Reconceptualizing entrepreneurial exit: Divergent exit routes and their drivers

We develop a conceptual model of entrepreneurial exit which includes exit through liquidation and firm sale for both firms in financial distress and firms performing well. This represents four distinct exit routes. In developing the model, we complement the prevailing theoretical framework of exit as a utility-maximizing problem among entrepreneurs with prospect theory and its recent applications in liquidation of investment decisions. We empirically test the model using two Swedish databases which follow 1,735 new ventures and their founders over eight years. We find that entrepreneurs exit from both firms in financial distress and firms performing well. In addition, commonly examined human capital factors (entrepreneurial experience, age, education) and failure-avoidance strategies (outside job, reinvestment) differ substantially across the four exit routes, explaining some of the discrepancies in earlier studies.     

Managing membership threats through collective efficacy

Individuals cope with membership-threatening situations in organizations through their level of collective efficacy. Basically, members' perception of the resourcefulness of the organization provides them with a strong basis from which to believe that they are collectively competent in handling unforeseen situations. To support this argument, this paper empirically analyzes two changing organizations in which high collective efficacy de facto lowers members' preoccupation with seeing features of the organization key for their membership disappear. These findings confirm previous work on the role of collective efficacy during general organizational threats and provide initial evidence of the importance of collective efficacy in containing membership threats in particular.     

Corporate social responsibility in China: implementation and challenges

Corporate social responsibility (CSR) is becoming increasingly important in China. This paper investigates the implementation of instruments for dimensions of CSR that are relevant for the Chinese context and the challenges that Chinese companies face. Based on a survey among 109 Chinese companies, we find that formal instruments to implement CSR are rather common. Companies spend most effort in improving the economic aspects of CSR, such as competitiveness, product innovation and process innovation. Only a small minority of the companies set concrete targets and report the realization of these targets for social and environmental goals. This indicates that the attention to social and environmental aspects of CSR is still rather loose. The most important challenges for improving CSR are strong competitive pressure, insufficient support from the government and/or nongovernmental organizations and high costs of CSR implementation. Multiple regression analysis shows that the use of instruments is positively related to company size and foreign ownership and negatively related to lack of resources and support for CSR by investors and consumers.     

Is Corporate Governance in China Related to Performance Persistence?

This paper examines the relationship between performance persistence and corporate governance (as proxied for by board characteristics and shareholder structure). We document systematic differences in performance persistence across listed companies in China during 2001–2011, and empirically demonstrate that firms with better corporate governance show higher performance persistence. The results are robust over both the short and long terms. We also find that performance persistence is an important factor in refinancing, and it can lower companies’ costs of borrowing. Overall, our findings offer important implications for business ethics, as we demonstrate how corporate governance can lower companies’ costs of debt.     

THE ROLE OF LOGISTICS IN MARKET ORIENTATION

In today's increasingly competitive environment, survival depends on two key aspects of being market‐oriented ‐ understanding the external environment and executing decisions based on that understanding. Logistics personnel are uniquely positioned to play a key role in creating and maintaining a market‐oriented organization as they are progressively gaining more responsibilities in integrating cross‐functional processes and implementing supply chain strategies. This paper explores how logisticians participate in market orientation behaviors and how a market‐oriented logistics function impacts logistics and business performance. Based on a qualitative field research study involving in‐depth interviews with seventeen logistics personnel that draws and builds upon the logistics, market orientation, knowledge management, organizational behavior, information processing, and strategic management literatures, a theoretical model of logistics market orientation and its effect on logistics and business performance is developed and propositions are presented. Findings highlight logistics' central role in generating, disseminating, reaching a shared interpretation of, and responding to market intelligence.     

Debunking the myth of general consumer rejection of green genetic engineering: Empirical evidence from Germany

The emergence of a more sustainable economy in Europe was accompanied by a range of bio‐based products and technologies. As a prominent example, green genetic engineering opens up multiple options to increase agricultural production, but its public acceptance seems to vary by application area. Risk perception explains consumer acceptance of green genetic engineering, which is a necessary precondition for wider technology adoption. This study investigates risk perceptions for four major sources of risk: health related, environmental, socioeconomic and ethical. Data were collected in a laboratory experiment in Germany, with a total of 439 participants. A between‐subject design was employed. The four experimental treatment groups comprised two policy scenarios, namely one only permitting research and development and the other allowing full commercialization of genetically modified products, and two product end‐uses, bioenergy and food. The study shows significant end‐use differences in both the type of policy scenario and the risk dimension in question. In particular, health risks were generally perceived to be lower for bioenergy than food whenever full commercialization was pursued. Furthermore, full commercialization of genetically modified food prompted higher concerns about personal health, whereas use of crops for bioenergy production was broadly related to higher levels of socioeconomic risk. Finally, although the majority of consumers identified health risks as being most relevant, the consequences for the environment evoked the greatest degree of risk perception. In general, our findings lend support for the notion that the policy regime is the most important determinant for risk perception, followed by the type of risk dimension and level of trust in industry.     

Do Non‐profit Organizations Manage Earnings toward Zero Profit and Does Governmental Financing Play a Role?

Prior research has documented earnings management in for‐profit settings. Non‐profit organizations are thought to pay less attention to the bottom line and earnings management research has therefore focused on the manipulation of expenses in order to improve efficiency ratios or taxable income, not reported earnings per se. Considering an institutional setting characterized by the absence of such ratios and the presence of important subsidies, management of the actual bottom line is analyzed in light of these subsidies. The results suggest that organizations drive their results toward zero profit, which is intensified by increased governmental funding when unmanaged results are positive. The relation between downward earnings management and the presence of subsidies is particularly evident for organizations whose accumulated reserves are high. Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.     

Venture Capital Investment Duration

This paper examines cross‐country evidence on the duration of venture capital (VC) investment. We formulate a theory of VC investment duration based on the idea that venture capitalists exit when the expected marginal cost of maintaining the investment is greater than the expected marginal benefit, and thereby relate VC investment duration to entrepreneurial firm characteristics, investor characteristics, deal characteristics, and institutional and market conditions. VC investment duration data in Canada and the United States lend strong support to the theoretical predictions developed herein.     

Land Market Imperfections and Agricultural Policy Impacts in the New EU Member States: A Partial Equilibrium Analysis

This article analyses how transaction costs and imperfect competition in the land market affect the welfare effects of agricultural subsidies in the new Eastern Member States of the European Union. Benefits of land subsidies end up with landowners in new Eastern Member States also with imperfections in the new Eastern Member States land markets. With unequal access to subsidies, small tenant farmers may even lose out from the subsidies. Decoupling of payments shifts policy rents to farmers, but constrains productivity-enhancing restructuring. Using reserve entitlements to mitigate this effect reduces the intended benefits on distortions and target efficiency.     

Sources of customer satisfaction with shopping malls: A comparative study of different customer segments

Abstract

In spite of the growing importance of planned, centrally managed and enclosed shopping centres in the retailing sector, the understanding concerning sources and outcomes of customer satisfaction with this kind of shopping malls is limited. This paper develops and validates a conceptualisation of shopping mall satisfaction based on field studies in Sweden. The results show that eight underlying factors of varying character are important to customer satisfaction. These are selection, atmosphere, convenience, sales people, refreshments, location, promotional activities and merchandising policy. Furthermore, this study investigates whether sources of satisfaction differ in importance with respect to gender and age, generally two important variables for retail segmentation.