The Effects of Initial Location,Aspirations, and Resources on Likelihood of First Sale in Nascent Firms*

The formation of a new venture includes initial choices that affect the process of start‐up. Primary among these decisions is the choice of location whether to start from home or from an away location. This paper examines the impact of initial firm location choices and aspirations of the entrepreneur on the resource assembly process and the likelihood of first sale. Results show that home‐based businesses assemble different types of resources from their away‐based counterparts. Higher aspirations were associated with greater accumulation of organizational resources. The combined influence of location and aspirations showed that home‐based firms with high aspirations were less likely to achieve first sale. A post hoc analysis examined these affects within a subgroup of service firms and confirmed the previous results. This study suggests that in the initial stages of the new venture, there are processes and routines that home‐based businesses engage in that lead them to achieve first sales in a timelier manner than those businesses that are located away from home. Furthermore, high aspirations are associated with greater scale of organizational resources but not necessarily with achievement of sales. Implications are discussed.     

Knowledge exchange in networked organizations: does place matter?

While many studies of knowledge exchange have been undertaken in private and service organizations, government and R&D enterprises, few have studied scientific inter‐organizational collaborations. Furthermore, in the literature on international networks there has been a tendency to assume that knowledge exchange will be inevitably enhanced by global dispersion. Two linked dynamics deserving further study are the role of geographic proximity and the role of information and communication technologies in facilitating knowledge flow across international networks. Studies of intra‐ and inter‐firm knowledge transfer, managerial work values and cultural norms all point to China as being a fascinating counterpoint for the way knowledge exchange might occur in Europe. So in this study of the ATLAS collaboration, a ‘big science’ global network of 3,500 physicists, we explore the perceptions of two subgroups: UK physicists working in Europe and Chinese scientists based in Beijing and HeFei. Findings from 24 interviews and non‐participant observation reveal that face‐to‐face working at European Organization for Nuclear Research (Geneva) is not without its difficulties, but for a variety of sociocultural reasons, it is primarily the Chinese scientists who perceive themselves to be inhibited from full participation in effective knowledge exchange.     

Contents of Volume 35

Volume Contents

Contents of Volume 35     

Terrorism and tourism as logical companions

The symbiotic relationship between terrorism and tourism needs to be understood and acted on, not just in terms of security and marketing, but in terms of such factors as planning, site development, employment policies, political risk analysis and emergency management. This article looks at the relationship between tourism and terrorism from several perspectives. The political and economic impact of terrorism on tourism is assessed, including the sensitivity of the tourism industry to general political strife and the vulnerability of travellers and tourist facilities to terroristic activity. The nature of terroristic violence and the objectives of terrorist groups are evaluated to determine why and how attacks on tourists and facilities may fit the organizational and political objectives of terrorist groups. Finally, the article suggests how the industry and policy makers must proceed to reduce the vulnerability for tourists and the travel sector.     

Contrasting corporate profiles: Women and minority representation in top management positions

This paper investigates the characteristics of firms which have underrepresented groups in top management positions and those which do not. It is argued that profiles of these characteristics will be different for firms with minorities vs. women and that these profiles will be different depending on whether representation is by board membership or through officerships. A discriminant analysis found both similarities and differences in variables that were associated with these different forms of representation. It was found, for example, that size is associated with representation for both minorities and women, whereas high advertising intensity is associated with firms with women on board, but not as officers. Other findings and the implications of the study are discussed.Jerry Fryxell is an Assistant Professor of Management at the University of Tennessee — Knoxville. His current research interests are in the area of corporate culture, innovation, and strategic management.Linda Lerner is a Ph.D. candidate in the Department of Management at the University of Tennessee — Knoxville. Her current research interests include strategic management, social issues, and corporate governance. She has over ten years of management and consulting experience.     

Characteristics of non-fatal injuries in Leon, Nicaragua - 2004

This article describes the epidemiology of injuries collected in the Injury Surveillance System in Leon Hospital in Nicaragua. A total of 6659 persons were treated for injuries in 2004. It was discovered that 88% of all injuries were unintentional, 9% involved interpersonal violence, 2% were self-inflicted and 0.2% was undetermined. Men accounted for 64.7% of the cases, with the highest rate among 20 - 24 year olds (5625.8 per 100,000 inhabitants). Among women, the highest rate was in those aged 64 years and older (5324.2 per 100 000 inhabitants). The most common mechanisms were falls (33.9%), blunt force (26.8%), cut/pierce/stab (15.1%) and transportation-related (12.8%). These results indicate the need to identify prevention strategies for those injuries that were most commonly treated in emergency, such as unintentional falls among older women, self-inflicted poisoning among young women and blunt force and transportation-related injuries among young men.     

An Examination of the Structure of Executive Compensation and Corporate Social Responsibility: A Canadian Investigation

We explore the extent to which Boards use executive compensation to incite firms to act in accordance with social and environmental objectives (e.g., Johnson, R. and D. Greening: 1999, Academy of Management Journal 42(5), 564–578 ; Kane, E. J.: 2002, Journal of Banking and Finance 26, 1919–1933.). We examine the association between executive compensation and corporate social responsibility (CSR) for 77 Canadian firms using three key components of executives’ compensation structure: salary, bonus, and stock options. Similar to prior research (McGuire, J., S. Dow and K. Argheyd: 2003, Journal of Business Ethics 45(4), 341–359), we measure three different aspects of CSR, which include Total CSR as well as CSR Strengths and CSR Weaknesses. CSR Strengths and CSR Weaknesses capture the positive and negative aspects of CSR, respectively. We find significant positive relationships between: (1) Salary and CSR Weaknesses, (2) Bonus and CSR Strengths, (3) Stock Options and Total CSR; and (4) Stock Options and CSR Strengths. Our findings suggest the importance of the structure of executive compensation in encouraging socially responsible actions, particularly for larger Canadian firms. This in turn suggests that executive compensation can be an effective tool in aligning executives’ welfare with that of the “common good”, which results in more socially responsible firms (Bebchuk, L., J. Fried and D. Walker: 2002, The University of Chicago Law Review 69, 751–846; Zalewski, D.: 2003, Journal of Economic Issues 37(2), 503–509). In addition, our findings suggest the importance of institutional context in influencing the association between executive compensation and CSR. Further implications for practice and research are discussed.Lois. Mahoney is an Assistant Professor at Eastern Michigan University. Her research is focused in the areas of ethics and accounting information systems. She has published in ethics and accounting journals including Journal of Business Ethics, Business Ethics Quarterly, Research on Professional Responsibility and Ethics in Accounting, Information and Organization. Dr. Mahoney has received several research awards, including Best Paper award at the Seventh Symposium on Ethics Research in Accounting. Dr. Mahoney is also actively involved in the American Accounting Association.Linda Thorn is an Associate Professor at York University in Toronto Ontario. Her research focuses on ethical decision making, the ethics of accountants and accounting students and ethical aspects of accounting information. She has published in ethics and accounting journal including among others, Business Ethics Quarterly, Journal of Business Ethics, Contemporary Accounting Research, Behavioral Research in Accounting and Audit: A Journal of Practice in Theory.     

Pulse Fishing and Stock Uncertainty

Large variation in stock dynamics affects the accuracy of stock estimates, which fisheries managers rely on when determining quotas and other regulations. The purpose of this paper is to investigate the implications of uncertainty on pulse fishing. We show that as the variance of the random natural fluctuations increases, the optimal pulse length decreases and converge toward a constant-escapement policy. Hence, in fisheries with large natural variability, a constant-escapement policy is a good approximation of the optimal policy.