Purchasing From Minority Small Businesses

This article employs a transaction costs framework to analyze the problems of Minority Business Enterprise (MBE) purchasing programs. The results from field surveys of small minority firms and corporate purchasing personnel indicate that program participants face differences in transaction costs and in their preferences of ways to overcome these costs. In the majority of situations, minority firms face higher transaction costs than do their corporate purchasing counterparts. The article offers recommendations for improving the performance of MBE purchasing programs, and the policy implications for these programs are discussed

The Value Orientations of Minority and Non-Minority Small Business Owners

This study examines value orientations of minority and non-minority small business owners and contrasts their perceived similarity with corporate customers. Six categories of organizational values, including the values of collectivism, duty, rationality, novelty, materialism, and power are examined. Analyses of a sample of 252 small business firms Indicate that minority owners differ from non-minority owners in their value orientations; and are significantly different from non-minority owners in the degree to which they perceive organizational value similarity with customers. However, the levels of perceived value similarity with corporate customers did not vary among the minority groups (i.e. blacks, Hispanics, Asians, and Native Americans). An implication is that value orientation may be an important component in the process of aligning the minority business firm with its environment. Further, a value system may be guiding the behavior of the minority small business owners against the overwhelming odds of racial/ethnic dissimilarities

Are You an Innovator or Adaptor? The Impact of Cognitive Propensity on Venture Expectations and Outcomes

In this study we confirm the often assumed but largely untested belief that entrepreneurs think and behave differently than others. We examine a group of more than 700 nascent entrepreneurs and 400 nonentrepreneurs. We determine the entrepreneurs’ cognitive style propensity for problem solving (Innovator versus Adaptor); we compare their expectations; and, we examine the outcomes (performance and start-up) of their ventures. We find that nascent entrepreneurs are more likely to be overly optimistic Innovators, most people are Adaptors, and one’s cognitive style can indeed play a role in the initial development and outcome for the venture, but not always as expected

The Relationship Between Minority Business Enterprises and Corporate Purchasing Personnel: Perceptions from Both Sides of the Table

This paper addresses the nature of the difficulties MBEs face when conducting business with large companies through MBE purchasing programs. Data collected from MBEs and purchasing personnel were analyzed with logistic regression to demonstrate that MBEs and their corporate purchasing counterparts have different perceptions across human, environmental, and organizational dimensions of transaction cost economics. These differences help to explain the problems: (1) that MBEs have in selling to large companies and the problems that MBEs and purchasing personnel have in implementing MBE purchasing programs; (2) of reaching agreement in the marketplace; and, (3) of collectively pursuing the economic development of the minority business community. We offer recommendations for improving the relationship between these parties

Entrepreneurship Strategies and Resources

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