Innovation affecting growth aspirations of early stage entrepreneurs: culture and economic freedom matter

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehrzad Saeedikiya ◽  
Jizhen Li ◽  
Shayegheh Ashourizadeh ◽  
Serdar Temiz

Purpose Earlier research confirms the positive effect of innovation in shaping growth ambitions of entrepreneurs. The aim of this paper is to investigate whether the effect of innovation on growth ambitions of entrepreneurs is contingent on the role of institutions, namely, culture and economic freedom. In other words, the authors’ objective is to provide an institutionally contingent understanding of the role of innovation in shaping growth ambitions of early-stage entrepreneurs. Design/methodology/approach The authors applied hierarchical linear modeling technique on the data of 100,566 early-stage entrepreneurs in 109 countries that participated in annual surveys of Global Entrepreneurship Monitor. Findings The authors find that the effect of innovation on shaping growth ambitions of early stage entrepreneurs is contingent on the role of culture such that, in secular cultures, innovation benefits growth ambitions more than traditional cultures. Further, the authors found that the effect of innovation on growth expectations is dependent on the level of economic freedom in the country in which the firms operate so that in the countries with higher level of economic freedom, early-stage entrepreneurs expect more growth out of their innovation as compared to their counterparts in the depressed economies. Originality/value The results contribute to our understanding of entrepreneurial growth aspirations as a result of the interplay of entrepreneur–firm–environment nexus.

2017 ◽  
Vol 46 (3) ◽  
pp. 608-623 ◽  
Author(s):  
Mieke Audenaert ◽  
Alex Vanderstraeten ◽  
Dirk Buyens

Purpose The purpose of this paper is to contribute to the field’s understanding of how to raise individual innovation. Specifically, the authors aim to contribute to an understanding of the interplay of job characteristics and intrinsic motivation for individual innovation. Design/methodology/approach The study uses time-lagged survey data of a public service organization in Belgium. The analyses are based on more than 80 jobs and more than 1,000 employees. Hierarchical linear modeling was adopted to test cross-level hypotheses. Findings Innovation requirements influence individual innovation efforts by psychologically empowering employees, but the extent to which psychological empowerment translates into individual innovation depends on job complexity. Originality/value A more nuanced understanding is developed of when innovation requirements empower individual innovation, by acknowledging the role of job complexity in this relationship. The current findings contribute to a multilevel integrative understanding of the interplay of the job context and intrinsic motivation.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Garrett ◽  
Shaunn Mattingly ◽  
Jeff Hornsby ◽  
Alireza Aghaey

PurposeThe purpose of this study is to evaluate the effect of opportunity relatedness and uncertainty on the decision of a corporate entrepreneur to pursue a venturing opportunity.Design/methodology/approachThe study uses a conjoint experimental design to reveal the structure of respondents' decision policies. Data were gathered from 47 useable replies from corporate entrepreneurs and were analyzed with hierarchical linear modeling (HLM).FindingsResults show that product relatedness, market relatedness, perceived certainty about expected outcomes and slack resources all have a positive effect on the willingness of a corporate entrepreneur to pursue a new venture idea. Moreover, slack was found to diminish the positive effect of product relatedness on the likelihood to pursue a venturing opportunity.Practical implicationsBy providing a better understanding of decision-making schemas of corporate entrepreneurs, the findings of this study help improve the practice of entrepreneurship at the organizational level. In order to make more accurate opportunity assessments, corporate entrepreneurs need to be aware of their cognitive strategies and need to factor in the salient criteria affecting such assessments.Originality/valueThis paper adds to the limited understanding of corporate-level decision-making with regard to pursuing venturing opportunities. More specifically, the paper adds new insights regarding how relatedness and uncertainty affect new venture opportunity assessments in the presence (or lack thereof) of slack resources.


2014 ◽  
Vol 31 (1) ◽  
pp. 30-50 ◽  
Author(s):  
Peter Magnusson ◽  
Robert Peterson ◽  
Stanford A. Westjohn

Purpose – The purpose of this paper is to explore how national cultural values affect sales collaboration directly and how it interacts with the firm's reward structure. The results are linked with firm performance. Design/methodology/approach – The conceptual framework is tested on a large sample of sales organizations across 26 countries. Due to the nested nature of the data, hierarchical linear modeling is used to test the hypothesized framework. Findings – Sales collaboration is positively related to firm performance, while individualism and masculinity are negatively related to sales collaboration. Rewards alignment leads to greater sales collaboration and is particularly important in highly individualistic and masculine societies. Practical implications – The study identifies rewards alignment as an actionable management tool to foster greater sales collaboration and, in turn, enhanced firm performance. The study suggests that this is particularly important in cultures associated with high individualism and masculinity. These two values can hinder sales collaboration within the firm, but firm practices (rewards alignment) can counter societal tendencies. Originality/value – The effects of cultural values have been neglected in prior research on sales collaboration and firm performance. The findings in this study suggest that culture is important and, at times, it can be beneficial for the organizational culture to counter the dominant national cultural values.


2017 ◽  
Vol 34 (5) ◽  
pp. 384-392 ◽  
Author(s):  
Miyuri Shirai

Purpose When communicating with consumers, firms frequently highlight their underdog status to evoke a favorable attitude. Previous research has confirmed consumer preference for underdogs over top dogs in various domains. However, very little research has been conducted on the business types and decision contexts in which underdog effects produce the most impact. This paper aims to investigate some of the unexplored boundary conditions of underdog effects and addresses two issues: consumption domain and retail crowding. Design/methodology/approach Two experiments with a 2 (biography: underdog or top dog) × 2 (consumption domain: hedonic or utilitarian) × 2 (retail crowding: adequately crowded or uncrowded) factorial between-subjects design were conducted to test hypotheses. The two experiments differ in the consumption domains and the approaches used to depict crowding conditions. Furthermore, the first experiment targeted college students and the second experiment targeted online consumer panels across various age groups. Findings Underdog effects were more easily evoked when the consumption domain was more hedonic than utilitarian. In addition, retail crowding was an informational cue for judging acceptance of underdog businesses and enhanced the evaluation when the retail environment was adequately crowded rather than uncrowded. This role of crowding was also evident for top-dog businesses when consumers perceived high risk in the businesses. Originality/value This is the first study to distinguish between hedonic and utilitarian consumption domains with underdog effects and to demonstrate a positive effect of crowding as an informational cue, indicating acceptance by other consumers.


2018 ◽  
Vol 39 (3) ◽  
pp. 326-339 ◽  
Author(s):  
Yanhong Chen ◽  
Baowei Liu ◽  
Li Zhang ◽  
Shanshan Qian

Purpose The purpose of this paper is to investigate the effect of humble leadership on employee proactive behavior. The authors propose that such effect is mediated by psychological empowerment, and identification with leader moderates the intervening role of psychological empowerment in the humble leadership-employee proactive behavior relationship. Design/methodology/approach Data were collected from 286 subordinate-supervisor dyads from 4 industries in Northern China. Hierarchical linear modeling analyses were applied to test the research model. Findings Humble leadership has a significantly positive effect on employee proactive behavior, and this effect is mediated by psychological empowerment. Furthermore, the identification with leader moderates the mediated relationships between humble leadership and employee proactive behavior via psychological empowerment. Research limitations/implications One limitation is that the data were collected cross-sectionally. Further research could conduct longitudinal research to retest the hypotheses. The present research has a number of implications. First, the authors extend humble leadership research. Second, the authors also contribute to humble leadership literature by addressing the lack of attention paid to the explanatory mechanism linking humble leader behavior to follower outcomes. Third, the authors provide a new insight into the boundary condition of humble leadership. Practical implications Managers should demonstrate more humble behaviors in their leading process to influence employees’ psychological empowerment and proactive behavior. In addition, managers should provide employees with sincere care in relation to work and life issues to produce employees’ identification with leader. Social implications Humility is a modifiable trait that individuals can increase dramatically by practice. Humble behavior is more accessible and easier to cultivate, contrary to the stable trait of humility. Besides, our results confirmed the individuals with the virtue of humility are most likely to succeed. Thus, humble behaviors should be highly advocated and encouraged in our society. Originality/value This research extends humble leadership research by constructing and verifying the theoretical model of humble leader behavior and employee proactive behavior and by demonstrating the value of humble leader behavior in a non-Western context, and identifies the different roles of psychological empowerment and identification with leader on employee proactive behavior.


2017 ◽  
Vol 11 (4) ◽  
pp. 637-657 ◽  
Author(s):  
Van Thac Dang ◽  
Chin-Shien Lin

Purpose This study aims at investigating the effect of an overall fit among strategy, environmental factors and organizational resources on firm performance, and the moderating role of industry on this relationship. Design/methodology/approach This paper uses hierarchical linear modeling to analyze the nested data structure from the financial and electronics companies in Taiwan’s stock market from 2011 to 2012. Findings The empirical results indicate that overall strategic fit is positively related to firm performance, and this relationship varies across financial industry and electronics industry. Originality/value This study provides important implications for both academic researchers and practitioners. From a theoretical aspect, this study integrates two research streams of strategic fit (external fit and internal fit) into an overall model of strategic fit, and has explored the moderating role of industry on the relationship between strategic fit and firm performance. In addition, this study has also used hierarchical linear modeling method to test the hypotheses, which has not been used in the previous strategic fit literature. From a practical aspect, the empirical results have derived implications for managers as to understand the effects of overall strategic fit on performance in different industry, which may be helpful for making decisions in specific industry context.


Author(s):  
Mark R. Mallon

Purpose Strategic transformations are likely necessary for all organizations at some point in their existence, but the role of external stakeholders in committing resources to support transformations has been largely overlooked. This paper aims to begin to fill this gap by developing a theoretical model detailing which factors increase the likelihood that financial stakeholders will commit resources to strategic transformation. Design/methodology/approach Neo-institutional and stakeholder theories are applied to the strategic transformation phenomenon to develop six propositions regarding financial stakeholders’ resource commitment to strategic transformation. Findings Moral legitimacy, pragmatic legitimacy and unfamiliarity with the firm directly affect the likelihood that financial stakeholders will commit resources to strategic transformation. Cognitive legitimacy or familiarity amplifies the positive effect of pragmatic legitimacy on resource commitment, and pragmatic legitimacy lessens the negative effect of unfamiliarity with the firm on resource commitment. Originality value This paper lays out a clear conceptual model of the antecedents of financial stakeholders’ resource commitment to strategic transformation, aiding practitioners in securing critical stakeholder support and filling an important gap in strategic transformation/stakeholder literature.


2020 ◽  
Vol 7 (1) ◽  
pp. 53
Author(s):  
Fahmi Jahidah Islamy ◽  
Tjutju Yuniarsih ◽  
Eeng Ahman ◽  
Kusnendi Kusnendi

This study aims to examine the influence of organizational culture on performance through knowledge management. The sample in this study amounted to 259 lecturers at private universities in the city of Bandung. Two-level hierarchical linear modeling (HLM) is used to analyze hierarchical structure data in this study, namely at the lecturer level as an individual and at the study program as a group level. The results showed that organizational culture had a significant positive effect on knowledge management, knowledge management had a significant positive impact on performance, and organizational culture had a positive and significant impact on performance directly or indirectly.


Author(s):  
Hussein Nabil Ismail ◽  
Adnan Iqbal ◽  
Lina Nasr

Purpose The purpose of this paper is to explore the relationship between employee engagement and job performance in the country of Lebanon, and to test whether creativity mediates the relationship between engagement and performance. Design/methodology/approach The research sample consisted of 186 respondents working in Lebanese firms. The questionnaire included established measures relating to employee engagement, job performance and creativity – in addition to various demographic questions. Stepwise multiple regression and bootstrapping methods were employed in the analysis of the data. Findings The findings showed a significant positive effect of employee engagement on job performance. However, mediation analysis using bootstrapping methods has shown that creativity has fully mediated the relationship between engagement and performance. Originality/value The study extends previous research and increases the external validity of the findings by investigating the relationship between engagement and performance in new non-western contexts. Moreover, this is one of the first research studies that explores the role of creativity in the relationship between the two variables; this helps in improving our understanding of the model and aids in enhancing the effect of engagement on performance.


2020 ◽  
Vol 28 (3) ◽  
pp. 47-48

Purpose The goal was to try to find out if workers in Iranian tourist agencies benefited from the authentic leadership (AL) of their bosses Design/methodology/approach The authors tested out four hypotheses on 216 employees of tourism agencies in the Guilan Province of Iran using a 19-item survey. Out of the 216 questionnaires sent out, they received back 173 valid responses. All four hypotheses were confirmed by the results. Findings The data suggested that authentic leadership (AL) has a significant effect on both employee performance (EP) and organizational commitment (OC). The authors said the results suggested that managers could promote OC, and therefore EP, by adopting an AL style. Originality/value The authors felt their study contributed to research by demonstrating the mediating role of OC in connecting AL to EP. It was also the first study to explore these relationships in the tourism industry in Iran, a significant part of the country's economy.


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