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Article
Publication date: 21 June 2022

Gordon Liu, Weixi Liu and Wai Wai Ko

The authors examine the influence of planning and execution capability (PEC) and operational improvement capability (OIC) on small-and-medium-sized firms’ (SMEs) attainment of…

Abstract

Purpose

The authors examine the influence of planning and execution capability (PEC) and operational improvement capability (OIC) on small-and-medium-sized firms’ (SMEs) attainment of different innovation outcomes under the conditions of exports and formal business networks, based on the capability-based perspective and organisational learning literature.

Design/methodology/approach

The authors analyse time-series data about UK SMEs, extracted from the 2015 and 2016 UK Longitudinal Small Business Surveys (LSBS).

Findings

The authors failed to find any direct effects of PEC and OIC on product innovation outcomes. However, the authors discovered that OIC supports the generation of process innovation outputs more strongly than PEC. Additionally, exports and formal business networks provide SMEs with different learning opportunities. The authors find limited support that exports amplify the beneficial effect of PEC on product innovation outcomes more than formal business networks. On the other hand, formal business networks strengthen the effect of PEC on process innovation outcomes more than exports. As a result, exports reduce the beneficial effect of OIC on product innovation outcomes more than formal business networks. However, formal business networks weaken the beneficial effect of OIC more than exports.

Originality/value

The authors distinguish between two types of organisational capabilities – PEC and OIC – and examine their impact on SMEs in achieving innovation outcomes. The authors also identify SMEs’ involvement in exports and formal business networks as the important boundary conditions for such effects. xD; xA; xD; xA;

Details

International Journal of Operations & Production Management, vol. 42 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 23 December 2021

Khurram Sharif, Nauman Farooqi, Norizan Kassim and Mohamed Zain

This study aims to focus on how informal value transfer networks, Hawala business in particular, used social exchanges in their business dealings. More specifically, the conducted…

Abstract

Purpose

This study aims to focus on how informal value transfer networks, Hawala business in particular, used social exchanges in their business dealings. More specifically, the conducted research looked into how social exchange theory was used in Hawala business relationship initiation and management.

Design/methodology/approach

Twenty-one depth interviews were conducted with Hawala Network members, and Hawala customers, in Qatar, Saudi Arabia and Pakistan. The collected qualitative data were analyzed through content analysis and NVivo 11 software.

Findings

The study outcome indicated that Social Exchange Theory was a principal relationship driver in Hawala Networks. Especially, trust had a pivotal role in evolvement and nurturing of Hawala Network business and social exchanges. Other relationship variables, namely, reciprocity, religious affiliation, reputation and information sharing had a significant part in relationship building as well. Results supported a prominent influence of time in carefully controlled and rigorously assessed transformation of Hawala relationships. This metamorphosis converted an exchange from short-term into a long-term orientation where limited amount transactions changed into large sum transactions and restricted information exchange moved to elaborate information sharing. In addition, findings revealed that monetary and non-monetary interactions between Hawala Network members took the form of a homogeneous club, with shared social, cultural, religious and ethnic values. In particular, financially constrained and illiterate social groups preferred Hawala services due to ease of servicing in the form of minimal bureaucracy, fast transfers and low service charges. These marginalized fractions of society had limited access to formal banking which made Hawala business their main (and in most cases only) source for sending and receiving financial remittances. Hawala Networks provided an effective alternative to formal banking for disadvantaged communities.

Originality/value

This study provided unique and useful insights into the nature of social exchanges within Hawala Networks. Especially, it provided clarification on how informal networked businesses used Social Exchange Theory to by-pass the need for legal protection and formal contracts. Furthermore, the study highlighted the role Hawala business played in providing essential banking services (e.g. transfer of money and micro-lending) to educationally and economically deprived individuals.

Details

Society and Business Review, vol. 17 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 12 April 2024

Amonrat Thoumrungroje and Nang Sarm Siri

Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities…

Abstract

Purpose

Drawing upon the resource-based view this study aims to examine the connections between formal and informal business relationships and resource-bridging and adaptive capabilities within the context of foreign subsidiaries of multinational enterprises (MNEs) operating in Thailand. Based on prior literature emphasizing business network ties as sources of competitive advantage in emerging markets, this study extends the discourse by investigating the moderating effects of technological turbulence, power distance and assertiveness.

Design/methodology/approach

This study uses a quantitative research approach, using data obtained from a self-administered survey conducted among 168 foreign subsidiaries spanning diverse industries in Thailand. The data were analyzed by using multiple-group structural equation modeling to test the hypothesized relationships.

Findings

Cultivating different types of business ties enables foreign subsidiaries to improve different types of capabilities. While interpersonal relationships (i.e. informal businessties) enable them to develop their abilities to combine various resources (i.e. resource-bridging capability), rigid contractual-based relationships (i.e. formal businessties) help them to be more adaptive (i.e. adaptive capability). These relationships are also contingent upon the levels of technological turbulence, host-country power distance and host-country assertiveness.

Originality/value

This research builds upon prior research on network ties and capability building by delineating the specific nature of capabilities. Contradicting to the previous findings, demonstrating a negative relationship between formal business ties and capabilities, this study found that each type of business tie enables foreign subsidiaries to enhance different types of capabilities under different circumstances. Moreover, this study adopts a lens of host-country national culture rather than home-country culture in investigating the moderating effects of power distance and assertiveness.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 9 August 2013

Simon Stephens

The importance of networks with respect to acquiring the resources needed for business creation is one of the main areas within entrepreneurship research. Although there is…

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Abstract

Purpose

The importance of networks with respect to acquiring the resources needed for business creation is one of the main areas within entrepreneurship research. Although there is significant literature on the use of social capital and human capital by immigrant entrepreneurs, there is an absence of studies which report the impact of business networks. Therefore, the purpose of this paper is to report the findings of a study examining the process of business network development by immigrant entrepreneurs.

Design/methodology/approach

For each of the 28 entrepreneurs, data were collected using a questionnaire and an interview. In completing the questionnaire, the entrepreneurs were asked to fill out a network audit, followed by a series of multiple‐choice questions. For the responses from the interviews, narrative structuring is used to create a coherent story of the entrepreneurs' experience of business networks.

Findings

This paper presents data characterizing the entrepreneurs, their experience in business networks, and enablers and disablers to the development of a business network.

Practical implications

The outcome is multiple perspectives on the purpose, process, benefits and challenges of developing a business network, and the impact of participation in a formal business network.

Originality/value

The findings which emerge offer insights into the development of business networks by immigrant entrepreneurs.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 7 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 15 December 2022

Tien Dung Luu

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Abstract

Purpose

This paper aims to examine the factors associated with a household business entrepreneur’s decisions to formalise the firm at a multidimensions level.

Design/methodology/approach

The data set is a panel of 2,336 SMEs and household businesses from Vietnamese SME surveys during the 2005–2015 period.

Findings

This study elucidates how firm-level resources, entrepreneur characteristics and costs of doing business influence an entrepreneur’s decision to enter, the speed and the degree of formality.

Originality/value

This study provides insight into the origins of an entrepreneur’s decisions to the multidimensions of business formality through the lenses of the resource-based view, entrepreneurship and institution theories.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 16 no. 3
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 28 September 2022

Haroon Muzaffar

This study aims to explore how the COVID-induced exogenous shock changed the prevalent occupational gender stereotypes in entrepreneurship in urban Turkey and presented an…

Abstract

Purpose

This study aims to explore how the COVID-induced exogenous shock changed the prevalent occupational gender stereotypes in entrepreneurship in urban Turkey and presented an opportunity to some Turkish women to start their own business. Furthermore, this study investigated how women entrepreneurs social networks helped them to clear the gendered hurdles that hindered their entrepreneurial endeavors in the times of COVID-19.

Design/methodology/approach

Highly personal topics like gender stereotypes are complex and nebulous, as is entrepreneurship as lived experience. Moreover, the COVID-induced crisis complicates the context further, which is why the addressal of questions about gendered stereotypes in the process of entrepreneurship, and the role of social networks in that process, warrants a qualitative research approach. Consequently, this study relied on in-depth semistructured interviews for investigating the studys research questions.

Findings

The findings suggest that research participants used the COVID-induced crisis conditions as an opportunity to beat the existing occupational gender stereotyping in entrepreneurship in the context of urban Turkey that opened a window of opportunity for the women participants to enter into entrepreneurship. In addition, social networks significantly helped the women entrepreneurs to acquire resources, and provided the leverage needed to clear the gendered hurdles that hindered the womens entrepreneurial endeavors.

Originality/value

To the best of the author’s knowledge, this study is among the first that generates insights into occupational gender stereotyping in entrepreneurship within the context of a developing country in the times of COVID-19 crisis. Hence, this study can help to understand the broader implications of the crisis like COVID-19 for gender-related beliefs and attitudes toward women entrepreneurship within the context of developing countries.

Details

Gender in Management: An International Journal , vol. 38 no. 1
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 13 June 2016

Bjorn Axelsson and Håkan Håkansson

In this paper, the authors will argue that owners as one type among many other types of actors is essential to bring into the picture when analyzing developments in industrial and…

Abstract

Purpose

In this paper, the authors will argue that owners as one type among many other types of actors is essential to bring into the picture when analyzing developments in industrial and other kinds of business networks. The direct relationship between owners and the business unit, the firm, is one type of relationship. But owners, as well as the firm as such, also possess several indirect relationships that could be highly relevant in many business network situations. The purpose of this paper is to investigate both direct and indirect relationships when analyzing the role of owners.

Design/methodology/approach

The empirical base is coming from an earlier Swedish investigation of the development of a steel company in the course of 75 years. In this study the authors mapped ownership and the role owners had in financial and other terms. The authors also made a detailed investigation of the development of the company in terms of important customers and suppliers, i.e. its business network. In total it means that the empirical data give us a quite multidimensional picture of the role and importance of ownership over a substantial time period.

Findings

The owners were for this company not at all important as financers. The monetary flow went, during the whole period, from the company to the owners. The owners, however, played a far more important role in an indirect way, affecting the way the company designed single business relationships as well as the combined network of those relationships. The owners were more important as network designers than as financial contributors. The analysis focusses on two topics: the ways in which owners contributed to the development of the firm during several phases of its development and similarities and differences between the various types of ownership (an entrepreneur – owner, a customer firm, a bank, a family industrial sphere).

Originality/value

The results indicate that the existence and importance of indirect relationships is of vital importance when analyzing the importance of owners in business networks. These indirect relationships are usually not analyzed in contemporary research about ownership. This an interesting and important topic and the authors hope that this study will be followed by many more. The addressed topic is especially relevant for the policy implications.

Details

IMP Journal, vol. 10 no. 2
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 15 May 2007

Rod Farr‐Wharton and Yvonne Brunetto

This paper uses a social capital theoretical framework to examine how the relational dimension of business networks affects the networking activities of female entrepreneurs. In…

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Abstract

Purpose

This paper uses a social capital theoretical framework to examine how the relational dimension of business networks affects the networking activities of female entrepreneurs. In particular, the study examines the role of trust on women's networking behaviour and the part played by government business development officers in supporting women entrepreneur's opportunity recognition behaviour.

Design/methodology/approach

The research used mixed methods to gather and analyse data. A survey instrument was used to gather quantitative data and qualitative data was gathered from interviews and written responses to open‐ended questions included in the survey.

Findings

The quantitative findings suggest firstly that approximately 20 per cent of the reason why women entrepreneurs belong to formal business networks is to search for business opportunities; however, their experience of trusting significantly affects their perception of the potential benefits of networking activities. Moreover, government development officers appear not to positively affect women entrepreneur's trusting behaviour.

Research limitations/implications

The sampling process could have caused bias in the data collection and therefore the generalisability of the findings may be compromised. This is because the sample came from a state with the most start‐ups and therefore it is likely that these women are more entrepreneurial than normal. In addition, there may be bias in the type of women entrepreneur likely to have responded to the survey. It seems likely that the women entrepreneurs that would respond to this questionnaire are apt to be more entrepreneurial in their behaviour of recognising new opportunities, thereby biasing the sample used. Finally, another limitation of this study is common methods bias in relation to the data collected using self‐report questionnaire.

Practical implications

The findings have implications for government because these findings suggest that they have wrongly assumed that entrepreneurs will behave in “politically constructed business network” the same way as they behave in social networks where trust levels develop over time. This may be the reason why trust was such an important variable in affecting these women entrepreneurs' networking behaviour. The findings suggest that if women entrepreneurs are to be supported to grow, the government should focus its scarce resources on building trust within these formal business networks, so that women can build the relational trust context needed to share information likely to lead to good business opportunities.

Originality/value

The paper provides information on the role of trust on women's networking behaviour.

Details

Women in Management Review, vol. 22 no. 3
Type: Research Article
ISSN: 0964-9425

Keywords

Article
Publication date: 12 August 2021

Meredith Woodwark, Alison Wood and Karin Schnarr

Building on research about entrepreneurship and social capital, the purpose of this paper is to explore how women founders of technology-based ventures in Canada access and use…

Abstract

Purpose

Building on research about entrepreneurship and social capital, the purpose of this paper is to explore how women founders of technology-based ventures in Canada access and use formal external entrepreneurial networks to build their companies.

Design/methodology/approach

The study draws on 25 semi-structured interviews with women founders of technology firms and leaders of formal networks.

Findings

The authors demonstrate the positive impact of women only networks (WON) for founders including increasing entrepreneurial diversity, access to financing, and founder credibility and sponsorship. The authors show how women founders use mixed gender and WON to build their businesses and conclude that membership in WON can be a vital step.

Research limitations/implications

The sample size is small and most participants reside in highly urban areas, which may limit generalizability. Findings may not generalize beyond Canada due to cultural and structural differences.

Practical implications

The research suggests that external WON should be encouraged as important resources for founder identity work which may enable positive change.

Social implications

This research can assist in designing initiatives that support women entrepreneurs and promote gender parity.

Originality/value

The authors draw on research in women's leadership development to explain how WONs for entrepreneurs help founders create overlapping strategic networks – a unique form of social capital – and serve as identity workspaces for the identity work women founders must complete. The authors argue that the identity work in WONs can be a mechanism by which gender structures are challenged and eventually changed.

Details

International Journal of Gender and Entrepreneurship, vol. 13 no. 4
Type: Research Article
ISSN: 1756-6266

Keywords

Article
Publication date: 29 April 2020

Jalleh Sharafizad and Kerry Brown

The purpose of this paper is to examine the role of personal and inter-firm networks and the elements that contribute to the formation and management of these networks for…

Abstract

Purpose

The purpose of this paper is to examine the role of personal and inter-firm networks and the elements that contribute to the formation and management of these networks for regional small businesses.

Design/methodology/approach

Semi-structured interviews were conducted with 20 small business owners located in regional areas.

Findings

The findings highlight key characteristics of regional small business owners’ networks. Findings indicated that participants relied strongly on their personal networks for business purposes. This study shows that while personal networks adapted and changed into informal inter-firm networks, weak-tie relations within inter-firm networks were unlikely to develop into close personal networks. Novel findings also include a preference for “regional interactions” and included regular collaboration with local business competitors. Although the participants used social media to manage their business through personal networks, results confirmed there was a lack of awareness of the benefits of inter-firm networks with businesses outside the local region.

Originality/value

While it is acknowledged small business owners use personal and inter-firm connections to maintain and grow their business, there is a lack of research examining both of these networks in the same study. This research addresses this gap and presents five propositions as a useful direction for future research. This paper adds to the evolution of existing knowledge by expanding understanding of the formation of business networks and conditions of business trust relations within a regional context.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

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