Enriching strategic variety in new ventures through external knowledge

To build profitable market positions, new ventures have to address multiple challenges on several fronts. These ventures can compete by being simple (focused) or applying varied ways to compete. The likelihood of these ventures remaining competitive depends on their ability to build novelty into their products and operations, an activity that requires infusing knowledge into their operations. Most ventures, however, have limited knowledge bases and the reach (scope) of their external connections is limited, a factor that prompts them to tap into different external sources in their local areas. This article reports an empirical study of 140 new ventures located in seven regional clusters in Spain. The results show that new ventures can enrich the variety of their strategic repertoire by accessing diverse sources of external knowledge and being exposed to external novel knowledge, while absorptive capacity moderates this relationship. The degree of social development of these clusters also has a positive impact on the strategic variety of new ventures, exhibiting an inverted U-shape curve

An adaptive hierarchical domain decomposition method for parallel contact dynamics simulations of granular materials

A fully parallel version of the contact dynamics (CD) method is presented in this paper. For large enough systems, 100% efficiency has been demonstrated for up to 256 processors using a hierarchical domain decomposition with dynamic load balancing. The iterative scheme to calculate the contact forces is left domain-wise sequential, with data exchange after each iteration step, which ensures its stability. The number of additional iterations required for convergence by the partially parallel updates at the domain boundaries becomes negligible with increasing number of particles, which allows for an effective parallelization. Compared to the sequential implementation, we found no influence of the parallelization on simulation results.Comment: 19 pages, 15 figures, published in Journal of Computational Physics (2011

A missing operationalization: entrepreneurial competencies in multinational enterprise subsidiaries

We seek to provide a comprehensive operationalization of firm-specific variables that constitute multinational enterprise subsidiary entrepreneurial competencies. Towards this objective, we bring together notions from the fields of entrepreneurship and international business. Drawing on an empirical study of 260 subsidiaries located in the UK, we propose a comprehensive set of scales encompassing innovativeness, risk-taking, proactiveness, learning, intra-multinational networking, extra-multinational networking and autonomy; which capture distinct subsidiary entrepreneurial competencies at the subsidiary level. Research and managerial implications are discussed

Family involvement, employee engagement and employee performance in enterprising family firms

The study has been designed to analyze probable determinants of employee performance in family firms. A quantitative methodology was adopted. Data were collected from 113 employees from fifteen family businesses located in the Western Province in Sri Lanka. Correlation and ordinal logistic regression analysis were used to elaborate the relationships. Correlation analysis indicated that both family involvement and employee engagement correlate to employee performance. Family involvement in case of holding positions in functional and strategic levels by family members has shown no correlation to employee performance. Yet, having a family member as immediate boss/supervisor of an employee in the job has a strong correlation to employee performance. Regression analysis makes evident that almost all coefficients of the employee are negatively related to employee performance. Yet, all levels of employee engagement are significantly related to employee performance. It further shows that being the lower levels of employee engagement increases the likelihood of lower levels of employee performance. © 2017 Mendel University of Agriculture and Forestry Brno. All rights reserved

Strategic configurations and performance: a study in micro and small business retailers

Um conjunto expressivo de estudos advogam a interdependência e complementariedade entre variáveis ambientais, estruturais, estratégicas e pessoais do estrategista na formação da estratégia. São raros os levantamentos que associam essas variáveis com desempenho de empresas de pequeno porte. Conjugando variáveis nessas dimensões, a pesquisa aqui apresentada objetivou verificar quais configurações estratégicas compostas pelo processo de desenvolvimento da estratégia, conteúdo da estratégia, atitude empreendedora, modo administrativo e incerteza ambiental percebida associaram-se ao desempenho de empresas de pequeno porte do varejo de vestuário. Dados levantados em survey com 228 empresas e investigados pela técnica de análise de clusters, revelaram dois grupos/clusters de empresas com configurações e níveis de desempenho distintos. Os resultados indicam a relação de interdependência de variáveis na explanação da heterogeneidade do desempenho organizacional.A significant number of studies advocate the interdependence and complementarity between environmental, structural, strategic and personal variables in strategy formation. There are rare surveys that link these variables with small businesses performance. Combining several dimensions of these variables, this study aimed to verify which strategy configurations composed by the strategy development process, strategy content, entrepreneurial attitude, administrative mode and perceived environmental uncertainty were associated with the performance of small-sized clothing retail businesses. Data collected by survey with 228 companies and investigated by cluster analysis technique revealed two groups/clusters of companies with different configurations and performance levels. The results indicate the relationship of interdependence among variables in explaining the heterogeneity of organizational performance

Family firm internationalization: heritage assets and the impact of bifurcation bias

Research summary We develop a new conceptual framework to uncover governance-related determinants of family firms’ internationalization, building upon internalization theory. We assess how family firm governance features determine internationalization patterns on two key dimensions: location choice and operating mode. We focus on family governance characteristics that might drive sub-optimal internationalization patterns, and on removing such sub-optimality. We conclude that bifurcation bias, defined as the de facto differential treatment of family or heritage assets versus non-family assets, represents a critical family-firm specific barrier to achieving efficiency in international operations. In the short run, the key difference in international governance is between bifurcation-biased family MNEs and all other types of MNEs. In the longer run, inefficient, bifurcation biased decision making will make place for comparatively more efficient governance. Managerial summary Family firms are susceptible to bifurcation bias – a default preferential treatment of family members and resource bundles that hold positive emotional meaning to the family, i.e., heritage assets. Such preferential treatment contrasts with that afforded to professional, non-family managers and other resources, with which the founding family does not entertain a positive emotional connection. If left unremedied, bifurcation bias will lead to poor decisions in family-owned multinationals that undertake international expansion, in terms of the choices of which markets to enter and how to enter these. These types of dysfunctional decisions will lead to a decline in competitiveness as compared to non-family multinationals. Family firms should therefore identify and actively prevent bifurcation bias, by implementing the specific safeguarding strategies suggested in this study

Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands

Entrepreneurial Orientation (EO) is often mentioned as an antecedent of growth, competitive advantage and superior performance, and prior empirical research has often shown a positive relationship between EO and performance appears to exist. However, an important question that remains unanswered is what effect EO might have on firm performance during periods of economic crisis, and the severe environmental turbulence that accompany such crises. This research is a first investigation towards the effects of EO on the performance of small and medium sized firms during the current global economic crisis. In this study we use the multidimensional model of EO and test a series of hypotheses pertaining to its performance effects using survey data gathered from 164 Dutch SMEs. The present research shows that proactive firm behavior positively contributes to SME performance during the economic crisis. We further show that innovative SMEs do perform better in turbulent environments, but those innovative SMEs should minimize the level of risk and should take action to avoid projects that are too risky

Making Boards Effective: An Empirical Examination of Board Task Performance

Despite the increasing attention of management scholars to boards of directors, there is still scant evidence on the antecedents of board task performance. The lack of significant results seems to be due to some theoretical and methodological choices followed by scholars, i.e. the almost exclusive reliance on agency theory and the use of demographic data. Following the call for dismantling the fortresses dominating past studies, this paper contributes to opening the \u2018black box\u2019 of boards of directors, developing a conceptual model that considers the impact of board members\u2019 diversity, commitment and critical debate on board task effectiveness in performing its service and control tasks. We collected primary data through a questionnaire survey, and we tested the model controlling for board, firm and industry characteristics. Our findings suggest that (i) the predictors we identified, and particularly the board members\u2019 commitment, are far more important than board demographics to predict board task performance; (ii) firm and industry contexts exert a significant influence on board task performance; (iii) predictors have a different impact on specific sets of tasks. Thus, our findings support the idea that several board characteristics and contingencies at both industry and firm level must be acknowledged in board design

Does pre-entry licensing undermine the performance of subsequent independent activities? Evidence from the global aerospace industry, 1944-2000

International audienceWe study how firms' use of in-licensing for their initial entry to a business domain can detract from the performance of their subsequent autonomous endeavors in the domain. We argue that in-licensing produces high levels of causal ambiguity about factors that drive the performance achieved with the licensed product. In turn, the experience that firms gather through pre-entry licensing is likely to generate superstitious learning and overconfidence that undermine the performance of licensees' subsequent independent operations. The biases will be particularly strong in the face of contextual dissimilarity. We find consistent evidence in a study of firms that entered the global aircraft industry between 1944 and 2000. The research helps advance the understanding of the benefits and costs of markets for technology

Measuring acute effects of subanesthetic ketamine on cerebrovascular hemodynamics in humans using TD-fNIRS

Quantifying neural activity in natural conditions (i.e. conditions comparable to the standard clinical patient experience) during the administration of psychedelics may further our scientific understanding of the effects and mechanisms of action. This data may facilitate the discovery of novel biomarkers enabling more personalized treatments and improved patient outcomes. In this single-blind, placebo-controlled study with a non-randomized design, we use time-domain functional near-infrared spectroscopy (TD-fNIRS) to measure acute brain dynamics after intramuscular subanesthetic ketamine (0.75 mg/kg) and placebo (saline) administration in healthy participants (n = 15, 8 females, 7 males, age 32.4 ± 7.5 years) in a clinical setting. We found that the ketamine administration caused an altered state of consciousness and changes in systemic physiology (e.g. increase in pulse rate and electrodermal activity). Furthermore, ketamine led to a brain-wide reduction in the fractional amplitude of low frequency fluctuations, and a decrease in the global brain connectivity of the prefrontal region. Lastly, we provide preliminary evidence that a combination of neural and physiological metrics may serve as predictors of subjective mystical experiences and reductions in depressive symptomatology. Overall, our study demonstrated the successful application of fNIRS neuroimaging to study the physiological effects of the psychoactive substance ketamine in humans, and can be regarded as an important step toward larger scale clinical fNIRS studies that can quantify the impact of psychedelics on the brain in standard clinical settings