Entrepreneurial Orientation versus Small Business Orientation: What Are Their Relationships to Firm Performance?

This study examines the constructs of entrepreneurial orientation (EO) versus small business orientation (SBO), their impact on small business performance, and whether these effects are moderated by longevity. A sample of 267 small business owners from 11 small–medium downtowns was used in structural equation modeling (SEM) testing of the measurement, structural and moderation hypotheses. The measurement confirmatory factor analyses models of the two constructs revealed that EO and SBO are unique constructs. Then a structural model predicting performance was tested. Finally, a two‐group model split on “below 11 years” versus “11+ years” demonstrated that the structural paths connecting EO and SBO to performance are not the same in these groups: for the younger group, only EO significantly predicts performance while for the older group, only SBO significantly predicts performance.     

Leadership and Business Ethics: Does It Matter? Implications for Management

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of 'corporate governance' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face.     

Social Responsibility and Performance: Does Strategic Orientation Matter for Small Businesses?

This paper examines whether strategic orientation toward corporate social responsibility (CSR) is instrumental in shaping small firms’ social responsibility practices leading to their enhanced financial performance and reputation. Data were collected from 182 small businesses operating in Malaysia based on random sampling technique and analyzed using Partial Least Squares Structural Equation Modeling. Analysis of the findings confirm that small firms’ long‐term strategic approach toward CSR is critical in driving their responsible practices toward environment, customer, community, employees, and suppliers which in turn impact small firms’ financial performance and better reputation building. These findings suggest that customers' and employees’ interests are strategic imperatives that small firms should address in enhancing their financial performance and building better reputation in the community. These findings have important implications for small firms’ strategic policy posture which are highlighted in the paper. The paper also identifies the possible limits of the research and suggests avenues for future studies.     

Deception in Business Networks: Is It Easier to Lie Online?

This article synthesizes research presented in several models of unethical behavior to develop propositions about the factors that facilitate and mitigate deception in online business communications. The work expands the social network perspective to incorporate the medium of communication as a significant influence on deception. We go beyond existing models by developing seven propositions that identify how social network and issue moral intensity characteristics influence the probability of deception in online business communication in comparison to traditional communication channels. Remedies to detect and discourage deception in online business networks are also offered, as well as limitations and future research directions.     

Does Reflection Help Students to Develop Entrepreneurial Capabilities?

Recently, scholars have suggested that reflection is an important, or even essential, aspect of entrepreneurship teaching. However, there has been little empirical research on the links between reflection and entrepreneurial learning in a university setting. We test the relationship between reflection and learning in a sample of 125 entrepreneurship students. The results show that reflection supports the development of entrepreneurial capabilities as manifested in the change of Perceived Behavioral Control (PBC). We also find that previous startup experience and reflection are positively related to the baseline level of PBC. However, we find no evidence of vicarious learning through family business exposure. Implications for practice and future research are discussed.     

Does It Pay to Promote on eBay?

Promotional upgrades to auction listings are now a ubiquitous feature of auction Web sites. We examine 705 auctions of a single consumer-electronic product on eBay and test whether use of various promotions results in a greater probability of sale or a higher realized price. We find that promotions that focus on display enhancements, such as border, bold, or highlight, are not worth the cost. However, the subtitle promotional tool is effective and worth the cost. We also find interesting results regarding seller reputation: although seller reputation does not increase the probability of a sale overall, it can result in higher realized price if a reputable seller is selected. Implications for promoting on eBay are discussed.     

Business ethics: Restrictive or empowering?

There is a tendency in the business ethics literature to think of ethics in restrictive terms: what one should not do, and how to control this. Drawing on Lawrence Kohlberg's theory of moral development, the paper focuses on, and draws attention to, another more positive aspect of ethics: the capacity of ethics to inspire and empower individuals, as well as groups. To understand and facilitate such empowerment, it is argued that it is necessary to move beyond Kohlberg's justice reasoning so as to appreciate the value and importance of feeling and care. Accordingly, we draw upon case study material to review the meaning of Kohlberg's higher stages — 5, 6 and 7 — to question the meaning of ethical reasoning. With such deeper understanding of particular ethical codes or practices, it is thought that members of organisations may come closer to thespirit, as opposed to the letter, of ethical conduct in organisations. This, we argue, is consistent with the degree of trust and integrity demanded by leaner, post-bureaucratic ways of organizing and conducting business as well as being personally beneficial to the people involved.Bjørn Kjonstad has recently completed his Masters dissertation. He has subsequently been ordained in the Western Buddhist Order and is currently devoting himself full-time to the work of the Friends of the Western Buddhist Order.Hugh Willmott is Reader in the Manchester School of Management having previously held appointments at the Aston Business School and Copenhagen Business School. He has taken refuge in the Kagyu Order of Tibetan Buddhism. His most recent books have beenLabour Process Theory (Macmillan, 1990 co-edited with David Knights),Critical Management Studies (Sage, 1992, co-edited with Mats Alvesson) andSkill and Consent (Routledge, 1992, co-edited with Andrew Sturdy and David Knights) andMaking Quality Critical (Routledge, 1994 co-edited with Adrian Wilkinson). Their common theme has been a critical examination of the changing organization and management of work in modern society.     

Does Social Performance Really Lead to Financial Performance? Accounting for Endogeneity

The empirical relationship between a firm’s social performance and its financial performance is still not well established in the literature. Despite more than 30 years of research and more than 100 empirical studies on the issue, the results are still mixed. We argue that the heterogeneous results found in previous studies are not due exclusively to problems related with the measurement instruments or the samples used. Instead, we posit that a more fundamental problem related with the endogeneity of social strategic decisions could be driving most of the empirical findings. We show that, using a panel data of 658 firms from 1991 to 2005, how some of the results found in previous research change, and some are even reversed when endogeneity is properly taken into account.     

What Does It Mean to Act With Integrity?

This exploratory study was aimed at understanding more about theconcept of integrity, first, and second, to identify whatintegrity looked like in practice. The sample consisted of over300 high school students who completed a college entrance essayabout acting with integrity as part of their college application. Their responses were content analyzed along a number ofdimensions. Results revealed, in the first place, some confusionabout the concept of integrity. The focus of acting withintegrity was most often directed to one's own behaviors ratherthan the behaviors of other people but, in this regard, theactions typically assumed a leadership responsibility (in apersonal rather than organizational context). Self-esteem wasone very important reinforcing outcome of such actions.     

Organisational Whistleblowing Policies: Making Employees Responsible or Liable?

This paper explores the possible impact of the recent legal developments on organizational whistleblowing on the autonomy and responsibility of whistleblowers. In the past thirty years numerous pieces of legislation have been passed to offer protection to whistleblowers from retaliation for disclosing organisational wrongdoing. An area that remains uncertain in relation to whistleblowing and its related policies in organisations, is whether these policies actually increase the individualisation of work, allowing employees to behave in accordance with their conscience and in line with societal expectations or whether they are another management tool to control employees and protect organisations from them. The assumptions of whistleblower protection with regard to moral autonomy are examined in order to clarify the purpose of whistleblower protection at work. The two extreme positions in the discourse of whistleblowing are that whistleblowing legislation and policies either aim to enable individual responsibility and moral autonomy at work, or they aim to protect organisations by allowing them to control employees and make them liable for ethics at work.     

The Influence of Large Stake Family Control on Performance: Is It Agency or Entrenchment?

Agency theory posits that the greater degree of control by those with decision-making authority, the greater the overall organizational performance. Conversely, entrenchment theory implies that at extremely high levels of inside control by those with decision authority, organizational performance decreases. Using a nationwide sample of 2,631 privately held and publically traded family businesses, we examined if the relationship of percent family ownership is an agency or entrenchment relationship and found the latter. Specifically, there was a statistically significant negative relationship between percent of family control and sales growth as well as a strong inverse relationship between percent of family controlling the top management team and all measures of financial performance.     

Industry Business Associations: Self-Interested or Socially Conscious?

According to deontic justice theory, individuals often feel principled moral obligations to uphold norms of justice. That is, standards of justice can be valued for their own sake, even apart from serving self-interested goals. While a growing body of evidence in business ethics supports the notion of deontic justice, skepticism remains. This hesitation results, at least in part, from the absence of a coherent framework for explaining how individuals produce and experience deontic justice. To address this need, we argue that a compelling, yet still missing, step is to gain further understanding into the underlying neural and psychological mechanisms of deontic justice. Here, we advance a theoretical model that disentangles three key processes of deontic justice: The use of justice rules to assess events, cognitive empathy, and affective empathy. Together with reviewing neural systems supporting these processes, broader implications of our model for business ethics scholarship are discussed.     

How Does Inward FDI Hinder or Promote Outward FDI? Three Cases of Chinese Automotive Industry

In this paper we investigate the mechanisms underlying dynamic linkages between inward FDI and outward internationalization in the Chinese automotive industry. While several studies have examined the relationship between inward and outward FDI using empirical data, this is among the first to employ a case study approach to investigate how international joint ventures (IJVs) established between foreign and Chinese automakers can shape their internationalization motivation, degree, and speed. We discuss some unique features of Chinese carmakers with and without IJVs to elucidate how firms without IJVs will be more driven to expand internationally while firms with IJVs face constraints in venturing abroad.     

Business performance and social media: Love or hate?

The social media space has become a common place for communication, networking, and content sharing. Many companies seek marketing and business opportunities via these platforms. However, the link between resources generated from these sites and business performance remains largely unexploited. Both managers and financial advisors can profit from the lessons learned in this study. We conceptualize four channels by which social media impacts financial, operational, and corporate social performance: social capital, customers’ revealed preferences, social marketing, and social corporate networking. An empirical test of our framework shows that ‘followers’ and ‘likes’ positively influence a firm's share value, but only after a critical mass of followers is attained. Our estimates suggest that Twitter is a more powerful tool to enhance business performance than Facebook.     

Consumer Choices Under Small Probabilities: Overweighting or Underweighting?

This article provides a theoretical account and identifies boundary conditions for the common beliefs about the “overweighting of small probabilities”. Based on four studies, our results suggest that the weighting of probabilities is context-dependent. When the contrast in value is reduced or not presented in a decision problem, small probabilities are less likely to be overweighted. In addition, as the associated payoffs increase, the weights on small probabilities tend to diminish or even to be “underweighted”. However, there is an “interpersonal difference” in the weighting of probabilities which reflects the particular circumstances of individuals, including their wealth status. Some implications of small probabilities for marketing practices are also investigated and discussed.     

Social Entrepreneurship and Business Ethics: Does Social Equal Ethical?

This editorial to the special issue addresses the often overlooked question of the ethical nature of social enterprises. The emerging social entrepreneurship literature has previously been dominated by enthusiasts who fail to critique the social enterprise, focusing instead on its distinction from economic entrepreneurship and potential in solving social problems. In this respect, we have found through the work presented herein that the relation between social entrepreneurship and ethics needs to be problematized. Further, we find that a range of conceptual lenses and methodological approaches is valuable as the social entrepreneurship field matures.     

Environmental Respect: Ethics or Simply Business? A Study in the Small and Medium Enterprise (SME) Context

In recent years there have been ever-growing concerns regarding environmental decline, causing some companies to focus on the implementation of environmentally friendly supply, production and distribution systems. Such concern may stem either from the set of beliefs and values of the company’s management or from certain pressure exerted by the market – consumers and institutions – in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products. Sometimes, however, ethics and market rules are not enough to deal with this situation and specific laws must be considered. This is the case when companies base their activity on the ‹ethics of self-interest’ concentrating their efforts on projecting an adequate image – e.g. environmental respect – rather than fundamentally behaving in environmentally respectful ways. This article, taking as reference the SME context, discusses the reasons for implementing environmentally friendly systems. Both ethics and business seem to be relevant and, therefore, a certain balance between market and interventionism seems to be necessary.