Do new ventures benefit from strategic change or persistence? A behavioral perspective

2016 ◽  
Vol 29 (2) ◽  
pp. 310-319 ◽  
Author(s):  
Safal Batra
Keyword(s):  
Emerging Economies ◽  
Strategic Change ◽  
New Ventures ◽  
Linear Regression Analysis ◽  
Business Environment ◽  
Resource Scarcity ◽  
Sustainable Competitive Advantage ◽  
Content Type ◽  
Behavioral Perspective ◽  
Formative Years

Purpose – Is change always the best alternative? While large and established firms are believed to benefit from strategic flexibility and change, the purpose of this paper is to argue and empirically prove that firms in emerging economies need to persist with their strategies during their formative years in order to acquire sustainable competitive advantage. The author explores these relationships from a behavioral perspective. Design/methodology/approach – Data were collected from 103 Indian new ventures. Multiple linear regression analysis was applied to test the hypotheses. Findings – The findings reveal that persisting with the existing strategies is the most optimal way of surviving and growing in the initial years of a venture operating in the turbulent business environments of emerging economies. Radical shifts in strategic postures can, indeed, be fatal for new firms. Research limitations/implications – The findings are based on data from one emerging economy. Further exploration of these relationships in other setups can help in better understanding of the execution of strategic persistence and change. Practical implications – Given the frequent changes in the business environment and resource-scarcity of new ventures in emerging economies, firms that persist with their strategies during the formative years are more likely to succeed. Originality/value – Limited attempt has been made to integrate strategic and behavioral perspectives in the change literature. In this study, the author brings in the contingent role of founder’s personality to better understand the possible contingencies in the strategic change literature.

scholarly journals Motivation of female entrepreneurs: a cross-national study

2019 ◽  
Vol 26 (5) ◽  
pp. 684-705 ◽  
Author(s):  
Marina Solesvik ◽  
Tatiana Iakovleva ◽  
Anna Trifilova
Keyword(s):  
Emerging Economies ◽  
New Ventures ◽  
Primary Data ◽  
National Study ◽  
Research Approach ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Business Outcomes ◽  
The Social ◽  
Different Levels

Purpose This paper focuses on the motivation of females to start businesses in developed and emerging economies. Although the issues related to the motivation of entrepreneurs have been widely studied, there are a few studies focusing on the differences in women’s entrepreneurial motivation in countries with different levels of market economy development. Furthermore, existing studies on female founders mainly adapt the concepts that have often been developed in male-dominated paradigm. The purpose of this paper is to explore in depth motivations of female entrepreneurs in different contexts and discover the dissimilarities in women’s entrepreneurial motivations in countries with different levels of economic development. Design/methodology/approach The qualitative research approach is applied in this study to explore the social-driven and profit-driven motives of female entrepreneurs. The authors have employed purposeful sampling to select cases. The authors investigated the motivations of 45 female entrepreneurs in Norway (12), Russia (21) and Ukraine (12). Semi-structured interviews were used to collect primary data. The authors have also triangulated the data collected from interviews with the data available on the internet, company reports and newspaper publications. Findings The findings indicate that women often pursuit business opportunities to satisfy social needs, rather than focusing on traditional business outcomes such as growth or profit. However, different contexts – the emerging economies context of Russia and Ukraine and the developed one of Norway – seem to influence the motivation to establish new ventures differently. The study found a stronger desire to contribute to a society’s needs among female founders in Norway compared to their counterparts in Russia and Ukraine. This indicates that cultural and social context in developed countries, such as in Norway, probably provides more possibilities for female entrepreneurs for self-realisation elsewhere leaving more room for focusing on societal issues in business in comparison with emerging countries contexts. Originality/value A novel conceptual contribution is the exploration of links between the social-driven and profit-driven motives of female entrepreneurs in emerging and developed economises. The study also adds to debates relating to context embeddedness of smaller firms.

Performance-oriented factors for women entrepreneurs – a scale development perspective

2018 ◽  
Vol 10 (2) ◽  
pp. 329-360 ◽  
Author(s):  
Pooja Jha ◽  
Munish Makkad ◽  
Sanjiv Mittal
Keyword(s):  
Emerging Economies ◽  
Women Entrepreneurs ◽  
Performance Enhancement ◽  
Holistic Approach ◽  
Structured Interview ◽  
Business Environment ◽  
Content Type ◽  
Regulatory Bodies ◽  
Performance Dimensions ◽  
Women Entrepreneur

PurposeThe purpose of this study is to conceptualize, develop and validate a scale reflecting performance dimensions of women entrepreneurs. The study intends to address the important aspects of women entrepreneur such as identifying factors influencing performance of women entrepreneur in emerging economies including India, and to develop a reliable and valid scale for measuring performance from women entrepreneurs’ perspective, which will help to explain the phenomena of entrepreneurship among women by using a holistic approach.Design/methodology/approachIn-depth literature reviews were conducted to identify manifest item measuring the latent scale dimensions. Semi-structured interview with women entrepreneurs also contributed toward item generation. A total of 1,032 valid and usable questionnaires were used for the final statistical data analysis. Exploratory factor analysis (EFA) also conducted to confirm factors-item composition considered for the study.FindingsA final scale comprising six dimensions of entrepreneurial performance has been developed. These dimensions are business environment, motivation (pull/push), training and skill development, networking and market information, socio–cultural and financial. Dimensions are reflecting perception of women entrepreneurs on performance. Psychometrically properties of the proposed scale were tested and the model fitness was established through CFA.Research limitations/implicationsThe proposed scale will be beneficial for both existing and nascent entrepreneurs toward gaining awareness regarding what accounts for their performance enhancement in the respective ventures undertaken. At the same time, the finding carries implications for regulatory bodies and policymakers as well, which are engaged in drafting guidelines catering to the development of women entrepreneurship in respective economies.Originality/valueThe authors believe that the proposed scale offers superior ability to explain factors that affect the performance of women entrepreneurs in emerging economies such as India.

Keeping the business afloat

2016 ◽  
Vol 8 (2) ◽  
pp. 216-220
Author(s):  
Max Menkiti ◽  
Trevor Ward
Keyword(s):  
Emerging Economies ◽  
Hospitality Industry ◽  
Business Environment ◽  
Extensive Experience ◽  
Business Decisions ◽  
Content Type ◽  
Informal Interview ◽  
The Uk ◽  
Boutique Hotels ◽  
Start Ups

Purpose The purpose of this paper is to provide first-hand experiences of running a hotel business in Nigeria from the perspective of an entrepreneur. Design/methodology/approach An informal interview was carried out via email. Max Menkiti is an entrepreneur in the hospitality industry with extensive experience in bootstrap start-ups and operations in the UK and Nigeria. He is currently the Director of Millennium Apartments and Studios in Lagos. Before that, he developed and operated the @venue series of boutique hotels. Max has over 11 years experience in the hospitality industry in Nigeria. Findings The interview offers valuable insights for researchers in hospitality industry entrepreneurship so as to understand the rationale for business decisions. Originality/value The backdrop for this paper is the business environment in Nigeria. The transcript makes available an insider’s view of the number and form of issues that entrepreneurs face in emerging economies.

Choice of an authoritative style when implementing a survival urgency-based strategic change

2017 ◽  
Vol 10 (2) ◽  
pp. 168-186 ◽  
Author(s):  
Maheshkumar Joshi ◽  
Sanjeev Jha
Keyword(s):  
Organizational Commitment ◽  
Strategic Management ◽  
Middle Managers ◽  
Strategic Change ◽  
Business Environment ◽  
Future Research ◽  
Organizational Survival ◽  
Content Type ◽  
Method Bias

Purpose Extant research suggests that managing strategic change has become a key managerial function and this duty encompasses changes in organizational product-market boundaries and organizational structure among many related organizational activities. The need to achieve strategic change arises because of major shifts in the external environment and the subsequent need for the organization to remain viable and competitive in the changed environment. Therefore, the purpose of this paper is to investigate if middle managers are likely to adopt authoritative style while implementing strategic change when they sense organizational survival. Design/methodology/approach “Sensemaking” literature led to development of the authors’ hypotheses and these were tested using the responses of 117 middle managers. The authors used survey-based instrument to collect data and used regression analysis to explicate the responses of the middle managers. Findings Results indicate that when middle managers sense that the survival of the organization is at stake, they are likely to choose an authoritative style. The authors also investigated the moderating role of organizational commitment, strategic posture of the top management team, and hostile business environment on the relationship between perception of survival urgency and the choice of authoritative implementation style. Only organizational commitment moderates this relationship. Research limitations/implications The authors’ data collection was survey based and the authors used a single source for each questionnaire and this process may lead to possibilities of mono-method bias. However, steps were taken to reduce the resultant mono-method bias. The respondents are from a variety of industries and future research may focus on one specific industry. Practical implications The first implication of this study allows us to expand research focus on the adoption of authoritative style, a research area that is not explored very much. The second implication of the study is that middle managers tend to focus on their emotions when it comes to implementing strategic changes. Using arguments from sensemaking the authors show that the perception of need for survival or the perception that business environment is hostile will determine how strategic change could be implemented. Middle managers must be treated as more than just the implementers of the directives/fiats/orders/edicts that originate from the top. Social implications Role of middle managers in strategic change management is critical and the authors suggest that the perception of organizational survival at risk leads to choice managerial style by middle managers. Originality/value The authors have combined ideas from both the strategic management and organizational development fields to understand successfully the implementation of strategic change in a survival urgency situation. In the past, the strategic management literature focused primarily on understanding strategy formulation process, and the process of implementation was generally neglected. The respondents are from a variety of industries. The analysis indicate that membership to any one firm was not impacting the results obtained by the authors and as such allows for results to generalized.

Digital commerce in emerging economies

2015 ◽  
Vol 10 (4) ◽  
pp. 634-647 ◽  
Author(s):  
Ather Akhlaq ◽  
Ejaz Ahmed
Keyword(s):  
Technology Acceptance ◽  
Emerging Economies ◽  
Online Survey ◽  
Online Shopping ◽  
Emerging Market ◽  
Business Environment ◽  
Ease Of Use ◽  
Perceived Usefulness ◽  
Convenience Sample ◽  
Content Type

Purpose – More research is needed to understand the online shopping behaviors and intentions of consumers in emerging economies. The purpose of this paper is to examine the extent to which key variables from the Technology Acceptance Model (perceived usefulness (PU) and ease of use (PEOU)), and others theoretically associated with digital engagement (distrust, perceived risk (PR), perceived enjoyment (PE) and legal framework (LF)), accounted for variation in online shopping intentions in Pakistan, focussing on affiliates of a large metropolitan university. Design/methodology/approach – Online survey using a convenience sample of university staff, students and alumni recruited through the university’s online network. A questionnaire capturing the above constructs was tested for content validity and reliability prior to dissemination. The survey results were factor analyzed to determine the degree to which the constructs were independent, and regression was used to examine their ability to predict online purchasing intentions. User characteristics were analyzed descriptively. Findings – All six independent factors, PU, PEOU, PR, PE, distrust and LF, in the model were independently predictive of intention to shop online and supported the theoretical model by demonstrating the predicted direction of the relationship. Research limitations/implications – There are limitations in the generalizability of the findings. Most of the data being collected were only from Karachi, the biggest metropolitan city and the business hub of Pakistan. Practical implications – This research may help retailers in becoming e-tailers. The model would also help existing e-tailers to streamline their business according to the research findings. In addition, government may work on policies to provide a better online business environment to the people of Pakistan. Originality/value – A new online shopping model has been discovered for an emerging market, Pakistan. Developing countries could take advantage of this model to get real insights of their e-tailing industry.

A matrix model towards CSR – moving from one size fit approach

2019 ◽  
Vol 12 (2) ◽  
pp. 243-255 ◽  
Author(s):  
Saju Jose ◽  
Krishna Venkitachalam
Keyword(s):  
Rural Communities ◽  
Matrix Model ◽  
Emerging Economies ◽  
Low Income ◽  
Business Environment ◽  
Rapid Expansion ◽  
Future Research ◽  
Global Business ◽  
Content Type ◽  
The Matrix

Purpose Corporate social responsibility (CSR) research is often dominated in a western context. Perhaps, with the rapid expansion of organisations in the context of emerging economies, there is a pressing need for the development of a new dimension. Organisations operating in emerging markets must address the social challenges of serving low-income consumers and rural communities as part of their CSR strategy. The next era of CSR should look out for a period of experimentation and innovation as organisations advance their core business objectives by addressing existing social and environmental issues, which are dependent on market and industry settings. The purpose of this paper is the requirement of careful considerations when formulating the CSR framework for different industries and markets in the global business environment and this is the focus in this paper. Design/methodology/approach The paper provides a review and certain limitations of the literature on the highly cited works such as stakeholder theory and Carroll’s pyramid model. Following on, the proposed matrix model, related discussion of the four phases and associated propositions are explained in the paper. Finally, some concluding remarks on the need for a new look on CSR in the context of non-western markets are presented. Findings In this paper, the authors introduce “The matrix model of CSR” as a starting attempt and a guideline in formulating the CSR approach across industry and countries, particularly illustrating in the context of diverse organisations in different sectors. However, this model is at a conceptual level and future research could allow empirical testing and refinement of the “matrix model” in different market and industry conditions. Originality/value A CSR model for multiple organisational contexts would provide more insight for the relevant stakeholders regarding their CSR activities. Thus, this article attempts to suggest a CSR matrix model and it takes a phased approach by classifying the CSR activities based on the degrees of CSR and altruistic nature of activities that could be adapted for other industries as well as emerging economies.

scholarly journals Understanding the characteristics of the growth of SMEs in B-to-B markets in emerging economies: an organizational ecology approach

2014 ◽  
Vol 29 (4) ◽  
pp. 295-303 ◽  
Author(s):  
Patricia R. Todd ◽  
Raj G. Javalgi ◽  
David Grossman
Keyword(s):  
Emerging Markets ◽  
Emerging Economies ◽  
Resource Availability ◽  
Organizational Ecology ◽  
Business Environment ◽  
Growth Patterns ◽  
Growth Strategy ◽  
Business Practices ◽  
Content Type ◽  
India And China

Purpose – The aim of this paper is to focus on the determinants that impact the growth of SMEs in B-to-B markets in emerging economies. The objective is to apply the classic model of organizational ecology to examine the characteristics of growth patterns in the B-to-B environment for SMEs in emerging markets, specifically India and China. Application of the model can guide SMEs owners/managers in their effort to successfully expand internationally in turbulent markets characterized by competitive and technological intensity. Design/methodology/approach – An overview of the basics of the organizational ecology model is presented, followed by the description of various economic drivers of B-to-B markets in India and China. The integration of the organizational ecology model and the strategic development of methods to deal with specific challenges of entering international markets are discussed. The paper concludes with managerial implications and suggestions for future research. Findings – Businesses operating in emerging markets face many of the same roadblocks concerning efficiencies, increasing competition, and the need for capital, that are experienced by businesses throughout the world, however, they also face challenges unique to the developmental nature of the country environment. Ecological models can be used to understand the dynamics between resource utilization and growth. Practical implications – The ecology-based view evaluates the utilization of resources with a focus on how changes in resource availability impact the international growth strategy of the B-to-B firm in India and China. These two economies represent a large business environment, generally underdeveloped with regards to taking advantage of potential resource availability. Originality/value – While the significant economic contribution of SMEs is well understood, their business practices in emerging economies have not been extensively studied, especially in the B-to-B arena. The goal here is to stimulate the development of new insights for managing the complex relationships between the B-to-B SMEs, organizational ecology, and the international environment in emerging markets. This study extends the literature concerning factors that impact business success in important emerging markets such as India and China.

Motives and competitive assets of Pakistani international construction contracting firms

2014 ◽  
Vol 19 (2) ◽  
pp. 138-151 ◽  
Author(s):  
Ahsen Maqsoom ◽  
Chotchai Charoenngam
Keyword(s):  
Emerging Economies ◽  
Service Sector ◽  
Home Country ◽  
Business Environment ◽  
Future Research ◽  
Content Type ◽  
International Experiences ◽  
The Impact ◽  
Country Specific ◽  
Construction Contracting

Purpose – This paper aims to study the impact of a firm’s size and international experience on its internationalization because it remains an under-researched area. Using an integrated theoretical approach, this study examines the motives and (firm-specific and home country-specific) competitive assets, that enable the internationalization of Pakistan-based construction contracting firms (CCFs) having varied sizes and international experiences. Design/methodology/approach – Data were collected through a postal questionnaire survey. A comparative analysis of these data was undertaken for firms of varied sizes and international experiences. Findings – Findings show that firms of varied sizes did not concur over several firm-specific and home country-specific competitive assets, whereas firms of varied international experiences were in disagreement over fewer motives and home country-specific competitive assets. Small CCFs need to overcome weakness in their firm-specific competitive assets, especially international reputation and internationally experienced management. Government and home country support are needed to promote internationalization of emerging economies’ CCFs, especially younger and smaller ones that are more vulnerable due to an unstable business environment and lack of opportunities in domestic markets. Research limitations/implications – The firms included in this study represent only one service sector, i.e. the emerging economy scenario of Pakistan’s construction industry. Future research may be conducted with a deeper analysis of the differences between emerging and developed economies’ CCFs as well as other service sectors. Originality/value – The study will be helpful to those CCFs from emerging economies which are considering whether or not to internationalize and, to the regulatory bodies helping create a level playing field to nurture the internationalization process for their CCFs.

Institutionalization to internationalization

2018 ◽  
Vol 31 (2) ◽  
pp. 241-264 ◽  
Author(s):  
K.S. Redding ◽  
En Xie ◽  
Qingqing Tang
Keyword(s):  
Emerging Economies ◽  
Business Strategy ◽  
Research Question ◽  
Business Environment ◽  
State Ownership ◽  
Global Market ◽  
Exploratory Research ◽  
Outward Fdi ◽  
Content Type ◽  
Development Indicators

Purpose The purpose of this paper is to examine the most interesting research question of the past decade – What Lures the Bears? Leveraging the public sector management and international business strategy literature, the paper first presents an overview of the transformational dynamics of state-owned enterprises (SOEs) in three major phases – institutionalization, privatization, and corporatization, and internationalization. Then, it analyzes geographic patterns and industry trends of the outward foreign direct investment (FDI) projects announced by SOEs over an eight-year period. Design/methodology/approach Grounded in the exploratory research such as inductive and deductive logic, the study proposes theoretical constructs, and discusses several findings based on the data accessed from highly cited archival sources, such as the UNCTAD FDI stat/WIRs, the World Development Indicators, Doing Business Report, Global Competitiveness Report, the Index of Economic Freedom, the Academic Ranking of World Universities, and the Fortune Global 500. Findings Based on an analysis of global market trends (a sample of over 20 countries and five industries), the study highlights that SOEs from Asia and Europe have been greatly expanded into developed markets, thus to secure natural resources, to acquire strategic assets like technology, and to leverage the developed financial markets and better investment environment. Therefore, SOEs’ outward FDI strategy and overseas performance was driven by institutional transitions, resource security, home market development and government legitimacy may contribute to the competitive advantage of their home country. Practical implications The study offers several implications for the policymakers of the governments in emerging economies and bureaucratic management of SOEs. It recommends that state ownership pattern and bureaucratic system of SOEs need to be reexamined, revised, and corporatized in the changing dynamics of the multinational business environment, thus to secure resources, acquire technological know-how, and compete in home and global markets. Originality/value As a response to academic calls on the globalization, performance and governance mechanisms of SOEs in and out of emerging economies, this paper draws a unique presentation of the transformational dynamics of SOEs – establishment to internationalization.

Fostering sustainability: reinventing SME strategy in the new normal

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meng Kui Hu ◽  
Daisy Mui Hung Kee
Keyword(s):  
Competitive Advantage ◽  
Business Strategy ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Sustainable Competitive Advantage ◽  
Holistic View ◽  
Resource Based View ◽  
New Normal ◽  
Content Type ◽  
Subsequent Performance

Purpose This paper aims to deliberate the significant impacts caused by the COVID-19 pandemic on small and medium enterprises (SMEs). It also discusses SMEs’ practical approaches to capitalise on the renewed opportunity in the new normal by expanding their businesses regionally and globally. This paper also discusses the tactical and strategic interventions SMEs need to take to charge forward. Design/methodology/approach The resource-based view of the firm (Barney, 1991) is used to explain how SMEs develop a sustainable competitive advantage in the new normal. The resource-based view focuses on the link between strategy and firm internal resources. Drawing from the resource-based view of the firm, internal analysis of the resources that are regarded as sources of competitive advantage controlled by the SMEs is imperative in today’s business environment. Based on the resource-based view theory, this paper focuses on reinventing SME’s strategies in the new normal to foster sustainability. Findings Post-COVID-19 pandemic, SMEs must essentially be dynamic, forward-looking and transformational in capturing the regional and global markets’ opportunities. They need to sharpen their internal competencies and realign their effective business strategy in seizing the vast opportunities in the international markets. Practical implications How SMEs respond to COVID-19 has important implications for subsequent performance in the new normal. This study focuses on the different potential SMEs’ reactions to COVID-19 and how their strategy affects SMEs performance and fosters sustainability in the new normal. Social implications The sustainability of SMEs is critical for the nation’s socio-economy. This study offers a holistic view of how SMEs respond to their challenges and help them choose the right business options. Originality/value This paper’s contents are solidly based on accumulated evidence, observation and critical arguments on the impacts caused by the COVID-19 pandemic that caused numerous challenges faced by the SMEs, with a specific focus on SMEs operating in Malaysia.

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