K. F. Chan

The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies

Using the concept of competitiveness and the competency approach, a conceptual model is developed that links the characteristics of SMEs owner-managers and their firms long-term performance. Competitiveness entails three characteristics -- potential, process, and performance – but is also characterized by long-time orientation, controllability, relativity, and dynamism. After reviewing the literature on competitiveness, three aspects affecting an SMEs competitiveness are determined, which impact the firms performance: (1) the internal firm factors; (2) the external environment; and (3) the influence of the entrepreneur. The influence of the entrepreneur is addressed further by the competency approach from a process or behavioral perspective. A conceptual model for SME competitiveness is proposed, consisting of four constructs: the competitive scope and organizational capabilities of the firm, entrepreneurial competencies, and performance. The relationship between the competency areas and other constructs of SME competitiveness is central to the proposed model, and it can be hypothesized into three principal entrepreneurial tasks: (a) forming competitive scope; (b) creating organizational capabilities; (c) setting goals and achieving them. One of the contributions of the theoretical framework is the organization of existing theories and findings in entrepreneurial characteristics and firm performance around the three entrepreneurial tasks. It is also suggested that the entrepreneur needs a balance between various competencies. As the role of the entrepreneur in firm performance is emphasized,the proposed model will fit better with firms that are smaller and have a dominating entrepreneur.This study has identified six competency areas, but further studies are needed to identify individual competencies in each area.Future empirical studies in the form of qualitative methods are recommended for investigating competency areas in detail. Inter-industry comparisons are also recommended.(CBS)

The entrepreneurial behaviour inventory

Purpose – The purpose of this paper is to report the development and validation of the entrepreneurial behaviour inventory (EBI), an instrument for measuring the entrepreneurial behaviours of corporate managers.Design/methodology/approach – Through actual consulting experience, interviews and discussions with business owners and company managers, 40 incidents were written to describe ten of the most commonly identified entrepreneurial attributes. The response options were developed using behaviourally anchored rating scales and were validated by rank‐order correlation analysis and t‐tests. The authors then conducted a study to examine the dimensionality of the EBI via principal component analysis and to reduce the number of situations from 40 to 12. A confirmatory factory analysis was further conducted using the data from a second sample of corporate managers.Findings – Through an integrated series of studies, the authors identified a reliable and valid four‐factor structure of the EBI. The dimensions are...

CROSS-BORDER ENTREPRENEURS – A STUDY OF THE CHANGING STRATEGIES AND COMPETENCIES OF HONG KONG ENTREPRENEURS UPON EXPOSURE TO THE EMERGING MARKET OF CHINA

In a study of five entrepreneurs operating their business first in Hong Kong and later in the PRC, we examine the modes of entrepreneurship from the Kirznerian and Schumpeterian perspectives. The results showed that these entrepreneurs appeared basically Kirznerian in their strategy when their business focuses were in Hong Kong, and shifted toward a blend of the Kirznerian and Schumpterian modes when operating their businesses in the PRC. Such a shift can be explained by the adaptation of their competencies to the PRC context.

Are small business owner/managers really entrepreneurial?

There have been many discussions of the differences and similarities between small business owner/managers and entrepreneurs. Some argue that small business start–up owners create the company for the main purposes of profit and growth, and therefore they should be grouped as entrepreneurs. However authors in support of a behavioural approach suggest that the trait view on entrepreneurs is not sufficient as innovative behaviour may not be found among small business owner managers especially when the company has been established and operated in the stable stage. This paper presents the analyses of entrepreneurial activities reported by diary method of 10 business owner managers in Hong Kong from various manufacturing industries. Time allocation on different entrepreneurial activities is analysed. The findings do confirm that small business owner managers spend a large amount of time on activities related to the entrepreneurial role in running their business, but there are some variations from company to com...

HOME-GROWN AND ABROAD-BRED ENTREPRENEURS IN CHINA: A STUDY OF THE INFLUENCES OF EXTERNAL CONTEXT ON ENTREPRENEURIAL COMPETENCIES

As an attempt to explore the influence of external context on entrepreneurial competencies, we conducted a comparative analysis using a sample of 16 home-grown and abroad-bred entrepreneurs in China. Through a content analysis of the critical incidents during their business development, we found that both groups demonstrated a similar set of entrepreneurial competencies, with strategic, relationship, conceptual, organizing and opportunity competencies being the most predominant types. However, the orders of relationship and organizing competencies between the two groups were different due to the different behavioural elements, attributes, skills and knowledge domains constituting them. We concluded that the context is a critical yet complex dimension of entrepreneurial competencies, as the early context from which the entrepreneurs grow up has significant impacts on the formation of some competencies, whereas the current context in which they operate their businesses will determine their uses and will shape the development of other competencies.

Corporate entrepreneurship of IJVs in China

Purpose – The purpose of this paper is to examine if corporate entrepreneurship in terms of innovation and proactivity that has been developed in the international joint ventures (IJVs) in the Chinese cultures.Design/methodology/approach – A structured questionnaire with a systematic sampling approach was adopted and sent to 800 firms (400 from the manufacturing industry and 400 from the servicing industry) in Beijing. Descriptive statistics, correlation analyses and stepwise multiple regression were used.Findings – Corporate entrepreneurship exists in the IJVs, yet the Western‐Chinese JVs are more innovative and proactive. It is found that organisational variables such as flexibility, operational delegation, control system and the implementation of differentiation or growth strategy are significantly related to both innovation and proactivity. However, organisational variables on strategic delegation and risk‐taking culture are significantly related to proactivity only. On the other hand, the implementat...

THE ENTREPRENEURIAL PERSONALITY OF SMALL BUSINESS OWNER-MANAGERS IN HONG KONG: A CRITICAL INCIDENT ANALYSIS

This paper reports on the research being carried out in Hong Kong on the entrepreneurial personality of eighteen small business owner-managers in the following sectors: (1) clothing, (2) food processing, (3) catering. A profile of each of the small business companies was drawn up. In addition, unstructured in-depth interviews were carried out with the business owner-managers who were asked to explain the process of business development through the medium of critical incidents and their ways of handling the situations in the incidents. The transcribed and translated interviews have been content analysed. Behavioural attributes contributing to the entrepreneurial personality are thus identified. Throughout the study, a grounded theory approach has been adopted to explore the behavioural pattern displayed by small business owner-managers in Hong Kong so that no specific prescribed pattern from the West is imposed. The paper concludes therefore with the entrepreneurial personality specifically applicable in the Hong Kong. Hence the conclusions derived are significant in that they are specific to the Hong Kong context.

Managerial Competence of SME Owner/Manager – Does Regional Context Matter?

Abstract Business ventures need to consider multi-faceted cultural and operational elements in order to survive in the global business environment. Entrepreneurs who intend to set up and develop their business successfully should possess international attributes, as the new business development model emphasizes comparison beyond borders. The question in trying to develop such international entrepreneurs is whether or not entrepreneurs from different place are similar or different with regard to their personal qualities. Using Hong Kong and the U.K. samples, this paper attempts to provide a comparison between these two groups of entrepreneurs. The basis of comparison is entrepreneurial competence, which is argued to be a good representative dimension of the personal qualities of entrepreneurs. The results suggest that there is no statistically significant on the difference between Hong Kong and U.K. entrepreneurs, despite the fact that they are not the same in some trait-competencies and knowledge/skill competencies. It is suggested that the differences in trait competencies are mainly due to cultural environment, while the differences in knowledge/skill competencies are due to the operational environment. The paper concludes that the universality of entrepreneurs’ competence is possible but depends on competence transferability.