Correction to: Determinants of agricultural entrepreneurship: a GEM data based study

International Entrepreneurship and Management Journal - The original article has been corrected. The spelling of author name Amit Kumar Dviwedi was incorrect and has now been corrected to Amit...     

An exploratory study on the impact of pro-market reforms on the Indian corporate sector

Pro-market reforms were expected to increase competition, improve efficiency and reduce agency costs by improving the institutional environment in emerging markets. In an attempt to establish the macro–micro linkages of these goals, this paper aims to analyse the impact of reforms on the performance of firms belonging to different ownership categories. We find that while state owned enterprises have shown signs of convergence, the performance of other domestic firms has stagnated. Meanwhile multinational subsidiaries have shown consistently better performance, raising questions on the motive and direction of reforms. We end by discussing the policy implications and avenues for future research.     

A Comparative Analysis of Export Price Pass-through in Three Open Asian Economies: Korea,Singapore and Thailand

Abstract

The degree of exchange rate pass-through is of paramount importance to small and open economies as it has a direct impact on domestic inflation as well as the effectiveness of exchange rate as an adjustment tool. High exchange rate pass-through (ERPT) is often cited as a reason for a “fear of floating”. This article analyzes the degree of ERPT into the export prices of three Asian economies—Korea, Thailand and Singapore for the period 1980: Q1–2006: Q4 using both US dollar bilateral rates as well as nominal effective exchange rates. The study also examines whether there are asymmetries in ERPT between exchange rate appreciation and depreciation.     

Management of Perceived Risk in the Context of Destination Choice

ABSTRACT

The primary objective of this study was to examine how perceived risk could be managed in the destination choice context. Relationships among risk perceptions, uncertainty (information quality), and price premium were explored by using ordinal logistic regression. Eight types of perceived risk were investigated: health/life risk, financial risk, personal satisfaction risk, social risk, time risk, technical risk, political risk, and terrorism risk. Findings showed that perceived risks were decreased by information quality but various patterns were identified for different types of perceived risk. Results additionally suggested that travelers were willing to pay extra for products and services if more safety and security are provided. Managerial implications for how the findings can be incorporated into risk management strategies are also presented in this paper.     

The Impact of Smokers' Group‐Membership and Activist Gender on Tolerance for Smoking,Receptiveness and Perceived Susceptibility to Anti‐Smoking Messages,and Likelihood of Anti‐Smoking Activism

Using two experiments we demonstrate that people have lower tolerance for smoking and higher anti‐smoking activism likelihood when in‐group versus out‐group members smoke. The likelihood of anti‐smoking activism toward in‐group smokers was greater for men than women. Moreover, as social distance declined, men showed greater anti‐smoking message receptiveness, message susceptibility and activism likelihood, whereas, women displayed no significant differences in tolerance for smoking, message receptiveness, message susceptibility, and activism likelihood. Open‐ended responses indicated generally negative cognitive reactions to smokers, yet a broad unwillingness to confront them. While feelings of personal relevance and caring facilitated anti‐smoking activism intentions, beliefs in the freedom of personal choice and polite interpersonal interactions hindered these intentions.     

Performance appraisal politics from appraisee perspective: a study of antecedents in the Indian context

Appraisee's perception of appraisal politics (APAP) is conceptualized to be formed by three perceptual dimensions. First is appraiser's manipulation of ratings to achieve their self-serving ends such as own reputation, maintaining good relationships, building in-groups, and handling dependency threats from appraisees. Second dimension constitutes fellow appraisees' upward influence behaviors to get higher ratings and rewards. Third dimension relates to the outcome of appraisal, i.e. pay and promotion decisions that can be discriminatory when performance is ignored. Such actions are detrimental for good performers and performance culture. Drawing from the organizational justice theories, it is proposed that APAP can be mitigated by those appraisal-related structural (e.g. criteria), process (e.g. voice) and contextual antecedents (e.g. relation with appraiser) that enhance appraisee's perceived control, understanding, and prediction of appraisal decision and process. These hypotheses were tested in the Indian family-owned organizations. The data were collected using survey questionnaire method from six organizations. Multivariate and structural equation modeling (SEM) analyses revealed that overall APAP had significant negative correlation with downward communication, and appraiser–appraisee relations. Importantly, these are appraiser-centric or appraiser-driven variables, thus implying appraiser's criticality in influencing perceptions. Post hoc SEM analysis revealed that communication processes (such as feedback) mediated effect of structural variables (such as criteria relevance), implying criticality of procedures over structural variables. The significance of communication processes implemented by appraiser implies that understanding cultural context is important when studying perceptual reactions such as APAP. Interestingly, post hoc analysis revealed that downward communication mediated the effect of voice on APAP, a result that may be idiosyncratic to the Indian cultural context. Specifically, higher appraiser–appraisee power distance in the Indian context may influence the perceived relevance and utility of processes such as voice (e.g. appeal), which may put appraisee in a slightly adversarial situation with appraiser. Further, higher paternalistic orientation may make processes like downward communication more desired by appraisee because these processes project superior as a guide and a coach, who is keen to handhold and support their subordinates. The implications of these results for practitioners are discussed.     

Transforming Business Models in Fast-Emerging Markets–Lessons from India

There is a need for understanding the entrepreneurship and business models in the emerging economies, especially the fast-expanding ones, from a different perspective as compared to the developed economies. The consistent gross domestic product (GDP) growth rate, significant socioeconomic potential, untapped needs of the population, and economic growth potential in the fast-expanding emerging economies like the BRIC nations (Brazil, Russia, India, and China) have changed the paradigm for investment, thereby creating a new economic development reality and focus for the global companies. However, achieving success in these emerging markets has its own unique mix of challenges. This requires a transformative and innovative mind-set toward conceptualization of a working business model that can fit into the reality of the socioeconomic and cultural challenges of these emerging markets. Further, the business model changes and alignment in these emerging markets require closer analysis and understanding of the global trends as well as ability to leverage the emerging technologies and linkages. The objective of this article is to explore the magnitude of opportunities and emerging business models transforming the socioeconomic landscape in fast-expanding emerging markets. In doing so, the article attempts to provide an overview of the emerging business model typologies and patterns that will enable the global companies to make better-informed decisions and build their presence in the fast-expanding emerging markets. © 2015 Wiley Periodicals, Inc.     

Determinants of agricultural entrepreneurship: a GEM data based study

The aim of this study is to explain the determinants of entrepreneurship in agriculture industry. What are the drivers of early stage entrepreneurial activity of agri-business entrepreneur and how it is influenced by various cognitive and social capital factors? To answers these questions various driving factors of entrepreneurial activity have been explored from the literature. To achieve the objective, the study uses APS (Adult Population Survey) 2013 data of 69 countries provided by GEM (Global Entrepreneurship Monitor). Total number of respondents 1470, those who are alone or with others, currently trying to start a new business, including any self-employment or selling any goods or services to others in Agriculture Industry, were selected from the data set. To measure the influence of cognitive and social capital factors on early stage entrepreneurial activity logistic regression was employed. The findings show that those who see entrepreneurial opportunities, are confident in their own skills and ability, having personal relationship or social networks with existing entrepreneurs, and have invested in others business as business angels are more likely to become an entrepreneur. Additionally, fear of failure or risk perception does not prevent people to become entrepreneur. Policy implications have been discussed. This is one the first study of its kind and contributes to the existing literature by explaining agricultural entrepreneurship through an integrated approach of entrepreneurial cognition and social networking.

     

Firm boundaries matter: Evidence from conglomerates and R&D activity

This paper examines the impact of the conglomerate form on the scale and novelty of corporate Research and Development (R&D) activity. I exploit a quasi-experiment involving failed mergers to generate exogenous variation in acquisition outcomes of target firms. A difference-in-differences estimation reveals that, relative to failed targets, firms acquired in diversifying mergers produce both a smaller number of innovations and also less-novel innovations, where innovations are measured using patent-based metrics. The treatment effect is amplified if the acquiring conglomerate operates a more active internal capital market and is largely driven by inventors becoming less productive after the merger rather than inventor exits. Concurrently, acquirers move R&D activity outside the boundary of the firm via the use of strategic alliances and joint ventures. There is complementary evidence that conglomerates with more novel R&D tend to operate with decentralized R&D budgets. These findings suggest that conglomerate organizational form affects the allocation and productivity of resources.     

IPOs with and without allocation discretion: Empirical evidence

Bookbuilding, the dominant offering mechanism for IPOs, is controversial because of the power it gives underwriters over IPO allocations. Critics argue that allocations could be abused to generate kickbacks for underwriters while proponents hold that allocation power could improve pre-market price discovery. We examine underpricing, bidding, and allocations from two regimes in the Indian IPO market with varying underwriter allocation power. When underwriters control allocations, bookbuilding is associated with lesser underpricing, but the effect quickly dissipates when regulations withdraw allocation powers. Using proprietary datasets of IPO books in both regimes, we find that allocation powers are used quite extensively. Identical bids can receive significantly different allocations, which depend not only on the bid but also on the bidder identity. When allocation powers are withdrawn, we find evidence of bidder exit, new bidder entry, and altered bidding strategies with exit by both favored and unfavored bidders. Our evidence supports bookbuilding theories in which giving underwriters allocation powers assists in pre-market price discovery.