Business Commons^™

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

Stephanie A. Fernhaber

Purpose

Design/methodology/approach

The Quality Of Jobs Created By Entrepreneurs, Adam Seth Litwin, Philip Phan

Adam Seth Litwin

Few dare to challenge the conventional wisdom that small business is the engine of job creation. Indeed, in the United States, the image of the small business owner left largely unfettered to create novel products and services sits on the same cultural plane as baseball and apple pie, and one would be hard-pressed to find a policymaker who would openly question the wisdom that most new jobs arise either directly or indirectly from these small businesses. This near religious belief in the small business owner as job creator yields a steady stream of policies offering tax relief to small businesses, …

Quality Over Quantity: Reexamining The Link Between Entrepreneurship And Job Creation, Adam Seth Litwin, Philip Phan

Adam Seth Litwin

Although much has been written about the quantity of jobs created by entrepreneurs, scholars have yet to examine the quality of these jobs. In this article, the authors begin to address this important issue by examining nearly 5,000 businesses that began operations in 2004. They investigate the extent to which nascent employers provide what many think of as quality jobs—those offering health care coverage and a retirement plan. The authors find that because of small scale, constrained resources, and protection from institutional pressures, start-up companies do not provide their employees with either of these proxies for job quality, and their …

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

Pamela Kent

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 …

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

James Routledge

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 …

Contributions Of Home-Based Businesses To Regional Economic Development, Calvin Wang, Elizabeth Walker, Janice Redmond, John Breen

Janice Redmond Dr

Home-based businesses (HBBs) are the most dominant form of enterprise and the fastest growing business segment in most Western economies. HBBs have raised significant government interest based on their potential to deliver economic development and growth for the communities that they operate in. While international knowledge of the home-based sector is growing in the areas of HBB occurrence, operator characteristics and business activities, there is limited focus on HBBs operating within a regional context even though HBBs are thought to be more common outside urban areas. This paper presents results from a West Australian study that explored the profile of …

Intervention Strategies To Engage Small And Medium Sized Enterprises In Environmental Good Practice, Craig Parker, Janice Redmond, Mike Simpson

Janice Redmond Dr

Small and medium sized enterprises (SMEs) are an important part of the world economy but they are thought to be responsible for around 60% of all carbon dioxide emissions by businesses in the UK and 70% of all pollution. SMEs often have major problems with limited resources, limited knowledge and limited technical capabilities to deal with their own environmental impact. SMEs exhibit widely differing characteristics and behaviours where environmental issues are concerned. Yet under these conditions they are all expected to engage in environmentally responsible business for the greater good of society. Interventions that encourage good environmental behaviour are often …

Gender As A Predictor Of Planning In Small Business, Calvin Wang, Elizabeth Walker, Janice Redmond

Janice Redmond Dr

The increase in women-owned small businesses in recent times has led to a corresponding rise in interest in women entrepreneurship. While some of this interest has focused on differences between male and female operators and their business operations, there has been relatively little attention paid to gender comparisons in relation to small business planning. Given that women are broadly acknowledged to behave and manage their businesses differently from men, then knowledge of how gender might influence planning activities has important implications for the small business sector. Accordingly, this paper presents results of an empirical study into small business planning and …

Developing A Reputation For Incorruptibility In A Corrupt Environment, J Kline, Neil Campbell

Neil Campbell

We construct a simple two-stage model of reputation building in a corrupt environment. The existence of incorruptible firms helps corruptible firms establish a reputation for not paying bribes.

Firm Culture And Performance: Intensity's Effects And Limits., Patrick Murphy, Robert Cooke, Yvette Lopez

Patrick J. Murphy

No abstract provided.

Xcruza's Portable Solar Cooker: Eco-Entrepreneurism Challenges In Argentina, Jacob Massoud, Chistopher Leeds

Jacob Massoud

Twin Brothers In Arms Learn The Family Business, Justin Craig, Wayne Irava, Ken Moores

Justin B. Craig

ExtractIn this case, Moores and Barrett’s (2002) family business learning and life cycle framework has been used as the foundation, along with entrepreneurialorientation (EO) (Lumpkin and Dess 1996; Miller 1983) and the resource-based view of the firm (RBV) (Mahoney and Pandian 1992; Peteraf 1993; Wernerfelt 1984), for a review of an intriguing Australian second generation migrant family business.

Stewardship Climate Scale: Measurement And An Assessment Of Reliability And Validity, Justin Craig, Clay Dibrell, Donald Neubaum, Christopher Thomas

Justin B. Craig

Building on the seminal work of Davis, Schoorman, and Donaldson (1997), using a three study approach and a combined multi-level respondent sample of 847 from 237 firms, we develop a statistically valid and reliable 18-item measure to capture the degree to which executives act to engender a stewardship climate in their organizations. Nomological validity of our dual (psychological and situational) mechanism measure is established by demonstrating significant associations with multiple individual- and firm-level measures.

Strategic Planning And Flexibility: Governance Control Mechanisms In Family And Non-Family Firms, Clay Dibrell, Justin Craig, Donald Neubaum

Justin B. Craig

We examine governance systems within the contexts of family and non-family owned firms. Specifically, we suggest that while a formal governance mechanism (i.e., formal strategic planning) is positively associated with financial performance in both family and non-family firms, the relative benefit of such a formal governance structure is greater for non-family firms. We posit that strategic flexibility can also be used as a governance mechanism, but the value of this informal governance mechanism is greater for family firms. In a study of 354 firms using moderated regression analysis, we discovered the relative benefit of formal and informal governance mechanisms in …

Natural Environment, Market Orientation, And Firm Innovativeness: An Organizational Life Cycle Perspective, Clay Dibrell, Justin Craig, Eric Hansen

Justin B. Craig

Drawing upon the corporate social responsibility literature, we investigate the moderating effects of the natural environment and the stage of an organization’s life cycle on the market orientation to firm innovativeness relationship. Through 229 owners or chief executive officer respondents, our results establish evidence of (1) a positive linkage between market orientation and firm innovativeness; (2) natural environmental policy positively moderating the market orientation to firm innovativeness relationship; and (3) organizational life cycle negatively moderating market orientation to innovativeness. Our findings suggest ventures characterized as being early in the organizational life cycle are more likely to have a positive environmental …

Intrapreneurship In Multi-Generational Family Businesses, Robert Garrett, Clay Dibrell, Justin Craig

Justin B. Craig

Drawing from the agency and stewardship theory literature, this conceptual work explores the role of intrapreneurship (internal corporate venturing) in multi-generational family businesses. Specifically, governance and managerial considerations unique to family businesses are used to predict both the relatedness between a parent firm and its ventures, and how these internal new ventures are managed.

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

Keith Duncan

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 …

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

Ray McNamara

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 …

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

Simone Kelly

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 …

Managing Successful Innovation Delivery, Arcot Desai Narasimhalu

Arcot Desai NARASIMHALU

No abstract provided.

Contributions Of Home-Based Businesses To Regional Economic Development, Calvin Wang, Elizabeth Walker, Janice Redmond, John Breen

John M. Breen

Home-based businesses (HBBs) are the most dominant form of enterprise and the fastest growing business segment in most Western economies. HBBs have raised significant government interest based on their potential to deliver economic development and growth for the communities that they operate in. While international knowledge of the home-based sector is growing in the areas of HBB occurrence, operator characteristics and business activities, there is limited focus on HBBs operating within a regional context even though HBBs are thought to be more common outside urban areas. This paper presents results from a West Australian study that explored the profile of …

Matt Geiger (Com ’12) – Hoop Book Live

Dr. Harold Welsch

Hoop Book is a software firm that simplifies the scorekeeping process for school and recreational basketball teams, and won the 2010 Launch DePaul competition (for-profit track). Matt is currently running his venture part-time, with a business partner, while he completes his degree in Finance. In addition to receiving continued coaching through the Blueprint program, Matt is engaged with the Coleman Center as a speaker in entrepreneurship courses.

Milestone Payments Or Royalties? Contract Design For R&D Licensing, Pascale Crama, Bert De Reyck, Zeger Degraeve

Zeger Degraeve

We study how innovators can optimally design licensing contracts when there is incomplete information on the licensee's valuation of the innovation, and limited control over the licensee's development efforts. A licensing contract typically contains an up-front payment, milestone payments at successful completion of a project phase, and royalties on sales. We use principal-agent models to formulate the licensor's contracting problem, and we find that under adverse selection, the optimal contract structure changes with the licensee's valuation of the innovation. As the licensee's valuation increases, the licensor's optimal level of involvement in the development-directly or through royalties-should decrease. Only a risk-averse …

Incorporating The Family Dynamic Into The Entrepreneurship Process, Justin Craig, Noel Lindsay

Justin B. Craig

This research furthers our understanding of the interaction between the fields of entrepreneurship and family business. It presents a framework that introduces the family dynamic to Timmons’ driving forces model of entrepreneurship. The framework highlights the influence of the family in the entrepreneurship process and the importance of the fit among the three driving forces and the family. It highlights the importance of, and the pivotal roles played by, outside boards of directors when entrepreneurial activities are undertaken by family businesses. Using extracts from interviews with family and non-family executives and board members, the research employs a single case study …

Being The Boss And Working For A Boss: Upsides And Downsides, Justin Craig, Michael Schaper, Clay Dibrell

Justin B. Craig

Comparatively, very little of the Household Income and Labour Dynamics (HILDA) data set has been used to analyse the activities of Australian small business owner-operators, even though there are currently some 1.8 million small firms in existence. Using multiple waves of the HILDA survey, in this paper we investigate two important research questions related to life in a small business in Australia. Question one seeks to uncover differences between small business respondents and employees of private sector firms, by examining issues related to (i) life satisfaction, (ii) job satisfaction, (iii) individual priorities, (iv) perceived prosperity, (v) risk preferences, and (vi) …

Overcoming Liability Of Newness Through Legitimacy: A Stakeholder Salience Perspective, Clay Dibrell, Aaron Johnson, Ken Moores, Justin Craig

Justin B. Craig

Findings are presented on how start-up ventures in search of legitimacy are affected by internal and external stakeholders. Additionally, the salience that start-up entrepreneurs place on external and internal stakeholders in pre- and post-start-up legitimacy attainment is studied. Institutional theory, resource-based view of the firm, and stakeholder salience theory inform our discussion. using case and survey research methods nine start-up and three established Australian wineries from eight different regions are studied. Data collection consisted of: (1) semi-structure interviews with owner(s); (2) field research notes; and (3) a validation questionnaire. The findings suggest that start-ups, in this instance wineries, are able …

A 10-Year Longitudinal Investigation Of Strategy, Systems, And Environment On Innovation In Family Firms, Justin Craig, Ken Moores

Justin B. Craig

This article studies innovation in family firms, filling in some gaps in existent literature. The research addresses the idea of shifting leadership, different mechanisms of facilitating communication, and the importance to the firm of technical progress, linking each to innovation. Shifting leadership is addressed through the longitudinal design. Communication mechanisms are monitored through two constructs: scope of information and timeliness of information. Technical progress is included in an environmental uncertainty factor technoeconomic uncertainty. The findings suggest that linkages between established family firms and innovation may be substantially stronger than currently assumed by many.

Toward A Better Understanding Of Family Enterprising, Morris Mervyn, Justin Craig

Justin B. Craig

By integrating stewardship theory and entrepreneurial orientation perspectives we contribute to the understanding of the concept of family enterprising. Using excerpts from a single case study we provide insight into how a third generation Australian family has evolved and transformed by embracing the notion of family enterprising, which, we suggest, places them in a strong position for sustainability across generations.

Balanced Scorecards To Drive The Strategic Planning Of Family Firms, Justin Craig, Ken Moores

Justin B. Craig

The focus of this research is the measurement and management tool known as the Balanced Scorecard (BSC) and how it can be applied in the family business context. In this article we add familiness to the four BSC perspectives (financial, innovation and learning, customer, internal process) and illustrate how this can assist business development, management, and succession planning in family-owned businesses. We use an action research project to highlight how family businesses can professionalize their management by the adoption of a BSC strategy map that includes a family business focus and links the core essence of the family business with …

Entrepreneurs And Venture Capital: Attitudes And Understanding In New Zealand And Australia, Dean Prebble, Stephen Kelly

Adjunct Professor Stephen J Kelly

No abstract provided.