Jan Inge Jenssen

The Effect of Founding Family Influence on Firm Value and Corporate Governance

We examined a sample of 120 Norwegian, founding family controlled and non-founding family controlled firms, to address two important research questions: (1) is founding family control associated with higher firm value; and (2) are there unique corporate governance conditions under which a founding family controlled firm can be more valuable? We find a positive association between founding family control and firm value for four alternative definitions of founding family control. We find that the association between founding family CEOs and firm value is stronger among younger firms, firms with smaller boards, and firms with a single class of shares. However, the impact of founding family directors on firm value is not affected by corporate governance conditions such as firm age, board independence, and number of share classes. We also find that the relation between founding family ownership and firm value is greater among older firms, firms with larger boards, and particularly when these firms have multiple classes of shares. Our results imply that founding family controlled firms are more valuable and governed differently than firms without such influence. Furthermore, our results also suggest that founding family CEOs can enhance firm performance when family influence does not create shareholder entrenchment or when their cash flow rights are more aligned with their control rights.

Does the degree of redundancy in social networks influence the success of business start‐ups?

Entrepreneurs use their social network to start businesses. According to Burt, low redundancy in the social network promotes entrepreneurial success. In non‐redundant networks the entrepreneurs’ contacts do not know each other and rarely have the same information. Low network redundancy gives entrepreneurs better information and it allows entrepreneurs to combine resources from non‐redundant sources. In contrast, when there is high redundancy the contacts know each other and may provide the same information. However, our study cannot confirm this hypothesis. Using data on 100 entrepreneurs in Norway we find that simple measures such as the number and strength of ties are more important for entrepreneurs than redundancy because many weak and strong ties increase the entrepreneur’s access to resources. We find that much redundancy is beneficial. Entrepreneurs get information and support more easily if they have many ties with redundant relations.

Innovation, capabilities and competitive advantage in Norwegian shipping

As a high-cost country, it is believed that Norway has to build its competitiveness in most industries on innovation and knowledge-intensive products. The shipping industry is no exception. It has to be innovative in order to prosper. This unison conclusion, which has been drawn in several research projects during the last 10–20 years, is probably also applicable for companies in other high cost countries. A major issue in this research is how the industry can develop and maintain innovativeness and international competitiveness. The aim of this paper is to discuss the conclusion drawn in previous research concerning how the shipping industry can be innovative. It concludes that shipping companies have to improve their skills and competencies in a stronger interplay between organizations within and without the maritime cluster. This may increase their total capability and innovativeness and create distinctive competitive advantages that are difficult to imitate.

The performance effect of innovation in shipping companies

The aim of this study is to investigate how innovation contributes to company performance in Norwegian shipping and to extend our knowledge concerning what organizational and inter-organizational factors influence innovation in shipping firms. The study is based on a survey of 46 Norwegian shipping companies. We find that innovation contributes to firm performance. We also find that a conscious strategy, strategy involvement, external relationships, especially market relationships, and productivity slack have a significant positive effect on the degree of innovation. The results are dependent upon the companies’ degree of differentiation and the type of innovation.

Inter-Organizational Innovation Promoters In Small, Knowledge-Intensive Firms

This paper examines the relationship between external relations and innovation in small, knowledge-intensive Norwegian firms. Our findings indicate that external relations are beneficial for innovation. The analysis shows that it is necessary to treat innovation as more than a concept. Our independent variables related differently to product innovation, process innovation, and market innovation.We found that market participation in product development has a positive impact on product, process and market innovation. We also found that top management interaction with other firms had a positive effect on market innovation and that top management interaction with external R&D had a positive effect on product innovation. This finding probably indicates that access to R&D resources is vital for product development in the context of knowledge-intensive products. The results also show that participation in conferences and courses positively influences process and market innovation and that systematic environmental scanning positively influences product innovation.

INNOVATION STRATEGY, WORKING CLIMATE, AND FINANCIAL PERFORMANCE IN TRADITIONAL MANUFACTURING FIRMS: AN EMPIRICAL ANALYSIS

In this study, we address the effect of innovation strategy and an innovative working climate on financial performance in the Norwegian wood industry. Innovation strategy embodies four dimensions: the degrees to which innovation in the form of products, processes, and business systems are embedded in the management values and priorities as well as the degree of expenditure in R&D. An innovative working climate is exemplified by team cohesion, supervisory encouragement, resources, autonomy, challenge, and openness to innovation. Previous studies have indicated a lack of research in traditional manufacturing firms on both innovation strategy and a supportive working climate. Our survey was answered by 241 CEOs. The connectional model was tested with structural equation modelling, and all hypotheses received support. This result implied that innovation strategy and an innovative working climate enhanced financial performance in traditional manufacturing firms.

Factors that promote innovation in shipping companies

This study seeks to identify factors that promote innovation in shipping companies. The study is based on an empirical investigation of 63 companies headquartered in Norway. The results imply that organizational and interorganizational variables are important to innovation. Three aspects of innovation are focused on: (1) service/product innovations, (2) market innovations, and (3) production method innovations. The explanatory variables that are applied in this study capture between 13–51% of the variability of the measures of innovation. The results indicate that an explicit strategy that promotes innovation is very important for the actual level of innovation within shipping companies. In management literature, it is often assumed that organic organizational features like decentralized decision-making promote innovation. The opposite features are assumed to restrain innovation. However, the results do not support these basic assumptions. For example, it seems to be important that managers make precise decisions in order to promote innovation.

Public intervention in the entrepreneurial process

In this paper we discuss three Norwegian cases of public programmes aimed at enhancing entrepreneurship at the regional/local level. The cases provide insight into a wide range of public initiatives implemented by the authorities such as education, consultancy, and financial stimuli. The programmes have been subjected to relatively comprehensive evaluations. In these evaluations, and also in most other evaluations of public means aimed at stimulating entrepreneurs, some important questions related to the effects on business creation and on the long term social impact of the interventions still remain to be answered. In order to overcome the problems, future research should apply longitudinal and comparative studies and use unobtrusive measures. We also discuss a theoretical framework in which entrepreneurship programmes can be interpreted and applied as a tool to improve such initiatives. Central elements in this framework are the concepts of human, social and financial capital.

Sub-cultures and Entrepreneurship: The Value of Social Capital in Tanzanian Business

The national cultures of the African nations are fragmented and it is interesting to witness the influence that some of the sub-cultural qualities have on small- scale business development. This article is an attempt to argue how the sub- cultural characteristics affect the acquisition of entrepreneurial resources at a specific location and also to see how the same has influence on the development of social capital. The article uses a case study methodology to study the entre preneurs involved in the wood business in the coastal town of Tanga, Tanzania. The empirical research establishes that sub-cultural qualities like group cohesion, mobility and level of education have significant effects on social capital formation, and thereby also on the access to entrepreneurial resources. Entrepreneurs belonging to African and Asian sub-cultures have different preconditions for developing social networks, trust and social skills, which influence resources like motivation, information and access to capital and markets.

Inter-organizational networks and innovation in small, knowledge-intensive firms: A literature review

A growing body of research acknowledges that inter-organizational networks greatly influence a firms innovation performance. This study extends our understanding of this relationship by considering the effect of inter-organizational networks on innovation in small, knowledge-intensive companies. Based on a literature review, we formulate four propositions regarding the moderating effects of firm size and knowledge intensity on the relationship between inter-organizational networks and innovation, as well as the influence of these factors on the development of the inter-organizational networks themselves.