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Article
Publication date: 27 July 2023

Jing Wang, Zeyu Xing and Rui Zhang

This study aims to investigate the tendency for firms, exhibiting an entrepreneurial spirit in their growth strategies, to engage in misconduct within the context of China's…

Abstract

Purpose

This study aims to investigate the tendency for firms, exhibiting an entrepreneurial spirit in their growth strategies, to engage in misconduct within the context of China's rapidly developing economy. The authors also examine how this relationship is influenced by governance mechanisms, specifically management shareholding and executive functional diversity. Furthermore, the authors explore the mediating roles of organizational complexity and performance pressure in linking entrepreneurial growth to firm misconduct. This research provides a novel perspective for understanding the impact of entrepreneurial growth on corporate ethical risks, and offers practical insights for maintaining ethical standards in firms during their pursuit of growth.

Design/methodology/approach

This study focuses on publicly traded, mature companies that exhibit an entrepreneurial inclination in their growth strategies, demonstrating entrepreneurial vigor through activities such as product innovation and market expansion. This exploration incorporates both theoretical and empirical approaches, scrutinizing A-share listed companies in China from 2008 to 2019. To validate the robustness of this study's findings, the authors have applied diverse methodologies such as propensity score matching, classification regression, and alternative indicator analysis.

Findings

This study found that the entrepreneurial growth-oriented strategy is positively related to firm misconduct. It also uncovers that governance mechanisms like management shareholding and executive functional diversity moderate this relationship. Moreover, organizational complexity and performance pressure partially mediate the relationship between an entrepreneurial growth strategy and firm misconduct.

Research limitations/implications

For instance, more detailed categorization of corporate misconduct, based on punishment severity, could be explored. Additional characteristics like age, education, gender, and team/board diversity could help further understand the relationship between entrepreneurial growth strategy and misconduct. By addressing these limitations and exploring further avenues for research, the authors can deepen the understanding of this relationship and provide valuable insights for firms seeking to mitigate potential risks.

Practical implications

First, for regulators, shareholders, creditors and investors, knowing and understanding the relationship between growth-oriented strategies and corporate violations is helpful for them to scientifically evaluate the potential risks that may exist in the company, and can also carry out differentiated supervision on the company based on different types of company-oriented strategies. Second, when designing the corporate governance mechanism, listed companies should fully consider the role of management shareholding. Finally, executives should treat cross-functional experience dialectically, especially in growth oriented strategic companies.

Social implications

This research provides a novel perspective for understanding the impact of entrepreneurial growth on corporate ethical risks, and offers practical insights for maintaining ethical standards in firms during their pursuit of growth.

Originality/value

This study stands out by examining the influence of entrepreneurial growth strategy on firm misconduct, thus enhancing previous studies that primarily centered on entrepreneurial start-ups. The authors offer a nuanced comprehension of the potential risks intrinsic to corporate entrepreneurship and highlight the crucial role of efficient governance structures in curbing corporate misbehavior while fostering entrepreneurial growth.

Details

Journal of Small Business and Enterprise Development, vol. 30 no. 7
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 16 February 2024

Maria Palazzo

The globalisation of markets, emerging concepts of sustainable development, and circular economy have defined the boundaries within which organisations must compete and address…

Abstract

The globalisation of markets, emerging concepts of sustainable development, and circular economy have defined the boundaries within which organisations must compete and address the needs of key stakeholders. As circumstances change, boundaries are often replaced by the relationships between companies and the communities they serve. Consequently, strategy has become a central aspect of sustainable leadership and the foundation for implementing strategic management in a dynamic system of relationships. Every company is born and grows within social and economic ecosystems. Drawing on the metaphor of biology, ecosystems are described as dynamic interconnections among various elements that influence and foster entrepreneurship. Interconnections between players (such as marketplaces, organisations, governments, and universities) create a flow of expertise, abilities, knowledge, experience, and tangible resources. Economic and social ecosystems involve various actors and components that continuously coexist and interact, leading to the creation of numerous mutual relationships. Consequently, it is crucial for managers to gain a comprehensive understanding of the internal and external environments. Various decision-making tools and strategies can be used to achieve this goal. These tools were developed to assist managers, researchers, and consultants in making informed decisions under complex scenarios. This chapter presents several decision-making strategies and tools, including the Boston Consulting Group (BCG) matrix, General Electric (GE) matrix, Balanced Scorecard (BSC), PEST, PESTEL analysis, and SWOT analysis.

Details

Rethinking Decision-Making Strategies and Tools: Emerging Research and Opportunities
Type: Book
ISBN: 978-1-83797-205-0

Keywords

Article
Publication date: 15 August 2023

A. John William, M. Suresh and Nagamani Subramanian

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource…

Abstract

Purpose

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource shortages, shifting consumer demand and heightened competition. This research aims to discover the aspects that enhance SMEs' competitiveness and performance.

Design/methodology/approach

By analyzing literature and consulting experts, 10 factors that boost a firm's competitiveness were identified. The total interpretive structural modeling (TISM) method was then used to determine their interaction and structural hierarchy. Neutrosophic-MICMAC analysis was employed to assess the driving-dependence power of each factor.

Findings

The study discovered that the factor, namely “entrepreneurial orientation,” was found to be a significant one. “Manufacturing strategy” was found to be extremely dependent on the remaining competitive advantage factors.

Research limitations/implications

This SME-focused framework can be adopted by large businesses to enhance organizational performance by focusing on critical factors. The study depends on experts' judgment, which might be biased. Findings will assist SMEs in identifying significant factors influencing competitive advantage and relationships, increasing awareness of factors contributing to competitive edge.

Practical implications

The results of the research may encourage SME sector managers and practitioners to prioritize the factors that contribute to a firm's competitive advantage.

Originality/value

The majority of research on SME competitive advantage focuses on individual aspects. To add to the body of knowledge on the subject, this study applies the TISM technique to Indian SMEs to identify the contextual interactions among factors that increase long-term competitiveness.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 4 January 2022

Rose Boitumelo Mathafena and Jabulile Msimango-Galawe

The study aims to investigate the extent to which interfunctional coordination (IFC) moderates the relationship between entrepreneurial orientation (EO), market orientation (MO…

Abstract

Purpose

The study aims to investigate the extent to which interfunctional coordination (IFC) moderates the relationship between entrepreneurial orientation (EO), market orientation (MO) and organisational opportunity exploitation (OE) and business performance (BP); second, to examine the impact of EO, MO and organisational OE on the BP.

Design/methodology/approach

The study used a cross-sectional design approach, with the research framework tested on a sample of 203 cases of employees mostly at skilled, professional and management levels in Gauteng Province. Data was analysed through correlation, regression and moderation analysis.

Findings

The results indicated that EO, MO and OE account for BP. Furthermore, IFC significantly moderates only the relationship between MO and BP (financial) and OE and BP (non-financial). While the relationship between EO and BP is not significantly moderated.

Practical implications

The study highlights that IFC is not yet embedded in organisational practice and culture. Scaling interventions to promote IFC as a performance enabler, particularly in conjunction with the entrepreneurial, market-oriented and OE activities, is essential in the South African corporate entrepreneurial environment.

Originality/value

Although EO, MO and OE are widely recognised as performance enablers, very little is known about the potential moderating role of IFC towards these identified complementary strategic capabilities within the South African corporate context. The empirical research strengthens awareness about the need and criticality of IFC in improving organisational performance in emerging economies.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 15 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 27 January 2023

Bhairab Chandra Patra and Usha Lenka

The purpose of this article is to (1) map the most important topics in the domain of sustainable business practices for entrepreneurial firms in emerging countries, (2) identify…

Abstract

Purpose

The purpose of this article is to (1) map the most important topics in the domain of sustainable business practices for entrepreneurial firms in emerging countries, (2) identify important terms in the various dimensions of sustainability in business and (3) identify the important practices and prioritize the practices.

Design/methodology/approach

This study has adopted a unique methodology that combines state-of-art scientometric analysis with the fuzzy nominal group technique (NGT) and fuzzy decision-making trial and evaluation laboratory (DEMATEL). Results obtained from the co-occurrence analysis in scientometrics were further mapped through NGT to obtain the list of the most important topics in the domain. The factors affecting sustainable business practices obtained through topic mapping were analyzed through fuzzy DEMATEL to obtain the cause-and-effect relation of variables.

Findings

The scale of firms, leadership, uncertainty, gender, country/location, education and tourism were found to be the factors affecting the sustainable business practices of entrepreneurial firms. The sustainable business practices for entrepreneurial firms were (1) innovation, (2) resilience, (3) policy, (4) business ethics and virtue ethics, (5) business model, (6) upcycling and value creation, (7) collaboration and (8) triple bottom line.

Practical implications

Policymakers in entrepreneurial firms, as well as other organizations, can implement the identified sustainable business practices to obtain optimum results and smooth functioning of the companies. The research framework obtained can be tested using exploratory methods.

Originality/value

Very few researchers have used the technique of scientometric analysis to identify the sustainable business practices of entrepreneurial firms, and to the best of the knowledge of the authors, no earlier researcher has attempted to use the technique of topic mapping, fuzzy NGT and fuzzy DEMATEL in combination.

Details

Benchmarking: An International Journal, vol. 31 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Content available
Article
Publication date: 21 November 2023

Josef Schindler, Andreas Kallmuenzer and Marco Valeri

The aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate…

Abstract

Purpose

The aim of this paper is to improve the understanding of strategies for how established companies can respond to disruptive innovation, handle increasing complexity, facilitate entrepreneurial culture and processes and successfully manage organizational ambidexterity.

Design/methodology/approach

A qualitative multiple-case study was conducted to explore successful practices of innovation ambidexterity (IA) and their organizational design, entrepreneurial culture and mindset, processes and leadership. Two internationally established firms that have launched and established IA programs provided deep insight, revealing their strategy and learning on the path toward effective IA.

Findings

The findings show that accepting and managing the inherent complexity increases within an ambidextrous organization strategy is a decisive factor in achieving effective IA. As a result, segmenting small organizational units and granting them extensive autonomy is proposed for managing the complexity of an organization while increasing its effectiveness. Furthermore, it is shown that this helps foster entrepreneurial culture, mindsets and processes as additional mediators for achieving effective IA. Coaching, empowerment and trust were identified as key factors of ambidextrous leadership values that encourage entrepreneurial behavior and decision-making.

Originality/value

To the best of the authors knowledge the first study connecting the research fields of complexity management, organizational ambidexterity theory and entrepreneurial culture while applying the fundamentals of systems theory to propose a practical management framework for successfully responding to disruptive innovation.

Abstract

Purpose

This study aims to explore the constructs of spirituality (SP) and entrepreneurial performance (EP) and their measurements to identify their connections. Attending to the needs of entrepreneurs to face the current global crisis, this research establishes a framework that integrates SP to enhance EP.

Design/methodology/approach

This study focuses on a comprehensive literature review and a comparison between constructs to come across with the proposal of a conceptual framework.

Findings

For SP, spiritual well-being was found as a good measure which, to the best of the authors’ knowledge, has never been used in entrepreneurship. EP has been typically measured by economic indicators, but recently, noneconomic benefits and effects on stakeholders have also been considered, so an integrated approach is proposed. The main contribution is a framework called holistic entrepreneurial inventory (HEI), which integrates the main elements of the constructs in a matrix showing their interconnection. It is accompanied by a scorecard for entrepreneurs to identify strengths and weaknesses in SP and EP.

Research limitations/implications

This is a theoretical research and proposal; further empirical research could help confirm the present conceptual findings.

Practical implications

To help entrepreneurs identify the areas where they would like to improve, understanding the connection between SP and EP, which are dynamic states in constant change.

Originality/value

EP has been mainly focused on exogenous causes. The HEI scorecard may give entrepreneurs a different perspective from the innermost part of their being.

Article
Publication date: 27 July 2023

Nebojša Janićijević and Ljiljana Kontić

This study aims to investigate whether the model containing five organisational determinants of corporate entrepreneurship developed by Kuratko, Hornsby and Covin is valid in…

Abstract

Purpose

This study aims to investigate whether the model containing five organisational determinants of corporate entrepreneurship developed by Kuratko, Hornsby and Covin is valid in Serbia.

Design/methodology/approach

The model was tested on a sample that included managers and employees from four banks in Serbia. The Corporate Entrepreneurship Assessment Instrument (CEAI) was used as the research instrument and factor analysis was used as the basic statistical method. This study examined whether the 48 items that compose the CEAI could be grouped in the context of the national culture of Serbia to provide the five determinants that were identified by Kuratko, Hornsby and Covin.

Findings

The results show that the factor analysis identified four determinants identical to those in the CEAI model. However, time availability failed the validity test in previous studies conducted in Serbia and other countries with collectivist cultures. It can be concluded that collectivism connected with high-power distance, uncertainty avoidance and the polychromatic concept of time caused the cultural limitation of time availability as a determinant of corporate entrepreneurship.

Originality/value

This study indicates that national culture could be a factor that determines the validity of organisational determinants of corporate entrepreneurship and that these factors cannot be taken for granted in cultures other than those in which the theory of corporate entrepreneurship arose. Finally, corporate entrepreneurship has been investigated in the banking industry, which is unusual because it is globally renowned for its conservatism.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 28 June 2023

Babak Zamani

This chapter aims to identify, analyse, classify and rank the sustainability indices and internationalisation challenges of the footwear industry in the emerging economy of Iran…

Abstract

This chapter aims to identify, analyse, classify and rank the sustainability indices and internationalisation challenges of the footwear industry in the emerging economy of Iran. This would provide deeper decision-making insights into Iranian footwear businesses. First, a list of sustainability indices and internationalisation challenges was obtained by reviewing the literature. Then, a combination of multi-criteria decision-making (MCDM) approaches was implemented. The initial sustainability indices and internationalisation challenges were screened using the fuzzy Delphi method, keeping a total of 14 criteria. The best–worst method (BWM) was employed to weigh and rank the criteria. The interpretive structural modelling (ISM) technique and cross-impact matrix applied in MICMAC were employed to visualise the conceptual model based on the levels and classification of the important criteria for the internationalisation of the Iranian footwear industry. The 14 criteria were demonstrated to be important in internationalisation. The most critical sustainability indices were reducing hazardous substances in leather tanning and labour education and training. In contrast, exchange rate instability in Iran’s economy and strict chemical regulations for clothing and footwear were found to be the most important internationalisation challenges. Hence, these criteria should be considered in the internationalisation strategies of the Iranian footwear industry. A combined multilayer sustainable decision-making approach was used to analyse the Iranian footwear industry’s essential sustainability indices and internationalisation challenges. Furthermore, implications and insights are offered to footwear businesses for future decision-making.

Details

Decision-Making in International Entrepreneurship: Unveiling Cognitive Implications Towards Entrepreneurial Internationalisation
Type: Book
ISBN: 978-1-80382-234-1

Keywords

Article
Publication date: 10 August 2023

Muhammad Mustafa Raziq

This study examines the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration (i.e. entrepreneurial initiative resource support, the subsidiary…

Abstract

Purpose

This study examines the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration (i.e. entrepreneurial initiative resource support, the subsidiary seeks and receives from the MNE). It proposes some underlying mechanisms as external embeddedness, and MNE organizational structures to explain the relationship between subsidiary autonomy and the MNE subsidiary initiative collaboration. The study draws on paradox theory arguing how at both the subsidiary and the parent MNE levels certain paradoxes are handled.

Design/methodology/approach

Survey data are collected in a time-lagged fashion from 429 foreign subsidiaries in New Zealand. Data are analyzed using structural equation modeling.

Findings

Results show that the relationship between subsidiary autonomy and the receipt of MNE resource support for initiatives is positive, and this is more likely the case where the subsidiary is managed under simple structures (i.e. subsidiary reports to corporate headquarters, regional headquarters or mandated units) rather than complex structures (i.e. a matrix or a network). Furthermore, an increase in subsidiary autonomy positively influences MNE initiative resource-seeking, and this is more likely the case where the subsidiary is less embedded externally.

Originality/value

The study is one of the first of studies that has applied paradox theory to MNE–subsidiary relationships regarding autonomy and MNE collaboration on initiatives. The study extends research on MNE–subsidiary collaboration on subsidiary initiatives as existing research is limited on this domain. The study contributes by showing how external embeddedness, and the complexity of organizational structures determine the relationship between subsidiary autonomy and MNE subsidiary initiative collaboration.

Details

Cross Cultural & Strategic Management, vol. 30 no. 4
Type: Research Article
ISSN: 2059-5794

Keywords

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