Patterns of Entry, Post-Entry Growth and Survival: A Comparison Between Domestic and Foreign Owned Firms

This study compares the patters of entry, survival and growth of domestic and foreign owned firms. We show that the post-entry behavior of foreign owned firms is quite different from that of their domestic counterparts. Among foreign entrants, we were able to distinguish between those which proceed by creating a new firm and those that acquire an already existing business. Our evidence reveals that the choice of the mode of entry in foreign markets exerts an impact upon the performance of firms that persist long after the moment of entry. As a consequence, our work clearly indicates that there is much to be gained in the understanding of the process of entry in foreign markets by studying the behavior of entrants over their first years in these markets.

On the Myth of a General National Culture. Making Visible Specific Cultural Characteristics of Learners in Different\ud Educational Contexts

The concept of a few values that can characteristically explain all units of culture (Schneider, 1968, pp.1-2) within any national context generally sounds promising. In order to take design-oriented decisions on culture-specific research questions, such characteristic values, particularly if already determined for many countries, would allow a massive reduction of effort. However, we were unsure if the contexts of academic and professional education allowed the adoption of such values without loosing the characteristic information, which are crucial for designing context sensitive e-Learning contents. In both educational scenarios we investigated the subcultures ‘faculty’, ‘university’, ‘enterprise’, and ‘nation’. In this paper, we exemplarily discuss our study’s results regarding one selected topic\ud from our questionnaire, i.e. the ‘role of the lecturer’. Actually, we found major differences between the investigated scenarios. Thus, we came to the conclusion\ud that in our context, adapting, e. g. Hofstede’s national values, would not lead to a learning design that takes the context-specific cultural differences into consideration

The affective extension of ‘Family’ in the context of changing elite business networks

Drawing on 49 oral-history interviews with Scottish family business owner-managers, six key-informant interviews, and secondary sources, this interdisciplinary study analyses the decline of kinship-based connections and the emergence of new kinds of elite networks around the 1980s. As the socioeconomic context changed rapidly during this time, cooperation built primarily around literal family ties could not survive unaltered. Instead of finding unity through bio-legal family connections, elite networks now came to redefine their ‘family businesses’ in terms of affectively loaded ‘family values’ such as loyalty, care, commitment, and even ‘love’. Consciously nurturing ‘as-if-family’ emotional and ethical connections arose as a psychologically effective way to bring together network members who did not necessarily share pre-existing connections of bio-legal kinship. The social-psychological processes involved in this extension of the ‘family’ can be understood using theories of the moral sentiments first developed in the Scottish Enlightenment. These theories suggest that, when the context is amenable, family-like emotional bonds can be extended via sympathy to those to whom one is not literally related. As a result of this ‘progress of sentiments’, one now earns his/her place in a Scottish family business, not by inheriting or marrying into it, but by performing family-like behaviours motivated by shared ethics and affects

Foreign subsidiaries performance and dynamics: a comparative analysis with domestic firms

In this study we conduct a dynamic and comparative analysis showing evolutional differences between foreign and domestic firms, a topic particularly important when foreign direct investment has become more important to economic growth. In this study, we discuss the Portuguese experience and the comparative evolution of foreign subsidiaries and domestic firms during the period 1985-2005. We look in particular at issues of performance, human capital and dynamics. The research is based on a large scale panel data at firm level from the database ‘Quadros de Pessoal’ for the period 1985-2005. Our study expands over previous analyses conducted about Portugal with qualitative empirical data at firm level. From our knowledge, this is the first study with such a long time pan dimension. More than allowing for a comparative and static analysis, with this time horizon it is possible to investigate how the differences evolved over time. We found dissimilar progress trends in performance, human capital and dynamics. We discuss the implications of the findings and open prospects for future research. To study the quality of the foreign investments and its potential impact on the competitiveness of the host economy is clearly an important issue, especially in an economy with strong a challenge for convergence, and about which we still know very little on these issues. These analyses and empirical evidences are important to evaluate the efforts put in action in the last decades to attract FDI, and to open new lines of discussion and new policy measures

Italian Firms in History: Size, Technology and Entrepreneurship

The economic performance of a country depends, among other things, on the strategies and structures of its firms. In the framework that is designed by institutions and policies and determined by technology and macroeconomic cycles, entrepreneurs decide how to allocate available resources in order to face off competitors and to hook up with demand cycles. This paper looks at the evolution of the Italian economy across the last 150 years from a business history perspective. Analyzing Italian firms over the long-term cycles of the global economy and with respect to the different paradigms of the three industrial revolutions, we identify some structural features that explain successes and failures of the Italian economy. In doing this we explicitly connect the micro level of the business enterprise to the macro one of the national business system and explain the comparatively good performance of the Italian economy from the end of the 19th century to the 1970s. Over the last three decades this performance has turned negative, highlighting the role played by the small average size of firms and the failure of institutions to provide incentives for growth.firm size, technological paradigms, innovation, entrepreneurship

An evolutionary complex systems decision-support tool for the management of operations

Purpose - The purpose of this is to add both to the development of complex systems thinking in the subject area of operations and production management and to the limited number of applications of computational models and simulations from the science of complex systems. The latter potentially offer helpful decision-support tools for operations and production managers. Design/methodology/approach - A mechanical engineering firm was used as a case study where a combined qualitative and quantitative methodological approach was employed to extract the required data from four senior managers. Company performance measures as well as firm technologies, practices and policies, and their relation and interaction with one another, were elicited. The data were subjected to an evolutionary complex systems (ECS) model resulting in a series of simulations. Findings - The findings highlighted the effects of the diversity in management decision making on the firm's evolutionary trajectory. The CEO appeared to have the most balanced view of the firm, closely followed by the marketing and research and development managers. The manufacturing manager's responses led to the most extreme evolutionary trajectory where the integrity of the entire firm came into question particularly when considering how employees were utilised. Research limitations/implications - By drawing directly from the opinions and views of managers, rather than from logical "if-then" rules and averaged mathematical representations of agents that characterise agent-based and other self-organisational models, this work builds on previous applications by capturing a micro-level description of diversity that has been problematical both in theory and application. Practical implications - This approach can be used as a decision-support tool for operations and other managers providing a forum with which to explore: the strengths, weaknesses and consequences of different decision-making capacities within the firm; the introduction of new manufacturing technologies, practices and policies; and the different evolutionary trajectories that a firm can take. Originality/value - With the inclusion of "micro-diversity", ECS modelling moves beyond the self-organisational models that populate the literature but has not as yet produced a great many practical simulation results. This work is a step in that direction

Effort, loyalty and idealism

The purpose of this pioneering study in the field of family business is to measure the degree of commitment to the family business among family members who do not actually work in the firm. After analyzing the characteristics of these people, we identify four very different groups. The existence of these four groups suggests that there is a "natural evolution" in relations between families and their businesses. Based on the behavior of the people in each of the four groups, we aim to identify the factors that can significantly affect the degree of commitment of family members.family business; non-active members; family commitment; unity;

A terminal assessment of stages theory : introducing a dynamic states approach to entrepreneurship

Stages of Growth models were the most frequent theoretical approach to understanding entrepreneurial business growth from 1962 to 2006; they built on the growth imperative and developmental models of that time. An analysis of the universe of such models (N=104) published in the management literature shows no consensus on basic constructs of the approach, nor is there any empirical confirmations of stages theory. However, by changing two propositions of the stages models, a new dynamic states approach is derived. The dynamic states approach has far greater explanatory power than its precursor, and is compatible with leading edge research in entrepreneurship