The relationship between growth and volatility in small firms

2014 ◽  
Vol 52 (8) ◽  
pp. 1516-1532 ◽  
Author(s):  
Ana Maria Moreno ◽  
Jose A. Zarrias ◽  
Jose L. Barbero
Keyword(s):  
Small Firm ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Small Firms ◽  
Quantitative Information ◽  
Similar Nature ◽  
Firm Level ◽  
Content Type ◽  
The Relationship ◽  
Environmental Hostility

Purpose – The purpose of this paper is to investigate the effect of predictors of growth (entrepreneurial orientation (EO) and environmental hostility) and growth itself on small-firm volatility. The objective is to find out: first, whether growth and volatility possess a similar nature; second, what are the predictors of small-firm volatility. Design/methodology/approach – Questionnaire data were collected from CEOs of 433 Spanish small firms (<500 employees) who provided qualitative as well as quantitative information. Findings – The authors find that some of the predictors on growth can also be used to predict firm volatility. Specifically, the authors find that firm volatility is influenced by EO and environmental hostility. Growth also influences firm volatility. The authors also find a strong interaction effect of growth and firm size on firm volatility. The authors conclude that although growth and firm volatility are related concepts, they are different. Originality/value – Growth has concentrated small-firm research during the last 20 years. However, during the last few years, the environment has become very dynamic and small firms need research helping them to deal with such dynamism. There are few studies on firm-level volatility. The research helps understand more the determinants of small-firm volatility.

HR signals in the context of HRM-firm performance relationship: development of a conceptual framework

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiradip Bandyopadhyay ◽  
Kailash B. L. Srivastava
Keyword(s):  
Firm Performance ◽  
Human Resources ◽  
Conceptual Model ◽  
Design Methodology ◽  
Relationship Development ◽  
Firm Level ◽  
Content Type ◽  
Factors Affecting ◽  
The Relationship

PurposeThe purpose of this paper is to reframe human resources' (HR) systems and practices as HR signals drawing from conceptualizations of signals. The construct of the strength of signal is developed to quantify the attributional ability of HR signals. To examine the role of HR signals in influencing employee behaviours and firm performance, human resource management (HRM)-firm performance relationship is considered as a framework to develop a firm-level conceptual model which integrates factors affecting HR signals and its consequences.Design/methodology/approachThe paper examines the existing literature on the relationship between HRM and firm performance. In the process, the paper considers the concept of HR signal and makes a case for the strength of HR signal. Finally, the paper offers a conceptual model in order to link the antecedents and consequents of HR signals.FindingsThe paper offers a conceptual model to address the gaps in the relationship between HRM and firm performance. It also brings into focus an understanding of HRM as signals and its importance in understanding firm performance.Originality/valueThe paper enriches the existing literature by examining HRM as HR signals. It adds to the literature by considering the attributional ability of HR, through the construct of the strength of HR signals.

Firm-level participative leadership and individual-level employee ambidexterity

2019 ◽  
Vol 40 (5) ◽  
pp. 561-582 ◽  
Author(s):  
Yi-Ying Chang ◽  
Che-Yuan Chang ◽  
Chung-Wen Chen ◽  
Y.C.K. Chen ◽  
Shu-Ying Chang
Keyword(s):  
Social Support ◽  
Design Methodology ◽  
Personal Identification ◽  
Participative Leadership ◽  
Firm Level ◽  
Content Type ◽  
Individual Level ◽  
Technology Firms ◽  
Top Manager ◽  
The Relationship

Purpose The purpose of this paper is to examine if personal identification could explicate the black box between participative leadership and employee ambidexterity. Also, the authors aim to explore how and why the top-down effects of higher-level leadership styles affect lower-level outcomes. Design/methodology/approach The authors collected multilevel and multisource data from top manager teams, and unit managers and employees of research and development, marketing and sales, and operations from Taiwanese technology firms. Findings The results revealed that individual-level personal identification partially mediated the relationship between firm-level participative leadership and individual-level employee ambidexterity, and individual-level coworker social support moderated the effect of firm-level participative leadership on individual-level employee ambidexterity through individual-level personal identification. Originality/value This paper demonstrated the importance of participative leadership and personal identification. It contributed to profound comprehension for potential mechanisms of individual-level personal identification and an enhancer of individual-level coworker social support why and how affects firm-level participative leadership on individual-level employee ambidexterity.

scholarly journals Impact of founder CEO and CEO ownership on entrepreneurial orientation, moderating role of CEO narcissism

2019 ◽  
Vol 13 (2) ◽  
pp. 153-167 ◽  
Author(s):  
Aiza Shabbir ◽  
Shazia Kousar
Keyword(s):  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Sampling Method ◽  
Content Type ◽  
Validated Questionnaires ◽  
Direct Association ◽  
Ceo Narcissism ◽  
The Relationship ◽  
Moderating Role

Purpose This study aims to explore the moderating impact of narcissism overload on the relation between founder CEO and entrepreneurial orientation (EO) in registered private schools of Pakistan. Design/methodology/approach Data were collected through a stratified random sampling method with the help of previously validated questionnaires. A sample of 121 replies was gathered for analysis. SPSS has been used to find the results. Findings Results depict that CEO narcissism moderates the relation between founder CEO and EO and does not moderate the relationship between and CEO ownership and EO. Originality/value Many studies focused on the founder personality characteristics (such as generalized self-efficacy or locus of control) are not directly observed, but rather inferred their effect indirectly. The study contributes to examine how the founder CEO variable interacts with CEO personality to influence EO. This study will propose a practical approach to investigate whether and how the narcissism constructs moderate the founder CEO–EO relationship. Direct association between stock ownership and EO will also be examined.

The relationship between individual entrepreneurial orientation (IEO) and entrepreneurial bricolage: exploring passion and perseverance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeed Mohammadi
Keyword(s):  
Regression Analysis ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Hierarchical Multiple Regression ◽  
Content Type ◽  
Postgraduate Students ◽  
Individual Entrepreneurial Orientation ◽  
New Business ◽  
Entrepreneurial Bricolage ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between individual entrepreneurial orientation (IEO) and bricolage behavior, considering the two emerging dimensions of IEO measurement: passion and perseverance. Design/methodology/approach A total of 187 postgraduate students who have recently started a new business were selected as the research sample. This study aimed to explore the multidimensional perspective of the new IEO construct. Hierarchical multiple regression analysis was applied to examine the hypotheses. Findings The results show that along with the enactment of traditional dimensions of IEO, examining the newly introduced dimensions illustrates a distinguished explanation of IEO in resource-scarce environments and leads to a development in entrepreneurial bricolage. Originality/value This study examined the IEO construct with two emerging dimensions of IEO measurement: passion and perseverance. This IEO construct is primarily associated with individual behavior and declares bricolage behavior more effectively.

The dynamics between balanced and combined ambidextrous strategies: a paradoxical affair about the effect of entrepreneurial orientation on SMEs’ performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Delly Nofiani ◽  
Nurul Indarti ◽  
Andy Susilo Lukito-Budi ◽  
Hardo Firmana Given Grace Manik
Keyword(s):  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Content Type ◽  
External Resources ◽  
External Resource ◽  
Relevant Situation ◽  
Mediating Factor ◽  
The Relationship ◽  
Practical Implications ◽  
Structured Questionnaire

PurposeThis study aims to provide empirical findings of the extent to which the ambidexterity found in innovation and social networks will mediate the relationship between entrepreneurial orientation (EO) and firm performance (FP). This study also compares the ambidextrous strategy between the balanced dimension (BD) and combined dimension (CD) and examines their contribution to the small- and medium-sized enterprises (SMEs’) performance.Design/methodology/approachThe current study used an explanatory research design by surveying a total of 205 fashion firms’ owners/managers in Yogyakarta, Indonesia, using a semi-structured questionnaire. Path analysis with mediating tests and independentt-tests were used.FindingsThe results revealed that innovation and social network ambidexterity mediate the relationship between EO and the SMEs’ performance. One ambidextrous strategy, the BD strategy, is superior to the CD one. The study makes an interesting discovery: the CD strategy apparently dominates FP when EO does not exist.Practical implicationsThe study suggests that no ambidextrous strategy (i.e. BD and CD) used by the SMEs can fit all situations. In detail, the study provides four different strategies for SMEs to build organizational ambidexterity, namely, innovate and sustain; elevate; expand; and collaborate and survive. It is also suggested that the SMEs consider two main principles when dealing with an ambidextrous strategy, “anything that is too much is not always good” and “one size does not fit all.” By doing so, the SMEs are expected to be able to use internal and external resources and choose the most appropriate ambidextrous strategy to respond to the relevant situation (e.g. the changes of consumer behavior due to the COVID-19 pandemic).Originality/valueUsing a dynamic capability approach by integrating two perspectives, i.e. the internal (resource-based theory) and external (resource-dependency theory) perspectives, makes the study relevant and valuable to better understand the role and type of ambidexterity among SMEs as a mediating factor between EO and FP. This paper breaks new ground by confirming a paradoxical phenomenon concerning organizational ambidextrous practices within SMEs. Additionally, four strategies for ambidextrous were developed to respond to the anomaly.

The relationship between the manager and growth in small firms

2009 ◽  
Vol 16 (4) ◽  
pp. 586-598 ◽  
Author(s):  
Svante Andersson ◽  
Joakim Tell
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Firm Growth ◽  
Policy Implications ◽  
Special Focus ◽  
Managerial Behavior ◽  
Content Type ◽  
Top Manager ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to improve the understanding of the relationship between the manager and growth in small firms, through a review of earlier research.Design/methodology/approachA review of articles published during the last 25 years is carried out in order to answer the question: How does the top manager influence growth in small firms?FindingsThree key relationships are identified: between growth and, respectively, managerial traits and characteristics, managerial intentions, and managerial behavior or roles. The diverse findings in the literature are contradictory and give a paradoxical picture of the impact of the manager. A deeper analysis of the results from the review, supplemented with leadership theory, yields a better understanding of small‐firm growth with a special focus on the behavior of the manager.Research limitations/implicationsThis paper problematizes the complexity in managing small‐firm growth, and can be further empirically validated by using multiple methods including qualitative ones such as observational studies.Practical ImplicationsThe findings have a bearing on education and policy implications. If a behavior can be identified that promotes small firms' growth, education and policy implications can be developed in line with these results.Originality/valueIn small firms there seems to be a general consensus that managers do influence the performance of small firms, but so far there has not been a systematic review of earlier empirical research, that is done in this paper. From this review, a more complete picture of how managers influence growth in small firms is presented.

scholarly journals Resource organization and firm performance

2016 ◽  
Vol 22 (4) ◽  
pp. 466-484 ◽  
Author(s):  
Jim Andersén ◽  
Joachim Samuelsson
Keyword(s):  
Decision Making ◽  
Entrepreneurial Orientation ◽  
Design Methodology ◽  
Empirical Investigation ◽  
Two Dimensions ◽  
Resource Based View ◽  
Content Type ◽  
Resource Organization ◽  
The Relationship ◽  
Positive Effect

Purpose – The purpose of this paper is to examine how entrepreneurial orientation (EO) and the use of management accounting practices (MAPs) in decision making affects the profitability of small- and medium-sized enterprises (SMEs), and also to analyze the extent to which EO and the use of MAPs affects profitability differently in growing and non-growing SMEs. Design/methodology/approach – The paper employs an empirical investigation which is based on a sample of 153 Swedish manufacturing SMEs. The data are analyzed by two- and three-way interaction regressions. Findings – EO and MAPs have a positive effect on profitability in non-growing SMEs, but the combined effect of EO and MAPs has no additional effect. However, for growing SMEs, high usage of MAPs in decision making is a prerequisite for EO to influence profitability. Originality/value – This study is the first to use the resource-based view to examine the relationship between two dimensions of resource organization and SME profitability. EO is used as a proxy for how resources are organized in order to identify opportunities, and MAPs are used as a proxy for how efficiently resources are organized.

Business volatility and employee performance

2018 ◽  
Vol 33 (3) ◽  
pp. 96-119 ◽  
Author(s):  
Wen-Chyuan Chiang ◽  
Li Sun ◽  
Brian R. Walkup
Keyword(s):  
Design Methodology ◽  
Positive Impact ◽  
Employee Performance ◽  
Research Question ◽  
Labor Cost ◽  
Firm Level ◽  
Content Type ◽  
Management Literature ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the impact of business volatility on employee performance. Design/methodology/approach The authors use regression analysis to examine the authors’ research question. Findings The results suggest that business volatility has a significant and positive impact on employee performance. Furthermore, the authors find that the relationship between business volatility and employee performance is stronger for larger firms and firms with higher labor intensity. Originality/value The study links and contributes to two streams of literature: employee/labor cost management from the accounting literature and business volatility from the management literature. Whether business volatility affects employee performance remains an interesting question that has not been definitively answered empirically. To the best of the authors’ knowledge, this is the first empirical study that directly examines the relationship between business volatility and employee performance at the firm level.

How environmental turbulence influences firms’ entrepreneurial orientation: the moderating role of network relationships and organizational inertia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming-Chao Wang ◽  
Pei-Chen Chen ◽  
Shih-Chieh Fang
Keyword(s):  
Entrepreneurial Orientation ◽  
High Technology ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Content Type ◽  
Technology Firms ◽  
Organizational Inertia ◽  
High Technology Firms ◽  
The Relationship

Purpose Environmental turbulence represents a double-edged sword, simultaneously fueling and hindering a firm’s entrepreneurial orientation (EO). Drawing on the theories of EO and network relationships, this study aims to develop and test a conceptual model that provides a nuanced account of the relationship between environmental turbulence and firm EO. Design/methodology/approach Data for this study were collected using a survey of high-technology firms in Hsinchu Science Park (HSP) in Taiwan. Questionnaires were mailed to 297 high-technology firms in the semiconductor, photoelectric and communication industries within HSP. Completed questionnaires were received from 94 firms, which included responses from 94 research and development managers and 462 employees. Findings The results reveal that the degree of environmental turbulence exhibits an inverted U-shaped relationship with a firm’s EO. Moreover, this relationship is positively moderated by network relationships between firms, but negatively moderated by organizational inertia. Originality/value The empirical and conceptual findings have important implications for understanding EO, because the findings explain causal relationships that transform a firm’s interactive and inner control capabilities into firm-level results.

The human capital and the obtainment of halal certification

2016 ◽  
Vol 7 (2) ◽  
pp. 134-147 ◽  
Author(s):  
Ahmad Rafiki ◽  
Kalsom Abdul Wahab
Keyword(s):  
Human Capital ◽  
Design Methodology ◽  
Small Firms ◽  
Valuable Insight ◽  
Training And Education ◽  
Capital Theory ◽  
Content Type ◽  
Independent Variables ◽  
The North ◽  
The Relationship

Purpose This paper aims to analyse the relationship between human capital and obtainment of halal certification. Design/methodology/approach The human capital theory is deployed as the basis to analyse the possible factors that determine the obtainment of halal certification by small firms. Four independent variables that were delineated include business experience, motivation, training and education. The proposed hypotheses mark the relationship between the four variables and the obtainment of the halal certification. The sample size (n = 370) is a group of small firms randomly picked from the four regions in the North Sumatera Province, Indonesia. Findings By adopting the quantitative deductive-hypothetical method and the logistic regression analysis, the result has revealed that the aforementioned four variables have a significant relationship with the obtainment of halal certification. Originality/value This paper provides the empirical findings and valuable insight for future researchers. The importance of obtaining the halal certification lies in not only more than convincing customers with the goodness of ingredient or compliance with the religions’ obligations but also it can serve as a strategy that brings a competitive advantage to the firms to grow. While the elements of human capital would be the factors that influence in the decision-making of obtaining the halal certification.

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