Environment,corporate entrepreneurship,and financial performance: A taxonomic approach

This study examined the association between a firm's external environment, corporate entrepreneurship, and financial performance. The study emphasized three propositions: (1) perceived—rather than objective-characteristics of the environment significantly influenced entrepreneurship activities; (2) a multidimensional definition of a firm's environment was essential to unravel the interplay between the environment, orporate entrepreneurship activities, and financial performance; and (3) a taxonomic approach had the advantage of accounting for the interrelationships among the dimensions of the environment in classifying firms.Using data from 102 companies in six4-digit industrial classification codes (SIC),cluster analysis was used to distinguish four environmental settings: “dynamic growth,” “hostile and rivalrous but technologically rich,” “hospitable, product-driven growth,” and “static and impoverished” environments. These four environments varied in their characteristics.The four empirically derived environment clusters were then used to examine variations in corporate entrepreneurship—operationalized as corporate innovation and venturing, and corporate renewal activities. The first dimension—corporate innovation and venturing—had four components: new business creation, new product introduction, percent of revenue from new products, and technological entrepreneurship. The renewal dimension had three components: mission reformulation, reorganization, and system-wide change. The data were used to test six hypotheses:

• 1.H1: In dynamic or growth environments, companies will emphasize new business creation and innovation.
• 2.H2: Environmental hostility is positively associated with the redefinition of business through venturing activities.
• 3.H3: Hospitable business environments are positively associated with business venturing and renewal activities.
• 4.H4: Static environments are inversely associated with corporate venturing and renewal activities.
• 5.H5: Corporate entrepreneurship activities are positively associated with company financial performance.
• 6.H6: Corporate entrepreneurship activities emphasised in HI through H4 will be significantly and positively associated with company financial performance in their respective environmental clusters.

The results provided general support for the six hypotheses. They showed that: (1) each environmental cluster had a distinct combination of activities relating to corporate innovation and venturing, and renewal; (2) corporate entrepreneurship activities varied in their associations with measures of company growth and profitability; and (3) the associations between corporate entrepreneurship and company financial performance varied among the four environment clusters. The results from this study can help executives in selecting specific entrepreneurial activities that match the demands of success in their business environment to improve their company's performance.     

Opportunity discovery and creation in social entrepreneurship: An exploratory study in Mexico

Building on the literature on opportunity identification among commercial entrepreneurs, we propose a conceptual framework for the opportunity identification process in social entrepreneurship that includes both opportunity discovery and opportunity creation. We develop scales to measure these constructs and examine their validity and reliability. In addition, we develop and test hypotheses explaining the causes of opportunity discovery and opportunity creation. Our results confirm that opportunity discovery and opportunity creation are mutually exclusive constructs. We also find support for the role of radical innovation and information search in the opportunity identification process in a sample of Mexican social entrepreneurs.     

Antecedents and outcomes of digital influencer endorsement: An exploratory study

The advertising and marketing literature have established that celebrity endorsements constitute an effective way to enhance attitudes toward brands and increase purchase intents. However, there are no relevant studies on digital influencers. This study addresses the research gap by examining the effect of digital influencers' attractiveness and the effect of the congruence between a digital influencer and a brand on consumer attitudes and purchase intentions. By applying structural equation modeling to a sample of 307 followers of digital influencers, a model was tested and group analysis was performed for two categories (“entertainment & video games” and “fashion & beauty”). The results show that both brand attitudes and purchase intentions are influenced by the digital influencer's attractiveness (which includes both likeability and familiarity) and by the congruence between the digital influencer and the brand. This study makes several contributions to both theory and practice, which are highlighted in this paper.     

What and how to communicate about a corporate brand with the consumers: An exploratory study

The present exploratory study investigates the differential impact of various relevant corporate brand associations on consumers' cognitive (product attitude and purchase intention) and affective responses (affective corporate commitment) in the three sectors, namely durables, services and fast moving consumer goods. The findings reveal that corporate brand associations can be categorised into two categories – universal associations, which are influential in all the sectors, and sector-specific associations, which have a differential effect on consumers in different sectors. Thus, this study reveals that corporate branding is important to consumers in all the sectors, but a single corporate brand story does not work in all the sectors. Further, corporate associations do not always have a positive effect on the consumers; under certain circumstances, these might either have no effect or have a negative effect on the consumers. Finally, there are two routes by which corporate brand associations can influence consumers – by affecting their cognitive responses or by influencing their affective responses towards the company. The recognition of the important corporate brand associations in the three sectors, and the routes (cognitive or affective) through which these associations influence consumer choices would enable marketers to develop more sophisticated corporate communication strategies.     

Healthy financial habits in young adults: An exploratory study of the relationship between subjective financial literacy,engagement with finances,and financial decision-making

This paper provides insights into young adults' financial habits and decision-making considerations as they enter the workforce. We use 28 semi-structured interviews with Australian university graduates to explore how their motivation to engage with personal finances and their subjective financial literacy, i.e., self-reported, support healthy financial habits. Our findings show that a young adult's social context and exposure to financial hardship rather than their financial confidence determine the health of their financial habits. We observed research participants in a romantic partnership as more focused on their future. This future focus motivates them to engage more with their finances and manifests as explicit goal setting, formal budgeting, or adherence to strict bucket systems. These insights might be useful for policymakers and educators: social context matters when designing financial health interventions, while financial education programs predominately should aim at demystifying complex long-term financial decision-making such as investments and retirement.     

Gender differences in financial socialization in the home—An exploratory study

Recent literature has stressed the need for research examining the causes of females in general having lower levels of financial literacy than males. This article uses social cognitive theory of gender development as a framework to propose differing financial socialization of children in the home by gender as a possible cause of gender differences later in life. Evidence is found of gender based differences in the financial socialization of eleven and twelve year olds. Findings include more frequent parent‐child discussions being correlated to more positive financial attitudes, but not to saving behaviour. Saving behaviour of children is influenced by attitudes to money along with the presence of parents when spending, which is subject to a same sex gender bias for girls, with large effect sizes. Girls are over 200% more likely to state they save some of their pocket money if their mother is present when they spend their pocket money, compared to having no parent present. This difference does not exist for male children. When a boy is with both parents when spending, they are 245% more likely to report saving some of their pocket money then when neither parent is present. Having a father present when spending does not yield significantly different results to when no parent is present. These findings of gender biased financial socialization in the home are important considerations for the design of school‐based financial literacy programmes. Specifically, these programmes should consider a goal of encouraging discussion and questioning gender based attitudes and roles in the home. They are also important findings in terms of going some way to explaining the existence of a gender difference in financial knowledge in adulthood.     

Sustainable corporate entrepreneurship: Evolving and connecting with the organization

Corporate entrepreneurship necessarily entails both risk and high levels of uncertainty; yet, established organizations are typically positioned as efficient engines that function best via cautious and routine progress, which can hinder attempts to inject innovative ideas into mature businesses. As such, conscious effort is required to build a corporation's capacity for sustainable entrepreneurship. While a few exceptional companies have built and maintained an enduring capability for entrepreneurship, the majority of firms possess a general resistance to these initiatives. Commitment to entrepreneurship may cycle between high or moderate support for the activity, to floundering interest or disbanded initiatives, as conditions in the internal and external environment shift. This cycling pattern, unfortunately, prevents the development of enduring capabilities. Herein, it is revealed how companies can progress their entrepreneurial capabilities over time, adjusting and improving them as the firm learns and adapts to change. To accomplish this, companies must develop strategic objectives to guide entrepreneurs, a management structure to support their work, and processes that inform assessment and decision making. Through an Evolve and Connect model, these three contexts can adjust to shifts in the external environment and the changes and progress happening within the organization. Over time, however, managers need to maintain a link between entrepreneurial activity and the organization's mainstream.     

Innovation and corporate entrepreneurship in service businesses

The strategic entrepreneurship field has established the importance of a generalized entrepreneurial behaviour across the organization. However, extant research has failed to establish how the association with innovation is different in service businesses. This is a relevant gap in the literature addressed by the paper, given the role of services in the world economy and the importance of employee–client interactions for the competitiveness of most service businesses. An empirical analysis from 127 service and non-service firms, using hierarchical multiple regression, confirms there are relevant differences, with important theoretical and managerial takeaways.     

Linking corporate logo,corporate image,and reputation: An examination of consumer perceptions in the financial setting

This study aims to fill a gap in marketing studies concerning the effect of a logo on consumer evaluations. The research addresses two questions: (1) what are the factors that influence the favorability of the corporate logo; and (2) what are the main influences of this favorability on corporate image and corporate reputation? The favorability of a corporate logo is reflected by the extent to which consumers positively regard that logo. The findings from the consumers' perspectives in the context of a financial setting, suggest that the main factors that bear influence on a favorable corporate logo (antecedents) are: corporate name, design, and typeface. The findings reveal the importance of the company's corporate logo in enhancing the corporate image, attitude toward advertisements, recognizability, familiarity, and corporate reputation. Key implications for managers and researchers are highlighted.     

Language and cross-border acquisitions: An exploratory study

The aim of this study is to examine the effects of language on post-acquisition performance of US based cross-border acquisitions. In this study we attempt to show that post-acquisition performance is explained by the linguistic distance between the acquirer and target country of the acquisition. In addition, this study explains the moderating role of acquisition experience in the linguistic distance-acquisition performance relationship. An analysis of 1120 US acquisitions in 33 target countries over a period of 6 years (2007 to 2012) demonstrates that linguistic distance has explanatory value in post-acquisition performance. Our analysis also demonstrates that the acquirer’s cross-border acquisition experience plays a significant role as a moderator of this linguistic distance—acquisition performance relationship. In addition, our analysis of lingua franca proficiency also lends support to our hypothesized relationships and demonstrates the robustness of our findings.     

Properties of balance: A pendulum effect in corporate entrepreneurship

Organizations tend to evolve in ways that are inherently resistant to entrepreneurship. Yet, entrepreneurship is instrumental for ensuring the long-term sustainability of any enterprise. The key to maintaining relatively high levels of entrepreneurship within a company lies in understanding the basic nature of the entrepreneurial experience, recognizing the inherent entrepreneurial potential of all employees, and creating work climates that allow employees to act on that potential. Five primary design elements are identified for facilitating such climates. Underlying these design elements is a set of seemingly conflicting properties. The challenge to companies is to achieve a balance between these properties whereby they are allowed to co-exist. Approaches to implementing this balance are addressed herein.     

Integrating customer orientation, corporate entrepreneurship, and learning orientation in organizations-in-transition: an empirical study

The paper addresses the issue of interrelationships between market orientation, corporate entrepreneurship, and learning orientation in the context of emerging economies. These three constructs have drawn an increasing level of interest in both marketing and management fields as organizations face challenges in a volatile environment. With a national sample of state-owned enterprises in China, the present study simultaneously tests potential relations between these structural constructs and their relationships with the organizational outcome that is reflected with marketing program dynamism. The findings of this study indicate that: (1) sampled state-owned enterprises demonstrate a higher level of changes in organizational outcome resulted from a stronger customer orientation, corporate entrepreneurship, or learning orientation; (2) learning orientation fully or partially mediates the impact of customer orientation and corporate entrepreneurship on outcome; (3) state-owned enterprises with foreign partnership have a higher level of customer orientation, entrepreneurship, and learning orientation; and (4) state-owned enterprises in the service sector have a higher level of customer orientation.     

The rise and fall of the Merlin-Gerin Foundry Business: A case study in French corporate entrepreneurship

This case study discusses the history of the creation and development within an established French electrical firm of a new business, a high-tech foundry, by a dynamic entrepreneur. We follow the trajectory of this internal venture from launch to apogee, divestment, and closure over a period of 26 years.First, we outline a framework for the selection of the external and internal variables that will allow us to interpret the case within the present theories and practices of internal corporate venturing. This framework is also useful for analyzing some particular aspects that may be attributed to the specific culture and environment of the Merlin-Gerin company. Second, we present the case history, which can be summarized briefly as follows. In 1959, the foundry of Merlin-Gerin, a leading French manufacturer of electrical apparatus, could not compete with outside suppliers. Roger Huet, an expert in aluminum casting, was hired to revitalize the business with new technologies and develop the PRECIAL (PRECIsion ALuminum) process. In 1967, he was able to market low-weight, high-strength parts to European airplane manufacturers with sales reaching $10 million. In 1970, McKinsey recommended that scarce capital resources should be reserved for the core business and that the foundry should be sold. Amazingly, this decision was not implemented for 12 years, because Huet convinced management that the foundry was profitable and had a brilliant future thanks to its unique technological skills. The foundry was sold to Alcoa in 1982 and closed down in 1985. Table 1 highlights the main events and the key corporate and entrepreneurial actions and reactions that determined the evolution and the ultimate fate of the internal venture. Third, we discuss the key factors that contributed first to the success and then to the demise of the venture, such as the culture and climate of the Merlin-Gerin and the Alcoa companies, major changes in corporate strategy and policy, discontinuities and schisms in technology and market strategies, and the leading role of the entrepreneur.Fourth, we analyze, in retrospect, whether this internal venture made a contribution to the Merlin-Gerin Company and whether the 12-year delay in implementing the divestment recommendation by McKinsey was financially and socially justified. Finally, we compare the processes observed in this company with models of corporate entrepreneurship previously developed by scholars and draw conclusions about the critical factors of success for an internal corporate venture.In our opinion, there are two unusual aspects, in addition to the international setting, that make this case interesting for both scholars and practitioners.

1. 1. This internal venture continued for 26 years, an unusually long period compared to most corporate ventures (Fast 1979; Sykes 1986; Kanter et al. 1990, 1991b, 1992). The main reasons were the personality of the entrepreneur, his close relationship with the president, the unique technology, the initial market successes, the profitability and positive cash flow of the foundry, and, finally, corporate inertia.

2. 2. The recurring shift from agreement to disagreement of business goals and strategies between the corporation (first Merlin-Gerin and then Alcoa) and the entrepreneurial venture, which, in turn, led to alternate phases of cooperation and tension between the two parties.

Table 2 summarizes the evolution of the corporate and internal venture strategies and shows the gradual shift from strategic congruence to conflict that inevitably led first to the divestment and then to the closure of the foundry. Thus, some lessons could be drawn from this case on how to survive, if not to succeed, in the difficult game of corporate entrepreneurship.

1.

2.

     

Metaphors of hospitality organizations: An exploratory study

Metaphors are used by organizational members to characterize their employing firm and to filter their experiences in them. Metaphors thus become an important source of diagnostic information for management. This exploratory study surveyed a large number of hospitality workers to discover the metaphors they held about their employing organizations. Seven different categories were found, about a third reflecting the organizations' structure. Among the tentative findings were the prevalence of negative metaphors and that longer-term, male, and managerial employees were more likely to hold them—perhaps because of managerial concerns for control and predictability.     

Project failure from corporate entrepreneurship: Managing the grief process

In this paper, we complement social cognitive theory with psychological theories on grief in our discussion of two approaches to grief management – grief regulation and grief normalization – that hold promise for enabling corporate entrepreneurs to cope with negative emotions induced by project failure. We propose that to the extent that organizational members have high self-efficacy for recovering from grief over project failure, or this coping self-efficacy can be built through the social support offered by the organizational environment, regulating rather than eliminating, grief via normalization processes will explain superior learning and motivational outcomes.     

Assessing the maturity of crowdventuring for corporate entrepreneurship

Corporate entrepreneurship is a process of strategic renewal and development of an existing business through the creation of new products, services, and activities, as well as new competitive postures and independent ventures. The performance of this process, which leverages the creativity and the initiative spirit of employees and managers, thus relies on the capacity of the organization to create favorable conditions for the emergence of such latent entrepreneurial potential. The development of participatory innovation models and collective intelligence offers new insights for conducting research on factors enabling corporate entrepreneurship. In particular, the internal company ‘crowd’ can be investigated with the purpose of studying the conditions under which the corporate entrepreneurship process can be successfully nurtured and conducted. In such view, this article moves from an extended review of corporate entrepreneurship and organizational innovation literature to define the concept of crowdventuring and to present an assessment tool aimed at evaluating the maturity of the crowdventuring process within an organization. The tool, which captures both individual and organization-related factors, is also used for an illustrative application into a multinational IT company. Some implications are drawn at the theory and practitioner levels.     

Pricing risky corporate bonds: An empirical study

This paper empirically studies a model for pricing risky corporate bonds proposed by Baaquie—based on the seminal Merton. The proposed model provides an exact solution for the price of a risky corporate bond with a finite maturity and explains the market price of corporate fixed coupon bonds as being the result of the market risk that is carried by the bond. Baaquie's model is empirically tested using 42 fixed coupon bonds issued by 23 US corporations, between 2011 and 2017. It is found that the proposed model estimates most bond prices quite accurately. Market time (similar to the concept of psychological time), which is distinct from calendar time, is quantified in the paper and is an exogenous behavioral parameter that plays a pivotal role in improving the accuracy of the pricing model for long-maturity risky bonds.     

Complexity absorption: a processual strategic approach to corporate entrepreneurship strategy

In contrast to traditional strategic approaches that are based on complexity reduction, this paper aims to develop an alternative way of understanding entrepreneurial strategy and managing complexity from a processual perspective. The new perspective is developed from a processual perspective integrating insights from an understanding of complexity to engage with philosophical accounts of Chinese processual thought particularly as it is applied to entrepreneurial strategy. The new theoretical framework is empirically investigated through case studies of 30 entrepreneurial organizations in China. The findings confirm that timing and action, context/situation, and efficacy are the three key components in complexity absorption as preferred entrepreneurial strategic approaches.