Social enterprises: a short note

The objective of this note is to address the following four questions about social enterprises: 1. Why do we need social enterprises? 2. What differentiates social enterprises from economic enterprises? 3. How to accelerate the development of social enterprises worldwide? 4. What are the potential areas for research on social enterprises

Formative versus reflective measurement models: Two applications of formative measurement

This paper presents a framework that helps researchers to design and validate both formative and reflective measurement models. The framework draws from the existing literature and includes both theoretical and empirical considerations. Two important examples, one from international business and one from marketing, illustrate the use of the framework. Both examples concern constructs that are fundamental to theory-building in these disciplines, and constructs that most scholars measure reflectively. In contrast, applying the framework suggests that a formative measurement model may be more appropriate. These results reinforce the need for all researchers to justify, both theoretically and empirically, their choice of measurement model. Use of an incorrect measurement model undermines the content validity of constructs, misrepresents the structural relationships between them, and ultimately lowers the usefulness of management theories for business researchers and practitioners. The main contribution of this paper is to question the unthinking assumption of reflective measurement seen in much of the business literature

International Business as disciplinary tautology: an ontological perspective

The identity, legitimacy, and sustainability of international business (IB) as a research field are at stake. IB is being overtaken by the evolution of industries and technology, and critical voices challenge its distinctiveness and value. We identify IB’s ambiguous conceptual space, articulate the roots of the problem, and suggest a perspective for re-legitimizing the discipline. Specifically, we contend that redrawing legitimate knowledge boundaries for IB requires an ontological shift. In this respect, we promote a focus on the processual constitution of international entities across time and a reconceptualization of IB as the amalgamation of local and international forces. The perspective we advocate aims to counterbalance the disciplinary tautology suffered by current IB conceptualizations and to open up the discussion on boundary identification in the field

Performance-based vs socially supportive culture:a cross-national study of descriptive norms and entrepreneurship

This paper is a cross-national study testing a framework relating cultural descriptive norms to entrepreneurship in a sample of 40 nations. Based on data from the Global Leadership and Organizational Behavior Effectiveness project, we identify two higher-order dimensions of culture – socially supportive culture (SSC) and performance-based culture (PBC) – and relate them to entrepreneurship rates and associated supply-side and demand-side variables available from the Global Entrepreneurship Monitor. Findings provide strong support for a social capital/SSC and supply-side variable explanation of entrepreneurship rate. PBC predicts demand-side variables, such as opportunity existence and the quality of formal institutions to support entrepreneurship

Developing an empirical study of MNE subsidiaries' corporate political activities: Relationships with subsidiary characteristics, environment and performance

The activities of multinational enterprises (MNEs) are central to international business (IB) research and IB literature is replete with conceptual and empirical works on understanding how MNEs influence and react to their commercial environments. However relatively little attention has been given to understanding how MNEs integrate their political activities with their market strategies, through corporate political activity (CPA). Based on the theoretical foundations of (i) the behavioural theory of the firm, (ii) transaction cost theory, and (iii) institutional theory, this paper proposes a model that demonstrates the effect of MNE subsidiary characteristics and the subsidiary’s environment on CPA within its host-country. Thus this paper provides a systematic attempt at integration of CPA with MNE strategy and examination of its effectiveness. Contributions include (i) an empirically testable model that (1) captures the relative impact of subsidiary and environmental factors on I-CPA and that (2) measures the effect of CPA on subsidiary performance