The social and entrepreneurial orientation of small businesses:mutually exclusive or reinforcing? (INTERACTIVE PAPER)

Principal Topic - As argued by Acs and Phillips (2002) it is not only “the creation of wealth (entrepreneurship)” but also “the reconstitution of wealth (philanthropy)”, which has been essential for the inherent dynamism of the market economy (Ibid., p.201). However, we understand little about the entrepreneurship – philanthropy link in institutional contexts that differ from that of leading developed market economies. Accordingly our research agenda is to investigate the entrepreneurship-philanthropy nexus in a very different context of Lithuania, a country which shed a command economy system twenty years ago. In particular, we are interested to see if the cluster of attitudes and strategies of firms conducive to entrepreneurship, i.e. their entrepreneurial orientation (Covin & Slevin, 1989), is consistent or contradictory with philanthropy? In other words, is philanthropy strongly associated with some core components of entrepreneurship, or is it an entrepreneurial anomaly, relying on a minority of economic actors that provide important links with wider, non-economic communities. Method - The study draws on 270 randomly sampled, phone interviews with owners and ownermanagers of small and medium-sized enterprises (SMEs), i.e. firms with less than 250 employees. Interviews were conducted in Lithuania during January- March, 2008. Our results are based on confirmatory factor analysis combined with regression analysis. Results and Implications - Despite the legacy of informal institutions that is conducive neither to entrepreneurship nor to civic society, we found that by now, (i) the companies that score highest on entrepreneurial orientation construct, (ii) that perform best and those (iii) that have foreign owners are also most likely to declare their commitment to philanthropy. Our findings that most entrepreneurial firms are also involved in philanthropy are consistent with the perspective on the pattern of development in an entrepreneurial economy as outlined by Acs and Phillips (2002).

A cross-cultural approach to understanding entrepreneurial intention

The current research aims to shed light on the role of culture in the formation of career intentions. It draws on the Theory of Planned Behavior (TPB; Ajzen), which has been widely employed to predict intentions, including entrepreneurial career intentions, but past research has almost exclusively been conducted in "Western" countries. The current research specifically explores the extent to which both the strength of relationships of TPB predictors with entrepreneurial career intentions and the TPB predictors themselves are invariant across cultures. The study compares six very different countries (Germany, India, Iran, Poland, Spain, and the Netherlands), drawing on an overall sample of 1,074 students and their assessments of entrepreneurial career intentions. Results support culture universal effects of attitudes and perceived behavioral control (self-efficacy) on entrepreneurial career intentions but cultural variation in the effects of subjective norm. © The Curators of the University of Missouri 2012.

Entrepreneurial intentions in developing and developed countries

Purpose – This study proposes to use the Theory of Planned Behaviour to predict entrepreneurial intentions among students in five developing and nine developed countries. The purpose is to investigate whether entrepreneurial intention and its antecedents differ between developing and developed countries, and to test the theory in the two groups of countries. Design/methodology/approach – A total of 2,225 students in 13 countries participated in this study by responding to a structured questionnaire in classrooms. Structural equation modelling was used to analyse the data. Findings – The findings indicate that respondents from developing countries have stronger entrepreneurial intentions than those from developed countries. Moreover, the respondents from developing countries also score higher on the theory's antecedents of entrepreneurial intentions – attitudes, subjective norms, and perceived behavioural control – than respondents from developed countries. The findings support the Theory of Planned Behaviour in both developing and developed countries. Research limitations/implications – The findings strongly support the Theory of Planned Behaviour. The measure of subjective norms used, a multiple-item index encompassing the views of other people and motivation to comply with these, seems to have advantages over other measures of this concept. Practical implications – Developing countries need to focus on the development of institutions that can support entrepreneurial efforts. At the same time, developed economies may need to accept that entrepreneurial intentions are dependent on the dynamism of an economic environment and possibly on risk-perceiving behaviours. Originality/value – While multiple-country studies on entrepreneurship in developing and developed countries have been called for, no previous study has compared entrepreneurial intentions between developing and developed countries. The inclusion of developing countries provides a unique quasi-experimental setting in which to test the theory.

On the compatibility of benevolence and self-interest:philanthropy and entrepreneurial orientation

This article explores the philanthropy of owner–managers of small- and medium-sized enterprises (SMEs) investigating whether and why more entrepreneurially oriented SMEs are also more likely to engage in philanthropic activities. We find support for a positive link between entrepreneurial orientation (EO) and philanthropy in a representative sample of 270 Lithuanian SMEs controlling for alternative explanations. We highlight that philanthropy is relatively common among SME owner–managers and thus complement existing research which views philanthropy as sequentially following wealth generation. In line with our theorizing, further qualitative findings point to drivers of philanthropy beyond those considered in the dominant strategic-instrumental perspective. Building on social-psychological theories of motivation, we argue and confirm that philanthropy can also be an expression of owner–managers’ altruistic values; these values can be compatible and even mutually reinforcing with entrepreneurship. Our study is set in a transition economy, Lithuania, facilitating the analysis of heterogeneity in attitudes toward philanthropy.