Najaf Iqbal, Ju Feng Xu, Zeeshan Fareed, Guangcai Wan and Lina Ma
This study attempts to document the impact of financial leverage on corporate innovation in the Chinese nonfinancial public firms listed on Shenzhen and Shanghai stock exchanges.
Abstract
Purpose
This study attempts to document the impact of financial leverage on corporate innovation in the Chinese nonfinancial public firms listed on Shenzhen and Shanghai stock exchanges.
Design/methodology/approach
The firm-level data are collected from CSMAR database for ten years, ranging from 2007 to 2016. The authors have employed the panel fixed effects model and further system GMM approach for analysis. The sample is segregated on the basis of state (SOE) and nonstate ownership (NSOE) to check for the diverse effects. In total, three different proxies of financial leverage are used to unearth the varying impact of short-time and long-term leverage separately. Further, corporate innovation is divided into input innovation (R&D/Sales and R&D/Assets) and output innovation (patents and inventions).
Findings
The results suggest that financial leverage is detrimental to the input innovation while conducive for the output innovation when measured by the number of patents. Contrarily, leverage has a negative influence over the output innovation when measured by the number of inventions. This implies that leverage is more damaging for the highest form of innovativeness (inventions) in China. Input innovation is more sensitive to the changes in long-term leverage versus short-term leverage. Further, the authors find that innovation in SOEs is more sensitive to the changes in the leverage as compared to the NSOEs. The results are free from the threat of endogeneity and identification problems, as reported by the system GMM model.
Research limitations/implications
The authors did not segregate the sample on the basis of industry/sector.
Practical implications
The firms pursuing a strategy of radical innovation should try to keep their debt levels lower in order to achieve a higher innovation performance. Although, a rise in the leverage may mean an increased access to finance for a firm but such an access comes at a cost in the form of damage to the corporate innovation. However, increased debt financing may not be so bad for the firms that want to achieve a moderate and not the highest level of innovation. Such firms can produce recurring and synergic effects with debt financing and moderate innovation, once they achieve a level of innovation performance that satisfies their financiers.
Originality/value
To the best of authors’ knowledge, this is probably the first study to check the impact of firm-level financial leverage on both input and output innovation in the Chinese public-listed nonfinancial firms' panel data perspective till now.
Details
Keywords
Zuhui Xu, Bin Li, Zhiyang Liu and Jie Wu
Research on entrepreneurship toward poverty reduction has outlined how micro-level characteristics of entrepreneurs capture entrepreneurial opportunities in settings of poverty;…
Abstract
Purpose
Research on entrepreneurship toward poverty reduction has outlined how micro-level characteristics of entrepreneurs capture entrepreneurial opportunities in settings of poverty; however, little is known about the influence of previous military experience in this context. This paper investigates how previous military experience influences poverty-reduction entrepreneurship.
Design/methodology/approach
This study uses data from two main sources. First, individual-level and firm-level information come from a nationwide survey of founders of private enterprises. Second, province-level information is taken from the Marketization Index and the China Statistics Yearbook. An analysis of the Logit moderation model renders strong support for our conjectures.
Findings
Via novel integration of imprinting theory and research on previous military experience, we propose that entrepreneurs with previous military experience have a strong sense of self-sacrifice, and as a result, are better able to participate in poverty-reduction entrepreneurship. In addition, we build on the resource availability and stakeholder expectations arguments and predict that the main effect of previous military experience on poverty-reduction entrepreneurship will be strengthened by reduced corporate philanthropy and increased government intervention.
Originality/value
Our study adds to the extant literature in the following ways. First, it enriches the literature on entrepreneurship toward poverty reduction. Second, it contributes to imprinting theory in the entrepreneurial field. Third, it adds knowledge to the social entrepreneurship literature.
Details
Keywords
Subhanjan Sengupta and Arunaditya Sahay
This paper aims to facilitate researchers, academicians and entrepreneurs gain insights on the social entrepreneurship concept and future research opportunities in the context of…
Abstract
Purpose
This paper aims to facilitate researchers, academicians and entrepreneurs gain insights on the social entrepreneurship concept and future research opportunities in the context of the Asia-Pacific countries (APAC).
Design/methodology/approach
The diversity of social entrepreneurship phenomenon visible in 101 journal publications was reviewed and analyzed to identify research perspectives and opportunities, with special focus on papers published on the APAC context between 1998 and 2015. The keywords for search were “social entrepreneurship”, “social enterprises”, “social entrepreneur” and the names of all countries in APAC.
Findings
The study identifies three prominent themes in need of more research in the APAC countries: contextual, institutional and personal factors surrounding social entrepreneurship; usage of market orientation by social enterprises to generate economic and social value; and impact of social entrepreneurship education on generating talent pool for social enterprises.
Originality/value
During the review on the social entrepreneurship concept, it was felt that most research originated from both sides of the Atlantic rather than the APAC. Interestingly, no review was found on research published on social entrepreneurship as perceived and practiced in APAC. Therefore, this paper would be of particular value to any researcher who would conduct social entrepreneurship research in the Asia-Pacific context. Asia-Pacific offers immense scope for empirical research for theory generation and theory testing in different contexts.
Details
Keywords
Abstract
Purpose
The multiple goals make social enterprises vulnerable to mission drift, which hurts the sustainability of these hybrid organizations. As initiators, the relationship between social entrepreneurs and the mission drift of social enterprises needs to be further explored. This study aims to explore how entrepreneurs’ education and age impact social enterprise mission drift and examine the potential moderating effects of social enterprise legitimacy.
Design/methodology/approach
This study uses the Global Entrepreneurship Monitor data set to obtain the required samples, and further regression analysis is used to test the hypotheses.
Findings
The results showed that the more educated the entrepreneur, the lower the social enterprise mission drift. There is an inverted U-shaped relationship between social entrepreneurs’ age and mission drift. Finally, the inverted U-shaped relationship between age and mission drift was more pronounced in contexts with lower social enterprise legitimacy than high legitimacy levels.
Originality/value
This study highlights the significance of founders’ characteristics on the mission robustness of the social enterprises they create. At the same time, the role of social enterprise legitimacy is demonstrated in the context of this study. The findings of this research have implications for social entrepreneurs, social enterprises and policymakers.
Details
Keywords
Parvathy Viswanath and A. Sadananda Reddy
This paper explores the motivating factors that lead to opportunity recognition among social entrepreneurs in India.
Abstract
Purpose
This paper explores the motivating factors that lead to opportunity recognition among social entrepreneurs in India.
Design/methodology/approach
The study followed an exploratory, qualitative design based on thematic analysis of the interview data collected from 13 Indian social entrepreneurs.
Findings
The study identifies two aggregate factors that motivate social entrepreneurs: personal and contextual. Personal factors include life experiences, social awareness, social inclination since childhood, spiritual motives, the need for a meaningful career and entrepreneurial intention. Contextual factors included institutional voids, community development, the presence of a role model and volunteer experiences.
Research limitations/implications
This study contributes to the social entrepreneurship literature by providing a model for motivating factors that lead to opportunity recognition. This study enables policymakers and social entrepreneurship educators to identify aspiring social entrepreneurs and provide target-specific support to them.
Practical implications
This study enables policymakers and social entrepreneurship educators to identify aspiring social entrepreneurs and provide target-specific support to them.
Originality/value
The study uniquely contributes to the social entrepreneurship field by offering deep qualitative insights into the motivational and opportunity recognition patterns of social entrepreneurship.
Details
Keywords
Zhen Liu, Yingzhao Xiao, Shiyao Jiang and Shuang Hu
This study proposes personal network of social entrepreneurs as a key antecedent factor of their resource bricolage to understand the mechanisms underlying social entrepreneurial…
Abstract
Purpose
This study proposes personal network of social entrepreneurs as a key antecedent factor of their resource bricolage to understand the mechanisms underlying social entrepreneurial practices before the founding of social enterprises.
Design/methodology/approach
An empirical study is used to collect and analyze data. The questionnaire data are drawn from in-depth semistructured interviews with Chinese social entrepreneurs. This study develops a theoretical framework that draws upon two dimensions of social capital, namely, “ownership” and “use,” to explore relationships among personal network, resource bricolage and relation strength.
Findings
With data from 227 social enterprises in China, empirical results suggest that personal network of social entrepreneurs, that is, the “owned” social capital, shall be transformed by the intermediate role of resource bricolage into relation strength, that is, the “used” social capital. The relationship between resource bricolage and relation strength is positively moderated by the marketization degree and social class of social entrepreneurs.
Research limitations/implications
This study introduces resource bricolage into the front-end course of social entrepreneurship. The results show that similar personal network can lead to different behavioral outcomes in the context of social entrepreneurship. Then the integration of resources and opportunities at the beginning of the social entrepreneurial process opens new avenues for future research. However, this study only investigates the transformation from network to resources implemented by social entrepreneurs before organization establishment. It does not explore potential outcomes of such a transformation for the development of social enterprises.
Practical implications
Social entrepreneurs at the prefounding stage shall make use of the values of available resources, fully use potential interpersonal relations in the personal network, and transform these relations into a close, steady relationship to realize potential values of available resources. Social entrepreneurs can start from excavation and foundation laying of strong relation networks, to avoid problems in legality, social awareness and failure risks generated from blind integration of external resources.
Originality/value
This study finds that social entrepreneurship exists between the motivation of the social entrepreneur and the establishment of the organization after the development over time. Creating first a phased result through the resource bricolage is necessary. This result establishes a complete process chain of social entrepreneurship from motivation to behavior, next to organization establishment and subsequent development. This study is an empirical test based on the theoretical interpretation to make a positive effect on the social entrepreneurship research in the theoretical construction and testing of the deficiencies.
Details
Keywords
The purpose of this paper is to determine the factors that affect Islamic entrepreneurial intentions. Specifically, how do prior experience, empathy, moral obligation…
Abstract
Purpose
The purpose of this paper is to determine the factors that affect Islamic entrepreneurial intentions. Specifically, how do prior experience, empathy, moral obligation, self-efficacy and perceived behavioral support affect entrepreneurial intentions based on Islamic principles?
Design/methodology/approach
To answer this question, three theoretical frameworks using the theory of planned behavior (TPB), the theory of bounded rational planned behavior (TBRPB) and the theory of social entrepreneurship as its basis were established. Using measurement scales created to assess different aspects of the constructs, a survey instrument was developed to test the various relationships implied by those frameworks.
Findings
The findings of the study revealed that among the five factors prior experience and self-efficacy are the most important factors to affect Islamic entrepreneurial intentions.
Research limitations/implications
From a research perspective, the study results establish the robustness of the TPB, TBRPB and the social entrepreneurial intention model for helping to explain Islamic entrepreneurial intention behavior.
Practical implications
The practical implications of these results suggest that efforts aimed at increasing Islamic entrepreneurial activity may want to consider the variables studied in this paper. Both interested policymakers and academics cherishing to encourage Islamic, as well as conventional entrepreneurial activity, can take away that Islamic entrepreneurial self-efficacy and prior experience are deemed to be the most important measures.
Social implications
The findings from this paper suggest that the organizations could tend to promote Islamic entrepreneurial intentions in society through a special emphasis on the antecedents discussed in this paper.
Originality/value
It is vital to keep in mind that the measure for Islamic entrepreneurial self-efficacy used in this study differed from the usual constructs for self-efficacy.
Details
Keywords
This paper aims to extend the understanding of the ways in which social entrepreneurs give sense to and legitimize their work by introducing a rhetoric-orientation view of social…
Abstract
Purpose
This paper aims to extend the understanding of the ways in which social entrepreneurs give sense to and legitimize their work by introducing a rhetoric-orientation view of social entrepreneurship (SE).
Design/methodology/approach
This study uses computer-aided text analysis and computational linguistics to study 191 interviews of social and business entrepreneurs. It offers validation and exploration of new concepts pertaining to the rhetoric orientations of SE.
Findings
This study confirms prior untested assumptions that the rhetoric of social entrepreneurs is more other, stakeholder engagement and justification-oriented and less self-oriented than the rhetoric of business entrepreneurs. It also confirms that the rhetoric of both types of entrepreneurs is equally economically oriented.
Originality/value
This research makes new contribution to the SE literature by introducing three new orientations, namely, solution, impact and geographical, which reflect distinctive rhetorical themes used by social entrepreneurs, and by revealing that social entrepreneurs use terms associated with other, stakeholder engagement, justification, economic, solution, impact and geographical orientations differently than business entrepreneurs.
Details
Keywords
Carlos Bazan, Hannah Gaultois, Arifusalam Shaikh, Katie Gillespie, Sean Frederick, Ali Amjad, Simon Yap, Chantel Finn, James Rayner and Nafisa Belal
The study aims to test the applicability of a variant of the model proposed by Hockerts (2017) for assessing the social entrepreneurial intention (SEI) of male and female…
Abstract
Purpose
The study aims to test the applicability of a variant of the model proposed by Hockerts (2017) for assessing the social entrepreneurial intention (SEI) of male and female students. It extends the model by incorporating the university's environment and support system (ESS) as an additional more distal construct. The university's ESS, coupled with the experience with social, cultural and environmental issues can affect SEI by influencing the more proximal precursors of empathy towards others, perceived self-efficacy, perceived community support and social, cultural and environmental responsibility.
Design/methodology/approach
A structured non-disguised questionnaire was administered to students at a Canadian university. A sample of 485 usable responses was analysed by means of second-order structural equation modelling.
Findings
The results provide confirmation that the proposed model is a multi-group invariant and appropriate for analysing the SEI of male and female students. They also show that the university's ESS helps predict SEI indirectly through the complete mediation of the more proximal antecedents.
Research limitations/implications
The questionnaire is limited to universities with social innovation and entrepreneurship initiatives.
Practical implications
Outcomes of the study can help universities assess the efficacy of their social innovation and entrepreneurship initiatives for instilling a social entrepreneurial mind-set in students. Consequently, universities will be better equipped to raise the perceptions of venture feasibility and desirability, thus increasing students' perceptions of opportunity.
Originality/value
The study advances the social entrepreneurial knowledge of the university's effect on the precursors of SEI.