In the eye of the beholder: How regulatory focus and self-efficacy interact in influencing opportunity recognition

Although there is evidence that regulatory focus is associated with opportunity exploitation, there is a lack of research examining its role at the early stages of opportunity recognition. The present study makes two major contributions to address this gap. First, we demonstrate that entrepreneurs' promotion focus is positively related to opportunity recognition, whereas prevention focus is not significantly related to opportunity recognition. Second, integrating two theories of self-regulation – regulatory focus theory and self-efficacy theory – our findings reveal that a high promotion focus compensates for entrepreneurs' low levels of creative and entrepreneurial self-efficacy in opportunity recognition. Our study extends extant cognitive theories of opportunity recognition.     

Innovation leadership: Best-practice recommendations for promoting employee creativity,voice, and knowledge sharing

Innovation—the implementation of creative ideas—is one of the most important factors of competitive advantage in 21^st century organizations. Yet, leaders do not always encourage employee behaviors that are critical for innovation. We integrate existing literature on the critical factors that serve as antecedents of innovation, including employee voice and knowledge sharing, which in turn lead to creativity and innovation. Based on existing empirical research, we offer evidence-based recommendations for managers to become innovation leaders by: (1) developing the right group norms, (2) designing teams strategically, (3) managing interactions with those outside the team, (4) showing support as a leader, (5) displaying organizational support, and (6) using performance management effectively.     

The effect of mixed versus blocked sequencing of promotion and prevention features on brand evaluation: The moderating role of regulatory focus

We investigate if presenting a brand's promotion and prevention features in homogenous blocks (e.g., two promotion features followed by two prevention features — a toothpaste that freshens breath, whitens teeth, stops plaque buildup and prevents cavities) as opposed to alternating their presentation order (a toothpaste that freshens breath, stops plaque buildup, whitens teeth, and prevents cavities) affects brand attitude. We find that alternating feature presentation improves brand evaluation among promotion-focused, but not prevention-focused, consumers. In mixed presentations, since each feature physically contrasts with those near it (e.g., promotion features bracketing a prevention feature), the resulting heightened distinctiveness increases the perceived variety of a brand's benefits and fits better with the advancement goals of promotion-focused consumers. We report two studies that support our predictions.     

Consumer responses to mobile coupons: The roles of shopping motivation and regulatory fit

Retailers increasingly use mobile coupon services to deliver promotional offers to consumers. This paper draws on the theory of regulatory focus to explain mobile coupon redemption. The paper proposes that redemption depends on the extent to which a mobile coupon requires consumers to divert from their focal shopping motivation. Regulatory fit, the perception of receiving an offer that is relevant to consumers' regulatory goals, mediates this divergence effect, but only for utilitarian shoppers. Results from two scenario experiments support the main hypothesis and show that utilitarian shoppers perceive greater regulatory fit when an offer is compatible with their focal shopping motivation. In contrast, hedonic shoppers perceive no difference in regulatory fit when an offer diverts them from their focal shopping motivation. This explains why hedonic shoppers redeem a wider variety of offers than utilitarian shoppers and why utilitarian shoppers require more personalization to generate coupon redemption.     

Testing interaction effects of the dimensions of market orientation on marketing program creativity

Despite the plethora of research on market orientation, our understanding of how different dimensions of market orientation interact with each other in generating new intelligence for marketing programs is limited. In this paper, we develop and test a model that examines the interaction effects of the three dimensions of market orientation—customer orientation, competitor orientation, and cross-functional integration—on generation of marketing program creativity, composed of novelty and meaningfulness dimensions. In empirically testing such effects, we illustrate how to use two-stage least squares (2SLS) estimation. We find significant positive interaction effects between customer orientation and competitor orientation and between competitor orientation and cross-functional integration in predicting marketing program novelty. We also find that competitor orientation and cross-functional integration significantly and positively interact with each other in improving marketing program meaningfulness. Our empirical results provide implications and directions for market orientation research.     

The underlying mechanism of self-regulatory focus impact on compromise choice

The current research examines the psychological process underlying the differential sensitivity to the compromise effect associated with a distinct self-regulatory focus. In particular, we test two competing hypotheses: one based on the different weights assigned to decision components, and the one that draws on biased perception. This issue is explored via the statistical derivation of decision weights (Study 1), manipulation of the temporal frame of choice (Study 2), and altering the risks associated with decision-making (Study 3). The results of these three studies consistently support the differential weight account: Promotion-focused participants assign greater weight to the desirability (or hedonic value) of the choice outcome, whereas prevention-focused participants place greater weight on the likelihood (or risk) of achieving that outcome. However, perceptions regarding the desirability and the risk of the given choice are similar among those with a distinct self-regulatory focus.     

Entrepreneurial intentions: The influence of organizational and individual factors

An individual's intent to pursue an entrepreneurial career can result from the work environment and from personal factors. Drawing on the entrepreneurial intentions and the person-environment (P-E) fit literatures, and applying a multilevel perspective, we examine why individuals intend to leave their jobs to start business ventures. Findings, using a sample of 4192 IT professionals in Singapore, suggest that work environments with an unfavorable innovation climate and/or lack of technical excellence incentives influence entrepreneurial intentions, through low job satisfaction. Moderating effects suggest that an individual's innovation orientation strengthens the work-environment to job-satisfaction relationship; self-efficacy strengthens the job-satisfaction to entrepreneurial intentions relationship.     

The influence of sustainability orientation on entrepreneurial intentions — Investigating the role of business experience

Do individuals who are concerned by issues of sustainability also exhibit stronger entrepreneurial intentions? Given that existing imperfections in the market create numerous opportunities for entrepreneurship connected with sustainable development, adding individual sustainability orientation to models of entrepreneurial intention could increase their explanatory power. Based on survey data collected from engineering and business students and alumni of three universities, we provide evidence that entering sustainability orientation into the equation is actually meaningful. However, our findings suggest that the positive impact of sustainability orientation vanishes with business experience. Consequently, we suggest measures to nourish an evidently existing potential for sustainable entrepreneurship.     

The Impact of Creativity Training on an Accounting Negotiation

There is renewed interest in the factors that affect negotiations, as they are a significant part of organizational life. While we understand that there are many barriers to effectively reaching optimal solutions in a negotiation, we are still unclear as to the means by which to meet this goal. In this paper, we offer creativity training as a possible antecedent to effective negotiation. Our results show that individuals trained to think creatively reached more integrative solutions or solutions that were mutually beneficial to all negotiation participants than individuals who did not receive creativity training. We discuss implications and future research.     

The influence of ethical fit on employee satisfaction,commitment and turnover

This study examines the influence of ethical fit on employee attitudes and intentions to turnover. The results of this investigation provides support for the conjecture that ethical work climate is an important variable in the study of person-organization fit. Ethical fit was found to be significantly related to turnover intentions, continuance commitment, and affective commitment, but not to job satisfaction. Results are discussed in regard to some of the affective and cognitive distinctions among satisfaction, commitment, and behavioral intentions.Randi L. Sims is an Assistant Professor at Nova University in Fort Lauderdale, Florida. Her research interests include Ethical Decision Making, Business Ethics, and Academic Dishonesty. Dr. Sims has published in theJournal of Education for Business and Educational and Psychological Measurement.K. Galen Kroeck is an Associate Professor of Management at Florida International University in Miami, Florida. Dr. Kroeck, an Industrial/Organizational Psychologist, is the Director of Doctoral Studies in the College of Business Administration and Chairman of the Florida International University Research Council. He has published in numerous magazines and journals, such as theJournal of Management and theJournal of Applied Psychology, and has two current textbooks in the field of Human Resource Management.     

The influence of ethical climate on marketing employees' job attitudes and behaviors

In this study, two data sets were used to test the validity of the Babin, Boles, and Robin (Babin BJ, Boles JS, Robin DP. Representing the perceived ethical work climate among marketing employees. J Acad Mark Sci 2000;28(3):345-358.) measure of ethical work climate and its relationship with role stress, pay satisfaction, supervisor satisfaction, organizational commitment, performance, and turnover. The results indicated that ethical work climate is a multidimensional construct and that its dimensions influence marketing employees' job attitudes and job behaviors. Facets of job satisfaction and organizational commitment mediated the relationship between ethical work climate and turnover intentions and turnover.     

The Perfect Fit: The Moderating Role of Selling Cues on Hedonic and Utilitarian Product Types

With the need among retailers to create effective promotional campaigns, scarcity, and popularity cues are increasingly used. Drawing from regulatory focus and popularity versus scarcity cues literature, this research explores the impact of popularity versus scarcity cues and product types on consumer perceptions of risk, product uniqueness, and purchase intentions. Results from three studies provide primary insights: (1) A utilitarian product aligns with prevention goals and hence the popularity cue will enhance consumers’ purchase intentions, and (2) a hedonic product aligns with promotion goals and hence the scarcity cue will enhance consumers’ purchase intentions. Further, we theorize that perceived risk and perceived product uniqueness will act as psychological mechanisms. We discuss theoretical contributions and strategic insights for retailers and marketers that the findings indicate.     

Pathways to entrepreneurial growth: The influence of management, marketing, and money

Business growth is considered a worthy goal for firms and a measure of entrepreneurial success, as well as important for economic development. Why some firms grow and others do not, though, remains a subject of debate. Of the small proportion of firms that do grow, it is often assumed that they follow a similar growth trajectory and/or encounter certain stage thresholds; however, the evidence base on this is wanting. The new study of business growth presented here provides an in-depth analysis of 19 New England-based firms. Our findings reveal that fast-growing companies exhibit different rates and patterns of growth: some display rapid growth trajectories (Rapid Growth Pattern); some, slower, more measured rates (Incremental Growth Pattern); others, episodic periods of quick growth followed by sharp retrenchment (Episodic Growth Pattern); and, while no firm actively chose to stop growing, some reached points of stagnation (Plateau Growth Pattern). We found that three key factors—management, marketing, and money—affected company growth across these patterns. While not every factor was critical at each moment of growth for each firm, every entrepreneur cited the relative importance of each factor at some time during the growth of their firm. Thus, fast-growing firms do not grow in the same manner, at the same rate, or with the same outcomes. This article has implications for those seeking to understand the processes of development and patterns of fast-growth businesses.     

The effects of entrepreneurial orientation, market orientation, and marketing subunit influence on firm performance

The study investigates how an organization’s entrepreneurial orientation moderates the interplay between market orientation and marketing subunit influence on firm performance. The hypothesized model predicts that the positive interaction between market orientation and marketing subunit influence has a weaker effect on firm performance under conditions of high entrepreneurial orientation. The regression and supplementary analyses provide support for most predictions and, most importantly, for a negative three-way interaction effect: At higher levels of entrepreneurial orientation, the positive moderating effect of marketing subunit influence on the market orientation–business performance relationship is reduced. The authors discuss the managerial and theoretical implications of their findings and provide a number of directions for further research.

The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs

With the relationship between entrepreneurial orientation (EO) and firm performance having broad scholarly acceptance, researchers are now delving with increased focus into the contextual factors that change the nature of the relationship between EO and various manifestations of organizational performance. In this vein, this study adopts the resource based view and investigates the moderating influence of firm age and intangible resources on the EO-firm growth relationship among small to medium sized enterprises (SMEs) in Japan. Further, we propose a three-way interactive model between EO, firm age, and intangible resources to better identify entrepreneurial configurations that promote superior SME growth.     

Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character

Internationalization is an important entrepreneurial strategy for promoting the long-term growth and survivability of small and medium-sized enterprises (SMEs). Family involvement in top management teams (TMTs) can explain the heterogeneous behaviors of these firms’ international entrepreneurship process. This paper analyzes the moderating effects of the family’s influence on the relationship between entrepreneurial orientation and internationalization with two TMT diversities found only in family firms: the family TMT ratio and generational involvement. An analysis of 191 Spanish family SMEs indicated that entrepreneurial orientation plays a significant role in explaining the degree of internationalization in family firms and that a diversely formed TMT shapes this relationship. A high concentration of family members in managerial positions hinders the international entrepreneurship process. This fact highlights the importance of hiring non-family managers to promote internationalization. The results also reveal that involving multiple generations in decision-making hampers entrepreneurial internationalization, generating control and coordination problems.     

The path of least resistance: Regulatory resource depletion and the effectiveness of social influence techniques

Two experiments examine the role of regulatory resource depletion in the effectiveness of social influence techniques aimed at inducing consumer compliance. They test the two-step hypothesis that a) responding to the initial request stage of an influence technique requires self-control, thereby depleting one's limited resource of self-regulatory energy, and b) a state of regulatory resource depletion fosters the use of heuristics present in the persuasion context, which increases the odds of compliance with the target request of an influence technique. A first field experiment shows that yielding to initial requests (answering a series of questions) induces resource depletion. Experiment 2 demonstrates that a lower level of self-regulatory resources increases the extent of compliance with a request through the employment of the heuristic principle of authority. Together these results provide support for the prediction that regulatory resource depletion is important in explaining the effectiveness of social influence techniques.     

The Effects of Moral Reasoning and Self-Monitoring on CFO Intentions to Report Fraudulently on Financial Statements

This study adapts the theory of reasoned action (Ajzen and Fishbein, 1980) to the behavior of fraudulent reporting on financial statements so as to examine the effects of moral reasoning and self-monitoring on intention to report fraudulently, using structural equation modeling. The paper seeks to investigate two of the red flags for financial statement fraud identified in Loebbecke et al.'s (1989) paper: client management displays a significant lack of moral fiber and client personnel exhibit strong personality anomalies. As expected, high moral reasoners are more influenced than low moral reasoners by their own attitude towards the behavior. Contrary to prior research, low self-monitors are found to be more influenced than high self-monitors by subjective norms. Future research is recommended to investigate the counter-intuitive results for self-monitors, to consider the implications of group decision making as regards the promulgation of fraudulent financial statements, and to examine additional red flags for financial statement fraud.     

Social media revolutions: The influence of secondary stakeholders

Traditionally, firms have tried to listen to primary stakeholders (e.g., customers, suppliers, creditors, employees) but have paid little attention to the concerns of secondary stakeholders (e.g., the general public, communities, activist groups). This is because primary stakeholders were perceived to have power, legitimacy, and urgency behind their requests, while secondary stakeholders had little or no leverage. With the coming of the Internet and social media this asymmetry of influence has changed. Today, secondary stakeholders have to be managed as adroitly as primary stakeholders. In this installment of Marketing & Technology, we show managers how social media and the Internet have amplified the influence of secondary stakeholders, and offer guidance on how to manage these groups effectively.     

The Effects of Pre-venture Plan Timing and Perceived Environmental Uncertainty on the Persistence of Emerging Firms

This paper explores the effects of when pre-venture planning occurs (early or late) in the sequence of activities accomplished during the process of new business emergence, and the moderating effects of environmental context (the degree of perceived financial, competitive and operational uncertainty), on the persistence of emerging business startup efforts. Using data from the U.S. Panel Study of Entrepreneurial Dynamics (PSED), our analyses found a strong main effect for business planning: Nascent entrepreneurs who completed a business plan were 2.6 times more likely to persist in the process of business emergence than those who did not complete a plan. In addition, the likelihood of venture persistence increased when nascent entrepreneurs engaged in planning early in the sequence of start-up activities in perceived uncertain financial and competitive environments, while venture persistence increased when nascent entrepreneurs engaged in planning late in a sequence of activities in perceived certain financial and competitive environments.