A field study of entrepreneurial decision-making and moral imagination

How entrepreneurs make decisions under extreme uncertainty and ambiguity is central to explaining entrepreneurial success. However, because of their pioneering nature, these decisions also have significant ethical implications. While there has been an increasing focus on the unique approaches entrepreneurs take to decision-making, less attention has been paid to the inherent ethical dimension of making decisions under high uncertainty. This study applies the concept of moral imagination to the challenges of making entrepreneurial decisions under Knightian uncertainty. It examines the extent to which entrepreneurs use moral imagination to integrate the ethical dimensions of pioneering situations into their decision-making.     

Self-regulation,Co-regulation and the Audio-Visual Media Services Directive

This paper criticises the use of the concepts of self-regulation and command and control regulation as simplistic and often having a political function. They neglect the fact that there is a continuum of different types of regulation; they represent extremes rarely found in the real world. Moreover, regulatory regimes will be comprised of a cocktail of different regulatory approaches. The developing concept of co-regulation is likely to be more productive. It is unhelpful to attempt to draw up restrictive definitions of different types of regulation; it is much more important to assess them through the application of normative principles, including those relating to procedures, accountability, and enforcement of rights. The drafting of the Audio-Visual Media Services Directive initially made the mistake of using the narrow definitions of co- and self-regulation contained in the Interinstitutional Agreement on Better Law-Making, but amendments during the Parliamentary process have resulted in a more flexible approach better adopted to the recognition of existing co-regulatory regimes.

Managing moral distress: A strategy for resolving ethical dilemmas

Conflicts of interest. The boundaries of confidentiality. Right v. right dilemmas. Matters of duty, responsibility, character, and consequence. Ethical issues pervade professional life, and the moral distress they can create requires thoughtful reflection that moves beyond gut intuitions and knee-jerk reactions. This article presents a practical framework for assessing and resolving ethical dilemmas in a sophisticated manner, guided by a circumspect and reflective analysis able to withstand the scrutiny of others and minimize the potential for personal regrets. Central to the analysis set forth in this article's strategy are ‘interrogation questions’—a series of inquiries that draw from the richness of moral philosophy and ethical traditions, while reflecting the practical concerns of contemporary business practices—which guide the decision maker through a comprehensive review of primary considerations. Additionally, the article highlights myriad obstacles that may challenge one's awareness of a moral dilemma, a necessary precondition to employing the strategies of careful analysis and reflective judgment that this article outlines.     

Contracting, signaling, and moral hazard: a model of entrepreneurs, ‘angels,’ and venture capitalists

Investment by wealthy individuals, known as ‘angels,’ in startup firms is quite significant and has taken off in the last few years. Angels invest in the company at an earlier stage than venture capitalists (VCs) do. This paper examines the relationship between an entrepreneur, an angel, and a VC from the seed investment made by the angel to the exit stage. The study characterizes the equilibrium contracts among the players and provides insights into the related institutional arrangements. Next, the study examines the signaling aspects of the game. The paper also analyzes the moral hazard problems of the entrepreneur and the VC. It shows that the outcome in a startup firm is not efficient because of the free-rider phenomenon.     

Argonauts and Icaruses: Social networks and dynamics of nascent international entrepreneurs

Drawing on Bourdieu’s theory of practice, we consider internationalization as a process of field crossing and apply this framework to nascent international entrepreneurs. The analysis of 37 interviews with French entrepreneurs, managers, and support providers in China allows identifying two types of international entrepreneurs: (1) “Fallen Icaruses”, unable to incorporate and exhibit a global habitus and who fall back to the home field, and (2) “Global Argonauts”, incorporating and exhibiting a global habitus and who proceed with internationalization. Our findings show that social networks can be hostile to newcomers and that incumbents in those networks first assess newcomers’ “compatibility”. We posit that the success of international initiatives by entrepreneurs depends on their ability to cross and fit into different “fields”, and to develop various forms of social relationships in those fields.     

Institutions and moral hazard in open economies

I investigate the interaction between international trade and national institutional development in an environment characterized by heterogeneous individuals choosing their education levels to maximize their utilities; and institutions alleviating moral hazard by allowing managers to better observe and verify the productive efforts of workers. Liberalized trade allows institutions to serve as independent sources of comparative advantage. In this setting, I examine the effect of trade liberalization on the distribution of income in institutionally developed and underdeveloped nations. Trade affects income via a direct effect on prices and an indirect effect on the incentives to invest in education.     

A typology of social entrepreneurs: Motives, search processes and ethical challenges

Social entrepreneurship has been the subject of considerable interest in the literature. This stems from its importance in addressing social problems and enriching communities and societies. In this article, we define social entrepreneurship; discuss its contributions to creating social wealth; offer a typology of entrepreneurs' search processes that lead to the discovery of opportunities for creating social ventures; and articulate the major ethical concerns social entrepreneurs might encounter. We conclude by outlining implications for entrepreneurs and advancing an agenda for future research, especially the ethics of social entrepreneurship.     

The effects of ad heuristic and systematic cues on consumer brand awareness and purchase intention: Investigating the bias effect of heuristic information processing

With growing numbers of digital users, social media advertising becomes a vital marketing channel for attracting and sustaining consumers. Drawing on the heuristic-systematic model, this research investigates the effects of advertisement systematic cues including ad informativeness and ad persuasiveness, and ad heuristic cue which is ad poster category on the consumer brand awareness, and the sequential effect on consumer purchase intention. An experimental design featuring two categories of ad poster, namely, firm and influencer, is created for empirical evidence collection. Results show that ad informativeness and ad persuasiveness contribute to greater consumer brand awareness and purchase intention. The poster category can positively bias the influence of ad informativeness, and firm poster outperforms the influencer poster when controlling the advertisement content the same. The findings demonstrate the co-occurrence of heuristic and systematic information processing in the social media advertising context. This research deepens current understanding of social media advertising and provides practical implications for marketers to capitalize on different ad posters according to advertisement informativeness and persuasiveness feature.     

创业自我效能与企业家认知及创业行为关系研究

在对社会认知理论在创业研究领域应用新趋势及成果总结的基础上,对创业自我效能形成的认知因素及与创业行为的关联机制进行分析。提出了综合研究模型,提出沿着新创企业起源和发展历程中企业文化形成的脉络来考察创业自我效能对创业期企业家认知及创业行为的影响的研究思路,以及未来的研究趋势、研究重点与分析要点,为进一步深入到领导与学习过程,探索在此过程中企业家的认知发展,以及对创业绩效的影响奠定了理论基础。     

Push-based brand awareness: the role of product availability and in-store merchandising

This study introduces a new brand awareness conceptualization; ‘push-based brand awareness’ in the light of available retailing, distribution, and branding literature. Previously, push-based awareness merely defined brand/product availability. This study extends that definition by including available brand awareness created by in-store merchandising. While out-of-stock (OOS) literature extensively interprets product availability and consumers' responses to OOS brands, a brand's effect on consumer awareness remains unexamined. Because such brand awareness may be one of the major reasons behind frequently purchased product success, such consumer awareness deserves closer attention. This study introduces the push-based brand awareness concept with a proposed model including possible managerial implications.     

Consumer ethics: moral ideologies and ethical beliefs of a micro-culture in the US

This study explores the ethical ideologies and ethical beliefs of African American consumers using the Forsyth ethical position questionnaire (EPQ) and the Muncy–Vitell consumer ethics questionnaire (MVQ). The two dimensions of the EPQ (i.e. idealism and relativism), and gender were the independent variables and the four dimensions of the MVQ (i.e. illegal, active, passive and no harm) were the dependent variables. A sample of 283 students from a historically black university was used to explore the relationship between the independent and dependent variables. Findings suggested that consumers who scored higher on the idealism scale and lower on the relativism scale were more likely to reject questionable activities. On average, females expressed more willingness to reject questionable activities than males.     

Artificial intelligence: Building blocks and an innovation typology

The range of topics and the opinions expressed on artificial intelligence (AI) are so broad that clarity is needed on the the field’s central tenets, the opportunities AI presents, and the challenges it poses. To that end, we provide an overview of the six building blocks of artificial intelligence: structured data, unstructured data, preprocesses, main processes, a knowledge base, and value-added information outputs. We then develop a typology to serve as an analytic tool for managers grappling with AI’s influence on their industries. The typology considers the effects of AI-enabled innovations on two dimensions: the innovations’ boundaries and their effects on organizational competencies. The typology’s first dimension distinguishes between product-facing innovations, which influence a firm’s offerings, and process-facing innovations, which influence a firm’s operations. The typology’s second dimension describes innovations as either competence-enhancing or competence-destroying; the former enhances current knowledge and skills, whereas the latter renders existing skills and knowledge obsolete. This framework lets managers evaluate their markets, the opportunities within them, and the threats arising from them, providing valuable background and structure to important strategic decisions.     

Seat belt utilisation and awareness in UAE

Seat belts (SBs) are effective devices for reducing injury risk due to traffic accidents. Seat belt wearing was made compulsory in the United Arab Emirates (UAE) in January 1999 for drivers and front seat passengers (FSPs). No comprehensive study has ever assessed SB wearing rates across the country. Also, little is known on drivers' awareness of the importance of wearing seatbelts and how human factors affect wearing habits. This study aims to determine SB wearing rates for drivers and FSPs in UAE through an observational field study. It also aims to investigate perceptions and behaviour of drivers on this issue as well as human factors that affect wearing rate through a randomly distributed questionnaire. The results of the field study show that the overall SB wearing rate across the country was 61% for drivers and 43.4% for FSPs and that there were significant differences between the seven emirates that constitute the country. The questionnaire results show that age, education level, gender, marital status and nationality of drivers affect wearing habits and perceptions. Future implications in terms of improving traffic safety awareness are discussed.     

Managers and their not-so rational decisions

Today's corporate environment requires managers to be excellent decision makers. Their ability to make fast, widely-supported, and effective decisions will, in large part, shape the performance of their firms. In this article, we describe two cognitive systems that influence decision making. System 1 refers to a process that is fast, effortless, and intuitive. System 2 is a slow, controlled, and rule-governed decision-making process. Both are important to a wide variety of managerial decisions, and they interact with each other. There are, however, a number of forces at work that hinder the effectiveness of these processes. For example, we know from prospect theory that managers are unwilling to incur loss, so much so that they often make irrational decisions based on a small probability that they could avoid such loss. Another example, the escalation of commitment, explains why managers may continue to dedicate resources to failed projects. We describe these and other biases, with a view toward helping managers better understand the problems of decision making and improve the effectiveness of their decisions.     

Household norms and their role in reducing household electricity consumption

Researchers have only recently begun to investigate the role of the norms of the household or family group in energy‐efficiency decisions. These researchers have demonstrated that these norms can influence the behaviour and attitudes of children within the household. We contribute to their findings by providing a characterization of the use of household norms in household decisions about electricity efficiency. For our qualitative research, we conducted focus groups with three different household types: (1) share houses/young couples with no children; (2) households with children; and (3) empty nest/elderly households in three regional centres in New South Wales, Australia (total of 76 respondents in nine focus groups). Specifically, we found that household norms were evident in the decision‐making process through rules and expectations about behaviour and the use of sanctions to enforce or shaped that behaviour. We identified several drivers of household norms including a household member taking the role of ‘efficiency champion’ and the occurrence of critical incidents in the household. In addition, we found that household members try to establish household norms to socialize household members with the goal of the intergenerational transmission of desirable behaviours. Based on these observations, we conclude that household members employ norms to regulate and reduce their electricity consumption, and as a mechanism for consumer socialization. As such, our findings are important for marketers and policy makers tasked with regulating household consumption.     

Social ties and venture creation by returnee entrepreneurs

Recent years have witnessed the return of individuals of Indian or Chinese origin from developed markets to their home countries to start new ventures. Returnee Entrepreneurs (REs) facilitate both direct technology transfer and indirect technology spillovers to local firms, thus contributing to the technological development of emerging economies. Much previous work is based on the integration of ethnic entrepreneurs in their host countries or business activities of transnational entrepreneurs that traverse their host and home countries. This study explores the role of social ties in venture creation by REs. Based on twenty case studies in India, the findings show that (1) local ties are indispensable for venture creation, and (2) the heterogeneity in the way REs leverage social ties across the host and home countries is contingent on the location of their intention to start up and generation of idea for their venture. The implications of these findings are discussed.     

Market Share Overestimation and the Noncomplementarity Effect

Recent research indicates that people tend to overestimate the likelihood of an alternative, particularly when an alternative is considered in isolation rather than as part of a set of alternatives. The present experiment shows that subjective market share overestimation and noncomplementary market share estimates are more likely to be observed for individuals who are high (vs. low) in concern about cognitive closure or when a small (vs. large) set of alternatives is considered. Implications of the results for understanding managerial decision making are discussed.     

Electricity awareness and consumer demand for information

With the envisioned growth in the residential electricity demand and increased share of intermittent renewables in the supply mix, consumers will need to be better informed about their electricity consumption and to play an active role in managing their electricity use. However, consumer inattention and lack of information are ubiquitous, especially in household energy‐related settings. Thus, using a novel survey and actual monthly electricity consumption data, this study set out to measure the level of awareness about electricity bills, prices and costs among some Finnish households—as captured by the answers to six questions—and to investigate whether higher levels of “electricity awareness” are associated with electricity savings. In addition, this study analyses the willingness to receive extra information about energy consumption and savings and how it differs between “electricity aware” and “electricity unaware” respondents. The results indicate low levels of “electricity awareness” among the respondents of the survey. Compared to the respondents with little knowledge about electricity bills, prices and costs, the respondents with higher levels of “electricity awareness” tend to consume less electricity. Higher levels of awareness about electricity use and consumption might “materialize” inconspicuous consumption patterns, as opposed to more general facts about the largely invisible environmental consequences of everyday practices. More than two‐thirds of the total number of respondents would like to receive additional information about energy consumption and how to save energy. However, there exists a significant portion of “electricity unaware” respondents who are not only unwilling to receive such information, but are also unaware of their own knowledge deficits. To maximize the impact of any information strategy, decision makers should attempt to engage with this type of consumer; by becoming more aware of their knowledge deficits, people might become more receptive to information that can benefit them.     

Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators

Despite a surge of studies examining the role of social capital in the entrepreneurial process, no quantitative assessments exist of the empirical evidence to date. To resolve seemingly conflicting results, we conducted a meta-analysis of the link between entrepreneurs' personal networks and small firm performance and identify new moderators affecting this relationship. Analyses of 61 independent samples indicated that the social capital–performance link was positive and significant (r_c = .211). Effect sizes of weak ties were smaller than those of structural holes, while network diversity had the largest positive effect on performance. Results also showed that the social capital–performance link depends on the age of small firms, the industry and institutional contexts in which they operate, and on the specific network or performance measures used. Based on these findings, we develop recommendations for future research on the contingent value of social capital for small firms.