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The purpose of this study is to address why managers enter the excessive market. A comparison of the facts and perceptions of entrants relative to success in the market shows that many entrants are confident about the viability of their businesses and enter the market. Accordingly, the authors simulate market entry decisions to detect behavioral biases.

The authors adapted the entry decisions simulation method, which is supported by the theoretical foundations of signal detection theory (SDT) and signaling theory. The simulation model is implemented on the Anaconda platform and written in Python 3.

The results of this study suggest that overestimation relates to excess market entry. Also, the proportion of excess entry under difficult conditions is always higher than under easy conditions.

This research helps managers and firms think about their and their competitors' abilities and evaluate them before entering the market. Policymakers and practitioners can also design programs such as experiential learning to help entrants assess their skills.

So far, no research has investigated the role of overconfidence under different market conditions. Accordingly, this study contributes to the current market entry literature by disentangling the debate between absolute and relative confidence and by considering the role of task difficulty.

Online gaming has emerged as a popular activity providing a social outlet for millions. However, implications of online game networks for mental health remain disputed. Concepts of bridging social capital and bonding social capital may help characterize protective factors within social networks. This study aims to examine the associations between social capital derived from online versus in-person networks and mental health indicators among gamers.

Online gamers (n = 301) completed an online survey assessing their social networks (both in-person and through online gaming) and mental health indicators (depressive symptoms, anxiety, social isolation, perceived social support). Social network analysis was used to analyze bridging (network size, effective size, heterogeneity, weak ties) and bonding (closeness, frequent contact, confiding, connection quality) social capital. Separate linear regression models evaluated associations between bridging and bonding social capital for both online and in-person networks and depressive symptoms, anxiety, social support and social isolation.

In-person network characteristics showed the strongest associations with mental health outcomes. Greater average closeness and frequent confiding in the in-person network predicted lower isolation and fewer depressive symptoms. More diverse relationship types also correlated with lower depression. For online networks, closeness and confiding ties associated only with less isolation and greater support, not depressive symptoms, or anxiety.

While online gaming networks provide some degree of social support, in-person social capital exhibited stronger associations with mental health. This reinforces the importance of face-to-face relationships for emotional well-being. Findings suggest helping gamers cultivate close bonds offline. However, online connections still matter and should not be discounted.

The purpose of this paper is to explore the determinants of entrepreneurs’ subjective social status perception (SSP) on firm international behaviors based on the upper echelons theory and social class theory.

To test the hypotheses, the authors studied a large sample of 10,823 small- and medium-sized private Chinese enterprises from 2006 to 2014.

The results showed that entrepreneurs with higher status perception prefer international activity and firms have higher export intensity and intention. In addition, the social capital of entrepreneurs and institutional environment amplifies the positive relationship between SSP and international behavior.

This paper contributes to research on the upper echelon of management and extends our understanding of how managerial social characteristics influence international strategic decision-making. Besides, it also contributes to the emerging stream of social status research in international expansion studies and expand researchers’ limited understanding of the effects of social status in business settings.

The purpose of this paper is to identify the differences between Hungarian family-owned businesses (FOBs) and non-family-owned businesses (NFOBs) concerning the elements of SME competitiveness and financial performance.

The research covers the Hungarian data set of the Global Competitiveness Project (GCP, www.sme-gcp.org) of 738 (data collection between 2018 and 2020) non-listed SMEs, of which 328 were FOBs. The study uses the comprehensive, multidimensional competitiveness measurement of the GCP built on the resource-based view (RBV) and the configuration theory. Financial performance was captured with two composite indicators: short-term and long-term financial performance (LTFP). The comparative analysis between FOBs and NFOBs was conducted using binary logistic regression.

The results show that FOBs are more prone to focusing on local niche markets with higher longevity and LTFP than NFOBs. However, FOBs have lower innovation intensity and less organised administrative procedures. The most contradicting finding is that the FOBs’ higher LTFP is accompanied by significantly lower competitiveness than in the case of NFOBs.

This study goes beyond other GCP studies by including composite financial performance measures among the variables examined. The combination of performance-causing (resources and capabilities) and performance-representing (financial performance) variables provides a better understanding of the non-listed SMEs in terms of family ownership. The results help academia to enrich the RBV-competitiveness, the non-listed SME management and finance literature, and policymakers to design business development and support schemes. They also show future entrepreneurs the impact of family ownership on entrepreneurial success.

Different age groups display different shopping patterns in terms of how and where consumers buy products. During times of crisis, such behavioural differences become even more striking yet remain under-researched with respect to elderly consumers. This paper investigates the impact of age on retail-related behavioural changes and behavioural stability of elderly shoppers (in comparison to younger consumers) during a crisis.

The authors surveyed 643 Austrian consumers to assess the impact of perceived threat on behavioural change and the moderating effect of age groups. Based on findings from this survey, they subsequently conducted 51 semi-structured interviews to understand the causes of behavioural change and behavioural stability during a crisis.

Elderly shoppers display more stable shopping behaviour during a crisis compared to younger consumers, which is influenced by perceived threat related to the crisis. Such findings indicate that elderly shoppers reinforce their learnt and embedded shopping patterns. The causes of change and stability in behaviour include environmental and inter-personal factors.

Through the lens of social cognitive theory, protection motivation theory and dual process theory, this research contributes to an improved understanding of changes in shopping behaviour of elderly consumers, its antecedents and consequences during a time of crisis. The authors reveal reasons that lead to behavioural stability, hence the absence of change, in terms of shopping during a crisis. They further outline implications for retailers that might wish to better respond to shopping behaviours of the elderly.

This study investigates how firms’ awareness of sustainability affects the revision of their internationalization strategy. Adopting a resource-based view (RBV) approach, the authors argue that sustainable-oriented firms have a higher propensity to de-internationalize (i.e., to go back to their home country) when confronted with the need to relocate foreign manufacturing subsidiaries, as the shortening of value chains would allow the reduction of transportation emissions and enhanced corporate image as green-oriented entities. Furthermore, the authors explore the role exerted by a stringent regulatory setting in the home country on the likelihood of de-internationalization. The empirical test conducted on a sample of relocations performed across European nations in 2002–2014 reveals that multinational enterprises (MNEs) – regardless of their sustainability orientation – have a higher probability to de-internationalize when their home countries have strict institutional contexts in place.

This chapter analyzes the efficiency levels of a circular economy (CE) with an emphasis on transaction costs. It examines the governance aspect of CE activities in comparison to the predominant linear value creation. Extant CE research in business studies tends to be descriptive and lacks a theoretical foundation, particularly in understanding CE management. Transaction cost theory explains efficiency in economic organizing, lending itself to the study of arrangements that maximize resource efficiency at continued economic virtue. The conceptualization proposes that CE transaction costs are greater than those within the linear economy (LE), primarily due to the uncertainties about reciprocal dependencies, looping material complexities, exchanging novel information, and increased contracting efforts. Geographically bounded and institutionally homogeneous CE initiatives may curb these rising costs. By bringing efficiency concerns into CE analysis, the chapter demonstrates the applicability of transaction cost theory and highlights CE relevance to international business by pointing out spatial choice implications.

An in-depth analysis of how senior managers in a large multinational corporation interpret their social and environmental responsibilities revealed that, notwithstanding formal corporate interpretations, discrepancies persisted in their interpretation of what was expected of them and how to implement it. Two fault lines emerged: (1) an instrumental versus a normative interpretation of corporate societal responsibilities, and (2) a focus on ‘doing less/no harm’ versus ‘doing more good’. This chapter introduces a theoretical framework that combines these fault lines to form four quadrants that each represent a different set of challenges managers face as they commit to improving their organisation’s impact on society. Rather than adjudicate between them, a holistic interpretation of corporate social responsibility (CSR) takes all four types into account. But the four types of challenges differ considerably in nature and thus in the strategic approach that is necessary to deal with them. In this chapter, each quadrant is discussed in detail. What characterises the issues in this quadrant, what mindset, and what strategy are necessary to address them? The chapter concludes with the observation that the framework, and the taxonomy of types of CSR challenges that it brings to the fore, creates greater awareness of how industries are confronted with different sets of challenges and thus need different strategic approaches. A better understanding of these differences may lead to more support, in particular for those managers who work in industries that face a disproportionate share of one particular type of challenges, the ‘nasty trade-offs’.

This article focusses on the hybrid strategy, a simultaneous combination of cost leadership and differentiation strategy. The study aims to examine the impact of hybrid strategy on firm performance through its anticipated positive effects on process and product innovation. In addition, we study the moderating role of adaptive capacity in the direct relationships of hybrid strategy with process and product innovation.

Structural equation modelling was used to analyse 1,842 Spanish firms with fewer than 250 employees. We randomly selected small and medium-sized enterprises (SMEs) operating in Spain from the Spanish Central Business Directory (2021) database. The overall sample design was based on stratified sampling.

We found that hybrid strategy is positively related to firm performance and to process and product innovation. Additionally, in firms implementing hybrid strategies, process innovation fostered firm performance. Finally, adaptive capacity strengthened the relationships of hybrid strategy with process and product innovation. This sheds light on how and when hybrid strategy is most effective in fostering SME performance.

We highlight that SMEs need to establish strategies that use diverse resources and capabilities and not just generate competitive advantage using one strategy (cost leadership or differentiation strategy). This requires an agile and flexible systems and structures.

Our research provides novel results by proposing the adoption of hybrid strategies instead of pure strategies (cost leadership and differentiation strategy) as a way for SMEs to survive during crises. Unlike “stuck in the middle” strategies, our study demonstrates the importance of hybrid strategies in a comprehensive model that links them to innovation and firm performance, with adaptive capacity being a determining factor.

Crises and natural disasters represent significant challenges to business, straining financial and human resources. However, corporate philanthropy during these times can result in significant benefits to the reputation of firms, while assisting in crisis recovery. This research focuses on the 2016 earthquake in Kaikōura, New Zealand to examine consumer reactions to corporate philanthropy. Two between-subject experiments were used to test the proposed hypotheses. Our results suggest that consumers do not differ significantly in their perceptions of the reputation of a company when donations of money or employee time are made by the company to assist the Red Cross. However, if a company is not engaged in corporate philanthropy, its reputation is significantly lower than when it engages in corporate philanthropy. We also found that the reputational benefits of giving to corporate philanthropy are weakened when consumers are highly sceptical of underlying corporate motives. Finally, we found that companies who give, despite being adversely impacted by a natural disaster, are perceived more favourably in terms of reputation, when compared with firms that have not been hurt by the natural disaster. We discuss the implications of this research for both practitioners and researchers.