iceland is a small island state and Reykjavik is a small city, the SMARTness is also addressed in relation to small island state contexts.
Keywords: Smart city; smart specialisation; small island city; strategy; socio / technical systems.
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.
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.
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.
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.
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.
Behind the Scenes: Applying Social Network Analysis to Unfold Entrepreneurs Investment Decisions
by Paul Beckman, Nasser Shahrasbi
Abstract: This study aims to test and expand the application of SNA (Social Network Analysis) to entrepreneurship and the joint-investing domain. We used as a setting for our study, the television show Shark Tank, wherein Sharks (investors) can choose to not invest, or to invest individually or in groups, in companies pitched by entrepreneurs. From this foundation, we create a node-and-edge graph wherein each Shark is a node in a network and edges are created through the action of a joint investment that includes more than one Shark. We use Graph Theory to show quantitatively which Sharks have made the most individual and joint investments and then create a visual image that shows graphically the network created by all joint investments made by all Sharks. Finally, we make several investment insights that would not be obvious using traditional statistical processes.
Keywords: Entrepreneurs; Investing; Graph Theory; Shark Tank; Social Network Analysis; SNA; Joint investment.