What kind of firm do you owner-manage? An institutional logics perspective of individuals’ reasons for becoming an entrepreneur

2019 ◽  
Vol 9 (3) ◽  
pp. 297-318 ◽  
Author(s):  
Rodrigo Basco
Keyword(s):  
Family Business ◽  
Multivariate Analyses ◽  
Institutional Logics ◽  
Employee Productivity ◽  
Firm Resources ◽  
Content Type ◽  
Young Firms ◽  
Inductive Research ◽  
Post Entry ◽  
And Performance

Purpose The purpose of this paper is to compare the post-entry firm behavior of firms owner-managed by entrepreneurs who entered for family-oriented vs opportunity-oriented reasons. Design/methodology/approach Using the institutional logics perspective, the author argues that firms under the influence of opportunity-oriented or family-oriented owner-managers may differ in their internal practices, purpose, strategies, and performance. The author follows an inductive research methodology strategy by performing multivariate analyses with a sample of 1,733 Chilean firms to explore the preliminary conjectures. Findings Firms owner-managed by entrepreneurs who entered for a family-oriented reason finance their investment with firm resources, are less dependent on one customer and are willing to put forth less innovation effort than firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason. No differences were found in terms of employee productivity. Additionally, the results show that young firms owner-managed by opportunity-oriented entrepreneurs have higher growth ratios than young firms owner-managed by family-oriented entrepreneurs. Inversely, old firms owner-managed by entrepreneurs who entered for an opportunity-oriented reason grow much less than old firms owner-managed by entrepreneurs who entered for a family-oriented reason. Originality/value This paper contributes to the literature at the intersection of family business and entrepreneurship by addressing the calls made by Aldrich and Cliff (2003) and Discua Cruz and Basco (2018) to better understand the family’s influence on entrepreneurship.

How do resources and diversification strategy explain the performance consequences of internationalization?

2014 ◽  
Vol 52 (5) ◽  
pp. 897-915 ◽  
Author(s):  
Yan Chen ◽  
Yiwei Jiang ◽  
Chengqi Wang ◽  
Wen Chung Hsu
Keyword(s):  
Emerging Market ◽  
Product Diversification ◽  
Firm Resources ◽  
Diversification Strategy ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Performance Consequences ◽  
Performance Effects ◽  
And Performance

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.

scholarly journals How performance measurement influences stakeholders in not-for-profit organizations

2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Institutional Logics ◽  
Performance Goals ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
And Performance ◽  
The Uk

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.

scholarly journals Diffusion of sustainability and CSR discourse in hospitality industry

2019 ◽  
Vol 31 (6) ◽  
pp. 2564-2581 ◽  
Author(s):  
Bengi Ertuna ◽  
Mine Karatas-Ozkan ◽  
Sibel Yamak
Keyword(s):  
Empirical Evidence ◽  
Family Business ◽  
Institutional Logics ◽  
Tourism Industry ◽  
Positive Contribution ◽  
Local Conditions ◽  
Standard Format ◽  
Content Type ◽  
Sustainability Practices ◽  
Critical Writings

Purpose The authors’ focus is on the way in which sustainability and corporate social responsibility (CSR) discourses and practices emerge in the collaboration of multinational companies (MNCs) with the local hotels in developing country contexts. This paper aims to identify the prevailing institutional orders and logics that bring about CSR and sustainability discourse in tourism industry in Turkey. It also investigates how and to what extent the CSR and sustainability practices align with the local institutional logics and necessities. Design/methodology/approach Empirical evidence is generated through case studies covering Hilton Worldwide Holdings Inc. (Hilton), its Turkish subsidiary and a local hotel chain to ensure data triangulation. Primary data were collected through interviews with the executives of the selected case hotels, which was supported by extensive secondary data. Findings Some components of CSR and sustainability logics developed in the headquarters diffuse into local affiliate hotel, not all. Local affiliate hotels seek to acquire local legitimacy in their host environment, despite a standard format imposed by their headquarters. Local necessities and priorities translate themselves into such initiatives in a very limited way in the affiliates of the Hilton where there is mostly a top-down approach. Similar approach has also been observed in the case of the local hotel which is part of a family business group. Family’s values and family business headquarter shape the CSR and sustainability strategy and the logics reflecting the local component. Research limitations/implications This paper addresses a theoretical and empirical gap by demonstrating the role of MNCs in the diffusion of sustainability and CSR practices, as acknowledged by Forcadell and Aracil (2017). The authors contribute to the critical writings about the positive impact of CSR and sustainability in the context of the MNCs and their subsidiaries, which is not substantiated due to limited empirical evidence. In addition to these contributions to the CSR and sustainability literatures in tourism and hospitality domains, the authors add to the institutional theory by demonstrating the link between institutional orders and institutional logics. They also show the multiplicity of logics that emanate from the differences of logics developed in the headquarters (centrally imposed) and local affiliate organizations (context-specific) and contribute to theory by highlighting tensions. Practical implications This study appeals to management teams and executives of hotels dealing with these issues of tailoring of CSR practices to local necessities. The authors do not only raise awareness of this consciousness but also demonstrate practical application of some of these strategies and prioritization by detecting market specificities and distinctive societal needs. Hotel managers should resist against the headquarter- or family business-driven uniform approach to CSR and sustainability and reflect on corporate policies through checking isomorphic tendencies. This entails being cognizant of local conditions and necessities and respond to them in a flexible and accommodating way. It involves engaging with a full spectrum of stakeholders, including the leadership in headquarters as well as local organizations (e.g. NGOs, suppliers, etc.) and other institutional forces (e.g. state) to align their sustainability and CSR practices with the locally dominant logics. Managers should be aware of certain logics governing CSR and sustainability practices; some of these logics might be constraining critical thinking and innovative practices. Social implications Managers should be proactive in interpreting different institutional logics and process them through critical reflection and boundary spanning and mapping of new opportunities. Moreover, MNC hotel executives should be aware of the limitations of a blanket approach toward CSR and sustainability and increase their sensitivity toward local conditions. Originality/value Through this study, the authors are able to add further value to the critical writings about the positive contribution of CSR and sustainability in the context of the MNCs and their subsidiaries, which is not substantiated due to limited empirical evidence.

Internationalization and performance of Indian born globals

2017 ◽  
Vol 12 (1) ◽  
pp. 108-124 ◽  
Author(s):  
Manish B. Ganvir ◽  
Neeraj Dwivedi
Keyword(s):  
Financial Performance ◽  
International Markets ◽  
Curvilinear Relationship ◽  
Born Global ◽  
Content Type ◽  
Exporting Firms ◽  
Post Entry ◽  
And Performance ◽  
Relationship Of ◽  
Practical Implications

Purpose The purpose of this paper is threefold: first, to study internationalization-performance relationship of Indian born global (IBG) firms from multi-theoretical lens and establish the nature of this relationship; second, to highlight the role of foreign equity in moderating this relationship; and third, to establish the relevance of export intensity (EI) in determining these firms’ financial performance. Design/methodology/approach In total, 411 IBG firms were identified based on born global (BG) definition and post-entry internationalization age requirement of this study. A balanced panel comprising of three years from 2010 to 2012 was analyzed using pooled panel and moderated multiple regression techniques. Findings The authors empirically prove that though EI and financial performance are positively related at overall level, this relationship is curvilinear in nature. In presence of foreign equity this positive curvilinear relationship is moderated to inverted-U shape. Research limitations/implications The data sample is restricted to 411 private limited IBGs between the years 2009 and 2012. Implications of the findings are for policy makers and managers to sharpen their strategic foresight for exporting firms in its post-entry period. Also, investors can take level of internationalization into cognizance when investing in BG firms. Practical implications The authors believe the results have practical implications for numerous parties, such as shareholders, institutional investors, scholars, policymakers and managers. It emboldens modern day managers to make further foray into internationalization due to its positive benefits on both productivity as well as profitability. Also, firms that look for foreign equity participation have to balance their strategies for greater scale and scope into international markets. Originality/value This is the first study that brings out the vital relationship aspect of EI with financial performance of IBG firms in their post-entry internationalization period, adding to international business literature in area of BG firms in their post-entry internationalization period.

A bibliometric analysis of research on Big Data analytics for business and management

2019 ◽  
Vol 57 (8) ◽  
pp. 1993-2009 ◽  
Author(s):  
Lorenzo Ardito ◽  
Veronica Scuotto ◽  
Manlio Del Giudice ◽  
Antonio Messeni Petruzzelli
Keyword(s):  
Big Data ◽  
Citation Analysis ◽  
Bibliometric Analysis ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Theoretical Development ◽  
Firm Resources ◽  
Content Type ◽  
Subjective Assessments ◽  
And Performance

Purpose The purpose of this paper is to scrutinize and classify the literature linking Big Data analytics and management phenomena. Design/methodology/approach An objective bibliometric analysis is conducted, supported by subjective assessments based on the studies focused on the intertwining of Big Data analytics and management fields. Specifically, deeper descriptive statistics and document co-citation analysis are provided. Findings From the document co-citation analysis and its evaluation, four clusters depicting literature linking Big Data analytics and management phenomena are revealed: theoretical development of Big Data analytics; management transition to Big Data analytics; Big Data analytics and firm resources, capabilities and performance; and Big Data analytics for supply chain management. Originality/value To the best of the authors’ knowledge, this is one of the first attempts to comprehend the research streams which, over time, have paved the way to the intersection between Big Data analytics and management fields.

scholarly journals The prospective applicability of the strengths-based approach to managing and developing employees in small businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chamila Kumudunee Wijekuruppu ◽  
Alan Coetzer ◽  
Pattanee Susomrith
Keyword(s):  
Small Businesses ◽  
Management Practice ◽  
Employee Selection ◽  
Task Assignment ◽  
Cost Effective ◽  
Employee Productivity ◽  
Content Type ◽  
Work Related ◽  
Individual Productivity ◽  
And Performance

PurposeThe strength-based approach is promulgated as a management practice that improves individual productivity and performance. This study's purpose is to explore the prospective applicability of the strengths-based approach to managing and developing employees in small businesses. The study focuses on four domains of practice: selection, training, performance evaluation and task assignment.Design/methodology/approachThe study employed semi-structured, face-to-face interviews to obtain data. The units of analysis were managers and employees of small businesses. Eleven managers and 19 employees were interviewed. Data analysis involved thematic analysis with the NVivo 12 software program.FindingsFirst, the small businesses used a strengths-based approach for employee selection during employees' temporary status of employment and in employee task assignment. However, managers did not employ a strengths-based approach to employee selection during selection interviews, training or performance evaluations. Second, the managers perceived strengths identification as a difficult task. Based on personal observations, they perceived employees' positive character traits, job-related skills and work-related efficiency as employee strengths.Practical implicationsThis study informs managers about a potential alternative to the traditional weakness-based management practice. The findings and conceptual arguments suggest that a strengths-based approach can provide a cost-effective alternative to the resource-intensive approaches commonly employed to enhance employee productivity and performance.Originality/valueThe study provides the first empirical evidence on the prospective applicability of the strengths-based approach to small businesses and explores conceptually the suitability of the said approach to this context.

Managing the downside effect of a productivity orientation

2016 ◽  
Vol 30 (2) ◽  
pp. 238-254 ◽  
Author(s):  
Jun Ye ◽  
Jesse King
Keyword(s):  
Job Satisfaction ◽  
Service Organizations ◽  
Employee Productivity ◽  
Frontline Employees ◽  
Negative Effects ◽  
Quality Performance ◽  
Content Type ◽  
Employee Trust ◽  
Trust In Management ◽  
And Performance

Purpose Although many service organizations have adopted a productivity orientation to respond to increasing market challenges, the unanticipated downside effect of such an orientation is not well understood. For managers, it is interesting to know if this strategic initiative is working and how to implement it more successfully. Design/methodology/approach The theoretical model used in this paper is tested with a survey of 879 frontline employees from five different health-care organizations. Findings The authors find evidence of a trade-off when a productivity orientation is adopted. A productivity orientation improves frontline service employee productivity performance but indirectly harms quality performance and job satisfaction. The authors find further evidence that trust in management helps to mitigate these negative effects. Research Limitations/implications This paper suggests that a productivity orientation must be managed carefully. Efficiency improvements may be overshadowed by reduced quality and job satisfaction. Limitations arise from the self-reported survey data. Practical Implications The results suggest that employees who trust their managers are better able to cope with the stressors arising from increased productivity demands. Originality/value To the authors’ best knowledge, no research has systematically examined the process and potential hazards of implementing a productivity orientation from a frontline employee perspective. The current paper reveals the mechanisms by which a productivity orientation influences frontline employees’ change perceptions and performance and shows that employee trust in management may buffer the downside effects of a productivity orientation.

Operationally defining family SMEs: a critical review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paolo Roffia ◽  
Stefania Moracchiato ◽  
Eric Liguori ◽  
Sascha Kraus
Keyword(s):  
Family Business ◽  
Empirical Studies ◽  
Operational Definition ◽  
Three Dimensions ◽  
Content Type ◽  
Online Databases ◽  
Family Smes ◽  
Research Questions ◽  
And Performance ◽  
Definition Of

PurposeIn this study, we investigated the dilemma of devising an operational family business definition in the SME context. The existing family business literature mostly agrees with the validity of a theoretical model called F-PEC, which identifies family businesses by evaluating three dimensions: power, experience, and culture. Nonetheless, empirical studies on family SMEs still use just one or a few elements with many different thresholds to operationally define family SMEs, highlighting an unsolved definitional divergence among scholars, which limits the possibility of investigating the potential effects of family attributes on firms’ goals, structures, processes, and performance.Design/methodology/approachEmploying ancestry searching, online databases, and issue-by-issue searches from two decades (1990–2019), we analyzed 255 empirical studies that specified a family business’s operational definition (despite posing different research questions) and used a sample of small-sized and medium-sized enterprises (SMEs).FindingsResults showed ownership and governance/management are the most used elements in the operational definitions provided in the literature to date, but that there still is not a universally adopted operational definition of family SMEs in use today.Originality/valueThis paper is one of the first to comprehensively analyze and review the operationalized use of family SME definitions in the literature.

Resource indivisibility, lumpy costs and the multinationality–performance relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ohad Ref ◽  
Itzhak Gnizy
Keyword(s):  
Optimal Level ◽  
Firm Resources ◽  
Multiple Wave ◽  
Vast Number ◽  
Content Type ◽  
Geographic Scope ◽  
Single Pattern ◽  
And Performance ◽  
The Relationship ◽  
Benefits And Costs

PurposeThe relationship between multinationality and firm performance is a central issue in the international marketing and business literatures. Predominantly, this body of research has tried to identify a single, generalized pattern for this relationship. However, despite the vast number of studies, results have been characterized as mixed or inconsistent. In this study, we take a fresh look at this relationship.Design/methodology/approachWe focus on a key inducement to expand firm multinationality – the search for a more efficient way to exploit firm resources, and also on a specific operationalization of multinationality – firm geographic scope. We use a formal analytical model analyzing the trade-off between benefits and costs arising from expanding firm geographic scope and emphasizing the role of lumpy costs emanating from resource indivisibility.FindingsThe relationship between geographic scope and performance cannot be confined to a single pattern, but instead, may have any one of a set of patterns: negatively monotonic shape, inverted U-shape, S-shape, M-shape or, multiple-wave inverted U-shape.Practical implicationsThe current study offers managers some guidelines to identify which of the above patterns fits their firm's specific case, and to identify the optimal level of geographic scope for their firm.Originality/valueWe conclude that the search for a single, generalized pattern for multinationality-performance is largely futile, whereas the focus on specific inducements and operationalizations for multinationality allows us to explain when and why specific patterns are more likely to occur.

Succession in family business: multi-source perspectives

2017 ◽  
Vol 24 (4) ◽  
pp. 753-774 ◽  
Author(s):  
Gil Bozer ◽  
Leon Levin ◽  
Joseph C. Santora
Keyword(s):  
Family Business ◽  
Phase 1 ◽  
Complex Nature ◽  
Content Type ◽  
Family Culture ◽  
Succession Process ◽  
And Performance ◽  
Business Practitioners ◽  
Generational Succession ◽  
Succession In Family Business

Purpose Despite the extensive breadth of research into the critical challenge of succession in family business, generational succession in family business has been investigated from predominately one-dimensional perspective. The purpose of this paper is to respond to call for a multi-perspectives examination of leadership succession in order to embrace the dynamic and complex nature of succession in a family business. Accordingly, the authors investigated the key personal and professional factors associated with effective family-business succession across four key stakeholders: incumbent, successor, family, and nonfamily members. Design/methodology/approach The explanatory research design included 16 interviews in Phase 1 and 41 prospective case study interviews in Phase 2, both with Australian family businesses that had or were about to experience generational transition. Findings Incumbents and successor interview findings support the benefits of maintaining a cohesive family business, adaptable family culture, and familiness for effective succession. The authors also identified several personal components (e.g. family-business socialization and external experiences) that can help determine the commitment of successors and how this commitment can change once they assume a leadership position. Business size was the professional component supported by incumbent, successor, and nonfamily members as having a significant impact on succession process. As family business grows and becomes more highly complex, a clearly defined set of procedures become imperative. Practical implications Family-business practitioners can apply the findings to manage the processes and expectations of family and the business to achieve effective generational succession and thereby increase the sustainability of the business. Originality/value This research provides a coherent and comprehensive understanding of the interdependencies of competing priorities in the complex succession process that is essential for family-business sustainability and performance.

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