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Article
Publication date: 8 January 2020

Steven A. Brieger, Dirk De Clercq, Jolanda Hessels and Christian Pfeifer

The purpose of this paper is to understand how national institutional environments contribute to differences in life satisfaction between entrepreneurs and employees.

688

Abstract

Purpose

The purpose of this paper is to understand how national institutional environments contribute to differences in life satisfaction between entrepreneurs and employees.

Design/methodology/approach

Leveraging person–environment fit and institutional theories and using a sample of more than 70,000 entrepreneurs and employees from 43 countries, the study investigates how the impact of entrepreneurial activity on life satisfaction differs in various environmental contexts. An entrepreneur’s life satisfaction arguably should increase when a high degree of compatibility or fit exists between his or her choice to be an entrepreneur and the informal and formal institutional environment.

Findings

The study finds that differences in life satisfaction between entrepreneurs and employees are larger in countries with high power distance, low uncertainty avoidance, extant entrepreneurship policies, low commercial profit taxes and low worker rights.

Originality/value

This study sheds new light on how entrepreneurial activity affects life satisfaction, contingent on the informal and formal institutions in a country that support entrepreneurship by its residents.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 26 no. 4
Type: Research Article
ISSN: 1355-2554

Keywords

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Book part
Publication date: 24 August 2011

Breda Kenny and John Fahy

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network…

Abstract

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Details

Interfirm Networks: Theory, Strategy, and Behavior
Type: Book
ISBN: 978-1-78052-024-7

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Article
Publication date: 8 May 2017

Mohammed Ngoma, Abaho Ernest, Sudi Nangoli and Kusemererwa Christopher

The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research…

1398

Abstract

Purpose

The purpose of this paper is to investigate entrepreneurial orientation (EO) as a predictor of internationalisation of small- and medium-sized enterprises (SMEs). The key research question is “to what extent do the dimensions of EO (innovativeness, proactiveness and risk taking) predict internationalisation of SMEs?”

Design/methodology/approach

The study adopts a cross-sectional survey to collect data from 282 SMEs, with the use of a multi-dimensional self-administered questionnaire. All the measures in this study were adopted from existing instruments from previous studies and all showed a CVI above 0.8. Data were analysed quantitatively using descriptive statistics, correlations and hierarchical regression. The nature and strength of the relationships between the variables was tested using the zero-order bivariate correlation analysis.

Findings

The study establishes a significant relationship between the dimensions of EO and internationalisation of SMEs.

Research limitations/implications

This paper contributes to the corpus of literature on internationalisation of SMEs. Future research should consider the major constructs from a longitudinal point of view given that cross-sectional studies sometimes fail to examine the interaction effect of the variables.

Practical implications

The paper illustrates how EO dimensions can influence an entrepreneur’s decision to go international especially handling the process of internationalisation and its dynamics.

Originality/value

The paper provides contextual evidence from a developing country to the effect that as local investors get more inclined to EO, they in the process ease their way to joining the international business arena.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 13 no. 2
Type: Research Article
ISSN: 2042-5961

Keywords

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Article
Publication date: 26 August 2014

Srinivasa Rao

This paper aims to focus on micro-level women entrepreneurs from a developing country, India (n = 180), their educational and developmental needs and impact on their business…

978

Abstract

Purpose

This paper aims to focus on micro-level women entrepreneurs from a developing country, India (n = 180), their educational and developmental needs and impact on their business performances and growth.

Design/methodology/approach

Thirty participants (1:10 ratio) were selected from each cohort/location based on prescribed eligibility criteria covering various backgrounds and industry profiles from six cohorts across India.

Findings

It was found that entrepreneurship education and development programs resulted in revenue growth and also employment generation, thereby impacting society at large. This study also demonstrated improvement of self-confidence levels and strategic thinking by the women entrepreneurs, which benefited their business performances and growth.

Social implications

Because this study is first of its kind from a developing country like India, it also contributes to entrepreneurship literature by examining and confirming employment generation and thereby impacting society at large (multiplier effects). This study is also unique in the context of the developing world in explicating the impact of education programs and its impact on revenue growth and profitability, which is considered as a major factor for economic development.

Originality/value

This is purely an original study carried out in India.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 6 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

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Article
Publication date: 26 May 2022

Wided Ragmoun

This paper aims to analyse the impact of institutional quality, economic factors and unemployment on entrepreneurial activity. The dynamic approach adopted in this study permits…

467

Abstract

Purpose

This paper aims to analyse the impact of institutional quality, economic factors and unemployment on entrepreneurial activity. The dynamic approach adopted in this study permits to evaluate the simultaneous influence of specific factors on total entrepreneurial activity.

Design/methodology/approach

A quantitative approach through a panel vector autoregression analysis was adopted to take into account possible endogeneity issues, and a short-run Granger test was used to test causality between variables to fill the theoretical and empirical gap about the joined and dynamic effect of institutional quality, economic factors and unemployment on total entrepreneurship activity as a dependent variable.

Findings

The use of a dynamic estimation approach demonstrates that three kinds of relative effects exist: durable and positive effects between industrial production index (IPI), stability and self-employment, a limited positive effect which exists during a predeterminant period between dimensions of institutional quality and unemployment rate (UR) and finally negative effects between IPI and UR.

Research limitations/implications

In general, this study identifies three main effects: negative, temporary positive and perpetual positive. This is the same conclusion for the link between self-employment rates (SER) and institutional quality, measured by six dimensions. Three of these dimensions are especially important: political stability and the absence of violence, governmental effectiveness and regulatory quality.

Practical implications

In light of this study’s results and contrary to the idea admitted about the negative effect of unemployment on entrepreneurial activity, it seems that a relatively positive effect exists. By relative, the author means during a determinant period. It also has to be remembered that entrepreneurial activity was appreciated by the SER according to the recommendation of many previous researchers discussed at the beginning of this paper. Based on the model, three levels of relations emerge. This permits this study to dress a hierarchical list of alternatives to promote entrepreneurial activity. Economic policymakers have to reconsider the importance of the UR as the best occasion to create firms if good institutions and economic support are provided. Good governance and stability are the most important institutional determinants with a long positive effect. This conclusion suits Glaeser and Saks (2006) as well as Ojeka et al. (2019).

Social implications

This research offers considerable scientific evidence to make decisions and orient decisions-makers about policies adopted to increase institutional quality, reducing unemployment and stimulate economic activity, but it is still necessary to reconsider these results for developing countries. It is hoped that future researchers enrich and reinforce the model to provide a critical pathway for successful entrepreneurship activity in this new normal. In the end, this crisis can be also treated as a good occasion to innovate and reconsider the thinking process to manage and operate in the economic world.

Originality/value

This study’s contribution is to help and assist economic policymakers to be aware of the relative importance of such determinants at the country level. The introduction of the relative importance of time is in agreement with the concept of entrepreneurial opportunity.

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