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COVID-19 has rendered many firms' business models, strategies and performance vulnerable, including entrepreneurial financials. Some managed to survive, while others drowned in the epidemic swamp. This study offers an exceptional model to fill the gap.

Employing a rigorous qualitative design, the study utilizes a novel framework that integrates institutional theory (IT) and corporate entrepreneurial strategy (CES). Semi-structured interviews were conducted, and thematic analysis identified key themes: external environment, institutional environment and organizational response, CES and performance and survival.

The study reveals the dual nature of the external and institutional environment, acting as both facilitators and barriers for entrepreneurial financial firms (EFFs). It highlights the robust CES exhibited by these firms during the pandemic, demonstrating their adept balancing and integration of different CES components in their organizational response. The EFFs employ a mix of financial and nonfinancial indicators for performance assessment, yielding varied outcomes based on contextual factors.

EFFs and stakeholders are guided to adapt their business models, balance institutional pressures, implement CES and evaluate performance. It advocates collaboration within the entrepreneurial finance ecosystem and leveraging opportunities emerging from the pandemic, including new market segments, technologies, innovations and regulatory changes.

This topic is underexplored in many emerging economies. Fresh perspectives and rigor frameworks are developed on how EFFs navigate and capitalize on the pandemic under uncertainties.

This article explores the connections between the entrepreneur's global mindset and entrepreneurial motivation in the quest for determining the underlying relationships among these constructs. The aim of the study resides in the advancement of various entrepreneurial profiles which imply specific configurations of the global mindset and motivational drivers, by also covering their correlations with the business outcomes.

Data were collected in 2022 from over 100 entrepreneurs operating in the Romanian SMEs sector, using a questionnaire-based survey.

The results posit that at least three statistically relevant clusters can be observed in the studied population, stemming from the particularities of the entrepreneurs' global mindset. The findings reveal that the levels of development of the entrepreneur's social capital, psychological capital and intellectual capital are linked to different entrepreneurial motivations and impact the company in specific manners.

The research offers useful cues to the entrepreneurs for identifying prospective partners for their local or cross-border operations.

The results foster a new topical framework for discussion on the motivational configurations of entrepreneurs and the global mindset.

This study aims to investigate the role of bank ownership (foreign versus domestic) and the type of service (Islamic versus conventional) on bank lending to large enterprises and small and medium enterprises (SMEs).

Based on previous literature, the study proposes that foreign banks lend more to large enterprises and less to SMEs than domestic banks do. It also proposes that Islamic banks lend more to SMEs than conventional banks do. It utilizes unique hand-collected data of Jordanian banks from 2007 to 2018 to carry out its investigation. It applies regression estimation methods and propensity score matching to test its hypotheses.

Consistent with prior empirical evidence, the findings show that foreign banks lend significantly less (more) to SMEs (large enterprises) than their domestic counterparts. However, the findings indicate that Islamic banks lend significantly less to SMEs than their conventional counterparts. Further analysis shows that Islamic banks operating in Jordan are ultimately owned by foreign investors hence their incentives to adopt full features of Islamic financial instruments are confounded by their incentives to utilize transaction lending technologies which in turn attenuates the expected positive impact of Islamic banking services on SMEs finance.

This research provides novel evidence on the impact of Islamic banks on SMEs finance as the results suggest that the success of Islamic finance in bridging the gap of SMEs finance is conditional on embracing its full features.

Equitable risk allocation is important for the effective management of inevitable risks in International Construction Joint Venture (ICJV) projects. Previous studies have documented risks facing ICJV projects. However, there is a dearth of studies on the risk allocation preferences that take into consideration the opinions of both the local and foreign partners. This study aims to fill this gap by ascertaining the risk allocation preferences of the partners of ICJV projects for effective risk management.

Through a survey, data on risk allocation preferences were collected from both local and foreign partners of ICJV projects using a comprehensive register of 74 risks.

Following analysis, six risks were allocated to the local partner, 11 were allocated to the foreign partner, 51 risks were shared, four were allocated to a third party and two were to be negotiated based on the specific circumstances of the project. Practically, the study’s findings will help ICJV partners in drafting their ICJV contracts to adequately allocate risks and reduce contract negotiation time considerably.

The findings from this study will help partners in drafting their joint venture contract agreement and also reduce the period for contract negotiation. Knowledge of the preferred risk allocation is important in allocating risks in the contract agreement to the relevant partner for effective management.

This study, to the best knowledge of the authors, is one of the early studies to ascertain the risk allocation preferences of ICJV project partners in the Ghanaian construction industry – a departure from previous studies which focused on the identification and evaluation of risks. This study is also different from previous studies by considering the allocation preferences of both partners of the ICJV. The collection of data from both partners of the ICJV helped to consider their perceptions on risk allocation and evaluation, essentially leading to cross-cultural and optimal risk allocation preferences.

The purpose of this paper is to examine the role of entrepreneurial passion, specifically venture obsession, in agentic relationships within entrepreneurial contexts. It aims to develop a new conceptualization of the role of the venture in these relationships and explore the negative impacts that can arise from the obsessive passion for the venture. The paper contributes to the literature by shedding light on the complexities of agency outside of large for-profit firms, unpacking components of self-interest in the agentic relationship and challenging the assumption that entrepreneurial passion is always beneficial for both the entrepreneur and the venture.

This paper employs theoretical framework development and conceptual mapping to explore the role of entrepreneurial passion, specifically venture obsession, in agentic relationships within entrepreneurial contexts. We conducted a comprehensive literature review and synthesis of existing research on agency theory, entrepreneurial passion and venture obsession. By integrating these insights, we developed a new conceptual framework that theorizes the negative impacts of venture obsession on agentic relationships and venture performance. This approach allows us to propose a nuanced model that highlights the complexities and potential maladaptive behaviors associated with obsessive passion in entrepreneurship.

Venture obsession can have detrimental outcomes, such as escalation of commitment and ignoring external feedback, due to the intense focus on protecting the venture at all costs.

The study highlights the impact of venture obsession on agentic relationships, emphasizing the balance between autonomy, competence and relatedness that entrepreneurs strive to maintain for their well-being. While previous research has explored the role of entrepreneurial passion and its effects on venture performance, this study extends the understanding by delving into the darker side of passion when it transforms into obsessive agency. By emphasizing the importance of maintaining a healthy balance in agentic relationships and considering the psychological well-being of entrepreneurs, this study adds nuance and depth to the existing knowledge on the subject.

Information transparency is an important factor in enhancing trust and promoting interfirm cooperation. By combining transaction cost theory and institutional theory, this study aims to examines whether host-country firms’ information transparency prompt multinational enterprises’ (MNEs) to choose the joint venture entry mode for outward foreign direct investment (OFDI).

Using Heckman two-stage estimation method, this study examines Chinese listed manufacturing firms for the period 2014–2019.

The findings indicate that the higher the information transparency of host-country firms, the higher the possibility of MNEs choosing the joint venture entry mode for OFDI. This study further finds that the positive relationship between host country firms’ information transparency and the possibility of choosing the joint venture entry mode is enhanced by institutional distance, but weakened by MNEs’ host-country experience.

How to choose the appropriate entry mode of OFDI in the internationalization strategy is an important issue for MNEs to consider. As the postpandemic world is characterized by increased global risks, decoupling of economies, disruption of global value chains and the retreat of globalization (Contractor and Cantwell, 2022), how to further strengthen cooperation, reduce the cost and risk of MNEs and truly realize common construction and sharing is one of the hot issues in both practice and research.

The purpose of this study is to explore the influence of venture capital participation on corporate innovation and to assess how internationalization strategies (including both the internationalization scope and speed) in mediating serve as intermediaries in the relationship between venture capital and corporate innovation.

Using hierarchical regression analysis, this research tests the hypothesized framework using survey data collected from 442 high-tech enterprises listed on the A-share markets in Shanghai and Shenzhen, China, spanning from 2010 to 2019.

The study reveals a non-linear (U-shaped) correlation between venture capital investment and innovation. This non-linear linkage is facilitated through the execution of enterprises’ strategies for international expansion. The primary finding suggests that venture capital participation positively influences the rapidity and extent of internationalization. Additionally, a U-shaped relationship is observed between corporate innovation and both the speed and scope of internationalization.

This document contributes insights into the micro-level mechanisms that explain the effects of venture capital and internationalization strategy on corporate innovation. The results offer multinational corporations practical guidance for executing their internationalization strategies effectively and fostering innovation.

This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends research on the distinct EM dimensions to the behavioral context by revealing how causation and effectuation principles shape entrepreneurs’ actions.

The study investigates EM behavior through 12 semi-structured interviews with 10 start-up founders and two founder associates in Germany. Use of established frameworks of the EM dimensions and causation/effectuation principles paves the way for an in-depth analysis. This methodology uncovers a distinct pattern of decision-making behaviors characterizing various activities within start-ups.

The findings show that causal logic prevails in start-ups’ EM, and effectual reasoning serves a complementary role. On the dimensional level, the findings reveal a predominant goal-driven focus on customer intensity and value-creation processes. Predictive logic guides opportunity focus, proactiveness and risk management, with nonpredictive behaviors providing adaptability. The principle of affordable loss is also evident in risk management. Finally, start-ups exhibit a blend of causal and effectual logic in innovativeness and resource-leveraging.

To the best of the authors’ knowledge, this study is the first to illuminate the interplay of behavioral logics in start-up firms’ EM by exploring the nuanced principles underpinning the decision-making processes of entrepreneurs. In doing so, it advances understanding of the marketing–entrepreneurship interface and enriches decision-making literature.

New ventures often encounter legitimation challenges due to their liability of newness and foreignness. This particularly applies to the legitimacy beyond the local entrepreneurial ecosystem (EE). The present study examines how new ventures’ local legitimacy influences legitimacy diffusion beyond the local EEs. It considers both the direct relationship between new venture local legitimacy and its diffusion beyond the EE and the moderating effects of legitimacy brokerage and network activities on this relationship.

A hierarchical multiple linear regression is employed to test a series of hypotheses using the data of 228 Finnish firms which was collected with an online survey.

Firms that garner active local legitimacy have a greater chance to diffuse that legitimacy beyond an existing ecosystem. Results also reveal that network activities and legitimacy brokerage enhance (positively moderate) the association between (passive and active) local legitimacy and its diffusion.

The present study contributes to and extends the literature at the intersection of new venture legitimacy and legitimacy diffusion beyond the existing EE – an aspect which has not been sufficiently studied.

Upon completion of the case study, student will be able to discuss valuation of new-age ventures and understand how it is different from the valuation of organisations with a longer history; analyse the considerations (quantitative and qualitative) while evaluating investments in new-age ventures; and develop a framework involving the various dimensions of investment readiness.

The fintech space in India has seen an upsurge of activities since 2016. The growth of Paytm, RazorPay and many such ventures and the drastic improvements in this ecosystem have been significant catalysts for this segment of new-age tech companies. Funding and valuations have seen a sharp increase, especially when businesses worldwide felt the after-effects of the pandemic, with India being home to a large number of unicorns, second only to the USA. Open Financial Technologies Ltd (OPEN TECH) is one such venture that claimed its spot as the 100th unicorn of India within a span of five years since inception. With a strong focus on disrupting the banking sector in India, this neo-bank aspires to be the equivalent of Stripe in India and eventually be a strong competitor in the international market.

Richard O’Neil is an active investor in the fintech space, based out of the UK, and he is currently looking to expand the market by considering investment options. In the process, Richard and his team have identified India as a viable and competitive market, as new venture support and funding are increasingly emphasized through policies such as Startup India, Make in India and many such more to sustain and propel its benefits. As the team was exploring ventures worth investing, Open Financial Technologies caught their attention. However, Richard, given his experience across fields and being a seasoned private equity investor, realised that valuing new-age companies is as much an art as it is a science. Multiple quantitative and qualitative aspects need to be considered while relevance of traditional valuation techniques to put a value on such entrepreneurial ventures is questioned. At this juncture, he finds it crucial to evaluate the investment readiness of OPEN TECH.

This case allows students to understand how valuation of new ventures is different from that of established companies and analyse the crucial factors worth considering while evaluating an investment proposal as a venture capitalist, which eventually helps shape the funding pitch of an entrepreneur in the space.

This case study can be useful for students undertaking graduate- and executive-level courses on business valuation and strategy and entrepreneurship, as well as entrepreneurial finance elective at the undergraduate level. One could use this case in courses on entrepreneurship and innovation, such as an introductory course on entrepreneurial finance and a course on venture capital and private equity. It also allows discussion on fintech and neobanking and the valuation of privately held companies.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.