Sascha Kraus, Thomas Niemand, Jantje Halberstadt, Eleanor Shaw and Pasi Syrjä
Despite growing scholarly interest in social entrepreneurs and the social enterprises (SE) they create, few studies have examined the hybridity of SE including, surprisingly…
Abstract
Purpose
Despite growing scholarly interest in social entrepreneurs and the social enterprises (SE) they create, few studies have examined the hybridity of SE including, surprisingly, whether they adopt an entrepreneurial orientation (EO). One explanation for this may be the continuing lack of an appropriate scale measuring social entrepreneurship orientation (SEO). The purpose of this paper is to address this research gap by proposing an initial SEO scale based on input from scholars in the fields of entrepreneurship and social entrepreneurship.
Design/methodology/approach
This study employed mixed methods and a two stage design. In stage 1, a Delphi study with 18 researchers with expertise of investigating entrepreneurship and social entrepreneurship was used to generate constructs combining aspects of both social and EOs. In stage 2, the authors assessed the face validity of the derived items from the Delphi study by conducting a survey with 82 such experts.
Findings
This paper provides fresh empirical insights into how SEO can be measured by proposing, for the first time, a 12 item scale with four dimensions for the first time.
Research limitations/implications
The authors recommend that future studies employ quantitative methods, particularly with firms exhibiting differing levels of the “socialness” dimension which the authors propose and that such studies involve a variety of research informants. Statistical analysis of data collected across large sample sizes will help evaluate the reliability and validity of the scale which the authors propose.
Practical implications
This paper includes implications for future research based on the proposed SEO measurement scale.
Originality/value
This paper develops the first SEO scale based on empirical data collected from experts in the fields of entrepreneurship and social entrepreneurship.
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The purpose of this paper is to learn more about how regulation affects small business in the Finnish context. The authors create a framework for understanding owner-managers’…
Abstract
Purpose
The purpose of this paper is to learn more about how regulation affects small business in the Finnish context. The authors create a framework for understanding owner-managers’ attitudes towards business legislation. It is authors’ understanding that not enough is known about how small firms make strategic choices that drive business in a highly regulated environment.
Design/methodology/approach
This paper contributes to the existing knowledge of entrepreneurship and small business management. The empirical data used to test the hypotheses were drawn from the postal survey. Differences between owner-managers’ attitudes towards business regulation were identified with factor and cluster analyses methods.
Findings
Regulation often exerts only a limited influence over owner-managers’ decision-making. Family entrepreneurs are more compliant towards business regulation. Regulation is not too heavy a burden to all in business in Finland, even though Finland is a highly regulated country.
Research limitations/implications
The real impact of regulation on small firms’ performance is really difficult to prove, because small firms operating in the same regulatory context have different performance outcomes. Additionally, often owner-managers’ awareness of specific regulations is limited.
Practical implications
There could be gap between the presumed effect of policymakers and the real effect of regulation among owner-managers. In Finland, policymakers should find other motivations to encourage business than lightening the regulatory burden. They should concentrate more providing external support to small firms in the form of information, training and financing new small firms.
Originality/value
It is authors’ understanding that not enough is known about how small firms make strategic choices that drive business in a highly regulated environment.
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Juha Sakari Soininen, Kaisu Puumalainen, Helena Sjögrén, Pasi Syrjä and Susanne Durst
The purpose of this paper is to examine the antecedents of entrepreneurial orientation (EO) and also apply the values-attitudes-behavior framework in the context of…
Abstract
Purpose
The purpose of this paper is to examine the antecedents of entrepreneurial orientation (EO) and also apply the values-attitudes-behavior framework in the context of entrepreneurial behavior.
Design/methodology/approach
A quantitative approach is used to test the hypothesis. The paper employs empirical survey data and partial least squares path modeling in the analyses.
Findings
The analyses reveal that owner-manager's intrinsic work values are strongest drivers of innovative and proactive behaviors, but also other work values are related to EO. Furthermore, growth-oriented attitude is positively related to innovativeness and proactiveness, while more survival-oriented managers exhibit less risk-taking behavior.
Research limitations/implications
In this exploratory study the authors did not control for sector differences. Yet, as sector characteristics may influence the drivers of EO behavior.
Practical implications
The paper provides implications for policy makers and practitioners. Entrepreneurial activities and start-ups play a crucial role in many countries as they are vital for economic growths and the countries’ well-being. Given this importance any effective public policy intended to promote new firm creation or entrepreneurial growth of existing small businesses will have to recognize the heterogeneity of entrepreneurs and identify the potential or existing entrepreneurs who are likely to be affected by such policies.
Originality/value
The paper is one of the first works linking the entrepreneur's work values and attitudes to EO.
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Juha Soininen, Kaisu Puumalainen, Helena Sjögrén and Pasi Syrjä
The purpose of this paper is to examine the role of the entrepreneurial orientation (EO) in global economic crisis and whether it can mitigate the negative effects of economic…
Abstract
Purpose
The purpose of this paper is to examine the role of the entrepreneurial orientation (EO) in global economic crisis and whether it can mitigate the negative effects of economic crisis both on firm's operations and on firm's financial performance.
Design/methodology/approach
A quantitative approach is used to test the hypotheses. Principal component analysis and multiple regression analysis are used on the empirical survey data.
Findings
Results based on a sample of almost 200 Finnish small and medium‐sized enterprises indicated that the different dimensions of the EO can have diverging effects on how firms are impacted by the recession. In general, the more innovative and proactive the firm is, the less its operations are affected by the recession and the more risk‐taking the firm is, the more its profitability is affected by recession.
Research limitations/implications
A longitudinal design – rather than the current cross‐sectional design – would give a better premiss to explore the causal relationships among the research variables.
Originality/value
The paper is one of the first works linking EO with the effects of recession at the firm's operational level and the paper expands prior knowledge by taking the EO‐performance relationship into the context of recession.
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Helena Sjögrén, Kaisu Puumalainen and Pasi Syrjä
The paper seeks to explain the differences in drawings (e.g. owner‐manager dividends and salary) strategies among small business managers to show that owner‐managers' personal…
Abstract
Purpose
The paper seeks to explain the differences in drawings (e.g. owner‐manager dividends and salary) strategies among small business managers to show that owner‐managers' personal work values impact on the strategic choices of firms. It also examines the relationships between owner‐managers' work values and the amount of dividends the entrepreneurs take out of the business in order to follow the chosen strategy.
Design/methodology/approach
This paper contributes to the existing knowledge of entrepreneurship and small business management. Legal constraints and strategic motivations are essential to drawings strategy. The paper analyses the owner‐managers' work‐related values as a potential determinant of the drawings strategy. The empirical data used to test the hypotheses were drawn from a mail survey and financial statements. The final drawings strategy scales were formed with the help of exploratory factor analysis.
Findings
The findings provided evidence that work values are related to drawings strategy factors, and the factors reflect entrepreneurs' attitudes to drawings taken out of the business. However, the authors could not find any relationship between the drawings strategy and how entrepreneurs behave when they actually take dividends.
Practical implications
The findings of this research surprisingly provided evidence that entrepreneurs are unaware of the peremptory provisions of the Finnish Limited Liability Companies Act. When entrepreneurs decide on the amount of dividends, tax legislation clearly dominates their decision making. This could lead to a situation where the entrepreneur takes more dividends than the solvency test of the Finnish Limited Liability Companies Act allows.
Originality/value
This paper contributes to the existing knowledge of entrepreneurship and small business management.