Effects of parental entrepreneurial performance on the mode of entrepreneurial entry by the next-generation family members: evidence from an emerging economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Watiri Muigai ◽  
Edward Mungai ◽  
S. Ramakrishna Velamuri
Keyword(s):  
Small Business ◽  
Family Business ◽  
Family Members ◽  
Business Owners ◽  
Small Business Owners ◽  
Next Generation ◽  
Content Type ◽  
Entrepreneurial Entry ◽  
Generation Family ◽  
Formal Employment

PurposeThe purpose of the paper is to examine the effects of perceived parental entrepreneurial rewards, or PPERs (i.e. the offspring's perception of the degree of parental success in entrepreneurship), on the corporate venturing (CV) mode of entrepreneurial entry and the interaction effects of family business involvement (FBI) and formal employment on the association between PPER and CV by the next-generation family members.Design/methodology/approachA survey was administered to a sample of 738 small business owners in Kenya; of which, 440 small business owners were selected because they grew up in a family business context. A probit model was used to examine the main and interaction effects.FindingsPPERs significantly influenced CV. FBI improves the positive relationship whereas formal employment reduces the effects of PPER on CV.Practical implicationsFamilies in business need to improve conversations with their children to include discussions concerning the intrinsic and extrinsic rewards of running a family business, which may shape not only the entrepreneurial entry path of their offspring but also the willingness to establish businesses that may grow and lead to continuity of the family business of origin.Originality/valueThe study investigates the effect of being embedded in a business family in shaping the CV mode of entrepreneurial entry by the next-generation family members who may not, on the one hand, find independent own founding an attractive option and for whom, on the other hand, the succession mode of entry may not be an option.

Perceived Parental Care and Next-Generation Family Members’ Succession Intentions: The Sequential-Mediating Role of General Self-Efficacy and Perceived Person-Job Fit

2021 ◽  
pp. 1-39
Author(s):  
Fei Zhu ◽  
Haibo Zhou
Keyword(s):  
Family Business ◽  
Self Efficacy ◽  
Parental Behavior ◽  
Family Members ◽  
Next Generation ◽  
Job Fit ◽  
Generation Family ◽  
Business Succession ◽  
General Self Efficacy ◽  
Family Business Succession

ABSTRACT Whereas the existing literature on the relationship between parental behavior and family business succession mainly focuses on parental behavior in the business domain, we highlight the importance of parental behavior in the family domain. Integrating attachment theory, the family business succession literature, and person-job fit literature, our study proposes a theoretical framework hypothesizing that general self-efficacy and perceived person-job fit mediate the association between perceived parental care (an underrepresented family-domain-specific parental behavior) and next-generation family members’ succession intentions. This framework is tested by data from two surveys and further verified by qualitative interviews of next-generation family members. Multivariate analysis results suggest that next-generation family members’ general self-efficacy and perceived person-job fit played a sequential-mediating role in the relationship between perceived parental care and next-generation family members’ succession intentions. Our interviews not only confirm these results but also reveal new insights, particularly into the specific Chinese context in the study of family business succession.

Comparing small business owner and voter beliefs regarding constraints on business growth

2020 ◽  
Vol 9 (3) ◽  
pp. 329-341
Author(s):  
Trey Malone ◽  
Antonios M. Koumpias
Keyword(s):  
Small Business ◽  
Policy Design ◽  
Business Owners ◽  
Entrepreneurial Activity ◽  
Primary Data ◽  
Small Business Owners ◽  
Business Owner ◽  
Linear Regression Models ◽  
Small Business Owner ◽  
Content Type

PurposeThis research note compares voter opinions regarding small business entrepreneurial activity to opinions of small business owners and links any divergence in perceptions to realized suboptimal entrepreneurial growth policy.Design/methodology/approachPrimary data collection via best–worst scaling and estimation of linear regression models.FindingsResults suggest that small business owners are less concerned about issues such as foreign competition, estate/death taxes, oil prices and labor union demands but are more concerned with domestic competition, income taxes, regulatory burdens and availability of credit from lenders.Social implicationsThe authors find major discrepancies in opinions about trade policy and business financing, which may lead to policy design that hinders entrepreneurship given evidence that politicians do respond to voters' opinions (Autor et al., 2016).Originality/valueIt represents the first empirical assessment of differences between voter and small business owner perspectives on entrepreneurial policy. An immediate policy implication includes the need to provide additional avenues of communication of entrepreneurs' concerns.

scholarly journals Are international small business owners really that different?

2019 ◽  
Vol 27 (1) ◽  
pp. 92-117
Author(s):  
Sarah Gundlach ◽  
Andre Sammartino
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Business Owners ◽  
Small Business Owners ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Individual Traits ◽  
Tolerance For Ambiguity ◽  
The Impact ◽  
Do So

Purpose The purpose of this paper is to investigate the impact of individual traits and attributes on the entrepreneurial and internationalization actions of Australian businesswomen, many of whom run small businesses. Design/methodology/approach This study is exploratory and quantitative, based on a questionnaire survey of 323 Australian businesswomen. Drawing upon the extant literature on internationalization, gender and entrepreneurship, the study explores two micro-foundational relationships of interest – personality and capability assessment differences between female business owners and their employed counterparts, and the impact of such traits and assessments on their internationalization. A further question is explored in terms of any differentials in perceptions of barriers in internationalization. Findings The findings show key personality dimensions do not differ dramatically between Australian businesswomen working in their own businesses (i.e. entrepreneurs) or as employees in organizations, while there are surprisingly few differences between women who are engaged internationally and those yet to do so. When comparing the female entrepreneurs and employees, in particular, the findings around tolerance for ambiguity and management efficacy are notably counterintuitive. This leads to the development of testable propositions to refine the causal claims in this domain. Practical implications The study calls into question the distinctiveness of entrepreneurs and entrepreneurial endeavors, at least for female businesswomen. Originality/value By including entrepreneurs and employees, women who have engaged internationally and those that are yet to do so, the study avoids some of the potential self-selection and confirmation biases inherent in studies of only entrepreneurs or small business owners. The investigation of individual traits, attributes and experiences as micro-foundations for internationalization motivations challenges existing theories of small business expansion.

Family Impacts on Emerging Ventures in Poland

1995 ◽  
Vol 8 (4) ◽  
pp. 293-300 ◽  
Author(s):  
Harold Welsch ◽  
Gerald Hills ◽  
Frank Hoy
Keyword(s):  
United States ◽  
Small Business ◽  
Family Business ◽  
New Ventures ◽  
The United States ◽  
Business Owners ◽  
Family Businesses ◽  
Small Business Owners ◽  
Emerging Democracy

This study reports the results of a survey of eighty owners of new ventures in Poland. The purpose of the survey was to assess the problems faced by small business owners and prospective small business owners in this emerging democracy. The sample was almost evenly split between family businesses and nonfamily businesses, which allowed for comparisons between family business issues in Poland and in the United States and between family and nonfamily business in Poland.

Inertia as inhibiting competitiveness in Philippine family businesses

2015 ◽  
Vol 5 (2) ◽  
pp. 257-276 ◽  
Author(s):  
Andrea Santiago
Keyword(s):  
Life Cycle ◽  
Family Business ◽  
Family Members ◽  
The Philippines ◽  
Business Owners ◽  
Family Businesses ◽  
Business Failure ◽  
Content Type ◽  
Business Operations ◽  
Practical Implications

Purpose – The failure to innovate has been recognized as one of the prime causes of business failure. In addition to this, the purpose of this paper is to explore whether it is the failure to act or inertia that can also explain the inability of family businesses to move forward. Design/methodology/approach – This research documented the experiences of five family businesses in the Philippines that were unable to sustain their business operations. Only five families were identified since it was difficult to trace the business owners of businesses that failed, and once identified, not all were willing to discuss the reason for their business failure. Findings – The cases showed that business decline actually results from the failure of family members to address the challenges brought about the change in the different life cycle dimensions. In hindsight, arresting a downward trend necessitates varied strategic approaches. While some family members may felt incapable of introducing innovation in their business, the failure to act, by itself, was a guarantee of business failure. Research limitations/implications – The research was limited to five family businesses in the Philippines. It is possible that there may be many other reasons for family business failure based on the experiences of other families. Unfortunately, many business families in the Philippines are tight-lipped about failure, even if there are lessons to be learned. Practical implications – This paper brings attention to the need of family business owners to be more proactive in meeting the changing needs of their family business. Formula that worked before may not be appropriate at a different time. Originality/value – Research has shown that there are many reasons for family business failure. This paper shows the importance of transcending the feeling of inertia so that family members can be more proactive in meeting the challenges that they are bound to face as their families, their products, their businesses, and the industries they are in, move from one stage of the life cycle to another.

Informal learning of women small business owners

2018 ◽  
Vol 60 (1) ◽  
pp. 82-103 ◽  
Author(s):  
Jalleh Sharafizad
Keyword(s):  
Small Business ◽  
Informal Learning ◽  
Learning Process ◽  
Work Experience ◽  
Business Owners ◽  
Small Sample ◽  
Formal Training ◽  
Small Business Owners ◽  
Learning Behaviour ◽  
Content Type

Purpose The purpose of this paper is to investigate women small business owners’ informal learning behaviour. There is limited qualitative research that examines women small business owners’ learning process and this study aims to address this gap. The study was driven by the following research questions: “Do women small business owners prefer informal learning to formal training?” and if so, “Why do women small business owners prefer informal learning to formal training?” and “If informal learning is preferred, what role do networking and mentoring play in this learning process?” Design/methodology/approach Semi-structured interviews were conducted with 28 Western Australian women small business owners who were recruited through purposive sampling methods. Findings The small business owners had a strong preference for informal learning. Participants used their own work experience and knowledge to start-up their businesses. A low uptake of formal training was found due to time and resource constraints and personal preferences. Participants relied on contacts within their networks to acquire knowledge or they hired others who possessed the requisite knowledge or skill. Only a small portion of participants had mentors or acted as a mentor. Research limitations/implications This study has limitations that tend to be commonly found in exploratory studies, such as a small sample size. Practical implications The research has implications for recognised training institutions that are engaged in entrepreneurship education. By gaining greater understanding of the nature of learning in small business, they may be able to offer more affordable and flexible informal courses that specifically target women small business owners, incorporate mentorship programs within their business courses by engaging with industry partners, or appoint instructors with industry contacts and experience, to provide mentoring support for these business owners. Originality/value This research responds to calls for studies aimed at developing a more nuanced understanding of the learning behaviour of women small business owners.

IT readiness in small firms

2013 ◽  
Vol 20 (4) ◽  
pp. 807-823 ◽  
Author(s):  
Riccardo Spinelli ◽  
Romano Dyerson ◽  
G. Harindranath
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
Business Owners ◽  
Small Business Owners ◽  
It Adoption ◽  
Content Type ◽  
Management Capability ◽  
And Cluster Analysis ◽  
It Application

Purpose – The aim of the paper is to explore conceptually and empirically the application of the concept of IT readiness to small firms. Design/methodology/approach – The approach taken was a questionnaire administered to small manufacturing business owners in the Liguria region of Italy. Data were analysed using factor and cluster analysis. Findings – IT readiness concept appears valid with the emergence of three constructs: strategic vision; project management capability; and IT application infrastructure. The date analysis yielded four distinctive and varying profiles of small business owners. Research limitations/implications – This quantitative study exploring a cross section of small firms suggests antecedents to change have been ignored relative to IT adoption decisions. Practical implications – Provision of policy and support services requires a much more nuanced approach to small businesses. Originality/value – There are very few studies of IT readiness in the literature, making the paper original in its intent. The construction of the IT readiness concept appears robust when subjected to empirical testing and yields a number of specific small business profiles with respect to IT.

Intra-transfer of ownership factors and external transfer of ownership effects: evidence from the Gauteng enterprising community, South Africa

2020 ◽  
Vol 14 (5) ◽  
pp. 765-785
Author(s):  
Risimati Maurice Khosa
Keyword(s):  
South Africa ◽  
Family Business ◽  
Quantitative Research ◽  
Family Members ◽  
Organisational Change ◽  
Primary Data ◽  
Next Generation ◽  
Snowball Sampling ◽  
Content Type ◽  
Internal Transfer

Purpose This paper aims to determine the perceptions of family-owned small enterprises on the external transfer of ownership and intra-transfer of ownership using empirical data. This permitted the research to successfully point out the factors that influence the internal transfer of ownership, and also, the effects of intra-transfer of ownership from a viewpoint of both family members and non-family members in small family-owned enterprises. Design/methodology/approach A quantitative research design was used to conduct this research, where primary data was gathered from a sample of 257 respondents using convenience and snowball sampling techniques. Data was collected through a survey instrument distributed via internet-based surveys (SurveyMonkey) and through a drop-off method. The gathered data was then captured, coded and analysed using Stata (version 15) statistical software. Findings The results divulged that intra or internal transfer of ownership is the preferred avenue compared to external transfer of ownership. This is because, when a family business is transferred to the next generation, it presents some benefits to family members working in the business and to the family at large. As a result, the empirical results show that factors that influence the internal transfer of ownership include: favouritism; security, stability and growth; a formal and structured succession plan. Business improvement and organisational change are then the effects of external transfer ownership. Although these effects make business sense, family members will advocate for internal transfer of ownership for them not to lose the benefits that come with the internal transfer of ownership. Research limitations/implications This paper adds to the current family business research in South Africa, thus reducing the shortage of such research. Moreover, the paper proposes further research that will provide tested, practical and detailed guidelines of survival in the next generation. Practical implications The paper empirically highlights the perils of selecting a successor based on favouritism rather than merit and possible consequences, thereby assisting those involved in family enterprise succession to make an informed decision when choosing a successor. Originality/value This research paper provides empirical evidence of the internal transfer of ownership factors and external transfer of ownership effects from a South African perspective.

Owner-employee relations in small firms

2015 ◽  
Vol 30 (7) ◽  
pp. 832-846 ◽  
Author(s):  
Filotheos Ntalianis ◽  
Linda Dyer ◽  
Christian Vandenberghe
Keyword(s):  
Small Business ◽  
Organizational Behavior ◽  
Small Firms ◽  
Negative Relationship ◽  
Business Owners ◽  
Small Business Owners ◽  
Relational Contracts ◽  
Initial Attempt ◽  
Content Type ◽  
Relational Contract

Purpose – The purpose of this paper is to shed light on the type of exchange relationship that small business owners establish with their employees. In particular, this study examines how the personality trait of “conscientiousness” among small business owners relates to relational “psychological contracts,” breach and violation that develop between owners and employees. Design/methodology/approach – This was a quantitative survey design conducted in Canada. Participants were 253 employees and the 50 small firm owners for whom they worked. Findings – Results indicate that owner conscientiousness was positively associated with a relational psychological contract with employees and perceived breach mediated a negative relationship between owner-rated relational contract obligations and feelings of contract violation among employees. Owner-rated relational contract obligations also mediated a negative relationship between owner conscientiousness and employee perceptions of breach and violation. Practical implications – Given the link between conscientiousness and relational contracts, small business owners who get involved in selection and training ought to present to the newly hired employees an accurate picture of their role and job requirements in order to create successful organizations. In addition, less conscientious business owners, through training, should try to develop further skills, such as goal setting and performance appraisal, in order to increase their ability to establish effective relationships (i.e. relational contracts). Originality/value – The current study is an initial attempt toward a better understanding of exchange relationships in small firms, thus strengthening the links between organizational behavior and small business research. It also contributes a quantitative perspective on issues that have typically been explored qualitatively.

scholarly journals The impact of personal attitudes on the growth ambitions of small business owners

2017 ◽  
Vol 24 (4) ◽  
pp. 850-862 ◽  
Author(s):  
Paul Braidford ◽  
Ian Drummond ◽  
Ian Stone
Keyword(s):  
Small Business ◽  
Critical Realism ◽  
Business Owners ◽  
Perceived Barriers ◽  
Small Business Owners ◽  
Business Growth ◽  
Content Type ◽  
Personal Attitudes ◽  
Small Business Growth ◽  
The Impact

Purpose The purpose of this paper is to provide an empirical evidence in support of widespread calls for new approaches to understanding small business growth, by exploring the use of non-positivist methods (e.g. critical realism) to analyse how owners’ innate dispositions shape growth in practice. Design/methodology/approach In 2014, a telephone survey was used to inform two focus groups and 29 in-depth interviews with small business owners throughout England, covering attitudes towards growth, the use of particular strategies and perceived barriers. Discourse analysis was used to develop a multi-layered explanatory model incorporating key ideas from critical realism and the work of Bourdieu. Findings Bourdieusian analysis reveals the existence of orientations among small business owners towards or against business growth. Such attitudes tend to impact upon their response to perceived barriers. Growth-inclined owners were willing to strategise for long-term benefit, in return for lower returns in the short term. Growth-resistant owners were more likely to view obstacles as absolute, stating that they cannot grow their firms as a result. Practical implications Removing or reducing obstacles may not encourage growth if motivations and attitudes of owners do not change to embrace more growth-oriented positions. Banks’ lending practices, for example, were seen by many as problematic, but growth-oriented owners were more willing to seek and use alternatives to raise funds for growth. Originality/value The authors suggest that entrepreneurship researchers should look beyond positivist research to epistemologies that provide more multi-layered modes of explanation.

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