David P. Boyd

Psychological characteristics associated with performence in entrepreneurial firms and smaller businesses

Evaluates the relationship between the psychological traits of entrepreneurs and the financial performance of their businesses. Prior research is used as the basis for the following ten hypotheses--in a sample of small business CEOs, founders will: (1) demonstrate a higher achievement orientation than will non-founders, (2) show a greater internal locus of control than non-founders, (3) manifest higher risk-taking propensity than non-founders, (4) display a higher tolerance for ambiguity than non-founders, and (5) will embody more Type A behaviors than non-founders. Among small business founders, a positive relationship will exist between: (6) corporate financial performance and the need for achievement, (7) corporate financial performance and an internal locus of control, and (8) corporate financial performance and a tolerance of ambiguity. A negative relationship will exist between: (9) corporate financial performance and risk-taking propensity, and (10) corporate financial performance and Type A behavior. Data for this study consist of responses to 239 questionnaires sent to randomly selected members of the Smaller Business Association of New England. All are small business owners; approximately 62% founded those firms. Findings indicate that, overall, founders have a higher need for achievement, risk-taking propensity, and tolerance for ambiguity than do non-founders. However, the two groups showed no difference in their locus of control and Type A personality traits. In addition, little connection is shown between psychological attributes and corporate financial performance. (SFL)

A Comparison of Entrepreneurs and Managers of Small Business Firms

This study explores the relationship between entrepreneurship and small business management. Business founders are classified as entrepreneurs and nonfounding chief executives are classified as small business managers. Findings indicate that (a) on personal and firm characteristics, eight variables differentiate the groups; (b) onfinancial performance indicators, entrepreneurial firms show higher growth rates; and (c) hard-driving competitiveness consistently associates with financial performance for small business managers but not for entrepreneurs. Data come from questionnaires completed by members of the Smaller Business Association of New England.

Moving corporate culture beyond the executive suite

In its fiduciary role, the board of directors should select a CEO who mirrors the desired ethos of the company. If the board remains cognizant of cultural compatibility as a central criterion in the hiring process, it may engage in strategic oversight without undue interference in the internal operations of the business. Once the board has fulfilled its selection mandate, problems of cultural execution await the CEO, especially in companies trying to effect cultural change. By using human resources as a strategic lever, however, chief executives can meet the Board’s mandate for unity of purpose based on core values.

Lessons from turnaround leaders

Purpose – Environmental uncertainty threatens many companies. This paper seeks to offer a strategic model to help imperiled firms overcome employee inertia, counter competitive forces, and speed organizational renewal.Design/methodology/approach – The paper presents a change model which outlines five major steps, each comprised of three elements. Examples from the field illustrate sequential stages of the cycle.Findings – This framework aligns human resources and organizational processes. By adhering to this approach, leaders can become transformational change agents.Practical implications – The proposed strategic format evolved from face‐to‐face discussions with exemplary turnaround leaders. In their visits to the authors classroom over the last six years, they offered insights that should prove beneficial to other leaders in turnaround situations.Originality/value – The paper extends existing business models by providing a comprehensive set of action steps to engage all organizational members.

The Coronary Costs of Choosing a Small Business Career

Psychosocial variables, characterized by the well-known “Type A” behavior pattern, have recently been implicated in conjunction with coronary heart disease (CHD). This study identifies the incidence of Type A behavior among a sample of small business executives and relates the behavior pattern to organizational characteristics. Findings suggest that these executives are in urgent need of stress reduction programs.

Personal Orientation, Work Stress, and Illness.

This paper examines personal orientations as anodynes for work stress and illness. Structural equation modelling indicates that mastery and religious beliefs lessen work stress, anxiety, and depression. Mastery also lessens somatic complaints. In addition, the interaction between optimism and work stress affects anxiety, depression, and somatic complaints.

Business interviews — Frequent questions, acceptable answers

Most employment interviewers ask essentially the same set of questions. The author identifies the ten most frequently recurring questions and suggests what inferences are likely to be drawn from giving certain answers. Consequently, the potential interviewee is advised to prepare responses to each before the job interview. Other suggestions include (1) asking questions of the interviewer, (2) projecting an image of self-worth, and (3) making sure it is clear who will initiate the next step after the interview.