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.

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.

Early stage network engagement strategies in the network capability development of new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole
Keyword(s):  
Social Network ◽  
Business Strategy ◽  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
Engagement Strategies ◽  
Network Capability

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

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.

Arnetta technologies: minimum viable product

2021 ◽  
Vol 17 (1) ◽  
pp. 117-145
Author(s):  
Puran Singh ◽  
Suryani Sinha Ray
Keyword(s):  
Product Development ◽  
Early Stage ◽  
Innovation Management ◽  
Research Management ◽  
New Venture ◽  
Full Time ◽  
Content Type ◽  
Academic Level ◽  
To Come ◽  
One Year

Theoretical basis The case fosters discussions on basic concepts of entrepreneurship that include building a minimum viable product before launching a finished product, the importance of doing market research for early-stage startups, challenges in understanding an unfamiliar domain or industry and understanding the dynamics of business to business market. Research methodology Team Arnetta’s founders were interviewed in relation to the case. After the initial round of interviews, a product demonstration was given by Arnetta. Follow up interviews were conducted to delve-deeper into the problem while secondary research was conducted to understand the market dynamics and competitive landscape at the point in time in the case. Case overview/synopsis The four founders of Arnetta Technologies debate go-to-market timing for Integrated Breeding and Research Management Software, a data handling software for the R&D process followed by seed enterprises in India. The founders had spent over US$75,000 on the product development on which they had been working for more than one year. Two of the founders had given up their full-time jobs to work dedicatedly on the venture. The product was being customized to the requirements of their only client. Product development was taking longer than anticipated. To add to the challenges, international competitors had started capturing the Indian market. The founders had two options. First, they could wait and finish the product development before reaching out to their prospective clients – leading to delays and losing out on the market. Second, they could reach out to prospective clients and convince them to use the work-in-progress version of the product – which could turn out to be a deal breaker. The founders had to come to a consensus soon. Complexity academic Level The case is intended for students in undergraduate or graduate-level courses related to entrepreneurship, new venture creation, innovation management and business management.

Labor supply and productivity responses to non-salary benefits

2016 ◽  
Vol 45 (5) ◽  
pp. 1047-1068 ◽  
Author(s):  
Marilyn Spencer ◽  
Deniz Gevrek ◽  
Valrie Chambers ◽  
Randall Bowden
Keyword(s):  
Employee Retention ◽  
Low Cost ◽  
Full Time ◽  
Employee Benefit ◽  
Data Set ◽  
Content Type ◽  
College Tuition ◽  
The Usa ◽  
Faculty And Staff ◽  
The Impact

Purpose – The purpose of this paper is to explore the impact of a particular low marginal-cost employee benefit on employees’ intended retention and performance. By utilizing a unique data set constructed by surveying full-time faculty and staff members at a public university in the USA, the authors study the impact of this employee benefit on faculty and staff performance and retention. Design/methodology/approach – The authors focus on the impact of reduction in dependent college tuition at various levels on employees’ intentions to work harder and stay at their current job by using both OLS and ordered probit models. The authors also simulate the direct opportunity cost (reduction in revenue) in dollars and as a percent of total budgeted revenue to facilitate administrative decision making. Findings – The results provide evidence that for institutions where employee retention and productivity are a priority, maximizing or offering dependent college tuition waiver may be a relatively low-cost benefit to increase retention and productivity. In addition, the amount of the tuition waiver, number of dependents and annual salary are statistically significant predictors of intended increased productivity and intent to stay employed at the current institution. Originality/value – Employee retention and productivity is a challenge for all organizations. Although pay, benefits and organizational culture tend to be key indicators of job satisfaction, little attention is given to specific types of benefits. This study is the first comprehensive attempt to explore the relationship between the impact of this low-cost employee benefit and employee performance and retention in a higher education institution in the USA.

Emerging entrepreneurship in Cuba

2011 ◽  
Vol 1 (3) ◽  
pp. 1-15
Author(s):  
Marilyn M. Helms
Keyword(s):  
Business Students ◽  
New Ventures ◽  
Subject Area ◽  
Cultural Barriers ◽  
New Venture ◽  
Content Type ◽  
Tour Guides ◽  
Small Business Management ◽  
The Usa ◽  
Tourism And Hospitality

Subject area Entrepreneurship; tourism and hospitality. Study level/applicability Junior or senior-level business students as well as graduate-level (MBA and/or EMBA) classes in entrepreneurship, small business management, strategic management, international business or international economics. Case overview Cuban tour guides working for the communist Castro Government dream of working for themselves or leaving for the USA. Their story is contrasted by a visit to Cuba as told by a US business professor. Expected learning outcomes To compare entrepreneurship under capitalism that is slowly relaxing their communistic rules, to learn more about the island of Cuba and its potential for tourism and new venture creation, to understand the legal, social, political, historical and cultural barriers to entrepreneurship, to hypothesize or brainstorm potential new ventures for Cuba. Supplementary materials Teaching notes; photos also available upon request from the author.

Growth intentions in family-based new venture teams

2019 ◽  
Vol 58 (6) ◽  
pp. 1190-1209 ◽  
Author(s):  
Fernando Muñoz-Bullón ◽  
Maria J. Sanchez-Bueno ◽  
Mattias Nordqvist
Keyword(s):  
Family Involvement ◽  
New Ventures ◽  
Panel Study ◽  
New Venture ◽  
Nascent Entrepreneurs ◽  
Content Type ◽  
Family Ties ◽  
The Usa ◽  
Family Based ◽  
Using Data

Purpose The purpose of this paper is to investigate how family ties in new venture teams (NVTs) influence the intended future growth of a nascent entrepreneur’s business. The authors posit that R&D-oriented entrepreneurs in NVTs with family ties have higher growth intentions relative to those who are less oriented toward R&D. Design/methodology/approach The hypotheses were tested using data from the Panel Study of Entrepreneurial Dynamics II (PSED II). One distinctive feature of the PSED is that it is based on a random sample of 1,214 nascent entrepreneurs in the process of starting new ventures in the USA, which overcomes the recall biases associated with surveying entrepreneurs already in business and potential survivorship biases. Findings The results show that growth intentions in NVTs with family ties is greater when the nascent entrepreneur shows an R&D behavior, even though the presence of family members in the team is negatively related to the intentions of nascent entrepreneurs with regard to new venture growth. This effect is attributed to entrepreneurs’ long-term vision and a more favorable attitude toward change. Research limitations/implications Data on startup teams in the PSED II come from one team member (the respondent). Therefore, differences in perceptions regarding growth intentions cannot be determined. Moreover, the sample consisted exclusively of nascent entrepreneurs in the USA. Practical implications Knowledge about the determinants of growth intentions during the venture creation phase becomes relevant if we want to influence and support the growth of newly founded firms. Nascent entrepreneurs need to understand the trade-off between emotional and financial concerns. Social implications Nascent entrepreneurs more oriented toward R&D become more risk tolerant, and may accept certain losses to their emotional endowment in favor of pure financial goals, being more able to access the additional external resources (tangible and intangible) needed for growth. Originality/value The research expands previous evidence on the family involvement-performance debate in large firms by focusing on new ventures with family ties, with distinctive characteristics that may affect growth intentions. The authors also shed new light on the interplay between family business and entrepreneurship. In particular, the research helps gain an understanding of how NVTs with family ties deal with the opposition between the benefits from venture growth and the tendency to preserve team member’s emotional attachment.

Understanding the impacts of issue types and employee–organization relationships on employees’ problem perceptions and communicative behaviors

2019 ◽  
Vol 24 (3) ◽  
pp. 553-568
Author(s):  
Yeunjae Lee ◽  
Katie Haejung Kim ◽  
Jeong-Nam Kim
Keyword(s):  
Public Relations ◽  
Online Survey ◽  
Internal Communication ◽  
Corporate Communication ◽  
Full Time ◽  
Content Type ◽  
Communicative Behaviors ◽  
The Usa ◽  
Communicative Actions ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of different types of corporate issues and employee–organization relationships (EORs) on employees’ perceptions of the issues and on their communicative actions. Specifically, this study investigates how employees who have experienced an internal or an external issue within their organizations differently perceive the organizational issue and engage in positive and/or negative communicative behaviors. Design/methodology/approach An online survey was conducted with 363 full-time employees in large-sized companies in the USA who have experienced any internal or external issues within the past six months. Findings Employees are more cognitively aware of and feel more involved and less constrained in solving an internal company issue than an external one. Experiencing internal issues has led employees to share negative information about their organization externally. The quality of EORs pre-issue significantly increases employees’ involvement and positive communication behavior and decreases constraint levels and negative communication behaviors regarding an issue. Practical implications Corporate communication and public relations practitioners should incorporate strategic internal communication strategies to preemptively manage internal issues and to avoid them from evolving into internal crises. Originality/value This study is among the first to distinguish internal and external issues perceived by internal stakeholders and to examine their impacts on employees’ issue-specific perceptions and communicative behaviors. This study also provides significant practical guidelines for corporate communication practitioners and leaders by explicating the strategic role of issue type and employee behaviors in issue management.

“Chasing a passion”: first-generation college graduates at work

2016 ◽  
Vol 58 (4) ◽  
pp. 358-371 ◽  
Author(s):  
Joann S. Olson
Keyword(s):  
Family Dynamics ◽  
First Generation ◽  
Work Environments ◽  
Full Time ◽  
Content Type ◽  
Work Transition ◽  
First Generation College ◽  
The Usa ◽  
The Impact ◽  
College To Work Transition

Purpose – The purpose of this paper is to describe the college-to-work transition as experienced by first-generation college (FGC) graduates. First-generation graduates are often adjusting to workplaces that are significantly different from parents’ work environments. Design/methodology/approach – This phenomenological study explored the early-career learning experiences of six FGC graduates from the USA. All participants were working full-time and had graduated two to six years earlier. Findings – Three themes were identified: starting the job, being in the job, and releasing the past. Participants highlighted unanticipated aspects of their college-to-work transition, including dealing with workplace politics and family dynamics. They also described ambivalence between their current work and the desire to pursue a more compelling career or vocational passion. Research limitations/implications – All participants were white and from similar (rural) settings in one region of the USA. The qualitative nature of the study restricts generalization. Practical implications – This study suggests, given the distinction between first-generation students’ post-college work environments and that of their parents, that educators’ efforts to assist FGC students might appropriately extend to topics beyond graduation. FGC graduates should be alerted to the impact of shifts in social and cultural norms, and informed about changing family dynamics that may continue after leaving school. Originality/value – Previous research has highlighted the challenges facing FGC students. This is one of few studies that explores the experiences of FGC graduates in the workplace following graduation.

Stage of development of a country and CSR disclosure – the latent driving forces

2020 ◽  
Vol 62 (5) ◽  
pp. 467-493
Author(s):  
Aparna Bhatia ◽  
Binny Makkar
Keyword(s):  
Developing Countries ◽  
Stock Exchange ◽  
Developed Countries ◽  
Firm Level ◽  
Content Type ◽  
Country Level ◽  
The Usa ◽  
Csr Disclosure ◽  
Developed Nations ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of various determinants at the country level, the industry level, the firm level and the corporate governance (CG) level on the extent of corporate social responsibility (CSR) disclosure in the group of developing and developed nations. Design/methodology/approach The data set comprises 310 companies listed on stock exchanges of developing and developed markets (Brazil – IBrX 100, 42 companies; Russia – Broad Market Index; 48 companies; India – Bombay Stock Exchange (BSE) 100, 50 companies; China – Shanghai Stock Exchange (SSE) 180, 27 companies; South Africa – The Financial Times Stock Exchange (FTSE)/Johannesburg Stock Exchange (JSE) All Share index, 49 companies; the USA – New York Stock Exchange (NYSE) 100, 47 companies; and the UK – London Stock Exchange (LSE) 100, 47 companies). CSR disclosure is measured through CSR disclosure index. Five separate regression models are run to investigate the impact of the factors that affect the extent of CSR disclosure. Findings The findings reveal that CSR disclosure is influenced by factors both at micro and macro levels. Governance environment, globalization and income inequality are found to be significant determinants of CSR disclosure for developing countries. International listing significantly influences CSR disclosure in the developed countries. The results also exhibit that board with large proportion of independent directors, high presence of CSR committee and environmental sensitive industries are more likely to engage in CSR disclosure practices in developing as well as in developed nations. Research limitations/implications This study implicates that varied factors – at country level, industry level, firm level and CG level – need assessment to know their impact differently in countries at different stages of economic development. However, longitudinal study covering longer period would lead to better generalization of results. Practical implications The findings of this present study implicate that managers must evaluate country’s political, social and economic forces and not just rely on company-level indicators affecting disclosure. Policymakers in emerging nations must emphasize on improving country governance features to enhance CSR disclosure of companies. Developing countries must respect and conform to rules and regulations while going global. More endeavors should be made to raise awareness about the benefits of CSR disclosure on reducing income inequality among companies listed on stock exchanges of developing countries. Emerging nations should follow developed nations in assuming responsibility toward stakeholders in foreign markets. This study also recommends regulatory bodies in both developing and developed countries to frame stringent policies regarding CG for improving CSR disclosure by companies. Originality/value This study overcomes the limitations of prior literature by considering both country- and company-specific determinants in prominent group of developing (Brazil, Russia, India, China and South Africa) and developed (the USA and the UK) countries.

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