Entrepreneurial Firm Performance Research Articles

Green entrepreneurial leadership, and performance of entrepreneurial firms: does green product innovation mediates?

Green entrepreneurial leadership, and performance of entrepreneurial firms: does green product innovation mediates?

High-performance work practices and entrepreneurial firm performance: the moderating role of firm size and industry type

PurposeThis paper examines the moderating role of firm size (FS) and industry type in the relationship between high-performance work practices (HPWPs) and entrepreneurial firm performance.Design/methodology/approachA descriptive research design involving a five-year dataset from firms in the retail and services industries of Nigeria was used in the analyses.FindingsThe use of HPWPs is widespread among entrepreneurial firms, with ability- and motivation-enhancing practices being dominant. Country context influences the types of HPWPs implemented by entrepreneurial firms. FS and industry type do not have significant moderating effects on the relationship between HPWPs and the performance of entrepreneurial firms. The positive effect of HPWPs on performance is consistent with findings made in prior studies.Research limitations/implicationsFS plays a neutral role in the relationship between HPWPs and entrepreneurial firm performance. Within the broader retail and services industries, this relationship is weaker in capital-intensive firms compared to less capital-intensive ones. The restricted focus on only retail and service industries may limit the universal applicability of the findings.Practical implicationsFindings indicate that the efficacy of HPWPs is neither influenced by FS nor industry type. Entrepreneurial firms with higher capital intensity benefit relatively more from the use of HPWPs.Originality/valueUnlike other research efforts focusing on a single moderating influence, this study combines two important contextual factors, FS and industry type, to provide a better understanding of HPWPs. The study spotlights the effects of country context in the implementation of HPWPs in a way that prior studies have not done.

Board Gender Diversity, CEO Turnover, and Firm Performance in Entrepreneurial Firms

Board Gender Diversity, CEO Turnover, and Firm Performance in Entrepreneurial Firms

Social Capital and Entrepreneurial Performance of SMEs: The Mediating Role of Access to Entrepreneurial Resources

Abstract This study is conducted to explain entrepreneurial support resources of firms based on social network theory in developing countries, the case of Vietnam. Partial Least Squares Structural Modeling (PLS-SEM) was conducted with a sample size of 220 entrepreneurs in SMEs. The results supported the positive link between formal and informal networks and entrepreneurial firm performance. Second, the study explored the partial mediating role of access to entrepreneurial resources between formal networks, informal networks, and entrepreneurial firm performance. In addition, the results also provide practical value to entrepreneurs in actively building relationship networking in the entrepreneurship ecosystem. Finally, the study proposed some implications for entrepreneurs, limitations, and further research.

Mediating role of green innovation and moderating role of resource acquisition with firm age between green entrepreneurial orientation and performance of entrepreneurial firms

Mediating role of green innovation and moderating role of resource acquisition with firm age between green entrepreneurial orientation and performance of entrepreneurial firms

Understanding social media presence and financial success in digital competition

PurposeThis study applies traditional strategic management concepts to firms operating in digital environments. Specifically, this study examines the role of social media (SM) in the financial performance of entrepreneurial firms and how perceived uniqueness and human capital impact this relationship.Design/methodology/approachThis study analyzes a sample of 797 independent music artists using ordinary least squares regression.FindingsThis study finds that SM presence is positively related to SM success and, in turn, that SM success is positively related to financial success. Further, this study finds that perceived uniqueness negatively moderates the SM presence to SM success relationship and that human capital positively moderates the SM success to financial success relationship.Originality/valueFirms competing in digital environments should limit their perceived uniqueness and increase their human capital in order to maximize the positive benefits of a SM presence.

Effects of family ownership and family management on the performance of entrepreneurial firms

Extending past research, this paper proposes that the quadratic inverse-U relationship between family ownership and the performance of entrepreneurial firms when moderated by the presence of family management and external blockholding. Specifically, it proposes that both factors exacerbate the decline in performance when the proportion of family ownership in entrepreneurial firms remains high. The proposed hypotheses are tested on ten years of panel data from a sample of European firms. Analysis of data supports the hypotheses. Implications for the theory and practice of entrepreneurial firms are discussed.

When Do You Enter? Entrepreneurial Firms’ Entry Timing and Product Performance in the Digital Platform Market

The digital platform market has evolved into a critical location for firms to engage in innovation and entrepreneurship. However, there is no clear answer to the question of when entrepreneurial firms should enter the digital platform market in order to gain a sustainable competitive advantage. A balanced panel and an individual fixed effect model were built using monthly product data from game developers on the Steam platform. Furthermore, in accordance with first-mover advantage theory, this study empirically investigated the impact of entry timing on product performance of entrepreneurial firms in the digital platform market, as well as the moderating effect of product updates. The results show that the impact of entrepreneurial firms’ entry timing on product performance in the digital platform market has a U-shaped relationship, which is moderated by product updates. These findings not only have implications for entrepreneurs looking to compete in the digital platform market, but also contribute to the sustainable development of the digital platform ecosystem.

Integration of outside-in and inside-out entrepreneurial marketing capabilities, marketing agility and resources for entrepreneurial firm performance

PurposeThe resource-based view (RBV) emphasises the importance of resources for firm performance. However, recent research argues that the focus on firm performance should also be based on inside-out (IO) and outside-in (OI) capabilities. Specifically, we study the importance of resources on product development (an IO) and market driving (an OI) entrepreneurial marketing capabilities on entrepreneurial firm performance in an emerging market. The study further investigates the moderating effects of marketing agility on the relationship between resources and capabilities.Design/methodology/approachThe study is based on survey data of a multi-industry sample of 102 entrepreneurial firms in Pakistan.FindingsThe results show that marketing agility moderates the relationship between resource-mix flexibility on product development and market driving capabilities, but it only positively moderates the relationship between resource-mix inimitability and product development capability. Marketing driving and product development capabilities play a role as parallel mediators between resources and firm performance.Originality/valueThe study lies at the intersection of marketing and entrepreneurship literature by (1) providing a nuanced understanding of marketing agility as a boundary spanning factor for IO and OI entrepreneurial marketing capabilities; (2) integrating the resource types and product development from IO and market-driving from OI capabilities perspectives; (3) identifying the effects of IO and OI on firm performance providing guidance for entrepreneurs seeking improved firm performance.

Open innovation pathway to firm performance: the role of dynamic marketing capability in Malaysian entrepreneurial firms

PurposeThis study investigates how firms build strong dynamic marketing capability (DMC) from open innovation (OI) to enhance the performance of entrepreneurial firms. Moreover, this study unfolds DMC's mediating and moderating mechanisms underlying inbound and outbound OI and performance relationships, respectively.Design/methodology/approachTo test the research model and hypotheses, this study drew a sample of 251 firms operating in Malaysia using the time-lagged survey method. Structural equation modelling was used in this study to investigate the model relationships.FindingsThe findings of this study reveal the positive interplay between inbound OI (knowledge acquisition) and DMC. The outbound OI (knowledge exploitation) in this study is found to mediate the relationship between inbound OI and firm performance. In addition, while the DMC has a mediating effect in the relationship between inbound OI and firm performance, such a capability reinforces the positive relationship between outbound OI and performance.Originality/valueThis study provides a noble insight into the complex interplay between OI and entrepreneurial firms' performance by developing and testing an integrated framework underpinned by a knowledge-based view and dynamic capability theory. The findings highlight the significance of taking an interdisciplinary and integrated approach to better understand the determinants of entrepreneurial firms' performance in an emerging country context.

The Influence Mechanism of Knowledge Heterogeneity of Venture Capital Syndication on Innovation Performance of Entrepreneurial Firms: Evidence from China

Venture capital syndication (VCS), an investment model, is gaining increasing attention. This paper uses a new perspective on knowledge transfer to explore the influence mechanism of knowledge heterogeneity in VCS on the innovation performance (IP) of entrepreneurial firms. We use firm-year panel data from the Shenzhen Stock Exchange for 2000–2017 and find that the knowledge heterogeneity of VCS includes, at least, management knowledge heterogeneity, investment knowledge heterogeneity, and technical knowledge heterogeneity. In particular, management knowledge heterogeneity and technical knowledge heterogeneity positively affect the IP of entrepreneurial firms. We further find that the intellectual capital (IC) of entrepreneurial firms mediates these positive relationships. Moreover, the equity concentration of VCS positively moderates the relationship between knowledge heterogeneity and IP and negatively moderates the relationship between knowledge heterogeneity and IC. This paper provides a new theoretical explanation of the relationship between VCS and IP of entrepreneurial firms from a knowledge transfer perspective and explores the impact paths of this relationship.

Does Venture Capital Reputation Contribute to Pre-IPO Performance of Entrepreneurial Firms in the Chinese Context?

This study investigates venture capital (VC) reputation impact on the pre-IPO performance of the entrepreneurial firms backed by three kinds of VCs. This study employs backward stepwise regression models following prior theoretical frameworks to examine the research question. Based on a database of the top 50 VC firms ranked during 2016 to 2020 and their portfolio firms. This study shows some contingent contribution to pre-IPO firm performance. Firstly, the reputation of the Chinese government-owned VCs is negatively associated with their portfolio firm performance. Still, there is a positive relationship between foreign and local private VCs. Secondly, entrepreneurial firm performance is significantly associated with industry policy and entrepreneur’s performance than VC reputation. This study has practical implications for entrepreneurs and limited partners regarding their corporation relationships with the Chinese VCs. JEL codes: G24, G34

Influence of Socio-emotional Wealth on Entrepreneurial Orientation in Family Firms: A Bibliometric Analysis and Systematic Review

This article explores the effects of socio-emotional wealth on the family firms’ entrepreneurial orientation. The family firms aspire to attain economic goals and maintain family control and influence over their firms. These conflicting goals may become detrimental to their entrepreneurial orientation and firm performance. Against the background of the heterogeneity of family firms, this article deliberates on the effects of socio-emotional wealth on entrepreneurial orientation. This article has explored the research trajectories and themes of socio-emotional wealth and entrepreneurial orientation research discourse by adopting the methods of bibliometric analysis and systematic review research protocol. This article reviews the findings of the research discourse on the relationship between socio-emotional wealth and entrepreneurial orientation. In particular, this article inquires whether family firms’ entrepreneurial orientation decreases because they are concerned about preserving their socio-emotional wealth and, if so, under what conditions. This article also makes practical recommendations for using the desire to meet non-economic goals judiciously. This article provides insights into how family firms can change their business strategies to synthesize the much-needed entrepreneurial orientation to preserve their socio-emotional wealth.

Entrepreneurial marketing and firm performance: scale development, validation, and empirical test

ABSTRACT This research introduces a new scale (ENMAR) for measuring entrepreneurial marketing (EM). The interrelationships between EM, market orientation (MO), entrepreneurial orientation (EO), firm performance, and the moderating effects of network structure (i.e. size, diversity, and strength), environmental variables (i.e. market turbulence, technological turbulence, competitive intensity, supplier power, and market growth), and firm size are empirically examined. Using structural equation modeling, data from 401 U.S. based firms representing a broad spectrum of industries and firm sizes are analyzed. Empirical findings demonstrate that even after controlling for MO and EO, EM has a positive and significant impact on firm performance, and that impact becomes even more pronounced under highly uncertain market conditions. EM partially mediates the well-established relationships between MO, EO, and firm performance. While EM robustly boosts firm performance, it is more frequently practiced by young firms and those in B2B markets, though it may be particularly beneficial for mid-sized firms.

Examining the relationship between strategic alliances and the performance of small entrepreneurial firms in telecommunications

An alliance is an effective strategy for knowledge-intensive businesses in competition. Yet, little is known about how strategic alliances work within small firms in the telecommunications industry, which plays an essential part in the COVID-19 pandemic infrastructure. The purpose of this article is to examine the impact of strategic alliance on firm performance among small entrepreneurial firms (SEFs) in the telecommunications industry. The study uses structural equation modeling to analyze primary data obtained from a sample of 74 small entrepreneurial firms in the telecommunications sector. We find that strategic alliances significantly and positively impact partners’ performance in terms of financial, operational, and organizational effectiveness among small entrepreneurial firms in the telecommunication sector. Drawing on the findings, we recommend small entrepreneurial firms pay particular attention to pre-alliance and post-alliance issues, including partner similarity, alliance experience, partner’ reputation, complementary skills, industry scope, commitment to improving trust and skill, and collaboration to boost performance. In addition, based on the results of this study, we discuss research implications for challenges of telecommunications SEFs in the time of the COVID-19 pandemic crisis.

Entrepreneurship Innovation and Finance

The study on entrepreneurship innovation and finance was to investigate the relationship that exists between entrepreneurship innovation and finance in Nigeria, and to understand the effect of finance on the failure of entrepreneurship innovation in Nigeria SMEs, the study tends to contribute to the literature on entrepreneurship innovation in Nigeria. The study explored data obtained from 119 enterprises and financial institutions in Nigeria. The population sample was selected through non-probability sampling method to obtain data from SMEs/MSMEs and financial institutions in Nigeria and accessed using google form. Pearson product correlation and standard multilinear regression from SPSS were used to explore the data to determine the relationship between the defined variables and to predict the impact of the independent variables on the dependent variables. The study findings indicated that there is a low positive significant relationship between finance and entrepreneurship innovation in Nigerian SMEs. Further analysis indicated that major entrepreneurship innovation deficiency in Nigeria SMEs could be attributed to education, which emphasizes the important role of adequate finance and education in entrepreneurship innovation, and performance of entrepreneurial firms in any economy. Furthermore; the study found that there is a positive significant relationship between education and entrepreneurship and negative non-significant relationship between education and innovation in Nigeria. The negative non-significant relationship between education and innovation is an implication of non-productive education, that needs to be addressed to offset the defect/deficit and position Nigeria on the path of general economic growth. The data further showed that finance and long-term credit have the highest impact on entrepreneurship performance in Nigeria. The conclusion of the study will help ease the majority of the challenges often encountered by entrepreneurial firms in Nigeria, mostly at the start-up stage of the enterprises that often lead to failures and inability to compete with other global enterprises.

Understanding the impact of family-to-work conflict and enrichment on the performance of entrepreneurial firms: A conservation of resources perspective

Entrepreneurs are critical human resources that have a significant impact on the performance of entrepreneurial firms. Yet, the nature of many entrepreneurial resources means that they are in demand by both their work (firms) and their families. Little is known about the impact that such dual demands might have on an entrepreneur’s ability to manage their own resources for their firm’s performance. Drawing upon conservation of resources (COR) theory and family-work literature, this paper develops a model to examine how family-to-work conflict (FWC) and family-to-work enrichment (FWE) shape the performance of entrepreneurial firms, directly and indirectly, through the mediation of entrepreneurial commitments. The model also explores the potential role of entrepreneurs’ key personal resources as a unique type of human resource that utilizes entrepreneurs’ internal dispositions to moderate the relationship between FWC/FWE and entrepreneurial commitments (and, hence, business performance). Empirical results from a study of 261 entrepreneurial firms in China provide support for our conceptual model. The paper has important implications for both HRM and entrepreneurship research and practices.

Doing Good and Doing No Harm: The Differential Effects of Founders’ Regulatory Focus on CSR

Corporate social responsibility (CSR) represents a constellation of volitional choices that reflect the motivations and strategic goals of founders. We propose that the founders’ regulatory focus—promotion focus and prevention focus—will influence their entrepreneurial firms’ CSR profiles. We advance this perspective by locating founders and empirically testing that (1) promotion focus will be positively related to CSR strengths; (2) prevention focus will be negatively related to CSR concerns; and (3) these associations will be amplified when founders act on the relative power they possess. Moreover, we explore the interactions between founders’ regulatory focus and CSR and their effects on firm performance (sales and market). We test our ideas with a sample of 315 founders, resulting in 945 firm-year observations. Results indicate that the promotion focus of founders is manifested in their preferences for “doing good” and the prevention focus of founders is manifested in their preferences for “doing no harm.” We further found that CSR influences entrepreneurial firm performance in complex ways.

Female entrepreneurial orientation and firm performance: with special reference to Sri Lanka

Female entrepreneurial orientation and firm performance: with special reference to Sri Lanka

The impact of organisational knowledge management on competitive performance of entrepreneurial firms

The impact of organisational knowledge management on competitive performance of entrepreneurial firms