Networking, business process innovativeness and export performance: the case of South Asian low-tech industry

2017 ◽  
Vol 32 (6) ◽  
pp. 864-875 ◽  
Author(s):  
Anisur R. Faroque ◽  
Sussie C. Morrish ◽  
Ahmed Shahriar Ferdous
Keyword(s):  
Business Process ◽  
Export Performance ◽  
New Ventures ◽  
Developed Countries ◽  
Theory And Practice ◽  
Future Research ◽  
High Tech ◽  
International New Ventures ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this study is to investigate the role of business process innovativeness in the networking-export performance relationship in a developing country low-tech industry setting. Most innovation research in international business and entrepreneurship is conducted on high-tech industries in developed countries. Less research has focused on the low-tech industry context. This study bridges this research gap by testing whether international new ventures’ (INVs) networking resources impact their export performance through business process innovativeness. Design/methodology/approach The study tests the link between low-tech INVs’ networking, business process innovativeness and export performance using a sample of 647 export start-up apparel firms in Bangladesh, the second largest apparel exporter in the world. Findings The results recognize that an INV entrepreneur’s personal and inter-firm networking are directly and positively related to business process innovativeness and export performance. The findings also indicate that business process innovativeness acts as a mediator only between an INV’s inter-firm networking and its export performance. Research limitations/implications The study was undertaken in a Bangladeshi low-tech industry setting-the apparel sector; thus, future research may include data collection from a range of industries across countries. Data collected for the purpose of this study used a cross-sectional research design, and this may only have confirmed the relationships in the model and not causality between the constructs. Practical implications The findings highlight that low-tech INVs should focus more on leveraging their personal and inter-firm networking resources, as this should result in improved export performance. The results also provide directives for INVs in regard to improving their business process innovativeness to achieve increased performance. Originality/value The study is not only carried out in the context of low-tech early internationalizing firms (i.e. INVs), but also contributes to theory and practice by testing whether INVs’ networking resources (personal and inter-firm) have an impact on business process innovativeness, which in turn leads to improved performance.

Factors leading to early internationalization in emerging Central and Eastern European economies

2017 ◽  
Vol 29 (2) ◽  
pp. 219-242 ◽  
Author(s):  
Jurgita Sekliuckiene
Keyword(s):  
Case Studies ◽  
Emerging Economies ◽  
Transition Economy ◽  
International Entrepreneurship ◽  
New Ventures ◽  
Future Research ◽  
High Tech ◽  
International New Ventures ◽  
Content Type ◽  
Early Internationalization

Purpose The purpose of this paper is to explore factors leading to the early internationalization of international new ventures (INVs) in Lithuania – a transition economy in Central and Eastern Europe (CEE). The determinants of early internationalization were grouped into three categories: entrepreneurial, firm-related and contextual determinants, and their impact on high-tech INVs that operate in emerging economies was investigated. Design/methodology/approach The research design is a case study approach. Case studies are presented of six Lithuanian entrepreneurial firms that demonstrated successful internationalization and rapidly expanded into foreign markets during the preceding year. Findings Region-specific theoretical propositions are provided for new ventures in CEE emerging economies. The results reveal that essential factors leading to the early internationalization of INVs operating in Lithuania, a transition economy, are entrepreneurial factors. Internationalization of INVs from CEE emerging economies is driven by push factors related to domestic market specifics; however, institutional factors do not seem to have a significant impact on INVs’ internationalization. Research limitations/implications The results of the analysis of the case studies are not generalizable to the entire population of INVs in Lithuania. However, the results are substantial considering the success of high-tech Lithuanian firms that started their international activities shortly after their inception. Future research can contribute to the literature by seeking to apply international new venture theory in the context of emerging economies with larger samples and a focus on distinct patterns of internationalization. Originality/value The findings contribute to the literature on international entrepreneurship by exploring early internationalization of INVs in the context of transition economies in CEE. This study’s contribution is based on theory building, especially in understanding the driving factors related to the early internationalization of new ventures founded by Lithuanian entrepreneurs. International entrepreneurship studies in the CEE, as well as Baltic countries, are limited, and this research contributes to filling this gap.

scholarly journals Distinguishing entrepreneurial approaches to opportunity perception

2017 ◽  
Vol 23 (2) ◽  
pp. 296-316 ◽  
Author(s):  
Stern Neill ◽  
Lynn E. Metcalf ◽  
Jonathan L. York
Keyword(s):  
Women Entrepreneurs ◽  
New Ventures ◽  
High Growth ◽  
Theory And Practice ◽  
Future Research ◽  
Cognitive Resources ◽  
Multiple Discriminant Analysis ◽  
Educational Strategies ◽  
Content Type ◽  
Repeated Calls

Purpose Whether opportunities are discovered or created by entrepreneurs is a foundational question in entrepreneurship research. The purpose of this paper is to examine women entrepreneurs in high-growth new ventures and explore the cognitive resources that distinguish between three approaches to opportunity perception: opportunity discovery; opportunity creation; and a combined discover-create (ambidextrous) approach. Design/methodology/approach Using questionnaire responses from 165 women entrepreneurs in high-growth new ventures, K-means clustering was used to determine three approaches to opportunity perception. The cognitive resources associated with each approach were then identified using multiple discriminant analysis. Finally, multivariate analysis of variance was conducted to examine the relationship between opportunity perception and growth expectations. Findings These results demonstrate different approaches to opportunity perception among entrepreneurs in high-growth new ventures, the cognitive resources that reinforce each approach, and the expected new venture growth outcomes. Research limitations/implications The findings offer insight on the cognitive origins of opportunity perception by empirically identifying distinct approaches to opportunity perception and the cognitive resources that underlie each. The study relies on a unique sample of entrepreneurs to understand complex cognitive phenomenon. Practical implications Understanding the effects that cognitive factors have on opportunity perception provides direction for current and aspiring entrepreneurs. The findings and instrument may be used for professional development and to inform educational strategies. Originality/value The findings offer important contributions to entrepreneurial theory and practice by addressing repeated calls for research that examines the cognitive antecedents enabling opportunity formation (discovery, creation or both). This manuscript empirically does so, while opening up possibilities for future research.

scholarly journals Have we made it? Investigating value-creating strategies in early internationalizing ventures

2016 ◽  
Vol 26 (5) ◽  
pp. 517-536 ◽  
Author(s):  
Romeo V. Turcan ◽  
Anita Juho
Keyword(s):  
International Entrepreneurship ◽  
New Ventures ◽  
Dynamic Capability ◽  
Future Research ◽  
International New Ventures ◽  
Organizational Survival ◽  
Content Type ◽  
Early Internationalization ◽  
Start Up ◽  
Survival And Growth

Purpose The extant research on early internationalizing ventures focuses primarily on these ventures’ start-up phase or their initial internationalization. Scarce attention is paid to how these ventures grow, if at all, beyond their start-up phase or initial internationalization phase. This paper aims to explore how international new ventures transition from the internationalizing phase to the phase of being international, and whether they actually made it to that phase. Understanding whether and how these ventures reach their “made-it” point would contribute to our understanding of how early internationalization affects a venture’s survival and growth. In this, the authors draw on the dynamic capability theory of the firm. Design/methodology/approach Given the scarcity of theoretical understanding and empirical evidence in this substantive area of research, the authors adopted a multiple case study methodology for the purpose of theory building. Following an intensity sampling strategy, they purposefully selected information-rich, but not extreme two-case companies. The authors initially collected unobtrusive data in the form of running records and mass-media news reports from the inception of the case companies. They then conducted in-depth interviews with key decision makers of the case companies, namely, their co-founders and CEOs. Critical incident technique guidelines for data analysis were employed. Findings Grounded in data, the following constructs emerged related to value creation: strategic experimentation, gestalt tensions and legitimacy lies. Entrepreneurs experiment with and reconfigure their venture at several levels: goal (vision), decision (strategic) and behavioral (tactical) levels of the organizational gestalt to reach a threshold level of practiced activity. Entrepreneurs’ strategic experimentation efforts are fueled by tensions that exist at these three levels of the organizational gestalt. During this experimentation process, entrepreneurs may tell legitimacy lies to legitimate their ventures in the eyes of their stakeholders. Research limitations/implications Given the instrument the authors used to explore the issues and concerns identified above, the results are limited in scope. However, a number of questions and conjectures are put forward to guide future research in this currently under-researched area of international entrepreneurship. The authors have also suggested using the concept of turning point in future research to advance the understanding of the dynamic capability view of international new ventures. Practical implications Understanding whether and how international new ventures reach their made-it points would contribute to the understanding of how early internationalization affects international new ventures’ organizational survival and growth. Originality/value The authors have put forward the concept of the made-it point to aid international entrepreneurship researchers to investigate the continued growth, evolutionary patterns and the organizational survival of international new ventures.

Relational flexibility norms and relationship-building capabilities as a mediating mechanism in export performance: insights from exporting SMEs in an emerging economy, Peru

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oscar Malca ◽  
Jean Pierre Bolaños ◽  
Francisco J. Acedo ◽  
Jorge Luis Rubio Donet ◽  
Jesus Peña-Vinces
Keyword(s):  
Positive Impact ◽  
Export Performance ◽  
Mediating Effect ◽  
Relationship Building ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
Coordination Costs ◽  
Relational Flexibility ◽  
The Relationship

PurposeThe purpose of this study is to analyse the mediating and moderating effects of relational flexibility norms on relationship building capacities and export performance.Design/methodology/approachThe study followed a quantitative and cross-sectional approach. The analysis was applied to 95 Peruvian Exporting SMEs which were examined through structural equation modelling (SEM) using AMOS 24.0 statistical package. The responses were gathered through telephone and personal interviews which were tested using the Mann–Whitney U test, finding no statistically significant differences.FindingsThe main finding of the study is to demonstrate the indirect effect of relational flexibility norms on the export performance of SMEs through relationship-building capabilities. In this way, these capabilities become very important variables in the export management of SMEs, since they directly affect the relationship of the Exporter–Importer dyad.Research limitations/implicationsOne of the limitations is the cross-sectional type study that applies to the short-term effects of relational norms. Organizational characteristics and other factors that may affect export performance should also be considered in future research, as well as longitudinal studies should be developed.Practical implicationsThe study allows SMEs to focus management efforts on strengthening the relationship – building capabilities, which are very important given SMEs' resource constraints. Therefore, an adequate management of relations with importers can contribute to the reduction of control and coordination costs; and have a positive impact on export performance. Similarly, the study contributes to the management of export promotion by suggesting that one area to be prioritized is the strengthening of the relationship capacities of exporting SMEs.Originality/valueThe study provides the analysis of the mediating effect of the relationship-building capability between relational flexibility and export performance. In this way, it enriches the theoretical analysis and contributes with the empirical evidence of an emerging country like the case of Peru.

Retrospective: a cross-sectional test of the effect and conceptualization of service value revisited

2016 ◽  
Vol 30 (3) ◽  
pp. 261-265 ◽  
Author(s):  
J. Joseph Cronin
Keyword(s):  
Marketing Research ◽  
Service Marketing ◽  
Theory And Practice ◽  
Future Research ◽  
Consumer Decision Making ◽  
Marketing Theory ◽  
Cross Sectional ◽  
Research Directions ◽  
Content Type ◽  
Service Value

Purpose This paper aims to provide an evaluation of the findings first put forward in the article “A cross-sectional test of the effect and conceptualization of service value” with the benefit of hindsight, and to offer directions for further research and developments in the research area. Design/methodology/approach Research directions which emanated from the publication of the paper have been examined in the light of current service(s) marketing theory and practice. As a result, promising current and future strands of research have been identified. Findings The focus of both the original and this paper is on the conceptualization and measurement of the value construct. Although much theory has been advanced relative to the measurement of value, the marketing literature lacks a conceptualization and measures that reflect this theory. Research limitations/implications The implication of the paper is that marketing scholars tend to focus more on to other studies before exhausting the opportunities to identify and test appropriate conceptualizations and measures of core marketing constructs such as value, quality, sacrifice and satisfaction. Practical implications Although value is universally identified as a major driver of consumer decision-making, a full appreciation of its role in the strategic marketing efforts of organizations depends on having an accurate conceptualization and measures. The original paper and this revisit motivate and assist organizations in their efforts to better understand value and its impact in the decisions made by consumers. Social implications To contribute to the needs and wants of society, organizations must identify what is valued by society. The original and this revisit identify the creation of value as a basic need in encouraging consumer behaviours when the intent is to satisfy societal needs or desires. Originality/value The original paper was highly rated, and generated discussion and important further research. It has value as part of the history of service marketing research. The retrospective analysis by the authors gives a unique insight into processes and thinking associated with understanding key aspects that contribute to the historical development of service marketing, and provides substantial food for thought for future research directions.

The early development of International New Ventures: a multidimensional exploration

2019 ◽  
Vol 25 (6) ◽  
pp. 1340-1367 ◽  
Author(s):  
Paul Kirwan ◽  
Tiago Ratinho ◽  
Peter van der Sijde ◽  
Aard J. Groen
Keyword(s):  
Early Development ◽  
New Ventures ◽  
High Tech ◽  
International New Ventures ◽  
Content Type ◽  
Development Stages ◽  
Starting Point ◽  
Potential Resource ◽  
Foreign Operation ◽  
Representative Samples

Purpose The purpose of this paper is to investigate the early development stages of International New Ventures (INVs). Specifically, the authors explore how INVs acquire and leverage four kinds of capital – strategic, managerial, financial and social – to recognise a foreign opportunity, begin the pre-foreign entry activities, and finally start the INV. Design/methodology/approach A stage-based, multidimensional framework was used to investigate how INVs acquire and use the four capitals throughout the internationalisation process. Drawing on four case studies of high-tech INVs, this study tracks their development in three stages: foreign opportunity, pre-foreign operation and post-foreign operation. Findings Results indicate INVs build advantages and internationalisation activities occur before formal operations begin. INVs deliberately orchestrate certain kinds of capital contingent to the specific internationalisation stage. Further, the authors find that not all types of capital are equally important throughout the internationalisation process: INVs identify foreign opportunities when endowed with managerial and social capital; INVs source a majority of their managerial and financial capitals externally before internationalising; and INVs only contribute all four capitals simultaneously after internationalising. Research limitations/implications Findings contribute to knowledge about the development of INVs pre-internationalisation and pre-founding. The study is limited to a comparative sample of INVs, which impacts the generalisability. However, the findings provide a starting point for investigating similar effects using more representative samples. Practical implications Entrepreneurs can be proactive in networking activities to allow them greater opportunity to interact with potential resource providers dependent on the stage of internationalisation. Originality/value This study contributes to the international entrepreneurship literature with qualitative evidence of the micro-level processes of internationalisation. Very few studies investigate the early, pre-internationalisation and pre-foundation, development stages of INVs.

Regulation and information asymmetry

2008 ◽  
Vol 16 (1) ◽  
pp. 59-76 ◽  
Author(s):  
Robyn McLaughlin ◽  
Assem Safieddine
Keyword(s):  
Information Asymmetry ◽  
Stock Returns ◽  
Operating Performance ◽  
Cost Benefit ◽  
Future Research ◽  
Information Asymmetries ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Content Type ◽  
Regulated Utilities

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

Does uncertainty boost overconfidence? The case of financial analysts' forecasts

2014 ◽  
Vol 40 (3) ◽  
pp. 300-324 ◽  
Author(s):  
Véronique Bessière ◽  
Taoufik Elkemali
Keyword(s):  
Stock Returns ◽  
Private Information ◽  
High Tech ◽  
Cross Sectional ◽  
Forecast Dispersion ◽  
Content Type ◽  
The Public ◽  
Public Announcement ◽  
Before And After ◽  
Sectional Analysis

Purpose – This article aims to examine the link between uncertainty and analysts' reaction to earnings announcements for a sample of European firms during the period 1997-2007. In the same way as Daniel et al., the authors posit that overconfidence leads to an overreaction to private information followed by an underreaction when the information becomes public. Design/methodology/approach – In this study, the authors test analysts' overconfidence through the overreaction preceding a public announcement followed by an underreaction after the announcement. If overconfidence occurs, over- and underreactions should be, respectively, observed before and after the public announcement. If uncertainty boosts overconfidence, the authors predict that these two combined misreactions should be stronger when uncertainty is higher. Uncertainty is defined according to technology intensity, and separate two types of firms: high-tech or low-tech. The authors use a sample of European firms during the period 1997-2007. Findings – The results support the overconfidence hypothesis. The authors jointly observe the two phenomena of under- and overreaction. Overreaction occurs when the information has not yet been made public and disappears just after public release. The results also show that both effects are more important for the high-tech subsample. For robustness, the authors sort the sample using analyst forecast dispersion as a proxy for uncertainty and obtain similar results. The authors also document that the high-tech stocks crash in 2000-2001 moderated the overconfidence of analysts, which then strongly declined during the post-crash period. Originality/value – This study offers interesting insights in two ways. First, in the area of financial markets, it provides a test of a major over- and underreaction model and implements it to analysts' reactions through their revisions (versus investors' reactions through stock returns). Second, in a broader way, it deals with the link between uncertainty and biases. The results are consistent with the experimental evidence and extend it to a cross-sectional analysis that reinforces it as pointed out by Kumar.

scholarly journals Unemployment and spell duration during the Great Recession in the EU

2015 ◽  
Vol 36 (2) ◽  
pp. 216-235 ◽  
Author(s):  
Carlos Gradín ◽  
Olga Cantó ◽  
Coral del Río
Keyword(s):  
Great Recession ◽  
Negative Impact ◽  
Labour Force ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Great Recession ◽  
Unemployment Spells ◽  
Practical Implications ◽  
The Eu

Purpose – The purpose of this paper is to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession, which had unequal consequences on employment depending on the country considered. Design/methodology/approach – The paper follows Shorrocks’s proposal of a duration-sensitive measure of unemployment, and uses cross-sectional data reported by Eurostat coming from European Labour Force Surveys. Findings – The results add some evidence on the relevance of incorporating spells’ duration in measuring unemployment, finding remarkable differences in unemployment patterns in time among European countries. Research limitations/implications – In this paper unemployment is analyzed for all the labor force. Future research should investigate patterns across specific groups such as young people, women, immigrants or the low skilled. Practical implications – It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. The paper shows an easy and practical way to do it in order to improve the understanding of the unemployment phenomenon, using information usually reported by statistical offices. Originality/value – First, the paper provides a tool for dynamic analysis of unemployment based on reported cross-sectional data. Second, the paper demonstrates the empirical relevance of considering spells’ duration when assessing differences in unemployment across countries or in unemployment trends. This is usually neglected or only partially addressed by most conventional measures of unemployment.

Comparing entrepreneurial communities

2015 ◽  
Vol 9 (3) ◽  
pp. 206-220 ◽  
Author(s):  
Justin Paul ◽  
Archana Shrivastava
Keyword(s):  
Information Technology ◽  
Developed Countries ◽  
Personality Factors ◽  
Asian Countries ◽  
Cross Sectional ◽  
Developed Country ◽  
Content Type ◽  
Mba Students ◽  
Emerging Country ◽  
Survey Responses

Purpose – The purpose of this paper is to compare entrepreneurial attributes of MBA students, the next generation business people, from two important Asian countries, India from South Asia and Japan from East Asia (India, being an emerging country and Japan, a developed country). Design/methodology/approach – Survey responses from MBA students in India and Japan were measured on an entrepreneurial personality index. Bateman and Crant’s scale consisting of 17 traits is used to identify if entrepreneurial traits are a learned cultural behaviour or intrinsic personality factors. Findings – Although the findings indicate that India has benefitted from entrepreneurship in the information technology and information technology-enabled service ventures during the past two decades, the country still has a long way to go when compared to developed countries like Japan, where entrepreneurship is widespread. Research limitations/implications – The results are based on a single survey, using cross-sectional data. Originality/value – The level of entrepreneurship differs considerably across countries and periods. The authors put forward a theoretical framework to denote the linkage between entrepreneurial attitude, pro-active personality and culture, besides highlighting the three pillars of entrepreneurship.

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