Impacts of regulatory focus and institutions on innovation

2018 ◽  
Vol 56 (5) ◽  
pp. 939-954 ◽  
Author(s):  
Birton J. Cowden ◽  
Joshua S. Bendickson
Keyword(s):  
Regulatory Focus ◽  
New Ventures ◽  
New Venture ◽  
Institutional Setting ◽  
Prevention Focus ◽  
Content Type ◽  
Institutional Settings ◽  
Cognitive Motivations ◽  
The Impact ◽  
Shed Light

Purpose Many factors influence entrepreneurs, some of which influence the level of innovation (i.e. innovative or imitative) of new products or services pursued. The purpose of this paper is to explore the impact of the psychological motivations of the entrepreneurs and their institutional setting on the innovativeness of the new venture they pursue. Through this exploration, we can gain a better understanding of how innovative new ventures still occur in varying institutional environments. Design/methodology/approach In order to deliver the authors’ propositions as they pertain to innovation, the authors review the literature on entrepreneurs’ default regulatory focus (i.e. promotion or prevention seeking) and the strength of the institutions in which they are operating. Findings The authors theorize that promotion focus enhances innovativeness of ventures while prevention focus enhances imitativeness of ventures. The authors also provide a conceptual framework for the interplay among institutions and regulatory focus and provide a typology for how these varying combinations impact innovativeness or imitativeness of venture type. Originality/value In this study, the authors discuss and unpack the entrepreneurial mindset in order to bridge gaps between institutions and cognitive motivations of entrepreneurs as they pertain to innovativeness of venture type. By synthesizing several areas of research, the authors shed light on entrepreneurs’ innovativeness by proposing how these factors work together in determining whether an entrepreneur’s venture is more or less innovative based on regulatory disposition and in different institutional settings.

Policy and institutions facilitating entrepreneurial spin-offs: USA, Asia and Europe

2014 ◽  
Vol 3 (2) ◽  
pp. 186-196 ◽  
Author(s):  
Rosa Caiazza ◽  
David Audretsch ◽  
Tiziana Volpe ◽  
Julie Debra Singer
Keyword(s):  
Institutional Setting ◽  
Policy Debate ◽  
Content Type ◽  
Factors Affecting ◽  
Institutional Settings ◽  
The Usa ◽  
New Perspective ◽  
National Analysis ◽  
The Impact ◽  
Cross National

Purpose – Existing work documents the role that institutional setting plays in the process of spin-off creation. However, despite decades of studies, scholars have not clearly explained why some regions are more involved in spin-off activity than others. Drawing from institutional theory, the purpose of this paper is to compare different institutional settings identifying factors affecting the general environment capability to support spin-off activity of a specific region. Design/methodology/approach – The authors utilize a cross-national analysis of American, Asian, and European areas identifying factors affecting their different rate of spin-off activity. This study contributes to the policy debate concerning entrepreneurship and how best to spur spin-off activities. Findings – In this paper, the authors identify the general and specific factors that explain the cross-national diversity in spin-off creation. The authors then perform an analysis of the impact of these factors in various regions of the USA, Asia, and Europe, providing evidence for the necessity of specific combinations of these factors. Originality/value – The paper offers a new perspective on the causes of spin-offs through a cross-national analysis of many areas around the world.

Is business planning useful for the new venture emergence?

2018 ◽  
Vol 12 (4) ◽  
pp. 847-870 ◽  
Author(s):  
Ya-long Wei ◽  
Dan Long ◽  
Yao-kuang Li ◽  
Xu-sheng Cheng
Keyword(s):  
Early Stage ◽  
Contextual Factors ◽  
New Ventures ◽  
Panel Study ◽  
Binary Logistic Regression ◽  
New Venture ◽  
Business Planning ◽  
Content Type ◽  
Innovative Products ◽  
The Impact

Purpose The purpose of this paper is to build a research model to examine the effects of business planning on the new venture emergence, as well as to examine the moderating effects of innovativeness of products. Design/methodology/approach Four hypotheses are put forward and examined by hierarchical binary logistic regression. The data of this paper are based on the first two waves of data from Chinese Panel Study of Entrepreneurial Dynamics project. Findings Results show that engaging in business planning has a positive effect on the new venture emergence, and the timing of business planning does not affect the new venture emergence significantly. This study also finds that the innovativeness of products has a positive moderating effect on the relationship between the timing of business planning and the new venture emergence. Research limitations/implications This study has some limitations. The innovativeness of products is measured by a single indicator, which may not completely reflect the meaning of the attribute. Moreover, this study explores new ventures only in the nascent stage. Practical implications The study is useful for entrepreneurs to realize the importance of business planning. First, engaging in business planning in early start-up stage is a very valuable activity, because business planning can help new ventures reduce the loss caused by trial and error learning. Second, engaging in business planning is more likely to ensure high innovative products quickly be accepted by the market. Because in the process of new venture emergence, the legitimacy signal to stakeholders can be transmitted and new products can be promoted to get support and recognition from stakeholder through the business plan. Originality/value This paper focuses on the early stage of new venture life cycle and the contextual factors to explore the influence of business planning on the new venture emergence under the logic of legitimacy. This paper could enrich business planning research from the perspective of legitimacy theory by inspiring scholars to focus on the differences between new ventures and mature enterprises and to offer proposals of legitimation strategies suitable for new ventures. Meanwhile, this study contributes to the understanding of the contextual factors of business planning. And it discusses the impact of the attribute in business planning on the new venture emergence, which helps scholars to get a deep thought about the value of business planning in entrepreneurial process.

Optimism, overconfidence and entrepreneurial activity

2008 ◽  
Vol 46 (7) ◽  
pp. 986-1001 ◽  
Author(s):  
Rose Trevelyan
Keyword(s):  
Regulatory Focus ◽  
Development Process ◽  
Analytical Techniques ◽  
Small Sample ◽  
New Venture ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Content Type ◽  
The Right ◽  
The Impact

PurposeThis paper aims to explore the question of confidence in entrepreneurship, and the impact confidence has on key tasks in the venture development process.Design/methodology/approachPropositions about the relationship between key elements of confidence (optimism and overconfidence) are made in order to unpack the confidence construct. Simple tests of these propositions are conducted using a small sample of Australian entrepreneurs. Further propositions are made about the impact of optimism and overconfidence on activity across different phases of the new venture development process.FindingsTwo elements of confidence, optimism and overconfidence, are distinct in their association with each other and with a third individual difference (regulatory focus). The dual and sometimes opposing impacts of optimism and overconfidence on new venture activity are explored. Optimism and overconfidence are both beneficial when deciding to become an entrepreneur, but overconfidence is harmful when making decisions in response to setbacks.Research limitations/implicationsConclusions are limited by the sample size and simple analytical techniques. Rather, the impact of the paper is in the implications of the independence of optimism and overconfidence. Future research can explore and test the propositions made about when each is harmful and when beneficial.Practical implicationsFor entrepreneurs, it is important to be aware of your optimism and overconfidence in different situations. When optimism is beneficial, use it, but when overconfidence is harmful, mitigate against it by asking the right questions and working with others to check assumptions and strategies.Originality/valueThis paper distinguishes between two individual differences, optimism and overconfidence, that are typically thought to be interdependent and beneficial for entrepreneurs.

The impact of entrepreneurs' full-time versus hybrid employment and social connections on new venture survival: a USA–India comparison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xi Zhang ◽  
Shanthi Gopalakrishnan ◽  
Raja Roy ◽  
Cesar Bandera
Keyword(s):  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Social Connections ◽  
Entrepreneurial Firms ◽  
Full Time ◽  
Content Type ◽  
Country Level ◽  
The Usa ◽  
The Impact

PurposeThe purpose of this paper is to explore how the entrepreneurs' social connections and types of employment differentially affect the survival of startup firms in the USA and India. Further, the authors analyze the differences during both the early stage and the later stages of new ventures.Design/methodology/approachThe authors use data from the Global Entrepreneurship Monitor (GEM) database between 2012 and 2014 and examine the hypothesized effects with logistic regression analyses.FindingsThe analysis reveals that an entrepreneur's social connections with other entrepreneurs favor the survival of the focal entrepreneur's early-stage business in the USA. However, social connections are more critical for later-stage ventures in India. During the early stage, new ventures of full-time entrepreneurs are more likely to survive in India, whereas those by hybrid entrepreneurs are more likely to survive in the USA. The differences between the importance of full-time and hybrid entrepreneurs across geographies are less discernible during the later stages of new ventures.Originality/valueThe novelty of this paper is that it demonstrates the significant differences in the way social connections and types of employment (hybrid versus full-time) affect the survival of entrepreneurial firms in the early and later stages. The study also expands the international business literature by shedding new light on country-level differences that affect the survival of new ventures.

Having champagne without celebration?

2014 ◽  
Vol 48 (11/12) ◽  
pp. 1939-1961 ◽  
Author(s):  
Shin-Shin Chang ◽  
Chung-Chau Chang ◽  
Ya-Lan Chien ◽  
Jung-Hua Chang
Keyword(s):  
Goal Orientation ◽  
Regulatory Focus ◽  
New Products ◽  
Product Evaluations ◽  
Prevention Focus ◽  
Promotion Focus ◽  
Content Type ◽  
Product Usage ◽  
Usage Context ◽  
The Impact

Purpose – This research aims to analyze whether the self-regulatory focus, a consumer variable, moderates the impact of incongruity on consumer evaluations. A congruity or typicality arises when a product (e.g. champagne) is consistently consumed in certain occasions or is used in conjunction with other specific products. This typicality may remind people of the product with regard to specific contexts but may limit the product’s overall versatility. In line with the moderate incongruity effect, there may be an opportunity to extend a product usage to situations associated with moderate incongruity or atypicality. Design/methodology/approach – Study 1 is a 2 (self-regulatory focus: promotion/prevention) × 3 (atypicality of product usage context: typical/moderately atypical/highly atypical) between-subject experimental design. Study 2 replicated Study 1 with a sample of different age, three different champagne usage contexts and a manipulation of self-regulatory focus. Study 3 is a 2 (self-regulatory focus: promotion/prevention) × 3 (atypicality of product usage context: typical/moderately atypical/highly atypical) × 2 (product replicates: red wine/pearl jewelry) mixed design with self-regulatory focus and atypicality as between-subjects factors and product replicates as a within-subject variable. Findings – Promotion-focus consumers’ product evaluations for the moderate incongruity or atypicality are higher than those for congruity and extreme incongruity. The relationship takes an inverted-U shape. Prevention-focus consumers’ product evaluations decrease monotonically as congruity decreases. Moreover, compared with prevention-focus individuals, promotion-focus ones evaluate moderate incongruity more favorably. Research limitations/implications – There are some limitations to this research. First, it only investigates the moderate incongruity effect with regard to product use occasions and complementary products. To increase the external validity of self-regulatory focus as a moderator of incongruity-evaluation relationships, it remains to future research to extend the research setting to products which have been tightly bonded to specific users, locations, seasons or times. Second, although the experimental designs are similar to previous ones, the scenarios are nevertheless imaginary. Therefore, participants’ involvement levels in all manipulated situations, as well as the quality of their answers, remain unknown. Practical implications – First, brand managers should target only promotion-focus customers to obtain the moderate incongruity effect, but should maintain a consistent marketing strategy for prevention-focus customers. Second, because both promotion- and prevention-focus individuals have unfavorable evaluations of extreme incongruity, drastic changes in marketing strategies should be avoided. Third, people from a Western (Eastern) culture exhibit more promotion (prevention) focus orientation. Therefore, the type of culture can serve as an indicator of regulatory orientation. Fourth, a gain-framed appeal is recommended for realizing the moderate incongruity effect from promotion-focus consumers. Finally, promotion-focus (vs prevention-focus) consumers will welcome a moderately nonalignable than alignable product upgrade. Originality/value – Most prior research on goal orientation has found that promotion-focus (vs. prevention-focus) individuals are more inclined to adopt new products, but both types of people are unlikely to purchase new products when the associated risks become salient, while the research related to schema incongruity has suggested that the moderate incongruity effect may not exist when consumers perceive high risks. By combining both schema congruity and self-regulatory focus theories, this research provides a more precise picture of how and why a person’s goal orientation influences the relative salience of risks and benefits with an increase in incongruity.

scholarly journals Regulatory focus, persistence and new venture performance

2020 ◽  
Vol 27 (7) ◽  
pp. 1107-1124
Author(s):  
Samuel Adomako
Keyword(s):  
Regulatory Focus ◽  
Manufacturing Sector ◽  
New Ventures ◽  
Self Regulation ◽  
Institutional Support ◽  
New Venture ◽  
Content Type ◽  
Venture Performance ◽  
Using Data ◽  
New Venture Performance

PurposeThe purpose of this paper was to examine the joint effects of regulatory focus, entrepreneurial persistence and institutional support on new venture performance.Design/methodology/approachThis paper uses a random survey approach to sample 204 new ventures from Ghana. The moderated mediation method was used to analyse the survey data.FindingsThe findings from this paper show that entrepreneurs' promotion focus positively relates to persistence while prevent focus negatively influences persistence. In addition, persistence mediates the link between regulatory focus (promotion and prevention focus) and new venture performance. These relationships are positively moderated by perceived institutional support.Research limitations/implicationsUsing data from only the manufacturing sector in Ghana limits the generalisability of this paper. In addition, persistence is not observed or measured directly in this paper but is only used as self-reporting variable that captures an individual's tendency to persist.Originality/valueThe contribution of this paper is threefold. First, this paper contributes to regulatory focus literature by enhancing our knowledge on how self-regulation could help explain entrepreneurial decision-making. Second, this paper broadens self-regulation literature by adding institutional context as a moderating variable. Third, this paper helps clarify the potential role of persistence in entrepreneurship.

Secure or fearful, who will be more resentful? Investigating the interaction between regulatory focus and attachment style

2019 ◽  
Vol 28 (5) ◽  
pp. 671-683 ◽  
Author(s):  
Melika Kordrostami ◽  
Elika Kordrostami
Keyword(s):  
Attachment Style ◽  
Customer Service ◽  
Regulatory Focus ◽  
Attachment Styles ◽  
Future Research ◽  
Prevention Focus ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to examine the impact of consumers’ individual differences on their reactions to brand failure. Design/methodology/approach Three studies (one qualitative, one survey and one experiment) were conducted. Study 1 aimed to understand consumers’ thoughts at the time of brand failure. Studies 2 and 3 investigated the impact of regulatory focus and its interaction with consumers’ attachment style on their reactions to brand failure. Findings This research establishes that consumers demonstrate different types of behaviors at the time of brand failure. Specifically, those with a promotion focus display less negative (revenge and brand avoidance) and more positive (trust and loyalty) behavior than those with a prevention focus. Furthermore, this research shows an interaction between consumers’ attachment style and regulatory focus. The impact of regulatory focus holds only for secure consumers; for fearful consumers, regulatory focus does not change their behavior. Research limitations/implications The study reveals the impact of regulatory focus and attachment styles on consumer behavior at the time of brand failure. Future research might examine the impact of these factors over time, rather than only at the time of the incident. Practical implications Marketers should be aware of the impact of attachment style and regulatory focus after a brand failure. This knowledge will enable them to customize their communication tools to trigger their desired condition. This research also emphasizes the role of customer service at the time of crisis. Originality/value This research is the first to investigate the impact of regulatory focus and attachment style on consumers’ reactions to brand failure.

scholarly journals When information about one’s counterpart matters

2019 ◽  
Vol 31 (2) ◽  
pp. 221-240
Author(s):  
Mauro Giacomantonio ◽  
Femke S. ten Velden ◽  
Valeria De Cristofaro ◽  
Bianca Beersma
Keyword(s):  
Regulatory Focus ◽  
Cooperative Behavior ◽  
Interpersonal Behavior ◽  
Regulatory Focus Theory ◽  
Prevention Focus ◽  
Promotion Focus ◽  
General Hypothesis ◽  
Content Type ◽  
And Behavior ◽  
The Impact

Purpose To avoid (costly) conflict, it is imperative to uncover when negotiators cooperate. The previous study has shown that negotiators’ cooperative or competitive behavior is oftentimes guided by cues about their counterpart; information about his/her traits or behavior. Using regulatory focus theory, this paper aims to investigate when this is likely to happen. The authors hypothesize and test that because prevention focus (rather than promotion focus) is associated with concerns for safety and concrete surroundings, it strengthens the impact of counterpart cues. Design/methodology/approach The authors used two scenario studies and one behavioral negotiation study to test the general hypothesis. The authors measured or manipulated participants’ regulatory focus, manipulated counterpart cues by varying the information negotiators received about their counterpart’s traits and behavior, and measured participants’ cooperative or competitive concession making behavior. Findings Results from the studies confirmed that under prevention focus, negotiators’ cooperative behavior depended on whether they received cooperative versus competitive counterpart cues more than under promotion focus. Furthermore, results also showed that under prevention focus, negotiators’ behavior was relatively unaffected by their own social motivation – i.e. their personal goal to obtain favorable outcomes for oneself or for both negotiation parties. Originality/value By showing that regulatory focus determines when counterpart cues affect negotiation behavior, this paper furthers the understanding of when contextual factors affect negotiators' behavior. In addition, it contributes to the understanding of the complex effects of prevention focus in interpersonal behavior.

Trait-level and week-level regulatory focus as a motivation to craft a job

2015 ◽  
Vol 20 (2) ◽  
pp. 102-118 ◽  
Author(s):  
Paraskevas Petrou ◽  
Evangelia Demerouti
Keyword(s):  
Regulatory Focus ◽  
Job Crafting ◽  
Prevention Focus ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Diverse Range ◽  
Content Type ◽  
Trait Level ◽  
Level Variable ◽  
Shed Light

Purpose – The purpose of this paper is to address regulatory focus (promotion vs prevention) as a trait-level variable and a week-level variable linked to employee job crafting behaviors (i.e. seeking resources, seeking challenges and reducing demands). The authors hypothesized that while promotion focus relates positively to seeking resources and seeking challenges, prevention focus relates positively to reducing demands. Furthermore, the authors expected that the links between week-level regulatory focus and crafting would be stronger when the respective trait-level regulatory focus is high. Design/methodology/approach – Two studies were conducted to address the aims, namely, a cross-sectional survey among 580 civil servants and a weekly survey among 81 employees of several occupations. Findings – The hypothesized links between regulatory focus and job crafting were supported at the trait- and the week-level. Only the link between week-level prevention focus and reducing demands was stronger when trait-level prevention focus was high. Unexpectedly, seeking resources positively related to prevention focus at the week-level. Practical implications – While prevention states may enhance reducing demands behaviors especially for prevention focussed employees, organizations and managers may use promotion states to enhance seeking resources and seeking challenges behaviors among all types of employees and, thereby, shape a strategy emphasizing the promotion values of growth and development. Originality/value – The findings shed light to a diverse range of employee motivational orientations (i.e. approach vs avoidance and trait-like vs state-like) behind job crafting and, thus, shed light to individual correlates of job crafting.

The effect of Medicare Part D on prescription drug composition and demand

2015 ◽  
Vol 42 (2) ◽  
pp. 170-185 ◽  
Author(s):  
David Zimmer
Keyword(s):  
Prescription Drug ◽  
Medicare Part D ◽  
Medicare Part ◽  
Part D ◽  
Content Type ◽  
The Us ◽  
Upper Respiratory ◽  
Nationally Representative ◽  
The Impact ◽  
Shed Light

Purpose – The US Medicare Modernization Act of 2003 introduced optional prescription drug coverage, beginning in 2006, widely known as Medicare Part D. This paper uses up-to-date nationally representative survey data to investigate the impact of Part D not only on drug spending and consumption, but also on the composition of drug consumption. The paper aims to discuss these issues. Design/methodology/approach – Specifically, the paper investigates whether Part D impacted the number of therapeutic classes for which drugs were prescribed, and also whether Part D lead to increased usage of drugs for specific medical conditions that typically receive drug-intensive therapies. Findings – In addition to confirming findings from previous studies, this paper shows that Part D increased the number of therapeutic classes to which seniors receive drugs by approximately four classes. Part D also lead to increased usage of drugs used to treat upper respiratory disease, hypertension, and diabetes. Originality/value – While mostly concurring with previous studies on the spending impacts of Part D, this paper is the first to shed light on other impacts of Part D, specifically with respect to its impact on therapeutic classes for which drugs are prescribed.

Sign in / Sign up

Export Citation Format

Share Document