Angel Financing and the Performance of High‐Tech Start‐Ups

In this paper, we investigate what drives the performance of high‐tech start‐ups receiving angel financing, while taking a closer look at the capabilities (i.e., experience) and investment behavior of business angels (BAs). We exploit a new data set (extracted from Crunchbase), which consists of 1,933 high‐tech start‐ups that received at least one financing round from a BA. The results indicate that the experience of BAs in early stage investments is positively associated with additional receipt of follow‐on rounds of financing and sequential capital injections from venture capitalists (VCs). Later‐stage experience is positively associated with the start‐up's success (i.e., probability to be listed or acquired), but reduces the need for new VCs to invest in the start‐up. Furthermore, we find consistent evidence that start‐ups that combine BA and VC financing experience higher levels of funding amounts, additional VC financing, and an improved likelihood of success. Finally, we find that the co‐localization of BA investors and start‐ups in the same area facilitates the attraction of VC financing.     

Accelerating Sales in Start‐Ups: A Domain Planning,Network Reliance,and Resource Complementary Perspective

Business planning is central to entrepreneurship and of immense interest in explaining venture development. This study investigates how planning in different functional domains, and network reliance for domain planning, relate to speed of initial sales success. Drawing from a sample of founders in the high‐technology sector, we find differential planning effects—market planning lengthens the time to sales whereas technology planning reduces time to sales. Further, we find that founders' reliance on network sources of help for market planning, relative to solo planning, simultaneously complements both market and technology planning and reduces time to sales. Our findings illustrate domain planning, network reliance, and resource complementarities as important to venture development.     

Impact of the Community Reinvestment Act on New Business Start‐Ups and Economic Growth in Local Markets*

Economic growth in the United States has historically bypassed many minorities and low‐income communities. Some researchers and community advocates assert that the deterioration of these communities is in part caused by financial institutions' redlining and neglect. To rectify the situation, the government introduced the Community Reinvestment Act (CRA) for the purpose of encouraging banks and saving institutions to become more socially responsible and help meet the credit needs of communities in which they are located. The CRA was the government's response to bank lending discrimination. However, when passing the Act, Congress was equally concerned with reversing or at least halting disinvestment from inner‐city communities and in turn revitalizing local economies. Many believe that the availability of credit to establish, refinance, and improve small businesses is critical to the well‐being of local communities. Therefore, through the provision of small business loans, the CRA could be envisioned as a catalyst toward achieving that goal. Thus the aim of this paper is to investigate potential relationship between banks' CRA lending activities, and new business start‐ups and economic growth in local markets. The paper proposes that new start‐ups will have spillover effects that will consequently contribute to community development. After controlling for several potential variables that could have an impact on business start‐ups and community developments, the study found a strong positive effect. Beside its social and economic implications, the study also considered policy implications associated with the CRA regulation as a welfare improving initiative in low‐income communities. It offers ground for certain government intervention in the loan market.     

Regional Financial Developments and Research and Development Investment–Cash Flow Sensitivity: Evidence on Chinese Public High‐Tech Companies

In a sample of 485 Chinese public high‐tech companies, we show that the R&D investment is significantly dependent on internal cash flow. Based on the sizable discrepancies of stock market and financial intermediary developments in the East, Middle and West regions of China, empirical estimation provides strong evidence that the financial developments in both credit and equity markets have large effects on reducing financing constraints. The effects are most significant in the financially advanced East region of China.     

Growth Intentions and Board Composition in High‐Growth Firms

This paper examines the influence of board composition on growth intentions of high‐growth firms. We hypothesize that gender diversity and a high proportion of independent directors on the board will reduce a firm's growth intentions, whereas founder duality will increase a firm's growth intentions. Using survey data from 773 high‐growth Norwegian firms, we find that gender diversity has a negative effect on growth intentions. A high proportion of independent directors do not facilitate further growth in high‐growth firms. Furthermore, our results indicate that the founder's presence in the decision‐making group increases a firm's growth intentions.     

Picture–Text Incongruency in Print Advertisements among Low‐ and High‐Literacy Consumers

While low‐literacy consumers rely heavily on pictorial information when making market‐based decisions, they also do attempt to read relevant information. When the advertisement picture and text are aligned, so too should be the conclusions low‐literacy consumers draw. We ask what happens when the pictures and accompanying text are incongruent. Results of an experiment indicate that low‐literacy consumers misinterpreted an advertisement with text–picture incongruity more regularly than did high‐literacy consumers. Furthermore, low‐literacy consumers demonstrated errors in comprehension that reflect picture‐based processing. However, despite comprehension differences between low‐ and high‐literacy consumers, attitudes toward the advertisement did not differ.     

The Roles of Business Ethics in Conflict Management in Small Retailer–Supplier Business Relationships

Any ongoing relationship involves conflict. While facing conflict can be a serious matter for small firms with limited resources and capabilities, little is known about conflict management or the role of an ethical foundation, or business ethics, for small businesses. This study examines some influential factors regarding conflict management and the role of business ethics in satisfactory business relationship building in the context of small retailer–supplier relationships. The proposed model identifies (1) the relative importance of business ethics and role performance as antecedents and (2) two dimensions of satisfaction (social and economic) as consequences. The data, collected from small apparel retailers in the United States, clearly demonstrate the powerful role of business ethics. The positive perceptions of small retailers regarding supplier business ethics significantly reduces retailer–supplier conflict and increases retailer–supplier social satisfaction. Supplier role performance does not contribute to a reduction in retailer–supplier conflict as perceived by small retailers, but it does enhance the economic satisfaction of retailers, which further increases their social satisfaction. The functional benefits of conflict provide interesting insight. Providing several meaningful implications, this study demonstrates the unique aspects of conflict management within small retailer–supplier relationships.     

Distance to Customers,Absorptive Capacity,and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity

This paper investigates the impact of both geographical and relational proximity on the innovative performance of the firm. We address the role of one firm characteristic—its absorptive capacity—as a specific contingency affecting the relationship between different proximities and innovation. Using data from 158 high‐tech firms located in the Tiburtina Valley in Italy, we studied the relationship between these firms and their key customers. Our findings support the need to downplay the role of geographical proximity in promoting innovation. Our results also show that relational proximity to key customers has a complementary relationship with absorptive capacity, which positively moderates its influence on innovative performance.     

The Impact of Goal Alignment on Board Existence and Top Management Team Composition: Evidence from Family‐Influenced Businesses*

Using a sample of 714 private family influenced businesses in Germany, we investigate the relationship of goal alignment between owners and managers and the existence of a board of directors. Agency theory and stewardship theory serve as theoretical bases for our study. We find that firms with relatively high levels of goal alignment are less likely to have a board of directors. Our results provide support for the substitution hypothesis of formal by social control mechanisms. Furthermore, the findings show that firms without a board and with relatively low levels of goal alignment have less family members in the top management team. This circumstance might in turn be a trigger for owners to install a board.     

Founder Expertise,Strategic Choices,Formation, and Survival of High‐Tech SMEs in China: A Resource‐Substitution Approach

This paper uses a resource‐based perspective to better understand how the three most established expertise possessed by founding entrepreneurs influence the development path of firms operating in the high‐tech industrial sector. The longitudinal evidence from two rounds of face‐to‐face interviews with the owners of Chinese high‐tech SMEs in 2004 and 2009 identifies three business strategic choices innovation, product, and production that are essential to optimize the expertise and sources of finance available for creating and growing a high‐tech business. The findings from the interview evidence offer novel insights into the entrepreneurial development path of firms associated with types of entrepreneurs and availability of financial sources possessed by founding entrepreneurs.     

顾客参与服务创新、顾客人力资本与知识转移的关系研究

在后现代社会,服务经济在促进经济发展和就业方面越来越重要.随着服务行业竞争的日益加剧,服务企业需要不断进行新服务开发,从而获得竞争优势.顾客参与新服务开发过程,有利于促进知识的转移.顾客作为知识转移的发送方,其转移知识能力和意愿具有积极的影响,顾客的转移能力和意愿可以视为顾客人力资本.文章在文献回顾和综述的基础上,研究了顾客参与服务创新行为和知识转移的关系,并构建一个基于顾客人力资本中介机制的理论模型,试图进一步揭示顾客参与和知识转移之间关系的内在机制.最后探讨了本文的不足和未来的研究方向,为下一步实证研究提供了理论基础.     

The Relationship Between Strategic Supply Chain Integration and Performance: A Meta‐Analytic Evaluation and Implications for Supply Chain Management Research

Although research evaluating the impact of supply chain integration on performance has advanced substantially in the last decade, inconsistency and considerable variability of empirical findings leave unanswered questions for both research and practice. Using a meta‐analysis, we examine empirical studies to clarify the actual relationship, suggest new directions, and ultimately contribute toward the development of supply chain management theory. We focus on “strategic” supply chain integration rather than on functional or operational/tactical studies, which would weaken the practical value of the analysis and findings. To ascertain focus and homogeneity of the sample, we adopt a rigorous search protocol and sample construction. We find that integration–performance relationships are complex and nuanced such that integration should not be universally viewed as improving performance. We identify relationships that are more generalizable and also those that need additional scrutiny. Finally, we discuss the implications of our findings and provide directions for future research.     

The Long‐run Relationship Between Trade and Population Health: Evidence from Five Decades

In recent years, the increase in international trade has sparked a debate about the impact of international trade on population health. To date, however, there has been very little econometric research on the relationship between these two variables. This paper examines the long‐run relationship between trade openness and population health for a sample of 74 countries over five decades, from 1960 to 2010. Using panel time‐series techniques, it is shown that international trade in general has a robust positive long‐run effect on health, as measured by life expectancy and infant mortality. This effect tends to be greater in countries with lower development levels, higher taxes on income, profits, and capital gains, and less restrictive business and labour market regulations.     

Board Members in the Service Industry: An Empirical Examination of the Relationship Between Corporate Social Responsibility Orientation and Directorial Type

One area of business performance of particular interest to both scholars and practitioners is corporate social responsibility. The notion that organizations should be attentive to the needs of constituents other than shareholders has been investigated and vigorously debated for over two decades. This has provoked an especially rich and diverse literature investigating the relationship between business and society. As a result, researchers have urged the study of the profiles and backgrounds of corporate upper echelons in order to better understand this relationship.There is ample evidence that corporations have in recent years increased the proportion of outside directors on their boards. This has been partly in reaction to increased interest in the corporate social responsiveness of business organizations and suggestions that the board of directors could play a unique role in this area. The expectation on the part of practitioners, researchers, and governmental regulators is that outside directors will advocate greater corporate responsiveness to society's needs by playing a more active role in overseeing managerial decisions.The purpose of this study is to partially fill a void in the literature by determining whether or not these expectations are justified, particularly in the service industry. Data were collected as part of a larger cross-national study of corporate social responsibility. A multivariate analysis of variance (MANOVA) of the results of a survey of 307 board members (198 outside and 109 inside directors) indicates that outside directors exhibit greater concern about the discretionary component of corporate responsibility and a weaker orientation toward economic performance. No significant differences between the two groups were observed with respect to the legal and ethical dimensions of corporate social responsibility. Some explanations as well as limited generalizations and implications are developed.     

顾客参与服务创新与顾客知识转移的关系研究——基于社会资本视角的理论综述和模型构建

随着服务经济在国民经济中地位日益重要,越来越多的学者开始研究服务创新问题。顾客参与服务创新过程既是满足顾客需求的需要,也是服务创新过程本身的需要,其中一个重要的原因就在于顾客参与有利于促进顾客知识转移。本文基于社会资本的视角,对顾客参与服务创新和顾客知识转移关系的有关文献进行了综述研究,并构造了以社会资本三个维度为中介机制的理论模型。     

Corporate Governance and Strategic Change in SMEs: The Effects of Ownership,Board Composition and Top Management Teams

This paper investigates how governance mechanisms affect the ability of small- and medium-sized enterprises (SMEs) to introduce strategic change. Previous research typically assumes that governance mechanisms operate independently of each other. Building on agency theory and insights from the literature on small firm governance, we hypothesize that governance variables related to ownership, the board of directors and the top management team all affect strategic change and that it is important to examine the interaction effects of these governance mechanisms. Using a longitudinal sample of over 800 SMEs, our general logic and hypotheses are supported by the analyses. We find that closely held firms exhibit less strategic change than do SMEs relying on more widespread ownership structures. However, to some extent, closely held firms can overcome these weaknesses and achieve strategic change by utilizing outside directors on the board and/or extending the size of the top management teams. Implications for theory and management practice in SMEs are discussed. All three authors have contributed equally to the paper. Their names are listed alphabetically.     

A Heideggerian Perspective on the Relationship Between Mintzberg’s Distinction Between Engaged and Disconnected Management: The Role of Uncertainty in Management

In the context of uncertainty and anxiety regarding the role of leadership and management, this article explores the relationship between Mintzberg’s concept of the distinction between the engaged and disconnected manager, Heidegger’s notion authentic and inauthentic being and Benner and Wrubel’s distinction between two forms of professional practice attunement: an attunement to technique and an attunement to lived experience. It argues that while Mintzberg outlines the distinction between engaged and disengaged management, he does not develop an understanding of the conditions which lead a manager to be either engaged or disconnected. The role of anxiety in Heidegger’s distinction between authentic and inauthentic being and the role of stress and worry in Benner and Wrubel’s distinction between an attunement to technique and an attune- ment to the lived experience of professional practice provides the basis for understanding the relationship between engaged and disconnected management. After developing the theoretical perspectives of Mintzberg, Heidegger, Benner and Wrubel, two examples are presented: one of the way in which an engaged manager experiences anxiety as an opportunity for greater attune- ment to lived experience and one who experiences anxiety as a condition for disconnection and detachment from the lived experience of his leadership practice.     

The Role of Top Management Participation and IT Capability in Developing SMEs’ Competitive Process Capabilities

This research explores how top management participation and three types of IT capability enable SMEs' competitive process alignment and flexibility capabilities. Our research hypotheses are tested using data from 310 Australian SMEs. Results show that top management participation and external IT linkage capability positively affect both process alignment and process flexibility. While IT infrastructure capability and IT business spanning capability positively affect process alignment, they are not significantly related to process flexibility. In addition, both process alignment and process flexibility capabilities have significant positive effects on SME performance. Contributions and implications of this study are discussed.