This paper examines the effects of two specific contextual factors: environmental velocity and decline speed, and timing of response on a firm's turnaround performance.We conducted a 12-year longitudinal study on a sample of U.S.-based, publicly traded firms that experienced a significant decline in performance.We find that environmental velocity impacts the swiftness and nature of the response to performance decline, and that, in turn, affects turnaround outcomes.Firms in high-velocity environments undergo rapid declines and are more likely to undertake a retrenchment strategy.Speed in implementing a retrenchment strategy is linked to turnaround for firms experiencing rapid declines.These results further our knowledge of the nature of the multifaceted association between the nature of change in the environment, managerial action, and performance outcomes.One of the few longitudinal studies to include both industry-and firm-level variables in advancing interpretations of strategic turnarounds.

This paper elaborates on the development of a small business certificate program in rural Kansas. Researchers and local practitioners suggest that there are differences between rural and urban small businesses and that most educational programs do not account for these differences. After exploratory research, the university team identified specific needs facing local businesses and tailored a program for their needs. A program structure and set of topics, paired with faculty experts was developed and implemented. Topics focused on developing an entrepreneurial orientation, as well as certain business fundamentals that were deemed critical to small rural businesses. Each topic was oriented toward the rural context where face to face business is more essential. A feedback loop was implemented leading to a shorter 8-week timeframe and some topic adjustments. To date, 378 firms have participated in the program and have shown an 80% survival rate. Specific feedback has indicated that business growth has occurred and that the respondents do perceive development in their entrepreneurial orientation. In addition, specific skill areas related to unique businesses have been improved. Lastly, the program participants have grown their regional business networks, which has been shown to be an important factor for rural business success.

This paper examines the role that learning orientation plays with respect to entrepreneurial orientation, market orientation, and, ultimately, the performance of small and medium-sized enterprises SMEs. Previous research indicated mixed findings in regards to the relationship of these strategic orientations and firm performance. Instead of just direct influences to performance, we examine if learning orientation is an antecedent to market and entrepreneurial orientation. We suggest that in this way, their influence to SME performance would be more accurately predicted. We argue that learning orientation reflects the overall values of the organization, whereas entrepreneurial and market orientations are more action-oriented firm behaviors. Learning orientation would likely set the stage for the requisite actions implied in market and entrepreneurial orientation. Direct effect and mediated effects hypotheses between these strategic orientations are tested on a sample of SME manufacturing firms and their performance. Findings indicate that learning and entrepreneurial orientation directly influence SME performance. However, when learning orientation and its effects are mediated by market and entrepreneurial orientation, direct effects disappear when testing this model. The study offers insight into relationships between various strategic orientations, as to how and when they might influence SME performance.

This study investigates whether and how bricolage- and ingenieuring-type of approaches are used in successful social ventures in the learning/education sector across three different contexts (Brazil, South Africa and the US). We employ a partially grounded theory approach to examine the profiles of Ashoka fellows and find that despite the vast differences in their local environments, successful social entrepreneurs engage in similar bricolage processes in three domains of value creation: they tend to refuse limitations imposed by the environment, utilize resources in new and innovative ways, and engage a wide range of stakeholders as partners. Additionally, successful social entrepreneurs avoid just “making do”; instead, they rely on ingenieur-type of approach in their operational process to create and establish replicable systems to fulfil their social vision. We discuss the remarkable consistency in the approaches utilized by successful social entrepreneurs across the three countries from the perspective of theory and practice.

Based on a sample of 104 firms in the Czech manufacturing sector that engaged in internationalization into developed markets, our study examines the relationship between reliance on international networks and early internationalization by Czech manufacturing SMEs. Our findings indicate that while, as expected, reliance on international networks facilitates early internationalization, the relationship is contingent on firms' emphasis on technological innovation and perceived environmental hostility. Implications of our study findings from the standpoint of theory, practice, and future research are discussed.

Many firms competing across borders use acquisitions to gain the knowledge and capabilities that reside in target firms. Assessing and valuing knowledge in the international context is complex and frequently error-prone. The international acquisition literature has not adequately addressed the difficulties of valuing knowledge, the costs associated with acquiring knowledge, the factors behind escalating bids to acquire knowledge, and the impact of knowledge acquisitions on returns. We conceptually explore several key dimensions that influence the assessment and valuation of knowledge and develop propositions positing the effects of predictor variables and moderators on knowledge assessment and valuation in cross-border acquisitions.

Corrigendum to ‘‘The influence of international networks on internationalization speed and performance: A study of Czech SMEs [Journal of World Business 45 (2010) 197–205]’’ Martina Musteen *, John Francis , Deepak K. Datta b College of Business Administration, San Diego State University, 5500 Campanile Dr., San Diego, CA 92182-8238, United States Department of Management, College of Business Administration, University of Texas at Arlington, Arlington, TX 76019, United States

This study examines social innovation across three countries (Brazil, South Africa and the US) and contrasts bricolage-type and ingenieur-type of processes used in growing these ventures. We find that social entrepreneurs engage in similar bricolage processes across these countries in several domains of their operations. Social entrepreneurs tend to refuse the limitations imposed by environment, use resources in new and innovative ways and engage a wide range of stakeholders in founding and growing their ventures. However, social entrepreneurs avoid “making do”, instead they are extremely purposeful in their plans, designs and actions. We discuss our contribution to the social entrepreneurship literature.

Drawing on social capital theory and the international entrepreneurship literature, we develop hypotheses relating the structural, cognitive and relational aspects of the international network of SME CEOs to two internationalization outcomes – speed and performance. The study is based on a sample of 155 Czech SMEs covering a broad range of manufacturing industries. Our findings indicate that firms sharing a common language with their international ties are able to internationalize faster than firms that do not share a common language. Moreover, we observe that geographically diverse networks contribute to superior performance. Extensive reliance on personal contacts hinders the performance of the first international venture.

Organizations are often encouraged to learn from the failures of others. However, failures can be extremely complicated and multifaceted, defying clear cause attribution. Learning organizations face challenges in adopting and implementing the lessons of such failures and many times are unable to appropriately correct the root causes. Using a grounded theory approach, the authors present a learning case by Major League Soccer (MLS) from its failed predecessor-the North American Soccer League (NASL), depicting patterns of learning in four aspects: control, foreign players, media relationships, and financial viability. The authors propose a two-stage process model of vicarious learning from failure based on two fundamental processes: cause attribution and lesson implementation.

At the U.S.–Mexico border, small and medium sized enterprises (SMEs) are embedded in dual natured institutional and cultural contexts that share common functional and morphological characteristics. In this context firms are challenged by moving from one organizing template to another as embedded network influences constrain and enhance strategic outcomes. We develop and test a model of the impact of embeddedness components including social capital, personal relations and economic interaction on firm outcomes. Our results indicate that these components combine to influence the development of valuable resources and firm adaptation. We find that resources and adaptation significantly relate to SME performance.

The process of foreign direct investment (FDI) is inherently uncertain as decisions surrounding investments are impacted by fragmented environments which offer contested views as to appropriate actions.We propose a multi-level organizing framework of institutional influences on FDI and examine the differential effect of these forces at two points in time: Prior to a first investment and upon subsequent investments.We posit that upon initial entry, firms are impacted primarily by coercive host country pressures, industry mimeticism, and internal firm norms. We expect these influences to change on subsequent entries with normative forces having the most salience.

PurposeThe purpose of this paper is to understand the nature of joint action between firms, and to examine how interfirm linkages impact the development of information systems that impact joint action. The research also examines how economic dependence impacts joint action or joint activities between firms. While the importance of interfirm relations has been widely acknowledged, the relationships between buyers and suppliers can vary widely on the amount of joint action they undertake with each other.Design/methodology/approachUsing structural equation modeling, the authors test a model of influences on joint action that incorporates elements of social norms that develop between partners, their economic dependence on each other, and a coordination mechanism of shared information systems.FindingsThe findings indicate that joint action is influenced indirectly by some elements of social exchange, and instead is directly impacted by economic dependence and information systems. Social norms, specifically commitment, do impact the development of shared information systems.Research limitations/implicationsThis is a single industry study of automotive parts and accessories firms. Care should be taken in generalizing these findings to firms in similar settings – relatively small suppliers to larger assemblers or manufacturers.Originality/valueThe value of this research is to help understand the elements of interfirm relations, their impact on information systems, the overall impact of these on joint action or joint activities between firms, and the role of economic dependence.

In buyer–supplier relationships, effective partnerships require mutual adaptation to execute strategies effectively. Using LISREL, we test a model of relational exchange factors that includes dependence, joint action and trust and their influence on the mutual adaptation of supplier and buyer firms in the U.S. automotive industry. The results of the study indicate that both economic and social dimensions of the relationship impact mutual adaptation, but that these two are not necessarily complementary. Specifically, supplier adaptation is negatively impacted by trust between supplier and buyer, but positively impacted by dependence and joint action. Buyer adaptation, on the other hand, is positively impacted by trust between the two, joint action and the adaptation undertaken by the supplier. The negative relationship between trust and supplier adaptation may be symptomatic of deeper issues in the U.S. automotive industry that should merit concern.

Purpose To test the ability of situational variables, manageable pre‐decline resources, and specific firm responses to decline to classify performance outcomes (turnaround vs non‐turnaround) in declining firms. Design/methodology/approach Using a longitudinal methodology and a multi‐firm sample, the paper studies the relative role of situational factors concerning the environment and a firm's decline, along with various internal resources and strategies that can enable a firm to recover from decline. Findings The results indicate that contextual factors such as the urgency and severity of decline, firm productivity and the availability of slack resources, and firm retrenchment can determine the ability of sample firms to turnaround. Overall, factors under the control of managers contribute more to successful turnarounds than situational characteristics. Research limitations/implications This study does not identify the exact cause of firm decline. The authors believe this is beyond the scope of this multi‐firm study. Originality/value This study contributes to the existing research by theoretically explicating and empirically testing the influences of multiple situational and organizational factors on turnaround outcomes. While several studies have investigated conceptually unique sets of actions applied by managers attempting to turn around declining firms, this paper integrate these actions as they can often impact each other and the eventual turnaround. The authors believe their research design affords a more holistic view to the turnaround process. In order to direct executives efforts, the findings are summarized into some practical applications.

ABSTRACT A number of arguments are presented that propose a theoretical relationship between a SME's environmental perceptions, performance, and competitive approach with their motives for internationalization. Data from 176 firms were used to test these relationships. The findings suggest that firms pursuing internationalization proactively are mainly influenced by favorable perceptions of their environment and their current performance. In addition, SMEs using a differentiation strategy based on unique marketing skills in conjunction with these circumstantial influences were more likely to pursue internationalization proactively. Implications and directions for future research are addressed. INTRODUCTION During the last two decades of the 20th century, we have witnessed dramatically improved international communication and information networks, significant technological advances, falling barriers to international trade, and an increased global perspective to business activities. These changes create an environment in which internationalization is more feasible and potentially attractive to small businesses and entrepreneurial start-ups (Brush, 1995). The barriers to international business that historically favored large firms with the requisite resources have been lowered substantially. Since small- and medium-sized enterprises (SMEs) comprise the vast majority of the population of firms in the US, and barriers to internationalization are falling, increasingly researchers are examining SME internationalization issues (e.g. Calof, 1993; Campbell, 1996; Czinkota, 1982; Leonidou & Katsikeas, 1996) and international entrepreneurship (e.g., Brush, 1995; Oviatt & McDougall, 1994; Reuber & Fisher, 1997). In spite of these efforts, there is much to examine and understand with respect to SME internationalization activity. Strategies on how to compete in markets and the type of resources being utilized to achieve competitive advantage have already been determined and are being utilized in domestic markets. The decision to internationalize adds a layer of complexity to the strategy of SMEs. While there has been research on factors influencing internationalization, there has been little effort to examine internationalization motives as they relate to, as well as are influenced by, their other ongoing strategic decisions and processes. Therefore, the purpose of this paper is to examine internationalization motives within the context of SME's. Specifically, what impact do contexts, such as perceptions of the macro environment and the firm's recent performance, have on an SME's internationalization motives? In addition, how do different types of competitive strategies influence an SME's motivations as they undertake international trade? Lastly, is the relationship between these strategies and internationalization motivations influenced by the different contexts in which an SME finds itself? The paper first provides theoretical development for internationalization motives and specifies relationships between and among the variables in formally stated hypotheses. The second section of the paper discusses the methodology used to test the hypotheses. Lastly, the results are presented and we conclude with discussion, interpretations, and directions for future research. The intention of this research is to contribute to the understanding of SME internationalization motivations in the context of the macro environment, performance and competitive strategies. THEORETICAL DEVELOPMENT A number of scholars have investigated the forces stimulating the firm's decision to initiate, develop, or sustain international operations. For some of them, the motives, incentives, triggering cues, and attention evokers are among the most dynamic and critical elements of the internationalization process in that they provide the real driving force behind the firm's expansion into international business (Wiedersheim-Paul, Olson, & Welch, 1978). …

This paper investigates the impact of a cancellation of a merger and acquisitions on the target firm. Using data from 1982 through 1992, the study examines the returns of sample firms concerning the announcement of a merger or acquisition cancellation. The results of this study suggest that the cancellation of an acquisition negatively impacts the market assessment of the firm around the announcement day. However, the findings suggest that the overall impact of the announcement, regardless of the cancellation, results in a significantly positive increase in value for the target firm.

The article examines the mutual adaptations by firms that take place within the context of dependence, communication, joint decision-making, trust and commitment. Adaptation is of two kinds: supplier adaptation and buyer adaptation. Interorganizational trust is the extent to which organizational members have a collectively held trust orientation toward the partner firm. For the research setting, a national sample of U.S. automotive parts and components industries were used. Data for the study were collected using a self-administered questionnaire. Path analysis was used to test the causal model to the extent the observed variables were representative of the latent constructs of the proposed model. As expected, dependence impacts supplier adaptation. Joint action and buyer adaptation are associated because of the high degree of operational coordination required once adaptation has occurred. Productivity gains in value chain are possible when firms are willing to make transaction-specific investments. Trust acts as a major mitigating factor to reduce risk. If the relationship is to go beyond the core economic dimension, then sociological factors become important. Communication, commitment and trust constitute the sociological dimension of the relationship.