The more business owners, the merrier? The role of tertiary education

Policy in developed countries is often based on the assumption that higher business ownership rates induce economic value. Recent microeconomic empirical evidence may lead to a more nuanced view: Especially the top-performing business owners are responsible for the value creation of business owners. Other labor market participants would contribute more to economic value creation as an employee than as a business owner. The implied existence of an “optimal” business ownership rate would thus replace the dictum of “the more business owners, the merrier.” We attempt to establish whether there is such an optimal level, i.e., a quadratic relation between the business ownership rate and economic output rather than a linear or higher-order relationship, while investigating the role of tertiary education. Two findings stand out. First, by estimating extended versions of traditional Cobb–Douglas production functions on a sample of 19 OECD countries over the period 1981–2006, we indeed find robust evidence of an optimal business ownership rate. Second, the relation between business ownership and macroeconomic productivity is steeper for countries with higher participation rates in tertiary education. Thus, the optimal business ownership rate tends to decrease with tertiary education levels. This is consistent with microeconomic theory and evidence showing that business owners with higher levels of human capital run larger firms.     

Multiple interpretations of “national culture” and the implications for International business: The case of Taiwan

This paper considers the implications for international business of cases whereby a country may have two, or more, conflicting interpretations of its “national culture”. A case study of the different ways in which Taiwanese self-initiated expatriates of the benshengren and waishengren social categories use their status as “Taiwanese” to do business in London suggests that the varying interpretations which people of the same national origin and ethnic group have of their “national culture”, as a symbol of identity, affects the social resources they can use. The paper concludes by considering new directions for studying national culture in international business, and for re-evaluating earlier research.     

Beijing Imternational&High-Tech Expo raises flag of business opportunities for the Olympic Games The standard of this year''''s fair was even higher

The sixth Beijing ImternationalHigh-Tech Expo, which had beenpostponed because of SARS, attractedeven more attention than the pastyears. The standard of this year's fairwas even higher. This year's exhibition area ex-panded 10,000 square meters be-yond the anticipated area to over60,000 square meters. More than2000 Chinese and foreign enterprisesand organizations participated; theycame from nearly 20 countries andregions, including the U.S.A., Ger-many,and Japan. Among companieswere leading transnational enter-     

Does size matter? The state of the art in small business ethics

In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future.     

Are success and survival factors the same for social and business ventures?

Despite the growing interest in social entrepreneurship, there exist gaps in research that compares traditional business-oriented entrepreneurship with the social kind. This study attempts to fill the gap by answering the following questions: Are there significant differences between the survival chances of business and social ventures? and Do the traits of the entrepreneur and the firm play the same role as success factors for both types of venture? Hypotheses are tested using data collected from 2,179 firms. The results show that significant differences exist between social and business-oriented entrepreneurship in the form and intensity of the independent variables related to survival.     

Born to be alive? The survival of innovative and non-innovative French micro-start-ups

Based on French data describing the characteristics of entrepreneurs and their projects, this article studies the differences between the determinants of survival for innovative and non-innovative micro-enterprises. We show that the survival of innovative and non-innovative enterprises is linked to personal criteria such as age, gender, belonging to a minority, professional experience and financing sources. Our results also highlight the positive effect of not being alone in the start-up design phase, whereas being involved in a business network after the start-up period has no significant influence. The survival time of innovative enterprises, which is significantly lower than that of the non-innovative ones, seems adversely influenced by the entrepreneur’s previous management experience. Finally, when considering both innovative and non-innovative start-ups, there appears to be a type of “pecking order” as bank financing has a much more positive effect on survival than a personal one, although when focusing solely on innovative ones this difference does not exist.     

The institutional determinants of private equity involvement in business groups—The case of Africa

This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centered institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality – where this is particularly strong in case of foreign VC as opposed to domestic VC or BA. Our result adds to the literature on multifocal corporate governance mechanisms and the institutional determinants of private equity investment.     

The value of business managers' ‘Information Technology’ competence

This study analyses the role of general managers and their competence in information technologies (ITs) in the integration of these technologies in knowledge-intensive businesses. From a resource-based view, it assesses the effect of managers' IT knowledge and vision on information management in their organizations. It focuses on two knowledge industries: telecommunication and biotechnology, with a final sample of 122 firms. Structural equations are used to assess the data. The findings show that the role of managers goes further than supporting and championing ITs. They are direct key actors in the IT–business integration. For this reason, managers should understand IT potential and information system management in order to combine this knowledge with their unique strategic vision of the business, foreseeing opportunities and needs.     

Entrepreneurship and survival over the business cycle: how do new technology-based firms differ?

We investigate the survival performance of new technology-based firms (NTBFs) over the business cycle and compare them against other entrepreneurial firms. Our data comprise the entire population of entrepreneurial firms entering the Swedish economy from 1991 to 2002, which we follow until 2007. Discrete-time duration models are employed to investigate whether the business cycle impacts differently on the survival likelihood of NTBFs vis-à-vis other entrepreneurial firms. Our main findings are three. First, NTBFs generally experience a lower hazard rate compared to other entrepreneurial firms, which is interpreted as a sign of their high ‘quality.’ Second, all entrepreneurial firms are sensitive to and follow a pro-cyclical pattern of survival likelihood over the business cycle. Three, when comparing NTBFs with the broader group of other entrepreneurial firms, we find that NTBFs are more sensitive to business cycle fluctuations. The above results come with a qualification, though. The sensitivity during the business cycle mainly pertains to self-employed NTBFs. Also, NTBFs’ higher survivability is only linked to not being characterized as self-employed.     

The sharing economy: Your business model's friend or foe?

The sharing economy, a rising pattern in consumption behavior that is based on accessing and reusing products to utilize idle capacity, presents both tremendous possibilities and significant threats for emerging as well as incumbent businesses. As of today, it is unclear whether this economy is merely another ephemeral trend in consumption or whether we are experiencing a real shift in how goods are accessed, distributed, and used. Furthermore, little is known about how existing business models are affected by the sharing economy. These two issues represent the central motivation for the development of this article. Consequently, an examination of why the sharing economy has the potential to produce a long-term transformation in consumption behavior is followed by a consideration of how this change might affect companies’ business models. Based on a renowned business model framework and a variety of current illustrative examples, we propose central questions managers must ask themselves in order to be prepared to respond to changes brought about by this new economic trend.     

Does your religion make a difference in your business ethics? The case of consolidated foods

While the literature in business ethics abounds with philosophical analyses, perspectives from religious thinkers are curiously underrepresented. What religious analysis has occured has often been moralistic in tone, more fit to the pulpit than the classroom or the boardroom. In the three essays that follow, presented originally at a panel at the Annual Meeting of the American Academy of Religion in 1989, ethicists from the Protestant, Roman Catholic, and Jewish traditions analyze a case study familiar to many who teach and research in business ethics — the Consolidated Foods Case. Each author shows how a particular religious tradition might react to the case. The authors show how insights from their traditions would affect corporation's moral deliberations about policy. Specific policy recommendations are offered to CEO John Bryan. Louke Siker recieved her Ph.D. in 1987. She has taught Christian ethics and business ethics at Wake Forest University and Loyola Marymount University. Her research interests include methodology in business ethics. She is the author of An Unlikely Dialogue: Barth and Business Ethicists on Human Work, Annual of the Society of Christian Ethics, 1989. James Donahue is an Associate Professor of Theological Ethics at Georgetown University, Washington, D.C. His research and publications focus on methodology in ethics, ethics and institutions, and ethics and the professions. He has published in Horizons, Religious Studies Review, Social Thought, Bioethics Books, and The Annual of the College Theology Society. Ronald M. Green is the John Phillips Professor of Religion in the Department of Religion, Dartmouth College. He also serves as Adjunct Professor of Business Ethics at Dartmouth's Amos Tuck School of Business Administration, where he is responsible for first and second year courses on business ethics. He has written many articles in theoretical and applied ethics. He is the author of three books, Population Growth and Justice (Scholars Press, 1975), Religious Reason (Oxford University Press, 1978) and Religion and Moral Reason (Oxford University Press, 1988). Professor Green is currently working, with Dr. Robbin Derry, on a textbook in business ethics entitled The Ethical Manager to be published by Macmillian.This is a summary of the Consolidated Foods Corporation Case # 382–158, Harvard Business School, 1982. It is used with the permission of its author, Kenneth E. Goodpaster.Author of A Protestant Response to the Consolidated Food Case.Author of A Catholic Response ...Author of A Jewish Response ...     

The Achilles’ heel of the platform business model: Disintermediation

Multisided marketplaces have become fixtures in many contemporary industries. From Amazon to Google, platforms dominate entire markets and have become some of the world’s most valuable companies. Despite their success, these companies have a subtle but potentially fatal weakness: disintermediation. This occurs when buyers and sellers find each other on the platform and then bypass that very platform—and its commission—to complete their transaction directly, off of the platform. This article compiles and illustrates the causes of and remediations to platform disintermediation.     

The role of producer services in regional development: what opportunities for medium-sized cities in Belgium?

The presence or absence of producer services in a region is supposed to influence regional development. Nevertheless, the way in which these activities contribute to regional development is still very imperfectly understood. This article is a combined theoretical–empirical analysis of four of these mechanisms: the employment effect, the exportation effect, the productivity–competitivity effect and the attraction effect.     

Beijing Imternational ＆ High-Tech Expo raises flag of business opportunities for the Olympic Games——The standard of this year＇s fair was even higher

The sixth Beijing Imternational High-Tech Expo, which had been postponed because of SARS, attracted even more attention than the past years. The standard of this year‘s fair was even higher.     

Thinking of opening your own business? Be prepared!

The good news is that new businesses are booming. The bad news is that many are going bust. Careful preparation prior to opening your own business is the best way to forestall failure.     

International couture: The opportunities and challenges of expansion, 1880–1920

This paper explores the topic of the expansion of the haute couture businesses in the late nineteenth and early twentieth centuries across international frontiers. Concentrating on the period before and during World War I and on the couture houses of Worth, Paquin, Drecoll, Redfern, Boué Soeurs and Lucile, it argues that international expansion was accompanied by the rapid development of innovative marketing and promotional practices, but hampered by obstacles that were ultimately impossible to overcome.     

The strategic implications of clarifying how marketers interpret “brands”

This paper is concerned with clarifying how brand strategies can be developed. By reviewing the evolution and rationale for manufacturer and distributor brands, it enables marketers to consider which branding route is most appropriate. Criteria to decide between being a manufacturer's brand or supplying distributor brands are addressed. To follow either of these routes the organisation must clarify its understanding of the brand asset and four broad interpretations are discussed. There would appear to be two key componenets characterising brands and through the use of a two dimensional matrix, a method to identify the type of brand and guide brand strategy development is presented.     

How do institutional transitions impact the efficacy of related and unrelated diversification strategies used by business groups?

Drawing from institutional theory and organizational theory, this paper reports findings from a longitudinal study of Indian business groups as they were responding to pro-market institutional reforms. It explores their diversification choices at the group level, and the group performance consequences of these choices during a period of institutional change (1988–2012). Results show that although overall group diversification had a positive impact on performance, as institutions developed and market reforms took root, unrelated diversification resulted in poorer performance. However, related diversification strategies resulted in positive group performance outcomes after pro-market reforms had taken root. This suggests that the performance consequences of alternative diversification strategies adopted by business groups change as institutional development occurs, an important facet of business group evolution that has received limited attention in the extant literature.