Entrepreneurs' personal network usage and the performance of young firms: evidence from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mishari Alnahedh ◽  
Abdullatif Alrashdan
Keyword(s):  
Emerging Market ◽  
Government Officials ◽  
Personal Network ◽  
Content Type ◽  
Young Firms ◽  
Confirmatory Factor ◽  
Network Usage ◽  
The Relationship

PurposeWhile most extant research focused on different dimensions of the entrepreneurs’ social network such as the size and quality of the network, the focus of this paper is on the extent to which entrepreneurs utilize their personal network with suppliers, competitors, customers, and government officials to support the operations of their ventures. This paper also takes into account the effects of industry level determinants that can influence the relationship between entrepreneurs’ personal network usage and young firms’ performance.Design/methodology/approachThe paper employs confirmatory factor analysis and moderated hierarchical multiple regressions on a sample of 246 young firms in Kuwait.FindingsThe results indicate that entrepreneurs' personal network usage is positively associated with young firms' performance. The results also reveal that industry dynamism strengthens this relationship, while in hostile industries the relationship between network usage and young firms' performance becomes weaker.Originality/valueThe present study provides insights into how the extent of utilization of an entrepreneur's personal network affects the firm's performance. Furthermore, by unpacking how industry dynamism and industry hostility influence the entrepreneurs' ability to reap benefits from their personal networks, this paper enriches the research on the role of industry factors in the performance of young firms.

Mapping the contours of fairness

2014 ◽  
Vol 1 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Lilian Otaye ◽  
Wilson Wong
Keyword(s):  
Job Satisfaction ◽  
Factor Analysis ◽  
Regression Analysis ◽  
Turnover Intention ◽  
Content Type ◽  
Mediating Role ◽  
The Uk ◽  
The Relationship

Purpose – The purpose of this paper is to explore the contours of fairness by showing how different facets of fairness impact three important employee outcomes (job satisfaction, turnover intention and employer advocacy) and examining the mediating role of quality of management and leadership (through perceptions of both senior management and the quality of exchange with immediate supervisors) in attenuating negative impacts of unfairness on these outcomes. The study extends the concept of fairness beyond the traditional focus on organizational justice and models the mediating role of leadership on the relationship between (un)fairness and the three employee-level outcomes in a sample of employees representative of the UK workforce. Design/methodology/approach – Data were obtained from a nationally representative sample of 2,067 employees in the UK. Exploratory factor analysis and then confirmatory factor analysis is used to refine three unfairness factors and address their dimensionality of the unfairness scale and then multiple regression analysis is used to test a fairness-leadership-employee performance outcome model. Findings – Results of multiple regression analysis revealed that both trust in leadership and leader-member exchange partially mediate the relationship between organizational (un)fairness and job satisfaction, advocacy and turnover intention, respectively. Practical implications – The findings highlight the important role that leaders play in influencing the relationship between perception of unfairness and employee outcomes. This has implications for both theory and practice as it suggests that the pattern of inclusion that leaders create through the relationships that they develop with their followers has a significant impact on the relationship between unfairness and the work outcomes. They not only must manage traditional perceptions of justice, but also the assessments employees make about trust in management judgements and the perceived consequences of such judgements. Originality/value – In an environment where perceptions of unfairness are becoming both more endemic but also more complex, the study shows that both senior leaders and immediate supervisors have important agency in managing negative consequences. Through the measurement of satisfaction, turnover intention and employer advocacy it also provides potential links to link fairness into the engagement literature.

The mediating role of organizational embeddedness on the relationship between quality of work life and turnover

2017 ◽  
Vol 38 (5) ◽  
pp. 696-711 ◽  
Author(s):  
Decha Dechawatanapaisal
Keyword(s):  
Life Quality ◽  
Work Life ◽  
Quality Of Work Life ◽  
Content Type ◽  
Mediating Role ◽  
Career Opportunities ◽  
Organizational Embeddedness ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediating effect of organizational embeddedness in the relationship between quality of work life (QWL) and turnover under a foundation of conservation of resources theory. Design/methodology/approach Data were collected from 422 healthcare professionals through a questionnaire survey, and analyzed by means of a confirmatory factor analysis and structural equation modeling. Findings The results indicate that organizational embeddedness has a negative impact on employees’ intention to leave, and on actual turnover. For QWL perception, career opportunities, work life balance, and job characteristics are positive and significant predictors of organizational embeddedness. In addition, organizational embeddedness plays an intermediary role that mediates the relationship between the three components of QWL mentioned earlier and turnover intention, and also between the factor of career opportunities and actual turnover. Research limitations/implications The current research took place within two healthcare organizations. Replicating the study in a variety of business sectors or professions with a larger sample of subjects would be useful for the generalizability of the findings. Practical implications Organizations may improve their retention of employees by offering intrinsic resources that can be obtained from the social contexts of the individual through human resource management system, e.g., growth opportunities, a healthy and caring work life quality. Such motivational resources then develop a sense of obligation toward their places of employment, which influences their intention to stay or leave. Originality/value This study examines the mediating role of organizational embeddedness between employees’ perception of their work life quality and their desire and behavior to withdraw, which is an area of inquiry that has not been fully investigated in the literature.

Performance of Ghanaian women businesses community: the moderating role of social competence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cynthia Ayorkor Sallah ◽  
Livingstone Divine Caesar
Keyword(s):  
Social Competence ◽  
Women Entrepreneurs ◽  
Emerging Market ◽  
Second Phase ◽  
Business Growth ◽  
Content Type ◽  
Intangible Resources ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to investigate the moderating dynamics of social competence in the relationship between intangible resources and the performance of women businesses from an emerging market context. Developed economy literature provides ample evidence of a positive relationship between intangible resources and the performance of women business ventures. Little is known of the complexity of this orthodoxy in developing markets such as Ghana. In particular, this paper investigates the moderating role of social competence in the relationship between intangible resources available to women entrepreneurs and performance. Design methodology approach An exploratory sequential mixed method research design was used. First phase involved qualitative data collected through interviews, and the second phase was quantitative data collected from 264 participants. Content analysis and multiple regression analysis were used. Findings Social competence is important to the success of women businesses as it influences the outcome of entrepreneurial interactions and communications. Also, it positively moderated the relationship between organisational reputational capital (RC) and women business growth. On the flip side, it negatively moderated the relationship between human capital, social capital, individual RC and women business growth. Practical implications To sustainably grow their businesses, women entrepreneurs must ascertain the right level of social competence needed. The utilization of social competence at higher rather than lower levels could mean more costs and more training for which the business may not have immediate use. Originality value This paper advocates the need to improve the content of entrepreneurial training packages to include the reinforcement of social competency skills in terms of relationship management as this may be the key to the facilitation of access to resources for innovation and growth.

scholarly journals The development of trust over time in an emerging market context: the case of the Tunisian automotive sector

2019 ◽  
Vol 34 (6) ◽  
pp. 1210-1222 ◽  
Author(s):  
Tibor Mandják ◽  
Samy Belaid ◽  
Peter Naudé
Keyword(s):  
Emerging Market ◽  
Qualitative Interviews ◽  
Spare Parts ◽  
Point Of View ◽  
Business Relationship ◽  
Content Type ◽  
Perceived Trust ◽  
Emerging Country ◽  
The Relationship

Purpose The purpose of this paper is to empirically investigate how context influences the quality of business relationships. This theoretical question is studied from the point of view of trust, one of the important components of business relationship quality. The authors study how trust is related to the dynamics and management of the business relationship in the context of an emerging market. Design/methodology/approach This paper is based on qualitative interviews with 15 spare-parts resellers in the Tunisian automotive industry. The authors take a monadic view, interviewing resellers about their relationships with their wholesalers-importers. The decision to undertake the research in Tunisia is based on three factors. First, Tunisia is an emerging country and there is very little published research based in the Maghreb countries. Second, the Tunisian automotive parts market structure is relatively simple and, hence, easily understood, with most spare-parts being imported because of the low level of local production. Third, the actors in the study are all Tunisian companies, so research allows us to explore relationships between local companies in an emerging country. Findings The authors find that different kinds of trust play different roles over the dynamics of the relationship. Perceived trust is more important at the emergent stage of a relationship, and as the two parties learn from each other, experienced trust becomes more important in the established relationships. The initial perceived trust creates the possibility of building trust, and when mutual trust exists between the parties, it motivates them to maintain the relationship, but there is always the threat of the degradation of the quality of the relationship because of the violation or destruction of the trust. Research limitations/implications This paper shows that more care should be taken when using trust as the variable under scrutiny. Different aspects of trust manifest themselves at various stages of the relationship building cycle. Practical implications The results emphasize that when initiating a business relationship, managers first need to create perceived trust. Thereafter, once trust is built up, it is the trust that may “manage” or act to control the on-going relationship as long as the partners’ behavior or network changes do not violate the trust. Originality/value The results of this paper show that there is a mutual but not necessarily symmetrical or balanced influence of trust on the behavior of the partners involved. The influence of the different parties is dependent on the power architecture, the history of the relationship and the network position of the actors.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

scholarly journals The impact of related party transactions on firm value

2019 ◽  
Vol 17 (3) ◽  
pp. 571-588
Author(s):  
Ahmed A. Diab ◽  
Ahmed Aboud ◽  
Arafat Hamdy
Keyword(s):  
Firm Value ◽  
Design Methodology ◽  
Emerging Market ◽  
Content Type ◽  
Related Party Transactions ◽  
Intermediary Role ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

Quality of working life and career engagement of cancer survivors: the mediating role of effect of disease and treatment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Raba’ah Hamzah ◽  
Siti Nur Syuhada Musa ◽  
Zulaiha Muda ◽  
Maimunah Ismail
Keyword(s):  
Cancer Survivors ◽  
Working Life ◽  
Valuable Insight ◽  
Quality Of Working Life ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims at investigating the relationship between the quality of working life and career engagement of cancer survivors and the mediating role of the effect of disease and treatment. Design/methodology/approach A cross-sectional study was conducted on 400 cancer survivors in Malaysia. The participants, aged between 18 and 40, were Malaysian citizens undergoing follow-up sessions at the Kuala Lumpur General Hospital and the National Cancer Institute of Malaysia. Data were analysed using descriptive statistics, Pearson’s correlation coefficient and regression analysis that implemented Baron and Kenny’s method for mediation were used for analyses. Findings The effect of treatment and disease was found to significantly mediate the relationship between quality of work-life and career engagement of cancer survivors. Research limitations/implications The instrument for this study was a self-reported questionnaire, with participants responding to specific items on a five-point Likert scale under the supervision of the researchers. As results from the survey were subjective in nature, the bias in the participants could not be eliminated completely. This study was also limited to the two main parameters, namely, quality of working life and career engagement and a mediator, namely, effects of the disease and treatment. Moreover, as the survey was conducted in only two hospitals in the Klang Valley area, the results cannot be generalized to other cancer survivors in other regions of Malaysia. Practical implications The results of this study indicated that the mediating role of the effects of disease and treatment on the relationship of the quality of working life subscales with career engagement. Practical implications, cancer survivor consciousness of the effects of disease and treatment is very important and should be addressed and could be notable to improve the quality of working life. Originality/value This study gives valuable insight to managers and practitioners by investigating the relationship between the quality of working life and career engagement and mediates by the effects of disease and treatment. The findings highlight the challenges cancer survivors face on their return to working life. The findings also highlight the need for management to take steps to help cancer survivors cope with career engagement for better work performance.

Demographic variables as moderators between QWL and OCB

2019 ◽  
Vol 51 (7/8) ◽  
pp. 396-408
Author(s):  
Mohit Yadav ◽  
Santosh Rangnekar ◽  
Anugamini Priya Srivastava
Keyword(s):  
Organizational Citizenship ◽  
Demographic Variables ◽  
Quality Of Work Life ◽  
Content Type ◽  
Study Process ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of quality of work life (QWL) on organizational citizenship behaviour (OCB) of employees. Also, the paper examines the role of demographic variables, i.e. gender, position and type of organization as moderators of relationship between QWL and OCB. Design/methodology/approach A survey with sample of 375 was used in this study. PROCESS tool by Hayes (2013) was used to analyze the relation between QWL, OCB and demographic variables. Findings QWL was found to positively influence OCB. Gender and type of organization were found to moderate the relationship, whereas position failed to moderate the relation significantly. Practical implications The study reinforced the significance of QWL practices by organizations to improve extra-role behaviours of employees. Also, importance of considering gender and the industry you are in is emphasized in using and designing the QWL programme for employees. Originality/value While many antecedents have been studied in relation to OCB, QWL is rarely discussed. The paper attempts to reemphasize QWL’s importance in doing so in light of demographic variables as moderators.

The antecedents and outcomes of transformational leadership: leader's self-transcendent value, follower's environmental commitment and behavior

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shujie Zhang ◽  
Wei Sun ◽  
Haochen Ji ◽  
Junyun Jia
Keyword(s):  
Transformational Leadership ◽  
Positive Impact ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Environmental Commitment ◽  
Mediating Role ◽  
Confirmatory Factor ◽  
And Behavior ◽  
The Relationship

PurposeThe primary purpose of this paper is to identify the antecedent (i.e. leader's self-transcendent value) and outcomes (i.e. follower's environmental commitment and behavior) of transformational leadership. The second purpose is to examine the mediating role of transformational leadership plays in the relationship between leader's self-transcendent value and follower's environmental commitment and behavior.Design/methodology/approachMulti-source data were collected at multiple times in China. A total of 262 employees and their 64 supervisors completed the survey. The authors conducted a series of confirmatory factor analyses (CFAs) to verify the validity of the constructs and adopted the SPSS PROCESS macro with bootstrapping techniques to test the hypotheses.FindingsThe authors find that leader's self-transcendent value is an important antecedent of transformational leadership, and transformational leadership can enhance followers' environmental commitment and foster their environmental behavior. Besides, transformational leadership plays a significant mediating role between leader's self-transcendent value and follower's environmental commitment and behavior.Originality/valueThis study has developed an integrated model of the antecedents and outcomes of transformational leadership in the Chinese context. It also confirmed that transformational leadership mediates the process through which leader's self-transcendent value has a positive impact on follower's environmental commitment and behavior.

scholarly journals Does D&O insurance matter for stock price crash risk? Evidence from an Asian emerging market

2019 ◽  
Vol 3 (1) ◽  
pp. 34-46
Author(s):  
Ming-Te Lee ◽  
Kai-Ting Nien
Keyword(s):  
Corporate Governance ◽  
Stock Price ◽  
Emerging Market ◽  
Insurance Coverage ◽  
Crash Risk ◽  
Governance Mechanisms ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
The Relationship

Purpose The purpose of this paper is to address the opposing views of the relationship between directors’ and officers’ liability insurance (D&O insurance) and stock price crash risk in a major Asian emerging stock market. Design/methodology/approach This paper finds an endogenous relationship between D&O insurance and stock price crash risk. Hence, the two-stage least squares regression analysis is used to address the endogeneity issue when the relationship is examined. Moreover, this paper further controls the quality of other corporate governance mechanisms to investigate whether D&O insurance still has an effect on stock price crash risk. Findings The effect of D&O insurance coverage is significantly negatively related to firm-specific stock price crash risk in Taiwan. More importantly, even when the quality of other corporate governance mechanisms is controlled, the negative relationship between D&O insurance coverage and firm-specific stock price crash risk remains significant. The evidence supports that D&O insurance serves as an effective external monitoring mechanism, strengthens corporate governance, and thus reduces stock price crash risk. Originality/value Emerging Asian markets suffer a dearth of research on the relationship of D&O insurance coverage and the firm-specific stock price crash risk. Investigating the relationship in Taiwan, the present study fills the research void. The findings show that D&O insurance plays an important role in reducing stock price crash risk of Taiwanese firms even when other corporate governance mechanisms are in place.

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