articles

Question 1

Baron, R., Mueller, B. and Wolfe, M. findings?

Answer 1

• goal setting theory that difficult goals enhance performance on many tasks. But could negative effect if too hard - reduce motivation.
  entrepreneurs are high in self efficacy
  self-control important to ensure goals set are not too high

Question 2

what did the study by Song, Wang, Parry find?

Answer 2

some researchers argue that entrepreneurs do not need formal processes to collect and use market information, others suggest that the use of formal market information processes is positively related to firm performance

New venture performance is positively associated with the use of formal processes for utilizing market information.

Contrary to expectations, the level of customer interaction has a negative relationship with the use of formal processes for market information utilization and no significant relationship with performance

Question 3

what did study by Rauch and Hatak find?

Answer 3

• skills, motivation, empowerment-enhancing HR practices related to SME performance
• empowerment more important than motivation/skill
• positively effect self efficacy of employees and increase task meaningfulness
• HR practices that enhance employee autonomy, decision-making involvement, and responsibility levels are generally more important

Question 4

implications of Rauch and Hatak

Answer 4

• HR practices important for success
• empower employees (responsibility/decision making)
• improve intrinsic job satisfaction (reduce need for expensive extrinsic incentive based system

Question 5

Dutta and Folta?

Answer 5

• VC more specialised and deeper network (greater endorsement effect)
• VC stronger control rights than Angels (may increase management commitment & conflict)
• VCs have shorter investment time horizons

VC preferred:
• Rates of innovation (proxied by patent numbers) were the same for VC backed firms as for Angel backed firms
• Impact of innovation (proxied by patent citations) were greater for VC backed firms
• Possible reasons:
• Portfolio of VC firms may increase citations
• VC firms might be more visible
• VC firms might be encouraged more to ‘swing for the fence’

Question 6

what does study by Brinkmann suggest?

Answer 6

new vs established small firms

FINDINGS - BOTH GROUP BENEFIT FROM BUSINESS PLANNING but small businesses benefit more.

• Entrepreneurs need to carefully assess the value of business planning given their firm’s specific context.
• As the reliability, quality, and quantity of available information increases, the benefit of business planning increases.

Question 7

Martin study

Answer 7

Entreprenuership can be learnt/taught/
- specifically academic focused EET (entreprenuership, education, and training)
Theory important as well as practical