Business Commons^™

Is More Always Better? Risk Trade-Offs Among Internationalizing New Ventures, Stephanie Fernhaber, Patricia Mcdougall-Covin

Stephanie A. Fernhaber

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Purpose

– The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance.

Design/methodology/approach

– New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test …

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Performance And Growth In Entrepreneurial Firms: Revisiting The Union-Performance Relationship, Rosemary Batt, Theresa M. Welbourne

Rosemary Batt

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[Excerpt] A substantial body of research has examined the relationship between unions and firm performance. It generally has found a positive relationship between unions and productivity and a negative relationship between unions and financial performance (Freeman & Medoff, 1984; Addison & Hirsch, 1989; Belman, 1992; Freeman, 1992). The exit/voice model is most commonly used to explain this paradox (Freeman & Medoff, 1984). Freeman and Medoff argued that the “monopoly power” of unions leads to high union wages and restrictive work rules, both of which raise the costs of production and lower profit margins. The presence of unions, however, also lowers …

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Corporate Venturing In Family Business: The Effects On The Family And Its Members, Gaia Marchisio, Pietro Mazzola, Salvatore Sciascia, M. Miles, Joseph Astrachan

Gaia Marchisio

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Previous literature on corporate entrepreneurship (CE) in family business (FB) focusses on the determinants of CE and presents conflicting results on its effects on firm-level performance. We argue that previous studies have overlooked the idea of FBs being complex social systems comprising three components, controlling families, business entities and individual family members; and any business activity in a FB should also be studied with respect to its effects on the family and individual family members, which ultimately impacts the performance. Moreover, previous FB literature addresses CE as a monolithic concept and does not separate its two primary types: corporate venturing …

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The Proactive Behavior Of Younger Salespeople: Antecedents And Outcomes, Michael Mallin, Charles Ragland, Todd A. Finkle

Todd A Finkle

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The purpose of this study is to model and test some of the antecedents (individual characteristics) and outcomes (selling performance) of proactive behavior among younger salespeople. Using social cognitive theory agency perspective, we extend the existing proactive behavior literature into the sales domain. We sampled 278 industrial salespeople and tested a model to confirm that younger salespeople tend to engage in proactive behaviors when they are intrinsically motivated, confident in the tasks of selling, and willing to take risks. Proactive behavior, in turn, resulted in our salesperson sample demonstrating high levels of behavior performance and job involvement. Our findings may …

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Do Corporate Governance Recommendations Improve The Performance And Accountability Of Small Listed Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart

Pamela Kent

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This study examines whether the implementation of the 2003 Australian Securities Exchange Limited governance recommendations influenced the governance choices of small companies and whether compliance improves their accounting and market performance and earnings quality. Our analysis examines small and large companies because we are interested in the different effects of the governance recommendations on the two groups. The analysis shows a significant shift by small and large companies to comply with the recommendations around the time of their introduction. We find that formation of an audit committee surrounding the reform period is significantly associated with improved earnings quality for small …

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Do Corporate Governance Recommendations Improve The Performance And Accountability Of Small Listed Companies?, Jacqueline Christensen, Pamela Kent, James Routledge, Jenny Stewart

James Routledge

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This study examines whether the implementation of the 2003 Australian Securities Exchange Limited governance recommendations influenced the governance choices of small companies and whether compliance improves their accounting and market performance and earnings quality. Our analysis examines small and large companies because we are interested in the different effects of the governance recommendations on the two groups. The analysis shows a significant shift by small and large companies to comply with the recommendations around the time of their introduction. We find that formation of an audit committee surrounding the reform period is significantly associated with improved earnings quality for small …

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The Relationship Of Achievement Motivation To Entrepreneurial Behavior: A Meta-Analysis, Christopher J. Collins, Paul J. Hanges, Edwin A. Locke

Christopher J Collins

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Entrepreneurship is a major factor in the national economy; thus, it is important to understand the motivational characteristics spurring people to become entrepreneurs and why some are more successful than others. In this study, we conducted a meta-analysis of the relationship between achievement motivation and variables associated with entrepreneurial behavior. We found that achievement motivation was significantly correlated with both choice of an entrepreneurial career and entrepreneurial performance. Further, we found that both projective and self-report measures of achievement motivation were valid. Finally, known group studies yielded a higher validity coefficient than did individual difference studies.

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Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara

Keith Duncan

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We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …

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Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara

Ray McNamara

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We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …

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Performance Of Family Firms During The Global Financial Crisis: Does Governance Matter?, Husam Aldamen, Keith Duncan, Simone Kelly, Ray Mcnamara

Simone Kelly

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We investigate whether better corporate governance impacts the performance of family versus non-family firms during the Global Financial Crisis (GFC). If good governance matters then its impact should be amplified during times of exogenous financial shocks. Furthermore the impact of governance will be more pronounced for family firms as family firms are more resilient, have greater access to survival capital and have a longer term decision making focus. We find that family firms have better governance but family firms have a lower earnings weight in valuation models. However we do find that better governance increased the variability in value however …

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Effective Virtual Teams For New Product Development, Nader Ale Ebrahim, Shamsuddin Ahmed, Salwa Hanim Abdul Rashid, Zahari Taha

Nader Ale Ebrahim

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At present, the existing literature shows that the factors which influence the effectiveness of virtual teams for new product development are still ambiguous. To address this problem, a research design was developed, which includes detailed literature review, preliminary model and field survey. From literature review, the factors which influence the effectiveness of virtual teams are identified and these factors are modified using a field survey. The relationship between knowledge workers (people), process and technology in virtual teams is explored in this study. The results of the study suggest that technology and process are tightly correlated and need to be considered …

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New Venture Growing Pains: When Being Acquired Is An Appropriate Remedy, Timothy Kiessling, Justin Craig

Justin B. Craig

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Our empirical research explores acquisitions of small entrepreneurial firms with a focus on the entrepreneurial management team (EMT) of the target firm. Utilizing the theoretical foundations of Resource Based View and Contract Theory we explore the dynamics of post acquisition performance of the target firm and the retention of the EMT. While controlling for firm size, type of purchase, ownership of target firm and industry dynamics, our results of a questionnaire survey of acquiring firms' top managers suggest that transfer or development of the implicit contract with the target firms' EMT positively affect both retention and performance.

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A Comparative Analysis Of The Performance Of Emerging Versus Nonemerging Industry Initial Public Offerings, Todd A. Finkle, Reinhold Lamb

Todd A Finkle

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The Relationship Between Boards Of Directors And Initial Public Offerings In The Biotechnology Industry, Todd A. Finkle

Todd A Finkle

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