James C. Hayton

Factor Retention Decisions in Exploratory Factor Analysis: a Tutorial on Parallel Analysis

The decision of how many factors to retain is a critical component of exploratory factor analysis. Evidence is presented that parallel analysis is one of the most accurate factor retention methods while also being one of the most underutilized in management and organizational research. Therefore, a step-by-step guide to performing parallel analysis is described, and an example is provided using data from the Minnesota Satisfaction Questionnaire. Recommendations for making factor retention decisions are discussed.

Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship

The ability of family firms to identify and respond to changes in their external environments can be a key source of competitive advantage leading to success and survival. Some research, however, has suggested family firms are conservative and often lack the ability to adapt to their changing competitive environments. Using data from 248 family firms, we found a family firms culture of commitment to the business is positively associated with its strategic flexibility—the ability to pursue new opportunities and respond to threats in the competitive environment. Further, we found stewardship–oriented organizational culture positively moderated the family commitment–strategic flexibility relationship.

The Role of Affect in the Creation and Intentional Pursuit of Entrepreneurial Ideas

The creation and intentional pursuit of entrepreneurial ideas lies at the core of the domain of entrepreneurship. Recent empirical work in a number of diverse fields such as cognitive psychology, social cognition, neuroscience, and neurophysiology all suggest that dual processes involving affect and cognition have a significant impact on judgment and decision making. Existing cognitive models ignore this significant role. In this article we develop a framework for understanding the role of affect on idea perception and the intention to develop the entrepreneurial idea. We present a set of testable propositions that link affect to entrepreneurial idea perception through its influence on attention, memory, and creativity. A second set of propositions links affect to the intention to pursue these ideas further. We explore the boundary conditions and moderators of the proposed relationships, and discuss the implications of this framework for existing cognitive and psychological perspectives on entrepreneurship.

Is there an entrepreneurial culture? A review of empirical research

The literature on the association between cultural values and entrepreneurial beliefs, motives and behaviours has grown significantly over the last decade. Through its influence on beliefs, motives and behaviours, culture can magnify or mitigate the impact of institutional and economic conditions upon entrepreneurial activity. Understanding the impact of national culture, alone and in interaction with other contextual factors, is important for refining our knowledge of how entrepreneurs think and act. We present a review of the literature with the goal of distilling the major findings, points of consensus and points of disagreement, as well as identify major gaps. Research has advanced significantly with respect to examining complex interactions among cultural, economic and institutional factors. As a result, a more complex and nuanced view of cultures consequences is slowly emerging. However, work that connects culture to individual motives, beliefs and values has not built significantly upon earlier work on entrepreneurial cognition. Evidence for the mediating processes linking culture and behaviour remains sparse and inconsistent, often dogged by methodological challenges. Our review suggests that we can be less confident, rather than more, in the existence of a single entrepreneurial culture. We conclude with suggestions for future research.

Entrepreneurial leadership, capabilities and firm growth

In this article, we review and synthesize extant research on entrepreneurial leadership, capabilities and their influence on the growth of small- and medium-sized enterprises (SMEs). First, we begin by examining the processes, routines and resources underlying substantive growth capabilities; these are capabilities that enable a firm to grow by competing in its market(s) on a day-to-day basis. Second, we explore leadership in terms of the cognitions motivations and decisions to invest in growth. Third, we examine the dynamic capabilities, which extend, modify or create new substantive (growth) capabilities, to support the sustained pursuit of new opportunities. In so doing, we explore the interrelationships between substantial capabilities, leadership and dynamic capabilities. We conclude the review by highlighting areas of consensus and contention in the literature, from which we propose fruitful areas for future research.

Entrepreneurial opportunity identification and new firm development processes: a comparison of family and non-family new ventures

This research examines differences between family and non-family firms with respect to new venture creation processes. We invoke a social embeddedness explanation of differences between family and non-family firms with respect to opportunity identification processes and outcomes and new venture development processes. In a sample of 183 family and non-family firms, we find that family firms are less likely to report an opportunity identification process that is sudden, spontaneous and creative. The new opportunities thus identified are less innovative than those identified by non-family firms. Finally, family firms are somewhat more likely to follow effectuation processes and significantly less likely to follow causation processes during new venture creation. Implications for research and practice are discussed.

Disentangling the antecedents of ambidexterity: Exploration and exploitation

Abstract We view ambidexterity as a paradox whereby its components, exploration and exploitation, generate persistent and conflicting demands on an organization. Drawing on the attention based view of the firm (ABV), we examine three antecedents of organizational ambidexterity that reflect ABV’s three principles − the principle of focus of attention; the principle of situated attention; and the principle of structural distribution of attention. Specifically, we examine the influence of top management team (TMT) composition, whether or not the firm has a clear written vision, and the extent to which organizational attention is focused on investments in R&D, and continuous improvement. We empirically validate our model on a sample of 422 small and medium-sized enterprises in the UK and find that ambidexterity is supported by a blend of integration and differentiation approaches.

Commentary on “Exploring the Sensitivity of Horn's Parallel Analysis to the Distributional Form of Random Data”

In the article “Exploring the Sensitivity of Horn’s Parallel Analysis to the Distributional Form of Random Data,” Dinno (this issue) provides us with strong evidence that the distribution of random data does not have a significant influence on the outcome of the analysis. I appreciate the thorough approach to evaluating this assumption, and I agree that this knowledge helps further increase our confidence in using the parallel analysis (PA) method for deciding how many factors to extract from a real data set. Dinno has clearly presented evidence that, in fact, the distributional assumption does not matter. In this commentary, I address two issues. The first is the question of the distributional assumption, which forms the primary motivation for the article. The second and perhaps more critical issue is whether works such as these are having an impact on research methods in practice, as illustrated by the record of publications in major journals. This commentary is motivated primarily by Dinno’s observation that “ironically, PA has enjoyed both a substantial affirmation in the methods literature for its performance relative to other retention criteria while at the same time being one of the least often used methods in actual empirical research (cf. Hayton et al., 2004; Patil et al., 2008; Thompson & Daniel, 1996; Velicer et al., 2000).” I wish to address this issue one more time, raise questions as to why this is the

Organizational Resourcefulness: The Role of Purposeful Resource Focus Vacillation in Implementing Corporate Entrepreneurship

Abstract This chapter focuses on how corporate entrepreneurs seize opportunities and deal with threats through resource acquisition, control, and use. When corporate entrepreneurs fail to gain control of preferred resources they must rely on their ability to optimize their use of resources on hand in order to avoid the typical limitations inherent in a constrained set of resources. However, control of resources, whether existing or supplementary, by itself is an insufficient basis for influencing performance. Performance also depends on an organization’s capacity to deploy resources in combination with strategically important organizational processes to affect a desired end. The way in which corporate entrepreneurs utilize their resources is likely to have a more significant effect on performance than is merely having control of them. The current research aims to elaborate on how corporate entrepreneurs can become more resourceful by using a vacillation approach to resource acquisition and utilization. In this context, vacillation is movement between exploration and exploitation, or knowledge acquisition and knowledge integration from a knowledge management perspective. Vacillation is distinguished from the “balance” hypothesis prevalent in the organizational ambidexterity literature. A balance hypothesis states that both exploration and exploitation may be pursued simultaneously either by creating structural or contextual organizational ambidexterity. Here, we explain how vacillation enables an organization’s corporate entrepreneurship posture to lead to improved performance. In this chapter, we first describe the extant literature and construct relationships between corporate entrepreneurship posture, organizational resource level, vacillation, and organizational performance. We then analyze the learning processes associated with vacillation and discuss the research and managerial implications associated with the proposed relationships.