Harold P. Welsch

Organizational Absorptive Capacity and Responsiveness: An Empirical Investigation of Growth-Oriented SMEs

This study examines the relationship between firm absorptive capacity and organizational responsiveness in the context of growth–oriented small and medium–sized enterprises (SMEs). By testing the different dimensions of absorptive capacity, external knowledge acquisition and intrafirm knowledge dissemination were found to be positively related to organizational responsiveness. In addition, the relationships between absorptive capacity and organizational responsiveness were moderated by environmental dynamism and the SMEs’ strategic orientation. Results demonstrate that the responsiveness of growth–oriented SMEs is expected to increase if (1) they have well–developed capabilities in external knowledge acquisition and intrafirm knowledge dissemination; (2) they have a well–developed external knowledge acquisition capability and adopt a more proactive strategy, such as being a prospector; (3) they face a turbulent environment and have a well developed internal knowledge dissemination capability. Implications and future research directions are provided.

Roles of Social Capital in Venture Creation: Key Dimensions and Research Implications*

This study was built upon Nahapiet and Ghoshals three dimensions of social capital—structural, relational, and cognitive. It addresses three research questions: (1) Are there significant differences in social capital between nascent entrepreneurs and the general public (control group)? (2) Are there significant differences in social capital between technology and nontechnology nascent entrepreneurs? (3) How do the three dimensions of social capital interact among themselves across different sample groups? These questions were examined by using the Panel Study of Entrepreneurial Dynamics data set. Results suggest that there are no significant differences in various dimensions of social capital between nascent entrepreneurs and the general public. What differentiates the two groups is not the amount of social capital but the patterns of association among its different dimensions. Additionally, the authors found that technology‐based nascent entrepreneurs tend to have a higher degree of relational capital than their nontechnology counterparts. Implications and future research directions are discussed.

Family Business Research: The Evolution of an Academic Field

The establishment of a field of study or a discipline with academic or professional standing requires, among other things, a body of knowledge that expands understanding of that domain. This paper looks at the literature on establishing a unique field of study, reviews the foundational research in family business (1980s) and four recent years (1997-2001) of published family business research found in several outlets. We find that family business research is becoming increasingly sophisticated and rigorous. This bodes well for the development of an independent field for family business. Recommendations are offered to further the professionalization of family business as an academic and professional domain.

Social capital and entrepreneurial growth aspiration: a comparison of technology- and non-technology-based nascent entrepreneurs ☆

Social capital is broadly described by researchers as an asset embedded in relationships—of individuals, communities, networks or societies [Admin. Sci. Q. 42 (1997) 339; Acad. Manage. Rev. 23 (1998) 242; Organ. Sci. 8 (1997) 109]. This study will build upon Nahapiet and Ghoshals [Acad. Manage. Rev. 23 (1998) 242] three dimensions of social capital, including the structural, the relational, and the cognitive. The purpose of this research is to investigate (1) how the three dimensions of social capital interact among themselves in technology-intensive new ventures, (2) to what extent the interactions are different from those in the context of non-technology-based new ventures, (3) how the three dimensions of social capital influence the growth aspiration of the technology-based new ventures in a way that is different from non-technology-based ventures. We examined these questions using a data set from Panel Study of Entrepreneurial Dynamics (PSED) [Reynolds, P. (2000). National panel study of US business start-ups: background and methodology. In Databases for the study of entrepreneurship Vol. 4 (153–227) Greenwich, CT: JAI Press/Elsevier]. Results from structural equation modeling suggest that technology-based entrepreneurs benefit more from relational embeddedness—the freer and greater exchange of non-redundant information. Non-technology-based entrepreneurs benefit more from structural embeddedness—the extensiveness of social networks. Each dimension of social capital reinforces the creation of the other dimensions in technology-based new ventures, which in turn, contributes to entrepreneurial growth aspiration. Our findings suggest that the closure [Am. J. Sociol. 94 (1988) S95] and hole arguments [Burt, R.S. (1992). Structural holes. Cambridge, MA: Harvard Business Press; Admin. Sci. Q. 42 (1997) 339] are not as contradictory as they might seem. Implications and future research directions are proposed.

Emerging Structures in Entrepreneurship Education: Curricular Designs and Strategies

Analyzes the history of entrepreneurship education and presents frameworks for the development of entrepreneurship education courses and programs. In evaluating whether entrepreneurship has become an established discipline, the following areas are considered: systematic theory and an established body of literature; authority, professional associations, and communication sanction; ethical codes and culture; and career opportunities for graduates. At the time of this study, there were at least 12 academic journals and 20 annual conferences focused on entrepreneurship. In addition career opportunities included positions with newly established firms or as entrepreneurial executives with established firms. While entrepreneurship was recognized as a discipline and a career, business and management education was slow to react. Entrepreneurship education has developed along two dimensions: the absolute number of entrepreneurship courses and the degree of integration of the entrepreneurship courses. Using these dimensions, two frameworks are presented. The first framework, a matrix of these two dimensions, identifies four optimal combinations. The second framework is built upon two paths: stages of transition in a firm and a functional approach. As entrepreneurship programs are developed, multiple alternative structures and learning mechanisms are needed to meet the needs of a variety of individuals. (SRD)

Entrepreneurship in China: Characteristics, Attributes, and Family Forces Shaping the Emerging Private Sector

This study profiles new Mainland Chinese entrepreneurs and their enterprises as well as explores the cultural and family forces shaping small- and medium-size enterprise development. The study uncovers entrepreneurial motives, demographic attributes, and the type of businesses being established. Family and enterprise relationships relating to financial investment and employment are also presented. The majority of enterprises were found to be closely held small businesses focused on the retail and technology sectors. The findings suggest that entrepreneurs are motivated by the need for independent-based achievement and continuous learning around a family focus. Family played an active role in enterprise formation and development in China. Entrepreneurs were found to rely on family members both to establish and develop their enterprises. The majority of the entrepreneurs surveyed employed at least one family member on a full-time basis. Entrepreneurs were also found to use family finances as the primary source of start-up capital.

The (Re)-Emergence of Family Businesses in the Transforming Soviet Bloc: Family Contributions to Entrepreneurship Development in Romania

Through an intensive investigation of Romania, this study investigates various aspects of family businesses in the transforming Soviet Bloc. The study explores the relationships between entrepreneurship, family, and enterprise development. The objective of the paper is to probe societal elements impacting entrepreneurship, and to identify the level of family participation in the transforming economy of Romania. We find that family plays an important role in at least two ways: direct support of the business, and through the development of social, community, and economic networks.

Differences in Familial Influence Among Women-Owned Businesses

This study identifies groups of women entrepreneurs who were subject to varying degrees of family influence. The term family intensity was derived to characterize those firms that had family investors and family members employed in the business. Eight hundred thirty-two women business owners were sampled, representing a wide variety of industrial sectors. The findings suggest that family intensity plays a significant role in strategic planning and degree of involvement in the business. Family-intense firms were more likely to engage in growth and expansion planning and to report greater sales performance. Furthermore, the results suggest that family intensity affects careerism and ownership issues confronting the woman entrepreneur.

Developing and Validating a Construct of Entrepreneurial Intensity

In this article we define, validate, and propose a construct of entrepreneurial intensity, or the degree of entrepreneurship in firms. First, in defining the construct, we explore theoretical differences between entrepreneurial intensity and orientation in order to distinguish it. Second, we empirically validate a measure of entrepreneurial intensity using data based on a sample of 563 entrepreneurs. Third, we propose avenues for research on how entrepreneurial intensity distinguishes entrepreneurs and entrepreneurial action. Finally, we detail theoretical implications of using entrepreneurial intensity as an antecedent and outcome.

Small firm entrepreneurial outsourcing: traditional problems, nontraditional solutions

Purpose – Pursuing objectives despite limited internal resources and leveraging external resources despite non‐ownership are familiar hallmarks of entrepreneurial firms. Although outsourcing is the standard way for businesses to surmount these barriers, entrepreneurial firms often lack the resources to purchase outsourcing arrangements. The purpose of this paper is to shed light on how entrepreneurial firms can better procure and benefit from outsourcing arrangements.Design/methodology/approach – The paper examines six entrepreneurial firms in a Shanghai business incubator as they undertook a variety of outsourcing arrangements. It utilizes an integrative framework based on transaction cost theory, resource dependency theory, and the resource‐based view. It then cross‐hatches those three theory bases with four outsourcing modes (full, partial, spinout, inter‐outsourcing) and case study methodology.Findings – The papers findings yield three novel propositions for strategic and ex ante entrepreneurial firm...