The impact of home country institutions on new venture export: examining new ventures in transition economies

Purpose Many factors influence entrepreneurs, some of which influence the level of innovation (i.e. innovative or imitative) of new products or services pursued. The purpose of this paper is to explore the impact of the psychological motivations of the entrepreneurs and their institutional setting on the innovativeness of the new venture they pursue. Through this exploration, we can gain a better understanding of how innovative new ventures still occur in varying institutional environments. Design/methodology/approach In order to deliver the authors’ propositions as they pertain to innovation, the authors review the literature on entrepreneurs’ default regulatory focus (i.e. promotion or prevention seeking) and the strength of the institutions in which they are operating. Findings The authors theorize that promotion focus enhances innovativeness of ventures while prevention focus enhances imitativeness of ventures. The authors also provide a conceptual framework for the interplay among institutions and regulatory focus and provide a typology for how these varying combinations impact innovativeness or imitativeness of venture type. Originality/value In this study, the authors discuss and unpack the entrepreneurial mindset in order to bridge gaps between institutions and cognitive motivations of entrepreneurs as they pertain to innovativeness of venture type. By synthesizing several areas of research, the authors shed light on entrepreneurs’ innovativeness by proposing how these factors work together in determining whether an entrepreneur’s venture is more or less innovative based on regulatory disposition and in different institutional settings.

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Is business planning useful for the new venture emergence?

Chinese Management Studies ◽

10.1108/cms-10-2017-0315 ◽

2018 ◽

Vol 12 (4) ◽

pp. 847-870 ◽

Cited By ~ 1

Author(s):

Ya-long Wei ◽

Dan Long ◽

Yao-kuang Li ◽

Xu-sheng Cheng

Keyword(s):

Early Stage ◽

Contextual Factors ◽

New Ventures ◽

Panel Study ◽

Binary Logistic Regression ◽

New Venture ◽

Business Planning ◽

Content Type ◽

Innovative Products ◽

The Impact

Purpose The purpose of this paper is to build a research model to examine the effects of business planning on the new venture emergence, as well as to examine the moderating effects of innovativeness of products. Design/methodology/approach Four hypotheses are put forward and examined by hierarchical binary logistic regression. The data of this paper are based on the first two waves of data from Chinese Panel Study of Entrepreneurial Dynamics project. Findings Results show that engaging in business planning has a positive effect on the new venture emergence, and the timing of business planning does not affect the new venture emergence significantly. This study also finds that the innovativeness of products has a positive moderating effect on the relationship between the timing of business planning and the new venture emergence. Research limitations/implications This study has some limitations. The innovativeness of products is measured by a single indicator, which may not completely reflect the meaning of the attribute. Moreover, this study explores new ventures only in the nascent stage. Practical implications The study is useful for entrepreneurs to realize the importance of business planning. First, engaging in business planning in early start-up stage is a very valuable activity, because business planning can help new ventures reduce the loss caused by trial and error learning. Second, engaging in business planning is more likely to ensure high innovative products quickly be accepted by the market. Because in the process of new venture emergence, the legitimacy signal to stakeholders can be transmitted and new products can be promoted to get support and recognition from stakeholder through the business plan. Originality/value This paper focuses on the early stage of new venture life cycle and the contextual factors to explore the influence of business planning on the new venture emergence under the logic of legitimacy. This paper could enrich business planning research from the perspective of legitimacy theory by inspiring scholars to focus on the differences between new ventures and mature enterprises and to offer proposals of legitimation strategies suitable for new ventures. Meanwhile, this study contributes to the understanding of the contextual factors of business planning. And it discusses the impact of the attribute in business planning on the new venture emergence, which helps scholars to get a deep thought about the value of business planning in entrepreneurial process.

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ACHIEVING SUPERIOR INTERNATIONAL NEW VENTURE (INV) PERFORMANCE: EXPLOITING SHORT-TERM DURATION OF TIES

Journal of Enterprising Culture ◽

10.1142/s0218495808000028 ◽

2008 ◽

Vol 16 (01) ◽

pp. 1-18 ◽

Cited By ~ 4

Author(s):

MARY HAN

Keyword(s):

Network Analysis ◽

New Ventures ◽

Economic Effect ◽

The Body ◽

New Venture ◽

Superior Performance ◽

International New Ventures ◽

Short Term ◽

Network Ties ◽

The Impact

Network ties help international new ventures (INVs) achieve success. However, researchers have paid little attention to the duration of network ties and the impact of duration on performance. I draw on network analysis and the resources-based view to examine this area and propose a conceptual model that depicts the variables and mediating factors for INV performance. The model explains how INVs acquire, manage and exploit ties to achieve superior performance. I argue that resource-constrained INVs can minimize their investment of time and capital, and maximize the economic effect of ties, by using briefer time periods and short-term projects. I also propose that INVs adopt a 'hedging' or portfolio approach to managing ties, by collecting larger number of prospects to reduce uncertainty. The model and propositions contribute to the body of literature in network analysis and INVs. The paper highlights implications for research and practice.

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The impact of founders' personality traits on the performance of Chinese apparel new ventures

10.32469/10355/50195 ◽

2015 ◽

Author(s):

◽

Li Zhao

Keyword(s):

Personality Traits ◽

Online Survey ◽

New Ventures ◽

Apparel Industry ◽

New Venture ◽

Venture Performance ◽

Research Findings ◽

The Impact ◽

New Venture Performance

The study investigated how founders' personality traits impact Chinese apparel new venture performance. An online survey was conducted using founders' personality traits, the quality of firm network relationships, perceived competitive advantages, and perceived Chinese apparel new venture performance scales. Grounded in Barney's (1991) resource-based view of the firm, the study findings were expected to provide further evidence of the importance of the relationship between founders' personality traits and the quality of a firm's network relationships and, in turn, the impact on Chinese apparel new venture success. The findings may help people who are interested in starting new ventures in the Chinese apparel industry manage external network relationships that are critical for new venture success. Furthermore, the research findings would improve academic understanding of the Chinese apparel industry. Supply chain partners could also utilize these findings to make appropriate strategies for improving relationships with Chinese apparel new ventures to cope with the critical business challenges of globalization and collaboration.

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The impact of entrepreneurs' full-time versus hybrid employment and social connections on new venture survival: a USA–India comparison

South Asian Journal of Business Studies ◽

10.1108/sajbs-01-2021-0040 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Xi Zhang ◽

Shanthi Gopalakrishnan ◽

Raja Roy ◽

Cesar Bandera

Keyword(s):

Early Stage ◽

New Ventures ◽

New Venture ◽

Social Connections ◽

Entrepreneurial Firms ◽

Full Time ◽

Content Type ◽

Country Level ◽

The Usa ◽

The Impact

PurposeThe purpose of this paper is to explore how the entrepreneurs' social connections and types of employment differentially affect the survival of startup firms in the USA and India. Further, the authors analyze the differences during both the early stage and the later stages of new ventures.Design/methodology/approachThe authors use data from the Global Entrepreneurship Monitor (GEM) database between 2012 and 2014 and examine the hypothesized effects with logistic regression analyses.FindingsThe analysis reveals that an entrepreneur's social connections with other entrepreneurs favor the survival of the focal entrepreneur's early-stage business in the USA. However, social connections are more critical for later-stage ventures in India. During the early stage, new ventures of full-time entrepreneurs are more likely to survive in India, whereas those by hybrid entrepreneurs are more likely to survive in the USA. The differences between the importance of full-time and hybrid entrepreneurs across geographies are less discernible during the later stages of new ventures.Originality/valueThe novelty of this paper is that it demonstrates the significant differences in the way social connections and types of employment (hybrid versus full-time) affect the survival of entrepreneurial firms in the early and later stages. The study also expands the international business literature by shedding new light on country-level differences that affect the survival of new ventures.

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Hybrid Strategies, Dysfunctional Competition, and New Venture Performance in Transition Economies

Management and Organization Review ◽

10.1017/mor.2016.30 ◽

2016 ◽

Vol 12 (3) ◽

pp. 469-501 ◽

Cited By ~ 13

Author(s):

Yunzhou Du ◽

Phillip H. Kim ◽

Howard E. Aldrich

Keyword(s):

Market Orientation ◽

Transition Economies ◽

New Ventures ◽

Positive Influence ◽

Organizational Legitimacy ◽

New Venture ◽

Hybrid Form ◽

Hybrid Strategy ◽

Venture Performance ◽

New Venture Performance

ABSTRACTConventional wisdom suggests that new ventures can employ a combination of two general strategies to confront the challenges of operating in transition economies or regions known for their weak institutional conditions: These ventures may succeed by enacting a market-orientation strategy, which focuses on providing value to customers and implementing rapid responses to competitive situations. They can also engage in a more traditional political-networking strategy that engages government officials, which may yield public resources and enhance their organizational legitimacy. However, research results are inconclusive regarding the effectiveness of these strategies when they are combined in a hybrid form. We argue that the advantages of a hybrid strategy are contingent on the perception of a specific condition: dysfunctional competition. In our analysis of new venture performance in China, we show that political networking indeed amplifies the positive influence of market-orientation strategies on performance, but only in contexts where dysfunctional competition is perceived to be low. When such competition is high, political networking becomes counterproductive, diverting attention away from swift responses to market demands. By addressing how multiple strategies work together, we offer insights into the extent to which the effectiveness of hybrid strategies – incorporating both market-orientation and political-networking – depend on the context in which they are implemented.

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THE IMPACT OF BUSINESS CLIMATE, FOREIGN POPULATION AND UNEMPLOYMENT ON NEW VENTURE CREATION

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946712500215 ◽

2012 ◽

Vol 17 (04) ◽

pp. 1250021 ◽

Cited By ~ 2

Author(s):

MARK HOELSCHER ◽

BALASUBRAMANIAN ELANGO

Keyword(s):

New Ventures ◽

State Level ◽

New Venture ◽

New Venture Creation ◽

Venture Creation ◽

Business Climate ◽

Foreign Population ◽

Time Period ◽

Level Data ◽

The Impact

This paper seeks to add to the literature on regional factors that drive development of new ventures. In particular, it investigates the effects of business climate, foreign population and unemployment on new venture creation. Using state level data from the time period 2003–2007, we find that while business climate and foreign population are positively related to new venture creation, unemployment is negatively related. Implications of this study for fostering entrepreneurship are discussed.

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How does home country bribery affect firms’ foreign market focus?

Multinational Business Review ◽

10.1108/mbr-01-2018-0008 ◽

2018 ◽

Vol 26 (3) ◽

pp. 225-249 ◽

Cited By ~ 3

Author(s):

Jinsil Kim ◽

David H. Weng ◽

Seung-Hyun (Sean) Lee

Keyword(s):

Transition Economies ◽

Home Country ◽

New Ventures ◽

Foreign Market ◽

Business Environment ◽

Holistic View ◽

Content Type ◽

Domestic Markets ◽

Market Opportunities ◽

Market Focus

PurposeDrawing on the bribery literature, this paper aims to examine the effect of bribes paid in the home country on firms’ decision to internationalize through exports from transition economies. It also investigates whether the effect of home country bribery may vary from new ventures to established firms, and from those firms that operate in an environment with high to low informal competition.Design/methodology/approachThis paper tests several hypotheses using a panel data with fixed effects based on a sample of firms in transition economies from the Business Environment and Enterprise Performance Survey.FindingsFirst, home country bribery in transition economies can make domestic markets more lenient and dampen firms’ motivation to seek opportunities abroad. Second, new ventures have a higher motivation to focus on their domestic markets after paying bribes. Finally, despite the benefits accrued in the home country through bribery, firms that face a higher level of informal competition in the home country are more likely to seek opportunities abroad.Practical implicationsManagers in transition economies should consider their home country bribery activities in their evaluation of foreign market opportunities. Firms that use money to influence home country government officials, especially new ventures, are advised to have a more holistic view in evaluating foreign market opportunities so they will not miss out on new opportunities.Originality/valueThis paper advances literature on home country institutions and the research on firm global strategies. Moreover, it also highlights several contingencies that shape the effect of home country bribery on firms’ foreign market focus.

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Exploring Talent Cultivation of College Student-Athletes for New Ventures and Entrepreneurial Psychology of New Venture Entrepreneur

Frontiers in Psychology ◽

10.3389/fpsyg.2021.679901 ◽

2021 ◽

Vol 12 ◽

Author(s):

Qinglei Wang ◽

Mohd Salleh Aman ◽

Lim Boon Hooi

Keyword(s):

Psychological Stress ◽

Career Guidance ◽

Psychological Capital ◽

Positive Impact ◽

New Ventures ◽

New Venture ◽

Mediating Role ◽

Significant Difference ◽

Guidance Curriculum ◽

The Impact

To further promote the development of new ventures, sufficient research and analysis have been conducted on the managers (especially, new venture entrepreneurs) and employees of new ventures. In this study, the case investigation is adopted to study the psychological stress of new venture entrepreneurs, the psychological capital of college athletes and the cultivation of employability. The research results show that there is no significant difference in career guidance curriculum and employability among students with different academic performances (p > 0.05), but there is a significant difference in psychological capital among students with different academic performances (p < 0.05). The career guidance curriculum, employability, and psychological capital have different correlation degrees. The career guidance curriculum has a significantly positive impact on the employability of students, and psychological capital plays a mediating role in the impact of the career guidance curriculum on employability. The analysis of the psychological stress of new venture entrepreneurs indicates that the stress of the dimension of resource requirements is the least. Meanwhile, the psychological stress of new entrepreneurs has a positive impact on new venture performance. The research content is fully considered, which can provide a scientific and effective reference for the follow-up research.

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Home country institutions and exports of firms in transition economies: Does innovation matter?

Long Range Planning ◽

10.1016/j.lrp.2021.102087 ◽

2021 ◽

pp. 102087

Author(s):

Virginia Hernández ◽

María Jesús Nieto ◽

Alicia Rodríguez

Keyword(s):

Transition Economies ◽

Home Country

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