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Previous studies demonstrate that novice entrepreneurs access fewer resources than experienced portfolio entrepreneurs. From an entrepreneurial learning perspective, the purpose of this paper is to investigate why they differ in terms of accessing critical resources.

The authors studied entrepreneurs in the Norwegian offshore petroleum industry, which is conservative with strict regulatory regimes and overall high-entry barriers, and in which a good reputation is crucial. Hence, the authors argue that the industry is well suited for a study of the research questions.

The novices’ mind-sets were anchored in technological ideas and they had problems in prioritizing the critical business relationships and market opportunities. They were also unwilling to compromise on ownership control and to disclose business secrets. Portfolio entrepreneurs, on the other hand, acknowledged that technology had had little value if they could not convince market actors. Therefore, they proactively aimed to establish business relations early in the process. They emphasized that a major lesson was to avoid developing excessive attachment to the product but to be willing to share the risks and profits with other industry and market actors.

The authors had a limited number of cases, and future contributions should aim to study a larger pool of enterprises, preferably in different industries and national contexts.

The findings indicate that novices can learn from the willingness to compromise, in terms of ownership control and disclosure of confidential information to business partners, shown by experienced entrepreneurs. They should also be more willing to involve potential customers at an early stage to gain market knowledge and access.

From a learning perspective, this is the first study investigating why novice and experienced entrepreneurs differ in terms of accessing critical resources.

This paper investigates the influence of intellectual capital (IC) efficiency and its components – human capital efficiency (HCE), structural capital efficiency (SCE) and capital employed efficiency (CEE) – on the growth paths of small and medium-sized enterprises (SMEs) and their likelihood of becoming high-growth firms (HGFs).

Drawing on the resource-based view (RBV), our study reveals a positive relationship between IC efficiency and the likelihood of becoming HGFs. Using a longitudinal dataset of 554,076 firm-year observations corresponding to approximately 79,158 European SMEs from 2012–2019, our study employs probit regression to examine the impact of IC efficiency on the probability of becoming an HGF. To investigate the impact of IC efficiency across the growth rate distribution, we conduct further analyses via generalized least squares.

The results show that IC efficiency positively influences the growth paths of small entrepreneurial ventures and their likelihood of experiencing high-growth episodes.

For practitioners, the findings underscore the importance of investing in IC to enhance the growth process of entrepreneurial firms and increase their likelihood of achieving HGF status. Investments in IC can maximize growth potential and competitiveness, informing strategic decision-making.

Policymakers should consider the critical role of IC in promoting SME growth and formulate policies that encourage the development of IC among entrepreneurial firms. Such initiatives can stimulate economic growth, innovation and job creation across European economies.

This study contributes to the literature by focusing on entrepreneurial firms and examining how IC efficiency drives their transition to HGF status. This study provides empirical evidence across several European contexts over an extended period, emphasizing the role of IC efficiency in shaping the growth paths of entrepreneurial firms.

The macroenvironment constitutes a widely acknowledged source of firms’ risk in international business. A substantial body of research on macroenvironmental risks encapsulates a variety of measurement approaches, antecedents, and managerial consequences. However, a review of established macroenvironmental risk measures reveals that these measures strongly focus on the quality of the macroenvironment, assuming a rather static perspective and mainly excluding dynamic aspects. Building on prior research on macroenvironmental risk as well as on environmental dynamism, we argue that macroenvironmental dynamism – i.e. the frequency, intensity, and predictability of macroenvironmental variation – is a pivotal source of risk in international business, which so far only received limited attention. Moreover, we suggest that macroenvironmental dynamism influences firms’ risk management activities, a measure we use to empirically investigate firm implications of macroenvironmental dynamism. We explore this effect using primary survey data on risk management activities from 158 foreign subsidiaries in six emerging countries and secondary data on the macroeconomic context in these countries. We find evidence that macroenvironmental dynamism, if compared to macroenvironmental quality, exerts a strong influence on firms’ risk management activities. Our findings enhance the understanding of the dynamic nature of macroenvironmental risk in international business as well as provide a concept to more comprehensively measure macroenvironmental dynamism that future research can build upon.

A key characteristic for a family firm, preservation of socioemotional wealth, may appear to be at conflict with the concept of organizational diversity. The authors investigate how organizational diversity, captured through heterogeneity in ownership structure, diversity in the senior management team, interfaces with the concept of the socioemotional wealth of family businesses in an emerging economy, when these firms pursue inorganic growth strategies.

Drawing on the concepts of socioemotional wealth, behavioral agency theory and bifurcation bias, the authors develop perspectives on how ownership structure, family influence in executive management and institutional shareholding influence a family firm's internationalization strategies captured through propensity to pursue cross-border M&A – an activity that may threaten the preservation of socioemotional wealth. The authors also explore the role of business group affiliation, another organizational diversity construct, and contingent parameters like past financial performance and export intensity in this study. The authors take pooled data over 15 years, involving 346 large firms from India, which are family-controlled, to carry out the study.

The authors’ empirical analysis shows that family stake in the company and family members' presence in the executive team negatively influence the propensity to pursue cross-border M&A activities. A firm's affiliation to a business group moderates these negative relationships. On the other hand, the presence of institutional shareholders, positive past financial performance and export intensity positively influence cross-border M&A propensity.

The results establish that family businesses' attempts to preserve socioemotional wealth may come at the cost of promoting organizational diversity.

This paper aims to use the institutional and information-processing perspectives to explore their association with between internationalization and the Penrose effect phenomenon for business groups (BGs).

The authors use ordinary least squares regression models to test arguments about data pertaining to 101 Taiwanese BGs’ foreign direct investments.

The results indicate that greater levels of depth and scope in the process of internationalization during one period may negatively affect rates of growth in the following period. The results further demonstrate that institutional distance moderates the relationship.

Using the perspective of information-processing demands, the authors provide alternate explanations regarding the relationship between the process of internationalization (depth, scope and rhythm) and the Penrose effect.

Owners and managers should focus on both the depth and the scope of internationalization. BGs are likely to incur high dynamic adjustment costs, which then limit the rate of BGs’ growth. Managers should balance international market uncertainty with current managerial resources when determining how deeply and broadly to expand internationally and where to enter. In addition, as recent major panel studies suggest, management capabilities and practices can improve significantly, which has a positive effect on firm growth and performance. This does require the careful development and acquisition of the managerial resources needed for internationalization.

This article investigates the relationship between family ownership and export performance in the context of SMEs while also considering the moderating role of the financial dimension and, in particular, financial constraints and financial flexibility.

We select a sample of 1,132 Italian SMEs to examine through an econometric analysis the role and impact of family ownership and the financial moderating variables being used on their export performance.

The results indicate that there is a U-shaped relationship between family ownership and export performance: the highest levels of export performance correspond to the lowest and highest family ownership levels, whereas when a mixture of family and nonfamily ownership exists, the performance suffers because of “conflicting voices” dominating strategic visions and approaches, harming the firm's export commitment. Moreover, the findings show that lower financial constraints and/or stronger financial flexibility improve the relationship between family ownership and export performance.

Our findings show that the ownership structure is important for export performance; in particular, firms should avoid a mixture between family and nonfamily ownership because it is detrimental to export performance. Moreover, Italian SMEs need to develop sources of financing other than the banking channel, and policy makers should favour this process to overcome financial constraint problems and improve financial flexibility. Limitations concern the use of other econometric approaches and measurement variables to further investigate the connection between family ownership and export performance.

The present study enhances the comprehension of the complex relationship between family ownership and export performance by documenting the relevance of the level of family ownership and considering the moderating role of financial constraints and flexibility.

This paper builds upon managerial discretion literature to study the relationship between foreign ownership and bribery intensity.

Building on World Bank’s data of 9,386 firms from 125 countries over the period 2006–2018, this paper uses Tobit regression, ordered probit and logit models to empirically test the hypotheses.

This paper finds that firms have higher bribery intensity when executives have a higher level of managerial discretion. Smaller firms with slack financial resources tend to bribe more when they face more government intervention, munificent and uncertain industrial environment.

Extant corruption literature has addressed the effects of external institutional settings and internal corporate governance on bribery offering among multinational enterprises (MNEs). How much, and under what condition do top executives matter in bribery activities are yet to be answered. This paper integrates the concept of managerial discretion with corruption and bribery literature and offers a potential answer to the above question. In addition, prior corruption and bribery literature have primarily studied bribery through either micro- or macro-level analysis. This paper adopts multiple-level of analyses and elucidates the foreign ownership and bribery relationship from the organizational and industrial levels.

Executives exert a pervasive influence on the organizations they lead. As such, scholars have long considered how to calibrate the risks inherent in executive decision making, often relying on incentives and compensation to calibrate executive risk behavior. However, there are shortcomings that reduce the efficacy of this approach, largely because incentives and compensation do not alter the work environment itself, which play a significant role influencing executive risk behavior. Consequently, in this chapter, we propose a conceptualization that integrates executive risk-taking with work design, framing three central features of the strategic leader job and work environment that may be manipulated to channel and shape executive risk-taking. Specifically, accountability, discretion, and relationships are proposed as the key higher-order characteristics of the executive work context, and they are examined with respect to optimal calibration in order to maximize both executive performance and well-being, as well as organizational coordination and control. Implications of this conceptualization and directions for future research are discussed.

The purpose of this paper is to describe the building of a theoretical model to explore how team pay disparity and resource slack moderate the effects of top management team (TMT) diversity on strategic change and if the moderating effects of resource slack differ in firms with a low or high level of pay disparity.

Nine hypotheses are proposed and tested with a sample from 391 listed Chinese firms. Archival data are collected from annual reports to form the sample. The hypothesized model relationships are tested through regression analysis.

The findings show that pay imparity negatively moderates the effects of TMT diversity and resource slack also has important moderating effects. Furthermore, the moderating effects of resource slack differ in firms with low and high team pay imparity.

TMT demography diversity has an important effect on strategic change. However, two conflicting views exist on the relationship. Although some literature suggests that diversity may be sources of explorative activities such as strategic change, others suggest that diversity may cause integration difficulty and thus has a negative effect on strategic change. This paper contributes to extant debate regarding the effects of TMT diversity on strategic change by including TMT pay imparity and resource slack to explain that the effect of diversity on strategic change is contingent on the level of pay imparity, resources slack, and their interactive effects. This research also contributes to understanding organization slack by reasoning that the moderating effect is contingent on pay imparity level.

This study aims to examine the effect of the separation of control and ownership on the efficiency performance of Taiwanese electronics firms.

The paper employs data envelopment analysis to estimate efficiency performance. Following Kuan et al., the paper measures the severity of a firm's agency problems using the difference between voting rights and cash flow rights, and the difference between seat control rights and cash flow rights. Using a panel dataset for the period from 2004 to 2010, the paper runs OLS regressions to find the relationship between efficiency performance and the separation of control and ownership.

The results show that both the divergence between voting rights and cash flow rights, and the divergence between seat control rights and cash flow rights are significantly and negatively related to efficiency performance. Using Tobit regression in the second stage also provides a consistent result.

Shareholders, especially the minority group, should think twice before investing in a firm with a high deviation of control and ownership.

This is the first paper to examine the effect of the separation of control and ownership on the efficiency performance of Taiwanese electronics firms. The empirical evidence suggests existence of negative entrenchment effects in the electronics industry in Taiwan.