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Browsing Research by Department "Entrepreneurship"
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Publication Accumulating Knowledge Over Time Introduction to the Fourth FBR Review Issue(SAGE Journals, 2022-03) Cruz, Cristina; Brigham, Keith ; Kammerlander, Nadine; Kotlar, Josip; https://ror.org/02jjdwm75-Publication Breaking down the decision to externalise new corporate ventures(Taylor & Francis, 2018-10-08) Castro, Julio de; Palacios Florencio, Beatriz; Galán González, José Luis; Pizarro Moreno, María Isabel; https://ror.org/02jjdwm75Companies are faced with the problem of balancing autonomy and control of new corporate ventures created within the organisation. Utilising both transaction-cost and resource-based theories, we analyse what issues drive managers when making the decision of internalising or spinning off a Corporate Venturing (CV). Our results indicate that the primary drivers of such strategic decisions are near-term profitability, the risks involved and synergies with the firm. Our results indicate that rather than the potential of the venture in itself, the main driver of decisions are the potentials benefits and/or damage that CV could cause to the parent firm.Publication Catch Up with the Good and Stay Away from the Bad: CEO Decisions on the Appointment of Chief Sustainability Officers(Wiley, 2023-05-03) Wang, Taiyuan; Fu, Yingzhu; Rui, Oliver; Castro, Julio de; Agencia Estatal de Investigación; https://ror.org/02jjdwm75Why do some chief executive officers (CEOs) appoint chief sustainability officers (CSOs) for their firms while others do not? We answer this question by examining CEOs' attention allocation to competition for stakeholders' approval, which can be triggered by both industry peers' corporate social responsibility (CSR) and corporate social irresponsibility (CSiR). An increase in peers' CSR triggers CEOs' attention allocation by observing that peers have improved and thus pose a competitive threat to their own firms. An increase in peers' CSiR triggers CEOs' attention allocation by perceiving that stakeholders will demand more for sustainability and thus place higher sanctions on their own firms in the future. CEOs' attention allocated to industry peers' CSR and CSiR, in turn, can increase their perceived importance and urgency of appointing CSOs for their firms to ‘catch up with the good’ (responsible peers) and to ‘stay away from the bad’ (irresponsible peers). We also theorize the moderating roles of CEOs' motivational attributes, such that predominantly prevention-focused CEOs are more (less) likely to appoint CSOs as peers increase CSR (CSiR), and future-oriented CEOs are more (less) likely to appoint CSOs as peers increase CSiR (CSR).Publication Cracks in the wall: Entrepreneurial action theory and the weakening presumption of intended rationality(Elsevier, 2022-05) Hunt, Richard; Lerner, Daniel; Johnson, Sheri; Badal, Sangeeta; Freeman, Michael; https://ror.org/02jjdwm75Entrepreneurship scholarship finds itself in something of a quandary concerning rationality. While an increasingly large body of empirical work has found evidence of less-deliberative and even impulsive drivers of business venturing, the dominant theories of entrepreneurial action remain anchored to the assumption that intended rationality is a defining attribute of entrepreneurship. The growing schism between entrepreneurial action theory (EAT) on the one hand, and empirics and practice on the other hand, represents a consequential and exciting opportunity for the field to revisit its core assumptions regarding rationality, particularly the presence, role, and function of rational intentionality. In this study, we undertake a review and exploratory investigation of the assertion that without reasoned intentionality there is no entrepreneurship. Our work generates three important insights that contribute to rethinking key facets of the most prominent and influential EATs: alternative, non-rational pathways to business venturing exist with a non-ignorable prevalence; a proclivity towards reasoned intentionality is not invariably prescriptive; and, less-reasoned, less-deliberative tendencies do not constitute an entrepreneurial death sentence. Rather, entrepreneurs (including highly successful ones) embody a shifting blend of rational and non-rational proclivities, motivations, decisions, and actions.Publication Creating Value from the Outside In or the Inside Out: How Nascent Intermediaries Build Peer-to-Peer Marketplaces(Academy of Management, 2018-10-04) Kyprianou, Christina; https://ror.org/02jjdwm75Peer-to-peer marketplaces have fueled the growth of the sharing economy. Despite their proliferation, little systematic evidence and theory exists on how nascent intermediaries build this particular two-sided market. I examine this process through a value creation lens, focusing on how nascent intermediaries govern producers’ and consumers’ participation. Emerging insights from a theory building multi-case study suggest nascent intermediaries’ governance choices are associated with controlling supply-side heterogeneity and cross-side interactions, albeit to a different extent (low, high, or balanced). Shifts in intermediaries’ intensity of control over time reveal two alternative value creation processes. Intermediaries creating value “from the outside in” transition from low to high control of both aspects of participation. They initially open participation to all willing producers while they support producers’ and consumers’ autonomy in determining the terms of their transactions, but subsequently enforce strict control so as to encourage producers’ and consumers’ conformity to desirable behaviors. Alternatively, intermediaries creating value “from the inside out” continuously balance low and high control of at least one aspect of marketplace participation. They initially recruit a qualified core of producers, who they later leverage to recruit more qualified ones. At the same time, they transition from low to balanced control of cross-side interactions by leveraging producers’ and consumers’ resources and contributions. These findings highlight the unique value creation challenges in peer-to-peer marketplaces as well as the evolving role of intermediaries and customers in value creation. Implications for research on business models and value cocreation are also discussed.Publication Diffusing MNE subsidiary initiatives across national cultural distance: The role of organizational values sharing and knowledge sharing(2022) Kumar, Maya; Williams, Christopher; https://ror.org/02jjdwm75We investigate how internal sharing of values and knowledge in multinational enterprises (MNEs) influences the relationship between external national cultural distance and the adoption of subsidiary initiatives by headquarters. We draw on management control and knowledge-based theories and use a sample of 111 subsidiaries across various cultures and industries in the empirical test. As hypothesized, national cultural distance has a negative impact on subsidiary initiative diffusion, while organizational values sharing and knowledge sharing have positive effects. Internal values sharing does little to overcome the negative impact of national cultural distance, while internal knowledge sharing dampens this effect. Implications for MNE managers and research are discussed.Publication Dynamics of entrepreneurial well-being: Insights from computational theory(Elsevier Inc., 2024) Dimov, Dimo; Pistrui, Joseph; https://ror.org/02jjdwm75We explore the dynamics of entrepreneurial performance and well-being through computational theory. Our model connects mechanisms of work-related motivation and strain processes with the unfolding of an entrepreneurial process. The simulation results show that how an entrepreneur's energy ebbs and flows over their journey,charting certain venturing performance and levels of well-being,can be linked to distinct interplays of ambition,skill,self-regulation,and dynamism. Our work contributes a holistic account of entrepreneurship and well-being,stimulates computational modelling,and enriches discussions about the entrepreneurial future of work. © 2023 The Author(s)Publication Engaging in a New Field: Business-Owning Families’ Differential Approach to Impact Investing(Instituto de la empresa familiar, 2021-06-02) Cruz, Cristina; Justo, Rachida; Roche, Jeanne; https://ror.org/02jjdwm75We develop a theoretical framework explaining why and how business-owning families (BOF) engage in impact investing. Despite its exponential growth, the burgeoning field of impact investing is still subject to competing interpretations and varying practices. Building on the framework proposed by Nason et al. (2019b), we argue that a businessowning family’s frame of reference (backward vs. forward-looking and internally vs. externally oriented) constitutes a relevant heterogeneity that triggers a unique driver for engaging in impact investing and a distinct set of practices to do so.Publication Entrepreneurship Education as a First-Person Transformation(SAGE Publications Inc., 2022) Dimov, Dimo; Pistrui, Joseph; https://ror.org/02jjdwm75As entrepreneurship education spreads and aims to transform mindsets,its theories and methods need to be attuned to the first-person perspective of the learner. We provide a map for entrepreneurship education that bridges the subjective,inter-subjective,and objective as distinct varieties of knowledge and turns the classroom into a space for practical reasoning. It focuses on the world as it could be,brought alive in the first-person sense of possibility and shaped by new ways of seeing and doing. © The Author(s) 2020.Publication Entry of Providers Onto a Sharing Economy Platform: Macro-Level Factors and Social Interaction(SAGE Publications, 2020-02-11) Gerwe, Oskana; Silva, Rosario; Castro, Julio de; https://ror.org/02jjdwm75Despite the recent proliferation of sharing economy platforms, little is known about what drives providers (individual people who own assets) to enter onto a sharing economy platform. The platform does not own the assets that underlie transactions but depends on individuals to provide them. In the burgeoning market of home rental properties, we investigate the role of macro-level factors to explain geographical differences in the number of entries of providers with diverse motivations onto a sharing economy platform. Using a sample of listings posted by property owners on the Airbnb platform across different cities in Spain between 2010 and 2015, we examine how social and economic motivations of providers interact with macro-level antecedents to affect their entry. We show that macro-level drivers have a different effect on the entry of providers depending on the degree of face-to-face interaction between host and guest. We find that industry growth and the availability of underused assets increase the entry onto the platform of hosts who have little face-to-face interaction with guests, while the strictness of regulation decreases their entry. By contrast, the entry of hosts with high face-to-face interaction with guests is not affected by these factors. We discuss theoretical and research implications of the role of social interaction in provider entry and offer practical advice for those in the sharing economy about the role of social interaction in driving providers onto their platforms. The research reported in this paper was partially funded by the Spanish Ministry of Economy and Competitiveness and European Regional Development Fund (ERDF) Grant ECO2016-77205-P.Publication How do impact investors leverage non-financial strategies to create value An impact-oriented value framework(Science Direct, 2023-11-18) Justo, Rachida; Nachyła, Pola; https://ror.org/02jjdwm75One of the ways to understand the success of impact investing firms is to examine how they add value to the social enterprises they invest. Did their investment boost social and/or environmental change? And what type of support, beyond financial capital, can they provide to enhance impact? Drawing on a design-based methodology, we seek to address some of these questions by developing a tool called the Impact Oriented Value Framework. Putting impact at the centre of the funds' purpose, the framework provides actionable solutions to infuse impact into investors’ non-financial support strategies and activities, enhancing their additionality to portfolio companies as well as their contribution to the impact ecosystem.Publication How do impact investors leverage non-financial strategies to create value? An impact-oriented value framework(Elsevier, 2024-06) Justo, Rachida; Nachyła, Pola; https://ror.org/02jjdwm75One of the ways to understand the success of impact investing firms is to examine how they add value to the social enterprises they invest. Did their investment boost social and/or environmental change? And what type of support, beyond financial capital, can they provide to enhance impact? Drawing on a design-based methodology, we seek to address some of these questions by developing a tool called the Impact Oriented Value Framework. Putting impact at the centre of the funds' purpose, the framework provides actionable solutions to infuse impact into investors’ non-financial support strategies and activities, enhancing their additionality to portfolio companies as well as their contribution to the impact ecosystem.Publication How Long Does It Take to Get to the Learning Curve?(Academy of Management, 2020-02-01) Musaji, Serghei; Schulze, William; Castro, Julio de; https://ror.org/02jjdwm75The learning curve describes learning from experience, even in its earliest phases, as an iterative process in which the ratio of positive to negative outcomes rises sharply with experience before becoming subject to diminishing returns. In contrast, the organizational learning literature suggests that learning when experience is limited is difficult, and unfavorable outcomes are common. Resolution of these competing claims is especially important in the context of strategic decision-making, where the costs of unreliable learning are significant. We develop theory and draw on a unique dataset of strategic decisions – the selection of franchisee applicants by a large global remittances firm over a 14-year period – to test competing predictions about how long it takes to “get to” the learning curve: that is, to the point after which performance trends reliably positive. Results from 3,620 selection decisions in 165 markets indicate that it took this organization about 19 decisions to reach the learning curve. Further, we identify factors that reduce the cost of reaching the learning curve, as well as the number of decisions required to reach it. Implications for organizational learning theory in general and strategic decision-making in particular are explored.Publication Information source and entrepreneurial performance expectations: Experience-based versus description-based opportunity evaluations(Elsevier Inc., 2024) Pindard, Lejarraga, Maud; Ministerio de Ciencia e Innovación; https://ror.org/02jjdwm75How does the information source—experiential or descriptive—used by nascent entrepreneurs affect their performance expectations? Since judgments based on experience diverge from those based on descriptions,especially when prospects include a low-probability event such as entrepreneurial success,we argue that entrepreneurs’ expectations of success differ as a function of the information source they consult. We also contend that industry conditions interact with the information source to determine expectations. In two studies using field data from entrepreneurial settings,we found that experience generated lower expectations than did descriptions in unfavorable industry conditions (when success was a low-probability event). This pattern was reversed in favorable conditions (when success was more likely). Our findings provide field evidence consistent with the description–experience gap literature,thereby shedding new light on how nascent entrepreneurs’ informational environment shapes how they appraise business opportunities. © 2023 The Author(s)Publication Innovation in family firms: The relative effects of wealth concentration versus family-centered goals(SAGE, 2020-12-01) Becerra, Manuel; Graves, Chris; Cruz, Cristina; https://ror.org/02jjdwm75Drawing on agency and behavioral perspectives, we disentangle two critical determinants of innovation strategies among family firms, namely, the family's wealth concentration in its business (WC) and the family's emphasis on family-centered goals. Our results from a survey of Australian family firms show opposite and completely independent effects of WC and family-centered non-economic goals (FCG-NE) on family firms' innovation strategies. While higher WC is negatively associated with firm innovation, a greater emphasis placed on FCG-NE has a positive impact, which seems to be the key determinant of innovation strategies in family firms.Publication Institutions and Entrepreneurial Activity: The Interactive Influence of Misaligned Formal and Informal Institutions(Informs, 2018-06-15) Skousen, Bradley; Cheng, Joseph; Eberhart, Robert; Eesley, Charles; https://ror.org/02jjdwm75We contribute to the institutions and entrepreneurship literature by examiningthe interactive influence of formal and informal institutions on new business creation,survival, and growth. Prior literature demonstrates how formal and informal institutionsshape the level of entrepreneurship. This paper extends this to examine the cases whenformal and informal institutions conflict with one another to cast an analytic eye on whycountries differ in the type of entrepreneurial activity in terms of entry, survival, andgrowth. We argue that national and regional differences can be better explained by theinteractive influence of formal and informal institutions. Moreover, we argue that infor-mal institutions dominate formal institutions due to the former’s characteristics of deepembeddedness and resistance to change over time. These ideas are presented and summa-rized into a typology of institutional effects on entrepreneurship activity depending on thecombination of formal and informal institutions. The paper concludes with implicationsfor future theory and research on the joint influence of different institutional effects andparticularly on the intersection between institutions and entrepreneurship.Publication It’s a Family Affair: A Case for Consistency in Family Foundation Giving and Family Firm Community CSR Activity(Springer Science and Business Media B.V., 2024) Cruz, Cristina; Milanov, Hana; Klein, Judit; Cruz, Cristina; https://ror.org/02jjdwm75Although most business-owning families (BOFs) that operate large family firms practice community social engagement both in private via family foundations and in the business domain via community corporate social responsibility (CSR) programs,the relationship between their activities in the two domains remains unclear. Prior literature speculates that BOFs will deprioritize firms’ community CSR when they have family foundations as more efficient vehicles to achieve socioemotional wealth (SEW),which would imply that such BOFs are less ethical in operating their firms. We contrast these speculations by enriching the socioemotional wealth (SEW) approach with instrumental stakeholder theory and cue consistency arguments and theorize that BOFs seek to ensure consistency between their activities in the two domains. Using data from 2008 to 2018 on the 95 largest US public family firms whose BOFs also operate private foundations,we show a positive relationship between family foundation giving and firm community CSR activity. Furthermore,we provide evidence for the boundary conditions of this relationship,showing that it is weaker for firms that do not share the family’s name and stronger for those firms with family leaders who also lead their families’ foundations.Publication Knocking on Heaven's Door? Entrepreneurship, Firm Growth, and Health Risks(Sage Journals, 2024-10-14) Partanen, Jukka; Tenhiälä, Aino; Kautonen, Teemu; Jokela, Markus; Lerner, Daniel; McKelvie, Alexander; https://ror.org/02jjdwm75We examine the physical health consequences to entrepreneurs of firm growth and decline. Using register-based panel data (2000–2021), we find that entrepreneurs and hired CEOs are, on average, healthier and live longer than individuals from a socio-economically similar random sample from the general population. However, our findings also reveal that entrepreneurs are more likely to fall ill during their tenure and die younger than hired CEOs. Importantly, our findings demonstrate that both cumulative exposure to growth and episodic, rapid declines in sales and in the number of employees are equally taxing for entrepreneurs and hired CEOs.Publication La Legitimidad Empresarial Como Un Intangible. Un Análisis En El Contexto De Industrias Controversiales(2019) Castro, Julio de; Siraz, Sonia; https://ror.org/02jjdwm75Una revisión de la literatura permite identificar las dimensiones que afectan la legitimidad socio-política de las “industrias controvertidas”, que son aquellas relacionadas con productos, conceptos o servicios que, por razones de decencia, delicadeza, moralidad, o miedo, causan sensaciones de disgusto, ofensa, o rabia cuando se las menciona o presenta de una manera abierta. Dichas dimensiones se refieren al bienestar animal, bienestar del medio ambiente, bienestar humano, bienestar moral, protección de la herencia cultural y bienestar socio económico. Con esta clasificación y sus ejemplos se pretende un mejor examen de los determinantes de legitimidad en industrias controvertidas, lo que resulta un área de gran interés para la investigación de activos intangibles.Publication Mirror : A gendered lens on female entrepreneurs’ facial attractiveness in reward-based crowdfunding(Elsevier Inc., 2023) Seigner, Benedikt; Milanov, Hana; https://ror.org/02jjdwm75Scholars investigating women's attractiveness have documented its disadvantages (the “beauty is beastly” effect),especially in male-typed domains,including entrepreneurship. However,reward-based crowdfunding research demonstrates that these platforms reverse gender biases typically found in traditional entrepreneurial finance. Thus,in reward-based crowdfunding,the adverse effect of women's attractiveness needs to be re-examined. In a sample of 7447 Kickstarter projects,we find that facial attractiveness increases funding success for women more than for men and that sex differences in attractiveness effects are greater in male-typed categories like technology. A post-hoc reveals a surprising attractiveness penalty for men in the technology sector and offers insights for future research. © 2023 The Authors