Postmaterialism Influencing Total Entrepreneurial Activity across Nations

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates.Entrepreneurship;Comparative Analysis of Economies;Cultural Economics;Macro-economic Analyses of Economic Development;Self-employment

Entrepreneurial Activity, Self-Perception and Gender

Drawing on Bem's psychological theory of self-perception, this paper presents and tests a model that examines the impact of gender and entrepreneurial activity on entrepreneurial self-perception. Based on a sample of alumni of a large Midwestern U.S. university, regression techniques are used to identify those activities associated with self-perceptions of entrepreneurship, as well as direct and indirect effects of gender. Results support the model of both direct and indirect effects of gender. The paper provides insights into gender issues in entrepreneurship as well as the definition of entrepreneurship in general.entrepreneurship;gender;behavior;self-perception

Human Resource Management With Small Firms; Facts And Explanations

This study examines determinants of the formalization of HRM practices with small firms. We derive five hypotheses that identify possible determinants of the level of formalization, including firm size, family business, the availability of an HRM department or HRM manager, and the existence of a formal business plan. We test these hypotheses using data on more than 700 Dutch small firms. We find that, within this sample of small firms, larger firms apply more formalized HRM practices than smaller firms do. However, once we take certain contextual variables into account, the direct relation with firm size becomes substantially less. Indirect relations with firm size also exist: firm size is a determinant of the probability that an HRM department is present, which in turn is related to the formalization of all HRM scales. Finally, family businesses apply less formal HRM practices, as do businesses without a business plan.firm behavior;personnel management;labor relations;small and medium-sized enterprises

Knowledge Management in the SME and its Relationship to Strategy, Family Orientation and Organization Learning

In this study, we examine the prevalence of different KM practices and the organizational determinants of KM among SMEs by conducting a quantitative study of empirical data from nearly 500 Dutch SMEs. Our empirical results show that knowledge is managed in a people-based approach in SMEs. SMEs are most likely to acquire knowledge by staying in touch with professionals and experts outside the company and they incline to share knowledge and experience by talking to each other. Furthermore, KM is dependent on other organizational resources and processes. Organizational learning and competitive strategy with a formality approach are the positive determinants of KM while family orientation is a negative determinant of it. One of the challenges in the current study was to clearly distinguish, on an empirical basis, the previously defined concepts of knowledge management practices and organizational learning. Although in theory, they are distinct, the results of this study lead us to conclude that they may overlap in practice. In the conclusion, we recommend a learning-oriented knowledge management model for SMEs which combines aspects of the two literatures

Knowledge Management as a Strategic Tool to Foster Innovativeness of SMEs

This study examines the relationship between knowledge management (KM) (in terms of external acquisition and internal sharing) and innovation behavior. The concept of absorptive capacity and assumptions from the dynamic capabilities view underlie the proposed framework and hypotheses. The framework is empirically tested using a random sample of 649 Dutch small to medium sized enterprises (SMEs). Our empricial results indicate that external acquisition practices play a key role in fostering SMEs’ innovativeness while internal sharing practices do not appear to have a significant influence. External acquisition activity enhances a firm’s awareness of available knowledge opportunities. Firms which actively acquire external knowledge (regardless of the type of knowledge) may build a greater competitive dynamic capability to sense and seize business opportunities which in turn may lead to new or improved products or processes. We suggest that owners/entrepreneurs of SMEs and their firms will benefit in the long term if they strategically manage knowledge, especially using external acquisition practices

Postmaterialism Influencing Total Entrepreneurial Activity across Nations

The relative stability of differences in entrepreneurial activity across countries suggests that other than economic factors are at play. The objective of this paper is to explore how postmaterialism may explain these differences. A distinction is made between nascent entrepreneurship, new business formation and a combination of the two, referred to as total entrepreneurial activity, as defined within the Global Entrepreneurship Monitor (GEM). The model is also tested for the rate of established businesses. The measure for postmaterialism is based upon Inglehart’s four-item postmaterialism index. A set of economic, demographic and social factors is included to investigate the independent role postmaterialism plays in predicting entrepreneurial activity levels. In particular, per capita income is used to control for economic effects. Education rates at both secondary and tertiary levels are used as demographic variables. Finally, life satisfaction is included to control for social effects. Data from 27 countries (GEM, World Values Survey and other sources) are used to test the hypotheses. Findings confirm the significance of postmaterialism in predicting total entrepreneurial activity and more particularly, new business formation rates

Organization Context and Human Resource Management in the Small Firm

This paper examines the relationship between organization contextual variables and human resource management (HRM) practices in small firms. The proposed model is based on an integration of theoretical perspectives, including the resource-based approach, institutional theory, transaction cost economics (TCE), and concepts from strategic management. The model is explored empirically, with qualitative and quantitative analyses of data collected from a sample of sixteen small Dutch firms. Specific contextual variables examined include company size, the presence of a collective labor agreement, having a large firm associate, either as supplier, purchasing group or franchiser, and the company's strategic orientation toward growth (growth strategy). An important finding is the significance of having a large firm associate. Companies with a large firm associate are more likely to report having employer-based training programs. As predicted, company size is associated with more formal HRM practices, including greater regularity of performance appraisal and greater likelihood of employer-based training. A weak relationship is found between a more growth-oriented strategy and greater formality of these two HRM practices. Predictions based on collective labor agreements are not supported. The paper concludes that the findings warrant further research on the relationship between organization contextual variables and the formalization of HRM practices, although a clearer definition of the latter variable is needed in future research

Post-Materialism as a Cultural Factor Influencing Entrepreneurial Activity across Nations

The study of the determinants of entrepreneurship at the country level has been dominated by economic influences. The relative stability of differences in levels of entrepreneurship across coun-tries suggests that other forces such as certain institutional and/or cultural factors are at play. The objective of this paper is to explore how post-materialism explains differences in entrepreneurial activity across countries. Entrepreneurial activity is defined as the percent of a country?s popula-tion that is self-employed, using a broad definition that also includes CEOs of both unincorporated and legally incorporated establishments. The measure for post-materialism is based upon Ingle-hart?s four-item post-materialism index. Because of the known interactions between economic and cultural factors found in previous research, a set of economic and cultural factors is included to provide a clearer picture of the independent role post-materialism plays in prediction of self-employment levels. In particular, education, life satisfaction, church attendance and political (left or right) extremism are used as control variables in our analyses using data of 14 OECD countries over in recent period. Findings confirm the significance of post-materialism in predicting self-employment even when controlling for economic and cultural factors. However, strong covariation between post-materialism and other cultural factors makes it difficult to clearly discriminate be-tween the effects

Business accomplishments, gender and entrepreneurial self-image

Drawing on Bem’s psychological theory of self-perception, this paper presents and tests a model that examines the impact of business accomplishments and gender on entrepreneurial self-image and explores the definition of entrepreneurship according to Vesper’s Entrepreneurial Typology. Regression techniques are used to identify those business accomplishments that university alumni associate with self-perceptions of entrepreneurship. Experience as a small business person (founding, running, and/or owning a small business) most clearly predicts entrepreneurial self-image. Results also support predictions of both direct and indirect effects of gender as well as direct effects of education and business degree. Results of a separate expert panel study are used to rank business accomplishments according to degree of entrepreneurship. Results of both studies reveal stark contrasts in the implied definition of entrepreneurship between entrepreneurship experts (academic and practitioner alike) and the general business community (as represented by the alumni). This raises questions about the meaning of the term “entrepreneurship”, what the word “entrepreneur”, in particular, conveys to the general public, and the implications for practice and future research

Entrepreneurial Activity, Self-Perception and Gender

Drawing on Bem's psychological theory of self-perception, this paper presents and tests a model that examines the impact of gender and entrepreneurial activity on entrepreneurial self-perception. Based on a sample of alumni of a large Midwestern U.S. university, regression techniques are used to identify those activities associated with self-perceptions of entrepreneurship, as well as direct and indirect effects of gender. Results support the model of both direct and indirect effects of gender. The paper provides insights into gender issues in entrepreneurship as well as the definition of entrepreneurship in general