Session 59

Entrepreneurship in emerging markets

Track K

Date: Monday, October 5, 2015

 

Time: 16:45 – 18:00

Common Ground

Room: Plaza Court 2


Facilitator:

  • Jonas Puck, WU Vienna

Title: A Gender Perspective on Migrant Remittances and Transnational Entrepreneurship

Authors

  • Candace Martinez, IE Business School
  • Michael Cummings, University of Nevada-Las Vegas
  • Paul Vaaler, University of Minnesota

Abstract: Research in entrepreneurship and related fields largely assumes that women are less likely to fund or found transnational businesses, particularly women from developing countries, where educational and related discrimination is more pronounced. We challenge that view, develop a theoretical framework to buttress that view, and then test a hypothesis derived from that framework through analyses of migrant remittances to and venture investment activity in 48 developing countries observed from 2000-2010. We find that the remittances from diasporas with a larger percentage of women increase venture funding availability in recipient developing countries. These gender differences suggest that women are increasingly willing and able to invest transnationally not only to insure household income streams but also to create self-employment opportunities and micro-businesses.

Title: Are Slack Resources Expropriated or Used for Innovation? Declining IPO Firm Innovation Trends in an Emerging Economy

Authors

  • Yunzhou Du, Southeast University
  • Phillip Kim, Babson College
  • Howard Aldrich, University of North Carolina-Chapel Hill

Abstract: Managers in declining firms must make choices regarding how to use their slack resources: do they attempt to turn around the firm through strategic investments or do they give up control to the largest shareholders. Controlling stakeholders may expropriate slack resources via tunneling, which is an agency problem between a controlling shareholder and minority shareholders involving the extraction of private benefits by benefitting majority shareholders at the expense of minority shareholders. We investigate the temporal impact and tunneling motivation of declining firms’ largest shareholders on innovation trends by analyzing declining IPO firms listed in China’s Growth Enterprises Market (CGEM). Our research offers new insights into how slack resources and agency problems generated by key actors influence declining firms’ turnaround strategies.

Title: How Perceived Subnational Institutions Matter to Firm Allopatric Entrepreneurship? Evidence from Transitional China

Authors

  • Sanbao Zhang, Wuhan University
  • Zhixue Zhang, Peking University

Abstract: Although a line of research studied the driving force of firms’ allopatric entrepreneurship from perspective of Institutional-based View, the mechanism of firm allopatric entrepreneurship is still ambiguous without considering the decision-makers, strategic leadership especially CEO. In order to break through such limitation, we introduced a key variable in Upper Echelons Theory, managerial discretion. Using Investment Climate Survey data which collected by World Bank in transitional China, we successfully verified the framework of “institutional environments – managerial discretion – firm allopatric entrepreneurship”, which linked macro and micro domains and insightful for exploring the causes and mechanism of other strategies.

Title: Is Government Assistance Effective in Promoting Entrepreneurship at the BOP?

Authors

  • Luisa Delgado-Márquez, IE Business School
  • Julio de Castro, IE Business School
  • Guillermo Vanderlinde, Pontifical Catholic University Madre y Maestra
  • Rosa Ruiz, Pontifical Catholic University Madre y Maestra

Abstract: For decades, poverty alleviation has topped the international development agenda. Basin on real options theory, this paper aims to analyze how government assistance, both for new venture creation and for basic needs, education and poverty levels influence the likelihood of new venture creation at BOP. Data were obtained from the 2010 Social Protection Evaluation Survey in Dominican Republic. We provide a model and analyze data from 3800 individuals and 2297 households. Initial analyses indicate that social assistance and education do affect the likelihood of new venture creation as well as poverty level. The proposed methodology consists of a logistic regression analysis. Education and poverty level are taken as moderating variables between government assistance, both for new venture creation and for basic needs and NVC.

Title: Sensing Uncertainties in Internal Environment: A Study on Start-ups in India

Authors

  • Susmita Ghosh, IIT Kharagpur
  • Bhaskar Bhowmick, IIT Kharagpur

Abstract: Self-identity dimensions which are observed as important characteristics of the internal actors play a vital role in decision making. As the internal environment provides the context for decision making, the impact of team behavior and social-identity is also very relevant to this phenomenon. Though psychology and sociology literature explains the concept of social-identity and self-identity in their specific domains, firm behavior literature is under developed in measuring those constructs related to internal environment. This paper concludes with the factor structure of uncertainty in ‘Social-Self-Identity’ having dimensions of sustained key decision making with self-adaptability of personal values in dynamically changing environment. . Extractions of factors were compared and confirmed using an alternative factor retention criteria ‘Parallel Analysis’ with 373 responses.

Title: Venture Investment in Developing Countries: The Heterogeneity of Migrant Remittances

Authors

  • Michael Cummings, University of Nevada-Las Vegas
  • David Deeds, University of St. Thomas
  • Paul Vaaler, University of Minnesota

Abstract: Migrant remittances to developing world now exceed $400 billion annually. It is estimated that 5% or more of these remittances are used to invest in new businesses and SME’s, making this the largest source of venture investment in the developing world, and one which we know little about. This paper attempts to fill that gap by examining how migrant investor characteristics and risk preferences impact investment decisions in migrants’ home country. We find that short-term migrant investment has a positive impact on business formation and long-term migrant investment has a positive impact of the availability of venture capital, suggesting that remittances are heterogeneous sources of venture capital.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 10: Entrepreneurship in Base-of-the-Pyramid Markets
Sun: 09:45 – 11:00
Session 11: Crowdfunding Research: Present and Future
Sun: 11:15 – 12:30
Session 12: Environmental Entrepreneurship: How and When do Entrepreneurs address Environmental Degradation?
Sun: 16:15 – 17:30
Session 50: Entrepreneurship and Institutional Environment
Sun: 17:45 – 00:00
Session 319: Entrepreneurship and Strategy Business Meeting
Mon: 08:00 – 09:15
Session 56: Family firms
Mon: 11:15 – 12:30
Session 119: Competition and entrepreneurial entry
Mon: 13:45 – 15:00
Session 53: New forms of entrepreneurial funding
Session 97: Accelerators, corporate VCs and new venture creation
Mon: 16:45 – 18:00
Session 59: Entrepreneurship in emerging markets
Session 98: Culture, institutions and entrepreneurship
Tue: 08:00 – 09:15
Session 54: Venture capital and angel financing
Session 118: Entrepreneurial orientation and strategic entrepreneurship
Session 217: Leadership and Governance in Family Firms
Tue: 11:00 – 12:15
Session 51: Academic entrepreneurship
Tue: 14:15 – 15:30
Session 58: Corporate VCs and spin-outs
Session 120: Creativity, knowledge spill overs and a venture's legitimacy
Tue: 15:45 – 17:00
Session 52: Entrepreneurial business models
Session 55: Entrepreneurship and cognitions
Tue: 17:30 – 18:45
Session 57: Entrepreneurial teams
Session 99: Governance and entrepreneurial finance


Strategic Management Society

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