Entrepreneurial Venture Performance Research Articles

Corruption, basic services and entrepreneurial venture performance: The case of informal production units in Cameroon

PurposeThis paper aims to examine the relationship between the payment of bribes, the access to electricity and the productivity of informal production units (IPUs).Design/methodology/approachThe data used for this study come from the second Survey on Employment and Informal Sector conducted in 2010 by the National Institute of Statistics of Cameroon and representative at the national level. The survey was conducted among 3,560 IPUs. Survey participants reported whether they had been personally affected by corruption in the twelve months preceding the survey. Relying on the data of this survey, the recursive trivariate probit model was used to study the correlation between corruption and access to electricity.FindingsThe results reveal that the payment of bribes positively influences IPU access to electricity, and consequently access to this infrastructure has a positive impact on company performance.Research limitations/implicationsA main limitation of this paper is the environment of study in which corruption appeared to be institutionalised. It would therefore be interesting to extend the results obtained by conducting research in other countries and also including other infrastructures such as telecommunications.Practical implicationsThe main contribution of this research is to highlight the effectiveness of the fight against corruption and its impact on the access of some basics resources that affect the performance of certain companies. Indeed, the fight against corruption would be easier if economic actors had access to certain resources and fundamental infrastructures for their activities. Thus, improving the supply of resources and infrastructures can be an important lever in the fight against corruption in Africa.Originality/valueThis research addresses a vulnerable sector vis-à-vis the pressure of the actors involved in the provision of a service essential to the activity of companies. It highlights the justification for accepting the use of corruption. Indeed, entrepreneurs are faced with a dilemma between moral standards on the one hand, and economic imperatives on the other. If corruption is a condition of access to electricity which, in turn, improves performance, it is easy to pay bribes to gain access to electricity.

Evaluating the Influence of Digital Technology on the Performance of Female-Owned Enterprises in Nigeria

The strategic contributions of digital technology in the operations and performance of entrepreneurial ventures are a profound phenomenon, involving continual adaptation to a constantly evolving business environment. This paper examines the influence of digital technology on female-owned enterprises based on customers satisfaction in Federal Capital Territory (FCT), Abuja, Nigeria. Survey research was employed to derive primary data through the use of structured closed-ended questionnaires from 113 selected female-owned enterprises registered with NECA's Network of Entrepreneurial Women (NNEW). Adopting digital orientation, digital capability and digital transformation as dimensions of the digital technology which is the independent variable, multiple regression was used to measure its impact on customer satisfaction as the dependent variable. Findings revealed that the awareness of digitalisation does not suffice to influence business performance, but adopting and adapting to new technology is crucial in creating value addition to meet and exceed customers’ expectations. Conclusively, this research establishes the requisite for female-owned enterprises to embrace and exploit the vast potential and significant role that digital technology plays in the enhancement of business performance, for improved strategic competitive advantage and economic development.

Performance implications of corporate venture capital investments for entrepreneurial ventures: the differing moderating effects of R&D intensity before and after IPO

PurposeOne increasingly popular financing option for entrepreneurial ventures is to attract corporate venture capital (CVC) investments. Prior research tends to take a CVC-centric perspective assessing the benefits and contingencies for incumbent firms or corporate investors to engage with entrepreneurial ventures. Few studies have taken the opposite perspective of investigating factors that entrepreneurial ventures need to take into account when engaging with CVC investments. As such, this study aims to investigate pre- and post-IPO entrepreneurial venture performance that partners with CVC providers or corporate investors, as well as to assess organizational and environmental contingencies.Design/methodology/approachThis study draws on a sample of 631 entrepreneurial ventures from the CSMAR database ranging from 2009 to 2019, along with CVC financing data from the CVSource database and financial data in entrepreneurial ventures’ annual reports from the Juchao Network. This study applies multiple linear regression modelling and fixed effect panel data analyses to test the proposed hypotheses.FindingsThe results show that CVC investment contributes to entrepreneurial ventures’ financial performance, both pre- and post-IPO. However, while research and development (R&D) intensity and geographic proximity strengthen the positive relationship between CVC investment and entrepreneurial ventures’ performance pre-IPO, R&D intensity has a negative moderating effect on the relationship between CVC investment and entrepreneurial ventures’ performance post-IPO.Practical implicationsFirst, in emerging economies, adopting a CVC financing strategy is an important strategic choice for entrepreneurial ventures that have a great demand for external capital, resources and technology support. Second, leveraging the relationship between external financing and internal R&D investment is essential for them to maintain their core competitiveness and sustainable growth. Moreover, entrepreneurial ventures should deal with the coopetitive relationship with incumbent companies and manage their dependency on other market participants in the external environment.Originality/valueThis study focuses on the performance implications for entrepreneurial ventures engaging with CVC investments pre- and post-IPO. First, this study broadens and expands prior research on the mechanism of the relationship between CVC and entrepreneurial ventures’ financial performance. Second, the research conducts a comparative study of the moderating effects of different timings. Third, this study applies learning theory to the field of CVC in emerging economies.

Exploring Resources and Capabilities factors among Entrepreneurial Ventures using Dematel Approach

Resources and capabilities remain one of the most important factors that influence firms, more especially entrepreneurial ventures, to improve their competitiveness and achieve competitive advantage. In this context, present paper explores how entrepreneurial ventures and small businesses can better identify and distinguish the cause-and-effect relationship amongst resource and capability factors. Resource and capability factors among entrepreneurial ventures were classified into three dimensions and fourteen criteria after a review of the literature. The study applied the Decision-Making Trial and Evaluation Laboratory (DEMATEL) model to identify and describe the cause-and-effect relationship amongst resource and capability factors. The findings reveal that in prioritizing the importance of criteria and cause-and-effect relationship among criteria under the three core dimensions, firm climate, managerial competence, market knowledge and technological capabilities and equipment were the most critical criteria. Furthermore, the result has shown that firm climate is the most significant criterion in the adjustment of resource and capability factors of entrepreneurial ventures. Therefore, promoting a supportive and conducive firm climate among entrepreneurial ventures can enhance other resources and capabilities factors which, in turn, will improve the overall performance of entrepreneurial ventures and small businesses.

Exploring Resources and Capabilities Factors Among Entrepreneurial Ventures Using DEMATEL Approach

Resources and capabilities remain one of the most important factors that influence firms, more especially entrepreneurial ventures, to improve their competitiveness and achieve competitive advantage. In this context, present paper explores how entrepreneurial ventures and small businesses can better identify and distinguish the cause-and-effect relationship amongst resource and capability factors. Resource and capability factors among entrepreneurial ventures were classified into three dimensions and fourteen criteria after a review of the literature. The study applied the Decision-Making Trial and Evaluation Laboratory (DEMATEL) model to identify and describe the cause-and-effect relationship amongst resource and capability factors. The findings reveal that in prioritizing the importance of criteria and cause-and-effect relationship among criteria under the three core dimensions, firm climate, managerial competence, market knowledge and technological capabilities and equipment were the most critical criteria. Furthermore, the result has shown that firm climate is the most significant criterion in the adjustment of resource and capability factors of entrepreneurial ventures. Therefore, promoting a supportive and conducive firm climate among entrepreneurial ventures can enhance other resources and capabilities factors which, in turn, will improve the overall performance of entrepreneurial ventures and small businesses.

The Performance of Entrepreneurial Ventures with Special Reference to Madurai City

The Performance of Entrepreneurial Ventures with Special Reference to Madurai City

Shall an Entrepreneur Choose Business Idea Source to Match Personal Background?

How do business idea sources, entrepreneurs' background, and institutional environment at the time of founding interplay to influence the performance of entrepreneurial ventures? Combining resource...

The Added-Value of Network Connections in Entrepreneurial Finance

Entrepreneurs are usually exhorted to attract the best networked investors. We provide further insights into this advice by estimating network effects in the performance of entrepreneurial ventures. We show dimensions that are critical in this estimation, such as the consideration for startups’ connections, common connections among investors, and the decreasing returns to network centrality, and estimate their relative importance. We estimate networks effects using an an original database of connections among startups, investors and individuals with relevant roles in California, collected from web-based sources, resulting in a network of nearly 1 million connections.

The performance of entrepreneurial ventures

Purpose– Despite the importance of marketing to the success of entrepreneurial ventures very few researchers have studied the links with new business performance. The purpose of this paper is to examine a number of marketing practices in relation to the performance of new firms. Furthermore, the study considers the moderating influence of market competitiveness on the marketing practice-performance relationship.Design/methodology/approach– Both postal and web surveys were utilized to collect responses from 128 entrepreneurs in the early stages of business creation. The data were subjected to exploratory and confirmatory factory analyses to establish the marketing practices in new ventures. These results were then subjected to hierarchical regression analysis to study the marketing-performance relationship. Further analysis was conducted to explore the moderation hypotheses.Findings– The results demonstrate that some practices generally associated with marketing – selective distribution, market segmentation and advertising – have limited impact on performance in new ventures. In contrast, other practices such as product/service innovation, market research and service quality and functionality – do help establish competitive advantage. The results suggest that marketing practices associated with “entrepreneurial behaviour” and not “hard” marketing techniques drive new venture success. The results also support the moderation hypotheses confirming that market conditions help explain the role of marketing in new venture success.Research limitations/implications– The paper offers a new theoretical framework to better understand the marketing-performance relationship in new ventures and offers suggestions as to the specific conditions for effective use of various marketing practices.Originality/value– This is one of the first attempts to explore the underlying mechanisms that support marketing practices in new ventures. It reveals the hidden dimensions of the marketing-performance relationship and thereby makes a contribution to both the marketing and entrepreneurship literatures.

"Boundary-Crossing Job Mobility, New Product Area Entry and Performance of Entrepreneurial Ventures"

How does career boundary-crossing affect an entrepreneur’s new venture? When entrepreneurs cross industry or functional boundaries to lead startups, they may lack specific experience needed for performance. Conversely, the diverse experiences they carry can enhance exploration and lead to the emergence of innovation in startups. We highlight important consequences of career boundary-crossing, using a multi-industry longitudinal sample of high-technology firms. We find that entrepreneurs who cross functional boundaries are more likely to lead their startups into new product areas. We also find that entrepreneurs’ industry boundary-crossing is associated with startup failure, but it also increases the probability of an IPO.

Book Review Symposium: Managing Network Resources, by Ranjay Gulati. New York: Oxford University Press, 2007.Network Resources: Toward a New Social Network Perspective, by LavieDovev, Technion-Israel Institute of Technology, Haifa, and The University of Texas at Austin

Academy of Management ReviewVol. 33, No. 2 Book ReviewsBook Review Symposium: Managing Network Resources, by Ranjay Gulati. New York: Oxford University Press, 2007.Ajay MehraAjay MehraBook Review EditorPublished Online:1 Apr 2008https://doi.org/10.5465/amr.2008.31193585AboutSectionsView articleView Full TextPDF/EPUB ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail View articleREFERENCES Dyer J. H. , Singh H. 1998. The relational view: Cooperative strategies and sources of interorganizational competitive advantage. Academy of Management Review, 23: 660–679.Abstract , Google Scholar Granovetter M. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91: 481–510. Google Scholar Gulati R. 1999. Network location and learning: The influence of network resources and firm capabilities on alliance formation. Strategic Management Journal, 20: 397–420. Google Scholar Kale P. , Singh H. , Perlmutter H. 2000. Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21: 217–237. Google Scholar Kogut B. 2000. The network as knowledge: Generative rules and the emergence of structure. Strategic Management Journal, 21: 405–425. Google Scholar Lavie D. 2006. The competitive advantage of interconnected firms: An extension of the resourceBased view. Academy of Management Review, 31: 638–658.Abstract , Google Scholar Lavie D. 2007. Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry. Strategic Management Journal, 28: 1187–1212. Google Scholar Lee G. K. 2007. The significance of network resources in the race to enter emerging product markets: The convergence of telephony communications and computer networking, 1989–2001. Strategic Management Journal, 28: 17–37. Google Scholar Portes A. 1998. Social capital: Its origins and applications in modern sociology. Annual Review of Sociology, 24: 1–24. Google Scholar Rothaermel F. T. 2001. Incumbent's advantage through exploiting complementary assets via interfirm cooperation. Strategic Management Journal, 22: 687–699. Google Scholar Saxton T. 1997. The effects of partner and relationship characteristics on alliance outcomes. Academy of Management Journal, 40: 443–461.Link , Google Scholar Stuart T. E. 2000. Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal, 21: 719–811. Google Scholar Stuart T. E. , Hoang H. , Hybels R. 1999. Interorganizational endorsements and the performance of entrepreneurial ventures. Administrative Science Quarterly, 44: 315–349. Google ScholarFiguresReferencesRelatedDetails Vol. 33, No. 2 Permissions Metrics in the past 12 months History Published online 1 April 2008 Published in print 1 April 2008 Information© Academy of Management ReviewKeywordsBOOKS -- ReviewsINTERORGANIZATIONAL networksNONFICTIONDownload PDF

Interorganizational Endorsements and the Performance of Entrepreneurial Ventures

This paper investigates how the interorganizational networks of young companies affect their ability to acquire the resources necessary for survival and growth. We propose that, faced with great uncertainty about the quality of young companies, third parties rely on the prominence of the affiliates of those companies to make judgments about their quality and that young companies “endorsed” by prominent exchange partners will perform better than otherwise comparable ventures that lack prominent associates. Results of an empirical examination of the rate of initial public offering (IPO) and the market capitalization at IPO of the members of a large sample of venture-capital-backed biotechnology firms show that privately held biotech firms with prominent strategic alliance partners and organizational equity investors go to IPO faster and earn greater valuations at IPO than firms that lack such connections. We also empirically demonstrate that much of the benefit of having prominent affiliates stems from the transfer of status that is an inherent byproduct of interorganizational associations.