The effects of entrepreneurs’ moral awareness and ethical behavior on product innovation of new ventures

2019 ◽  
Vol 13 (2) ◽  
pp. 421-446 ◽  
Author(s):  
Yiyuan Mai ◽  
Wenge Zhang ◽  
Lihua Wang
Keyword(s):  
Ethical Behavior ◽  
Product Innovation ◽  
Cognitive Theory ◽  
New Ventures ◽  
Initial Step ◽  
Moral Awareness ◽  
Mediation Effects ◽  
Content Type ◽  
Team Members ◽  
Founding Team

Purpose The purpose of this paper is to apply the social cognitive theory and social learning theory to examine the different mechanisms through which entrepreneurs’ moral awareness and ethical behavior affect the product innovation of new ventures. Design/methodology/approach The authors collected survey data from 150 founders and 389 founding team members of new ventures in China in 2015. The final sample contained 113 questionnaires from entrepreneurs and 246 questionnaires from their founding team members. Regression analyses were used to test direct effects, and Preacher and Hayes’ (2004) formal mediation test approach with bootstrapping method was used to evaluate the mediation effects. Findings The findings indicate that the ethical levels of entrepreneurs can affect the product innovation of a new venture through two paths: entrepreneurs with low levels of moral awareness tend to be more individually creative, which facilitates product innovation, and entrepreneurs with high levels of ethical behavior can make founding teams more creative, which also promotes product innovation. Practical implications The findings of this study suggest that entrepreneurs are not negatively affected by their low moral awareness as long as they exhibit high ethical behavior with founding team members. But such low moral awareness has to be genuine. The best way to promote product innovation in the long run is to create an organizational culture of ethical behavior rather than to ignore moral issues in decision-making. Originality/value This study challenges the assumption that moral awareness and ethical behavior are always consistent. It takes an initial step to resolve the contradiction in the current literature regarding the relationship between the ethical levels of entrepreneurs and product innovation in the context of founders and founding teams in new ventures.

How teams perform under emergent and dynamic situations: the roles of mental models and backup behaviors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zikai Zhou ◽  
Pilar Pazos
Keyword(s):  
Mental Models ◽  
Team Performance ◽  
Dynamic Environment ◽  
Strong Relationship ◽  
Mediation Effects ◽  
Content Type ◽  
Team Members ◽  
Team Mental Models ◽  
Theoretical Support ◽  
Task Requirements

Purpose The purpose of this study is to evaluate the roles of team mental models (TMMs) and backup behaviors for teams operating under emergent and dynamic situations. Specifically, the authors used a biased-corrected bootstrapping approach to assess the mediation effects of backup behaviors between the similarity of TMMs and team performance. Design/methodology/approach TMMs are a representation of the common understanding and beliefs in terms of task requirements or teamwork skills among different team members. It has wide implementations in various teams that are required to adapt quickly to an emergent and dynamic environment. The construct of TMMs has been studied extensively in previous literature, indicating a strong relationship between TMMs and team performance. However, how TMMs affect team performance under emergent and dynamic situations is only partially understood. Findings The findings of this study suggest that the similarity of task-focused mental models positively affects team performance through the mediation effects of backup behaviors. In contrast, the similarity of team-focused mental models does not positively affect backup behaviors and team performance. Originality/value This study contributes to the TMMs literature by investigating how teams perform in an emergent and dynamic environment. It not only provides theoretical support to the similarity of TMMs–backup behaviors–team performance relationships but has important implications in terms of team training and decision-making for teams operating under such conditions.

New ventures, product innovation and business intermediaries

2014 ◽  
Vol 8 (2) ◽  
pp. 241-257 ◽  
Author(s):  
Aiqi Wu ◽  
Shengxiao Li ◽  
Huafeng Wang
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Positive Influence ◽  
Business Services ◽  
Content Type ◽  
Innovation Activities ◽  
Innovation Product ◽  
Knowledge Intensive ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to examine the impact of knowledge-intensive business services (KIBS) intermediary ties on new ventures’ product innovation. Product innovation is a critical strategy for new ventures’ survival and growth. However, as a result of smallness and newness, new ventures usually face considerable difficulties in product innovation and require support to help their innovation search and innovation activities. Design/methodology/approach – A questionnaire survey of 145 Chinese new ventures is used to test presented hypotheses empirically. Findings – This study finds that the intensity of KIBS intermediary ties has a positive influence on innovation, while the diversity of KIBS intermediary ties has no influence on new ventures’ product innovation. Moreover, the relationship between the intensity of KIBS intermediary ties and new ventures’ product innovation is moderated by the degree of their international venturing and ties with other firms. Originality/value – This study enriches understanding of the important roles of KIBS intermediary ties on new ventures’ product innovation.

The heavy cost of kumbaya–understanding the survival implications of nascent venture ownership structure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Noack ◽  
Douglas R. Miller ◽  
Rebecca Guidice
Keyword(s):  
Ownership Structure ◽  
Critical Time ◽  
Psychological Ownership ◽  
New Venture ◽  
New Venture Creation ◽  
Venture Creation ◽  
Content Type ◽  
Team Members ◽  
Founding Team ◽  
The Impact

PurposeThis paper brings in relevant entrepreneurial behavior theory to understand the ownership decisions founders make during the nascent stage of new venture creation, and how such decisions impact the viability of the firm.Design/methodology/approachThe authors examine the behavior and decision making of 137 lead founders during the nascent stage of new venture creation. Psychological ownership and environmental uncertainty are measured of lead founders when dividing up firm ownership among the founding team. Using a longitudinal approach, these nascent-stage decisions are then analyzed to understand the impact on the new venture one year later.FindingsCounter to prior research suggesting teams are better off with identical wages and ownership, the authors find such harmony (i.e. “kumbaya”) pursuit to be a detriment to new venture emergence. Specifically, this study finds that nascent ventures are better off with an unequal ownership split among the founding team members. These findings suggest that nascent firms with an unequal split are more likely to move beyond the nascent stage and launch a functional business.Research limitations/implicationsAlthough the results of this study offer a valuable contribution to lead founders and new businesses, the study looked at each startup independent of another and is therefore not able to draw any conclusions related to competitiveness.Practical implicationsLead founders and founding teams frequently divide ownership evenly among the founders. This paper shows that, while convenient, the decision to divide ownership equally can hamper a nascent firm as it moves toward the launch phase of the startup process. These results should motivate founders to think deeply regarding the ownership structure decision and, at the very least, consider the possible negative costs associated with the pursuit of founding team unity.Originality/valueWhile scholars have brought attention to the nascent stage, few have identified and analyzed the decisions that take place during this critical time of the new venture development process. Furthermore, even is less is known of the impact nascent decisions have on startup launch. This study sheds light on these areas.

Metamorphosis from virtual community to ‘For Benefit’ enterprise: chronicle of PULA and PULA Exclusives Pvt. Ltd.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leena B. Dam ◽  
Deepa Pillai
Keyword(s):  
Digital Media ◽  
Business Strategy ◽  
Social Cognitive ◽  
Cognitive Theory ◽  
Virtual Community ◽  
Primary Data ◽  
Content Type ◽  
Team Members ◽  
Postgraduate Students ◽  
Academic Level

Theoretical basis The instructor should discuss the various forms of organization. Particular reference needs to be drawn on “For Benefit” firms. How such firms enable societal development should be stressed upon. Other theories considered are “need achievement theory”, “self-determination theory” and “social cognitive theory.” Research methodology The primary data for the case was from a series of in-depth interviews and interactions with Sonia and her core team members of Bazaar and Approval Teams. Frequent deliberation with the founder and core team led to interesting dialogues on the aspiration to uphold Pune Ladies Association (PULA) Exclusives Pvt. Ltd. as a “For Benefit firm” and developing indigenous women entrepreneurs which was a stimuli for writing the case. Online surveys of the PULA verified sellers were conducted to identify their rationale of starting the venture and also their experiences on the PULA platform. Case overview/synopsis March 2019, the core committee of PULA Exclusives Pvt. Ltd. (the firm) engineered a dialogue. They wanted to expand a new horizon with its mission of “For Benefit”. The firm is an offshoot of PULA, a virtual women’s community in Facebook. Complexity academic level The case may be used for postgraduate students pursuing entrepreneurship and management courses. The case can be used for teaching executive level programs of business strategy and digital media. The case applies to the use of digital media in businesses, social entrepreneurship and innovation strategies.

The impact of the US government policies on consumer perceptions of business ethical behavior

2018 ◽  
Vol 15 (1) ◽  
pp. 21-25
Author(s):  
John Tsalikis ◽  
Bruce Seaton ◽  
Philip L. Shepherd ◽  
Michelle van Solt
Keyword(s):  
Business Ethics ◽  
Ethical Behavior ◽  
Initial Step ◽  
Political Affiliation ◽  
Business Practices ◽  
Donald Trump ◽  
Content Type ◽  
Us Government ◽  
The Usa ◽  
The Impact

Purpose The unethical behavior of businesses toward their customers is thought to contribute to a loss of trust and confidence in the integrity of American corporations. Distrust between the two parties in the marketplace inhibits business transactions. The business ethics index (BEI) was established to formally and continuously measure the consumer sentiments of the ethical behavior of American businesses. This paper aims to measure the effect of political affiliation on consumers’ ethical perceptions of businesses. Design/methodology/approach The BEI was originally developed as an indicator of consumers’ sentiments toward the ethicality of business practices. The current research uses the BEI once again to evaluate consumers’ perceptions of business ethics in the era of President Donald Trump and his administration. The BEI was therefore extended with the question: “Do you believe that because of the new president Donald Trump, businesses will behave: ‘more ethically’, ‘about the same’ or ‘more unethically’?”. Findings Data from 1,008 telephone interviews in the USA were used to calculate a BEI of 114.5, indicating an overall positive consumer sentiment toward the ethical behavior of business. Respondents’ political affiliation was found to significantly affect their perception of the ethical behavior of businesses. Originality/value This is an initial step in studying the connection between governmental policies and business ethics perception.

scholarly journals Teams in new ventures: gender, human capital and motivation

2020 ◽  
Vol 12 (2) ◽  
pp. 145-171 ◽  
Author(s):  
Roy Cerqueti ◽  
Caterina Lucarelli ◽  
Nicoletta Marinelli ◽  
Alessandra Micozzi
Keyword(s):  
Human Capital ◽  
New Ventures ◽  
Panel Study ◽  
New Venture ◽  
Nascent Entrepreneurs ◽  
Content Type ◽  
Team Members ◽  
Business Creation ◽  
Personal Motivation ◽  
Start Ups

Purpose This paper aims to dismantle the idea that sex per se explains entrepreneurial outcomes and demonstrates the influence of a gendered motivation on forging and shaping new venture teams, which is a disruptive choice affecting the future of start-ups. Design/methodology/approach A two-level research model is validated on data from the Panel Study of Entrepreneurial Dynamics II (PSED II), with a system of simultaneous equations. First, if team features affect the performance of new ventures is tested; then, the study investigates determinants of team features with a focus on sex and motivation of nascent entrepreneurs. Findings Human capital (HC) in terms of education and experience of team members consistently explains venture evolution only when considering the larger team of affiliates. The HC gathered by nascent entrepreneurs is not because of the simplistic sex condition, but rather to a gendered motivation related to the inferior need of achievement of women. Research limitations/implications Limitations of discretionary scoring assigned to items of the PSED II survey are present, but unavoidable when processing qualitative data. Practical implications Women need to be (culturally) educated on how to re-balance their personal motivation towards entrepreneurship by fostering their incentives for achievement. Political and educational programmes could trigger success in the creation of new businesses led by women. Originality/value This paper contributes to the literature on nascent entrepreneurship, focusing on the entrepreneurial teams in the initial phase of business creation, and provides the basis for further studies aimed at eradicating the stereotypes of gender roles that lead women to self-exclusion and organizational errors.

scholarly journals Is more always better? Risk trade-offs among internationalizing new ventures

2014 ◽  
Vol 26 (5) ◽  
pp. 406-420 ◽  
Author(s):  
Stephanie A. Fernhaber ◽  
Patricia P. McDougall-Covin
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Future Research ◽  
Content Type ◽  
Trade Offs ◽  
And Performance ◽  
Technology Industries ◽  
Gain Access ◽  
Heckman Selection

Purpose – The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance. Design/methodology/approach – New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test the hypotheses, a regression using Heckman selection was run using a sample of 210 US-based, publicly held ventures in high-technology industries. Findings – The results confirm that when higher levels of internationalization are coupled with either a low emphasis on product innovation or larger size, the negative returns are mitigated and actually become positive. Research limitations/implications – A key implication lies in recognizing the role of risk management for internationalizing ventures. Future research could benefit by testing for generalizability in other countries as well as among privately held ventures. Practical implications – To manage the trade-offs associated at higher levels of internationalization, ventures need to maintain a low emphasis on product innovation or meet a threshold in terms of size. Originality/value – The value of this research lies in better understanding how ventures are able to overcome rising costs at higher levels of internationalization.

The impact of CSR best practices on job performance: the mediating roles of affective commitment and work engagement

2021 ◽  
Vol 8 (1) ◽  
pp. 129-148
Author(s):  
Rima Bizri ◽  
Marwan Wahbi ◽  
Hussein Al Jardali
Keyword(s):  
Best Practices ◽  
Job Performance ◽  
Work Engagement ◽  
Affective Commitment ◽  
Banking Sector ◽  
Cognitive Theory ◽  
Equation Modeling ◽  
Mediation Effects ◽  
Content Type ◽  
The Impact

PurposeOne of the main challenges of human resource management (HRM) functions is how to leverage an organization's corporate social responsibility (CSR) practices for the improvement of employees' job performance. The rationale is that employees identify with and learn from CSR best practices and try to replicate them in their own capacities on the job, thus elevating levels of performance. This study aims at investigating the impact of organizational CSR practices on employee job performance, in the presence of important job attitudes, namely, affective commitment and work engagement.Design/methodology/approachThe study employed structural equation modeling to analyze data that were collected through a survey of previously validated scales. The survey was distributed using the convenience sampling technique among respondents in the Lebanese banking sector, and 302 useable surveys were collected.FindingsThe structural model confirmed the significant influence of CSR best practices on job performance, in the presence of significant mediation effects of affective commitment and work engagement.Practical implicationsThe effects of organizational CSR could be underscored through a variety of HR initiatives that aim at promoting employees' identification with the organization and its CSR goals, thereby enhancing affective organizational commitment and work engagement. Levels of affective commitment and work engagement could be periodically assessed and enhanced through HR-led programs to facilitate and augment their mediatory effects on job performance.Originality/valueThis study fills a gap in the literature by shedding light on the impact of CSR practices on employees' affective commitment and work engagement within the framework of the social cognitive theory. It highlights the importance of employees' identification with their organization's CSR values and practices, leading to improved job performance, a dynamic that has not been studied in previous research. This study also serves as a point of reference to future studies that will be conducted after the Lebanese banking sector undergoes restructuring, following accusations of corruption and mismanagement.

Entrepreneurial competences, liability of newness and infant survival

2016 ◽  
Vol 35 (9) ◽  
pp. 1082-1097 ◽  
Author(s):  
Gianpaolo Abatecola ◽  
Vincenzo Uli
Keyword(s):  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Service Industry ◽  
New Ventures ◽  
Infant Survival ◽  
Content Type ◽  
The Usa ◽  
Research Stream ◽  
Founding Team ◽  
Start Ups

Purpose What entrepreneurial competences can increase the start-ups’ infant survival chances? How can the liability of newness be successfully handled? Positioned in this research stream, which, especially over recent years, has been particularly lively also in the Journal of Management Development, the purpose of this paper is to meet not only the research, but also the education and practice-oriented purposes of the journal. Design/methodology/approach How can routines’ exploitation counteract the liability of newness? How can entrepreneurial orientation oppose it? Why is the liability of adolescence important when discussing the performance of start-ups? To address these questions, taken separately into account, the paper presents a set of three case studies from the service industry, each of which is based on a specific research design. Findings The authors found that the routines’ exploitation mechanisms, the degree of entrepreneurial orientation of the founding team, and the stock of the initial assets, could be all considered consistent predictors of new ventures’ infant survival. The authors thus believe that the findings may offer a useful contribution both to current and prospective managers and entrepreneurs. Originality/value Stinchcombe’s assumption about the tremendous failure rate associated with the earliest stage of start-ups’ life cycle has been proved to be valid at least in the most recent evidence from both Europe and the USA. At the same time, formalizing a checklist of competences appropriate to increase the possibilities of organizational infant survival appears as a priority not yet accomplished. Thus, the study is aimed at providing some useful food for thought on this issue.

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