Guest editorial: The entrepreneurship challenges in Latin America

Purpose The purpose of this paper is to introduce the special issue “The Entrepreneurship Challenges in Latin America”. Design/methodology/approach Latin America and the Caribbean is a region with many potentialities. Like one of the largest markets in the world, entrepreneurship activities can constitute a key element to enhance regional competitiveness. Findings This study makes a general overview of entrepreneurship dynamics in Latin America and its contexts. This study presents the eight manuscripts that constitute the special issue. Originality/value This study contributes to current academic conversations and highlights the relevance of continuing inquiring about the entrepreneurship phenomena at the regional level. Contribution to impact This study expects that this special issue will help the region’s scholarly entrepreneurship community and others interested in Latin America. This study also believes that this special issue manuscript makes a relevant contribution to policy and practice.

Radical innovation, incremental innovation, and competitive advantage, the moderating role of technological intensity: evidence from the manufacturing sector in Jordan

Purpose The purpose of this paper is to identify the effect of radical innovation and incremental innovation on the competitive advantage of Jordanian industrial companies and identify the moderating role of technological intensity. Design/methodology/approach For this study’s purposes, 303 questionnaires from employees of 30 manufacturing firms were analysed. Convergent validity and discriminant validity tests were performed through structural equation modelling in the Smart-PLS programme. Data reliability was confirmed. A bootstrapping technique was used to analyse the data. Multi-group analysis was performed to investigate the moderating role of technological intensity. Findings Empirical results showed that both radical innovation and incremental innovation explain 60.2% of the variance in competitive advantage and that both constructs have a statistically significant effect on competitive advantage. The results also revealed that the relationship between radical innovation and competitive advantage is modified through the high-tech industries. Meanwhile, the relationship between incremental innovation and competitive advantage is modified through the low-tech industries. Research limitations/implications This cross-sectional study provides a snapshot at a given moment in time, a methodological limitation that affects the generalization of its results and the results are limited to one country, Jordan. Practical implications This study promotes the idea of focusing on radical and incremental innovation to enhance competitive advantage in the Jordanian manufacturing sector and knowing the effect of technological intensity in this relationship. Originality/value This study has important implications for leaders in the Jordanian manufacturing sector in general, as the study highlights the importance of radical innovation and incremental innovation to enhance the competitive advantage, especially in light of the technological intensity in this sector, and thus, increase the innovative capabilities of this firms, which leads to an increase in the level of competitive advantage.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

Social media influencer marketing: the moderating role of materialism

Purpose Social media influencers (SMIs) have become an important source of influence that affects consumer behaviours in their decision-making processes. As such, this justifies scholarly attention in understanding how SMIs transfer their meanings to endorsed brands and drive consumers’ positive behavioural intentions. With the intention to fill this knowledge gap, this paper aims to examine the impact of SMIs’ credibility, as manifested by trustworthiness, attractiveness and expertise, along with the moderating effects of materialism, on followers’ purchase intention. Design/methodology/approach Self-administrated online surveys were used to collect data from Instagram users. A total of 191 usable data were collected and analysed using partial least square structural equation modelling. Findings The results show that SMIs’ trustworthiness and expertise are significant predictors of followers’ purchase intention. Moreover, the moderating effect of materialism on the relationship between attractiveness and purchase intention is significant. Notably, the influence of attractiveness on purchase intention is greater when materialism is high. Originality/value This research contributes to the SMI literature by examining the influence of SMIs’ trustworthiness, attractiveness and expertise, along with the moderating effect of materialism, on followers’ purchase intention.

Dissecting the ecosystems’ determinants of entrepreneurial re-entry after a business failure

Purpose This study aims to evaluate the role of entrepreneurial ecosystems conditions (formal, informal and social capital) on different types of entrepreneurial re-entry at a global scale. Design/methodology/approach Given this phenomenon’s nature, this study builds a panel of data of 54 economies covering different (advanced and emerging) countries across the globe during the period 2004–2017 by mixing multiples sources of information (e.g. Global Entrepreneurship Monitor, the World Economic Forum, the World Bank and the International Monetary Fund). The statistical analysis consisted of the fixed-effect dynamic generalized method of moments (GMM) estimation for panel data. Findings Three empirical insights emerge from the study. First, the entrepreneurial ecosystem’s formal conditions are mainly configured to support high-growth entrepreneurship ignoring re-entrepreneurs. Consequently, the formal conditions’ contribution is very limited in emerging economies. Second, the analysis of informal conditions revealed social media’s critical contribution for legitimizing entrepreneurship and supporting those entrepreneurs who want to re-enter the domestic or international market after a business failure. Third, social networks built during previous business angels or entrepreneurial experiences or with other entrepreneurs also play a crucial role for re-entrepreneurs to overcome the weaknesses in the entrepreneurial ecosystems’ conditions. Originality/value The study contributes to two ongoing academic debates among entrepreneurship scholars. The first is related to how the entrepreneurial ecosystem supports entrepreneurial activity in different economic contexts. The second is related to the study of the contextual determinants of entrepreneurial re-entry after a business failure.

Human flourishing: an enabler of entrepreneurial intention in Latin American students

Purpose This study aims to propose a causal relationship between the level of students’ human flourishing (HF) and their entrepreneurial intention (EI) and the mediation role of entrepreneurial self-efficacy (ESE). Design/methodology/approach The study uses a sample of 5,035 first-year university students who graduated from 950 different upper secondary schools in Mexico and abroad. Data were analysed using structural equation modelling. Findings The results reveal that HF increases EI and ESE; ESE positively impacts EI; and the student’s ESE partially mediates the HF-EI relationship. Practical implications These findings may improve educational strategies in upper secondary schools and higher education institutions’ management programmes to impact graduates’ HF and EI. To the knowledge, the authors are the first to measure how HF in upper secondary school graduates contributes to increasing their EI. Social implications Recommendations are made to increase Latin American students’ HF and EI. Originality/value The authors propose an inverse relationship between HF and EI, as HF can be enhanced in upper secondary education to boost EI later in students’ lives.

Are andragogy and heutagogy the secret recipe for transdisciplinary entrepreneurship education?

Purpose This study aims to construct an entrepreneurship educational pattern applicable to all disciplines at the undergraduate level. The proposal focusses on two-course models of transdisciplinary entrepreneurship education (TEE), which involve andragogy and heutagogy as the basis of entrepreneurial competency development. Design/methodology/approach The competencies acquired during the proposed course models for TEE are analysed through Bayesian methods. The study is conducted using 400 opinions of students from Tecnologico de Monterrey in Mexico City. Findings The proposed TEE models are auspicious for establishing an educational pattern to develop entrepreneurship competencies in undergraduate students with the independence of their school of origin. Originality/value Nowadays, universities recognise the importance of providing entrepreneurship education as part of their mission. However, well-defined canons to guide such teaching are still non-existent. This paper fills a gap on what and how to teach TEE. By providing a new competency classification based on soft and technical skills, the authors contribute to the pattern of what to teach in entrepreneurship. The authors provide guidance on the teaching methods for TEE through two-course models based on andragogy and heutagogy. Moreover, their efficacy is measured using the students’ perception of the acquired competencies and their usefulness.

The cultural dimensions in supply chain management research: a state-of-the-art review and research agenda

Purpose This research aims to review how current supply chain management (SCM) research addresses cultural issues, presents a critical assessment of literature and discusses future research avenues. Design/methodology/approach The literature is reviewed using systematic literature review, bibliometric citation analysis and content analysis. A total of between 1995 and 2019 in Institute for Scientific Information Web of Science’s database. Findings Descriptive data related to chronological evolution of literature, geographical location, influential papers and methodology are presented. Four main research areas were categorized, namely, papers on SC integration and performance; research on continuous improvement and lean initiatives; studies on the role of culture in sustainability, corporate social responsibility and green practices; and studies on emerging topics of research. Most studies focused on organizational culture frameworks, adopted a static approach to culture and targeted mainly developed countries and Asian emerging countries. A research agenda is suggested based on a multilevel cultural framework including operational and SCM culture. Research limitations/implications Practitioners and researchers will gain a greater understanding of how cultural issues have been addressed in current literature. A multilevel framework is proposed based on the concept of “operational” and “SCM culture”, to address some of the issues identified in current literature. Originality/value To the best of authors’ knowledge, this study is one of the first literature reviews that considers both national and organizational culture dimensions in SCM research, whereas prior approaches were fragmented or one-dimensional.

Germinating seeds in dry soil: examining the process of frugal innovation in micro- and small-enterprises at the base of the pyramid

Purpose This study aims to examine the process of frugal innovation (FI) in micro- and small-enterprises (MSEs) at the base of the pyramid (BOP) through the analytical lens of business models. Design/methodology/approach A case study was conducted with 30 MSEs from three different industries in a very poor region in Brazil. Findings The findings indicate that, in cases where FI is intense and dynamic, the start of the FI process is based on the reinterpretation of fashion trends and influences from the business ecosystem while the consolidation of FI in MSEs occurs through the reconfiguration of resources. Additionally, this study shows that FI depends on conditions other than the production of frugal products for BOP consumers. Research limitations/implications This study points out that the presence of end-of-life non-BOP raw materials distributed by large distributors in the case of fashion products, along with the interaction between MSEs at the BOP and these distributors, trigger FI and are profitable for both. For non-fashion products with long life cycles, there is no demand for innovation. Originality/value This study addresses the research void present in the literature on FI by presenting the process of FI and the conditions that leverage or stagnate FI in MSEs at the BOP, as well as how business models are shaped by these conditions.

Multilateral development banks: understanding their impact on start-up development in Latin America

Purpose This paper aims to examine the relative performance of multilateral development banks venture capital funds (MDBVCs) compared to that of government-sponsored venture capital funds (GVCs), assessing their impact on invested start-ups. Design/methodology/approach First, the authors survey the literature to understand the performance drivers of public programs designed to foster venture capital (VC). Second, the authors analyze the characteristics of multilateral development banks (MDBs) VC-related efforts. Third, based on their goals, structure, governance and management processes, the authors propose and test the hypothesis that MDBs initiatives outperform comparable public programs, overcoming the main limitations of the latter. Findings The authors find that start-ups funded by MDBVCs outperform GVC-funded start-ups in terms of access to subsequent financing and international expansion. Consistent with previous studies, the authors find that start-ups funded by private VCs show the highest levels of performance. Originality/value The paper features an unstudied actor – i.e. MDBVCs-, and an unstudied region – i.e., Latin America-, using a unique data set of 437 start-ups that received VC investments in 7 Latin American countries during the study period 2000–2018.