Small–Business Group Formation as an Entrepreneurial Development Model

2009 ◽  
Vol 33 (3) ◽  
pp. 645-667 ◽  
Author(s):  
Christian Lechner ◽  
Christophe Leyronas
Keyword(s):  
Small Business ◽  
Market Failure ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Management Style ◽  
Medium Size ◽  
Entrepreneurial Firms ◽  
Theoretical Approaches ◽  
Related Diversification

Why do small–business groups in developed countries exist? Research has shown the strong economic impact of business groups throughout the world but remains heavily focused on large–business groups and on emerging economies. Theoretical approaches to explain the existence of highly diversified business groups range from market power to the resource–based view and include market failure, transaction costs, agency theory, and cultural embeddedness. These approaches, however, are not very appropriate to explain the existence of small to medium–size firms in developed countries. What we know is that these smaller groups exist and that they are largely the outcome of related diversification. We investigate relatively small and young–business groups organized in a holding structure. What are the perceived benefits of this kind of group for entrepreneurs and how can we explain the phenomenon theoretically? Based on case study research, we argue that the small–business group is both the outcome and the antecedent of growth. It enables, and helps to realize and manage the growth of entrepreneurial firms. The enabling function consists in increasing reputation, attracting complementary resources that facilitate the exploitation of new opportunities, overcoming overembeddedness, and dealing with coopetition (concurrent cooperative and competitive relationships with another company). The group is also the outcome of realized internationalization and related diversification. Interestingly, for the emergence of the small–business group, just as important as diversification is the integration of activities as well as the separation of closely linked activities. Finally, the small–business group corresponds to an entrepreneurial management style. The main contribution of this article is to link organizational structure to the management and growth of entrepreneurial firms.

Parenting Advantage in Business Groups of Emerging Markets

2007 ◽  
Vol 11 (3) ◽  
pp. 1-10 ◽  
Author(s):  
Anurag Mishra ◽  
M. Akbar
Keyword(s):  
Emerging Markets ◽  
Group Structure ◽  
Emerging Market ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Managerial Practices ◽  
Developed Economies ◽  
Divisional Structure ◽  
Made In

The concept of parenting was originally proposed by Campbell et al (1995) in the context of conglomerates in developed economies. In contrast to the divisional structure of conglomerates in developed countries, business groups as found in most emerging consist of a network of affiliated yet independent firms. This difference in the structure of multi-business firms in developed and emerging markets solicits a revisiting the concept of parenting as originally proposed by Campbell et al. (1995). Does ‘parenting advantage’ exist in emerging markets? If so, what are the sources of ‘parenting advantage’? Given the multi-firm, multi-business group affiliated setup how does ‘parenting’ differ in emerging markets when compared to conglomerates of developed economies? How does the business group structure and associated managerial practices impact ‘parenting advantage’ of firms affiliated to a business group in emerging market? This paper examines some of these critical yet unanswered questions. The contribution made in this work is threefold… One, we redefine the concept of ‘parenting’ as relevant to business group structure found in emerging markets like India. Two, we articulate the drivers of parenting value for affiliate firms bound in a business group structure. Three, the paper discusses the nuances of parenting and its advantages in an emerging market, in contrast to its conceptualization in developed economies. Finally, extending the parenting literature to a wider context of an emerging market is an important outcome of this work.

scholarly journals Business Group Affiliation and Firm Performance—Evidence from Pakistani Listed Firms

2018 ◽  
Vol 57 (3) ◽  
pp. 351-371
Author(s):  
Waseemullah . ◽  
Arshad Hasan
Keyword(s):  
Agency Theory ◽  
Market Failure ◽  
Business Groups ◽  
Business Group ◽  
Performance Measure ◽  
Sample Period ◽  
Group Affiliation ◽  
Internal Markets ◽  
Excess Value ◽  
Business Group Affiliation

This study analyses the financial performance of business group affiliated firms relative to stand-alone firms in Pakistan. The investigations are done across the sample period of 1993-2012. The study employs ‘Chop shop’ methodology to construct the excess values (performance measure); in order to compare the results with earlier well documented studies of both developed and emerging countries. Both univariate and regression analyses clearly demonstrate that group affiliated firms are trading at discount (underperform relative to stand-alone firms) during the sample period. Despite the historical success in the past, the findings suggest that business groups evolve differently in the post financial reforms and privatisation programs era. The findings are consistent with the market failure argument and agency theory. However, the study finds a little evidence of efficient internal markets of Pakistani business groups. Keywords: Business Groups, Group Affiliation, Excess Value, Market Failure Theory, Agency Theory, Chop Shop Methodology

DEVELOPMENT OF THE TRADE ENTERPRISE SUBJECTS LOGISTICS SYSTEM AND ITS UTENSIC-CRITERIAL CHARACTERISTICS

2019 ◽  
pp. 67-93
Author(s):  
Nataliia MITSENKO ◽  
Igor MISHCHUK
Keyword(s):  
Small Business ◽  
Logistics Management ◽  
Business Sector ◽  
Research Subjects ◽  
Conceptual Approach ◽  
Logistics System ◽  
Commodity Flows ◽  
Trading Company ◽  
Theoretical Approaches ◽  
Business Entities

The main purpose of the publication is the development of theoretical approaches, systematization of the results of analysis and definition of measures for the formation of logistic systems of trade enterpreneurship subjects (trade enterprises), which belong to the small business sector. The peculiarities of formation were identified and the problematic aspects of the modern stage of entrepreneurship development in Ukraine were identified. The existence of the logistic component in the general complex of the conduct of trading activity by the entrepreneurship subjects is determined. The essence and ratio of concepts «system of logistic» and «logistics system» of the enterprise are determined. The objective of the logistics system organization as a complex, economic and technical and technological system covering the logistics system of the enterprise is emphasized), personnel of the management services of the enterprise logistic activity, as well as legal, organizational,managerial and methodical principles of all these elements interaction of the system and its management, formed on the basis of the scientific and theoretical basis (theory) of logistics management. The peculiarities of the functioning of small business entities in Ukraine and the averaged parameters of commodity flows in this sector of economy are investigated, factors of logistic flows organization specificity formation in the retail segment, which influence the requirements for the creation and operation of trade enterprises logistic systems and the choice of approaches to them, are determined. The attention is drawn to the need to consider as the main factor in the formation of the trade complex system of logistic of operational and functional processes of logistics activities, which are carried out by a trading company in order to bring commodity flows to end buyers of goods. The necessity of determining the structure of the logistics system of the trading company is focused on taking into account the resources available from the dealer in order to create opportunities for organizational, economic, technical and technological interaction with other supply chain participants in which the given enterprise is involved, and simultaneously ensuring compliance of the goods sold with the requirements end buyers. The key directions of logistic activity improvement of enterprises of trade – subjects of small (and micro) entrepreneurship, which are connected with technical and technological and infrastructure improvements within the enterprise logistics system, introduction of modern management technologies in the logistics management subsystem and logistics administration, are grounded, as well as the use of outsourcing capabilities of logistics functions and operations and the use of modern communication tools for the radical change of trade technologies , which will be reflected in the requirements for organizing a complex of logistics activities of retailers and, accordingly, logistic systems created by them. The purpose of the research is to develop theoretical approaches, to systematize the results of the analysis of the essential characteristics and the composition of the trade company system of logistics, and to identify the main measures for the formation of the system of logistics of the subjects of trade enterprise (trade enterprises), which belong to the small business sector. Object of research – subjects of trade enterprise – trade enterprises, which belong to the small business sector. The subject of the study is theoretical and methodological principles of logistic activity organization and conceptual approaches to the construction of logistic formations in the conditions of integration processes. In accordance with the goal formulated, the main objectives of the study: • on the basis of analysis of the most common scientific theories to determine mechanisms for managing them; • to identify new approaches for identifying the essence of logistics, the content of logistics activities of trade enterprises and identify the actual problems of their construction; • to formulate a conceptual approach, basic principles and applied principles of organization of logistic formations with the participation of small business entities; • to develop scientific and practical recommendations on the construction of trade enterprises systems of logistics and their development taking into account the integration processes in the field of commodity circulation.

Australia

2018 ◽  
Author(s):  
Simon Ville
Keyword(s):  
Twentieth Century ◽  
Multinational Corporations ◽  
Business Model ◽  
Capital Markets ◽  
Business Groups ◽  
Business Group ◽  
Modern History ◽  
Resource Base ◽  
Australian Economy ◽  
Diversified Portfolio

Business groups have been limited in number and influence for most of Australia’s modern history. Several entrepreneurs managed a diversified portfolio of interests, and business families often cooperated with one another, but this rarely took the form of a business group. When the Australian economy diversified into manufacturing from its initial narrow resource base, multinational corporations formed a dominant presence. Governments built infrastructure but did not facilitate groups. Maturing capital markets negated the need for in-house treasuries. Business groups temporarily dominated the corporate landscape for several decades towards the end of the twentieth century, but their business model was flawed in relation to the Australian environment and most failed to survive the downturn of the late 1980s and early 1990s.

Study on reasons of Failure of Small and Medium Enterprises: Looking into Egypt case

2019 ◽  
pp. 43-54
Author(s):  
Hazem Hanbal ◽  
◽  
Saad Metawa ◽  
Keyword(s):  
Middle East ◽  
Small Business ◽  
Private Sector ◽  
Small Business Administration ◽  
Business Failure ◽  
Medium Size ◽  
The European Union ◽  
Formal Sector ◽  
Mena Region ◽  
The Government

Globally, Small and Medium Size Enterprises (SMEs) are considered the main contributors to economic activities. In the European Union, SMEs account for around 67 percent of the overall employment by the private sector and were considered the cushion that protected the economy during the recent financial crisis in 2008 [2]. While in the USA, and according to the Small Business Administration and Small Business House, SMEs are responsible for more than half of the private sector non-farm GDP of the nation. In the Middle East and North Africa (MENA) region, a recent study by the World Bank revealed that SMEs employ around 40 percent of the workforce in the formal sector (non-agriculture). This number would increase if the informal sector were included. Generally, SMEs are seen as the potential for economic development and a significant source for jobs creation, especially when looking into developing countries. In Egypt, with the declining role of the government being the primary employer until the nineties of last century, and the private sector taking over this role, and the fact that SMEs are the significant portion of the private sector, it is significantly essential to support SMEs for the creation of new jobs, and overall social stability. Constrains facing SMEs are many and are usually different from those facing large businesses. It is also observed that rates of business failure within SMEs are generally higher than with large corporates. This paper aims to seek to identify the reasons behind the failure of SMEs, with a look into the Egyptian and Middle East situations.

scholarly journals Dividend Policy Decisions in India: Standalone Versus Business Group-Affiliated Firms

2018 ◽  
Vol 20 (1) ◽  
pp. 133-150 ◽  
Author(s):  
Nishant B. Labhane
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Business Groups ◽  
Business Group ◽  
Business Risk ◽  
Policy Decisions ◽  
Financial Leverage ◽  
Dividend Payout ◽  
Investment Opportunities ◽  
High Investment

This study examines the determinants of two important dividend policy decisions specifically the dividend payment decision and the dividend payout level decision of 781 sample Indian firms enlisted on National Stock Exchange (NSE) over the period, 1995–2015, comparing the business group-affiliated firms with the standalone firms. In term of characteristics, the business group-affiliated firms are larger, more profitable and more levered than the standalone firms. The empirical results suggest that the dividend policy decisions of business group-affiliated firms differ significantly from that of the standalone firms. In the case of standalone firms, the firms with high investment opportunities, high financial leverage and high business risk are less likely to pay dividends, and their dividend payout levels are lower. On the other hand, the firms affiliated with business groups are more likely to pay dividends, and their dividend payout levels are higher even when they have high investment opportunities, high financial leverage and high business risk. Overall, the findings suggest that although the business groups are able to create internal capital markets (ICMs) and shield their member firms from market imperfections, they may suffer from other information asymmetry problems.

scholarly journals Corporate Social Responsibility, Brand Image and Firm Reputation in Mexican Small Business

2017 ◽  
Vol 7 (3) ◽  
pp. 38 ◽  
Author(s):  
Gonzalo Maldonado-Guzman ◽  
Sandra Yesenia Pinzón-Castro ◽  
Cid Leana-Morales
Keyword(s):  
Corporate Social Responsibility ◽  
Small Business ◽  
Social Responsibility ◽  
Brand Image ◽  
Research Paper ◽  
Medium Size ◽  
Firm Reputation ◽  
Marketing Literature ◽  
Corporate Social ◽  
Empirical Investigations

Several investigations are commonly found in marketing literature but there are relatively few theoretical and empirical researches that associate marketing with corporate social responsibility (CSR). There are even less empirical investigations that relate these two important constructs with firm reputation of enterprises aimed to small and medium-size enterprises (SMEs) which shows a clear void in literature regarding the existing relation between CSR activities, brand image of products or services created by enterprises and their firm reputation. For this reason, the main objective of this research paper is the analysis of the existing relation between CSR activities, firm reputation and brand image of products or services of SMEs by using a sample of 308 enterprises from Aguascalientes State. The results obtained show that CSR activities have positive and significant effects in both the firm reputation and brand image of products or services created by SMEs.

scholarly journals ANALISIS MANAJEMEN RISIKO PEMBIAYAAN MUSYARAKAH PADA BAITUL QIRADH BINA INSAN MANDIRI BANDA ACEH

2014 ◽  
Vol 3 (1) ◽  
Author(s):  
Badratun Nisak ◽  
Azharsyah Ibrahim
Keyword(s):  
Risk Management ◽  
Small Business ◽  
Management System ◽  
Business Group ◽  
Business Risk ◽  
Risk Management System ◽  
And Control ◽  
Banda Aceh ◽  
Monitor And Control

Risk management is a set of procedures and methodologies that used to identify, measure, monitor, and control risks that could be aroused from the business of banks. This article aims to analyze the implementation of risk management system at Baitul Qiradh Bina Insan Mandiri and its impact on musharaka financing. The sample for this research is Micro Small Business Group at Kuta Alam’s regency which was financed by the Baitul Qiradh. Data for this research was gathered through interviews, observation, and documentation study. The findings suggest that there were three risk possibilities that could escalate at the financing project, namely business risk, shrinking risk, and character risk. Among these risks, the Baitul Qiradh experiences two of them, which were business and character risks. Therefore, the efforts were made to minimize the risk of Baitul Qiradh Bina Insan Mandiri by applying the 5C concept, namely character, capability, capital, condition, and collateral). ========================================================================================================Manajemen risiko adalah serangkaian prosedur dan metodologi yang digunakan untuk mengidentifikasi, mengukur, memantau, dan mengendalikan risiko yang timbul dari kegiatan usaha bank. Tujuan penelitian adalah untuk menganalisis sistem manajemen risiko yang diimplementasikan pada Baitul Qiradh Bina Insan Mandiri dan dampaknya terhadap kelancaran pembayaran dalam pembiayaan musyarakah. Pembahasan kajian hanya terfokus ke manajemen risiko pembiayaan musyarakah pada kelompok usaha dalam Rumpun Kuta Alam yang dibina oleh Baitul Qiradh Bina Insan Mandiri Banda Aceh. Pengumpulan data dilakukan dengan wawancara, observasi, dan studi dokumentasi. Hasil penelitian menunjukkan bahwa dalam melakukan pembiayaan tersebut Baitul Qiradh Bina Insan Mandiri tidak terlepas dari kemungkinan terjadinya 3 aspek risiko, yaitu: risiko bisnis yang dibiayai (busness risk), risiko berkurangnya nilai pembiayaan (shrinking risk), dan risiko karakter buruk mudharib (character risk). Dari ketiga aspek risiko tersebut, risiko pembiayaan musyarakah yang muncul dalam tiga kelompok usaha pada Rumpun Kuta Alam adalah risiko bisnis yang dibiayai (business risk) dan risiko karakter buruk mudharib (character risk). Upaya yang dilakukan untuk meminimalisir risiko tersebut, Baitul Qiradh Bina Insan Mandiri menerapkan secara ketat konsep 5C yaitu karakter (character), kapasitas atau kemampuan (capacity), modal (capital), kondisi (condition) dan jaminan (collateral).

scholarly journals ANALISIS KINERJA PENYULUH TERHADAP PEMBERDAYAAN KELOMPOK USAHA PETERNAKAN SAPI DI DESA TONDEGESAN KECAMATAN KAWANGKOAN KABUPATEN MINAHASA

ZOOTEC ◽  
2019 ◽  
Vol 39 (1) ◽  
pp. 101
Author(s):  
Indah Th.P Sondakh ◽  
J A Malingkas ◽  
J Lainawa ◽  
G D Lenzun
Keyword(s):  
Data Collection ◽  
Sampling Method ◽  
Business Groups ◽  
Business Group ◽  
Extension Agents ◽  
Cattle Breeding ◽  
Productivity Level ◽  
Study Population ◽  
Using Data ◽  
The Village

ABSTRACTANALYSIS OF INSTRUCTOR PERFORMANCE TO EMPOWERING CATTLE BREEDING BUSINESS GROUP AT TONDEGESAN VILLAGE OF KAWANGKOAN DISTRICT. The purpose of this study was to analyze the performance of instructors on empowerment of cattle business groups in Tondegesan Village, Kawangkoan District, Minahasa Regency. This research was carried out by using data miles and huberman analysis which was carried out when the data collection took place in the field. The study population was all members of the serentape business group. The sampling method for farmers is based on indications to assess performance, namely productivity, responsiveness, and responsibility. The results showed that the performance of extension agents was mostly in the successful category. The success of the instructor's performance in the productivity level is in the successful category with a percentage of 93.33%, in the level of responsiveness in the successful category with a percentage of 73.33%, and the level of responsibility in the successful category with a percentage of 93.33%. Based on the research,concluded that the performance of the instructor towards the empowerment of business groups in the village of Tondegesan, Kawangkoan Subdistrict which was measured in terms of productivity, responsiveness and responsibilitysuccessful.Keywords: Performance, Extension, Empowerment

Sign in / Sign up

Export Citation Format

Share Document