Kinship and business: how entrepreneurial households facilitate business growth

Building on studies that have stressed the importance of context and the role of the family in business growth, this study explores the role of the entrepreneurial household in the process of business development and growth. We seek to understand how household strategy influences the development of new businesses, the ways in which household characteristics and dynamics influence business growth strategy decisions and how business portfolios are managed and developed by the household. To examine these questions, comparative case studies were undertaken drawing data from four entrepreneurial households located in remote rural regions of Norway and Scotland. The data reveal the role of the entrepreneurial household in the evolution of business creation and growth, examining the processual aspects of entrepreneurial growth, the interactions between business activities and entrepreneurial households and how business portfolios are developed in practice. Three analytical themes emerged from the analyses: the tightly interwoven connections between the business and the household, the use of family and kinship relations as a business resource base and how households mitigate risk and uncertainty through self-imposed growth controls. Although previous studies have viewed entrepreneurial growth largely as an outcome of personal ambition and business strategy, these results reveal the importance of the entrepreneurial household and the household strategy in determining business growth activities.     

The entrepreneurial process: an integrated model

In this study, a model for examining the process of how a person becomes an entrepreneur was developed by integrating planned behavior theory (PBT) with motivation-opportunity-ability (MOA) theory. The model posits that motivation, opportunity, and ability affect entrepreneurial intentions through personal attitude, subjective norms, and perceived behavioral control. A sample of 258 valid questionnaires was collected from entrepreneurial training-course participants in Taiwan. Based on this sample, a structural-equation analysis reveals several interesting results. First, personal attitude and perceived behavior control have a direct effect on entrepreneurial intentions. Second, subjective norms indirectly affect entrepreneurial intentions through personal attitude and perceived behavior control. Third, motivation affects entrepreneurial intentions through personal attitude and perceived behavioral control. Fourth, ability exhibits a directly positive association with entrepreneurial intentions, and indirectly affects entrepreneurial intentions through perceived behavioral control. Fifth, subjective norms affect entrepreneurial intentions through personal attitude and perceived behavioral control. These findings suggest that our model provides more information than those offered by PBT or MOA in understanding the process of becoming an entrepreneur.     

Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception

Although business model innovation has received increasing attention in recent years, there are gaps in existing literature concerning why innovation occurs. Drawing on the intentions model and knowledge-based view, this study explores the relationship between entrepreneurial alertness and business model innovation, proposing a moderated mediation framework to handle the questions of why some entrepreneurs achieve business model innovation successfully while others do not. Based on a dataset of 150 firms in northwest China, this study finds that (1) entrepreneurial alertness facilitates business model innovation; (2) explorative learning and exploitative learning mediate the relationship between entrepreneurial alertness and business model innovation; and (3) risk perception moderates the mediating effects of different types of learning and then affects the relationship between entrepreneurial alertness and business model innovation. Specifically, with the increase of risk perception, the mediating role through explorative learning is weakened, while the mediating effect through exploitative learning is enhanced.

     

Outlet ownership in franchising systems: an agency based approach

Building on prior agency theoretic explanations of the franchisor–franchisee relationship, this paper introduces the franchise system manager in the traditional dyadic channel. This allows us to link the franchisors internal agency problems of providing incentives to managers to their external agency problems of acquiring and extracting rents from franchisees. I find preliminary empirical support for this approach in a structural equations model estimated on a franchise system data set. I then develop and analyze an agency‐theoretic model with agency tradeoffs. An explicit rationale for mixed ownership in franchising emerges from the model, where the share of company owned outlets is endogenously determined as the tradeoff between franchisee rents and managerial compensation. Copyright © 2002 John Wiley & Sons, Ltd.     

Constructing a mediational model of small business growth

The purpose of this paper is to develop a mediational model of small business growth. It evaluates the links between human, social and financial capital of entrepreneurs, innovation and firm growth. Our goal through this model is to demonstrate that it is through the process of innovation these capitals are converted into growth. Based on an analysis of data from 228 Tunisian micro-enterprises, we concluded the mediation possibility of innovation on small business growth.     

The effectiveness of entrepreneurial firm’s knowledge acquisition from a business incubator

This cross-cultural research project, involving the United States and Finland, explored how the entrepreneurial firm’s acquisition of business processes’ knowledge from interaction with incubator management positively impacts on new product development, increased technical competence, enhanced reputation and lower costs of sales to customers. In a sample of 52 firms, the study’s methodology depended on single response, self-reported data. The findings suggest that the sole knowledge benefits gained by the firm, from the incubator relationship, is a perception of enhanced reputation. Also, incubator managers should focus more on assisting new technology based firms with growing the venture in the marketplace. Funding for this project was provided by The National Science Foundation, and The National Technology Agency of Finland.     

Sustaining entrepreneurial business: A complexity perspective on processes that produce emergent practice

This article examines the management practices in an entrepreneurial small firm which sustain the business. Using a longitudinal qualitative case study, four general processes are identified (experimentation, reflexivity, organising and sensing), that together provide a mechanism to sustain the enterprise. The analysis draws on concepts from entrepreneurship and complexity science. We suggest that an entrepreneur’s awareness of the role of these parallel processes will facilitate their approaches to sustaining and developing enterprises. We also suggest that these processes operate in parallel at multiple levels, including the self, the business and inter-firm networks. This finding contributes to a general theory of entrepreneurship. A number of areas for further research are discussed arising from this result.     

No business is an island: The network concept of business strategy

The purpose of this article is to explore the contributions that could be made to the conceptual frame of reference for business strategy management by one of the research programmes which focuses on the organization–environment interface, and to which a network approach has been applied. We start by examining some of the assumptions underlying the current “strategy management doctrine”. The network model of the organization–environment interface is then reviewed and three central issues of the strategy management doctrine are discussed from the viewpoint of the network model: (1) organizational boundaries, (2) determinants of organizational effectiveness, and (3) the process of managing business strategy.The conclusion reached is that in all three areas changes are required in the assumptions of the business strategy model. Our arguments stem from a basic proposition about the situations described by the network model: continuous interaction with other parties constituting the context with which the organization interacts endows the organization with meaning and a role. When this proposition applies, any attempt to manage the behaviour of the organization will require a shift in focus away from the way the organization allocates and structures its internal resources and towards the way it relates its own activities and resources to those of the other parties constituting its context. Such a shift in focus entails a somewhat different view of the meaning of organizational effectiveness: what does it depend on and how can it be managed?     

Developing an entrepreneurial typology: the roles of entrepreneurial alertness and attributional style

This study develops an entrepreneurial typology employing two dimensions, high versus low entrepreneurial alertness and internal versus external attributional styles that helps illustrate why entrepreneurs start new businesses. The resulting 2 × 2 typology of entrepreneurs identifies four entrepreneur types based on these two dimensions: the true believer, clueless, practical, and reluctant. Using a representative sample of 315 nascent entrepreneurs from the Panel Study of Entrepreneurial Dynamics, we found that some types differed across three key entrepreneurial characteristics, need for achievement, risk-taking propensity, and commitment, thereby providing some preliminary empirical support for the typology’s validity. We conclude by discussing future research avenues.     

The link between attention-deficit hyperactivity disorder symptoms and entrepreneurial orientation in Japanese business owners

Management Review Quarterly - Several studies have observed a relationship between (subclinical levels of) attention-deficit hyperactivity disorder (ADHD) and entrepreneurship. Recently, Yu et al....     

Unlocking the influence of family business exposure on entrepreneurial intentions

Although the impact of family business exposure on offspring’s entrepreneurial intentions has attracted significant attention, assessments of this impact remain inconsistent. To solve this puzzle, we switch the focus from the presence of family business exposure to the content of exposure by examining the learning experiences of business family offspring. Specifically, we test the impact of perceived parental entrepreneurial rewards on entrepreneurial intentions and explore the underlying process in this relationship. Findings from a sample of 131 Chinese business family offspring support that perceived parental entrepreneurial rewards are positively related to entrepreneurial intentions, and this relationship is found to be partially mediated by entrepreneurial self-efficacy; additionally, offspring’s family business involvement weakens the positive impact of perceived parental entrepreneurial rewards on entrepreneurial intentions but strengthens the impact of entrepreneurial self-efficacy. The findings from this research contribute to the social cognitive career theory, family business, and entrepreneurial cognition literature. We also provide practical guidance for parent entrepreneurs by clarifying the impact of perceived parental entrepreneurial rewards and family business involvement on their children’s entrepreneurial intentions.     

Collision density: driving growth in urban entrepreneurial ecosystems

The growth of entrepreneurial ecosystems is becoming increasingly dynamic. We introduce the concept of collision density, defined as the potential frequency of interdisciplinary interactions, to explain this phenomenon. We develop hypotheses about the impact of collision density on the growth of entrepreneurial ecosystems. This impact is hypothesized to be amplified by the presence of angel financing. We find support for our hypotheses in panel data from 89 urban entrepreneurial ecosystems of 92,229 investments between 2007 and 2014. We conclude with discussions of the the implications for research and practice.     

The interplay of entrepreneurial and non-entrepreneurial internationalization: an illustrative case of an Italian SME

This study describes SME internationalization as a process that combines entrepreneurial and non-entrepreneurial behaviour. We bring in insights from prior literature and use an illustrative case study of an Italian SME to demonstrate the interplay of entrepreneurial and non-entrepreneurial behaviour during the internationalization process. Our study shows that the combination of entrepreneurial and non-entrepreneurial internationalization cannot be fully explained with existing International Entrepreneurship literature or other internationalization theories, as they do not take into account the nonlinear nature of internationalization or explain why the process seems to reach a ‘glass ceiling’ beyond which it does not progress. The study concludes with a conceptual framework providing an alternative explanation. Based on our conceptual reasoning we propose that predominantly non-entrepreneurial internationalization can occur without developing a clearly defined internationalization strategy. Additionally, we argue that low commitment to internationalization prevents capability development and may lead to nonlinear internationalization. Furthermore, we suggest that family involvement may moderate a firm’s international entrepreneurial orientation, consequently leading to more non-entrepreneurial internationalization.

     

Relatedness and entry mode choice in the context of entrepreneurial business entries

In this research we aim to study how established firms develop new entrepreneurial business entry. We based our hypotheses on the theoretical propositions arising from the entrepreneurship strategic management interface. Specifically, we analyse which factors influence the entry mode choice in entrepreneurial business entries. We consider three groups of determinant factors: industry, firm and transaction-related factors. We test our hypothesis in a Spanish firm sample of 197 entrepreneurial business entries. Our results allow us to describe in which circumstances firms are more likely to perform entrepreneurial business entries by low resource commitment and control modes, such as strategic alliances. As a result, a theoretical model is proposed to assess the entry mode choice in this type of entry. Thus, this study contributes to generating debate in this topic.

The impact of desirability and feasibility on entrepreneurial intentions: A structural equation model

There is general agreement that attitudes towards entrepreneurship are determinant factors to decide to be an entrepreneur. In this context, this research is focused on analyzing the relationship between desirability and feasibility on university student’s intentions to create a new firm in Catalonia. A structural equation model supported by Krueger & Brazeal’s Model was tested with different groups of students. The main results reveal most of university students consider desirable to create a new firm, although the perception of feasibility is not positive. Also, there is a statistical significant and positively relationship between credibility and the intention to create a new firm.

Re-imagining the growth process: (co)-evolving metaphorical representations of entrepreneurial growth

We investigate the role and influence of the biological metaphor ‘growth’ in studies of organizations, specifically in entrepreneurial settings. We argue that we need to reconsider metaphorical expressions of growth processes in entrepreneurship studies in order to better understand growth in the light of contemporary challenges, such as environmental concerns. Our argument is developed in two stages: first, we review the role of metaphor in organization and entrepreneurship studies. Second, we reflect critically on three conceptualizations of growth that have drawn on biological metaphors: the growing organism, natural selection and co-evolution. We find the metaphor of co-evolution heuristically valuable but under-used and in need of further refinement. We propose three characteristics of the co-evolutionary metaphor that might enrich our understanding of entrepreneurial growth: relational epistemology, collectivity and multidimensionality. Through this we provide a conceptual means of reconciling an economic impetus for entrepreneurial growth with an environmental imperative for sustainability.     

The business model dilemma of technology shifts

Technology shifts are lethal to many manufacturing companies. Previous research indicates that this is not purely a problem of technological innovation, but is also closely related to the inertia of business models and business model innovation. This paper inquires into the dynamics of this intersection between technology and business models. Anchored in a case study in the automotive industry, it reveals how a potential technology shift constitutes a business model dilemma for firms leading in the existing technology. The paper illustrates why technology shifts are so difficult to master and contributes to theory by suggesting that managing technology shifts does not require either technology or service innovation in order to create a viable business model, but instead a compound of both. Furthermore, the paper applies a business model perspective to illustrate the explanatory power of analyzing the challenges of technology shifts faced by incumbent firms.     

Linking individual performance to business strategy: The people process model

During the last five years, a team of researchers has worked with the senior human resource (HR) teams of seven large companies with United Kingdom operations. This research initiative has focused on a number of aims, one of which has been to understand and model how business strategies are translated through human resource strategies and people processes into individual and organizational performance. This article summarizes the key findings, provides a map of how this translation takes place in these companies, and discusses why some people processes are more strongly linked to business strategy. © 1999 John Wiley & Sons, Inc.