Joint Ventures as an Internationalisation Strategy for SMEs

For some time believed to be inferior to Wholly Foreign-Owned Enterprises, Joint Ventures have become a popular vehicle for foreign market servicing. Although there are various proponents of the joint venture strategy as a means of enabling SMEs with limited productive resources and/or market knowledge to enter international markets, relatively few have focused on the actual joint venturing activities of SMEs. This article examines the activities of 9 U.K. and 12 German SMEs that have joint ventures in China. Based on a questionnaire survey and in-depth case interviews, it reveals that the initiatives appear to have been successful but that they are not without their problems and in many ways the experiences of the firms involved seem similar to those of the large multi-national enterprises. It argues that the key to success appears to be the choice of the joint venture partner and concludes that, given the limited resources of small firms, assistance is required to help them locate and select appropriate partners.     

Internationalisation at home: The internationalisation of location-bound service SMEs

This study explores how location-bound service small- and medium-sized enterprises (SMEs)—such as tourism companies—internationalise. We suggest that key dimensions in the internationalisation of these firms are the available resource base, the company network and its embeddedness and entrepreneurial capabilities, particularly entrepreneur’s language skills, global mindset and cultural awareness. We propose an internationalisation framework model supported by three illustrative case examples from Finland. The framework differentiates between passive developers, emerging developers and international entrepreneurs. The study makes several contributions. First, it provides an advanced view on the internationalisation of service firms and challenges in previously applied theories in a novel context. Second, it highlights the significance of location-bound resources in the process. Third, the findings indicate that the interplay between the resource base, company network and entrepreneurial capabilities is decisive for internationalisation. We also suggest managerial implications for both the industry and policymakers, supporting the internationalisation of location-bound service firms.Diese Studie untersucht, wie ortsgebundene Dienstleister, wie zum Beispiel KMUs in der Touristikbranche, international expandieren. Wir schlagen vor, daβ die verfügbaren Ressourcen, das unternehmerische Netzwerk, die Sprachkenntnisse des Unternehmers, die unternehmerischen Fähigkeiten, eine globale Denkweise und kulturelles Bewusstsein zu den wichtigsten Dimensionen der Internationalisierung gehören. Durch drei anschauliche Fallbeispiele aus Finnland entwickeln wir ein Internationalisierungsmodell, welches wir vorschlagen. Das Rahmenmodell, welches zwischen passiven und aufstrebenden Entwicklern, sowie internationalen Unternehmern unterscheidet, macht eine Reihe von Kontributionen. Erstens, es erweitert unser Verstehen der Internationalisierung von Dienstleistern und fordert etablierte Theorien durch einen neuen Kontext heraus. Zweitens, es hebt die Bedeutung der ortsgebundenen Ressourcen hervor, die zum Internationalisierungsprozess beitragen. Auβerdem zeigen unsere Ergebnisse, daβ das Zusammenspiel von Ressource-Basis, Firmennetzwerken und unternehmerischen Fähigkeiten von entscheidender Bedeutung für die Internationalisierung sind, Ergebnisse, die uns veranlassen, praktische Implikationen für Unternehmen, wie für Gesetzgeber vorzuschlagen, damit die Internationalisierung ortsgebundener KMUs im Dienstleistungssektor unterstützt wird.     

Capital structure of Chinese listed SMEs: an agency theory perspective

Prior work examining the antecedents of capital structure for small and medium-sized enterprises in emerging markets is limited. This paper sheds light on how the corporate governance mechanisms adopted by firms on the newly established Growth Enterprise Market (GEM) in China influence their use of debt. We find that the financial leverage of GEM firms is positively influenced by executives’ shareholding and their excess cash compensation. Ownership concentration appears to reduce leverage, whereas the percentage of tradable shares increases leverage. In contrast, institutional investors’ shareholding does not influence the level of debt. Traditional factors such as tax and operating cash flow are insignificant in explaining the debt levels among GEM firms.     

Understanding frame‐of‐reference training success: a social learning theory perspective

Employing the social learning theory (SLT) perspective on training, we analysed the effects of alternative frame‐of‐reference (FOR) training protocols on various criteria of training effectiveness. Undergraduate participants (N = 65) were randomly assigned to one of four FOR training conditions and a control condition. Training effectiveness was determined via trainee reactions, learning and rating accuracy. The results partially supported the study hypotheses: compared to the control group, the more comprehensive FOR training conditions evidenced: (1) significantly higher rating accuracy; (2) significantly higher levels of learning; and (3) more favorable reactions to the training. The discussion focuses on the implications of the results for protocol development when designing FOR training programs.     

从社会资本视角的企业创新研究

在高度竞争的市场环境中,创新是企业保持竞争优势和持续发展的根本。激烈的竞争使企业认识到创新对企业的重要意义,而且越来越多的企业认识到单一企业的资源和能力已不足以满足企业创新的要求,企业需通过广泛的外部合作进行内外资源的整合,使企业在内外部的关系网络中获得竞争优势。为提高企业的创新能力,有必要从社会资本视角对企业创新进行研究,分析社会资本对企业创新的制约,从而制定相应的解决对策。     

An entrepreneurial cognition perspective on the internationalization of SMEs

Drawing from entrepreneurship, cognition, and international business theory, this paper develops a model integrating individual-level and firm-level characteristics to provide an entrepreneurial cognition perspective on the internationalization of small and medium size ventures. The model is tested on a sample of Spanish ventures using structural equation modeling techniques (partial least squares). Support is found for the central role of cognition and risk perception of CEOs in explaining the implementation of international expansion strategies for their firms.     

Narcissistic rhetoric and crowdfunding performance: A social role theory perspective

Drawing from clinical and organizational narcissism research, we develop a novel measure of narcissistic rhetoric, investigating its prevalence in a sample of 1863 crowdfunding campaigns. An experiment using 1800 observations further validates our measure and confirms our hypothesized inverted-U relationship between narcissistic rhetoric and crowdfunding performance. Leveraging social role theory, we explore sex, sexual orientation, and race as potential moderators of this relationship. Moderation tests reveal LGBTQ entrepreneurs generally yield greater performance when using narcissistic rhetoric than heterosexuals while racial minorities underperform Caucasians using narcissistic rhetoric. Our findings suggest successful crowdfunding campaigns must balance narcissistic rhetoric with entrepreneurs' perceived social roles.     

Managers’ informal learning: a trait activation theory perspective

Research focusing on how individual differences and the work context influence informal learning is growing but incomplete. This study contributes to our understanding of the antecedents of informal learning by examining the relationships of goal orientation, job autonomy and training climate with informal learning. Based on trait activation theory, this study examines how job autonomy and training climate, two work context factors, affect the influence of individuals’ goal orientation on informal learning. The sample included managers from a national restaurant chain in the United states. Higher levels of learning goal orientation, job autonomy and a supportive training climate were found to result in more informal learning. Congruent with trait activation theory, training climate moderated the goal orientation‐informal learning relationship, but not in the expected direction for avoid goal orientation. Implications for future research and practice are discussed.     

Managerial learning from social capital during internationalization

This study explores managerial learning from social capital during internationalization. Its two research questions are these: (1) how different managers perceive, interpret, and respond to foreign-market institutions, and (2) how connections, relations, and cognition enhance managerial learning. Using an interpretive approach, the study analyzes patterns of internationalization and strategic decision-making in four contrasting Norwegian case companies that internationalize to the Russian oil and gas market. The findings show that the managers of the case companies hold similar perceptions about foreign-market institutions, but that they interpret and respond to those institutions from various levels of learning, resulting in different enactment on institutions. Managers learning at a “higher” level adapt patterns and decisions to ensure institutional conformity, while those at a “lower” level makes minor adjustments in patterns and behavior only when necessary and therefore maintain institutional conflict. Further, the findings show that all three dimensions of social capital have a vital role in enhancing managerial learning, but that the various forms that the dimensions can appear as, affects the learning process. Furthermore, the findings show that managers who share cognitive frame of reference with few embedded relationships are better equipped to interpret and respond to institutions. This study contributes fresh insight about managerial enactment on foreign-market institutions, and reconciles our understanding about social capital as embraced by the structural, relational, and cognitive dimensions. This study also contributes to a greater understanding about how the three dimensions of social capital ought to be formed to enhance managerial learning.     

Social shopping promotions from a social merchant's perspective

Taking advantage of Web 2.0's user-participation and social networking capabilities, social shopping intermediaries have emerged as a promising online liaison between merchants and consumers by offering group discount deals to price-sensitive customers and early technology adopters. Our study compares the two most popular types of social merchants—restaurants and healthcare services—in terms of seven key factors that influence a merchant's sales using a Groupon promotion. We find that these two types of social merchants show significantly different characteristics for successful promotions. Based on a new proposed lifetime value model for social shopping promotions, this study also discusses its applicability with an illustration of the model and presents guidelines for social merchants who want to achieve the maximum lifetime value from a social shopping promotion. Finally, we discuss implications of our study for social merchants and social shopping intermediaries.     

SMEs and environmental responsibility: a policy perspective

Environmental policies to promote environmentally sustainable economic activity have often concentrated on larger firms. However, increasing attention is being paid to the role of small‐ and medium‐sized enterprises (SMEs) and entrepreneurial actors. In this paper, we examine how policy tools are being used to improve the environmental performance of SMEs and to redirect entrepreneurial energies in more environmentally benign directions. The empirical section adopts a case‐based comparative method to examine four instances of policymaking, drawn from different countries and industry sectors. The paper argues that while some interventions have proved effective in their own terms, better integrated approaches are required to address today's complex and deep‐rooted sustainability challenges. The paper identifies several policy implications including the need to: clarify the purpose of any intervention, address potential interactions and trade‐offs; select appropriate tools based on informed reviews of the options; remain sensitive to context‐specific factors; and devise effective vehicles for the promotion and governance of entrepreneurial initiatives.     

Internationalisation of Firms from Small Open Transition Economies

Abstract

The aim of this study is to determine the joint impact of intra-firm factors and inward foreign relationships on the status and stage of the outward internationalisation process of firms from small open transition economies. These factors and connections include firm's production capacity, experiential knowledge, psychic distance to target markets, inward international involvement (including foreign ownership and supply relations), and spillover effects. According to the empirical evidence, the inward internationalisation of Estonian manufacturers has considerably facilitated their export intensity.     

The financial impact of loyalty programs in the hotel industry: A social exchange theory perspective

With increased competition across the hotel industry for frequent travelers, who generate a disproportionate portion of revenue, loyalty programs appear to be a rational response to the competitive environment. The question remains, however, as to whether these programs are effective at increasing the profitability of hotel operators. This study analyzes the impact of customer loyalty programs on the industry specific performance metrics of occupancy rate, revenue, and operating margin. Utilizing a comprehensive database of 36 different hotel brands (e.g., Marriot, Hilton) encompassing 31 loyalty programs and 435 different hotel properties, we examine whether a loyalty program is indeed an effective tool to increase operating margin. In summary, empirical results suggest that investment in hotel loyalty programs has a positive impact on occupancy rates and profitability. And although the overall effect is modest, these results have several managerial implications for the hotel industry.     

The Internationalisation of Advertising

World expenditure on advertising has grown faster than world gross product in recent years. Organisational structure is highly dichotomised between small and large firms: the latter have engaged in restructuring into major transnational networks co-ordinated by holding companies. This is the most effective way to service multinational clients which have globalised product development but sell locally. But trade in advertising services is restricted by barriers to market access, national treatment and the opportunities created by global agreements such as the GATS. Technology may, however, be a more important influence on the internationalisation of agenceis than trade liberalisation.     

A social learning perspective of gambling behaviour among college students at Iowa State University,USA

This study assesses the proportion of college students who gamble and the level of their gambling involvement (i.e. frequency, scope, expenditure). In addition, a better understanding is sought of why students gamble and the factors that contribute to their gambling behaviour. The data were collected in the autumn of 1996 from 797 undergraduate students. The main outcome measures included the students' gambling status, scope, frequency and expenditure. The predictor variables were gender, age, employment status, grade point average and gambling expenditure of the mother, father and best friend of the respondents. Frequency and cross‐tabulation analyses were used to develop the respondents' demographic profile and to describe differences between characteristics of gamblers and non‐gamblers. Gamma‐statistics were used to test the strength of the relationship between predictors and outcome variables. Over half of the students gambled, and the two most frequently identified gambling activities were lottery and non‐casino cards. The majority indicated that they gambled for entertainment. On average, the students gambled three times and staked an average of 33 per month on their gambling. However, about 19% of them gambled 3–6 times and staked over 66 a month on gambling. Student gambling was found to be positively related to the gambling of their parents and the gambling of their best friend.     

Reorienting consumer education using social learning theory: sustainable development via authentic consumer pedagogy

The paper illustrates the growing interest in understanding consumer behaviour through a social learning theory (SLT) lens, and explains the recently launched United Nations Decade for Education for Sustainable Development (ESD). Then, the discussion turns to an overview of a recently developed ESD/SLT integrated theoretical framework, which is then applied to consumer education via an authentic pedagogy. The paper highlights the rich potential of authentic intellectual work in the form of observational learning by augmenting ESD within authentic consumer education curricula.     

Building user engagement to mhealth apps from a learning perspective: Relationships among functional,emotional and social drivers of user value

Smartphone applications for health-oriented purposes, or mHealth apps (MHAs), represent a growing opportunity to improve efficiency and sustainability in both national health systems and individual citizens' self-management of their health condition. However, little is known about how to build user engagement with MHAs to avoid user dropout and encourage their long-term loyalty and advocacy of MHAs to other users. This paper analyzes how to build user engagement from a learning perspective, strengthening the effort to learn about personal healthcare. Specifically, we investigate how the determinants of MHAs' functional value (technology effort, technology performance, and brand trust) drive the user's hedonic (enjoyment) and social (networking, social image) value. Data is obtained from a sample of 400 current users of MHAs. Our findings show that technology performance mainly enhances the user's networking experience, while technology effort contributes mostly to enjoyment and brand trust is critical to the user's social image. The user's hedonic and social experience benefit user engagement, which ultimately fosters user loyalty and advocacy, thus bolstering the relevance of developing user-centric MHAs. Robustness analysis does not reveal gender, age, income level, or type of MHA impact, although user education moderates the strength of some of these relationships.     

组织学习研究的社会视角分析

群体学习的独特性导致有人认为学习必然是社会性的.群体学习是组织中产生共同理解的一个关键过程.个体学习可以在不需要他人而进行,而群(集)体学习固有地产生于人们的相互交往过程中.本文分析总结了关于组织学习的社会维度的主要研究,并进一步对群体学习的社会过程进行了阐述.最后对未来研究方向进行了展望.