Business Planning in Entrepreneurship

One perspective suggests BP fosters decision speed and resource efficiency, while the other argues it can lead to cognitive rigidities and limited flexibility.

The research findings vary because they draw from heterogeneous samples, including both new and established firms, and lack systematic integration.

Cognitive rigidities refer to fixed patterns of thinking that can limit an entrepreneur's strategic flexibility and adaptability in decision-making.

<p>Universities teach the importance of business plans, and BP competitions facilitate entrepreneurship and regional development.</p> Signup and view all the answers

<p>EBA systematically analyzes and appraises empirical findings to overcome biases, sampling issues, and improve external validity.</p> Signup and view all the answers

<p>The paper analyzes the development stage of the firm and other contextual factors that may influence performance.</p> Signup and view all the answers

<p>Type one errors occur when researchers incorrectly conclude that BP has a positive impact on performance when it does not.</p> Signup and view all the answers

<p>Overemphasis on BP may prevent entrepreneurs from pursuing critical activities like resource acquisition and organizational development.</p> Signup and view all the answers

<p>High uncertainty and missing information reduce the positive effect of BP on performance in new firms.</p> Signup and view all the answers

<p>Higher UA reduces the benefits of BP, limiting its effectiveness in planning processes.</p> Signup and view all the answers

<p>Business planning provides insights into how resources can be allocated efficiently to maximize performance.</p> Signup and view all the answers

<p>Firms should focus on basic BP activities and allocate resources to enable information gathering and learning.</p> Signup and view all the answers

<p>Meta-analysis aggregates prior empirical evidence to assess overall directions and effect sizes.</p> Signup and view all the answers

<p>'Bird in the hand' emphasizes starting with existing means and resources to create business opportunities.</p> Signup and view all the answers

<p>Entrepreneurs determine what they can afford to lose rather than focusing on expected profits.</p> Signup and view all the answers

<p>Entrepreneurs learn to work with surprises and leverage them to create new avenues for growth.</p> Signup and view all the answers

<p>Hofstede's model over-reduces cultural diversity and complexity factors affecting business dynamics.</p> Signup and view all the answers

<p>Written BP legitimizes the planning process and communicates intentions to stakeholders.</p> Signup and view all the answers

<p>The final sample consisted of 47 studies with 52 independent samples.</p> Signup and view all the answers

<p>Strict adherence to a BP can limit strategic flexibility and responsiveness to market changes.</p> Signup and view all the answers

<p>The 'crazy quilt' principle emphasizes building partnerships over competing directly.</p> Signup and view all the answers

<p>A written BP symbolizes commitment and organizes thoughts, enhancing the entrepreneur's credibility.</p> Signup and view all the answers

<p>The literature search involved keyword searches in databases and reviewing selected journals issue by issue.</p> Signup and view all the answers

<p>It facilitates early feedback and commitment from customers, influencing the venture creation process.</p> Signup and view all the answers

<p>By focusing on controllable aspects of their environment and engaging with the actions that shape their outcomes.</p> Signup and view all the answers

<p>Early internationalization can lead to high costs and capability development challenges that threaten firm survival.</p> Signup and view all the answers

<p>It seeks to clarify the implications of early internationalization on growth and survival by exploring moderating factors.</p> Signup and view all the answers

<p>Intangible assets positively moderate the benefits gained from a firm's internationalization strategy.</p> Signup and view all the answers

<p>Managerial experience can substitute for organizational experience, facilitating capability development in new markets.</p> Signup and view all the answers

<p>They experience learning disadvantages and higher costs in developing necessary capabilities for international expansion.</p> Signup and view all the answers

<p>The costs of developing capabilities and lack of positional advantages threaten firm survival during early internationalization.</p> Signup and view all the answers

<p>It enhances the growth and survival prospects of the venture by bringing valuable market knowledge and skills.</p> Signup and view all the answers

<p>It suggests that firm performance varies with the extent of international diversification, typically following an S-shaped curve.</p> Signup and view all the answers

<p>It refers to the lasting effects of early internationalization experiences that shape a firm's adaptability and growth potential.</p> Signup and view all the answers

<p>Capabilities developed during internationalization create organizational structures that enhance adaptability and facilitate growth.</p> Signup and view all the answers

<p>The framework is based on the dynamic capabilities view of the firm, focusing on factors like age at internationalization and managerial experience.</p> Signup and view all the answers

<p>A long-term perspective helps in developing capabilities for managing complexity and maximizing performance from international strategies.</p> Signup and view all the answers

<p>They act as barriers hindering a firm's ability to learn about new markets and adapt its resource configurations.</p> Signup and view all the answers

<p>Acquisition and greenfield investment.</p> Signup and view all the answers

<p>The RBV emphasizes managing valuable, rare, inimitable, and non-substitutable resources to achieve a sustainable competitive advantage.</p> Signup and view all the answers

<p>Cultural distance refers to the differences in culture between home country and host country, and it can lead to information deficits affecting resource management.</p> Signup and view all the answers

<p>Valuable, Rare, Inimitable, and Non-substitutable.</p> Signup and view all the answers

<p>Knowledge-based: Technological resources; Experience-based: General international experience.</p> Signup and view all the answers

<p>The study employed correlation coefficients as effect-size indexes and conducted Hedges and Olkin meta-analysis to estimate mean-correlations.</p> Signup and view all the answers

<p>Both Hypothesis 1 and Hypothesis 2 were validated.</p> Signup and view all the answers

<p>Structural integration can undermine innovation capabilities by altering valuable organizational routines.</p> Signup and view all the answers

<p>Interdependence signifies that the value of performing one activity depends on how another activity is performed.</p> Signup and view all the answers

<p>Managers need to consider the firm's various resources along with the environmental context.</p> Signup and view all the answers

<p>The study had a limited number of primary studies in some resource sub-categories.</p> Signup and view all the answers

<p>Common ground facilitates coordination between acquiring and target firms, even amidst structural integration.</p> Signup and view all the answers

<p>It refers to the negative impacts on productivity and motivation resulting from structural integration.</p> Signup and view all the answers

<p>Most studies only focused on single resources, neglecting the diverse types that firms possess.</p> Signup and view all the answers

<p>Structural integration and coordination based on common ground.</p> Signup and view all the answers

<p>High levels of common ground reduce the likelihood of structural integration.</p> Signup and view all the answers

<p>Hypothesis 2 suggests that high common ground lowers the likelihood of structural integration in technology acquisitions.</p> Signup and view all the answers

<p>Event study methodology is used.</p> Signup and view all the answers

<p>The data covers acquisitions from 1988 to 1998.</p> Signup and view all the answers

<p>Intel and Cisco Systems.</p> Signup and view all the answers

<p>Target size and Acquirer R&amp;D Intensity.</p> Signup and view all the answers

<p>Research and development have costs and pioneering innovations may not immediately create a market.</p> Signup and view all the answers

<p>It allows innovators to retain a large share of the profits from their innovations.</p> Signup and view all the answers

<p>Formal: Patents; Informal: Trade secrets.</p> Signup and view all the answers

<p>Incremental innovation offers minor improvements, while radical innovation creates advanced, distant knowledge.</p> Signup and view all the answers

<p>Merck collaborated with Washington University to create a public database of human sequence data.</p> Signup and view all the answers

<p>Resources may be made available for others to exploit, complicating the protection of innovative efforts.</p> Signup and view all the answers

<p>They assume it is the primary form of interdependence influencing organizational treatment.</p> Signup and view all the answers

<p>It requires an individual to aid others to the extent that would be necessary if everyone complied with the duty to assist.</p> Signup and view all the answers

<p>The nature of the problem and the company’s relationship to the issue.</p> Signup and view all the answers

<p>Trustworthiness and fairness.</p> Signup and view all the answers

<p>It fails to explain why many firms treat stakeholders unethically despite positive performance effects.</p> Signup and view all the answers

<p>It is a loose relationship characterized by low investment, trust, and discrete transactions.</p> Signup and view all the answers

<p>It suggests that people seek to maximize utility while adhering to norms of fairness and reciprocity.</p> Signup and view all the answers

<p>By distributing surplus value to a broad range of stakeholders who behave fairly.</p> Signup and view all the answers

<p>An arm's length relationship is often the default approach in stakeholder management.</p> Signup and view all the answers

<p>Path dependency and social complexity.</p> Signup and view all the answers

<p>Corporate Social Responsibility Engagement.</p> Signup and view all the answers

<p>Profit maximization is the primary goal of a firm.</p> Signup and view all the answers

<p>Stakeholder theory suggests that firms should consider the interests of a broader range of constituents beyond just shareholders.</p> Signup and view all the answers

<p>The two central concerns are misappropriation and misallocation of corporate resources.</p> Signup and view all the answers

<p>One normative reason is the principle of fairness and reciprocity.</p> Signup and view all the answers

<p>The 'nexus of contracts' describes firms as legal entities that can engage in various contracts with multiple parties.</p> Signup and view all the answers

<p>It argues that ignoring stakeholder interests undermines a firm's ability to maximize value.</p> Signup and view all the answers

<p>The descriptive approach examines how managers actually attend to various stakeholders' interests.</p> Signup and view all the answers

<p>It refers to deceptive practices by managers that mislead stakeholders about resource allocation.</p> Signup and view all the answers

<p>Descriptive research aims to evaluate the impacts of corporate efforts on stakeholders.</p> Signup and view all the answers

<p>The starting point should be a consideration of the specific situation and its moral implications.</p> Signup and view all the answers

<p>The five areas include appraising social stimuli, generating options, evaluating options, implementation, and consequences.</p> Signup and view all the answers

<p>The argument is that only freely elected governments should legitimately address social issues.</p> Signup and view all the answers

<p>An equivocal response indicates ambiguity or uncertainty in corporate actions regarding social issues.</p> Signup and view all the answers

<p>Evaluating responses ensures that efforts are effective and genuinely benefit their intended beneficiaries.</p> Signup and view all the answers

<p>It investigates the consequences of attending to a range of stakeholders for the firm’s performance.</p> Signup and view all the answers

<p>Customers in isolation are more satisfied and less embarrassed when an employee takes over after a transaction failure compared to when others are present.</p> Signup and view all the answers

<p>Situational awareness allows service providers to tailor recovery strategies that reduce customer embarrassment and enhance satisfaction.</p> Signup and view all the answers

<p>Related diversification involves entering markets or industries related to the firm's existing operations, enhancing synergies and resource utilization.</p> Signup and view all the answers

<p>Economies of scope occur when a firm expands its activities, such as a finance company using its data for marketing reports.</p> Signup and view all the answers

<p>The three tests are the industry attractiveness test, the cost of entry test, and the better off test.</p> Signup and view all the answers

<p>The layout can influence whether customers prefer a full takeover by employees or to complete their transactions themselves.</p> Signup and view all the answers

<p>Managers should recognize the significance of the social environment in service failures and allocate resources to better handle recoveries.</p> Signup and view all the answers

<p>Firms diversify to explore new markets, reducing reliance on a stagnant industry and leveraging existing resources.</p> Signup and view all the answers

<p>When other customers are present, patrons prefer employees to correct issues without taking over their transactions.</p> Signup and view all the answers

<p>Strategic fit refers to aligning a firm's resources and capabilities with external opportunities, enhancing competitiveness.</p> Signup and view all the answers

<p>Value is created through a unique combination of the customer’s resources and the provider’s resources.</p> Signup and view all the answers

<p>Media should convey communicative cues, provide immediate feedback, support language variety, and allow personalization.</p> Signup and view all the answers

<p>It depends on the medium's characteristics as well as the user’s unique experience with it.</p> Signup and view all the answers

<p>It suggests a U-shaped relationship where extreme usage of either type increases the likelihood of customer defection.</p> Signup and view all the answers

<p>Longer customer-provider relationships weaken the effect of self-service on defection likelihood.</p> Signup and view all the answers

<p>It limits the generalizability of the findings to other contexts.</p> Signup and view all the answers

<p>Managers should allow new customers to experience their relationship through a variety of service channels.</p> Signup and view all the answers

<p>Self-monitoring by customers can change their preferences for having employee support during a failure.</p> Signup and view all the answers

<p>Some customers prefer no employee involvement, while others want support when failures occur.</p> Signup and view all the answers

<p>Future research could assess the implications of the framework in intercultural settings.</p> Signup and view all the answers

<p>High reliance may not always be beneficial, potentially increasing defection rates.</p> Signup and view all the answers

<p>Active customers are those who use the service at least once every six months during the observation period.</p> Signup and view all the answers

<p>Customers who experience both self-service and personal service are less likely to defect.</p> Signup and view all the answers

<p>Self-monitors adjust their behavior based on societal cues and the behavior of others.</p> Signup and view all the answers

<p>Higher profit margins are a financial driver that supports servitization.</p> Signup and view all the answers

<p>Sales teams may resist selling services because services are often perceived as intangible and less straightforward compared to products.</p> Signup and view all the answers

<p>Separation can positively mediate the influence of managerial commitment on service financial and non-financial performance.</p> Signup and view all the answers

<p>Customer insights enable the development of tailored solutions that meet specific client needs.</p> Signup and view all the answers

<p>The desire to achieve a sustainable competitive advantage is a strategic driver for servitization.</p> Signup and view all the answers

<p>The sample is limited to product manufacturing firms interested in services for the installed base.</p> Signup and view all the answers

<p>Managers can utilize models to identify capability gaps and prioritize development activities.</p> Signup and view all the answers

<p>The product-service paradox refers to the difficulty in convincing stakeholders of the value of intangible services compared to tangible products.</p> Signup and view all the answers

<p>Related diversification means entering new products or markets that have technological or marketing synergies with existing lines.</p> Signup and view all the answers

<p>It allows firms to capture synergies and scope economies, leading to cost reductions along the value chain.</p> Signup and view all the answers

<p>Unrelated diversification involves entering businesses with no strategic fit or meaningful value chain connections.</p> Signup and view all the answers

<p>The dominant logic is to acquire any company that can be acquired on favorable financial terms and shows good profitability prospects.</p> Signup and view all the answers

<p>Targets include financially distressed companies or those with undervalued assets and bright prospects but limited capital.</p> Signup and view all the answers

<p>There is a strong association between intangible assets and a preference for related diversification.</p> Signup and view all the answers

<p>The diversification discount refers to the phenomenon where conglomerates are valued less than the sum of their parts, applicable mainly to single-business firms diversifying once.</p> Signup and view all the answers

<p>Absorptive capacity enables firms to recognize and integrate new knowledge into their systems, which can positively influence diversification strategies.</p> Signup and view all the answers

<p>Firms using internal growth for diversification generally achieve higher valuations than those that rely on acquisitions.</p> Signup and view all the answers

<p>The inverted U-shaped relationship suggests that moderate levels of diversification can maximize performance, while excessive diversification may hinder it.</p> Signup and view all the answers

<p>There is a positive relationship between resource flexibility and unrelated diversification.</p> Signup and view all the answers

<p>Physical resources were measured by order backlogs; intangible assets by R&amp;D and advertising intensity; and financial resources by metrics like long-term debt to market value.</p> Signup and view all the answers

<p>The conglomerate discount refers to the valuation penalty faced by conglomerates, which are often valued at a lower market price compared to the sum of their individual business units.</p> Signup and view all the answers

<p>Factors include availability of physical capacity, presence of intangible assets, and access to financial resources.</p> Signup and view all the answers

<p>Firms with more diversification can achieve value premiums due to their ability to leverage diverse operations for greater financial performance.</p> Signup and view all the answers