Established Business Networks Research Articles

Dynamics in rural entrepreneurship – the role of knowledge acquisition, entrepreneurial orientation, and emotional intelligence in network reliance and performance relationship

PurposeSocial network and being a part of an established business network helps in the acquisition of resources. The purpose of this study specifically looked at the mechanisms through which network reliance (NR) influences the entrepreneurial performance (PERF) among rural farmer entrepreneurs in China.Design/methodology/approachThe paper looks at the economic sociology perspective of social networks. A total of 450 rural farmer entrepreneurs were interviewed for the study. The study introduces emotional intelligence (EI) and entrepreneurial orientation (EO) into the relationship between NR, knowledge acquisition (KA) and entrepreneurial PERF.FindingsThe result shows that KA partially and positively mediates the relationship between NR and entrepreneurial PERF. EO is shown to moderate the relationship between KA and entrepreneurial PERF apart from its direct effect on entrepreneurial PERF. The EI of rural farmer entrepreneurs has a direct and significant effect on KA but does not moderate the relationship between NR and KA.Originality/valueThis study provides a new direction for extension education to rural farmer entrepreneurs. Knowledge building capacity programmes for rural farmer entrepreneurs should be an area of priority for extension education. Building the social capital and entrepreneurial capacities of rural farmer should be a new area of focus for policymakers. These measures will go a long to improving the capabilities of rural farmer entrepreneurs, which will, in turn, impact positively on their PERF.

Small scale entrepreneurship – understanding behaviors of aspiring entrepreneurs in a rural area

PurposeNetworking and being a part of an established business network supports the process of translating new ideas into marketable solutions and acquiring customers. The purpose of this paper is to investigate how aspiring entrepreneurs in a Danish rural area setting manage to get embedded into relevant business networks. Before the literature background on social capital and regional development, the authors use the embeddedness approach in explaining whether weak or strong ties are most beneficial to get the business started and how lacking strong ties can be compensated.Design/methodology/approachThis paper takes an economic sociology perspective on social capital and is empirically based on a case study. The sample consists of a group of young aspiring entrepreneurs, living in the rural area of Southern Jutland, who are all committed to an organization which supports regional start-ups.FindingsThe authors found that aspiring entrepreneurs have different needs depending on their development status and type of innovation. Founders, who are developing or have developed new product innovations, seem to have an increased need for “strong ties” with consultants and those with knowledge about building up a professional network. Founders, who are developing or have developed a significantly improved service, have strong ties with former fellow students and researchers at the university.Originality/valueThis study illustrates that aspiring entrepreneurs connected to a regional entrepreneurship center gained access to a wider relevant network. Depending on their level of embeddedness, they could build new strong relationships and exploit information stemming from new “weak ties” and as such harness more benefits. The study shows that less privileged start-ups can substitute strong ties, especially through the support of professional managers of startup-supporting organizations. Finally, a model explaining the impact of social capital on the entrepreneurial sphere of regional business networks and on its innovativeness is deduced.

INDIGENOUS ENTREPRENEURSHIP IN NORTHERN NSW, AUSTRALIA

A number of solutions have been suggested for overcoming the considerable and entrenched economic and social disadvantage indigenous Australians face, including the encouragement to gain employment in the mainstream economy and to become entrepreneurs. Governments of all persuasions have implemented policies to encourage indigenous entrepreneurship; however, most appear to have had little success. To support and promote indigenous entrepreneurship effectively, it is important to identify the factors that either promote or hinder entrepreneurial endeavors. This paper reports on a study that used a qualitative research approach guided by a social constructivist paradigm to examine the experiences of Indigenous entrepreneurs in Northern New South Wales, Australia. The study results indicated that participants were found to possess characteristics of confidence, strong self-determination and ambition, and a desire to achieve. The role and influence of spouses, extended family and other role models were important determinants of entrepreneurial success, as were access to financial capital and established business networks. Above average education levels, prior industry experience and the assistance of mentors were also found to positively influence success. Lacking access to financial capital was a major hindrance. Participants also found government assistance programs confusing, unwieldy and difficult to access. Other hindrances included the presence of racism and discrimination; and difficulties reconciling business needs with the requests and needs of family, culture and community.

Constructing Global Business Networks in China

This article explains the issue of business networking for foreign multinational enterprises (MNEs) operating in China from various perspectives (including cultural, political, economic, and marketing perspectives). The article seeks to provide a basic platform for comparing business network development with corruption to clearly differentiate between these two concepts. The article clarifies how foreign MNEs can effectively establish and maintain business networks to navigate their way through the complex institutions in China and local networks. The article suggests that developing a business network strategy could add value to activities of MNEs in China. Although not all established business networks will definitely lead to new opportunities or bring about greater competitive advantages, an ineffective business network strategy may actually reduce the ability of foreign MNEs to achieve performance outcomes in China. An analysis of the business network strategy would be invaluable to help foreign MNEs to develop business operations in China effectively.

Racial biases in recruitment by accounting firms: The case of international Chinese applicants in Australia

This paper documents the difficulties in finding accounting work faced by international Chinese accounting graduates in Australia in the two years after graduation. We argue that Chinese accounting graduates remain a marginalised group within today's Australian society. The interview results support this assertion, with even high-achieving Chinese graduates finding it difficult to obtain work with mainstream accounting firms and corporations. The main reasons appear to be their lack of Australian working experience, lack of knowledge of Australian culture, and lack of “Australian English”. Australian accounting firms, due to a revealed preference to hire white Australian graduates, appear to be missing out on a vast reservoir of Chinese talent. Chinese accounting graduates speak two or three languages and have established business networks in China or at the very least insider knowledge of how that country's business culture operates. Whilst their sub-cultural capital may be lower on average than white graduates on some conventional measures, it is higher in those areas of bilingual capability and cross-cultural knowledge which are becoming of increasing importance to Australian business.

Building Futures or Stealing Secrets?

Business incubator units are an effective support mechanism for new entrepreneurial firms in that they provide basic facilities, office space, administrative staff and expert managers during the volatile start-up and growth process. This enables entrepreneurs to reduce operating costs and focus their attention upon product development.There are also many intangible benefits to incubator placement such as enhanced firm credibility, access to established business networks and the opportunity to share the challenges of entrepreneurship with peers. From this study of such a unit in the Republic of Ireland however, it became apparent that as the firms grew and sought to enhance credibility and protect market share, disadvantages emerged regarding incubator placement. Firm proximity created tensions concerning privacy, the protection of intellectual property and competitive strategies. It was also evident that as the firms became more mature, the need to develop independent, secure internal systems could be impeded by the ready availability of support and advice from the incubator management team.

Comparative Business Networks in Eastern Europe

ABSTRACT This paper represents a comparative analysis of seventeen case studies from Central and Eastern Europe, selected from different published sources. The analysis of these business cases is used to highlight the typical strategic responses of firms to the unstable business environment in the region. It is argued in the paper that the transition to market economy is accompanied by multiple business risks to firms, and these risks have obstructed the adjustment, re-positioning, and restructuring of firms and their business networks. Our selection of cases demonstrates the strategic attempts by firms to transform their relationships not only with buyers and suppliers, but also with foreign partners, financial institutions, and governmental bodies. As a result of our comparative analysis, a new typology of business networks is developed, including transformed business networks, and newly established business networks.

East European Business Networks: A Review of Dependencies and Strategies and Their Influence on Company Success

This paper discusses the enterprise behaviour that was observed in the economies in Central and Eastern Europe during the transition period. It analyses the factors that determine the company performance particularly relating to government policies, industrial structures and managerial strategies for survival. As a result of our comparative analysis of published cases, a classification of the firms responces is proposed. It includes three main groups: a) ‘transformed business networks,’ b) ‘newly established business networks,’ and c) ‘firms unable to transform their business networks.’ In addition, the companies’ linkages are grouped into national and international networks following Stephen Young’s classification of international modes of market entry.