Potential Entrepreneurship in Japan

The aim of this paper is to investigate the potential for entrepreneurship in Japan using the Employment Status Survey, which is the only government-administered survey that includes questions about the desire to become an entrepreneur. We find that there are still a number of potential entrepreneurs in Japan, despite a recent decline in the number of new firms being established. We also find that there is a large regional variation in the distribution of entrepreneurial potential, with clustering into a few regions and the level in Tokyo being exceptional. Further, using panel data on 47 prefectures from 1982 to 1997, we examine the determinants of entrepreneurial potential. The estimation results show that the price-cost margin, market size, market growth and the unemployment rate have positive effects on the potential for entrepreneurship.     

Linking Culture and Ethics: A Comparison of Accountants’ Ethical Belief Systems in the Individualism/Collectivism and Power Distance Contexts

This study uses accounting professionals from an international setting to test the individualism and power distance cultural dimensions developed by Hofstede [Culture’s Consequences (Sage Publications, Beverly Hills, CA) 1980]. Six countries, which appropriately represented high and low values on the Hofstede dimensions, were chosen for the survey of ethical beliefs. Respondents (n = 249) from the six countries were requested to supply their agreement/disagreement with eight questionable behaviors associated with the work environment. Each of these behaviors contained an individualism and/or power distance cultural component for the responding accountants to consider. The results of the cultural analysis indicated significance on five of the eight survey items. Results lend support for the presence of the individualism cultural element in the ethical responses of the accountants surveyed.     

Entrepreneurship,Agglomeration and Technological Change

A growing body of literature suggests that variations across countries, in entrepreneurial activity and the spatial structure of economies could potentially be the source of different efficiencies in knowledge spillovers, and ultimately in economic growth. We develop an empirical model that endogenizes both entrepreneurial activity and agglomeration effects on knowledge spillovers within a Romerian framework. The model is tested using the GEM cross-national data to measure the level of entrepreneurship in each particular economy. We find that after controlling for the stock of knowledge and research and development expenditures, both entrepreneurial activity and agglomeration have a positive and statistically significant effect on technological change in the European Union. JEL CLASSIFICATION: O3, R1, J24, M13     

The Decision to Enter and Exit Foreign Markets: Evidence from U.K. SMEs

This paper studies the dynamics of the export behaviour of small and medium sized enterprises (SMEs) in the U.K. between 1994 and 1998. I use a dynamic empirical model to disentangle three distinct dimensions of a firms’ participation in foreign markets: sunk cost induced hysteresis, firm heterogeneity and macroeconomic instability. The results show that SMEs view exporting as an irreversible investment, with state dependence being the largest explanatory factor. Moreover, observable firm characteristics, such as size and ownership, play a significant role in distinguishing exporters from non-exporters. Finally, there is no evidence that the 1992–1993 recession influenced firms’ export decisions in subsequent years implying that the results provide a valid indication of SMEs "typical" export behaviour.     

Codes of Ethics,Orientation Programs,and the Perceived Importance of Employee Incorruptibility

The purpose of this study was to determine the degree to which the review of corporate ethics codes is associated with individuals’ perceptions of the importance of virtue ethics, or more specifically, employee incorruptibility. A convenience sample of individuals working for a university or one of several business organizations located in the Mountain West region of the United States was compiled with a self-report questionnaire. A usable sample of 143 persons representing both the public and private industries was secured for use in this study. The results of an analysis of covariance showed that reviewing ethics codes during employee orientation was positively related to individuals’ beliefs that incorruptibility is an important individual virtue. The managerial implications of the findings are discussed along with suggestions for future research.     

Integrating Uncertain Preferences into Status Quo Analysis with Applications to an Environmental Conflict

An algorithm is put forward to conduct status quo analysis when preference uncertainty exists for at least one decision maker (DM) in a strategic conflict. This research integrates into a unified framework two recent expansions of the graph model for conflict resolution, preference uncertainty and status quo analysis. Both of these developments enhance the applicability of the graph model, preference uncertainty by accommodating uncertainty in DMs' preferences and status quo analysis by addressing the dynamics of conflict. The combination of preference uncertainty and status quo analysis improves the flexibility of the graph model in both modelling and analysis. A new model of an environmental conflict is analyzed to demonstrate how the new algorithm can be applied.     

Consumer Ethics: A Cross-Cultural Study of the Ethical Beliefs of Turkish and American Consumers

The ethical climate in Turkey is beset by ethical problems. Bribery, environmental pollution, tax frauds, deceptive advertising, production of unsafe products, and the ethical violations that involved politicians and business professionals are just a few examples. The purpose of this study is to compare and contrast the ethical beliefs of American and Turkish consumers using the Ethical Position Questionnaire (EPQ) of Forsyth (1980), the Machiavellianism scale, and the Consumer Ethical Practices of Muncy and Vitell questionnaire (MVQ). A sample of 376 subjects that consists of American consumers (n = 188) and Turkish consumers (n = 199) was used to compare the ethical beliefs and practices of the two samples. The MANOVA results for the two nationality groups found that five out of six criterion variables differed between the two groups. The implications of this study are intended to assist marketers to develop strategies that suit a particular market and lessen their risk of entry. Mohammed Y.A. Rawwas is Professor of Marketing at the University of Northern Iowa. He also taught as a Visiting Professor at a range of universities in Japan, France, Austria, Russia, China, Hong Kong, Trinidad and Tobago. His areas of research include ethical and social issues in marketing, cross-cultural studies, marketing education, and supply chain management. He has published extensively across these areas including works in Journal of Business Research, International Marketing Review, Journal of Consumer Ethics, and Journal of Marketing Education, among others.Ziad Swaidan is Assistant Professor of Marketing at the University of Houston-Victoria. He received his Ph.D. from the University of Mississippi. His research has appeared in several journals, including the Journal of Business Ethics, and International Business Review, among others. Mine Oyman is Assistant Professor of Marketing at Anadolu University in Turkey. Her areas of research include consumer ethics, cross-cultural studies, and marketing education. She has presented previous works at a range of international and local conferences.     

Beyond Philanthropy: Community Enterprise as a Basis for Corporate Citizenship

In this article we argue that the emergence of a new form of organization – community enterprise – provides an alternative mechanism for corporations to behave in socially responsible ways. Community enterprises are distinguished from other third sector organisations by their generation of income through trading, rather than philanthropy and/or government subsidy, to finance their social goals. They also include democratic governance structures which allow members of the community or constituency they serve to participate in the management of the organisation. Partnerships between corporations and community enterprises therefore raise the possibility of corporations moving beyond philanthropic donations toward a more sustainable form of intervention involving long-term commitments to communities. At the same time they change substantively the nature of any collaboration by allowing relationships to proceed on the basis of mutual advantage, thereby broadening their appeal and scope. In doing so, partnerships build capacity and enfranchise communities in a way that avoids the paternalism that has traditionally characterised relationships between corporations and voluntary sector organisations. Power relations are transformed because partners are seen as sources of valuable assets, knowledge and expertise, rather than recipients of patronage or charity.     

Still Searching (Systematically)<Superscript>1</Superscript> for Entrepreneurial Discoveries

We examine how entrepreneurs can search deliberately for discoveries. We use consideration sets to impose constraints on how and where they search. A consideration set is a promising set of information channels, which entrepreneurs can select and search based on prior knowledge. To decide how to search the channels in a consideration set, we apply existing mathematical formalism to illustrate a maximal search sequence. Because there is some probability that a search sequence could continue indefinitely, we determine stopping rules. We argue that entrepreneurial search is more feasible within a consideration set than it is in the rest of the world.     

Does Trust Matter? The Relationship Between Equity Sensitivity and Perceived Organizational Justice

The present research study was designed to extend our knowledge about issues of relevance for business ethics by examining the role of equity sensitivity and perceived organizational trust on employees perceptions of procedural and interactional justice. A model was developed and tested, and results revealed that organizational trust and respect mediated the relationship between an employees equity sensitivity and perceptions of procedural, interactional, and social accounts fairness. A discussion of issues related to perceptions of trust and fairness is presented, as well as recommendations for leaders and future scholarship.Jill Kickul, Ph.D., is the Elizabeth J. McCandless Professor in Entrepreneurship at the Simmons School of Management. She teaches courses on Entrepreneurship the New Venture Management, Contemporary Entrepreneurial Opportunities, and Strategic Analysis for Competing Globally. She has taught entrepreneurship internationally for the Helsinki School of Economics and for the International Bank of Asia (Hong Kong MBA Program). Her research interests include entrepreneurial intentions and behavior, strategic and innovation processes in start-up ventures, and women in entrepreneurship. Her articles have appeared in publications such as Journal of Management, Frontiers of Entrepreneurship Research, Journal of Small Business Management, and International Journal of Entrepreneurship and Innovation.Lisa Gundry, Ph.D., is Professor of Management in the Charles H. L. Kellstadt Graduate School of Business at DePaul University where she teaches courses in Creativity in Business and Entrepreneurship Strategy. She has authored three books on entrepreneurship and innovation, and written numerous journal articles for publications including Journal of Business Venturing, Journal of Small Business Management, Journal of Management, Human Relations, Organizational Dynamics, Journal of Developmental Entrepreneurship and Family Business Review. Her research interests focus on entrepreneurship strategy and growth, and creative and innovative processes in organizations. She is Director of the Leo V. Ryan Center for Creativity and Innovation at DePaul University.Margaret Posig, Ph.D., is an Associate Professor in the Charles H. Kellstadt Graduate School of Business at DePaul University, where she teaches courses in Leadership and Change Management. Her research interests are in the areas of organizational leadership and change management, workplace stress, and women in leadership. Her publications appear in the Journal of Occupational Health Psychology, Women in Management Review, Journal of Managerial Issues, and Journal of Business and Entrepreneurship, among others. Dr. Posig is an Industrial/Organizational psychologist, with a Ph.D. from DePaul University, and directs the Leadership and Change Management concentration. Her consulting focuses on management development and workplace stress management.