scholarly journals Societal, Culture and Entrepreneurial Opportunities Exploitation of New Venture Activities: Mediating Role of Proactiveness

2018 ◽  
Vol 5 (2) ◽  
pp. 41
Author(s):  
Wang Xuhui ◽  
Jia Liu ◽  
Frida Pacho
Keyword(s):  
Developing Economies ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
New Venture ◽  
Opportunity Exploitation ◽  
Mediating Role ◽  
Societal Culture ◽  
Proactive Behaviour ◽  
Societal Level

An unanswered question is concerned with the influence of culture of individualism, power distance and uncertainty avoidance in entrepreneurs’ opportunity exploitation of new venture activities in developing economies in the context of societal level. Based on the sample of 130 individual entrepreneurs in Tanzania, this paper analyses how culture of individualism, uncertainty avoidance and power distance influence entrepreneurial opportunity exploitation of new venture activities on societal level.  The results indicated that the culture of individualism contributes highly on entrepreneurs’ opportunity exploitation of new venture activities. The results of uncertainty avoidance imply that the greater the uncertainty avoidance, the less the entrepreneurs’ chance to exploit opportunities of new venture activities. The proactive behaviour that was used as a mediator variable also contributes to the relationship between individualism, uncertainty avoidance and entrepreneurs’ opportunity exploitation of new venture activities. The study has made a contribution to the developing countries literature by focusing on individual entrepreneurs on societal level.

The influence of culture in entrepreneurs’ opportunity exploitation decision in Tanzania

2019 ◽  
Vol 11 (1) ◽  
pp. 22-43 ◽  
Author(s):  
Jia Liu ◽  
Frida Thomas Pacho ◽  
Wang Xuhui
Keyword(s):  
Risk Taking ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Formal Institutions ◽  
Entrepreneurial Opportunity ◽  
Content Type ◽  
Opportunity Exploitation ◽  
Empirical Results ◽  
Two Cities ◽  
Risk Taking Behavior

Purpose The purpose of this paper is to empirically explore the impact of culture (using individualism, power distance and uncertainty avoidance) on entrepreneurial risk taking behavior which leads to the opportunity exploitation decision. Moreover, it also uses risk taking behavior of entrepreneurial as the mediation variable between culture and opportunity exploitations decisions. Design/methodology/approach The study took place in Tanzania, which is allocated in East Africa and is one of under researched countries. In total, 140 entrepreneurs who own venture of 5-99 employees were able to be interviewed using a survey questionnaire. In this study, structural equation modeling (SEM) was used to examine the direct and indirect relationship of culture in entrepreneurial opportunity exploitation decisions. Findings After hypothesis testing, the empirical results showed that Tanzania’s culture has an impact on entrepreneurial risk taking behavior, which influences entrepreneurial opportunity exploitation decision. It also showed culture through individualism and uncertainty avoidance measurements affect entrepreneurial opportunity exploitation decisions. The empirical results on power distance were insignificant. Research limitations/implications This study is a wake-up call to policy makers and formal institutions such as government authorities, education institutions and religion institutions. Thus, culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Generalizability is questioned because the data are from only two cities in Tanzania and therefore future research should include more cities to be able to validate the generalizability. Practical implications This study is a wake-up call to policymakers and formal institutions such as government authorities, education institutions and religion institutions. Thus culture has an ability to influence the behavior of entrepreneurs and so the performance of ventures if it is consistent and well structured. Therefore it should be not taken for granted. Data for our study are based on only two cities and therefore the results should not be generalized as the whole country’s inference. Social implications In the country which has well-structured culture, influence the behavior of entrepreneurs to exploit opportunities. Originality/value This is the first empirical study to use SEM for exploring the culture of individualism, power distance and uncertainty avoidance impact on entrepreneurial opportunity exploitation in Tanzania.

scholarly journals An assessment of the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya

2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana
Keyword(s):  
Firm Performance ◽  
Power Distance ◽  
Multinational Companies ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Manufacturing Companies ◽  
Cultural Orientations ◽  
The Relationship ◽  
Moderating Role

Orientation: This article investigates the question, of whether culture really matters in implementing international strategic human resource management (SHRM) practices.Research purpose: Specifically, this study sought to investigate the extent to which employee cultural orientations moderate the link between SHRM practices and firm performance in large foreign manufacturing multinational companies in Kenya. Motivation for the study: Large foreign multinational companies have generally applied SHRM practices without adaptation when trying to improve employee performance even though resource based perspectives argue for the consideration of employees’ cultural orientations. Research design, approach and method: SHRM practices were conceptualised as independent variables measured through distinct practices. Organisational performance as a dependent variable was measured using constructs of image, interpersonal relations, and product quality. Cultural dimensions adopted for this study were power distance, uncertainty avoidance, individualism or collectivism, and masculinity or femininity. The above conceptual framework was tested by the use of both quantitative and qualitative techniques with data from fifty (50) large foreign multinational companies operating in Kenya. Main findings: Findings indicated that the relationship between SHRM practices and firm performance depend to a greater extent on employee cultural orientations when power distance is considered. Power distance (PD) refers to the extent of people accepting that power in institutions and organisations when distributed unequally. The greater the PD, the greater the acceptance of this inequality. Practical/managerial implications: The study supported the notion that the relationship between SHRM practices and firm performance is moderated by power distance through motivation but not by the other three bipolar dimensions namely, Uncertainty Avoidance, Masculinity or Femininity and Individualism or Collectivism. Contribution/value-add: This is the first large-scale empirical article that has focused on the moderating role of employees’ cultural orientations in large foreign manufacturing companies operating in Kenya.

scholarly journals Does CSR Enhance Young Bank Customers’ Satisfaction and Loyalty in a Developing Economy? The Mediating Role of Trust

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Rabia Rasheed ◽  
Stella Zulu-Chisanga
Keyword(s):  
Customer Satisfaction ◽  
Developing Economies ◽  
Positive Association ◽  
Business Environment ◽  
Corporate Identity ◽  
Point Of View ◽  
Mediating Effect ◽  
Mediating Role ◽  
Customer Satisfaction And Loyalty

The role of corporate social responsibility (CSR) on firm performance is well documented in the literature. Although the majority of the evidence available points to a positive association between CSR and determinants of company performance such as monetary performance, personnel commitment and corporate identity, findings still remain rather inconclusive as negative or no correlation results are also reported. In addition, little is known about how CSR is perceived from a bank customer’s point of view and studies examining its effect on customer satisfaction and loyalty in developing economies are scanty. Drawing insights from the stakeholder and signaling theories, this study examines the effect of CSR on customer satisfaction and customer loyalty. The study also examines the mediating role of trust on these relationships. Data from 348 bank customers in Zambia indicate that CSR positively affects satisfaction and loyalty. It was also established that trust has a significant mediating effect on the relationships. With the increase in complexity and dynamism of today’s business environment banks are advised to be more socially responsible as one way of building trust and customer satisfaction and loyalty.

Firm Performance and Employee Downsizing: The Moderating Role of National Culture

2017 ◽  
Vol 18 (2) ◽  
pp. 1-31
Author(s):  
Andre Honoree ◽  
Mario Krenn
Keyword(s):  
Firm Performance ◽  
National Culture ◽  
Power Distance ◽  
Institutional Context ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Future Directions ◽  
Research And Practice ◽  
Moderating Role

A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.

Examining the effect of functional diversity on organizational team innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gladys Esinu Abiew ◽  
Eugene Okyere-Kwakye ◽  
Florence Yaa Akyia Ellis
Keyword(s):  
Functional Diversity ◽  
Structural Equation ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Content Type ◽  
Team Innovation ◽  
The Relationship ◽  
Moderating Role

Purpose Underpinned by the information processing theory, this study aims to investigate the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation. Design/methodology/approach A quantitative research method was used using a structured questionnaire as a tool to collect data from 251 respondents drawn from research institutions in Ghana. Data was analysed using simple regression and hierarchical multiple regression. In addition, a structural equation model was used to conduct confirmatory factor analyses to examine whether the variables in the hypothesized model for the study captured distinct constructs that the variables were designed to measure. Findings The study revealed that functional diversity was positively related to team innovation. The study also found that functionally diverse groups are more innovative when they exhibit low uncertainty avoidance, femininity and low power distance. Practical implications These findings suggest that practices such as team communication, honesty, respect and trust would foster team unity and commitment, which would enable members to share diverse expertise towards the creation and execution of new ideas and improvement of productivity in the country. Originality/value The study examined the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation.

Culture and Knowledge Transfer Capacity

2012 ◽  
pp. 305-332 ◽  
Author(s):  
Omar E. M. Khalil ◽  
Ahmed Seleim
Keyword(s):  
Knowledge Transfer ◽  
Gross Domestic Product ◽  
National Culture ◽  
Future Orientation ◽  
Power Distance ◽  
Control Variable ◽  
Uncertainty Avoidance ◽  
Gender Egalitarianism ◽  
Research Findings ◽  
Societal Level

Increasing interest exists in understanding the factors that explain knowledge transfer capacity (KTC) at the societal level. In this paper, the authors posit that national culture may explain the differences among countries in their knowledge transfer capacities. The authors adopt House and colleagues’ (2004) national culture taxonomy as the theoretical framework to derive and test eighteen hypotheses relating national culture values and practices to societal KTC. KTC correlates positively with gender egalitarianism values, uncertainty avoidance practices, and future orientation practices. KTC also correlates negatively with uncertainty avoidance values, future orientation values, institutional collectivism values, in-group collectivism values, humane orientation practices, in-group collectivism values and practices, and power distance practices. Further analysis using gross domestic product (GDP) as a control variable revealed that only humane orientation practices influence KTC. The research findings are discussed, research limitations are identified, and implications are drawn.

Cognitive Biases, Risk Perception, and Individual's Decision to Start a New Venture

2018 ◽  
Vol 9 (3) ◽  
pp. 14-29 ◽  
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Risk Perception ◽  
Cognitive Biases ◽  
New Venture ◽  
Illusion Of Control ◽  
Mediating Role ◽  
Correlation And Regression Analysis ◽  
Reduce Risk ◽  
Relationship Of ◽  
The Relationship

The purpose of this article is to investigate the relationship of overconfidence and illusion of control towards the start of new venture, taking in consideration the mediating role of risk perception in the context of Tunisia. This article examines students' responses to surveys based on a teaching case titled “Optical Distortion, Inc.” The authors tested hypotheses by correlation and regression analysis. The results show that the perception towards risk associated with new venture plays an important role in decision-making. Moreover, they find that overconfidence and illusion of control reduce risk perception associated to the decision to start a venture. While overconfidence directly affects the decision to start a venture and indirectly through its effect on reducing the risk perception, illusion of control has neither a direct nor an indirect impact on that. These results partially confirm those of Simon show that the mediation exists but partially.

How can entrepreneurs achieve success in chaos?

Kybernetes ◽  
2019 ◽  
Vol 49 (5) ◽  
pp. 1407-1428 ◽  
Author(s):  
Lihui Xia ◽  
Biao Luo ◽  
Ying Sun
Keyword(s):  
New Ventures ◽  
Emerging Economy ◽  
New Venture ◽  
Hierarchical Regression ◽  
Content Type ◽  
Mediating Role ◽  
Venture Performance ◽  
Key Variables ◽  
New Venture Performance

Purpose This paper aims to explore the mediating role of organizational entrepreneurial capability in the link between entrepreneurs’ effectuation and new venture performance, and whether entrepreneurs’ passion positively moderates this relationship in the Chinese emerging economy. Design/methodology/approach This study collected survey data from 140 Chinese new ventures. Following an empirical design, hierarchical regression analysis and bootstrapping analysis were applied to examine six hypotheses. Findings Results reveal that organizational entrepreneurial capability plays a positively mediating role in the association between entrepreneurs’ effectuation and new venture performance. Moreover, the whole mediation model is positively moderated by entrepreneurs’ passion, not only the association but also between entrepreneurs’ effectuation and organizational entrepreneurial capability. Research limitations/implications The study is limited to the static relationships between key variables using the data obtained at one point in an emerging economy, which cannot investigate the dynamic evolution between variables. More longitudinal designs or cases to track the dynamic association should be considered. Practical implications The findings provide useful suggestions for entrepreneurs to enhance their effectual logic and entrepreneurs’ passion to better perceive and exploit opportunities and further improve new venture performance. The results also provide guidance for other groups, such as angel investors and policymakers, regarding how to use effectuation logic as an evaluation criterion to judge whether a new venture or program has investment potential. Originality/value These findings enrich the effectuation theory by providing the empirical evidence of the effect of entrepreneurs’ effectuation on new venture performance in an emerging economy. They also provide deeper insights into opportunity research by uncovering the mediating role of organizational entrepreneurial capability in the relationship between entrepreneurs’ effectuation and new venture performance.

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