THE INDICATORS OF LOCUS OF CONTROL IN THE SMALL BUSINESS CONTEXT

There have been divergent opinions as to the suitability of the various indicators of locus of control in business management research. This study examines how the indicators of internal locus and strategic locus of control function in the small business context. The study examines first the interrelations between these indicators and then relation between each of the indicators and the firm's strategic factors. The indicators of locus of control differed from each other in their relation to external control. The indicator of strategic locus of control correlated with the firm's targets, strategic decision-making and success. On the other hand the indicator of internal locus of control is …

The Early Entrepreneurial Stage in Finnish Family and Nonfamily Firms

This study examined factors influencing the survival and success of 200 Finnish family and nonfamily firms in the metal-based manufacturing industry and business services over the first three years of their operation. The features that this study reviewed include owner-manager personality attributes, entrepreneurial competence, and motives for the start-up. Strategic choices of the firms were also examined. The study found that family firms were better equipped to survive beyond the early entrepreneurial stage than were nonfamily businesses. The entrepreneurial abilities and resources of the family business owners enabled them to operate relatively successfully in the nearby market, often w…

Entrepreneurship and the characteristics of the entrepreneurial personality

Examines the characteristics of the entrepreneurial personality and the effects of changes in the entrepreneur’s personal relationships. According to the empirical findings, becoming an entrepreneur and acting as an entrepreneur are both aspects of the entrepreneur’s learning process, which in turn has an effect on the personality characteristics of the entrepreneur. The entrepreneur’s drive to solve problems (= mastery) had increased, and control by powerful others decreased since the start‐up phase. Changes in the entrepreneur’s relations with others were also observed to have an effect on the entrepreneur’s personality characteristics. The empirical findings also show that as the number …

Birth and growth in new metal‐based manufacturing and business service firms in Finland

This study examined factors influencing the growth of new firms in metal‐based manufacturing and business services in Finland over the three first years of their operation. The factors affecting the growth of a new firm were found in the start‐up phase, in the characteristics of the entrepreneur and of the firm, and in the firm’s environment. Growth was especially explained by the know‐how and changes in the strategic behaviour of the entrepreneur and by the firm’s environment. New firmshad equal chances for growth irrespective of their locality. Instead, growth was affected by changes in a firm’s competitive situation, and, especially in the more developed service centres, growth was depen…

The birth and success of new firms in a changing environment

ENTREPRENEURIAL AND REGIONAL GROWTH ACTIVITY IN FINLAND

Audretsch & Feldman (2004) argue that an agglomeration is a collection of localized firms with a common focus. As firms thrive, resources are attracted to the region. They state that, if entrepreneurship serves as a mechanism for knowledge spillovers, measures of entrepreneurial activity should be linked positively to regional growth performance. In Schumpeterian economics the engine of economic development is entrepreneurial innovation. Creative destruction makes way for new innovations and growth. In this study, we simultaneously examine the regional entrepreneurial activity and regional growth activity in Finland. A further aim of the study was to find out if entrepreneurial activit…

Innovation among SMEs in Finland: The impact of stakeholder engagement and firm-level characteristics

PURPOSE: The aim of the paper is to analyse the importance of both internal capabilities (resources) and external information sources in implementing product, process, marketing and organizational innovations aiming to maximize firm competitive advantage and create value for stakeholders. Furthermore, in particular, we examine the role of public organizations, business networks, firm size, and the industry sector, in the emergence of different types of product, process, marketing, and organizational innovations. The research was based on the typology of innovation (product, process, marketing, and organizational) adopted by the OECD. METHODOLOGY: The paper is based on data from 389 SMEs loc…

The survival of firms over the critical first 3 years and the local environment

The aim of this study was to examine the success of new firms in different environments and the factors affecting it. In this study the criterion of a successful firm is that of continued functioning, and firms are divided into two groups: those that have closed down and those that continue after the critical first 3 years. As the basis for a regional analysis the authors look first at the differences between these two groups in terms of the characteristics of firms and entrepreneurs. The regional distribution of the firms that closed down is then examined, followed by an analysis of the regional differences in the characteristics of all the firms and entrepreneurs studied. Regional differe…

Management Capabilities and Environmental Characteristics in the Critical Operational Phase of Entrepreneurship—A Comparison of Finnish Family and Nonfamily Firms

This study seeks to clarify which factors associated with the start-up and critical operational phase of family and nonfamily firms influence the ability of those firms to survive over the critical first three years of their existence. In search of potential differences in the structural characteristics between these two types of firms, this study compares owners of Finnish family and nonfamily businesses in motives for founding the firm, characteristics of the local environment, changes in strategic factors, changes in networks, and differences in style of management. The findings revealed marked differences in individuals’ motives for founding a business: for family business owners, the …