Session 244

Entrepreneurship in Emerging and Transition Economies

Track K

Date: Monday, October 12, 2009


Time: 12:45 – 14:00

Common Ground

Room: Meeting Room 10

Garry Bruton, Texas Christian University

Title: Environmental Uncertainty and the Global Financial Crisis: Implications for Entrepreneurial Orientation in Latin America


  • Charlene Nicholls-Nixon, Ryerson University
  • José Antonio Dávila, IPADE

Abstract: This qualitative study addresses the question, how does increased environmental uncertainty influence entrepreneurial orientation (EO)? EO refers to the strategy making processes and styles associated with the pursuit of new business opportunities and/or new market entry. Although EO has been positively associated with firm performance when environmental uncertainty is high, it is unclear whether environmental uncertainty triggers changes in EO. We address this gap in the literature by using the current financial crisis as a natural experiment to yield insights about the nature and level of entrepreneurial orientation in Mexican enterprises and whether/how it is changing. This study extends EO research to the developing economies of Latin America and explores the antecedents and elements of EO at a fine-grained level of analysis.

Title: Managerial Resources and New Venture Performance in Emerging and Established Economies: A Meta-Analytic Review


  • Souren Arzlanian, VU University Amsterdam
  • Wouter Stam, Hong Kong University of Science & Technology
  • Tom Elfring, VU University Amsterdam

Abstract: Human capital and social capital represent key managerial resources that may facilitate the performance of new ventures. Yet notwithstanding the importance of managers’ prior experience and social networks, empirical evidence on the relative impact of these resources and their different dimensions on performance are mixed. In an effort to reconcile past research results, we conduct a meta-analysis on the link between human capital, social capital, and new venture performance. We particularly focus on the potential moderating role of industry context by comparing effect sizes across new ventures operating in emerging and established economies. In so doing, our meta-analytic review contributes to a better understanding of how sampling, research design, and operationalization influence the link between managerial resources and new venture performance.

Title: Product Diversification and IPO Performance in Transition Economies: Evidence from China


  • William Wan, City University of Hong Kong
  • Daphne Yiu, Chinese University of Hong Kong
  • Xiaodan Wang, Western Michigan University

Abstract: Research on IPOs has not paid sufficient attention to the unique institutional context of transition economies. In addition, the study of product diversification is one of the most important topics in strategic management; however, extant research has not studied if and how IPO performance would be affected by product diversification. Our study fills this gap in the literature by examining the relationship between product diversification and IPO performance in transition economies. Furthermore, many firms in transition economies have significant state ownership and are organized into business groups. We posit that the relationship between product diversification and IPO performance would be moderated by these two salient institutional characteristics in transition economies. To test the hypotheses, we use a sample of IPOs in China in recent years.

Title: R&D Resources, Management and Innovation: Evidence of Mediation


  • Kai Xu, University of Texas at San Antonio
  • David Sirmon, University of Washington
  • Shanxing Gao, Xi'an Jiaotong University

Abstract: Understanding the antecedents of innovation is important to theory and practice alike. Drawing from recently developed “resource management” theory, we extend our understanding of innovation by moving beyond the direct effects of R&D-related resources to investigate a mediating factor: R&D management. Specifically we hypothesize that R&D management actions mediate the relationship between social, human and financial capital and innovation. Based on data from Chinese manufacturing firms, our structural equation models show that indeed, R&D management fully mediates the relationship between social and human capital and innovation, while financial capital is partially mediated. The implications of this research are discussed with respect to both academic and practitioners.

Title: The Leaders Role in Resetting Strategy: Empirical Assessment of Radical Change in a State-Owned Enterprise


  • Prithwiraj Choudhury, Harvard University
  • Tarun Khanna, Harvard University

Abstract: There is relatively less economic scrutiny of performance improvement at state owned entities where privatization may not be feasible. We document evidence of 42 government laboratories in a key emerging market starting from a base of almost no U.S. patenting, collectively being granted more U.S. patents than all domestic private firms combined. The labs are then able to license several of these patents to multinationals to reduce their dependence on government budgetary support. This change in strategy follows leadership change at labs, an event whose timing is plausibly exogenous being dictated by rigid government employment rules. Our empirical analysis is based on hand-collected data from the Council of Scientific and Industrial Research in India from 1993-2006, supplemented by data from CVs of 593 senior scientists.

Title: Understanding Business Groups Origins: The Role of Institutional Environment


  • Natalya Totskaya, Concordia University

Abstract: This paper reviews the alternative perspectives on business groups origins. The paper argues that the great variety of institutional profiles and developmental paths requires an integration of competing hypotheses. A multi-theoretical perspective combining institutional theory and path dependency approach may be useful for better understanding of business groups development. By identifying the common features of institutional environment of transition economies, this paper links business groups to the specific configurations of national institutions. The paper offers a preliminary framework for analysis of institutional transformations. Paper suggests that the business group development is subject to the complex processes of institutional change. The role and origins of business groups are affected by the centralization of authority, and by the degree of openness of transition economies.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 254: Developing a Game Plan for Strategy Research on Social Entrepreneurship
Sun: 13:00 – 14:30
Session 253: Knowledge Spillovers and Strategic Entrepreneurship
Sun: 15:00 – 16:30
Session 252: Key Issues and Emerging Questions in Entrepreneurial Strategy Research
Sun: 16:30 – 17:30
Session 315: Entrepreneurship & Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 102: Networks, Alliances and Entrepreneurship
Session 244: Entrepreneurship in Emerging and Transition Economies
Mon: 15:45 – 17:00
Session 100: Founders, Founding Conditions and Human Capital
Session 249: Examining Entrepreneurial Phenomena at Multiple Levels
Mon: 17:15 – 18:30
Session 101: Opportunities & Founders
Session 248: Issues in Governance and Technology Commercialization in New Ventures
Tue: 10:00 – 11:15
Session 107: Current Thoughts on Entrepreneurship in Emerging and Transition Economies
Session 111: Opportunties, Uncertainty & Innovation in Entrepreneurial Ventures
Tue: 11:30 – 12:45
Session 106: Current Thoughts on Signaling and Venture Capital
Tue: 14:30 – 15:45
Session 108: The Impact of Institutions, Regions and Countries on Entrepreneurial Ventures
Wed: 10:00 – 11:15
Session 105: Current Research on Serial Entrepreneurs and Market Makers
Session 112: The Impacts of Diversification on Entrepreneurial Ventures
Wed: 11:30 – 12:45
Session 104: Employees Mobility and Corporate Entrepreneurship
Session 109: Current Research on Uncertainty and Entrepreneurship

Strategic Management Society

Washington DC