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Southeastern University. Editorial content is controlled by Nova Southeastern University, a private, not-for-profit University in Fort Lauderdale, Florida.
The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

Volume 19, Number 2

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Printed ISSN: 1077-1158 PDF ISSN: 2326-3709

Journal of Applied Management and Entrepreneurship

Jane W. Gibson, Editor Nova Southeastern University

The Journal of Applied Management and Entrepreneurship is owned and published by Nova Southeastern University. Editorial content is controlled by Nova Southeastern University, a private, not-for-profit University in Fort Lauderdale, Florida. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

Editorial Review Board Jane Whitney Gibson, Editor Nova Southeastern University

Fred Luthans University of Nebraska

Barry Barnes, Executive Interview Co-Editor Nova Southeastern University

Terrell Manyak Nova Southeastern University

John James Cater III, Executive Interview Co-Editor University of Texas at Tyler

Richard T. Mowday University of Oregon

Steven Harvey, Production Editor Nova Southeastern University

Bahaudin G. Mujtaba Nova Southeastern University

Lam Nguyen, Book Review Editor Bloomsburg University of Pennsylvania

Jennifer D. Oyler Texas A&M University—Commerce

Kathryn M. Bartol University of Maryland—College Park

Stephanie S. Pane Haden Texas A&M University—Commerce

Arthur G. Bedeian Louisiana State University

John A. Parnell University of North Carolina—Pembroke

Shawn Carraher Indiana Wesleyan University

Peter B. Petersen Johns Hopkins University

Russell Clayton University of North Carolina at Asheville

Lyman W. Porter University of California—Irvine

W. Jack Duncan University of Alabama at Birmingham

Robert Preziosi, Founding Editor Nova Southeastern University

Robert Ford University of Central Florida

Brandon Randolph-Seng Texas A&M University—Commerce

Regina A. Greenwood Nova Southeastern University

Shelley Robbins Capella University

Mario Hayek Texas A&M University—Commerce

Joseph C. Santora ENPC, School of International Management

John Humphreys Texas A&M University—Commerce

Sonia Taneja Texas A&M University—Commerce

Roland E. Kidwell University of Wyoming

Dana V. Tesone University of Central Florida

Donald F. Kuratko Indiana University

David D. Van Fleet Arizona State University

David Lamond Victoria University

Alex Williams Texas A&M University—Commerce

Franz Lohrke Samford University

Daniel A. Wren University of Oklahoma

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Table of Contents A Message from the Editor ............................................................................................................. 1  Leading Aesthetically: Insights from the Founders of the San Antonio Conservation Society ..... 3  Stephanie S. Pane Haden, Texas A&M University-Commerce  Sara Diaz, Texas A&M University-Commerce  John H. Humphreys, Texas A&M University-Commerce  Mario Hayek, Texas A&M University-Commerce  “I’m Loving It!” What Makes the Successful Entrepreneur Affectively Committed to  Entrepreneurial Performance? ...................................................................................................... 27  Rahayu Tasnim, Netherlands Maritime Institute of Technology  Salleh Yahya, Universiti Teknikal Malaysia Melaka, Malaysia  Muhammad Nizam Zainuddin, Multimedia University, Malaysia  Factors Affecting Internationalization Decision Making in Family Businesses: An Integrated Literature Review.......................................................................................................................... 53  Saeed K. Alkaabi, Abu Dhabi University  Christopher Dixon, Abu Dhabi University  Beyond the Organizational Bounds in CE Research: Exploring Personal and Relational Factors in a Flat Organizational Structure ................................................................................................. 78  Deborah V. Brazeal, California State Polytechnic University, Pomona  Mark T. Schenkel, Belmont University  Suresh Kumar, Nexage Technologies USA Inc.  Investigating the Entrepreneurial Attitudes of African Americans: A Study of Young Adults ................................................................................................................................................. 10707  Shanan G. Gibson, East Carolina University  Michael L. Harris, East Carolina University  Patrick D. Walker, Lindenwood University  William C. McDowell, East Carolina University  Executive Interview .................................................................................................................... 126  Learning from the CEO of Electro Imaging Systems, Inc.: A Conversation with Qasim Tarin 126  Belal A. Kaifi, Trident University International The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Yalda Tarin, University of California, Davis  Idea to Invention: What You Need to Know to Cash in on Your Inspiration ............................ 133  Dr. Hayden Wimmer, Bloomsburg University  Public Support of Innovation in Entrepreneurial Firms .............................................................. 135  Dr. Daniela Feenstra, Penn State University  Leadership 2030: The Six Megatrends You Need to Understand to Lead Your Company into the Future .......................................................................................... 137  M.J. Park, Bloomsburg University of Pennsylvania 

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A Message from the Editor It is my pleasure to welcome you to the April 2014 issue. We begin this issue with an article by Stephanie Pane Haden, Sara Diaz, John Humphreys, and Mario Hayek, “Leading Aesthetically: Insights from the Founders of the San Antonio Conservation Society”. The article cites the increasing interest in what the authors call “the artful perspectives of leadership” and makes progress in developing aesthetic leadership constructs. I personally have been interested in this topic since taking a summer seminar with Warren Bennis a few years back on “leadership as a” performing art,” and find their work timely and fascinating. Pane Haden and colleagues use a case study about the San Antonio Conservation Society to provide a conceptual framework for studying aesthetic leadership and provide both practical implications and ideas for future research. Next, Rahayu Tasmin, SallehYahya, and Muhammad Nizam Zainuddin present “I’m Loving It! What Makes the Successful Entrepreneur Affectively Committed to Entrepreneurial Performance?” We are happy to welcome these authors, who represent institutions in the Netherlands and Malaysia, into our rapidly expanding international cadre of contributors. Their research focused on 6 in-depth interviews using interpretive phenomenological analysis to investigate the concept of affective commitment to superior entrepreneurial efforts. Their finding that affective commitment is a key component of entrepreneurial performance leads them to make recommendations involving curricular issues in entrepreneurship programs. Our third article, “Factors Affecting Internationalization Decision Making in Family Businesses: An Integrated Literature Review,” by authors Saeed Alkaabi and Christopher Dixon, both from Abu Dhabi University, presents an extensive literature review focused on “identifying those factors that affect internationalization decision making in family businesses.” They examined nine factors, some of which effect the decision to internationalize in a positive manner and some in the reverse. These nine include: risk aversion, financial capital, human capital, family involvement, family business characteristics (such as size, products, and location), networks and collaborative relationships, family involvement in decision making, ownership structure, governance, and family generational issues. Deborah Brazeal, Mark Schenkel, and Suresh Kumar’s article, “Beyond the Organizational Bounds in CE Research: Exploring Personal and Relational Factors in a Flat Organizational Structure,” follows. The authors focus on corporate entrepreneurship (CE) in a flat organizational structure, citing the preponderance of such studies done with hierarchical organizations. In this article, the authors instead suggest a model of CE in flat organizations using the elements of pro-entrepreneurial organizational characteristics, LMX theory, creative self-efficacy, and innovative behavior. The final article by Gibson, Harris, Walker and McDowell is entitled “Investigating the Entrepreneurial Attitudes of African Americans: A Study of Young Adults.” The authors surveyed the entrepreneurial attitudes of 93 business students at Historically Black Colleges and The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Universities using the Entrepreneurial Attitudes Orientation Scale. They found these contemporary students had a decidedly higher interest in entrepreneurship than those of the original validation study. Discussion of these findings is augmented by suggestions for further research. Following these five articles, Executive Interview Co-Editors, Barry Barnes and Jim Cater have provided an interesting interview written by Belal Kaifi and Yalda Tarin who collaborated with Qasim Tarin, CEO of Electro Imaging Systems. Qasim is both a business owner and business developer, spending a good deal of his time helping to rebuild the economy of Afghanistan. Qasim shares with us his thoughts on leadership and motivation in a multigenerational workforce. The April issue concludes with three book reviews that we hope you will find interesting. First, Hayden Wimmer reviews Patricia-Nolan Brown’s 2014 book, Idea to Invention: What You Need to Know to Cash in on Your Inspiration. Next, Albert Link’s book, Public Support of Innovation in Entrepreneurial Firms, is reviewed by Daniela Feenstra. Finally, Leadership 2030: The Six Megatrends You Need to Understand to Lead Your Company into the Future, written by George Vielmetter and Yvonne Sell, is reviewed by M. J. Park. I hope you enjoy reading this issue of JAME; as always I can be reached for comment at [email protected] Jane Whitney Gibson, Editor Ft. Lauderdale, FL

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Leading Aesthetically: Insights from the Founders of the San Antonio Conservation Society Stephanie S. Pane Haden, Texas A&M University-Commerce Sara Diaz, Texas A&M University-Commerce John H. Humphreys, Texas A&M University-Commerce Mario Hayek, Texas A&M University-Commerce Executive Summary While scholarly interest in artful perspectives of leadership seems to be on the rise, research efforts toward conceptualizing such perspectives are still in the early stages of development. As a result, there have been calls for more examinations of artistic leaders and further development of aesthetic leadership constructs. A review of the extant literature, however, reveals no broad conceptual framework for leading aesthetically. In the attempt to fill this gap, grounded in emerging theories of leadership as art, we examined the historical case of the San Antonio Conservation Society and its prominent artist-leaders, Emily Edwards and Rena Maverick Green, to represent a hermeneutic approach to authentic aesthetic leadership. Introduction Rena Maverick Green and I on March 22nd, 1924, planted an acorn that today has grown into a large spreading live oak tree. Neither of us could have done it alone, but she had the experience and I had the time, and everyone we invited to join with us had accepted. It was as artists that we organized and we asked artists and lovers of art to join with us to save what was distinctive of San Antonio. (Emily Edwards, March 22, 1979) While scholarly interest in artful perspectives of leadership has flourished (Barry & Meisiek, 2010), research development of these concepts remains at a nascent stage (Springborg, 2010). Assorted fusions of art and leadership have appeared in the past decade in practitioner (e.g., Green, 2004; Fisher, Jr., 2004) and academic (e.g., Hansen, Ropo, & Sauer, 2007; Taylor & Ladkin, 2009) venues, though many seem to embody rather awkward amalgamations. As a result, numerous authors have called for more examinations of artistic leaders (e.g., Barnes, Humphreys, Oyler, Pane Haden, & Novicevic, 2013; Ladkin & Taylor, 2010; Novicevic, Humphreys, Buckley, Cagle, & Roberts, 2011) and further development of aesthetic leadership constructs (Bathurst, Jackson, & Statler, 2010; Biehl-Missal, 2010). Yet, a review of the extant literature reveals no broad conceptual framework for leading aesthetically. Developing such a framework is important for the advancement of aesthetic leadership practices and the development of aesthetically-aware leaders. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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In an attempt to fill this gap, and heeding the call for more consideration of nontraditional groups and leaders (Peiro & Melia, 2003), we analyzed the historical case of the San Antonio Conservation Society (SACS) and its prominent artist-leaders, Emily Edwards and Rena Maverick Green. Grounded in emerging theoretical concepts related to the artist-leader and aesthetic leadership, we reason that an examination of these aesthetically-aware leaders who actually exhibited authentic aesthetic leadership is warranted. We begin by describing our assumptions of logic and historical method of interpretation. To provide appropriate historical context, we then chronicle the establishment of SACS. As shown by the beginning quotation, any discussion of SACS has Emily Edwards and Rena Maverick Green inevitably entwined, so their inspirational histories follow. Next, we review the literatures related to the theme of leadership as art and aesthetic leadership. Finally, grounding our interpretations of the historical case in aesthetic leadership theories, we present a hermeneutic approach to authentic aesthetic leadership. Assumptions of Logic and Historical Approach When theory is at a nascent phase, studies of unique cases can be very powerful; delivering more compelling insights than broad empirical studies can offer (Siggelkow, 2007). Consequently, historical case studies can be particularly beneficial as inspiration for the extension of theory (Shamir, 2011) by providing interpretive evidence prior to empirical research (Eisenhardt & Graebner, 2007). Accordingly, the case of SACS, with its unique artist-leaders, was not randomly selected (see Siggelkow, 2007), as we reasoned it offered compelling insights with regard to leading aesthetically. Historical case research requires that authors present clear procedures and precise language so that readers may evaluate the persuasiveness (Siggelkow, 2007) and plausibility (Weick, 1989) of the interpretations of case data (Benjamin, 2006). As we applied an interpretivist approach to the archival data, we presumed Bevir’s (2002) philosophy of postfoundational intentionalism, capturing not only the intent of case subjects but also indicative meanings extending from the original contextual intent of the documented language. Considering data from this perspective allows researchers to “act as translators explaining the people of the past to us today using our own personal lens of discovery” (Novicevic, Harvey, Buckley, Brown, & Evans, 2006, p. 64). To conduct our research, we first examined the background material and excerpts available in Fisher’s (1996) book, Saving San Antonio: The Precarious Preservation of a Heritage, which chronicled the pioneering efforts of the San Antonio Conservation Society. Next, we analyzed the primary data available at the Archives and Special Collections Research Center of the San Antonio Conservation Society Foundation Library. These archives contained numerous documents, artifacts, newsletters, clippings, rare books, periodicals, and minutes associated with the founding and growth of SACS, as well as an anthology of society presidential papers, including the collections of Emily Edwards and Rena Maverick Green. Subsequently, we The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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also examined the Rena Maverick Green Papers, 1924-1959, which are housed at the Briscoe Center for American History at the University of Texas at Austin. Although more limited in scope, this collection contained a modicum of additional data in the form of correspondence, minutes, speeches, literary productions, broadslides, and clippings. Our analysis of the archived materials was fundamentally an ethnomethodologicallyinformed, sociohistorical archival approach. An ethnomethodologically-informed perspective requires researchers to be aware of the principles of ethnomethodology while accepting that exacting adherence is impractical given a specific case (Iszatt-White, 2011). This approach seemed to be fitting for the present research endeavor because “aesthetic methods share much with ethnographic methods” (Taylor & Hansen, 2005, p. 1225) and such ethnographic methods can be effectively utilized in order to understand aesthetic concepts (Letiche, 2000). Sociohistorical archival techniques oblige researchers to examine archived documents with respect to the context in which they were created to provide social science interpretations through applicable passages that relate to the theoretical themes guiding the archival research (Novicevic et al., 2011). In order to ascribe specific meanings to the recorded data, we documented relevant excerpts, relating them to each other and to the aesthetic leadership impressions to which they would be theoretically related (see Jones et al., 2012). Since our attempt was to offer a comprehensive conceptual framework inspired by the case, we follow the suggestion of Siggelkow (2007, p. 22) and “start with the case and then focus on theory.” The San Antonio Conservation Society The San Antonio Conservation Society was founded in 1924 by two civic-minded women, Emily Edwards and Rena Maverick Green. While the formation of conservation societies was not uncommon across the United States at this time, a society created for the purpose of preserving the historical landmarks that made the city of San Antonio beautiful was unique. Many of the conservation societies that emerged in America in the early part of the twentieth century were founded by women who typically spearheaded preservation efforts that focused on patriotism and the remembrance of predecessors (Hosmer, 1965). We posit that the preservation efforts of Edwards and Green were motivated by something different because they were artists; they were trying to preserve the cultural heritage of their beloved city and all of the aspects that made it aesthetically beautiful. The San Antonio Conservation Society was the first conservation society in the United States to fight for the preservation of the historic and artistic man-made environment in addition to the natural environment (Fisher, 1996). In the winter of 1924, in front of the city’s old Market House building (which was slated for demolition to accommodate street-widening efforts), Edwards and Green met for the first time (Fisher, 1996). After sharing their mutual desire to save the Market House, they decided that they needed to act (Emily Edwards OHT, July 24, 1971, pp. 3-4, 7). Based on her past experience as chairman of a local suffrage group, Green realized that the two of them could protest as individuals, but their efforts would garner little attention (Emily Edwards OHT, July The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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24, 1971, pp. 3-4, 7). However, if they organized and involved their friends, they might actually be able to exercise some influence (Rena M. Green Collection Box 2D222; Speeches; No Date, No Place Listed). Thomas Franklin, a local attorney and friend of Mrs. Green, advised them to recruit like-minded individuals, hold a meeting, and nominate members to serve in the various posts of the organization (Emily Edwards OHT, July 24, 1971, p. 4). On March 22, 1924, in the studio of Emily Edwards, thirteen women gathered (Fisher, 1996), Emily Edwards was elected president, and the San Antonio Conservation Society was born (Minutes, March 22, 1924). The original society consisted of “women interested in the preservation of all those things characteristic of San Antonio, things of historic as well as aesthetic value - losing which, San Antonio loses local color and atmosphere” (Minutes, March 22, 1924). The group engaged in a variety of artistic activities in their efforts to preserve different elements of their city, including the performance of a puppet show (in effigy) to shame city commissioners into action. While they were unsuccessful in their first mission of saving the old Market House, eventually the group was able to establish the city’s first museum, save some of the Spanish missions, and elicit the natural beautification of local parks and the river (Fisher, 1996). The society has grown to a membership of over 2,570 men and women who continue Emily Edward’s and Rena Maverick Green’s fight for the preservation of the beauty of the city and region (www.saconservation.org). Emily Edwards Emily Edwards was only six years old when her mother passed away and she was nine when her father brought her and her three sisters to live at the Ursuline Convent. She was a precocious child and her life was “punctuated by high adventure of lively escapades and livelier imaginations within the convent’s cloistered walls” (Gordon, 1982, p. 1). Emily and her sisters were provided a well-structured education, but the importance of playing musical instruments was also stressed (Gordon, 1982). After graduating high school, Emily went to live in Chicago with an aunt who was greatly impressed with her artistic talent. She made sure that Emily received the best training available at The Chicago Art Institute and helped to get her involved with the program at Hull House (Goldsmith, 1981). Following her experiences in Chicago, Emily returned to San Antonio and taught art at Brackenridge High School for two years, but later revisited Chicago to share her art with the children at Hull House (Goldsmith, 1981). She spent many of her summers doing research that ultimately resulted in a book entitled Painted Walls of Mexico (Goldsmith, 1981). Even in her 90s, Emily Edwards exercised her artistic abilities while writing a biography of Francois Giraud (Goldsmith, 1981). Clearly, art influenced her life from early childhood right to the time of her death in 1980. Her love of art exerted a great impact on those around her as well, as her niece Floy Fontaine Jordan recalled in an interview that Aunt Emily “had great influence on all of us, you couldn’t hardly be around Emily without being inspired to think of art or talk of art.” Emily also “had the capacity to make wonderful friends that she kept forever” (Schlosser, 1991, p. 10). Among those friends was Rena Maverick Green (Schlosser, 1991).

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Rena Maverick Green Rena Maverick Green, cofounder of the San Antonio Conservation Society, also possessed a passion for art that emerged early in her childhood. In a letter that we suspect she had written to her cousin Routez Minor, she recalled a drive that she took with her father near the San Jose Mission and stated “he was fond of artistic things and beautiful things, and so was I.” “We stopped to admire this lovely building especially remarking with pleasure on the brilliant coloring still intact on the beautiful front (Color always meant very much to me)” (Rena M. Green Collection, Box 2D222). During an interview, her two daughters, Rowena Green Ferstermaker and Mary Vance Green, spoke of their mother as an artist who studied watercolor and oil and how she stressed the importance of having members of the Conservation Society who were fellow artists, making the interviewers see that Rena and the members of the Society “had a sense of aesthetics and appreciated beauty” (Odom & Young, 1984, p. 29). Ferstermaker specifically commented on how deep her mother’s appreciation of art dwelled when noting “… at that time she thought it was unnecessary to have something that hadn’t been authentic” (Odom & Young, 1984, p. 29). Emily Edwards recalled the value of her artistic vision and appreciation of that which was aesthetically good (Emily Edwards letter, June 8, 1959). These artistic qualities and mindset facilitated her ability to organize and lead the Conservation Society and battle for the preservation of the unique beauty found throughout the city of San Antonio. Emily Edwards and Rena Maverick Green: Artist-Leaders Evidence suggests that Edwards and Green were both artists and leaders. Edwards attended art school where she honed her artistic talents, taught art at a San Antonio high school, and even wrote books (Goldsmith, 1981). More importantly, “art was a most important element of Miss Emily’s being” (SACS Resolution by Mrs. William E. Parrish [President], February 25, 1980).With respect to her leadership, a newsletter publication remembering Edwards noted, “This was a new idea, trying to preserve the uniqueness of San Antonio. What great courage Emily Edwards showed in accepting the responsibility of this leadership!” (“In Memory of Emily Edwards: 1888-1980” The Newsletter, April 1980, p. 3). Emily wrote about her “shepherding” (letter to Vivian, February 28, 1979) the society, though she noted it was only for a while because she had to “strengthen her art.” Green’s artistic and leadership qualities were also exposed by the archival material. For example, when one of the past presidents of SACS, Vivian J. Hamlin, commented on Green, she stated that she was an “artist, sculptress, and writer” (Green, Rena Maverick Papers 1924-1959). With respect to her leadership, it was Green who suggested that they needed to organize in order to gain influence (Rena M. Green Collection Box 2D222, p. 7). Beyond simply being artists and leaders, though, we argue that Emily Edwards and Rena Maverick Green fit the developing description of artist-leaders (see Woodward & Funk, 2010). De Pree (2008) asserted that leadership as an art form embodies delight in beauty and a desire for justice. Clearly, the lives and work of these exceptional ladies demonstrate these ideals (see Fisher, 1996). Moreover, an examination of the words and deeds of these prominent artistThe Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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leaders in influencing the described beautification efforts resonates with many of the conceptual arguments regarding artistic leaders and aesthetic leadership in the extant literature. Aesthetic Leadership While interest in artful leadership is emerging in the literature (Barry & Meisiek, 2010), we acknowledge that the general notion of leadership as an art was espoused by some of our most prominent management thinkers. For example, Barnard (1938, p. 235) declared that leadership is “… a matter of art rather than a science, and is aesthetic rather than logical.” Schein (2005, p. 299) spoke about the importance of trusting “artistic instinct,” something that Weick (2007, p. 15) echoed by suggesting that leader’s “drop the tools of rationality” as the only suitable apparatus for problem-solving (see Ladkin & Taylor, 2010). As the world becomes increasingly ambiguous and complex, researchers have suggested that new forms of leadership are necessary for successful navigation through immensely challenging conditions and that broadly incorporating ‘aesthetics’ into a leader’s approach might be a useful way to accomplish this feat (Woodward & Funk, 2010). “Leadership that is fluid and counter-intuitive; leadership that breaks the shackles of linear logic and vertical thinking; leadership that engages lateral thinking” is needed in today’s complex organizations where uncertainty, conflict, and controversy are the norm (Fisher, 2004, p. 6). It has been suggested that “leadership can learn from art” and that art, in both general and more specific forms, “can immensely enrich the language with which we talk about leadership” (Springborg, 2010, p. 244). Botanski and Chiapello (2005) noted that there is growing interest is the concept of aesthetics and how it relates to the disciplines of management, leadership, and organizational behavior. As identified by Pruetipibultham and Mclean (2010, p. 4), researchers (e.g., Adler, 2006; Bartunek & Carboni, 2006) have proposed “there is a benefit from the crossfertilization of the fine arts, management, and nation building in the development of creativity, commitment, and innovation.” In today’s organizations, there is a growing trend toward utilizing artists and artistic processes to develop strategies and maneuver the daily management and leadership of these organizations (Adler, 2006). This perspective has visibly moved beyond the domain of academic research, as noted by Seifter (2004, as cited by Adler, 2006, p. 488): Clearly, many business leaders have concluded that there are valuable lessons to be learned from the experiences and insights of artists, lessons that can help their companies stay profitable in these challenging times …. This represents a dramatic shift in the boundaries that traditionally defined experiences relevant to the business world, a shift triggered by profound technological and social changes that has transformed the culture of business over the past decade. While the concepts of aesthetic leadership and the artist-leader are in a nascent stage of development (Bathurst, Jackson, & Statler, 2010), growing interest surrounding the incorporation The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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of aesthetics into leadership may be best evidenced by a 2010 special issue of the journal Leadership (guest edited by Ladkin & Taylor, 2010) on the variations of art in leadership. Still, “It appears that the ‘art’ in the art of leadership can mean almost everything and anything” (Barry & Meisiek, 2010, p. 332). Nonetheless, those who have begun studying notions of aesthetic leadership have offered some useful and persuasive initial arguments (Ladkin & Taylor, 2010). Unfortunately, these insights are currently fragmented (Barry & Meisiek, 2010), as individual researchers have focused on limited themes for the sake of parsimony. Motifs of Aesthetic Leadership As a part of the special issue of Leadership regarding leadership as art, Woodward and Funk (2010) suggested that leaders who are able to incorporate artistry into their approaches to leadership engage in a viable response for dealing with the uncertain conditions that they face on a daily basis. These authors proposed that leaders should rely on their senses to develop plausible narratives that will help them create meaning for their followers. These artist-leaders can be developed via “an aesthetically-informed hermeneutic approach to leadership, the use of aesthetic processes as the means, and the building and holding of generative space as the context” (Woodward & Funk, 2010, p. 301). We find these conceptual pillars compelling. Hermeneutics involves seeking, questioning, interpreting, and creating or crafting meaning (Woodward & Funk, 2010). Such hermeneutic, artist-leaders craft meaning by relying on their own past experiences, as well as their pre-existing mental models, predispositions, attitudes, opinions, and imaginations (Berman, 2006; Woodward & Funk, 2010). Underlying the practice of hermeneutics are the aesthetic processes or activities that require leaders to tap into their senses in order to interpret and create meaning (Woodward & Funk, 2004). Artist-leaders seek information and engage in aesthetic processes that help them craft meaning within a generative space, which “can encompass both the internal, psychological dynamics of the artistleader and the external, social dynamics of the group” (Woodward & Funk, 2010, p. 303). Through this sense-making approach and the use of aesthetic processes within a generative space, the leader engages in an aesthetic encounter that ideally results in the creation of a plausible narrative of the world that makes sense to their followers (Woodward & Funk, 2010). The personal meaning created by the leader, which should be relevant, coherent, and valuable, is stabilized and communicated to followers (Woodward & Funk, 2010). In their guest editorial for the special issue, Ladkin and Taylor (2010, p. 235) remarked that when taken as a whole, the articles presented a “surprisingly consistent argument” of the general description and processes of the artist-leader and we concur. However, this nascent domain lacks an illustrative framework. Our analysis of these authors’ proposals yielded nine specific, recurring themes thought to be related to aesthetically-aware leaders that might potentially be incorporated into a more comprehensive framework of aesthetic leadership.

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Abandoning the Illusion of Control Leaders must avoid becoming fixated on a single perspective of a situation so that they do not overlook or discard new and potentially important information (Springborg, 2010). One potential solution is to decrease one’s reliance on how things made sense in the past and increase the value placed on a level of artistic appreciation and exploration that generate new ideas and alternatives. For example, Adler (2006) suggested that leaders cannot rely on strategic approaches that have worked in the past and that engaging in artistic processes can help leaders create new strategies. These new strategies can be effectively developed via the creativity espoused in artistic processes (Adler, 2006). The creativity derived from artistic appreciation and processes helps enable an aesthetic leader to abandon the illusion of being able to control a situation by applying yesterday’s sense-making, since what worked in the past will most often not work in the future. “You have to adapt to a [situation], moment by moment, following it rather than trying to control it” (Davis & McIntosh, 2005, pp. 178-180). “An artist is an adaptive innovator” and an artist leader can create a new landscape for an organization when reliance on the past is ineffective (Fisher, 2004, p. 5). Artistic Appreciation The level of inspiration and the degree of creativity that organizational leaders will need to create value and be successful can readily be provided by artists, through artistic processes (Adler, 2006). Artistic appreciation is one such process. It is a way of perceiving that can be applied to anything, not just art (Springborg, 2010). This process involves “receiving the direct, personal, and sensed experience provoked or initiated by a work of art,” extending beyond conceptual and analytical interpretation (Springborg, 2010, p. 245). Bathurst et al. (2010) suggested that leaders are able to motivate their followers by focusing on their perceptions of their personal senses, as opposed to more rational and objective communication. While leaders can benefit from collecting and analyzing data using their rational, conceptual, and analytical minds, utilizing the process of artistic appreciation and tapping into their senses can broaden the depth and scope of information gathered and aid them in the tasks of figuring things out and making sense of the situation they are facing (Springborg, 2010). Sense-Making as an Aesthetic Process Probing and relying on one’s senses is a vital component of aesthetic leadership. Several researchers stress the importance of using sense-making and the direct sensory experience to leading aesthetically (e.g., Barry & Meisiek, 2010; Ropo & Sauer, 2008; Springborg, 2010; Taylor & Hansen, 2005). “At the core of good art and good leadership is the ability to perceive some element of one’s own immediate experience without letting concepts and ideas about this element take one’s attention away from the senses” (Springborg, 2010, p. 243). Furthermore, Springborg (2010, p. 243) suggests that both leadership and art “are characterized by the ability to arrange conditions in a way that inspires others to also stay with their senses” and this The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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inspiration can be achieved through art functioning as a catalyst that prompts leaders to examine their felt senses or meanings. Relying on the senses and engaging in sensory experiences helps leaders, through the application of organizational aesthetics, to create, represent, convey, and understand organizational knowledge (Bartunek & Carboni, 2006). It can also help with decision making, as the decisions that leaders make are influenced by the manner in which they make sense of the situation around them (Springborg, 2010). Stabilizing and Crafting Meaning Adopting a hermeneutic perspective on aesthetic leadership (consistent with Gadamerian hermeneutics), necessitates a continuous act of meaning-making in which the leader is constantly seeking, questioning, and crafting meaning (Woodward & Funk, 2010). Gadamer (2006) proposed that understanding can be reached via a hermeneutic approach, which is facilitated by the use of language. Gadamer (1989) is also credited with introducing aesthetics to hermeneutics. Woodward and Funk (2010) explicitly described artist-leaders as Hermenauts - leaders who seek, question, interpret, and create or craft meaning. A hermeneutic process not only facilitates understanding within an individual, it also aids in the understanding of social and cultural characteristics that can be represented in artistic forms (Chang & Horrocks, 2008). Through this continuous act of meaning-making, meaning is stabilized. In an article identifying organizational storytelling as a tool for creating and crafting meaning, Taylor, Fisher, and Dufresne (2002) specifically noted that felt meaning and feelings of connectedness can be garnered through artful stories and the aesthetic experience derived from these stories. Storytelling can be employed in order to socially construct meaning for organizational members and to help those members make retrospective sense of events (Taylor et al., 2002). Reimagining Complex Problems Aesthetically-aware leaders are able to re-imagine complex problems and re-envision plausible narratives for how to approach these problems, consistent with the values of assented meaning. The creativity discussed in prior motifs (i.e., Adler, 2006) helps leaders tackle complex problems by identifying various alternatives. Also, these narratives in the vein of story-telling can function as a metaphor, an instrument, or an activity in aesthetic approaches to many organizational activities (Taylor & Hansen, 2005), including the resolution of complex problems (Pruetipibultham & Mclean, 2010). Taylor et al. (2002) demonstrated that artful storytelling could facilitate organizational learning through the impact it can have on the managerial roles identified by Mintzberg (1973). Moreover, Pruetipibultham and Mclean (2010) suggested that storytelling can be expressed through a variety of artistic forms and facilitate sense-making in organizational settings.

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Coherence of Embodied Authenticity In addition to focusing on the roles that the senses and past experience play in artistic leadership, Barry and Meisiek (2010) also introduced the concept of embodied leadership. Consistent with perspectives on embodied leadership (e.g., Sinclair, 2005; Ladkin, 2008), Collingwood (1938) suggests leadership becomes artful when it influences the imaginations of the followers, which are driven by their senses and experiences (Barry & Meisiek, 2010). “Artists dive deep into the senses and use the experience to create arrangements that can encourage and challenge others to take the same dive” and they must take this deep dive into the senses in order to be perceived as authentic and inspiring to their followers (Springborg, 2010, p. 256). In contrast to the more common tendency to focus on the behavioral aspects of leadership (i.e., motivating, facilitating, etc.), Ladkin (2008) discusses leadership as an embodied activity and examines how individuals enact the behavioral aspects. This author focused upon the aesthetic dimension of leadership and how aesthetics underlay and drive leader behavior (Ladkin, 2008). Ladkin (2008) asserted that while the concepts associated with aesthetic leadership align with charismatic (Weber, 1947) and authentic leadership (Avolio & Gardner, 2005) perspectives, leading beautifully is a distinct and unique conceptualization of leadership. In examining a specific case study, Ladkin (2008) identified three characteristics that appeared to be necessary for an individual to lead beautifully. Those who lead beautifully possess: (1) mastery of their context, domain, and selves; (2) the ability to express themselves coherently and with authenticity; and (3) a purpose or goal toward which they are leading (Ladkin, 2008). Their coherent expression must be congruent with their purpose (Ladkin, 2008), and the meanings crafted by aesthetically-aware leaders are viewed as authentic, ethical, and moral when leaders embody their true selves (Ladkin, 2008). When compared to the ways in which we gather knowledge intellectually, knowledge gained aesthetically is derived from a craving for “subjective, personal truth” (Taylor & Hansen, 2005). Pruetipibultham and Mclean (2010) also suggest that aesthetic knowledge is derived from personal truth. Zhang et al. (2011) found that authenticity and purpose, critical elements to the coherence of embodied authenticity, were confirmed to be important elements of aesthetic leadership. Inspiring Ideational Focus Springborg (2010) suggested that leaders can inspire followers to explore and rely upon their senses when they themselves explore their felt senses or meanings. Likewise, Hansen, Ropo, and Sauer (2007, p. 549) posit that “leaders must inspire through the felt meaning of the organizational vision.” Artistic leaders can communicate their vision by inciting the imagination of their followers (Fisher, 2004). Various forms of artistic expression can capture a leader’s felt experience. The utilization of different types of artistic expression can encapsulate the felt experience of an individual, but it can also help that individual communicate the felt meaning to those who work with that person (Taylor & Hansen, 2005). The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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The “aesthetic experience produces felt meaning (Courtney, 1995) or understanding” (Taylor et al., 2002, p. 315). The aesthetic felt meaning is a powerful concept, as it is capable of bypassing “conscious critical filters that individuals may apply to information as they try to make sense of events for themselves” and “there is a tendency to trust the intuitively grasped felt meaning because it is based in feeling - it feels right” and “we connect with the story because it resonates with some part of our own lived experience” (Taylor et al., 2002, p. 316). Presencing and Concretization According to Bathurst et al. (2010), two additional critical elements to the theoretical development of aesthetic leadership are presencing and concretization. These authors derived these two intertwined elements from Ingarden’s (1975) aesthetic theory. In exploring the specific case of the Hurricane Katrina crisis, the authors demonstrate how the human creativity espoused by aesthetic leadership can help leaders be more effective in dealing with uncertain crisis situations. The aesthetic phenomena of presencing and concretization are important for organizational leaders to understand. Organizations are constantly changing dynamic entities, and through the active practice of presencing, by which leaders engage in a level of creativity that helps them be fully aware of the organizational environment on a moment-by-moment basis (Ingarden, 1975), leaders can more effectively maneuver in the continuous state of flux. However, the ideas developed via presencing must eventually be transformed into concrete actions. When followers or collaborators take action in response to the ideas that emerge via presencing, concretization occurs (Hansen et al., 2007). “Both imaginative and tangible activities inform the aesthetically-aware leader through presencing the organization as a living, dynamic entity by intentional, concrete acts” (Bathurst et al., 2010, p. 317). Generative Space These eight motifs related to aesthetic leadership exist and function within a larger generative space. Ropo and Sauer (2008, p. 568) addressed the importance of space, stating that through our sensual experiences, 1) “we interact with and are connected to our environment,” 2) that “space makes and marks hierarchies, defines the borders for cultural behavioral codes and emotional norms for people,” and 3) that “leadership is constructed by behavioral and emotional norms within spaces.” While the spatial dimension of leadership rarely garners much attention (Ropo & Sauer, 2008), Woodward and Funk (2010, p. 303) argued that such generative space “allows for internal work (within self) and external work (with others).” They described this as the space where the artist-leader, as a Hermenaut, “explores, discovers, and creates” (p. 303). Thus, it is within this “imaginative apparatus” that artist-leaders can excel in extraordinarily complex environments (Woodward & Funk, 2010, p. 303). We contend that these suggested themes concerning aesthetic leadership might offer the beginnings of a more comprehensive framework. Currently, though, these proposals are disjointed. Where such fragmentation exists, Goeppinger (2002) argued that to reveal the natural The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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flow of real-world systems in complex contexts, researchers should spend more time in unabridged observation and interpretation, rather than more typical deduction. Accordingly, we observed and interpreted the words and actions of two pronounced historical artist-leaders, Emily Edwards and Rena Green, who embodied what we now refer to as authentic aesthetic leadership. Towards a Comprehensive Framework of Authentic Aesthetic Leadership Ladkin and Taylor (2010, p. 236) advised that when attempting to deal with complex contexts, “the leader is well advised to look to the artist, whose purpose throughout the ages has been to navigate unchartered territories and reveal the difficulties as well as the glories lurking within them.” So we did. In fact, we argue that the excerpts from the archival material that documented the development of the San Antonio Conservation Society, specifically the leadership of Emily Edwards and Rena Maverick Green, served as ideal qualitative data for understanding aesthetic leadership. First, these original founders of the Society were artists before they ever took on any sort of leadership role. Their labels as artists were not only selfproclaimed but also duly recognized by their peers. Second, aesthetic leadership has been recommended as a viable method for leading in uncertain and complex times (Woodward & Funk, 2010). Most would agree that the current conditions in the world are uncertain, ambiguous, and complex. The San Antonio Conservation Society was founded in 1924, a time when America was nearing the brink of entering into the Great Depression. Studying the leadership of these women, who founded an organization and led it during such dismal economic times, makes their particular case all the more relevant and informative for today’s leaders. In conducting our analysis, we found evidence of each of the aesthetic leadership themes we identified from the literature. However, based upon the case data, we judged one of these motifs - reimagining complex problems – as a likely outcome of the elements of aesthetic leadership rather than a component of the leadership process itself. Therefore, motivated by our understanding and observations of the case data (see Siggelkow, 2007), alongside the emerging conceptual arguments concerning aesthetic leadership (see Ladkin & Taylor, 2010 for an overview), we offer our interpretation of a comprehensive representation of a hermeneutic approach to authentic aesthetic leadership (Figure 1).

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Figure 1 A Hermeneutic Framework of Authentic Aesthetic Leadership

Generative

Presencing and Concretization: Aesthetically-aware leaders presence the organization as a dynamic entity by intentional acts. Concretization occurs as collaborators transform ideas into action (Bathurst et al., 2010).

Inspiring Ideational Focus: Aesthetically-aware leaders access the imaginations of collaborators through their senses. They inspire through felt meanings of an ideational focus that unfolds as it guides (Barry & Meisiek, 2010). Coherence of Embodied Authenticity: Aesthetically-aware leaders craft meanings based on embodied action. Authenticity is aesthetically determined in the embodiment of the true self that coherently expresses purpose (Ladkin, 2008). Stabilizing and Crafting Meaning: Aesthetically-aware leaders view leadership as a continuous act of meaning-making. From this hermeneutic perspective, a leader is a seeker, a questioner, and a crafter of meaning (Woodward & Funk, 2010). Sense-Making as an Aesthetic Process: Aesthetically-aware leaders probe the senses and use the experience to motivate and challenge others to do the same. The engagement of the senses becomes the basis for meaning-making (Springborg, 2010). Abandoning the Illusion of Control: Aesthetically-aware leaders abandon the illusion of control, eschewing total reliance on cognitive analysis of yesterday’s sense-making, and valuing artistic appreciation (Bathurst et al., 2010). Artistic Appreciation: Aesthetically-aware leaders use a process of artistic appreciation, rather than solely a process of collecting and analyzing data using their conceptual minds, for the task of sense-making (Springborg, 2010).

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Characterizing Emily Edwards and Rena Maverick Green as aesthetically-aware leaders was not a challenging task. These ladies clearly crafted meaning for the members of SACS. They were Hermenauts in the sense that they were far more experienced than the average woman in the 1920s. They had traveled and were educated far from their homes in San Antonio. Consistent with the hermeneutic approach (Gadamer, 1989; Woodward & Funk, 2010), the meaning that these women crafted for their followers emerged from their emotions and senses, their art and activities, and their appreciations for the arts and what was beautiful. Moreover, evidence collected in the SACS archives directly supports the major tenets of aesthetic leadership, as identified in the extant literature. We begin our representation with Springborg’s (2010) declaration of the importance of artistic appreciation to aesthetic leadership. This author proposed that leaders should have an appreciation for art and the ability to influence like-minded collaborators. The co-founders of SACS most certainly exhibited these capacities. Edwards and Green appreciated art and they recruited members who also possessed artistic appreciation. “It was as artists that we organized and we asked artists and lovers of art to join with us …" (Emily Edwards - President’s Papers; April, 1979 "The Newsletter,” p. 5). During an interview with Green’s daughters, the interviewer commented, “I can see they certainly had a sense of aesthetics and appreciated beauty,” in reference to the founders and members of the society (Odom and Young, 1984, p. 29). Emily Edwards explicitly said that potential members were invited based upon their shared appreciations of art (SACS Newsletter, September, 1966). In a February 15, 1939 letter seeking the assistance of the Most Reverend A.J. Dossaerts with a preservation effort, Green began her appeal with this acknowledgement, “As those appreciating the beautiful …” (Rena Maverick Green Papers, Box 2D222, 1929-1959). She also did not readily accept significant collaboration with those that she perceived did not reliably operate from a perspective of artistic appreciation. In a letter to Harvey P. Smith (December 3, 1937), she wrote, “Personally, please understand me I like (name withheld by the authors), but I just cite this as one instance to prove her lack of art appreciation” (Rena Maverick Green Papers, Box 2D222, 1929-1959). In our representation, we posit this artistic appreciation within the collective space (Isaacs, 1999) that Woodward and Funk (2010) labeled generative space, to signify the place where collaborators begin building identification with the goals and spirit of the group. In this space, aesthetically-aware leaders use a process of artistic appreciation, rather than sole reliance on rational data, for the task of sense-making (Springborg, 2010). This does not suggest, however, that aesthetically-aware leaders only use artistic appreciation and ignore appropriate rational analysis. For example, in a letter from SACS to the Mayor of San Antonio (May 2, 1925), the group asked that the construction of forthcoming bridges be designed for “beauty” but also engineered for “usefulness” (SACS meeting minutes). Nevertheless, this idea of not solely being “trapped by the rational” (Guve, 2007, p. 131) necessitates that aesthetically-aware leaders abandon the illusion of control (Bathurst et al., 2010). This statement differentiates aesthetic leadership from notions of postindustrial The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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leadership. Although postindustrial perspectives have also been championed as requisite for the complexities of 21st century leadership (e.g., Rost & Smith, 1992), and we comparably view aesthetic leadership as involving collaborators involved in an evolving process of leadership, postindustrial leadership is still based on rational positivism (Woodward & Funk, 2010) and an illusion of control (Mintzberg, 2004) that relies on past sense-making (Springborg, 2010). Ladkin (2008) suggested that the aesthetic dimension of leadership might be particularly important where leaders have limited positional power. In leading a volunteer organization such as SACS, Emily Edwards and Rena Maverick Green realized they never possessed the legitimate power associated with hierarchical control. In the SACS minutes (June 4, 1937), Green acknowledged that she took a specific action “without any authority …” (Rena Maverick Green papers, Box 2D222, 1929-1959). They repeatedly made attempts to preserve artifacts of beauty that were initially unsuccessful but they were not deterred, as they viewed their roles as advocates and agitators (Schlosser, 1991). They acknowledged that the ultimate outcome of collaboration was not under their control (Fisher, 1996). One particular amusing illustration of abandoning the illusion of control was Rena Maverick Green’s “Diary of Insults” (Fisher, 1996, p. 128). Her daughter recalled it as a therapeutic device where her mother would write down the insults that were cast her way by opponents and collaborators alike. It was a reminder that she was not in control and served a cathartic function by allowing her to move past the frustrations of leading (Odom & Young, 1984). This also serves as an example of how Rena Maverick Green probed her own senses as a basis for the construction of meaning. According to Springborg (2010), aesthetically-oriented leaders probe their senses and use the experience to inspire collaborators to do the same. In this sense, leaders do not control the sense-making process; rather they trust it (Springborg, 2010). Fisher (1996, p. 91) asserted that Edwards and Green understood the need to preserve the beauty of San Antonio because they felt it “instinctively.” Edwards and Green demonstrated they were able to probe their senses by engaging in numerous artistic processes and the derived sensed experiences shaped their perspectives of leadership. Woodward and Funk (2010) describe aesthetic processes as activities that engage the senses for the purpose of meaning-making. One extraordinary example of this was the famous puppet show that SACS performed before the city council. Using puppets bearing a striking likeness to each commissioner (see Fisher, 1996, pp. 4-5), having been sketched by Edwards, Green, and others at a previous council meeting, they performed a mannequin play to challenge the council members to get in touch with their senses and see the value of saving the city’s beautiful landmarks. As leaders, they were attempting to motivate using perceptions beyond rationale communication, something characteristic of Bathurst et al.’s (2010) understanding of leading aesthetically. Edwards and Green, though, realized that they must do more than encourage others to get in touch with their senses, as “a word to the wise” (Fisher, 1996, p. 7) was insufficient for effective change (Emily Edwards, April, 1979 “The Newsletter,” p. 5). Thus, the acceptance of the challenge of meaning-making to assist potential collaborators became critical to their cause. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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We show this using Woodward and Funk’s (2010) vernacular of stabilizing and crafting of meaning. According to Woodward and Funk (2010), because artist-leaders are Hermenauts (Berman, 2006), they use the experience of probing the senses to craft meaning and view leadership as a continual act of meaning-making. In effect, they use interpretive imagination to offer plausible narratives of a complex world to engage collaborators in action (Woodward & Funk, 2010). Fisher (1996, p. 7) noted just how “imaginative” Edwards and Green were as “freethinkers” (Schlosser, 1991, p. 8). Edwards herself stated that, “It is my hope to give meaning to what is there and so to help to save it all” (Emily Edwards, President’s Papers; Letter from Emily Edwards to Pinkie Martin on June 30, 1970). Indeed, her life’s work can be summed up by her efforts to craft meaning for others through her own sense-making. Upon her death, a portion of a SACS resolution (February 25, 1980) proclaimed: “Whereas, art was a most important element of Miss Emily’s being, and with an artist’s vision and imagination she saw the true … beauty of our City …, and spent her life working to save the important, valuable natural man-made elements impressing others with the validity and worth of her vision by teaching, by painting, by writing and yes, even if the form of puppetry …,” etc. Woodward and Funk (2010) argued that from a hermeneutic perspective, it is this exploration through the senses in order to craft meaning for others that is central to authenticity and places aesthetic leadership in the domain of embodied action. Furthermore, Ladkin (2008) has argued that authenticity is aesthetically determined in the embodiment of the true self that coherently expresses purpose. With respect to SACS, their purpose was unambiguous: “The purpose of this Society is ‘to co-operate in the preservation of the Missions, to conserve Old Buildings, Documents, Pictures, Names, Customs and Natural Beauty, and whatever is admirably distinctive of San Antonio’” (Emily Edwards, President’s Papers; Our Beginnings by Emily Edwards - From the organization of the San Antonio Conservation Society, March 22, 1924, to its incorporation, July, 8, 1928). Obviously, Edwards and Green consistently exhibited coherence with this purpose through their embodied action and were deemed authentic by collaborators, many of whom exhibited great enthusiasm towards that purpose (Fisher, 1996). This description of embodied leadership, as called for by Ladkin (2008), resonates well with the idea that leadership is aesthetic if it touches the imaginations of collaborators through their senses to inspire action (Barry & Meisiek, 2010). Barry and Meisiek (2010) use the term ideational focus to describe how aestheticallyaware leaders inspire collaborators through felt meanings that unfold as they guide. In other words, the vision of leadership, sensed from the experience of artistic processes and subsequently used to craft meaning to educate and motivate collaborators, continues to evolve through the interaction of all collaborators in the leadership process. This calls for leaders with the capacity to craft meanings that other collaborators may find initially unpalatable (Ladkin and Taylor, 2010), but who also relinquish control of the vision to allow for its evolution through the collaborative process. This statement is illustrated by the life’s work of Edwards and Green (see Fisher, 1996). Various passages found in the archives illustrate how Edwards and Green communicated the epiphany they experienced to others to evolve and take action. In one The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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instance, they actually promoted an essay contest to help potential collaborators to grasp the scope of the problem, while allowing the public to weigh in on how their vision could be evolved to better articulate “San Antonio’s unique spirit” (Fisher, 1996, p. 135). They were interested in real exploration rather than manipulation (see Springborg, 2010) in accepting their narrative as dogma, allowing them to remain authentic in the eyes of those collaborators (Ladkin, 2008). This relationship between collaborators enacting the process of leadership also supports the idea of presencing and concretization within aesthetic leadership (see Bathurst et al., 2010). Ingarden (1975) claimed that there is a living relationship between an artist and the creation of a work of art and those perceiving the art, all of whom engage in the act of constituting the work of art. He described this process with the interlocking elements of presencing and concretization (Bathurst et al., 2010). Bathurst et al. (2010) translated these ideas into the domain of aesthetic forms of leadership. In this sense, presencing is the creative engagement that allows artful leadership to unfold within the environment and skill of the artistleader, as well as the sensing capacity of potential collaborators. Concretization, looks at this process from the collaborator’s point of view, as they must bring the outcomes of the leadership process to fruition. Thus, aesthetically-aware leaders’ presence a group or organization through intentional acts and concretization takes place as ideas are turned into goal-oriented actions (Bathurst et al., 2010). In summary, based upon salient recurring elements in the extant literature related to artful forms of leadership, supported by the case example of Emily Edwards’ and Rena Maverick Green’s leadership of SACS, we have attempted to conceptualize a more comprehensive representation of leading aesthetically. Toward that aim, we offer a hermeneutic framework of authentic aesthetic leadership. Contributions, Limitations, and Future Research Adler (2006, p. 495) described the successful fusion of art and leadership as “hope made real.” She suggested that such aesthetically-aware leaders might have the courage to “envision possibility – to dream the big dream” and influence and inspire others to do the same (p. 495). This sentiment resonates closely with several statements from the Oral History of SACS (Schlosser, 1991), most notably, when listeners are reminded that Emily Edwards was “always encouraging us to paint big.” Likewise, we also attempted to paint big. Ladkin and Taylor (2010) pronounced ‘leadership as art’ as a new way of comprehending the world that welcomes its inherent complexity and ambiguity. These authors described aesthetic forms of leadership as both “an unattainable ideal, and a guiding talisman” (Ladkin & Taylor, 2010, p. 240). Unfortunately, without a more comprehensive framework illustrating aesthetic leadership, the concept risks being seen as only indiscriminate and inaccessible. Ladkin and Taylor (2010, p. 239) also noted that, “Rather than conducting more studies into correlations based on dubious proxies for invisible variables, ‘leadership as art’ suggests that leadership scholars should engage in critique more akin to art criticism, rather than relying on the The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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tools of logical positivism to analyze leadership practice.” We accepted this challenge by interpreting the aesthetically-aware leadership of Emily Edwards and Rena Maverick Green, as they founded and led the San Antonio Conversation Society (SACS) in the 1920s. Thus, grounded in emerging theories and the case example, we reason that our primary contribution is a comprehensive representation and elucidation of a hermeneutic framework of authentic aesthetic leadership. Although further refinement is needed, we view the framework as an important initial step if aesthetic leadership is to gain further conceptual credibility and eventually develop testable propositions (see Siggelkow, 2007). We also reason that we have contributed to those seeking representations of postheroic forms of leadership. Various authors have appealed for conceptualizations that move us beyond heroic perspectives of leadership to illustrate more postheroic paradigms (e.g., Briskin, 2011), as postheroic leadership is often crudely described as a “mindset” (Dutton, 1996, p. 7) that is “so often vaunted and so seldom seen” (Rippin, 2007, p. 209). Cohen (1997) suggested that postheroic leadership is essential in the current milieu of increased complexity and uncertainty. We also note that Woodward and Funk (2010) have made precisely the same argument for the desirability of aesthetic forms of leadership. As evidenced by the elucidation of our framework, we argue that authentic aesthetic leadership can be considered a form of postheroic leadership. In any event, our research regarding the first leaders of the San Antonio Conservation Society provides a strong case for the importance and advantages of aesthetic leadership during complex and uncertain times. The next step involves figuring out how artistic capacities can be uncovered and developed in contemporary leaders whether from an aesthetic or postheroic frame of reference. As with all interpretive studies of unique cases, the issue of generalizability is present and must be considered a limiting factor. Nonetheless, we accept this limitation in favor of the compelling insights available from our approach (see Siggelkow, 2007). Moreover, given the underdeveloped state of aesthetic leadership frameworks, ethno-methodological techniques are appropriate (see Rowley, 2002) and a focus on generalizability would currently be premature (see Fairhurst, 2009). Instead, theoretical creativity (Glynn & Raffaelli, 2010) and disciplined imagination (Weick, 1989) are needed to capture such a complex leadership perspective. This complexity leaves many questions unanswered and serves as the basis for a wide range of future research (Adler, 2006; Ladkin & Taylor, 2010). Although we have offered a framework of the elements of authentic aesthetic leadership in a slight step-wise manner that makes intuitive sense, these motifs are interrelated and interwoven. We show no arrows of directionality, as it is likely that many of these elements continually evolve and alter others. For example, while diving deep into one’s senses allows a potential leader to craft meaning from the experience, the occurrence of crafting meaning and sharing it with potential collaborators could impact and alter the leader’s sense-making. Also, our framework does not speak to issues of degree and time. In other words, how much artistic appreciation is necessary for a potential aesthetic leader to abandon the illusion of control? How much time should an aesthetic leader spend on sense-making before crafting The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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meaning? While the benefits of artistic leadership and using sense-making to more thoroughly understand a situation, make a decision, and then act on that decision are evident, Springborg (2010) does caution that extensive sense-making and exploration could result in a leader becoming overwhelmed by the possibilities and decrease efficiency. Also, since we view authentic aesthetic leadership as a postheroic form, we suggest this is also an avenue for future research. In the journal literature, postheroic leadership is often associated with feminine qualities and many are seeking better explanations for why feminized postheroic leadership is so often promoted, yet so seldom seen (Fletcher, 2004; Rippin, 2007). Although our artist-leaders in this study were women, it was not gender that dominated their leadership. Rather, it was their art. Is it possible that the qualities and behaviors labeled as feminine have been confused with those that are artistic? These are but a few examples of the many questions that future research should seek to answer. Conclusion Although scholarly interest in aesthetic approaches to leadership is intensifying, research development of these concepts is still very much at a nascent stage, resulting in calls for more examinations of artistic leaders and further development of aesthetic leadership paradigms. However, a review of the extant literature reveals no broad conceptual framework for leading aesthetically. In the attempt to fill this gap, grounded in emerging theories of leadership as art, we examined the historical case of the San Antonio Conservation Society and its prominent artist-leaders, Emily Edwards and Rena Maverick Green, to represent a hermeneutic approach to authentic aesthetic leadership. References Adler, N.J. (2006). The arts & leadership: Now that we can do anything, what will we do? Academy of Management Learning & Education, 5(4), 486-499. Avolio, B.J., & Gardner, W.L. (2005). Authentic leadership development: Getting to the root of positive forms of leadership. The Leadership Quarterly, 16, 315-338. Barnard, C. (1938). The functions of the executive. Cambridge, MA: Harvard University Press. Barnes, B., Humphreys, J.H., Oyler, J.D., Pane Haden, S.S., & Novicevic, M.M. (2013). Transcending the power of hierarchy to facilitate shared leadership. Leadership & Organization Development Journal, 34(8), 741-762. Barry, D., & Meisiek, S. (2010). The art of leadership and its fine art shadow. Leadership, 6(3), 331-349. Bartunek, J.M., & Carboni, I. (2006). A time for hope: A response to Nancy Adler. Academy of Management Learning & Education, 5(4), 500-504.

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Bathurst, R., Jackson, B., & Statler, M. (2010). Leading aesthetically in uncertain times. Leadership, 6(3), 311-330. Benjamin, J.R. (2006). A student’s guide to history. New York: Bedford/St. Martins. Berman, M.P. (2006). Locke the Hermenaut and the mechanics of understanding. Humanitas, 19(1-2), 182-200. Bevir, M. (2002). How to be an intentionalist. History & Theory, 41, 209-217. Biehl-Missal, B. (2010). Hero takes a fall: A lesson from theatre for leadership. Leadership, 6(3), 279-294. Botanski, L., & Chiapello, E. (2005). The new spirit of capitalism. London: Verso. Briskin, L. (2011). Union renewal, postheroic leadership, and women’s organizing: Crossing discourses, reframing debates. Labor Studies Journal, 36, 508-537. Chang, K.H., & Horrocks, S. (2008). Is there a place for ontological hermeneutics in mentalhealth nursing research? A review of a hermeneutic study. International Journal of Nursing Practice, 14, 383-390. Cohen, A.R. (1997). Managing for excellence: The guide to developing high performance in contemporary organizations. Hoboken, N.J.: John Wiley & Sons, Inc. Collingwood, R.J. (1938). The principles of art. London: Oxford University Press. Courtney, R. (1995). Drama and feeling: An aesthetic theory. Montreal: McGill-Queen’s University Press. Davis , S., & McIntosh, D. (2005). The art of business: Making all your work a work of art. San Francisco: Berrett-Koehler. De Pree, M. (2008). Leadership jazz: The essential elements of a great leader. New York: Doubleday. Dutton, G. (1996). Leadership in a post-heroic age. Management Review, 85, 7. Eisenhardt, K.M., & Graebner, M.E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50, 25-32. Fairhurst, G.T. (2009). Considering context in discursive leadership research. Human Relations, 62, 1607-1633. Fisher, J.R., Jr. (2004). Leaders as artists. Executive Excellence, 21(7), 5-6. Fisher, L.F. (1996). Saving San Antonio: The precarious preservation of a heritage. Lubbock, TX: Texas Tech University Press. Fletcher, J.K. (2004). The paradox of postheroic leadership: An essay on gender, power, and transformational change. Leadership Quarterly, 15, 647-661.

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Taylor, S.S., Fisher, D., & Dufresne, R.L. (2002). The aesthetics of management storytelling: A key to organizational learning. Management Learning, 33(3), 313-330. Taylor, S.S., & Hansen, H. (2005). Finding form: Looking at the field of organizational aesthetics. Journal of Management Studies, 42(6), 1211-1231. Taylor, S., & Ladkin, D. (2009). Understanding arts-based methods in managerial development. Academy of Management Learning and Education, 8, 55-69. Weber, M. (1947). The theory of social and economic organization. T. Parsons (Trans). New York: Free Press. Weick, K.E. (1989). Theory construction as disciplined imagination. Academy of Management Review, 14, 516-531. Weick, K.E. (2007). Drop your tools: On reconfiguring management education. Journal of Management Education, 31(1), 5-16. Wicks, P.G., & Rippin, A. (2010). Art as experience: An inquiry into art and leadership using dolls and doll-making. Leadership, 6, 259-278. Woodward, J.B., & Funk, C. (2004). The aesthetic of leader development: A pedagogical model for developing leaders. Proceedings 2nd Art of Management and Organization Conference, Paris. Woodward, J.B., & Funk, C. (2010). Developing the artist-leader. Leadership, 6(3), 295-309. Zhang, H., Cone, M.H., Everett, A.M., & Elkin, G. (2011). Aesthetic leadership in Chinese business: A philosophical perspective. Journal of Business Ethics, 101, 475-491. About the Authors Stephanie S. Pane Haden (Ph.D., Rensselaer Polytechnic Institute) is an Associate Professor of Management at Texas A&M University-Commerce. Her work has appeared in various outlets such as Management Decision, Sloan Management Review, the Journal of Leadership & Organizational Studies, the Journal of Business Strategy, Industrial Management, the Journal of Management History, and the Journal of Applied Management and Entrepreneurship. Sara Diaz is a student in the Honors College program at Texas A&M UniversityCommerce. A paper incorporating the work she did on her honors thesis was accepted and presented at the Academy of Management Annual Meeting. She is a member of the Texas A&M University-Commerce golf team and was named the 2013 Lone Star Conference Academic Women's Golfer of the Year. John H. Humphreys (D.B.A., Nova Southeastern University) is a Professor of Management at Texas A&M University-Commerce. His work has appeared in numerous venues including Harvard Business Review, Sloan Management Review, Business Horizons, Management Decision, Thunderbird International Business Review, the Journal of Management The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Inquiry, the Journal of Leadership & Organizational Studies, the Journal of Management History, and the Journal of Applied Management and Entrepreneurship. Mario Hayek (Ph.D., University of Mississippi) is an Assistant Professor of Management at Texas A&M University-Commerce. He is an international entrepreneur and has published multiple articles in outlets such as the Journal of Management History, the Journal of Family Business Management, Decision Sciences Journal of Innovative Education, the Journal of Management Research, and the Journal of Applied Management and Entrepreneurship.

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“I’m Loving It!” What Makes the Successful Entrepreneur Affectively Committed to Entrepreneurial Performance? Rahayu Tasnim, Netherlands Maritime Institute of Technology Salleh Yahya, Universiti Teknikal Malaysia Melaka, Malaysia Muhammad Nizam Zainuddin, Multimedia University, Malaysia Executive Summary Our paper aims to explore and reveal what, exactly, binds the successful entrepreneur to his/her desires to persevere and succeed; in other words, “what makes the successful entrepreneur affectively committed to superior entrepreneurial achievements?” In-depth interviews of six successful entrepreneurs were conducted. Interpretative Phenomenological Analysis was applied to reveal the patterns and themes interpreted as affective entrepreneurial commitment. We find that affective commitment is the main component of commitment influencing entrepreneurial performance, and that passion in pursuing goals, coupled with positive inherited and learned values, and the possession of exceptional personality are found to positively influence the successful entrepreneurs’ aspirations to endure the challenges and unpredictable failures, showing how important it is to truly understand the mindset of the successful entrepreneur, specifically on the factors contributing to high levels of commitment. The finding paves ways for those directly involved in entrepreneurship development to boost entrepreneurial commitment by channeling the right curricula to prospective entrepreneurs, especially during their first years in business. Instilling passion, values and the right personality may perhaps contribute to the curricula ingredients. Those emotionally struggling with failure would find the curricula as a valuable foundation for guidance and psychological strength. Our work contributes to the underdeveloped, yet much anticipated knowledge on entrepreneurial commitment and may benefit future empirical studies aimed at understanding commitment, particularly in the successful entrepreneur. Introduction Our interest in this study was stimulated initially by practical considerations: What, exactly, makes some entrepreneurs so highly “committed” to their work and how might this sense of commitment be instilled in others? Are successful entrepreneurs emotionally attached to entrepreneurialism? If so, what makes them ‘attached’ and does this personal attachment impact entrepreneurial performance? In response to these questions, we conducted a phenomenological exploration through the life-changing experiences of six successful entrepreneurs; all successfully operating businesses aged between five to twenty five years and performing exceptionally well in the international markets. One of them is a renowned icon for MalaysianThe Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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entrepreneurship, having earned multiple awards and recognitions for promoting and nurturing entrepreneurship development in the country. All six entrepreneurs were interviewed singly, with audio data transcribed in full. Interpretatitive Phenomenological Analysis (IPA) was applied to explore the dynamics of ‘commitment’, and affective commitment in particular. As all six entrepreneurs are successful in their own industries and markets, understanding what makes them affectively committed would be valuable for other potential entrepreneurs who are struggling to survive and grow their ventures. Knowing how affective entrepreneurial commitment is developed will pave ways for policy makers and parties directly involved with entrepreneurship development to focus on enhancing entrepreneurial commitment, especially amongst entrepreneurs in the survival and growth stages. Commitment in the Entrepreneurial Process Along the entrepreneurial process, ‘commitment’ is seen as especially important to trigger start-up and to implement productive business activities (Moore, 1986) while echoing the capacity to ensure ventures succeed (Erikson, 2002; Klofsten, 1994). With commitment, the entrepreneur often takes strides in his levels and efforts of persistence, leading to significant entrepreneurial activities (Sinclair & Bruce, 2009; Tang, 2008; Welsch, Liao, Pistrui, Oksöy, & Huang, 2003) and positive entrepreneurial performance, even when adapting to changes along the process (Simon, Elango, Houghton, & Savelli, 2002). However, despite the importance and the significant value of commitment in the entrepreneurial process, there exists little effort in applying commitment theories into entrepreneurship research and that the idea of ‘commitment’ itself is not harmonized (Fayolle, 2007; Tasnim, Yahya, Mohd Nor, Said, & Zainuddin, 2013). Although there have been studies associating commitment with entrepreneurship, on the whole, these studies seem to focus on the preliminary stages in the entrepreneurial process, where individuals decide on becoming an entrepreneur, and in particular, during start-up establishment (Carter, W, & Reynolds, 1996; De Clercq, Menzies, Diochon, & Gasse, 2009; Krueger, 1993; Sinclair & Bruce, 2009). In short, these studies have associated commitment to the intention to start-up, rather than the amount of effort they are prepared to invest, and that “little is known about the entrepreneur’s commitment while they are in the process of setting up a business” (De Clercq, et al., 2009, p. 124), moreover in the survival and growth stages. What is imperative for us to realize is the process that leads to a person’s total commitment rather than the process during which he remains committed in spite of whatever the costs (Fayolle, 2007). Nonetheless, efforts to understand how commitment is developed in an entrepreneurial milieu is scarcely researched, thanks to it being an “extreme behavior… and a complicated psychological concept to work on, with many connotations and even more applications…” (Kiesler, 1971, p. 159), and ingrained as different definitions across fields of research (see J.P Meyer & Allen, 1997 for review). In a work on entrepreneurial alertness and commitment, Tang (2008) showed a strong relationship between environmental munificence and alertness, especially when entrepreneurs have high levels of self-efficacy which, in turn, affects entrepreneurial commitment. In another The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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development, it was found that nascent entrepreneurs’ goal commitment is shaped by the desirability and feasibility of goal accomplishment (De Clercq, et al., 2009); that an entrepreneur’s perceived self-efficacy and perception of the availability of external private financial resources positively affect goal commitment, whereas their perception of the availability of public financial support negatively affects goal commitment. With regards to the desirability of goal attainment, both the value associated with entrepreneurship as a career choice and their perception of normative support are positively related to goal attainment. The same study enlightens the understanding of why many people intend to start-up but are not willing to exert the effort do so. In chorus, Sinclair (2009) illustrates that entrepreneurial commitment can be measured via the cognitive mechanisms of both self-efficacy and entity-schema, while in a more recent work, specific organizational behavior theories on commitment (J.P Meyer & Allen, 1997; J.P Meyer & Herscovitch, 2001) and motivation (E. A. Locke, 2000; John P. Meyer, Becker, & Vanderberghe, 2004) were systematically reviewed and synthesized to conceptualize the development of entrepreneurial commitment (see Tasnim, et al., 2013). Affective Commitment In an organizational context, commitment is most popularly conceptualized as the components of affective, continuance and normative commitment, in view of commitment being a psychological state of mind that i) describes the relationship of an employee with the organization, and ii) has implications for the decision to stay employed (or not) with the organization (J. P. Meyer & Allen, 1991; J.P Meyer & Allen, 1997; J.P Meyer & Herscovitch, 2001). In these contexts, commitment is defined as; “…a force that binds an individual to a course of action that is of relevance to a particular target”. (J.P Meyer & Herscovitch, 2001, p. 301) Some authors prefer to describe commitment as an affective orientation towards the organization (e.g Buchanan, 1974; Kanter, 1989). This affective attachment is described as “the relative strength of the individual’s identification with and involvement in a particular organization” (R. T. Mowday, Steers, & Porter, 1979, p. 226), and is seen as the most influential component in predicting workplace commitment and performance (J.P Meyer, Stanley, & Parfyonova, 2012). The mind-set reflecting affective commitment is desire – people with positive affective commitment will willingly “want to” perform the given goals and tasks (J.P Meyer & Herscovitch, 2001). What is presumably involved in shaping this desire include involvement, (J. P. Meyer & Allen, 1991; R. T. Mowday, Porter, & Steers, 1982), value congruence (Mayer & Shoorman, 1998), and identification (Shamir, 1991). The most widely cited antecedents of affective commitment fall into four categories: personal characteristics, structural characteristics, job-related characteristics and work experiences (Mowday, 1998), with research suggesting that work experiences, apart from other personal or structural characteristics, largely contributes to the desire to remain in an organization (Meyer & Allen, 1991).

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Why Interpretative Phenomenological Analysis? Interpretative Phenomenological Analysis (IPA) is a newly developed, upward trend in phenomenological research. Developed by Jonathan Smith and colleagues (1999), IPA originated and is popular in the fields of psychology, but seems to be increasingly applied in other disciplines, including the social sciences. IPA is gaining momentum in the entrepreneurship domain (Berglund, 2007; J. b. Cope, 2005; Seymour, 2006) but is yet to be applied to the subject of commitment in the entrepreneurship cycle. IPA is a qualitative research technique aimed to examine how individuals make sense of their major life experiences. This methodological standpoint embeds itself within an emergent body of entrepreneurship scholarship that is confident in applying qualitative methods as its only form of inquiry (see Anderson & Jack, 2002; Drakopoulou Dodd & Anderson, 2007; Kisfalvi, 2002; Rae, 2000) where the strength of a qualitative research design “lies in its capacity to provide insights, rich details and thick descriptions” (Jack & Anderson, 2002, p. 473). For instance, IPA has been used in studies on entrepreneurial learning (e.g.Deakins & Freel, 1998; Pittaway & Cope, 2007; Ravasi & Turati, 2005; Taylor & Thorpe, 2004) and in an emerging number of failure studies (J. Cope, 2011; B. McKenzie & Sud, 2008; Mellahi, 2005; Mouly & Sankaran, 2004; Sheppard & Chowdhury, 2005; S. Singh, Corner, & Pavolvich, 2007; Zacharakis, Meyer, & DeCastro, 1999). Because IPA is deeply concerned with exploring experiences in its own terms, it is considered highly phenomenological (J.A Smith, Flowers, & Larkin, 2009) and follows Edmund Husserl’s (2006) famous lead to go ‘back to the things themselves’. We therefore trust that going ‘back to the things themselves’ fits the discovery-oriented nature of this study for the apparent reasons below; 1. The lack of clear ideas, theories, and definitions of constructs/variables on entrepreneurial commitment provides little and aun-rooted foundation and structure to start with. IPA provides a powerful means to contribute to the scarcity of information by dwelling deep into the real experiences (phenomenon) dictated by entrepreneurs themselves, by the stories that they narrate and the emotions that accompany them. 2. The area of investigation is still considered new and vague. IPA may help in providing new insights into the investigation via i) establishing in-depth operational definitions involving entrepreneurial commitment, and ii) discovering and understanding entrepreneurial commitment, rather than verifying its existence. 3. To conceptualize entrepreneurial commitment, rather than to test the existing conceptual model(s), and 4. To generate deep-rooted propositions, rather than to merely test hypotheses. Phenomenology helps in elucidating and explaining complexity. In moving beyond the life stories of entrepreneurs, we seek to provide a “theoretical insight” (Mouly and Sakaran, 2004) into the causes and impact of commitment from an entrepreneur’s perspective. In other words, the application of IPA aims to investigate the gaps between real-life occurrences as well as the theoretical concepts on one side, and the individuals’ interpretation on the other (Berglund, 2007; J.A Smith, 1996). For these reasons, we judge that The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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it is the best method to unearth new insights and to establish a clearer picture of the entrepreneur’s committed-mindset. The unstructured interview technique was applied as it provided participants maximum flexibility to describe in as much detail as possible salient entrepreneurial experiences. In an unstructured interview, “…first, a topic-introducing question is asked and the remainder of the interview proceeds as a follow-up and expansion on the interviewee’s answer to the first question” (Kvale, 1996, p.127). In other words, how the interviews unfold depends exclusively on how the participant answers this first question (J.A Smith, et al., 2009). In our case, after establishing a rapport with the participant, we began by providing a simple introductory statement: “This interview collects verbal histories of entrepreneurs. Perhaps, we may begin with a brief description of your childhood, and where you were born”. Asking the entrepreneur about his/her birthplace and childhood frames the interview into the context of life history, thus providing a comfortable starting point (Brian McKenzie, 2007) and a continuous flow of storytelling. In an unstructured interview, the researcher asks a single core question at the beginning of the interview. The researcher stayed out of the conversation as much as possible, only intervening for the sake of clarity. The total number of respondents involved in the IPA was six. Being an idiographic approach, concerned with the understanding of a phenomena in a particular context, studies using IPA are run on small sample sizes (Eatough & Smith, 2008; J.A Smith & Osborn, 2008). “The issue is on quality, not quantity, and given the complexity of most human phenomena, IPA studies usually benefit from a concentrated focus on a small number of cases” (J.A Smith, et al., 2009, p. 51). Another important consideration for interviews is the saturation concept, a point where no additional new information or themes are observed in the data (Guest, Bunce, & Johnson, 2006). In previous experiments by other researchers concerned with data saturation and variability over the course of thematic analysis, findings showed basic elements for ‘metathemes’ were present as early as six interviews (Boeije, 2010; Creswell, 1998; Guest, et al., 2006). Similar experience occurred in this study where no new themes could be generated by the fifth interview. IPA Results and Synthesis The process of data analysis in IPA involves an enduring, iterative process of fluid description, expansion, revision, creativity and innovation” (J.A Smith, et al., 2009, p. 81). The analysis requires a verbatim record of the data collection event (Langdridge, 2007; J.A Smith, et al., 2009), which in this case, involved audio recording upon consent. A semantic record of the interview is required; that is, a transcript showing all the words that were spoken by each participant. The total transcribed text of all six participants amounted to 237 pages in length and the average interview duration for each participant was 2 hours. This first step in data analysis looks into the “semantic content and language used on an exploratory level” (J.A Smith, et al., 2009, p. 83). Re-readings were a must to obtain familiarity The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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with the transcript and to identify ways each participant talks about the phenomenon of ‘affective commitment’ in their own context. A textual analysis was involved at this point, where a thorough line-to-line analysis was performed. As the amount of text was immense, the NVivo8.0 software was utilized to organize data and to conduct further analysis. However, albeit time consuming, the line-by-line analysis was comfortably done manually, along with re-listening to the recording, to grasp a better ‘feel’ of the raw data, and to capture the emotional ruptures episodic throughout the sessions. The following step engaged the processes of reducing the volume of text to be analyzed, while maintaining complexity, by mapping the interrelations, connections and patterns between initial exploratory notes, ‘shifting’ away from the original transcript. This process involved breaking up the narrative into chunks of parts and again, was done manually to get a ‘feel’ of what was actually expressed by the participant and to carefully make sense of his/her narrative. Themes were generated and grouped based as such that they embed the concept of commitment and its affect on entrepreneurial performance. The next step involved the development of charting and on how the themes fit together (J.A Smith, et al., 2009). After a series of five separate interviews, and analysis of five separate transcripts, themes were found to be saturated; i.e. no new themes were generated. However, the sixth interview was still conducted to validate the results. Identification of patterns and connections across themes was done via the i) abstraction, ii) contextualization, iii) numeration and iv) function of each theme (see J.A Smith, et al., 2009 for examples). Passion and Commitment: Our interpretative analysis shows that “passion” and a sense of “self-satisfaction” to entrepreneurial actions and decision-making were repeatedly expressed by each participant, and contributed to the highest score across all themes (32%). “Passion” and “self-satisfaction” are interpreted and ignited in the most critical of entrepreneurial activities such as “seeking knowledge”, “self-development”, “satisfying an inner need”, “working independently and with minor supervision”, “thinking”, “visioning”, “seeking opportunities”, “management and leadership skills” and “excellent networking”. ‘Passion’ and ‘self-satisfaction’ were most obviously interpreted during the pre start-up and survival phases of participant’s entrepreneurial ventures. This finding is consistent with recent works on entrepreneurial passion (Cardon, Gregoire, Stevens, & Patel, 2012; Cardon, Wincent, Singh, & Drnovesk, 2009; X.-P. Chen, X. Yao, & S. Kotha, 2009); that passion for the business is the apex of all characteristics in a successful entrepreneur, particularly in the contexts of a new venture or in the growth stages (Barringer & Ireland, 2010). In line with the definition of affective commitment as the force that binds an actor to a particular phenomenon, (J. P. Meyer & Allen, 1991; John P. Meyer, et al., 2004), we illustrate that affective commitment is reflected through feelings of passion and selfsatisfaction, particularly in the early stages of the venture cycle. In our case, it seems that passion shapes the desire to act and behave entrepreneurially, and binds participants to their entrepreneurial goals. To illustrate, the most renowned entrepreneur stated; “Ah…it’s like that. It’s not the things that we are asked to do, but…we are happy to do so, you know. Happy…and then you know, it’s like more than… like loving your own child, you know. It’s those kinds of feelings that always exist…that’s how I do business. It has always been that way”. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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“Happy” and “love”; the two most powerful keywords expressed by not one, but all six entrepreneurs interviewed, pointing to the commanding role of passion in shaping affective commitment. Also evident in their texts was the urge of “wanting” to satisfy inner desires. One participant, for instance, was searching for the “right” type of entrepreneurial venture for years before arriving at a “dream” business; “So I was in to small businesses, I opened up a car wash, helped friends, relatives, families in businesses, but none was what I wanted”. We believe that a powerful sense of “self-satisfaction” exists when affection develops; in the above case, struggling extremely hard in the early years of a high-tech commodity-based venture to make ends meet, and having sold off everything he owned, never had this participant thought of turning back. In this case, he willingly “wants to” make it, no matter what. Pain and sacrifice ostensibly transform into feelings of desire and positive challenges, leading the participant to work harder and smarter each day. In this light, we see that, when one is ultimately passionate about his/her entrepreneurial tasks, he/she willingly sacrifices time, money and effort to earn competitive advantage (Cardon, Wincent, Singh, & Drnovsek, 2009b; X. P. Chen, X. Yao, & S. Kotha, 2009). And most importantly, he/she somehow remains loyal to his/her entrepreneurial goals, and enjoys doing so. Inarguably, entrepreneurial passion is the heart of entrepreneurship as it fosters the entrepreneur’s creativity, recognition of new opportunities (Baron, 2008; Sundararajan & Peters, 2007), the entrepreneur’s ability to generate funds from investors (Cardon, Wincent, Singh, & Drnovesk, 2009; Sudek, 2006) and to employ and motivate workers (Cardon, 2008). In this light, researchers are welcoming a deeper conception of passion as the innermost element of entrepreneurial efforts (Cardon, Wincent, Singh, & Drnovesk, 2009; X.-P. Chen, et al., 2009) given the unpredictable success of launching new products and services, as well as the obstacles of building new organizations, and in particularly with limited resources to carry on. As posed by Brännback et al. (2006, p. 6), passion may “fuel motivation, enhance mental activity, and provide meaning to everyday work”. In spite of the role played by passion in entrepreneurship, research on entrepreneurial passion is very much underdeveloped (Cardon, Wincent, Singh, & Drnovesk, 2009), leading to a dearth of empirical evidence (Cardon, et al., 2012; Murnieks, 2007) resulting in a lack of critical substantiation on how passion may play a significant role in enhancing the entrepreneur’s efforts (J.R. Baum, Locke, & Smith, 2001), his persistence en route for goals in spite of momentous challenges (Utsch & Rauch, 2000) and developments for venture survival and growth. Chen et al (2009, p. 199) defines entrepreneurial passion as “an entrepreneur’s intense affective state accompanied by cognitive and behavioral manifestations of high personal value”. However, Chen et al’s (2009) study did not reflect the overall passion as experienced by the entrepreneur himself, but instead represented the impression of investors during business plan presentations. This led to a study by Cardon et al. (2009) focusing on the entrepreneur’s ‘lived’ experience of passion, i.e. on how entrepreneurs report the passion they experienced, resulting in The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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an argument on how cognitive or behavioral manifestations are the outcomes of the affective experience of passion, rather than being part of experience itself. In this light, entrepreneurial passion is then defined as “consciously intense positive feelings experienced by engagement in entrepreneurial activities associated with roles that are meaningful and salient to the self-identity of the entrepreneur” (Cardon, Wincent, Singh, & Drnovesk, 2009, p. 517). Recently, Cardon’s team (2012) proposed that measuring entrepreneurial passion requires a consideration of three specific aspects; i) that passion involves the experience of intense positive feelings, that ii) these feelings are experienced in activities significant to the self-identity of the entrepreneur, and that iii) these feelings and identity centrality should focus on three specific entrepreneurial domains; inventing new products or services, founding new firms and developing firms for successful performance, all of which representing the challenges linked to the varying aspects in the entrepreneurial process (Gundry & Welsch, 2001; Katila & Ahuja, 2002). In particular, the processes of scanning the environment for opportunities, developing new products and services and developing new prototypes are linked to the entrepreneur’s passion for inventing (Cardon, Wincent, Singh, & Drnovesk, 2009). Passion for founding is coupled with the processes involved in developing new ventures, i.e. pooling the needed financial, human and social resources (Cardon, Wincent, Singh, & Drnovesk, 2009), and motivates the entrepreneur to a certain degree (Aldrich & Zimmer, 1986), making them feel satisfied by having doing ‘something’ entrepreneurial (Katz & Gartner, 1988). Entrepreneurs who have a passion for founding enjoy the process of founding thus developing identities “intertwined with [his/her] venture identity (Cardon, Zietsma, Saparito, Matherne, & Davis, 2005), and more often leads to ‘habitual entrepreneurs’ who launch several ventures along their entrepreneurial career path (Ucbasaran, Alsos, Westhead, & Wright, 2008). So passionate they are into founding new businesses, some of them soon thrust their venture to aides or even sell the business altogether, only to commence with another new venture or invention, a trend known as ‘sequential entrepreneurship’ (Ronstadt, 1988), while some preserve ownership and manage their ventures as part of a larger portfolio of ventures, hence the term ‘portfolio entrepreneurs’ (Westhead & Wright, 1998). Lastly, passion for developing is related to the growth and extension of the venture subsequent to founding (Cardon, Wincent, Singh, & Drnovsek, 2009a). There are many entrepreneurs out there who are not motivated by the desire to found a new firm, but on the other hand, are motivated to grow the venture (Cliff, 1998). These individuals are said to enjoy activities such as upgrading sales, recruiting new staff, or looking for investors for funding and are often seen to exhibit distinct organizational management strategies (Gundry & Welsch, 2001) and management styles (N. R. Smith & Miner, 1983) compared to their competitors. All things considered, passion is seen as playing a critical role in enhancing the entrepreneur’s efforts (J.R. Baum, et al., 2001) and persistence (Utsch & Rauch, 2000), and it may be the key to developments for venture survival and growth. Our finding seems to strengthen these claims in the context of an explorative phenomenological finding; that the more passionate an entrepreneur is to his/her business, the more sentimental he/she is to his/her entrepreneurial goals.

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Values and Commitment: The second most notable theme emerged throughout the narratives relates to “values”. Akin to attitudes, values symbolize social cognitions that aids the adaptation to one’s environment (Kahle, 1983). In our case, one participant stated; “Both of us…I don’t know…we are a bit different from others perhaps [giggles]…We knew each other since school days, so we share the same...err...values...trust is important in business. If you are talking about commitment, that’s our commitment [points to their company logo framed on the wall], there, on top. Ha…that’s just one of the things…” While another said; “…ah…let them become people…rather than …robots chasing degrees. So, you know, my children are very confident with their father, with their mother, with their family. So, my commitment to my company, I know that I can go forward, both of us the same [referring to his partner], wives at home, that’s why we can really focus on what we are doing. I learn this from my father too, you know, in a way” A female participant alleged; “So I tell my staff, you see? God is fair, I said. Don’t make enemies... that's why if I go anywhere, people will see that I never talk back, fight back, I keep mum, no matter what people say. So I train them to be that way, and I say, see where the sales go? Sales come to us!” And one participant deliberated; “But my parents...they’re the best...I learn a lot from them...these values you see...nowadays, people don’t teach these sort of values anymore...children learn from their bibik [maids] instead [frowns]. Where are the parents?” We noticed that participants reflected the significance of “values” in particular when referring to their parents, role models and when reflecting on their experiences and exposures to employment or prior business activities. These values are shared and nurtured to their children and staffs and provide them the comfort and support they needed to carry on. This phenomenon corresponds well with the recent work of Parks and Guay (2009) who argued that because personal values affects one’s general belief on how one ought to behave, they are said to directly affect motivation. Loosely defined, values depict conceptions of the desirable (Kluckhorn, 1951). In the seminal work of Milton Rokeach (1973), values are defined as the lasting belief that a specific mode of conduct or behavior is personally or socially preferred compared to an opposite or converse mode of conduct or behavior. Researchers have contested and conclude that values The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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predict, or at least are the antecedents of actual behavior following the works of Ajzen and Fishbein (1980), Fazio (1986), and by Connor and Becker (2003). Seeing that values are the general beliefs of how one ought to behave, it directly impacts the motivation to perform (Laura Parks & Guay, 2009). Values are developed in the course of interactions, mainly with role models, e.g. teachers, parents, etc., and are primarily learned in seclusion as absolutes (Maio & Olson, 1998; Rokeach, 1973) and may change significantly during adolescence and young adulthood, but are often stable during adulthood (Kapes & Strickler, 1975; Rokeach, 1972). Because values are learned via social interactions, exposure to new environments may aid in changes in an individual’s value structure (Cable & Parsons, 2001). Despite the abundance of studies on multiple commitments in the workplace setting, studies looking at the relationship of personal values with commitment are in short supply (Cohen, 2009), nonetheless emerging. An example is Glazer et al’s (2004) work on the relationship between values with affective (and continuance commitment) of nurses in four countries as well as a study on German and British employees (Fischer & Smith, 2006). These studies claim that research should be focused on the different aspects of commitment to further investigate the relationship between values and commitment. Cohen (2009) later investigated the relationship between personal values with workplace commitment and found that personal values relate to the common forms of workplace commitment beyond and greater than the effect of justice and demographic variables. The values associated with proactive strategies in entrepreneurship are often referred to as entrepreneurial values, encompassing, among others, creativity, risk taking, innovativeness, achievement-oriented, ambitiousness and independence (Hodgetts & Kuratko, 2001; Kickul & Gundry, 2002). For instance, it was found that owner-managers with the above mentioned entrepreneurial values exhibit efficient strategies that results in better performance (Blackman, 2003). On the nature of values, Hemingway (2005) highlights how values drive behavior, particularly in the entrepreneur, and that the association between entrepreneurial values and behavior affects corporate social responsibility. This is not surprising seeing that previous research on personal values have paid attention to the “vastly different” personal values characterized by entrepreneurs and ordinary managers (Fagenson, 1993) and that familiar themes exist in the entrepreneur, e.g. creative and imaginative, socially competent and elevated need for autonomy, and exhibiting independence in escaping from “…organizational constraints limiting their potential” (Chapman, 2000, p. 59; Corman, Perles, & Vancini, 1998; Fagenson, 1993; Longenecker, McKinney, & Moore, 1988; Olson & Currie, 1992). Furthermore, entrepreneurs are driven by a dominant sense of responsibility to make the most out of their venture for the people around them (Hemingway, 2005), and that being opportunists explains why they relentlessly seek new challenges (Chapman, 2000 and Fagenson, 1993). Nonetheless, their drive to succeed is associated with the need for personal satisfaction and fulfillment encompassing intellectual and professional goals, which, upon success, furnishes them with a sense of self-respect (Chapman, 2000; Fagenson, 1993 and Olson and Currie, 1992) which is valued as more important than money making itself (Corman, et al., 1998; Guerrier & MacMillan, 1981). In short, personal values not only have important implications during the The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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decision to become an entrepreneur, but also in the ways the entrepreneur approaches a venture (Bird, 1989; Bryan, 1999; Gasse) because values portray the entrepreneur’s realization of himself (Feather, 1990), and this realization is said to directly shape motivation and action (McClelland, 1965). In the same vein, evidence has also shown that entrepreneurship develops where values akin to achievement, wealth creation, personal gain, acceptance of change and economic advancement are salient (McClelland, 1965). It was also observed that value perceptions of entrepreneurship positively affect perceived entrepreneurial skills and that acculturation of these values enhance people’s perception of possessing the needed entrepreneurial skills to pursue a start-up (Liñán, 2008). The literature concludes that, an entrepreneur’s personal values affect how he/she acts entrepreneurially. In other words, how an entrepreneur behaves directly results from the realization of his/her beliefs in entrepreneurship. Our finding, in concert, seems to extend this notion by conceptualizing the following; that an entrepreneur is affectively acquainted to his/her entrepreneurial tasks given the support of optimistic beliefs related to entrepreneurship. In short, emotional attachment to entrepreneurial tasks is somehow shaped by how one is personally sensitive to entrepreneurship. In this case, an entrepreneur who beliefs entrepreneurship as the best career-fit may command a high level of affective commitment. We therefore conceptualize that personal values form affective commitment. Personality and Commitment: Throughout the interviews, high levels of confidence and extroversion were interpreted. For instance, one participant declared; “I always tell myself that I can do it. Even from my school days...and even now I tell my children the same...that they must believe in themselves... that they can do it. Although it’s hard...but you must believe...” While the female participant said; “I’ve failed many times...lost so much money...but I know I can do it. That’s why I didn’t stop, you see. If I can’t do it this way, I’ll do it another way...you must try. There’s not just one way to do it, right?” And one said; “Ah...believe in yourself. Your abilities...if you can’t believe in it, then don’t even try starting. Challenge yourself...I’ve always believe[d] in challenges...it makes your life hard, yes...but if you believe that it’ll make you stronger, then...umm...you’ll never stop” In a way, the above narratives illustrate strong beliefs in oneself, and in one’s capabilities, interpreted here as ‘self efficacy’. A powerful psychological mind set, self-efficacy is “the belief in one’s capabilities to organize and execute the courses of action required to manage prospective situations” (Bandura, 1994, pp. 71-81) . In the same vein, self-efficacy is the participant’s belief in his ability to succeed for his entrepreneurial goals. In a recent work on The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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nascent entrepreneurship, it is found that when entrepreneurs believed in the outcome of their efforts as feasible and desirable, they were more willing to exert higher levels of effort to achieve the particular goal (Clercq, Menzies, Diochon, & Gasse, 2009) and that policy makers wishing to boost entrepreneurial activity should focus on enhancing self-efficacy in advance (Segal, Borgia, & Schoenfeld, 2005). Self-efficacy is also found to affect commitment in the pre-entrepreneur (Sinclair & Bruce, 2009). A deeper level of interpretation revealed patterns relating to a few exclusive traits. For instance, one participant related; “Of course I wanted things to go my way, you know. But...err...as an entrepreneur; your customers are always right...so you must make changes along the way...because they’re your life line, your blood and sweat. You must adapt to changes...open to newness...have an open mind” And one said; “My advice to all who intend to do business is that you have to make sure your emotion…your EQ [emotional quotient], not only your IQ, must be strong. We always notice that EQ has to be strong”. While another deliberated; “You have to adapt. You cannot make people get along with you. You have to get along with other people but when it comes to decisions then it’s yours. But when in terms of socializing, if you go to places for example, you cannot expect people to follow your style. You have to understand their styles, why they are behaving like this” The narrative reveals a pattern of traits; social adaptation, emotional well-being and openness to experience. These exclusive traits are grouped under the ‘personality’ theme where ‘personality’ is defined as the enduring nature that results in characteristic patterns of interaction with one’s environment (Goldberg, 1993; Olver & Mooradian, 2003), and is related to a certain degree, to inheritance and genetic factors (Bouchard, 1997; Caspi, Roberts, & Shiner, 2005). Taking into consideration that both the constructs of values and personality are distinct (Parks, 2007; Parks & Guay, 2009), in spite of the distinctions, it is difficult to disentangle personality and values in practice, such for this case; where the same term can refer to a personality trait or a value (Roccas, Sagiv, Schwartz, & Knafo, 2002) and results in unreliable and confusing interpretations. Interpretations thus included the consideration of the similarity of both constructs; that both are expected to impact decision making, motivation, attitudes and other behaviors (Locke, 1997). Recall that personality is defined as the enduring dispositions that cause characteristic patterns of interaction with one’s environment (Goldberg, 1993; Olver & Mooradian, 2003) and is related to a certain degree, to inheritance and genetic factors (Bouchard, 1997; Caspi, et al., The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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2005). In the entrepreneurial process, it has been found that personality plays a significant role in shaping entrepreneurial intentions (e.g. Crant, 2005; Zhao, Seibert, & Hills, 2005), in developing both entrepreneurial cognition and opportunity recognition (e.g. Ardichvili, Cardozo, & Ray, 2003) and entrepreneurial role motivation (e.g. Miner, 1993). More interestingly, it is seen that personality is also a contributor to new venture survival in the works of Ciavarella et al. (2004). These works supported Gartner’s (1989) call for a better comprehension of personality theories to investigate the entrepreneurial process, followed by the argument that entrepreneurship itself is very much entwined in the personality of the entrepreneur, thanks to the centrality of the person–entrepreneur–entrepreneurship fit (Baum, Frese, Baron, & Katz, 2007). Indeed, works show the potential to further disclose the link between personality characteristics and entrepreneurial activities (Antoncic, Bratkovic, Singh, & Noble, 2008; Singh & Noble, 2003). Rauch and Frese (2007) in their recent work identified two groups of personality traits, i.e. general and specific, and that both traits affect venture performance. In another recent work (Zhao & Seibert, 2006), a study linking personality and entrepreneurial status was conducted, suggesting that entrepreneurs differ from managers in personality, except for ‘extraversion’. Later, a work linking personality to entrepreneurial performance in terms of technological developments (Antoncic, 2009) was published. Markman and Baron (2003) suggest that an entrepreneur will be more successful if his personal characteristics matches the prerequisites of being an entrepreneur, which they term as having a person–entrepreneurship fit. Interestingly, they further conceptualized how different magnitudes of perseverance leads to varying levels of entrepreneurial performance outcomes, proposing how “perseverance in the face of business and technological difficulties may be more important than the idea or the opportunity itself” (2003, p. 291). On the whole, these few studies are paving the ways for further investigations on personality and performance in an entrepreneurial setting, and that “personality must be considered as one important component of a multidimensional model of the variables, processes, and environmental factors affecting entrepreneurship and new venture creation” (Zhao & Seibert, 2006, p. 268). Commitment and Performance: Our IPA study discovered themes that were generated from recurrent use of phrases such as “never give up”, “effort” and “determination”, amongst others. We therefore interpreted these phrases as “commitment” to some degree. All in all, when asked to sum up, one entrepreneur said; “It’s all about effort you see, whether you’re really brave enough to carry on” While one emotionally uttered; “I closed my printing factory, I put everything here. I closed my law firm, I put everything here. My wife, having more than 10 years as a managing director of a successful law firm. Our law firm was the leading law firm for Telekom Malaysia. 50,000 files each month! One file, 1,000 plus [RM] income. We closed that, put everything in here [the business] and without [a] maid…and she became a fulltime The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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housewife. From during the times when she had her own driver! It’s…err…I don’t think the commitment can get any higher! And… oh, I’ve had three strokes. Did I give up? No. Never. Not till I die [smiles]” While the youngest participant said; “I’ll never give up. Giving up is like giving up all that I have…my life, this is my life. I can't give up. Yeah, I’m struggling real hard… but I will never give up. If I don’t succeed here, maybe I’ll succeed somewhere else [smiles]. God bless…I’ll never give up” And one deliberated; “Ah! Don’t become an entrepreneur if you can't take the challenges lah! So, if you’re scared, don’t even think of making through the first month! Yes…I’ve experienced all this. If you’re scared, don’t mention it lah. Just stay employed [laughs]. But if you got the guts, be it, go for it…umm…people like me, you see, we’re not afraid of anything else …sabotage, this and that…just afraid of God. You must be determined that you want success, then God will help” Looking at how commitment is interpreted and made sense by each participant, we conclude that commitment is the force that binds the participant to his entrepreneurial goals and somehow drives the entrepreneur to strive harder and to persevere. Moreover, it empowers him to bounce back, even after a series of bad falls and crumpled hopes. The Entrepreneur’s Affective Commitment Piecing together the distinctive roles of passion, values and personality traits in the entrepreneurship literature with the IPA finding, we see that these constructs somehow shape the entrepreneur’s desire to perform entrepreneurially (see Figure 1).

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Entrepreneurial Passion Values

Affective Commitment

Entrepreneurial Performance

Personality Figure 1: Conceptualizing Affective Entrepreneurial Commitment We therefore conceptualize the three distinct components of affective entrepreneurial commitment as entrepreneurial passion, values and personality, where all three shape the desire to perform entrepreneurially, and somehow empowers the entrepreneur in the form of emotional attachment to his/her entrepreneurial goals. In other words, we propose that; 1. Entrepreneurial passion is the consciously accessible intense positive feeling experienced by engagement in entrepreneurial activities. This feeling somehow shapes the affective commitment of the entrepreneur. 2. Values are the learned beliefs that serve as guiding principles about how an entrepreneur ought to behave. These beliefs somehow shape the entrepreneur’s affective commitment. 3. Personality is defined as the enduring dispositions that cause characteristic patterns of interaction with one’s environment. These enduring dispositions positively shape the entrepreneur’s affective commitment. 4. The mind-set of ‘desire’ (affective commitment) develops when an entrepreneur becomes involved in, recognizes the value-relevance of, and/or derives his identity from his association with entrepreneurship, and during his pursuit to perform entrepreneurially. This mind set impacts entrepreneurial performance. What Next? Some Practical Implications Seeing how passion, values and personality are linked to the affective component of commitment, and are somehow the drivers of entrepreneurial performance, efforts may be taken to look into ways to educate the right values and personality traits to prospective entrepreneurs to ensure that they are willingly and competently growing their businesses. For instance, further studies may seek to empirically answer the following; “What are the associated values that positively shape entrepreneurial commitment?” or “Is there a specific personality profile that positively impacts entrepreneurial commitment?”, or even “Can affective commitment be educated in the first place? How?”

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As passion is at the heart of entrepreneurship, so powerful it is that it binds the entrepreneur to his/her entrepreneurial dreams, making him/her take pleasure in working harder to succeed and stay focused along the way. Nonetheless, “love at first sight” is impossible for the entrepreneur because loving what he/she is pursuing involves a plethora of hands-on experiments, and recurring failures. In short, the first business started often fails. Therefore, promising entrepreneurs would have to struggle hard especially in their first years in business to look for the ideal business which he/she feels not only comfortable with, but excited and keen to nurture and grow for a long time to come. Given this rationale, it is unsurprising how potential entrepreneurs “soul search” for years before finding the right business and vision to pursue. In this course, we often hear of prospective entrepreneurs “having tried many types of businesses before finding the right match”. This shows how many successful entrepreneurs endure painful years of business failures before commencing on the successful ones, transforming along the way, into ‘habitual’ entrepreneurs themselves. In this light, some practical implications emerge. For instance, in a societal context, people need to support potential entrepreneurs so that they do not shy away from failures and negative feedback. On the other hand, in a political context, policy makers and those promoting an entrepreneurial culture may need to somehow show a clearer picture of what successful entrepreneurship truly entails, while signaling to the society that failure is indeed part and parcel of the entrepreneurship game. One way to achieve this is via a good network and communication platform between successful and prospective entrepreneurs. Additionally, in an economic and legal perspective, habitual and successful entrepreneurship may be promoted through the flexibility of micro credit and business loans. As potential entrepreneurs may keep on trying, financial institutions may need to be less strict in penalizing entrepreneurs who do not make it, and are retrying their best to carry on, or even, to proceed with another business proposal and loan. Providing them a flexible platform for credit availability especially in the first three to five years in business would create a healthy environment for tolerating failure and moving on. The traditional emphasis on pre-entrepreneurship education where students are taught to come up with business ideas and construct business plans is insufficient to prepare them for the unpredictable first years in business. Therefore, it may be suggested that the same focus should be targeted for potential entrepreneurs already in businesses, in particular the first three to five years. In other words, efficient, high-impact trainings specifically tailored for small business management owner-founders is a must especially to those aspiring to for survival and growth of their novel ventures. The psychological aspects of entrepreneurship should be directed to inspire and motivate these budding entrepreneurs to carry on. At this juncture, instilling passion, values and the right personality to the potential entrepreneur may perhaps contribute to the curricula ingredients. Those who are facing failure may find the curricula as a foundation for guidance and psychological strength.

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Conclusion Albeit an exploratory attempt, this paper paves the way for further empirical research on commitment in an entrepreneurial context. Works on understanding entrepreneurial commitment should be welcomed to promote a better understanding of the psychological mind set of the entrepreneur and how commitment is developed in the venture cycle process. We find that affective commitment is the main component of commitment influencing entrepreneurial performance, and that passion, values and personality play significant roles in shaping this affective commitment. Our work contributes to the scarce but emerging information on entrepreneurial commitment and may benefit future empirical studies aimed at understanding commitment, particularly in the successful entrepreneur. For instance, how may we educate commitment, and whether or not commitment can actually be learned in a pedagogical setting? If so, how can we then design a special curriculum for entrepreneurial commitment education? Or, is entrepreneurial commitment inherited? These would be among the scores of questions researchers may seek to answer for further exploration on the topic of entrepreneurial commitment. References Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice Hall. Aldrich, H. W., & Zimmer, C. (1986). Entrepreneurship through social networks. In: Sexton, D., Smilor, R. (Eds.), The Art and Science of Entrepreneurship. Cambridge, MA: Ballinger. Anderson, A. R., & Jack, S. L. (2002). The articulation of social capital in entrepreneurial networks: A glue or a lubricant? Entrepreneurship and Regional Development, 14(3), 193-210. Antoncic, B. (2009). The Entrepreneur's General Personality Traits and Technological Developments. Paper presented at the Proceedings of World Academy of Science, Engineering, and Technology. Antoncic, B., Bratkovic, T., Singh, G., & Noble, A. F. D. (2008). The big five personality factors, gender, and entrepreneurship: Evidence from Slovenia, in 2008 Annual Meeting Proceedings (Academy of Management), Anaheim, CA. Ardichvili, A., Cardozo, R., & Ray, S. (2003). A theory of entrepreneurial opportunity identification and development, Journal of Business Venturing, 18, 105-123. Bandura, A. (1994). Self-efficacy. In V. S. Ramachaudran (Ed.), Encyclopedia of human behavior. New York: Academic Press, pp. 71-81. Baron, R. (2008). The role of affect in the entrepreneurial process. Academy of Management Review, 33, 328-340. Barringer, B. R., & Ireland, R. D. (2010). Entrepreneurship: Successfully Launching New Ventures. NJ, USA: Pearson. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Sundararajan, M., & Peters, L. (2007). Role of emotions in the entrepreneur's opportunity recognition process. Paper presented at the Academy of Management Conference. Tang, J. (2008). Environmental munificence for entrepreneurs: entrepreneurial alertness and commitment. International Journal of Entrepreneurial Behaviour & Research, 14(3), 128-151. Tasnim, R., Yahya, S., Mohd Nor, M., Said, H., & Zainuddin, M. N. (2013). "Are Successful Entrepreneurs Committed or Motivated?”: A Research Review Synchronyzing Commitment, Motivation and the Entrepreneur. ACRN Journal of Entrepreneurship Perspectives, 2(2, October 2013), 46-62, ISSN 2224-9729. Taylor, D. W., & Thorpe, R. (2004). Entrepreneurial Learning: A process of co-participation. Journal of Small Business and Enterprise Development, 11(2), 203-211. Ucbasaran, D., Alsos, G. A., Westhead, P., & Wright, M. (2008). Habitual Entrepreneurs. Foundations and Trends in Entrepreneurship, 4(4), 309-450. Utsch, A., & Rauch, A. (2000). Innovativeness and initiative as mediators between achievement orientation and venture performance. European Journal of Work & Organizational Psychology, 91, 45-63. Welsch, H., Liao, J., Pistrui, D., Oksöy, D., & Huang, W. (2003). Entrepreneurial Commitment, Sacrifice, Motivations and Growth Aspirations of Chinese Entrepreneurs. Paper presented at the 17th Annual USASBE National Conference (Proceedings), 23-25 January 2003, Hilton Head Island, South Carolina. Westhead, P., & Wright, M. (1998). Novice, portfolio, and serial founders: are the different? Journal of Business Venturing, 13, 173-204. Zacharakis, A. L., Meyer, G., & DeCastro, J. (1999). Differing perceptions of new venture failure: A matched exploratory study of venture capitalists and entrepreneurs. Journal of Small Business Management,, 37(3), 1-14. Zhao, H., & Seibert, S. E. (2006). The Big Five Personality Dimensions and Entrepreneurial Status: A Meta-Analytical Review. Journal of Applied Psychology, 91(2), 259-271. Zhao, H., Seibert, S. E., & Hills, G. E. (2005). The mediating role of self-efficacy in the development of entrepreneurial intentions. Journal of Applied Psychology, 90, 1265-1272. About the Authors Rahayu Tasnim is a doctoral student in entrepreneurship with the Faculty of Technology Management and Technology Entrepreneurship, University Teknikal Malaysia Melaka, Malaysia. She has an MBA in Technology Entrepreneurship. Her current interests include entrepreneurial development, focusing on the psychological aspects of entrepreneurship. She is now serving as an academician at the Netherlands Maritime Institute of Technology, Iskandar, Malaysia.

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Salleh Yahya is a professor at the Faculty of Technology Management and Technology Entrepreneurship, University Teknikal Malaysia Melaka, Malaysia. His current interests include entrepreneurial development and technopreneurship. Muhammad Nizam Zainuddin is a senior lecturer at Faculty of Management, Multimedia University, Malaysia. He holds an Mphil (Management) degree from Multimedia University, Malaysia. He is currently pursuing his PhD in the area of entrepreneurship education, creativity and innovation, entrepreneurial passion and entrepreneurial orientation.

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Factors Affecting Internationalization Decision Making in Family Businesses: An Integrated Literature Review Saeed K. Alkaabi, Abu Dhabi University Christopher Dixon, Abu Dhabi University Executive Summary International expansion represents an important strategic decision that family firms must make to expand and diversify. Different factors, both internal and external, influence the decision to internationalize. The purpose of this study is to review extant literature to examine the major factors affecting decision making with respect to the internationalization of family businesses and to identify the direction of the relations among the factors affecting such decision making. This paper looks at the constraining and driving factors that steer family business decisions toward internationalization and global success. The paper also discusses the reasons why inconsistencies exist in the research findings and how to eliminate them in future studies. Introduction Family businesses have traditionally operated in domestic markets, but an increasing number are now searching for growth opportunities in foreign markets (Fernandez & Nieto, 2005; Zahra, 2003). Internationalization is considered one of the most important strategies for firms’ growth and expansion (Graves & Thomas, 2008). The term internationalization has been widely used to describe the outward movement of a company to compete in an international environment (Zeng, Xie, Tam & Wan, 2008). Internationalization has many advantages including targeting new markets, obtaining economies of scale, and mitigating risk through diversifying (Gallo & Sveen, 1991). Multiple studies have examined the internationalizing behavior of large and small firms (Cerrato & Piva, 2007; Fernandez & Nieto, 2006; Senik, 2010; Simon & Hitt 2003; Tavares, 2012; Wang, 2010). However, few studies have examined the factors that affect decision making with respect to internationalization within family businesses (Zahra, 2003). Studies have observed that a great deal of inconsistency exists in addressing the factors that influence decision making regarding internationalization (Segaro, 2012). The available literature concerns studies that have been conducted in different countries and regions such as the US, China, and Europe (Graves & Thomas, 2006; Ibrahim, Soufani & Lam, 2003; Liang, Wang & Cuit, 2012; Senik, 2010; Tsang, 2001; Zahra, 2003). This paper looks at the constraining and driving factors that steer family business decisions toward internationalization and global success. Knowing that inconsistencies exist regarding these factors, this review outlines the reasons for these differences in findings and how to eliminate them in future studies. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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The findings review the available research in this field and provide suggestions on how to move the field forward. A practical framework integrates those critical factors that influence internationalization decision making in family businesses. It also provides a comprehensive understanding of how those factors affect the decision to internationalize. This framework may help family business owners to make better internationalization decisions because they will have a clearer understanding of the factors that either constrain or drive the internationalization of their businesses. This study contributes to existing knowledge by increasing the understanding of the internationalization of family businesses and by providing a summary and analysis of existing research on this subject. This paper is structured as follows: first, a brief introduction is provided of family business and internationalization. Second, the methodology used in the study is set out. Third, existing research is presented on family businesses and the factors affecting their decision making regarding internationalization. A summary of those factors are provided to demonstrate the findings. Finally, the conclusion of the study provides suggestions for future research. Introduction to Family Business In the global economy, family firms have a long-standing historical presence, representing the majority of all businesses worldwide; they are among the fastest growing areas of interest in today’s business world (Segaro, 2012; Tio & Kleiner, 2005). It is estimated that as many as 90% of all companies worldwide can be classified as family firms and that they contribute 70% to 90% of the global gross domestic product (GDP) (Family Firm Institute, 2014; Dyer, 2003). In the United States, family-owned companies constitute approximately 35% of Fortune 500 companies and 50% of the US GDP; approximately 95% of all companies in the United States are considered family-owned (Perman, 2006). In the UK, 65% of private sector enterprises are considered family firms whereas approximately 90% of the firms in Canada are either family-owned or family-managed (Ibrahim, Soufani & Lam, 2003; Capital Economics, 2008). Family Business Characteristics Looking at the characteristics of family firms will help in understanding and evaluating current thinking on family business strategic decisions. Family firm has been illustrated in diagrams by scholars to determine the relationships among all those involved in the business. Kemppainen (2011) reiterated how Shanker and Astrachan (1996) argue that, with regard to family business, the emphasis is not on whether the business is one family; rather, what is important is how bonded the family members are to the business. Family firms’ unique behavior is because of the overlap and interactions that arise from the integration of family and business (Habbershon & Williams, 1999; Sharma 2004). This observation was confirmed in a study by Ibrahim, McGuire and Soufani (2009) who observed that the overlap between the family and the business influences the success of the company. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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They added that the relations between family and business are overlapping and interconnected. This relation was initially presented theoretically by Tagiuri and Davis (1982). It is illustrated in the Venn diagram shown in Figure 1 as the interface between the family and the business.

Family

1 4

5

2 Owner

7 6

3 Management Figure 1 – Venn diagram describing the relation between the family and the business. Adapted from “Bivalent attributes of the family firm,” by Tagiuri, R., & Davis, J. A., 1982, Family Business Review, 9(2), 199-208. Adapted with permission.

The three components and their intersections have also been interpreted by different authors. Habbershon, Williams & MacMillan (2003, p. 453) observed in their research that “overlapping circles are useful organization behavior models for describing the complex individual and organization phenomena associated with the overlapping subsystems and for identifying the stakeholder perspectives, roles and responsibilities.” Rettab and Azzeddine (2011) gave a simple interpretation of the diagram by stating that it comprises three components and four overlapping areas that create seven possible connections and each area is tied to some degree of influence. Family involvement in management and family ownership are not clearly differentiated and are often viewed as indistinguishable from one another (Fernandez & Nieto, 2006; Graves & Thomas, 2006). Segaro (2012), citing Chua, Chrisman and Sharma (1999), stated that the uniqueness of a family firm comes from its ownership, governance, management and succession, all of which substantially influence the firm's objectives, strategies, organization and the way in which each is framed and implemented. Liang, Wang & Cui (2012) observed that even family firms can have extensive family involvement without a high percentage of ownership and vice versa. Both involvement and ownership highlight the influence the family has on a family business. Ownership promotes the long-term planning required for the firm to continue successfully across multiple generations (Zahra, Hayton & Salvato, 2004). Owners who are involved as managers within the firm have the power to make decisions quickly with regard to the firm’s operation (Zahra, 2003). Patel, Pieper and Hair (2012) state that family members’ involvement in the business enhances responsibility and trust and provides unique resources that non-family firms lack such as access to cheaper labor and financial resources. In addition, family ownership increases the willingness for the family business to take greater financial risks The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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particularly when a potential loss is foreseen (Liang, Wang & Cui, 2012). A unique collection of resources result from family involvement such as human capital, social capital, and financial capital (Sirmon & Hitt, 2003). Internationalization The Internationalization of a Family Business The term internationalization is widely used to describe the outward movement of international operations of a company (Graves & Thomas, 2008; Zeng, Zie, Tam & Wan, 2008). Owners of businesses can grow their firms in many ways such as opening new locations, diversifying, expanding internationally, etc. (Spaeder, 2004). Such expansion may open doors for a family firm to enter new markets in which customers have different needs and their new competitors may offer a variety of different products (Gallo & Sveen, 1991). Definition of Internationalization Internationalization is defined by many scholars and has been presented in a number of models. In an in-depth study, Senik (2010) cited different research definitions for internationalization. He quoted Beamish (1990, p.77) as stating that internationalization is a “process where firms start by increasing their awareness of direct and indirect influences of international transactions on their future, before moving on to establish and conduct transactions with other countries.” Naidu, Cavusgil, Murthy & Sharkar (1997, p.115) state, “Internationalization is a gradual process whereby a firm develops a network of global trade relationships”. Based on his findings, Senik (2010, p.36) defined internationalization as “the process through which a firm moves from operating in its domestic market place to international markets by adapting the firms’ operations such as strategy, structure and resources, to the international environment.” Internationalization Theories Studies have examined the process of internationalization of family businesses to understand the connection between the nature of family businesses and their internationalization behavior. Indeed, internationalization has become an important research topic (Graves & Thomas, 2008). Companies internationalize their businesses in many different ways (Segaro, 2012). These studies have identified an incremental process of internationalization supporting Uppsala’s incremental/stages model of internationalization (Graves & Thomas, 2008). Graves & Thomas (2008) reviewed the literature of small business internationalization and observed that various theoretical frameworks have been utilized, including transaction cost theory, stage model

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theory, network theory, eclectic paradigm, and resource-based view. These theories offer theoretical interpretations of the process of business internationalization. One of the major internationalization theories is from the Uppsala School (Johanson & Vahlne, 1977). This theory states that exporting involves a learning process that will enable a firm to acquire a deeper knowledge of the nature of new markets and how to proceed. The new knowledge will provide the firm with the necessary information to keep expanding abroad with a lesser degree of uncertainty (Fernandez & Nieto, 2005). This theory explains the characteristics of the internationalization process of a firm. Johanson and Vahlne (1990) recognized that the stage model of internationalization states that firms may select foreign markets based on psychic distance or degree of foreignness defined by culture, language, politics, etc. Johanson and Vahlne’s (1990) study observed that when firms begin their foreign operations, they prefer to move into neighboring countries before they expand into more distant global markets. This trend is based on the assumption that businesses in neighboring countries are easier to understand, thus making business operations easier to implement. Firms develop their activities abroad over time (Kontinen, 2011; Whitelock, 2002). Because of the many critiques of this model and the changes in the economic and regulatory environment, this theory was revised in 2009 by adding the concepts of trust building and knowledge creation via relationships and networks (Johansen and Vahlne, 2009). Recently, the main critique of this model is that it does not support the internationalization of services and e-commerce companies (Laacks, 2010). Another view of internationalization is network theory that was developed in the 1980s. It is one of the most popular theories because it considers that internationalization can be accomplished or enhanced by creating relationships abroad. This enhancement could be accomplished by increasing knowledge about the foreign country and by facilitating the transaction through reduction of investment cost and time of process integration (Hosseini & Dadfar, 2012; Senik, Scott-Ladd, Entrekin & Adham, 2011). Transaction Cost Economics is also concerned with internationalization. In this theory, firms internationalize because they pose advantages over other companies in the targeted market in terms of access to “superior technology or knowledge edge, products, processes, or patents, better access to capital, and superior corporate governance” (Lubinski, Fear & Perez, 2013, p. 6). However, this theory has been challenged because it does not support or respond differently for firms whose internationalizing costs are minimal such as services companies (Brouthers & Brouthers, 2003). Some scholars argue that resource-based theory has emerged to replace the Transaction Cost Economics approach (Parmentola, 2010). In this theory, firms chose the appropriate internationalization mode of entry based on a combination of resources: financial, human, tangible, and intangible (Barney, 1991; Parmentola, 2010). Many other theories address internationalization such as born global, monopolistic advantage, non-availability approach, eclectic paradigm, foreign direct investment (FDI) … etc. They all provide theoretical explanations as to why and how companies internationalize. Scholars argue that the way companies internationalize is different from what it used to be The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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because of the changes in external conditions. For example, FDI used to be mainly in the form of green field projects where companies would start their operations from the ground up. Nowadays, companies tend to follow mergers and acquisitions (M&A) strategies where a company buys or acquires an existing company (Rugman, 2008). Rugman and Verbeke (2005) suggested that internationalization theories address the entry mode choices. However, some scholars claim that internationalization theories are developed within a certain environmental context, and thus entry mode theories are inadequate to explain the behavior of firms (Axinn & Matthyssene, 2002). For example, Zaniewska (2012) summarized the internationalization theories by claiming that family firms tend to follow the network model when entering a new market because family firms’ dealings are based largely on trust. Conversely, some family firms follow the Uppsala model because they must follow a stepwise process beginning with choosing nearby countries. In addition, some firms, such as fashion brands, follow the “born global” model in which they internationalize rapidly or suddenly (Segaro, 2012; Zaniewska, 2012). Hosseini and Dadfar, (2012), argue that in order to explain the internationalization strategies and process, we need to apply more than one theory. Therefore, some companies use a combination of the above strategies (Axinn and Matthyssene, 2002). The following table is presented by Hosseini and Dadfar (2012) to summarize some of the internationalization theories that are mainly linked to networking and their empirical research applications: Theory

Application

Relationship approach

Selecting international partner, foreign market and entry mode

Social Network Analysis

Recognition of international opportunity, selecting new market, international performance, and internationalization speed.

Network Mapping Technique

Justification of internationalization life cycle

IMP Interaction Approach

Countertrade internationalization

ARA-Model

Countertrade internationalization

Network Embeddedness Approach

Life cycle internationalization

Network-based Approach

Internationalization process

Revised Uppsala Model

Internationalization process

Table 1: Theory and applications. Adapted from “Network based theories and internationalization of

firms: applications to empirical studies,” by Hosseini, M. & Dadfar, H., 2012, The Business and Management Review, 3(1), 182-191. Adapted with permission.

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Methodology This research follows the systematic review approach discussed in Tranfield, Denyer, & Smart (2003). Therefore, it starts with planning the review, then conducting the review, and finally reporting on the findings. In this article, the focus is based on identifying those factors that affect internationalization decision making in family businesses. More than twenty articles are examined from peer-reviewed journals. Among the search engines and databases used were Emerald, EBSCO, ProQuest, and Google Scholar. The keywords used to identify relevant articles included internationalization of family business, internationalization, family business decision making, expansion of family business, and multinational family business. Many articles were removed from the study because they were irrelevant to the study or not peer-reviewed. The data that were extracted from the reviewed articles are related to the factors that affect the decision to internationalize family businesses. For the purpose of this review, the type of research analysis conducted and the geographic location of the studies were also identified. Literature Review In the literature, the factors that affect decision making regarding the internationalization of a family business have been argued by many scholars (Kontinen & Ojala, 2011). Risk Aversion: Patel, Pieper, and Hair (2012) observe that risk aversion hinders family firms from global expansion because of their needs for stability. As far as family businesses are concerned, their risk-averse nature and desire to maintain total control over the business leads to hesitation among owners and family members to raise financial capital particularly loans (Graves & Thomas, 2008). Also, entrepreneurial orientation involves strategic intentions and top management’s actions such as propensity for risk-taking, levels of innovation, and ability to recognize opportunities (Smart & Conant, 1994, as cited by Senik, 2010). Senik (2010) adds that this orientation explains the willingness to take risks in pursuing business goals (Miles & Arnold 1993). Senik (2010) also cites the arguments of Becherer and Maurer (1997) and Prashantham (2004) that high levels of entrepreneurial orientation give the firm’s growth a push and results in better performance by allowing the firm to grab the opportunity to internationalize. The aversion of most family firms to risk prevents them from seizing entrepreneurial opportunities, thus they fail to proceed with international growth strategies (Cerrato & Piva, 2007). Zahra (2005) observes that family firm owners and managers must engage in substantial risk taking and have experience in assessing the risks and rewards of internationalization to expand globally. Close families prefer to take fewer risks rather than choose to internationalize or be involved at a lower level (Fama and Jensen, 1983, as cited by Wang, 2010). The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Author

Article title

Outcome

Italy

The internationalization of small and mediumsized enterprises: The effect of family management, human capital and foreign ownership

Family businesses’ aversion to risk prevents entrepreneurial opportunities from being seized, hence negatively affecting international growth strategies.

Patel et al., 2012

N/A

The Global Family Business: Challenges and Drivers for Cross Border Growth

Risk aversion negatively affects internationalization.

Zahra, 2005

USA

Entrepreneurial RiskTaking in Family Firms

Risk aversion negatively affects firms’ global expansion.

Cerrato & Piva, 2007

Country

Table 2: Summary of the effect of risk aversion on internationalization of family business

Financial Capital: Yrkkö, Rouvinen, & Ylä-Anttila (2007) observed that family businesses are less keen to expand their business activities because of financial limitations. Because family members invest their financial capital in the firm, they are more conservative and cautious when deciding whether to internationalize because they cannot easily afford financial losses (Wang, 2010). Therefore, family firms with strong financial capital are more likely to internationalize successfully over the long term (Zaniewska, 2012). Author Graves & Thomas, 2008

Wang, 2011

Yrkkö, Rouvinen, & Ylä-Anttila 2007

Country

Article title

Outcome

USA

Determinants of the internationalization pathways of family firms

Hesitation among owners and family members to raise financial capital by loans negatively affects internationalization.

China

Correlates of family business internationalization

A high proportion of wealth in a firm leads to the firm’s becoming more conservative and cautious when deciding whether to internationalize because of financial losses related to internationalization, therefore affecting the firm negatively.

Finland

Family business and globalization in Finland

Family businesses are less keen to expand their business activities because of financial limitations, hence negatively affecting internationalization.

Table 3: Summary of the effect of financial capital on internationalization of family business

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Human Capital: Human capital is considered crucial to the exploitation of business opportunities (Cerrato & Piva, 2007). Human capital is related to human resources education, training, qualifications, experience and technical abilities (Ashton and Green, 1996, as cited by Cerrato & Piva, 2007). In family firms, human capital is complicated because of the dual nature of the relationships: Family members engage in both business and family relationships in both their professional and personal lives. This has both positive and negative effects on the decision to internationalize (Sirmon & Hitt, 2003; Yrkko, Rouvinen, & Ylä-Anttila, 2007). To strengthen the family business, owners must consider hiring highly qualified non-family managers to expand on internal competencies to help grow the business through internationalization (Cerrato & Piva, 2007). Graves and Thomas (2006) observed that although family firms have fewer managerial capabilities than non-family firms; nevertheless, they are able to reach a high degree of internationalization. Employees’ level of education is considered an important attribute although having a specific qualification does not necessarily mean possessing the necessary skills and vice versa (Cerrato & Piva, 2007). Author

Cerrato & Piva, 2007.

Simon & Hitt 2003

Yrkkö Rouvinen, & Ylä-Anttila 2007

Country

Title

Outcome

Italy

The internationalization of small and medium-sized enterprises: The effect of family management, human capital and foreign ownership

Hiring highly qualified managers or hiring nonfamily managers positively supports expansion of the internal competencies that help grow the business and internationalize.

N/A

Managing resources: Linking unique resources, management, and wealth creation in family firms

Hiring family members and not firing them because of incompetency negatively affects international expansion and will deny the firm the opportunity to have competent staff that will move the business toward globalization.

Finland

Family business and globalization in Finland

Family businesses are less keen to expand their business activities because of human capital. This has a negative effect on internationalization.

Table 5: Summary of the effect of human capital on internationalization of family business

Network: Networks can help family businesses develop access to international markets by obtaining support that would reduce uncertainty and also increases awareness of potential threats and opportunities in the market. These networks and collaborative relationships therefore

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positively affect the internationalization of entrepreneurial family businesses (Cabrera-Suárez & Olivares-Mesa, 2012). Author Cabrera-Suárez and OlivaresMesa, 2012

Country

Title

Outcome

Italy

Family firms' resources and the timing of the export development process.

Networks and collaborative relationships positively affect the internationalization of entrepreneurial family businesses.

Table 5: Summary of the effect of network on internationalization of family business

Family Firm Characteristics: The characteristics of family firms play a role in influencing the decision to internationalize. Characteristics include family size, the owner’s age, products, the firm’s industry, ownership status, and the location of the operation (Senik, 2010). According to Tsang (2001), who conducted his research on a large Chinese multinational company that operates in China and Singapore, founders are heavily involved and in full control of the internationalization process. Founders review every opportunity and thus influence the internationalization process. By contrast, in a study conducted on two large Brazilian family companies, Tavares (2012) observed that founders of larger, more structured family firms have less influence on the internationalization process whereas small and medium-sized family companies are more influenced by the family owners. Author

Country

Title

Outcome

Brazil

The family role in the internationalization process of family business

Large and more structured family firms have less influence on the internationalization process whereas small and medium family companies are influenced more by the family owner. No direction to the relation was presented.

Senik, 2010

Malaysia

Models, Processes, and Factors influencing internationalization: the case of Malaysian SMEs

Personal characteristics of key players and manager such as age, gender, background, education abroad, foreign work experience, international experience, and foreign language knowledge play a positive role in the decision making for internationalization.

Tsang, 2001

China

Internationalizing the family firm: A case study of a Chinese family business

Large family firms have more influence on internationalization.

Tavares, 2012

Table 6: Summary of the effect of family firm characteristics on internationalization of family business

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Family Involvement From the characteristics of family businesses, what makes family firms unique and complex is ownership involvement in the business. One of the theories that is concerned with strategic decision making in family businesses is agency theory that was first introduced to explain the relationship between the owners (principles) and management (agents) of the company (Duh, 2010). In family businesses, some of the family members are the agents. Owners will make decision that will increase their personal wealth, which might contradict with maximizing their companies’ business (Craig & Lindsay, 2002; Duh, 2010). In this theory, owners might take less risky investment decisions and sometimes avoid risky ones to increase the utility of family members (Miller, Jangwoo, Sooduck, & Le Breton-Miller, 2009). In other words, some decisions might not be good for the other owners and this is usually the fight between the majority and minority shareholders. Owner agents will make decisions that are biased and could lead to agency problems (Zahra, 2003). The alternative view of agency theory is stewardship theory. In this theory, stewards attempt to increase not only their interest, but the interests of other shareholders of the company by increasing the return and maximizing the value of the company by acting as if they were the owners (Craig & Lindsay, 2002; Miller et. al., 2009; Segaro, 2012). Zahra (2003) states that involvement positively supports internationalization because family-managers will act as stewards of the existing resources. On the other hand, Fernandez and Nieto (2006) observed a negative relationship. Graves and Thomas (2006) observed that family businesses internationalize with smaller top management teams and, despite having less managerial capabilities when compared to nonfamily businesses, family businesses were nevertheless able to achieve a high degree of internationalization. Zahra and Sharma (2004) raised the point that if a family firm is reluctant to hire external managers in order to maintain decision-making control within the family, the company will develop a lack of competent, open-minded and experienced managers, and this behavior can be a strong limitation to internationalization. Ownership Wang (2010) cited Fama (1980) and Jensen and Meckling (1976) in observing that, based on agency theory, a firm’s entrepreneurial venturing is influenced by its ownership structure, and the family owner-managers tend to take fewer risks and choose not to enter international markets. He observed that policy makers, academics, and practitioners are unclear regarding how family businesses initiate and develop internationalization. He also observed that some unique factors related to family businesses that affect internationalization behaviors had not been identified. Therefore, he conducted a quantitative study based on 263 companies to address the correlations among internationalization in family businesses, the relations between individual and familial variables and business’ internationalization propensity and intensity, and to identify the relationship between internationalization intensity and business performance. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Author Fernandez & Nieto, 2006 Graves & Thomas, 2006

Kontinen, 2011; Zahra, 2003.

Tsang, 2001

Zahra, 2003

Country

Title

Outcome

Spain

Impact of ownership on the international involvement of SMEs

Involvement in management is negatively related to the degree of internationalization.

Austria

Internationalization of Australian family businesses

The association between managerial capabilities and internationalization was not evident. No direction to the relation was presented.

Finland, USA

Internationalization pathways of family SMEs; International expansion of US manufacturing family business: The effect of ownership and involvement

Considerable positive association was found between the degree of family involvement and internationalization.

China

Internationalizing the family firm: A case study of a Chinese family business

When founders are heavily involved, they are in full control of the expansion process by reviewing every opportunity, thereby influencing the internationalization process. No direction to the relation was presented.

USA

International expansion of US manufacturing family business: The effect of ownership and involvement

Involvement positively supports internationalization but negatively affects the number of countries entered.

Table 7: Summary of the effect of family involvement on internationalization of family business

Zahra (2003) cited Schulz (2001) to observe that internationalization is important for a family firm’s long-term success. In Zahra’s (2003) study based on 409 US manufacturing firms, different factors influence the decision to internationalize. His analysis shows the main factor to be ownership, which determines the degree and geographical scope of internationalization. Notably, Zahra argues that family involvement has a mixed effect on internationalization. His analysis of the acquired quantitative data shows family involvement in management to be positively and significantly associated with international sales. Therefore, Zahra concluded that ownership and involvement support internationalization because family-managers act as stewards of existing resources. Conversely, family involvement negatively affects the number of countries entered. Recent research suggests that a strong relationship exists between ownership and the internationalization of family businesses. The roles and types of family ownership have been increasingly studied in family business internationalization literature (Fernandez & Nieto, 2006; Zahra, 2003). Family business ownership significantly influences strategic decisions because of its unique characteristics (Gallo, Arino, Manez & Kristin, 2004). Using a wide sample of Spanish small medium-sized enterprises (SMEs), Fernandez and Nieto (2005) explored the internationalization strategy of SME family businesses. They suggested that exporting is not a good measure of internationalization. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Author

Country

Wang, 2010

China

Fernandez & Nieto, 2005

Spain

Zahra, 2003

Gallo, Arino, Manez, & Kristin, 2004

Title

Outcome

Correlate of family business internationalization Internationalization strategy of small and medium-sized family businesses: Some influential factors

Degree of ownership influences internationalization. No direction to the relation was presented.

USA

International expansion of US manufacturing family business: The effect of ownership and involvement

Spain

Internationalization via strategic alliances in family business

Liang, Wang, & Chi, 2012

China

Zahra, 2003

USA

65

Internationalization of Chinese private firms: The effect of family involvement in management and family ownership International expansion of US manufacturing family business: The effect of ownership and involvement

A negative relation was found between ownership and internationalization.

Ownership positively supports internationalization.

Family business ownership significantly influences strategic decisions because of its unique characteristics. No direction to the relation was presented. Ownership may affect the process of strategic decisions including internationalization decisions. No direction to the relation was presented.

Ownership of a business positively correlates with internationalization.

Table 8: Summary of the effect of ownership on internationalization of family business

Governance Liang, Wang, and Cui (2012) stated that a growing body of research has observed that a firm with significant family control is unique in its ownership and governance systems. The resulting management practices and organizational culture may affect the process by which these firms make strategic decisions, including internationalization decisions (Cerrato & Piva, 2007; Corbetta & Montemerlo, 1999; Erdener & Shapiro, 2005; Fernández & Nieto, 2006; Graves & Thomas, 2006; Sanders & Carpenter, 1998; Zahra, 2003; Zahra, Neubaum, & Naldi, 2007). Zahra (2003) observed that family ownership of a business and its systems of governance, with the involvement of family members in management, positively correlates with internationalization both with the percentage of foreign sales and with the number of countries in which a firm operates. Additionally, in a study conducted in Sweden, Naldi and Nordqvist (2008) observed that a relationship exists between the degree of openness of a family firm’s governance structure and internationalization. Moreover, the expansion across foreign markets is favorably affected by opening all levels of the firm’s governance structure. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Author

Liang, Wang & Cui, 2012

Naldi & Nordqvist, 2008

Zahra, 2003

Country

Title

Outcome

China

Internationalization of Chinese private firms: The effect of family involvement in management and family ownership

Governance systems may affect the process of strategic decisions including internationalization decisions. No direction to the relation was presented.

Sweden

Family firms venturing into international markets: A resource dependence perspective

Governance structure positively influences expansion across foreign markets.

USA

International expansion of US manufacturing family business: The effect of ownership and involvement

Governance positively correlates with internationalization.

Table 9: Summary of the effect of governance on internationalization of family business

Generational Succession Succession is considered a factor unique to family businesses. It affects the movement of firms into international markets with newer generations being perceived as having a positive influence on internationalization (Zaniewska, 2012). The importance of family generational issues when trying to understand the international activities of a firm were highlighted in Fernandez and Nieto (2005). They concluded that second and third generations are more likely than the founding generation to begin exporting in family SMEs. In 2006, they studied more than 10,000 Spanish manufacturing companies and concluded that family firms with subsequent generations showed a greater export propensity and intensity than the first generation. Conversely, Fernandez and Nieto (2005) observed that the second and following generations have more information and are better prepared, which encourages internationalization and supports international involvement. Fernandez and Nieto (2005) believe that internationalization is associated with the controlling generation and that the first generation is less likely to internationalize. Gallo and Sveen (1991) stated that both the first and second generations of family businesses are slower to internationalize than non-family businesses. Graves and Thomas (2008) observed that the vision and qualities of the successor and commitment to internationalization are interrelated. Conversely, second and third generations are more likely to internationalize because experience and expertise in international markets can be passed on to succeeding generations. They concluded that the degree of ownership influences internationalization propensity and intensity. Fernandez and Nieto (2005) argued that the second and subsequent generations are more likely to internationalize because of the greater likelihood The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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that they will acquire the ability and knowledge about global options that the founders did not have. In addition, later generations have higher export propensity and intensity than the first generation. Author Fernandez & Nieto, 2005

Gallo & Sveen, 1991

Graves & Thomas, 2008

Zainewsak, 2012

Country

Title

Outcome

Spain

Internationalization strategy of small and medium-sized family businesses: Some influential factors

Second and subsequent generations are more likely to internationalize. These generations have a higher and more positive export propensity and intensity than the first generation.

N/A

Internationalizing the family business: Facilitating and restraining factors

First and second generation family businesses are slower to internationalize than non-family businesses, which negatively affects global expansion.

USA

Determinants of the internationalization pathways of family firms

Second and third generations are more likely to support internationalization positively.

N/A

Determinants of family business internationalization: Review of existing research

Succession has a positive effect on penetrating the international market, with newer generations having a positive influence on internationalization

Table 9: Summary of the effect of generational succession on internationalization of family business

Discussion and Findings It is clear that the limited research papers available have presented similar as well as different influential factors affecting the decision to expand family businesses outside their home country. Available research shows that factors affecting the decision to internationalize are varied and include risk aversion, human and financial capital, ownership, involvement, firm, social capital, network, governance, and generational succession. Some studies delivered findings based on specific factors. Based on this review, nine factors affect the internationalization decision making. The directions of the relationship were presented as negative or positive. Some articles suggested the influence of certain factors, but without stating the direction of the relationship. Additionally, many inconsistent findings were observed. For example, the research conducted by Zahra (2003) and Fernandez and Nieto (2005) is contradictory. Zahra, using an empirical approach, observed that ownership and family members’ involvement support internationalization. Conversely, Fernandez and Nieto provided empirical support to show that ownership negatively affects internationalization. Family involvement negatively affects the number of countries entered. As The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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shown by Zahra’s (2003) study, the more involved family members are, the less likely they are to expand effectively. Conversely, Tsang (2001) showed that founders are heavily involved and in full control of the internationalization process. Because they review every opportunity, they have an influence on the process. Tavares (2012) observed that larger, more structured family firms have less influence on the internationalization process whereas smaller and medium-sized family companies are influenced more by the family owner. Conversely, larger organizations are more likely to hire qualified managers or hire non-family managers, which in turn supports expansion of the business internationally (Cerrato & Piva, 2007). Graves and Thomas (2006) disagreed with Cerrato and Piva by stating that family firms, having less managerial capability than non-family firms, are nevertheless able to achieve a high degree of internationalization. There is a downside to hiring family members as stated by Sirmon and Hitt (2003). Not being able to terminate family members and replace them with competent staff limits firms from moving toward internationalization. This finding was confirmed by Zahra and Sharma (2004). They observed that the reluctance to hire external managers to keep decision-making control within the family hinders internationalization. Therefore, the conclusion is that scholars have not agreed on the effect of human capital on internationalization decision making in family businesses. Inconsistencies in the literature have also been noted when studying succession. Fernandez and Neito (2005) observed that second and subsequent generations are more likely to internationalize because these generations have higher export propensity and intensity than the first generation. However, Gallo and Sveen (1991) reported that the first and second generation owners of family businesses are slow to internationalize compared with non-family businesses. Therefore, no consensus exists as to which generation is most in favor of internationalization. Factor

Positive

Negative

No direction

Risk Aversion Financial Capital Human Capital Network Family firm characteristics Family involvement Governance Generational succession

0 0 11 1 2 2 2 3

3 3 2 0 0 1 0 1

0 0 0 0 1 2 1 0

Table 10: Number of articles that represent the factors affecting internationalization 1

Regarding human capital, the study that showed a positive relationship between human capital and internationalization was based on hiring non-family business. It did not discuss human capital in family businesses in general. Therefore, the finding could be disregarded in this review.

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In the studies reviewed, Zahra conducted his research in the US whereas Fernandez and Nieto studied the Spanish market. The study conducted in China showed the strong influence of the owner on a multinational family firm whereas a study in Brazil concluded that large family companies are less influenced by ownership in regard to expansion outside their countries. Some of the findings in the previous research did not address the direction of the relationship between the dependent and independent variables. For example, Wang (2010) addressed the correlation between ownership and internationalization. He mentioned that an influence was observed without specifying whether that influence is positive or negative. Tsang (2012) mentioned that when founders are heavily involved, they are in full control of the expansion process. By reviewing every opportunity personally, they directly influence the internationalization process. Here again the author did not specify the direction of the relationship. The following table summarizes the relationship of the factors that influence internationalization decision making in family business based on the reviewed articles.

Conclusion This paper has explored some of the major factors affecting internationalization decision making based on available literature. Factors affecting decision making for internationalization in family businesses have been of major interest in recent years although such research is still in its early stages. It is clear that more research must be conducted on this complex topic. It was found in this review that some of the factors that affect internationalization are consistent such as risk aversion and financial capital. In the reviewed articles, it was found that these factors affect internationalization negatively. On the other hand, some factors were found to be inconsistent such as family involvement and generational succession. Many reasons explain the inconsistency in the findings. Naldi and Nordqvist (2008) observed that the reason for the variance in researchers’ findings is dependent on the definition of family firms that was used in the study. Another reason for the inconsistency is that industry characteristics ultimately affect the decision to internationalize because such characteristics influence the firm’s structure (Lyder, 2009). With the knowledge of the factors affecting family businesses, it can be said that the manner in which a strategic decision is addressed will vary from one country and one culture to another, Therefore, studying identical characteristics in a set of firms would result in identification of the factors affecting global expansion for a specific culture and country. Lyder (2009) observed that scholars have debated the importance of industry characteristics when making a decision to internationalize. Some scholars stated that specific characteristics of the type of industry (goods or services) have an effect. The available literature is based on different industries, different firm sizes, different geographical locations, different generational levels, and level of involvement. The drivers for service companies to internationalize are not necessarily identical to the drivers that affect manufacturing companies. Martinsons and Davison (2007) study of strategic decision making and support systems concluded that in regard to factors affecting the manner in which firms address strategic The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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decisions, national differences must be recognized. They further observed that differences appear between US-based firms and Chinese-based and Japanese-based firms with regard to the drivers behind strategic decision making. On one hand, American businesses demonstrate a strong drive for achievement, performance orientation and creating new opportunities whereas Chinese and Japanese businesses focus on personal power, affiliations and established relationship preservation. This finding was confirmed by Cerrato and Piva (2007) who concluded that previous studies on internationalization of family businesses are country-specific and cannot be generalized. Therefore, the inconsistencies in the findings may be because of the geographical locations of the firms. In addition, the barriers to internationalization in the US are not essentially the same as for Japanese or Middle Eastern family companies. It is incorrect to judge existing research as right or wrong because many missing elements have yet be addressed when identifying reasons for the internationalization of a family business. Internationalization theories suggest that firms internationalize differently. For instance, the Uppsala school claims that companies internationalize gradually while other companies follow the born global approach and internationalize immediately. Therefore, it is clear from the articles reviewed and comparing their finding to the internationalization theories that internationalization decision making is industry and product specific. For example, it was clear that services companies internationalize differently because they are less dependent on financial capital. They are mainly dependent on human capital (Laacks, 2010). Implications and Recommendations The first recommendation of this study is that future research should look at studying each factor separately. For example, financial capital as a factor that might affect internationalization of family firms should be studied and analyzed rather than why companies internationalize. It is important to research the effect of these factors on firms’ internationalization decisions. This approach will provide a deeper understanding of the real effect of these factors in the internationalization’s phenomena. In addition, it is advisable to conduct studies on similar industries and similar products or services in order to minimize the effect of the industry or the product on the decision to internationalize. For example, conducting future empirical studies on services industries only or manufacturing industries only will provide more concrete findings that will eventually help both practitioners and scholars. Finally, because the purpose is to find the factors that affect internationalization decision making in family businesses, future studies should include decision making theories such as rational model, the model of bounded rationality, the incremental view, the organizational procedures view, the political view, …etc. that are relevant to family businesses in order to provide a better explanation of how factors affect the process of decision making. Future research should analyze the factors in the theories of decision making and investigate whether they are part of the decision process. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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About the Authors Saeed K. Alkaabi is a DBA student at the University of Abu Dhabi. He currently works at ASCORP Holdings p.s.c. in the United Arab Emirates (UAE) in the capacity of Group CEO. He serves as a board member in many companies in the UAE. Alkaabi earned a Computer Engineering and Computer Science degree from the University of Southern California in 2000. Alkaabi also holds an MBA with honors from UAE University in 2006. Christopher Dixon is an Associate Professor in Human Resource Management with the College of Business Administration, University of Abu Dhabi. He has 30 years of international experience in the petroleum, gas, continuous process and related energy business in the capacity of line manager and consultant. He has conducted training courses in the public sector including the Hong Kong Police and Civil Service, and he has worked in 9 countries in Europe, the Arabian Peninsula and Asia Pacific regions. He obtained his Ph.D. from the City University Hong Kong where he researched issues of organizational development and learning. As an academic and trainer he is experienced in teaching and facilitating management courses and leading teams to lead themselves as they transfer their skills from the training environment to the workplace.

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Beyond the Organizational Bounds in CE Research: Exploring Personal and Relational Factors in a Flat Organizational Structure Deborah V. Brazeal, California State Polytechnic University, Pomona Mark T. Schenkel, Belmont University Suresh Kumar, Nexage Technologies USA Inc. Executive Summary Much of the corporate entrepreneurship (CE) literature focuses on strategicallyconceptualized organizational-level factors in support of widespread entrepreneurial action through overhauling multi-layered organizations. We extend the literature by examining CE in a flat organizational structure; and investigating the interplay between organizational factors, creative self-efficacy (CSE) and leader-member exchange (LMX) as unique lens to frame organizational efforts for sustained innovations. Results show organizational factors of work discretion and creative time availability were related to innovative activities inside normal working hours while creative time availability was related to innovative activities inside and outside normal working hours. Consistent with the central thesis guiding this investigation, results further show CSE mediated the organizational factors-innovative activities relationship. Implications for future theory and practice are discussed. Introduction “You can’t always plan for innovation. The best companies create multidisciplinary cultures where a spark of innovation can occur anywhere in the organization. What’s more, those companies react nimbly when the unexpected does happen and turn that momentary spark into something of lasting value.” – Tom Kelley, IDEO A significant body of research in Corporate Entrepreneurship (CE) indicates that imbuing organizations with innovation, vision and creativity is a pervasive, effective means to grapple with constant environmental change and create a sustainable competitive advantage (Bettis & Hitt, 1995; Dess, Lumpkin, & McGee, 1999; Hitt, Ireland, Camp, & Sexton, 2002; Ireland, 2001). Relevant findings in the extant CE literature emphasize conditions that support the strategic transformation of rigid and static organizations into more dynamic learning entities, including the identification of pro-entrepreneurial architectures (Ireland, 2001), entrepreneurial organizational cultures (Brazeal, 1993; Hornsby, Kuratko, & Montagno, 1999; Kuratko, Montagno, & Hornsby, 1990) and strategic postures geared towards innovation and creativity (Covin & Slevin, 1989, 1991; Hornsby et al., 1999; Kuratko et al., 1990). Collectively, this work suggests that successful sustained regeneration (Dess, Ireland, Zahra, Floyd, Janney, & Lane, 2003) of novel products, processes and technologies is most often a deliberate, strategic choice orchestrated through structural and internal organizational factors such as “free” time for creative The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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pursuits and monetary rewards for innovations (Kuratko, Montagno, & Hornsby, 1990; Marvel, Griffin, Hebda, & Vojak, 2007; Sathe, 1985; Sykes, 1986). Thus, what precipitates individuals to intentionally act on the belief they can contribute to the innovative capacity of their organizations is a key question of interest. The CE literature has largely considered this question through the lens of cultural ubiquity, assuming that management efforts to support innovation through factors such as monetary rewards, time, and decision-making discretion (e.g., Hornsby, Kuratko, Shepherd, & Bott, 2009; Hornsby, Kuratko, & Zahra, 2002) provide sufficient impetus for all organizational members across multiple structural tiers. Yet why it is some people are likely to engage in innovative behavior whereas others are not remains incomplete at least in part because CE theory has largely been developed in primarily hierarchical, top-down settings. Moreover, approaching the issue of individual innovation by focusing on hierarchy tends to lead to an over-structuralized theoretical view of individuals’ intentionality (Hindle, Klyver, & Jennings, 2009) that underplays other potentially important personal and relational influences reflected in their innovative state of mind. We posit that considering CE factors in a flat organizational structure might be useful to the already substantial dearth of CE research through examining personal (creative self-efficacy or CSE) and relational (Leader-Member Exchange or LMX) variables in a context that allows for closer interaction and alignment with the CEO’s vision. There is a small, emerging body of empirical evidence to support the conceptual underpinning of our position. Specifically, recent evidence suggests that organizational-level factors are not equally motivating, supportive to all, or effective across corporate infrastructures (Hornsby, Kuratko, Shepherd & Bott, 2009). Middle managers, for instance, arguably vary in their willingness to endorse, refine, and shepherd entrepreneurial opportunities. Because they play important shepherding (i.e., championing, nurturing, and guiding) roles (Kuratko, Ireland, Covin, & Hornsby, 2005), how they relate to subordinates appears to be a potentially fundamental aspect to generating the necessary individual volition to undertake innovative endeavors. Yet research focusing explicitly on the role and quality of the relationship between leaders and followers in corporate entrepreneurial activity remains relatively sparse (Tierney & Farmer, 2004), Finally, self-efficacy has been widely investigated in the entrepreneurship literature primarily as a person-centric antecedent variable that markedly impacts entrepreneurial intentions either directly or as a proxy for perceived feasibility of start-up activities (Krueger, 1993; Kruger & Reilly, 2000). Yet relatively little is known about self-efficacy in a creative context (Tierney & Farmer, 2004). Given creative self-efficacy could serve as an important psychological mechanism that may empower organizational participants to act as “motivated tacticians” (Sorrento & Roney, 2000) seeking to utilize creative thinking skills to impact perceived entrepreneurial activities in a corporate context (Tierney & Farmer, 2004), research focusing on furthering the understanding of its precursors is important. In short, CSE may garner importance and interest as an action-based construct that fosters organizational change even in non-supportive conditions (Brunsson, 1985).

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Purpose In the current study, we examine the independent and combined influence of proentrepreneurial organizational factors, personal beliefs on innovative activity (CSE), and dyadic relationships between leaders and followers within the context of a flat organizational structure. We seek to determine what kinds of pro-entrepreneurial organizational factors might impact creative self-efficacy and the extent to which employees spent time both inside and outside the organization brainstorming, inventing and designing new products, services, processes, or technologies; as well as how dyadic relationships between leaders and followers might strengthen the link between creative self-efficacy and innovative behaviors. Percentage of time spent brainstorming and/or designing new products is defined as an innovative behavior and vital forerunner of bona fide innovations. Companies such as Google, Hewlett-Packard and 3M consider brainstorming and ideating (creating new ideas) to be a necessary component of the creativity process that may ultimately result in commercially viable innovations. We test these hypotheses in a small high-tech firm characterized by a “flat” organizational structure where the potential for innovation exists at all levels. While previous research has primarily focused on overhauling or renewing organizational systems, policies and environments, we examine whether and to what extent personal, relational variables such as LMX and CSE will emerge as pervasive influential factors for the promotion of CE in “flat” organizations. This research makes three contributions to the CE literature. First, we present and explore relationships in a CE model in a “flat” organizational structure. This is a noted contrast from sustained regeneration efforts in multi-layered complex infrastructures. Next, we posit LMX as a form of transformational leadership with potential to work in concert with pro-entrepreneurial architectures to interpret innovative environments for organizational citizens. Finally, we explore a personal influence variable, CSE, as an important psychological mindset lending impetus to identify and begin the pursuit of innovative ideas. Our central argument is that corporate entrepreneurship (CE) is an intentional activity pursued through the volition of individuals within the organization who believe they possess the personal creative ability and the support of an organizational environment fundamental to bring creative and innovative ideas to market. The notion of support includes but also goes beyond the structural characteristics employed to create an entrepreneurial culture, e.g. the intimacy of a relational leadership style might strengthen the potential corporate entrepreneur’s self-confidence and resolve to behave innovatively. When these conditions exist, there is a higher probability that individuals will begin thinking about and experimenting with innovative ideas.

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Intentional, Bounded CE in a Flat Organizational Structure Much of the corporate entrepreneurship (CE) literature focuses on organizational factors intended to support widespread entrepreneurial action (e.g., Hornsby, Kuratko, Shepherd, & Bott, 2009; Hornsby, Kuratko, & Zahra, 2002) and concerned primarily with overhauling multilayered organizations vis-à-vis sustained regeneration and organizational rejuvenation efforts (Dess, Ireland, Zahra, Floyd, Janney, & Lane, 2003). This conceptualization of CE revolves around the examination of a perceived relationship between firm-level corporate entrepreneurial characteristics (e.g. risk taking, proactivity and radical product innovation) and organizational strategic posturing (Miller, 1983). Miller’s seminal contribution laid a solid foundational for numerous studies investigating what is now widely regarded as a firm’s entrepreneurial orientation (e.g. Covin & Slevin, 1991; Lumpkin & Dess, 2001) and gave rise to studies linking entrepreneurial orientation or posturing with organizational performance (Zahra & Covin, 1995; Zahra, Jennings & Kuratko, 1999). In the face of tumultuous economic times, a decision to strategically posture for incremental and radical innovations requires a dramatic departure from the status quo. Given a myriad of obstacles thwarting a budding entrepreneur’s idea generation and exploitation in large, unwieldy structures, emphasis justifiably rests with encouraging and nurturing opportunityseeking behaviors (Dess, Lumpkin & McGee, 1999; Ireland, 2001). From an internal perspective, i.e. the lens of the potential entrepreneur, CE becomes feasible when organizational leadership (Ireland, Kuratko & Covin, 2003) creates a pro-entrepreneurial environment where new ideas are encouraged to blossom. Within such a context, embracing an entrepreneurial orientation or strategic stance at the firm level is bound to create cultural elements that encourage individual volition at multiple organizational levels. According to Sharma & Chrisman, (1999), CE pursued by strategic choice reaches fruition in one of two ways: 1) through new venture creation in existing organizations and/or 2) through strategic renewal or rejuvenation of existing programs, products and processes. A broader conceptualization of CE involves embodying entrepreneurial behavior that requires resource allocation and supportive cultures towards the end of value-creating innovations (Burgelman, 1984; Jennings & Young, 1990, Kanter, 1985). To date, a vast majority of CE research is focused on how to aid industry giants, rendered stagnant by burdensome procedural concerns, to develop organizational cultures and environments where creativity flourishes; it seeks to precipitate a kind of organizational change or transformation. There is less CE research, by contrast, focused on those intentionally and comparatively flat organizational structures striving for innovative, entrepreneurial activities. This oversight is valuable to investigate because studies suggest entrepreneurial organizational factors are differentially motivating or are not equally supportive to all across corporate infrastructures (Hornsby, Kuratko, Shepherd & Bott, 2009). It is conceivable that a flatter organizational structure could mitigate, or even enhance in some substantive way, any form of cascading “structural ability” postulated in extant CE strategy research (e.g., Kuratko et al., 1990). Further, given a flat organizational structure with potentially overlapping and ill-defined organizational role boundaries, personal (Wood & Bandura, 1989; Tierney & Farmer, 2002) and relational The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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factors (Dienesch & Liden, 1986; Liden & Maslyn, 1998) might be accentuated, lending a discernible, pragmatic stance that extends the practice of CE. We view corporate entrepreneurship as a proactive (rather than reactive) set of behaviors consciously chosen towards the end of stimulating innovation in established organizations (Covin and Miles 1999) that is often pursued as a matter of strategic choice (Ireland, Kuratko, & Covin, 2003). The proactive and strategic aspects distinguish CE from observations of organizations otherwise characterized as being “accidentally innovative” (Herbert and Brazeal, 2004), engaging only sporadically in risk-taking behavior with some degree of success. We also acknowledge that organizational leaders and employees have a multitude of choices during all phases of the innovation process from idea generation to full exploitation and eventual product launch or changes to internal processes or technologies. In accordance with our model of CE in flat organizations, which highlights the relational dynamic of creativity and innovation, we expect that, within a chaotic environment of opportunity seeking behavior, leaders and followers will negotiate and effectively place “boundaries” on the projected innovation space and product, process or technology itself. CE is then characterized by intentional, bounded entrepreneurial activities. A Conceptual Model of CE in Flat Organizations Individual perceptions of the organizational environment and the expectation these create in organizational participants are fundamental tenets in facilitating and sustaining CE. We see CE as a conscious intentional choice among a myriad of complex and potentially conflicting organizational responses to one’s company environment or culture (Hindle, Klyver, & Jennings, 2009). We acknowledge CE may be pursued at the genesis of organizational operations, meaning organizational environmental factors, systems and relational elements might be assembled for entrepreneurial behaviors. Given the resulting complexity individuals will likely confront in choosing to act entrepreneurially, we posit that emphasis on individual behaviors potentially unfamiliar to employees in various organizational roles presents a new and challenging dynamic: how to inspire, instruct, and guide organizational members to break an existing and ingrained mental mindset, seek instead to explore and exploit creative and innovative (and potentially veiled) opportunities within the existing organizational context. We draw on the notion of social exchange to develop a perspective that captures the dynamic role of creative self-efficacy and leader-member exchange as facilitating influences on entrepreneurial attitude development and opportunity exploitation behavior (see Figure 1). We begin our discussion of our proposed model with perceptions of the CE organizational environment as the initial stimulus for entrepreneurial activities.

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Figure 1: Conceptual Model of CE in Flat Organizations

Innovative Behavior Percentage of time spent innovating during normal working hours

Pro-Entrepreneurial Organizational Characteristics    

Management support / rewards Work discretion / autonomy Task time availability Creative time availability

Creative Self-Efficacy  

Cognitive estimation of one’s creative abilities Motivated tacticians Percentage of time spent innovating during normal working hours

Leader Member Exchange (LMX) Relationships   

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Our CE Model extends previous work emphasizing pro-entrepreneurial organizational dimensions associated with the implementation of CE strategy (Hisrich & Peters, 1986; Hornsby et al., 2002; Ireland, et al., 2003; Sathe, 1985; Sykes, 1986) by focusing explicitly on the notions of intentionality and social exchange that previous research implicitly suggests are critical to support for entrepreneurial activity (e.g., Hindle et al., 2009; Krueger, 1993; Dess et al., 2003). Creativity self-efficacy is tied to complex, challenging tasks and, importantly, to an ability to break existing mental sets and to take risks. Thus, the concept of creative self-efficacy encases an extraordinary impetus to act based on one’s self confidence and perceived capability to behave creatively (Tierney & Farmer, 2002; 2004). In this fashion, creative self-efficacy might be a linking pin that connects a CE organizational environment with distinctive entrepreneurial behaviors because it necessarily impacts an individual’s ability or willingness to undertake creative, entrepreneurial activities (Ardichvili Cardozo & Ray, 2003; Shane, Locke, & Collins, 2003; Shane & Venkataraman, 2000). We extend and enhance the focus of previous CE frameworks (e.g., Ireland et al., 2003) by inserting the notion of creative self-efficacy. As will be discussed further in the development of specific hypotheses below, we postulate that perceptions of management support, work discretion/autonomy, time availability, and rewards/reinforcement dimensions will be related to creative self-efficacy, which in turn will impact innovative behaviors, operationalized as time spent brainstorming, inventing and designing new ideas, products, processes and technologies inside and outside the organization. In addition to emphasis on this individual characteristic of the potential corporate entrepreneur, we also propose that CE is a relational activity; that is, the potential corporate entrepreneur’s intent, desire, and decision might be inspired, guided and shaped by the quality of the employee’s leader-follower relationship. We posit the relationship between leader and follower will moderate the linkage between follower creative self-efficacy and entrepreneurial behaviors. Accordingly, our model contributes to the literature and the process of model building by 1) integrating creative self-efficacy as a construct with theoretical distinctiveness in opportunity exploitation decision-making, and, 2) investigating CE and most particularly leadership as a relational activity that works synergistically through relationship-building activities on behalf of the leader and follower. The net contribution is a changing of the lens to view CE in a “flat” organizational context. We now turn to a discussion of the literature and formulation of hypotheses. Literature Review and Hypotheses Corporate Entrepreneurship As suggested earlier, CE is bound to the strategic intent of the company, formulated and practiced with deliberation by organizational leadership. Covin and Miles (1999) conceptualize four types of CE, each positioned towards reinvigorating organizational cultures and processes or adopting a pro-entrepreneurial strategic posture. Regardless of form, when CE is practiced with innovative intent, organizational systems provide nourishment for the development and The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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exploitation of a stream of incremental and radical innovations deemed strategically and financially consistent (by the Top Management Team or TMT) within the organization’s strategic context. Yet in order for organizations to enjoy the fruit of entrepreneurial endeavors, the necessity of the potential entrepreneur as an individual must not be overlooked because individuals in organizations perceive and exploit opportunities, not the organizations themselves. Indeed the individually felt “fire in the belly” phenomenon that creates an impulse to act leads to the perspective that entrepreneurship is a “distinctly human” act (Krueger, 2003). Consistent with this perspective, CE researchers have targeted the relationship between organizational factors or cultural norms and the innovative activities of individuals within organizations. Specifically, these studies have sought to understand and map the relationship between internal conditions for CE and how said conditions are perceived by individuals within the company and reflected in their entrepreneurial behaviors. A review of this literature suggests that five major facets, or dimensions of organizational antecedents, are consistently associated with corporate entrepreneurial activity (Kuratko, Montagno, & Hornsby 1990). These dimensions are: 1) Top Management Support, or the willingness of top-level managers to facilitate and promote entrepreneurial behavior (Hisrich & Peters, 1986; Quinn, 1985; Sykes, 1986) including the championing and ideas and projects and provisions for resources; 2) Work discretion/Autonomy, or the extent to which one perceives that the organization tolerates failure, is willing to delegate decision authority and responsibility, and provides decision making latitude to managers and frees them from excessive oversight (Hisrich & Peters, 1986; Sathe, 1985); 3) Time Availability, or top management efforts to evaluate and adjust workloads in order to provide time needed for innovation (Hisrich & Peters, 1986; Sathe, 1985; Sykes, 1986); 4) Rewards, or a reinforcement system based on performance where significant achievements are highlighted and the pursuit of challenging work is encouraged (Sathe, 1985); and 5) Organizational Boundaries, or clear explanations from top management as to organizational outcome expectations, as well as the development of mechanisms for evaluating, selecting and using innovations (Hisrich & Peters, 1986; Sathe, 1985). While conceptually clear, subsequent research has shown some inconsistency in the number of dimensions. Most notably, in contrast to strong support for the first four factors, Hornsby, Holt, and Kuratko (2008) observed decreased evidence for the fifth dimension of organizational boundaries, a finding that we believe reinforces the stated need here for more systematic investigation into CE activities in structurally flat organizational settings. There is a seemingly widespread presumption in CE research that individuals at all levels will be motivated to respond to the aforementioned organizational factors in a similar fashion with the possible exception of Burgelman’s (1983) notion of the “bottom-up” process of CE, whereby creative pursuits are initiated sometimes in opposition to corporate culture. Follow up study, by contrast, suggests that middle managers occupy an important pivotal, cascading role as harbingers of change, perceiving the presence of these characteristics as necessary to support corporate entrepreneurial activity (Hornsby, Kuratko, & Zahra, 2002). More recently, there appears to be some evidence to suggest that “heterogeneity in the motivation for entrepreneurial action” exists across managerial levels (Hornsby, Kuratko, Shepherd, & Bott, 2009). Hornsby et The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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al. found, for instance, that the positive relationship between two organizational factors, (managerial support and work discretion) and entrepreneurial action is stronger for senior and middle level managers than it is for lower or first level managers. This finding might suggest that there is a baseline level or sense of managerial “buy-in” necessary to take full advantage of an organizational environment oriented towards CE. Central to this investigation, the above evidence suggests it is conceivable that the subordinates too may need some minimum level of buy-in on behalf of their managers before they choose to act upon personally generated innovative ideas (Shane & Venkataraman, 2000). However, consistent with the facilitating line of reasoning outlined above, the significance of engaging in time pursuing innovative activities both on company time and personal time is well documented. Indeed, companies such as 3M and Google routinely expect that individuals spend time on creative projects of their own undertaking as a means of engagement across organizational levels. Thus, we hypothesize that: H1: A pro-entrepreneurial organizational environment is positively associated with the amount of time pursuing innovative activities inside the organization. H2: A pro-entrepreneurial organizational environment is positively associated with the amount of time pursuing innovative activities outside the organization. Creativity and Creative Self-Efficacy Creativity is commonly assumed to be a necessary and fundamental building block of innovative pursuits in organizations (Baron & Tang, 2011). The act of brainstorming new ideas and concepts from a myriad of perspectives generates the raw materials or sustenance for the end results of new products, processes or technologies (Amabile, 1996), though not all ideas are deemed commercially viable (McMullen and Shepherd, 2006). Further, founders of entrepreneurial ventures profoundly impact the organization’s vision, policy development and emerging norms, i.e., the corporate culture or organizational environment (Gartner, Shaver, Gatewood, & Katz, 1994), meaning a high level of creativity on behalf of the founder might be diffused throughout the organization. In this study, we recognize the concept of creativity as fundamentally important to CE, particularly in relatively small and/or flat organizations; however, we are most interested in the notion of creative self-efficacy because it captures the individual motivation among organization citizens to engage in the identification and pursuit of innovative opportunities. Self-efficacy, not tied to creativity, is defined as an individual’s cognitive estimation of his/her abilities to selfmotivate, garner resources and experience autonomy over desired outcomes (Wood & Bandura, 1989). In the entrepreneurship literature, self-efficacy markedly impacts entrepreneurial intentions either directly or as a proxy for perceived feasibility of start-up activities (Krueger, 1993; Kruger & Reilly, 2000). Self-efficacy has been found to strengthen the relationship between low job satisfaction and entrepreneurial intentions (Lee, Wong, Foo, & Leung, 2011); The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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suggesting that confidence in one’s abilities can result in budding entrepreneurs leaving organizations that extend little allowance for creativity and innovation. Importantly, Fini, Grimaldi, Marzocchi, and Sobrero (2012) suggest that great attention, especially in new and emerging ventures, should be directed toward creating internal conditions for risk-taking and entrepreneurial self-efficacy to sustain the enactment of entrepreneurial behaviors. Because our study examines a small, flat organization, we are most interested in the concept of creative selfefficacy or the belief that one has the ability to produce creative outcomes (Tierney & Farmer, 2002). We see creative self-efficacy as a powerful concept that might aid in transforming innovative organizational environments into entrepreneurial behaviors. Creative self-efficacy (CSE) may empower organizational participants to act as ‘motivated tacticians’ (Sorrentino & Roney, 2000), seeking to develop and utilize their creative thoughts in entrepreneurial activity (Schumpeter, 1934). Put differently, CSE might inspire employees to exploit opportunities when such thoughts are believed to be consistent with overtly articulated CE goals and objectives. In this sense, the notion of creative self-efficacy may be considered to be the foundation for an action-based ideology fostering organizational change that may otherwise seem irrational within the existing organizational context (Brunsson, 1985). The aforementioned research has established links between CE and innovative activities as well as the relevancy of the creative mindset and the confidence and perceived feasibility of acting with creative self-efficacy and its subsequent connection to innovative exploits. Yet to be thoroughly investigated is the question, “How can an organization develop systems to enhance CSE?” With the exception of Tierney and Farmer’s (2004) study, featuring an examination of the potential antecedents to creative self-efficacy and its relationship to creative performance, there is scant literature addressing this relationship. Tierney and Farmer (2004) proposed job complexity as one important contextual source, or antecedent condition for creative self-efficacy among employees. The extent to which jobs are multi-faceted, challenging, and non-routine (complex) presents the opportunity for boundary expansion outside one’s own area of expertise, and autonomous decision-making (Amabile, 1988). Supervisors seek to influence the presence of such situations, and extrinsically motivate the pursuit of such opportunities, in turn, through their decisions such as making necessary resources (e.g., time) available (Hisrich & Peters, 1986; Sathe, 1985; Sykes, 1986), developing rewards and recognition programs (Sathe, 1985), encouraging risk taking and tolerating failure (Burgelman, 1983; Sathe, 1985; Sykes, 1986), and promoting broad management support (Hisrich & Peters, 1986; Quinn, 1985; Sykes, 1986). Put succinctly, each of these decisions has the effect of not only appealing to the extrinsic transactional facets of employees’ motivations, but also instilling creative self-confidence. Similarly, Amabile et al. (1996) have found that creative teams in organizations were willing to take the risk in organizations that offered: 1) a challenging work environment, 2) supervisory encouragement, 3) work group support, 4) autonomy, and 5) sufficient resources (including time, materials and budgets). We see strong links between Tierney and Farmer’s (2002) conceptualization of job context variable that serve as antecedent conditions for creativity and

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self-efficacy and Kuratko et al.’s (1990) conceptualization of organizational elements that nurture and encourage entrepreneurial activities. Therefore, we hypothesize that: H3: A pro-entrepreneurial organizational environment will be positively associated with creative self -efficacy. In the previous literature discussion, there is evidence linking self-efficacy to entrepreneurial intentions and innovative exploits. However, only three studies (Gist, 1989; Locke, Freericek, Lee, & Bobko, 1984; Redmond, Mumford, & Teach, 1993) have examined (general) self-efficacy and its relationship to creativity skills and performance, all of which provide important groundwork for the relevancy of self-efficacy in a creative context. For example, Redmond et al. (1993) determined that employees with high self-efficacy for marketing skills demonstrated stronger creativity skills in tested marketing tasks. The more domainspecific construct of creative self-efficacy has only been investigated in one study to date. Tierney and Farmer (2004) found that creative self-efficacy predicted creative performance beyond the predictive effects of job self-efficacy for managers in a corporate setting. Based on this small yet growing body of evidence we hypothesize that: H4: Creative self-efficacy is positively associated with time spend pursuing innovative activities inside the organization. H5: Creative self-efficacy is positively associated with time spent pursuing innovative activities outside the organization. Leader-Member Exchange Finally, we argue that leader-member exchange theory (LMX) (Dansereau, Graen, & Haga, 1975; see also Gerstner & Day, 1997; Graen & Cashman, 1975; Graen & Uhl-Bien, 1995; Liden, Sparrowe & Wayne, 1997 for reviews) offers a highly relevant approach through which to view the leadership role in CE and the accompanying relational aspect of its inherent dyadic nature. LMX is grounded in the premise that leaders develop unique dyadic relationships of varying quality among subordinates within work group situations. Some work group members are treated as ‘trusted assistants’ (high quality LMX) who receive and in turn provide a variety of positive exchanges with their managers including more challenging job assignments, increased leader attention and support, higher levels of dyadic loyalty and trust, more time and energy spent toward work by subordinates, and greater organizational citizenship behavior (Gerstner & Day, 1997; Liden et al., 1997). By contrast, others are treated as ‘hired hands’ (low quality LMX) (Dansereau, et al., 1975) where the lower quality relationships are characterized by lower levels of interaction, trust, and support (Dansereau et al., 1975; Dienesch & Liden, 1986; Graen & Cashman, 1975) and by more traditional supervision based on formal status and strict adherence to rules of the employment contract. As a result, we posit that individuals in lower quality LMX relationships often perform their jobs without providing discretionary energy or effort often associated with CE activity. And in many respects, we postulate high quality LMX

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relationships are associated with the presence of the characteristics of organizational entrepreneurial activity identified by Kuratko et al. (1990). Specific to our model, LMX theory provides an approach to leadership that offers a great deal of understanding regarding the dynamic forces behind CE behavior. As noted above, creative self-efficacy is an important element in the exploitation of entrepreneurial activity. Prior research suggests supervisors are a rich and powerful source for vicarious learning and role modeling or mentoring, two dynamic relational influences for the nurturing of self-efficacy (Bandura, 1986) and creativity (Amabile & Gryskiewicz, 1987). As role models and coaches, supervisors that encourage creativity endeavors through trust, confidence-building and praise, instill attitudes and expectations in employees that they are capable of said endeavors (Deci & Ryan, 1985). LMX quality has also been shown to act as a contextual moderator for a number of important organizational relationships that have implications for CE. The mechanism for the moderator effect is most often based on the characteristics of the exchanges between managers and subordinates, consistent with research that has shown that managers provide valued resources and opportunities to subordinates. For example, LMX moderated the relationship between a manager’s delegation of responsibility to subordinates and the subordinate’s reported satisfaction, since in high LMX relationships, such delegation would be seen as valued support of the subordinate (Schriesheim, Neider, & Scandura, 1998). LMX had a similar effect as a moderator between value congruence between subordinates and their organizations such that congruence more strongly predicted career satisfaction (Erdogan, Kraimer, & Liden, 2004). Piccolo and Colquitt (2006) found that higher quality LMX relationships enhanced the effects of transformational leadership in predicting task performance and organizational citizenship behavior. They considered that the LMX relationship served as a boundary condition for transformational leadership, again suggesting that transformational leadership may not have strong effects unless followers also develop a high quality LMX relationship with their immediate leader. We expect a similar outcome-performance relationship with respect to individual CE activity. Specifically, we expect that high quality LMX relationships will enhance the relationship between creative self-efficacy and entrepreneurial activity in the corporate context because it will promote the necessary degree of comfort and trust (Mumford & Gustafson, 1988) for engaging in risk taking (Graen & Cashman, 1975) often associated with the uncertainty and social complexity that accompanies the transition between basic individual creative efforts and the subsequent innovative entrepreneurial activity that opportunity development and exploitation demands (Ardichvili et al., 2003). By contrast, we expect that low quality LMX relationships will attenuate the relationship between creative self-efficacy and entrepreneurial activity because it will inhibit trust, thereby discouraging the risk taking often associated with such innovative entrepreneurial activity. Stated somewhat differently, the quality of the LMX may further enhance the ability of organizational participants as ‘motivated tacticians’ (Sorrentino & Roney, 2000) to understand the outcome potential of any innovative efforts to exploit entrepreneurial opportunity a priori. Formally, we hypothesize that: The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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H6a: LMX relationship quality will moderate the relationship between creative self-efficacy and time spent pursuing innovative activities within the organization such that higher LMX relationship quality will enhance the relationship while lower LMX relationship quality will attenuate it. H6b: LMX relationship quality will moderate the relationship between creative self-efficacy and time spent pursuing innovative activities outside the organization such that higher LMX relationship quality will enhance the relationship while lower LMX relationship quality will attenuate it. Research Method Sample and Procedures Study participants were individuals within an IT firm, characterized as “high-tech,” and located in the Northeastern region of the United States. The company is a values-driven and privately owned entrepreneurial venture in IT/software services that serves Life Sciences/Healthcare, Strategic IT Consulting and Business Applications markets. The firm’s structure is “flat” meaning few organizational levels are present and all employees have access to the CEO for engagement. Further, there is evidence that the potential for innovation exists within the company. Evidence for the firm’s innovative orientation is found in the fact that the firm successfully navigated two economic downturns and has received accolades for its unique cultural orientation to innovation and comprehensive commitment to leadership excellence at all organizational levels. The Orientation Towards Innovation Survey (OTIS) was distributed through Zoomerang to approximately 130 employees in the firm. All survey respondents were employed in positions where innovative activities could be pursued. Participation was entirely voluntary and employees were asked to take the survey at their convenience. Company time was not provided. After two weeks, a follow-up e-mail soliciting participation was sent. The total number of respondents was 100 for a survey response rate of 76.9%. Dependent Variable Percentage of time spent innovating. Two approaches are generally employed to measure innovation: 1) outcome-based, in which a list of innovations or criteria for innovative outcomes are specified and then recorded (e.g., Zajac, Golden, & Shortell, 1991); or, 2) activity-based, in which the focus is on internal activity designed to lead to innovative outcomes (e.g., Hitt, Hoskisson, Johnson, & Moesel, 1996). Because the outcomes of innovative efforts could not be readily standardized across study participants, and ultimately innovative outcomes take considerable time to reach the market place in this industry, an activity-based measure of innovation was used for this investigation. Specifically, respondents were presented with a series The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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of questions focusing on innovative thinking and behavior, and asked to consider how each applied to their own activities over the past five years. They were told to consider "innovative ideas" as being defined in one of three ways: new products, processes, or services; improvements to existing products, processes, or services; or the recombination of existing products, processes, or services (e.g., to serve an alternate client or market). Respondents were then asked, “In a given year, what percentage (%) of time do you spend thinking about, planning for, or experimenting with new ideas or improvements a) inside your normal working hours, and b) outside your normal working hours?” Independent Variables Pro-entrepreneurial organizational characteristics. Respondents were presented with a series of eighteen descriptive items and asked to rate the extent to which they agreed each item characterized their organization on a seven point Likert-type scale (1 = strongly disagree / 7 = strongly agree). Items were derived from the Corporate Entrepreneurship Assessment Instrument (CEAI) originally developed by Kuratko, Montagno, and Hornsby (1990), further refined in subsequent studies (Hornsby, Holt, & Kuratko, 2008; Hornsby, Kuratko, & Zahra, 2002; Hornsby, Kuratko, Shepherd, & Bott, 2009), and reflected the following dimensions: management support, work discretion, rewards/reinforcement and time availability. Leader-member exchange. Respondents were presented and asked to rate twelve Likerttype items, on a seven point Likert-type scale (1 = strongly disagree / 7 = strongly agree), focusing on their relationship with their immediate manager or supervisor at work. Items were derived from Liden and Maslyn’s (1998) effort to extend prior research (e.g., Wayne & Farris, 1990) by exploring the potential for construct multidimensionality along the following four dimensions: affect, loyalty, contribution, and professional respect. Creative self-efficacy. Respondents were presented seven items and asked to rate the extent to which they agreed on a seven point Likert-type scale (1 = strongly disagree / 7 = strongly agree). Items were derived from prior research (i.e., Tierney & Farmer, 2002; 2004) to reflect employees' beliefs in their ability to be creative in their work. Also consistent with this work, respondents were prompted to respond in terms of their personal day-to-day work activities as opposed to more generally beliefs regarding life situations. Data Analysis Strategy We first conducted an exploratory factor analysis following a standard maximum likelihood approach (Jöreskog, 1969) in order to evaluate and interpret the number and structure of factors represented in the measures employed. We then followed the standard approach to testing mediation (Baron & Kenny, 1986). Using hierarchical linear regression, we first examined whether the perception of pro-entrepreneurial organizational characteristics predicted the percentage of time spent innovating during and outside normal work hours. We then examined whether or not the perception of pro-entrepreneurial organizational characteristics The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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predicted creative self-efficacy, and in turn, whether creative self-efficacy predicted the percentage of time spent innovating during and outside normal work hours. Finally, to evaluate the moderation hypothesis, we used hierarchical linear regression to examine whether any significant relationship between creative self-efficacy, leader-member exchange relationships, and percentage of time spent innovating during and outside normal work hours were observed, once interaction terms for each of the independent variables was included in the hierarchical regression model. Results Exploratory Factor Analysis Exploratory factor analysis with the independent measures was employed to examine whether the initial list of items produced a number and structure of factors consistent with prior research from which the construct measures were drawn. The data were analyzed using a principal component method with Varimax rotation. Examining the items for the proentrepreneurial organizational characteristics items first, the initial analysis revealed a four component structure consistent with the number of factors found in prior studies (e.g., Hornsby, Holt, & Kuratko, 2008). However, four items exhibited cross loadings that warranted their removal from the item pool. The remaining 15 items were again factor analyzed. Analysis of the factor loadings and structure suggested four interpretable factors were present, with a total eigenvalue of 11.407 and explaining 76.04% of the total variance observed among the items. Table 1 shows the 4-factor solution that emerged, as well as the original factor labels suggested by Hornsby et al. (2008). Six items loaded on Factor 1. We labeled this factor management support/rewards as it appeared to reflect top management’s willingness to support and reward entrepreneurial behavior within the organization and its associated risks. Four items loaded on Factor 2. We labeled this factor work discretion as it clearly reflected a sense of decision making autonomy and personal responsibility. Three items loaded on Factor 3. This factor was labeled task time availability and appeared to represent the respondents’ ability to successfully manage workload perceptions and complete all existing tasks. Two items loaded on Factor 4. This factor was labeled creative time availability. Although closely related to the notion of task time availability, this factor appeared to reflect time to pursue opportunities associated with new products and ideas as opposed to existing tasks.

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Table 1: Results from Exploratory Factor Analysis of Pro-Entrepreneurial Organizational Characteristics a Original Factor Label b WD WD WD

Item I have the freedom to decide what I do on my job. It is basically my own responsibility to decide how my job gets done. I have much autonomy on my job and am left on my own to do my own work. I feel that I am my own boss and do not have to double-check all of my decisions with someone else. I seldom have to follow the same work methods or steps for doing my major tasks from day to day. I have just the right amount of time and workload to do everything well. I always have plenty of time to get everything done. I feel that I am always working with time constraints on my job. (R) My co-workers and I always find time for long term problem solving. During the past three months, my workload kept me from spending time on developing new ideas. (R) People are often encouraged to take calculated risks with ideas around here. This business unit supports many small and experimental projects realizing that some will undoubtedly fail. Senior managers encourage innovators to bend rules and rigid procedures in order to keep promising ideas on track. Those employees who come up with innovative ideas on their own often receive management encouragement for their activities Money is often available to get new ideas off the ground. My supervisor will give me special recognition if my work performance is especially good. My manager will tell his/her boss if my work was outstanding. The rewards I receive are dependent upon my work on the job.

WD

Percent variance explained

Work Discretion .842 .855 .842

Time Availability Task

Time Availability Creative

.673

WD TA TA TA TA

.823 .870 .629 .718

TA MS

.671

MS

.806

.858

MS

Eigenvalue a a

Management Support / Rewards

a

MS MS

.652 .663

RR RR RR

.760 .772 3.795

3.466

2.547

1.599

25.297

23.105

16.980

10.661

Varimax rotation is employed and rotated values for the final factor structure are shown.

b

Original component labels are based on prior research (e.g., Hornsby, Holt, & Kuratko, 2008) as follows: WD = Work discretion, TA = Time availability, MS - Management support, RR = Reward/reinforcement. The designation "(R)" indicates the item is reverse coded to allow for consistent directional interpretation of findings. Italicized items are removed from the statistical analysis due to excessive cross loadings. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Turning to analysis of creative self-efficacy, this analysis revealed the seven items loaded on a single component, with an eigenvalue of 5.170 and explaining 73.85 % of the total variance observed among the items. Therefore, consistent with prior research (Tierney & Farmer, 2002), item scores were aggregated into a single factor score for subsequent hypothesis testing. Similarly, examination of the leader-member exchange items revealed all items loaded on a single component, with an eigenvalue of 7.324 and explained 73.24% of the total variance observed among the items. Consequently, and consistent with prior research suggesting LMX relationships are unidimensional in nature (e.g., Wayne & Farris, 1990), these items were also aggregated into a single factor score for hypothesis testing. Hypothesis Tests Is the perception of a pro-entrepreneurial organizational environment associated with the amount of time employees spend innovating? Hierarchical linear regression results presented in Table 2 suggest it is, though not uniformly. As shown in Model 1, work discretion (β = .416, p < .01) and the availability of creative time (β = .375, p < .01) significantly and positively predict the amount of time employees spend innovating during normal working hours, explaining nearly 21% of the variance. Whereas the availability of creative time also significantly and positively predicts the amount of time employees spend innovating outside normal working hours (β = .539, p < .01), explaining 22% of the variance, work discretion did not (β = .036, p > .10). By contrast, neither the presence of management support / rewards (β = -.121, p > .10; β = -.144, p > .10) nor task time availability (β = -.006, p > .10; β = .026, p > .10) significantly predicted the amount of time employees spend innovating during and outside normal working hours respectively. In sum, these results suggest partial support for H1 and H2.

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Table 2: Results of Hierarchical Regression Analyses Predicting % Time Spent Innovating Model 1

Predictor Variable Pro-entrepreneurial organizational characteristics Management support / rewards Work discretion

Outside normal working hours

-.121

-.144

-.339

.036

.354

.026

-.164

**

-.006

Time availability - creative

Model 3

During normal working hours

.416

Time availability - task

Model 2

.375

**

.539

During normal working hours

Outside normal working hours

**

During normal working hours

.329

.203

*

.480

Model 4

Outside normal working hours

*

-.398

**

-.050 -.181

During normal working hours

Model 5

Outside normal working hours

.428

**

**

.606

**

.490

**

.158

Creative self-efficacy X Leader-member exchange **

2

R 2 Adjusted R a

**

p < .10;

*

p < .05;

**

*

**

7.522

11.124

11.874

.241

.319

.108

.041

.343

.480

.209

.219

.099

.031

.308

.452

n = 100. Standardized beta regression coefficients are shown. †

**

p < .01

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4.207

9.819

Outside normal working hours

-.158

.976

.942

.509

-.332

-1.249



Leader-member exchange

Model F value

During normal working hours

**

**

.286 **

Creative self-efficacy

a

17.320

*

30.911

**

**

2.505

11.976

1.655

.240

.025

.272

.049

.232

.015

.250

.019

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Hierarchical linear regression results presented in Table 3 suggests that the perception of a pro-entrepreneurial organizational environment is associated with the level of creative selfefficacy employees maintain. As shown in Model 1, management support / rewards (β = .453, p < .01), the availability of workload task time (β = .332, p < .01), and the availability of creative time (β = .176, p < .05) significantly and positively predict the level of creative self-efficacy employees report. By contrast, work discretion (β =.103, p > .10) did not significantly predict the level of creative self-efficacy reported. In sum, and explaining more than 54% of the variance in creative self-efficacy reported, these results suggest support for H3. Table 3: Results of Regression Analyses Predicting Creative Self-Efficacy a Model Predictor Variable

1

Pro-entrepreneurial organizational characteristics Management support / rewards

.453**

Work discretion

.103

Time availability - task

.332**

Time availability - creative

.176* 30.331**

Model F value R2

.561 2

Adjusted R a

.542

n = 100. Standardized regression coefficients are shown.



p < .10; * p < .05; ** p < .01

As shown in Table 2, hierarchical linear regression analysis suggests that creative selfefficacy is associated with the amount of time employees spend innovating. Creative selfefficacy significantly and positively predicts both the amount of time employees spend innovating both inside (β = .329, p < .01) and outside (β = .203, p < .05) the organization, explaining approximately 10% and 3% of the variance respectively and providing support for H4 and H5.

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Does the leader-member exchange (LMX) relationship moderate the relationship between creative self-efficacy (CSE) and the amount of time employees spend innovating? In order to evaluate our moderation hypotheses we first created interaction terms by multiplying CSE and LMX scores for each respondent. We then entered these terms into the regression equation in addition to the main effect for each variable. If these interaction terms become significant once included in the regression model, then evidence for moderation exists. Model 5 of Table 2 presents these results and provides no support for the hypothesized moderating influence of LMX on the relationship between CSE and the amount of time employees spend innovating during (β = -.332, p > .10) or outside (β = -1.249, p > .10) normal working hours. Thus, no support is found for H6a or H6b. Although our model implicitly suggests the prospects of CSE as a mediator between proentrepreneurial organizational factors and innovative activity, the extant literature does not provide a strong empirical foundation for hypothesizing the extent to which such mediation may exist. Therefore, we evaluated such prospects by examining, in a post hoc sense, the extent to which the relationship between pro-entrepreneurial organizational factors and time spent innovating changed following the inclusion of CSE in the regression results. As shown in Model 3 of Table 2, although work discretion (β = .354, p < .01) and the availability of creative time (β = .286, p < .01) significantly and positively predict the amount of time employees spend innovating during normal working hours, they do so to a less extent after creative self-efficacy is entered into the model. Moreover, creative time also significantly and positively predicts the amount of time employees spend innovating outside normal working hours (β = .539, p < .01), but also to a lesser extent. By contrast, management support now significantly but negatively predicts time spent innovating during (β = -.339, p < .05) and outside (β = -.398, p < .01) normal working hours, while creative self-efficacy becomes the strongest positive predictor of time spent innovating both during (β = .480, p < .01) and outside (β = .606, p < .01) normal working hours. Collectively, these results suggest support for creative self-efficacy as partially mediating the influence of pro-entrepreneurial organizational factors on innovative activity. Discussion and Implications Given the upswing in globalization, both scholars and practitioners alike are actively pursuing how to intentionally create pro-entrepreneurial organizational environments that are perceived as attractive to creative minded individuals and associated with expectations for innovative outcomes that facilitate and sustain CE. Systematic empirical examinations of the association between organizational factors and successful corporate entrepreneurship have suggested significant relationships between rewards and incentives, organizational structure, management support, resource availability and successful corporate entrepreneurship (Hornsby, Kuratko, & Montagno 1999; Kuratko, Montagno, & Hornsby 1990; Russell & Russell 1992; Zahra 1991). The aforementioned studies are important foundational works that firmly established CE as a cogent field of inquiry with pragmatic appeal. While valuable, the focus on intentional organizational elements has overshadowed the crucial role of personal factors and the The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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unique dyadic relationships between leaders and followers on innovative activity, particularly within the context of flat organizational structures. These observations fueled our interest to extend the extant CE literature by developing a rudimentary model for practitioners that leverages insights about individual intentionality and social exchange as they seek to build a proentrepreneurial architecture. We present here three major findings and their practical implications. First, as demonstrated earlier, work discretion and creative time availability are related to percentage of time spent thinking about, planning for, or experimenting with new ideas or improvements inside normal working hours. This finding confirms much earlier studies (Knight, 1986; Schuler, 1987; Sykes, 1986) that advocate the relaxed coupling of structures within multi-tiered organizational structures accompanied by a “loose leash” philosophy on behalf of management. Thus, the willingness to liberally extend autonomy to all organizational participants appears to be critical. Strong evidence is found for time availability, defined in earlier studies as management’s willingness to evaluate and adjust workloads, as an environmental factor related to innovation (Hisrich & Peters, 1986; Sathe, 1985; Sykes, 1986). Because our data suggested a split between task time availability (ability to meet workload demands) and creative time availability (time for long-term problem solving and developing new ideas), we were able to tease out the relationship between creative time availability and time spent innovating both inside and outside the organization. This is an important distinction because while task time availability was not related to time spent innovating inside or outside the organization, creative time availability was related to time spent innovating inside the organization and outside normal working hours. These results suggest that the deconstruction of potential time constraints does much to encourage innovative engagement in flat organizational structure. This finding is not necessarily intuitive or commonsense. Providing opportunities for employees to act in a creative or entrepreneurial fashion does not guarantee they will engage. The analyses also evoke a more nuanced understanding of the construct “time availability.” As an important corollary, the only pro-entrepreneurial organizational factor related to percentage of time spent thinking about, planning for, or experimenting with new ideas or improvements outside normal working hours was creative time availability. We believe this suggests that ameliorating time constraints for creative thinking impacts individuals beyond their time within the organization itself, a finding which is crucial to practical efforts seeking the development of an entrepreneurial edge, particularly as technological diffusion becomes more central to global competitive industry change (Bettis & Hitt, 1995). Creativity is a process, often lengthy and somewhat chaotic, that requires focused and thoughtful rumination for the fruition of product or technology. Second, creative self-efficacy (CSE) was related to percentage of time spent thinking about, planning for, or experimenting with new ideas or improvements inside and outside normal working hours. This finding confirms Tierney and Farmer’s studies (2002, 2004) that posit CSE as a dynamic variable related to creativity and specific creative outcomes including patents. To wit, practitioners might embrace programs to instill self confidence in individual cognitive estimation of one’s abilities to self-motivate, garner resources and experience autonomy over The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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desired outcomes to foster not only more and more commercially viable innovation, but also greater forms of entrepreneurial intent within their respective organizations (Lee et al., 2011). Third, despite empirical evidence suggesting LMX serves as a boundary condition for transformational leadership in predicting task performance and other important forms of organizational citizenship behavior (Piccolo & Colquitt, 2006), we found no evidence for LMX as a moderator influencing the relationship between CSE and innovative activities. This finding was somewhat surprising given the wealth of literature suggesting a relational leadership style and its impact on creativity and innovation (e.g., Graen & Cashman, 1975; Mumford & Gustafson, 1988). It is conceivable that LMX plays a substantive role in our exploratory model, not as a moderator, but as a variable with direct impact on innovative activities. Our subsequent studies will address this possibility. Lastly, we found evidence for CSE as a partial mediator between pro-entrepreneurial organizational factors and innovative activities as defined above. A mediation effect reinforces the relevancy of CSE as an important personal psychological construct to embrace when building a flat organizational structure with an entrepreneurial stance. The pro-entrepreneurial organizational characteristics of management support/rewards, task time availability and creative time availability were all associated with CSE, lending support to Tierney & Farmer’s (2004) notion that providing opportunities and support for challenging, multi-faceted and complex work assignments imbues perceptions of one’s ability to take risks and tolerate ambiguity. Limitations We consciously selected a “flat” organization in the IT industry characterized as hightech and known for its leadership style, focus on innovation and values-driven mission. Given our conceptualization of CE as embracing entrepreneurial activities requiring organizational resource commitments towards value generated innovations, and our goal to test an exploratory model of CE in flat organizations, we believe our study represents a fundamental step in the advancement of extant theory and yields important practical insights in different types of organizational forms and industries, as well as serving as a foundation for comparisons within industries. Examining one organization enabled us to study potential interplays among a variety of variables in a relatively controlled fashion. However, we acknowledge its limited generalizability and modest sample size, and that more persuasive test of the idea that proentrepreneurial organizational characteristics enhance creative self-efficacy, which in turn leads to innovative behavior, would require the use of a longitudinal research design with comparison groups within one industry or across selected industries. Conclusion and Future Research This study validates the need to further explore the promise of importance of proentrepreneurial environments to produce innovative behavior and the interplay with creative selfefficacy as a useful personal predictor of important corporate entrepreneurial behaviors. Though The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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our study encompasses results from only one firm, there is indication that our exploratory study might render more widely applicable results as we seek additional companies for investigation. Our study has shown how practitioners seeking to construct a pro-entrepreneurial organizational environment while maintaining a flat organizational structure can influence employee’s creative capabilities and begin to act more innovatively as a result. It also demonstrates how personal and relational factors can be used to build theoretically meaningful models with pragmatic potential; specifically a more nuanced understanding of management efforts to construct entrepreneurial environments, workplace beliefs, and relational factors that encourage entrepreneurial behavior in flat corporate settings By focusing on the processes whereby individuals choose to respond to the settings of their work environments, entrepreneurship researchers could gain new insights into the dynamic relationship between individuals, their workplace perceptions, and entrepreneurial activity. Three areas of additional research are proposed, the former two related to antecedent variables presented in the model; the third concerning research design. First, despite the premise that LMX theory provides rich opportunities for understanding the dynamic forces behind CE behavior, a moderating influence was not found on the CSE-innovative behavior relationship. This finding is in contrast to studies previously reviewed (Erdogan, Kraimer & Liden, 2004; Piccolo & Colquitt, 2006). However, as role models and coaches, leaders may play a profound role by engendering confidence building with respect to a creative mindset and associated behaviors. Thus, beyond job complexity and pro-entrepreneurial organizational environments, strong and supportive supervisory relationships may be another critical antecedent condition to the dynamic of imbuing employees with creative self-confidence. As such, LMX may directly impact innovative behaviors or through the mediating effect of CSE. Second, an activity-based measure of innovative behavior was used due to the potentially lengthy lag time between idea generation and exploitation of innovative efforts. Future studies might utilize a longitudinal design to capture the number of innovations over time. R&D labs provide a creative environment and deliver tangible, quantifiable results in the form of patents and trademarks. As such, they provide a fertile lab environment to test important CE relationships and outcomes. Finally given the model’s limited applicability, examining comparable organizations in terms of size and age within the same industry are warranted. Alternatively, future researchers might compare results across industries, e.g. high tech vs. low tech kinds of businesses. As it stands, the Model of CE ?developed herein provides some merit to the field of CE because it lays a foundational structure of relationships that embrace efficacy and relational leadership styles as a possible conduit for pro-entrepreneurial environments in a flat organization. Given our results, we plan to utilize this study as a stepping stone to further explore these constructs in various contexts. Our research harkens to a broader conceptualization of CE that supports the study of organizations seeking to imbue their employees with vision, imagination and tangible innovation, without a radical overhaul of operations.

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About the Authors Deborah V. Brazeal, PhD., is Full Professor of Entrepreneurship and Innovation at Cal Poly Pomona University in Pomona, California. Her primary research interests are corporate entrepreneurship, and entrepreneurial intentions. Her publication outlets include Journal of Business Venturing, Entrepreneurship: Theory and Practice and Journal of Business Research. Dr. Brazeal's practical entrepreneurial experience includes V.P. and board member of Deep-Sea Research (DSR) and Transoceanic Research Group (TRG). While Dr. Brazeal was V.P. of DSR, the company located California's oldest shipwreck, the Brother Jonathan. She is currently founder of "Radical Strategies." Dr. Brazeal received her PhD from the University of Alabama. Mark T. Schenkel, PhD., is Associate Professor of Entrepreneurship at Belmont University. His teaching and research focuses on human and social capital, the role entrepreneurial cognition and strategic decision-making play in new venture creation and corporate venturing activities. Dr. Schenkel’s research has been published in journals including the Academy of Management Review, Entrepreneurship Theory & Practice, Journal of Small Business Management, Journal of Small Business Strategy, and Journal of Developmental Entrepreneurship. Prior to earning his PhD at the University of Cincinnati, his entrepreneurial experience included leadership roles at The Habegger Corporation, David E. Estes Engineering, Inc., and Wright Brothers Inc. Suresh Kumar, PhD., is a serial immigrant entrepreneur. He is the key-founder of three successful entrepreneurial startup ventures over the past 12 years. He is also the recipient of multiple industry and community recognition for leadership and entrepreneurial excellence including the Ronald Reagan Gold Medal by the Congressional Business Advisory Council, five time winner of the INC 500/5000 Award, the US Chamber of Commerce Blue Ribbon Award and most recently the Deloitte Fast 500 Award. Dr. Kumar has presented papers and conducted workshops at the Academy of Management, Babson College Entrepreneurship Research Conference, and the International Council of Small Business.

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Investigating the Entrepreneurial Attitudes of African Americans: A Study of Young Adults Shanan G. Gibson, East Carolina University Michael L. Harris, East Carolina University Patrick D. Walker, Lindenwood University William C. McDowell, East Carolina University Executive Summary An examination of the entrepreneurial attitudes of African American business students from multiple U.S. universities was conducted using the Entrepreneurial Attitudes Orientation (EAO) scale. Results of the analysis indicate that African American students have very high entrepreneurial attitudes compared with the original validation sample of the EAO, and these attitudes are even higher among those with prior entrepreneurial exposure via a family-owned or self-owned business. These findings are consistent with current rates of minority-started businesses and known intergenerational linkages in business ownership. Discussion of these findings and future research are also addressed. Introduction As noted in multiple reports from the Global Entrepreneurship Monitor (GEM), entrepreneurs often pursue business ownership based on either opportunity recognition or financial necessity due to the lack of economic alternatives. Consistent with this finding, research indicates that minorities are seeking out more entrepreneurial opportunities as a way to overcome the frustration and discontent associated with the lack of advancement opportunities in their current organizations (Heilman & Chen, 2003; Weiler & Bernasek, 2001). While these numbers indicate that the entrepreneurial spirit is alive and well, research indicates that many individuals have high levels of entrepreneurial potential that is never acted upon (Kent, 1990). In fact, the Kaufman Foundation indicates that minority entrepreneurs are a largely untapped resource in the economy of the United States. Of special concern is the degree to which African Americans may experience barriers that limit their potential in the entrepreneurial sector. Before addressing potential obstacles historically faced by African Americans in regards to business ownership, it is first important to understand the significance of entrepreneurship for minority groups. As suggested by Acs, Tarpley and Phillips (1998), a primary contribution of entrepreneurship for minorities is the opportunity it creates to enter the economic and social mainstream of American society. Similarly, past research has argued that the health and growth of African American-owned small businesses often serves as a strong barometer for the overall progress made by minorities in the U.S. (Feldman, Koberg & Dean, 1991; Thompson, 1999).

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The passage of the Small Business Act has positively impacted the number of minorities who have considered entrepreneurship as a viable career choice. The Act enhances the use of entrepreneurial training to grow the capacity and skills of potential small business owners (Martin, Wech, Sandefur & Pan, 2006). As a result of the governmental and educational initiatives, the number of opportunities for minorities to receive training and education for small business development has substantially increased over the past few decades. Between 1997 and 2002, minority-owned companies increased in number, annual gross receipts, and paid employees at a rate faster than non-minority firms. According to a report from the Minority Business Development Agency (2006), these businesses represented almost 18% of classifiable firms, employed 9% of all paid employees, and grossed 8% of all annual gross receipts ($668 billion) in 2002. More recent research indicates that there are approximately one million African American owned businesses in the U.S., accounting for over $100 billion in annual sales (African American Entrepreneurs, 2009). Additional evidence also indicates that minority entrepreneurship has steadily increased during the past decade, with estimations that currently 30% of small businesses in the U.S. are owned by women or minorities (Bergman, 2006). Little research has empirically examined the entrepreneurial attitudes and intentions of African Americans, particularly young adults. In fact, despite their increased involvement in business ownership, research indicates that minorities in general tend to be less optimistic overall in their expectations of business success (Carter, 2000) and are more likely to fail when starting a new venture (Boden & Nucci, 2000; Carter, Williams & Reynolds, 1997; Robb, 2002). Thompson (2004) points out that successful entrepreneurship requires a combination of temperament, talent and technique. It can be argued that temperament is first needed in order to convince African Americans of their potential in the entrepreneurial arena, and to encourage them to view business ownership as a viable career option. The purpose of this study is to examine the entrepreneurial attitudes of African American students. Specifically, this analysis compares the entrepreneurial attitudes of this group of minorities against the original validation sample of the Entrepreneurial Attitudes Orientation scale. A stronger understanding of the entrepreneurial attitudes and intentions of young adults in the African American population can offer insight into their interest in business ownership as a viable career choice, and make an important contribution to the entrepreneurship research body. Additionally, a better understanding of the entrepreneurial mindset of African Americans is important in determining their interest in entrepreneurship education programs. Literature Review The study of entrepreneurship may include consideration of numerous contextual factors, including environmental and individual characteristics. Past areas of focus for entrepreneurial research have included geographical location, regional policies, access to resources and support

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programs, family history, educational levels, personality traits, attitudes, ethnicity, and gender. The current study considers two of these individual factors, specifically attitudes and ethnicity. The work of Robinson, Stimpson, Huefner, and Hunt (1991) was one of the first to incorporate an attitude scale to predict entrepreneurial activity. An advantage of using an attitudinal approach is that it can be more domain-specific, which increases the correlation with actual behavior and reduces unexplained variability. Attitudes tend to change across time and situations through an interactive process with the environment. Once a person’s attitude has been measured, a prediction can be made about the person’s future actions (Carlson, 1985). Robinson et. al. (1991) developed the Entrepreneurial Attitude Orientation (EAO) model based on the four constructs of achievement, innovation, personal control, and self-esteem in business. The theory of planned behavior developed by Ajzen (1991) also provides an important background when examining entrepreneurial attitudes and intentions. Ajzen (1991) suggests that attitudes are influenced by beliefs and probable outcomes associated with behaviors. Past research has used the theory of planned behavior to examine entrepreneurial attitudes and intentions, and how they can impact entrepreneurial behaviors (Fayolle & Gailly, 2013; Krueger & Carsrud, 1993; Tkachev & Kolvereid, 1999). Based on the theory of planned behavior, entrepreneurial intentions are the cognitive representation of an entrepreneur’s willingness to adopt a specific behavior, and an antecedent to entrepreneurial behavior (Azjen, 1991). A more favorable attitude toward entrepreneurship will increase a person's intention to engage in entrepreneurial activities. Multiple studies have used the theory of planned behavior to examine the entrepreneurial intentions of students (Audet, 2004; Boissin & Emin 2006; Harris, Gibson & Taylor, 2007/2008; Fayolle & Gailly, 2013). Scholarly research on the entrepreneurial experiences of African Americans today is limited, and is not fully understood within the context of social science literature. While few would question the idea that African Americans, like other entrepreneurial actors, have difficulty creating and managing successful firms, the suggestion that they are not successful has received much attention in scholarly and popular outlets (Foley, 1966; Frazier, 1957; Glazer & Moynihan, 1963; Light, 1972; Sowell, 1978). However, research on African American experiences often does not convey the complex, textured difficulties they encounter when considering business ownership (Young, 2007). Instead, more recent research echoes the old, but still relevant themes, of inadequate capitalization and discrimination that have survived with remarkably little alteration since at least the 1970s (Young, 2007). Past research suggests that both females (Carter, 2000; Hisrich & Brush, 1987; Thomas, 2001) and minorities (Heilman & Chen, 2003; Kourilsky & Esfandiari, 1997) face serious obstacles in the entrepreneurial process, including less education and business experience, limited resources, and fewer mentors and advisors. In addition, they have greater difficulty obtaining financing (Coleman, 2002; Verheul & Thurik, 2001) and have a more limited credit history (Shaw, Carter & Brierton, 2001). Research also indicates that minorities are less interested in starting a business (Matthews & Moser, 1995; Kourilsky & Walstad, 1997) and when they do it tends to be smaller and more likely to be in the retail or service sectors (Perry, The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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2002) where failure rates are much higher than other business sectors (Brush & Chaganti, 1999). African Americans can become too reliant on micro businesses due to their inability to penetrate a more traditional customer base (Sriram, Mersha & Herron, 2007). Robb (2002) and Marlow and Patton (2005) suggest that this occupational segregation may result from the capital restraints faced by many minority entrepreneurs. In addition to resource constraints, two critical challenges, which may be somewhat linked together, are the skill deficiencies of minority groups in regards to entrepreneurship and the dearth of role models and mentors available within local communities. Over a decade ago, Kourilsky and Esfandiari (1997) noted that although African American youth reported they would like to explore the opportunity of starting their own business, they lacked a strong foundation of basic entrepreneurial knowledge. The good news is that entrepreneurial attitudes and skills can be developed through entrepreneurship education programs (Mitra & Matlay, 2004; Robinson et al., 1991). Research shows that education and skill differentials help explain why certain people engage in entrepreneurial activities and are more successful than others (Carter, Gartner, Shaver & Gatewood, 2003; Farmer, 1997; Gatewood, Shaver, Powers & Gartner, 2002). Various streams of literature also relate the effects of entrepreneurship education and venture creation on the development of youth (Rasheed, & Rasheed, 2004). An established body of research has investigated the personality characteristics and traits associated with entrepreneurship (Boyd & Vozikis, 1994; Brockhaus, 1980; Krueger & Brazeal, 1994; Montago, Kuratko & Scarella, 1986). Collins, Hanges & Locke (2004) suggest that need for achievement is an entrepreneurial trait, while other research has shown that entrepreneurs have a high level of self efficacy and esteem (Erickson, 2002; Krueger & Brazeal, 1994). Additional research indicates that entrepreneurs have a greater internal locus of control (Hansemark, 2003) and possess a more positive attitude toward risk (Douglas & Shepherd, 2002; McMullen & Shepherd, 2006), creativity (Feldman & Bolino, 2000), and innovation (Rauch & Frese, 2007). Researchers have also explored the learning theory associated with program content and the pedagogy of entrepreneurial development programs (Leitch & Harrison, 1999). Empirical evidence supports entrepreneurial education as an intervention tool that impacts adult attitudes toward entrepreneurship (Ede, Panigrahi & Calcich, 1998; Hansemark, 2003; Hatten & Ruhland, 1995). Youth awareness and attitudes related to the social and economic desirability of entrepreneurship as a career option has been the subject of other studies (Kourilsky & Walstad, 1998; Walstad & Kourilsky, 1998). A recent study by Fayolle and Gailly (2013) showed that the impact of entrepreneurial training programs on entrepreneurial intentions is strongly impacted by the students’ initial level of intention and prior exposure to entrepreneurship. If Kourilsky and Walstad (1998) are correct that skill deficiencies stop minorities from considering business ownership, then the resulting effect can be a limited supply of positive role models for young adults. In fact, research by Heilman and Chen (2003) found a general lack of mentors and mentoring opportunities for potential minority entrepreneurs. Research indicates that a strong support network and a positive relationship with a mentor can help prospective The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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business owners learn the skills needed to operate and manage a small business successfully. Minorities may have fewer opportunities to engage in professional relationships with mentors because of cross cultural differences or the unwillingness of other minority leaders to participate in mentoring relationships (Heilman & Chen, 2003). The entrepreneurial sector is an important source of future opportunity for minority groups; however, prior research indicates that minorities need more skill and technique development in order to achieve greater levels of success. While a pressing problem, it is equally important to gain a better understanding of the attitudes of young African American adults toward entrepreneurship in order to determine their future entrepreneurial intentions. Historically Black Colleges and Universities (HBCUs) Students enrolled in Historically Black Colleges and Universities (HBCUs) served as a target area for collecting data for this study. HBCUs have played a crucial role in the rise of black entrepreneurship. These institutions have been “seats of black progress” because of their supportive campus environment and open opportunity structures (Bennett & Xie, 2003). Research on the graduates supported by the United Negro College Fund report high levels of satisfaction with HBCUs and frequently stated that they have prepared “them well for participation in society” (Butler, 1991). In addition the fund observed that upward economic and social mobility of HBCU graduates are, in many respects, reminiscent of the experiences of immigrant ethnic groups that pursued the American Dream through higher education and entrepreneurship (Butler, 1991). Evaluating the relationship between attendance at HBCUs and those African Americans who have become successful entrepreneurs reveals two opposing viewpoints. From one perspective, many believe that native-born African Americans have failed to develop a tradition of entrepreneurship most notably because they lack opportunities to gain experience in “buying and selling” (Frazier, 1949), the dearth of business “success symbols” (Foley, 1966), and the absence of a cultural heritage (Light, 1972). Thus, this viewpoint embraces the idea that successful African American businesses result from a tradition of successful individuals, rather than one based upon a collective experience (Light, 1972). Another perspective examining the relationship between attendance at HBCUs and entrepreneurship attitudes embraces the view that a small class of mostly Southern blacks has followed a tradition of self-help and entrepreneurship. Inspired by the idea espoused by Booker T. Washington, they could “take advantage of the disadvantages” of racial oppression (Butler, 1991). This counterargument holds that active participation in the educational, religious, and fraternal organizations of the segregated black communities of the South is a hallmark of this select group of black entrepreneurs and that attendance at HBCUs is central to this heritage (Butler, 1991). It suggests that the formation and continued existence of this class, particularly in the South, where blacks faced their greatest disadvantages – has been tied closely to

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involvement in the institutions that its members have collectively supported, most notably HBCUs (Boyd, 2007). Hypotheses Despite the discrepancies highlighted in previous literature, the attraction of entrepreneurship continues to be positive among college-age African Americans. Various GEM reports suggest that ethnic entrepreneurship is on the rise in many regions of the world, and extol the importance of involving minorities in the entrepreneurial process in order to accelerate the overall pace of entrepreneurial activity within the economy (Reynolds, Camp, Bygrave, Autio, & Hay, 2001). While African Americans are still somewhat underrepresented as small business owners in the U.S., the growth rate of African American-owned small businesses is quite high (Martin, Wech, Sandefur & Pan, 2006). Sriram, Mersha and Herron (2007) suggest that entrepreneurial opportunities are critically important within the African America community as a means of overcoming the stagnation in our national economy, particularly in urban areas. In addition, a recent study from Junior Achievement found that 86% of African American teens expressed interest in starting a business (African American Entrepreneurs, 2009). This finding leads one to believe that many African American students view entrepreneurship as a legitimate career opportunity. As such, the following hypothesis is offered: H1: African American students will possess significantly stronger entrepreneurial attitudes than the Entrepreneurial Attitudes Orientation (EAO) scale’s validation group. Research has established a link between entrepreneurial attitudes and intentions and past business experience and exposure. This link may include direct work experience or indirect experience through a family business. Studies show that both work experience with a small business (Peterman & Kennedy, 2003) and a family business (Reitan, 1997) has a positive impact on perceptions of new venture feasibility and desirability. In addition, Gatewood and Shaver (1991) found that self-confidence and motivation can be affected by experience and past business results. Research has also addressed the identification of specific skills necessary for business development. Baum and Locke (2004) argue that skills related to resource attainment are needed to start and grow a new business venture. Organizational skills that are often learned in formal education settings are then needed to manage older, more developed organizations. Those who come from an entrepreneurial background are more likely to have been exposed to the resource allocation skills referred to by Baum and Locke (2004). They may have more confidence in their ability to start a business and be successful in a business venture. Since research has shown that entrepreneurial attitudes and intentions can change (Robinson et al., 1991), prior personal experience is likely to play a role in shaping these attitudes. Fayolle and Gailly (2013) found that prior entrepreneurial exposure and experience can directly impact entrepreneurial intentions, and

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that formal entrepreneurship training programs often have a greater attitudinal impact on those with limited experiences. Therefore, it is hypothesized that: H2: Past entrepreneurial experiences with entrepreneurial activities will result in stronger entrepreneurial attitudes for African American students. Methodology Participants Participants in the study included 93 students enrolled in business courses at multiple HBCUs. The schools surveyed were located in the southeast U.S., with the common denominator being an existing course curriculum related to entrepreneurship. At participating schools faculty members were asked to request that their students complete an anonymous online survey. Survey completion was entirely voluntary and no identifying information was recorded. Students within the sample were 54% female with an average age of 25. The participants came from all class levels, with the largest percentage classified as seniors (45%), followed by graduate students (29%), juniors (18%), sophomores (4%) and freshman (4%). In addition, consistent with previous research comparing unique sample group EAO scores (Gibson, Harris, & Sadighian, 2011; Harris, Gibson & Taylor, 2007/2008), the EAO validation sample (Robinson et al., 1991) was used as the baseline comparison group for this study. Measures We measured entrepreneurial attitudes with the EAO survey instrument (Robinson et al., 1991). The EAO is theoretically well grounded and provides a composite score based on four attitude subscales: 1) Achievement in business refers to concrete results associated with the start-up of a business (Cronbach’s alpha = .84), 2) Perceived personal control of business outcomes concerns one’s perception of control or influence over his or her business (Cronbach’s alpha = .70), 3) Innovation in business relates to acting on business activities in novel ways (Cronbach’s alpha = .90), and 4) Perceived self-esteem in business which relates to selfconfidence with regard to one’s business affairs (Cronbach’s alpha = .73). The four subscales have been shown to produce 77% accuracy in predicting entrepreneurship (Robinson et al., 1991). In addition to completing the EAO, participants provided demographic information with respect to gender, age, class standing, previous exposure to entrepreneurial organizations, and information related to their future entrepreneurial intentions. In order to measure prior exposure to entrepreneurial initiatives, two questions were asked: (1) Has your family ever owned a small business? (2) Do you currently own a small business or have you ever owned a small business in the past? The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Analyses Since the primary interest of the study is to examine differences between the African American student population and the scores of entrepreneurs used in the original validation of the EAO, t-tests were used to compare the means of each group on each of the attitudes and intentions of interest. Results Hypothesis one was supported in all but one instance. African American students possessed significantly stronger entrepreneurial attitudes than did the EAO’s overall validation group. In the one exception, entrepreneurial self-esteem, African American students were not significantly different, indicating they possessed comparable entrepreneurial orientation in this arena. Table 1 provides the descriptive statistics for the four entrepreneurial attitudes used as the dependent variables for the current study. Table 1 also indicates the results of the t-test for differences between our sample and the validation sample used to create the EAO. Table 1. Means and Standard Deviations for Entrepreneurial Attitudes

Entrepreneurial Innovation *

African Americans Validation Sample Entrepreneurial Achievement * African Americans Validation Sample Entrepreneurial Personal Control * African Americans Validation Sample Entrepreneurial Self-esteem African Americans Validation Sample * p < .05.

Mean 7.10 6.2 8.18 6.7 8.06 6.4 6.62 6.7

Std. Dev. t 1.02 7.78

Mean Diff. .82

1.25

11.40 1.48

1.50

10.67 1.66

1.68

-.45

-.08

Hypothesis two examined whether prior exposure to entrepreneurial activities was associated with stronger entrepreneurial attitudes within the current sample population. This supposition was supported for all entrepreneurial attitudes except entrepreneurial self-esteem. For self-esteem, having exposure via a family business or having one’s own business was not associated with significantly stronger entrepreneurial attitudes. Table 2 provides both the descriptive statistics, as well as the results of the significance testing, for this hypothesis.

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Table 2. Means and Standard Deviations for Entrepreneurial Attitudes & Prior Exposure

Entrepreneurial Innovation * Entrepreneurial Achievement * Entrepreneurial Personal Control * Entrepreneurial Self-esteem

Entrepreneurial Innovation * Entrepreneurial Achievement * Entrepreneurial Personal Control * Entrepreneurial Self-esteem

Has anyone in your immediate family ever owned a small business? Yes No Yes No Yes No Yes No Do you currently own a small business or have you ever owned a small business in the past? Yes No Yes No Yes No Yes No

N 44 49 44 49 44 49 44 49

Mean 7.26 6.80 8.50 7.89 8.43 7.73 6.95 6.32

Std. Dev. .88 1.10 1.21 1.23 1.32 1.59 1.68 1.63

N 12 81 12 81 12 81 12 81

Mean 7.97 6.88 8.98 8.06 9.08 7.91 7.15 6.54

Std. Dev. .71 .98 .88 1.26 .92 1.51 1.66 1.67

t 2.21

Mean Diff. .45

2.41

.61

2.40

.71

1.84

.63

t 4.69

Mean Diff. 1.09

3.18

.92

3.74

1.17

1.18

.61

* p < .05.

Discussion Given the realities of the current economy and the job market which college graduates are currently entering, it is of no surprise that interest in entrepreneurship is growing. A need exists for the continual encouragement of business ownership among African-Americans since less than 2% of all African Americans in the United States become business owners, compared to 5.6% for Caucasians (Ede, Panigrahi & Calcich, 1998). Comparisons of owner-age data indicate that owners between the ages of 25 and 34 represent only 17% of all African American business owners, the lowest percentage across all ethnic groups (Walstad & Kourilsky, 1998). This The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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finding suggests that a focus on introducing entrepreneurship at an earlier age may have a significant impact on reducing the disparity in business ownership by African-Americans. In addition, some argue that limited opportunities for minority career advancement in the corporate world, particularly African Americans, makes entrepreneurship a more attractive and viable alternative (Basu & Altinay, 2002; Sriram, Mersha & Herron, 2007). While research has made significant strides in predicting what factors promote overall entrepreneurial success, less is known about why some individuals pursue entrepreneurial initiatives and some do not, and why some groups succeed at higher rates while others fail. According to Fairlie & Robb (2008), much still needs to be learned about why some racial groups are more successful in their entrepreneurial endeavors than others. This examination of the entrepreneurial attitudes of African American business students seeks to provide insight into this phenomenon. The economy is highly dependent on small business and entrepreneurship, and this observation very much includes the enterprises of African Americans. As previously stated, approximately one million African American owned businesses exist in the U.S. accounting for $100 billion in annual sales (African American Entrepreneurs, 2009). In addition, 86% of African American teens polled by Junior Achievement expressed interest in starting a business (African American Entrepreneurs, 2009). According to another sample of African American teenagers, their interest in entrepreneurship stems from a desire to be more autonomous and to help others (Wilson, Marlino & Kickul, 2004). These statistics are highly consistent with our findings. The emerging minority entrepreneurs included in the current study were found to have significantly stronger entrepreneurial attitudes than the student entrepreneurs who were originally used to validate the Entrepreneurial Attitudes Orientation scale. The findings of this study with regard to the impact of prior exposure to entrepreneurial activities and its impact on attitudes are also consistent with what is known about real-life entrepreneurship. Other researchers indicate that intergenerational linkages in business ownership are quite strong. Some studies indicate that being self-employed is much more likely for the children of entrepreneurs (Fairlie & Robb, 2008). In fact, census date estimate that more than one half of all business owners had a self-employed family member (U.S. Census Bureau, 2006). It is particularly good news to find that African American students in the sample scored high in achievement and innovation. Many studies (Collins, Hanges & Locke, 2004; McClelland, 1961; Rauch & Frese, 2007) found that the need for achievement is a strong entrepreneurial trait and is positively correlated with business success. In addition, achievement-oriented entrepreneurs often have the necessary blend of temperament and talent to identify business opportunities and arrange organizational resources to capitalize on these opportunities (Busenitz & Arthurs, 2007). Early research by Schumpter (1949) emphasized that innovation is a core concept for entrepreneurship. More recent research on innovation has shown that entrepreneurs are more innovative than the general population (Rauch & Frese, 2007). They are also critically important for their ability to innovate in the marketplace (Bosma & Harding, 2006). Unfortunately, The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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research also shows that minorities are often not involved in innovative businesses and tend to focus more on the service and retail sectors due to the low entry barriers (Marlow & Patton, 2005; Robb, 2002). However, these industries are also noted for higher failure rates. Perhaps the next generation of African American entrepreneurs will approach business creation from a more innovative viewpoint, regardless of the industry sector. An additional concern is the fact that minority business entrepreneurs and business owners often fail to seek help and advice from mainstream institutions (Dyer & Ross, 2007), which can provide an important assistance in their entrepreneurial endeavors. It has been noted that they tend to avoid business support agencies such as chambers of commerce, commercial banks and government-sponsored institutions (Marlow, 1992). Other studies (Oc & Tiesdell, 1999; Ram, Sanghera, Abbas & Barlow, 2000; Young, 2002) also found that minority business owners are reluctant to utilize formal training programs. The lack of entry into innovative businesses and the reluctance to seek help from formalized support systems indicates a greater need for entrepreneurial education targeted towards minorities. Although not a primary focus of our study, it is important to note the value that entrepreneurship education at various academic levels can play in helping prepare African American students for success in the entrepreneurial world. Research shows that many young adults, particularly those aged 25-34, are very much interested in new venture creation. Moreover, individuals with post-secondary academic experience are more likely to act in an entrepreneurial manner (Minniti, Bygrave & Autio, 2006). Fortunately, the number of academic courses on small business and entrepreneurship has grown dramatically over the past few decades (Solomon, Duffy & Tarabishy, 2002). Entrepreneurial education can prepare youth for new venture initiation by nurturing entrepreneurial motivation and helping them develop the knowledge and relevant skills that improve self-efficacy and effectiveness (Ede, Panigrahi, & Calcich, 1998; Fayolle & Gailly, 2013; Hatten & Ruhland, 1995). Kourilsky (1995) concluded that the supply of entrepreneurs could be increased if more people were to develop a positive perception about the feasibility and desirability of entrepreneurship through educational preparation at an early age. Similarly, Fayolle & Gailly (2013) suggest that training programs can help strengthen entrepreneurial attitudes and intentions, particularly for those lacking entrepreneurial experiences. Thus it is critical for colleges and universities to offer entrepreneurship programs for young adults interested in business ownership. These programs can help them to recognize that entrepreneurship is a viable career choice, and they can also equip them with a skill set for business development. Thompson (2004) suggests that talent and temperament are vital for entrepreneurs, and talent can be improved through participation in educational programs. If someone’s temperament to be an entrepreneur can be assessed, then learning can be “relatively quick and easy” when appropriate training is provided (p. 246). With the growth of African American participation in entrepreneurial activities, it is reasonable to assume an increase in their interest in entrepreneurship education (Martin et al., 2006). The large presence of African Americans at HBCUs can provide a significant opportunity The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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to influence a new generation of aspiring entrepreneurs. In order to better prepare students for business ownership, these institutions should consider offering formal mentorship programs to complement their educational offerings. Our results indicate African American students have an active entrepreneurial mindset. A more developed skill set and network can help these young adults overcome any real or perceived obstacles, and unleash their entrepreneurial passion to become more actively involved in new venture creation. A model of urban entrepreneurship proposed by Sriram, Mersha, and Herron (2007) suggests that skills, motivation, and resources are all important factors for entrepreneurship to occur in the African American community. The model emphasizes that personal traits and values are impacted by culture and work together in determining an individual’s level of motivation, which in turn impacts entrepreneurial behavior. Similarly, other studies (Lindsay, 2005; Morrison, 2000) argue that culture is important because it plays an integral role in determining entrepreneurial attitudes and whether entrepreneurial behaviors are desirable. Sriram, Mersha and Herron (2007) suggest that entrepreneurial achievement is driven by individual behavior and moderated by resource availability. They advise that close attention should be paid to the value of appropriate interventions in regards to promoting more entrepreneurial activities in the African American community. Educational programs can often be an effective intervention to encourage more minorities to consider business ownership as a viable alternative. However, as proposed by Dana (2001), in order for these programs to be successful they should be based on an understanding of cultural history, values, and way of thinking. When compared with the work of Sriram, Mersha & Herron (2007), our findings are likely to be good omens. If one accepts the premise that attitudes are precursors to intentions, which then predict behaviors, the current generation of African American business students is well suited to pursue and succeed in the entrepreneurial realm. They have not only the motivation to pursue new business opportunities, but also have unprecedented access to the human capital that is gained through education and prior exposure to entrepreneurship that are necessary determinants of success in this field. Limitations and Future Research Promoting the success of small business enterprises plays an important role in our national economy. Minority firms hire more than 4.7 million employees, a disproportionate share of them minorities (U.S. Census Bureau, 2006), and many of these jobs are located in disadvantaged communities. Furthermore, increased entrepreneurial activities can result in a lower unemployment rate, increased establishment of new companies, and fewer failures of existing businesses (Hatten & Ruhland, 1995). Given the fact that minority-owned businesses do not have the same profitability outcomes of white-owned enterprise, all efforts to understand this discrepancy should be undertaken. Scholarly research on the entrepreneurial experiences of African Americans today is limited and is not fully understood within the context of social science literature.

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While our study attempts to learn more about the entrepreneurial attitudes and experiences of young African American adults, it is not without its limitations. For one, a greater sample size is likely warranted to facilitate better generalizations about African American entrepreneurs. In addition, our sample was limited to students attending HBCUs. While these institutions serve as an important vehicle for African American students, these students may not be representative of the types of students found at other universities with a more varied population. Finally, our study did not attempt to categorize the types of previous entrepreneurial experiences among students; different types of experience may impact entrepreneurial attitudes and intentions in different ways. Fortunately, our findings indicate that one area that should not be an impediment to the present generation of nascent entrepreneurs is their attitudes toward business ownership. We encourage more research that attempts to better understand the entrepreneurial skills, abilities, and attitudes among the African American population. With a better understanding of these factors, we can develop a more comprehensive policy and training programs to promote it. A greater supply of African American role models can serve as valuable mentors to young aspiring entrepreneurs who are interested in business ownership. As African Americans achieve greater entrepreneurial success, the economic standing of all Americans is improved and the small business sector’s overall strength is solidified. References Acs, Z., Tarpley, F. A., & Phillips, B. D. (1998). The American evolution: The role and impact of small firms. Washington, DC: SBA Office of Advocacy. Retrieved July 1, 2006, from http://www.sba.gov/advo/stats/econ_arch/evol_pap.html. African American Entrepreneurs. (2009, September). Retrieved from esmalloffice.com: http://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL27_0000.htm Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. Audet, J. (2004). A longitudinal study of the entrepreneurial intentions of university students. Academy of Entrepreneurship Journal, 10(1), 3–16. Basu, A., & Altinay, E. (2002). The interaction between culture and entrepreneurship in London’s immigrant businesses. International Small Business Journal, 20(4), 371-393. Baum, J. R., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4), 587-598. Bennett, P. R., & Xie, Y. (2003). Revisiting racial differences in college attendance: The role of historically black colleges and universities. American Sociological Review, 68(4), 567-580.

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Walstad, W., & Kourilsky, M. L. (1998). Entrepreneurial knowledge and attitudes of black youth. Entrepreneurship Theory & Practice, 23(2), 5-18. Weiler, S., & Bernasek, A. (2001). Dodging the glass ceiling? Networks and the new wave of women entrepreneurs. Social Science Journal, 38(1), 85-103. Wilson, F., Marlino, J., & Kickul, J. (2004). Our entrepreneurial future: Examining the diverse attitudes and motivations of teens across gender and ethnic identity. Journal of Development Entrepreneurship, 9(3), 177-197. Young, M. (2002). An examination of information sources and assistance programs available to minority-owned small businesses, Journal of Developmental Entrepreneurship, 7(4), 429-444. Young, N. M. (2007). Toward a rethinking of race, culture and the African American entrepreneur. In L. P. Dana (Ed.). Handbook of research on ethnic minority entrepreneurship (p. 157-177). Cheltenham, UK: Edward Elgar. About the Authors Shanan G. Gibson is an Associate Dean in the College of Business at East Carolina University. Her research interests include entrepreneurship education, entrepreneurial attitudes, and human resource management issues such as job analysis and technology acceptance. Shanan’s consulting efforts focus on helping small businesses implement more effective selection, performance management, and transition strategies. Michael L. Harris is an Associate Professor in the Department of Management at East Carolina University. He is currently the Vice President of Membership for the National Small Business Institute®. His research interests include entrepreneurial attitudes and intentions, strategic and minority entrepreneurship, and entrepreneurship education. Patrick D. Walker is an Associate Professor of Nonprofit Administration & Law in the Department of Nonprofit Administration at Lindenwood University. He serves as Vice President-Programs for the National Small Business Institute®. His research and consulting interests include social entrepreneurship, and managerial & legal insight decision-making for small business and nonprofit stakeholder analysis. William C. McDowell is an Associate Professor in the Department of Management at East Carolina University. He serves as President-Elect for the National Small Business Institute®. His research interests include family business, small business management, and strategic management.

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Executive Interview Learning from the CEO of Electro Imaging Systems, Inc.: A Conversation with Qasim Tarin

Belal A. Kaifi, Trident University International Yalda Tarin, University of California, Davis _____________________________________________________________________________ Executive Summary Qasim Tarin is the Chairman of the Afghan Business Network, Inc., the president and CEO of Electro Imaging Systems, Inc., CFO of Afghan International Development Corporation and President of Afghan American Chamber of Commerce Northern California. He is a member of the Rotary International and the CEO Alliance Group. He is also part of the advisory group of Business Technology Associations. As an entrepreneur, Qasim has built his own successful organizations and has a consulting business helping other entrepreneurs develop their businesses worldwide. He is both a business owner and business developer, helping to rebuild Afghanistan's economy as well as restoring business. As an Afghan American, Qasim Tarin understands the culture along with the desires of the Afghans and can reach out and relate to them. In 1979, Qasim earned a degree in electrical engineering from International Telecommunication Union (ITU) in Kabul, Afghanistan. Through his education, Qasim was involved in connecting channels of telex and telegraph between Moscow and Kabul. He was also involved in the design of a typewriter to be connected to a PC through Teal Industry. Unfortunately, in the same year, the Soviet Union invaded Afghanistan and war broke out. Qasim left Afghanistan for the United States so that he could start a new life away from war and turmoil. He landed in the U.S. with only 50 dollars in his pocket. He slowly worked his way up, determined to be successful for the sake of his family. Qasim has been trained and has worked with large corporations such as Toshiba America, IBM, Cannon USA, Xerox Corporation, Hewlett Packard, Ricoh Corporation USA and Sharp Electronics. Through his leadership training for management and education from IBM, HP, Xerox universities and experience, Qasim Tarin began developing his own dotcom and technology business in 1994 in Pleasanton, California. Electro Imaging Systems, Inc. (EIS) is a document solutions business that provides top of the line copiers, facsimiles, printers, scanners, The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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software, Multi-Functioning Printers (MFP), Managed IT Services, and Managed Print Systems (MPS). He started his business from zero and built the company to a multi-million dollar corporation in Northern California. In 1988, he married Salma Tarin, an Afghan American who also left Afghanistan due to the Soviet invasion. They now have three beautiful daughters. With his wife, Salma, Qasim developed the idea of the Afghan Business Network to give his knowledge and expertise of business development to all entrepreneurs around the world. Authors: Why do you think it is important for leaders to be both task and relationship oriented?  Tarin: I agree that both are important. Relationship creates a moral support process and task is when specific duties need to be fulfilled based on the structure of an organization. Leadership comes in both ways. It’s a combination of both because as a leader you need to motivate by creating a relationship-oriented environment and thus create a task-oriented environment. For example, leaders may use positive relationships with their employees in a way to create motivation for them to complete tasks. Employees will take their tasks more seriously because leaders will create a more motivational and positive environment for their employees. Authors: How can a multi-generational workforce learn from one another? Tarin: A leader must understand diversity in a workforce with different generations working in a business. I see the differences in mentalities and personalities of the different generations and it sometimes causes discrepancies in a business. However, everyone is unique . Just like each finger print is unique, so are people. In order to manage different generations, have them work together efficiently and productively, a structured system needs to be created. You can’t create a job for the person. You need to create a system and bring the right person for that job. I firmly believe that the younger generations need to become the leaders and the older generations need to guide them and contribute their experience to those leaders. If we put an environment in that direction, all will work together efficiently. They will get along very well because they will understand the boundaries around them. They will understand the tasks each person is fulfilling which makes the system more organized and the different generations will work together more productively. Authors: As a manager, how do you enhance motivation levels? Please provide examples. Tarin: Not everyone is motivated the same way. As a leader, you have to recognize each of your employees and see how each gets motivated. So you take each individual case, then build upon it and make sure that the employees are motivated accordingly. Some employees are motivated by bonuses, power, title, recognition, etc. That’s how you recognize each individual and focus on each person one on one. That creates a positive relationship with the employee. Having a positive relationship with the employee also plays a role in motivating the employee to work hard and do well in their duties. In my organization, I find ways to motivate all my employees but most importantly the managers of each department. A leader must pass their motivational strategies to managers so they can continue to motivate their team. The leader of the chain of command must pass on their motivation strategies so they can continue to motivate their teams and create a positive working environment. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Authors: What skills and traits do leaders need? How can a person develop his or her leadership skills? Tarin: I believe that a leader must be an individual who can think outside the box. Most importantly, I believe that education is the key. A leader should complete their education in order to use their knowledge to lead and teach others what they know. For example, let’s say you went to school from preschool until you completed your PhD. Let's say you completed your education at age 30. You then acquired 35 years of work experience. That would be 65 years of education. Now, let's say you write a 500 page book in regards to your knowledge and expertise of 65 years. An individual can read that book in about a month and acquire 65 years of education from you. In order to lead, one must be an expert at the profession they are in and be able to lead a workforce with less education than them. We learn from the past and implement it in the right direction. Authors: Who is a leader that you admire and why? How has this person influenced your leadership style? Tarin: There are many leaders that have done a fantastic job and I admire them all. I admire leaders like Dr. Martin Luther King Jr. Dr. King has made an impact on human rights and that has affected the entire world. He succeeded in humanitarian rights, in leadership, and in changing the society of a nation in a positive way. I admire the way he gave speeches so eloquently. I mostly admire the fact that he was able get so many people to follow him in order to bring a change in the US. Learning about his experiences has inspired me based on his leadership and inspiring others to make a change in society. Authors: Based on your vast experiences, how has the workforce changed over the years? Tarin: The workforce is always changing through time. Tomorrow is unpredictable. Women and minorities have become more involved in today's workforce because of the change of society. Society has become more liberal and accepting. Thus, their involvement has greatly improved today's workforce compared to the workforce in the past. Let me tell you what is going on in Corporate USA right now. The key is that the businesses don't always stay the same because both the businesses and workforce are always changing. When a business plan is written, the plan has to be reviewed based on the business workforce. For example, let's go back to the early 2000's. We never thought Nasdaq would crash because stocks and technology are so advanced. However, we were stuck in the Silicon Valley, the heart of technology. We thought the heart of technology is here. We've done so much, we've developed so many applications and software, but we never thought that these companies would crash over night! Why did that happen? Because we didn’t believe that would happen and therefore we were not prepared for it. That's why it burst the bubble in the housing industry. Furthermore, the economy affected the whole world. As a leader, one must be aware of all the constant changes. One must be flexible and diverse in order to maintain a business based on the change in the workforce. Authors: Do you consider yourself a leader or a manager? Explain why.

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Tarin: I consider myself a leader. Leadership is in me because I am a visionary person. A leader is a person who sees the future and creates ideas in their mind and implements it. Leaders are always ahead of the game and always coming up with new innovative ideas. I always have people follow me based on my right direction. Everything that I've done, I have drawn people to follow me. I know exactly what to do and how to follow my process. A manager is someone who makes sure the job has been done correctly. The leader is the visionary person, the person who thinks outside the box. In other words, managers follow a strict guideline to maintain a workforce and a leader is someone who implements innovative ideas that creates a system where a manager functions as well as a workforce. Authors: What kind of performance management system do you use or recommend and why? Tarin: My management system is based on three important factors. I call it the triangle method. The first factor is responsibility. Responsibility is when you give someone a task; they are responsible for finishing the task correctly and on time. The second factor is accountability. Accountability is when you keep the employee accountable based on what the responsibility is and what they need to complete. The last factor is giving the employee authority to make the right decision within the task. I have always used this triangle method. This method has always been very effective for the productivity and performance management of EIS. Authors: What strategies do you recommend for maximizing productivity levels in the workforce? Tarin: There are so many ways to maximize the productivity of employees in a workforce. My personal opinion is that you need to motivate your employees and inspire them to be a leader to complete their tasks correctly. I promote my employees to become leaders and to make others leaders as well. For example, I help the managers of the different departments to motivate everyone in their department like I motivate the managers. The best way you can understand the subject is to teach the subject. In order to become a strong leader you must teach, train, and motivate others to become leaders. In return, that creates higher productivity because of higher motivation and encouraging interaction of the employees. Authors: Provide some examples of how you empower your employees. Tarin: I empower employees by motivating them. I give them responsibilities, accountability, and authority in any task they are completing. By making employees fully in charge with specific expectations, employees will be motivated to complete the task productively.. Authors: How do you reward your employees? Should rewards be based on merit? Tarin: Yes, I believe rewards should be based on merit and in order to do that you must gauge your employees. By gauging the employees, you can measure the performance of the employee and reward them based on their results and activities. To me, it's all about activities and the more activities the better the result. If there is no activity, of course there will be no result coming out of it. That is why you gauge and measure the activities based on an organized system. When you create an organized system and everyone works according to the system, the results will always be there. Based on the activities and result, employees will be rewarded. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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Rewards could be raises, bonuses, promotions, and other incentives. With these incentives, it serves as a motivation for employees to complete their duties to the best of their ability. Authors: What advice do you have for new employees entering the workforce? Tarin: Every business has its own culture. Learning the culture of that business is very essential in order to do well in that company. New employees lack the training and the understanding of the culture of the company. Once they learn the culture and follow the system, then they will work efficiently. Authors: How can a leader influence and mold a culture of an organization? Tarin: A leader should lead by example in order to mold a culture of an organization. When a leader leads a business, all the employees will also follow in that direction. You mold a business based on who the leader is, the culture of that leader, and their personality. A leader will automatically mold the organization and the workforce around the leader's personality and work ethic. In certain situations, leaders are flexible with the way the employees are. I love when employees give suggestions and new ideas; I always take their ideas into account. No leader is perfect. A leader must always surround themselves with the right people by hiring employees that are the best fit for the company. Authors: Can organizational politics help an organization? Tarin: Well in certain levels, politics will stay in the nature of an organization. I would say it’s best to keep it strictly business and not involve politics. We need to separate everything away from the business that has no benefit to the productivity of the company. Authors: How important is team work in your profession? Tarin: Team work is very important. Team work is the backbone of EIS. The teams of an organization will achieve many goals by working together. Teams bring more productivity and more effort on any task. When you have many forces together reaching one goal, it’s very powerful instead of one person completing that particular task. Authors: Do you think your education has complemented your work experience, or has your work experience complemented your education? Tarin: I believe that my education has complemented my work experience. There are two different ways of learning: one is learning through experience and one is learning through education. Both are very important but education is learning through book reading and research. With education you can learn 350 years of experience by reading 10 books. How much experience can I do within 5 years? Yes, I will learn through experience but having education creates a stronger force. Therefore, my education has complemented my work experience. Authors: What motivates you to be successful? Tarin: My family motivates me. They have always motivated me to work and to enjoy life. They motivate me because I see the potential in them and their successes make me proud. That makes me more excited and motivated in my life because I believe in my family. I work and The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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enjoy it. I'm like a soldier; I never get tired. Why? It’s because of my family and my vision of them being successful in the future. Authors: If you could go back to college, what would you have majored in? Tarin: If I were to go back to college and start all over again, I would major in political science and economics. I’m very passionate about politics especially with the politics in Afghanistan. A degree in political science is something I would have looked into. With economics, I would have used that knowledge with my business as well as for politics. I could do a lot more now if I got my major in both. I got my degree in Engineering at International Telecommunication Union that helps with technology and software. I don’t regret getting my bachelor’s in that but majors in political science and economics would have helped more. Authors: Describe a typical day at work for you. Tarin: Punctuality is essential when being a leader in an organization. I love being punctual in everything I do. I always love to come to work before everyone shows up and I leave after everyone else leaves the office. I like doing that because I want to show my employees that I’m very dedicated to this business. Once employees see that, the employees follow the same routine. As I come to work in the morning, I greet all the employees and whomever I see. Before the day starts, I plan ahead of time. I schedule out my day beforehand and follow my schedule and what needs to be done. I follow my schedule to keep things running smoothly on a day to day basis. My motto is time management. There are only 24 hours in a day. You can’t add or subtract hours from the day. It’s impossible. Time is always ticking. The best decision is to manage your time. You need to plan yourself around the time. By following a plan or schedule, you will be less stressed and you will get things done in a timely manner. Authors: Where do you see yourself in 5 years? Tarin: I see myself retired. I would love to get more involved in politics; in particular, human rights and humanitarian work. That is my goal after 5 years after I retire so I can build my wealth to support and balance joy and work. I’m one of the leaders in creating the Unity and Freedom Movement of Afghanistan. This movement is the first and only political advocacy and lobbying group registered for Afghanistan in the United States. The mission of this movement is to seek security, protection of national sovereignty and self-determination of the people of Afghanistan. We are working for restitution and strengthening of national unity of Afghanistan without any type of religious, linguistic and tribal discrimination. After 5 years, I would like to continue with this movement to create a better tomorrow for Afghanistan and its people. Authors: What is your span of control? Tarin: I have approximately 26 employees working for my company. I also created different management levels based on the structure of the business. I manage three divisions of the company which includes service, sales, and operations. Each division has a manager that manages that department and I manage the function of the entire company.

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Authors: You mentioned before that the majority of businesses that start end up failing within the first year. From your experience, how can a business owner and leader maintain their business for a long-term? Tarin: The American dream consists of having your own business and being your own boss. Once business owners start up their business, they take the position of the owner of their company. Many obstacles come along with being an owner of a company and one must know how to handle those obstacles. These businesses also don’t have enough financial support. It’s challenging for a business plan to be the same for 5 years. They must look at their business plan on a yearly basis and modify it accordingly based on the state of the market. The businesses that keep their businesses maintained for many years are more focused on their business and always update their business plans. They understand the changes on a daily basis. They understand what it takes to be a leader; they think outside the box and are innovative thinkers. Those folks understand their strategic plan; they have a guideline and they know how to motivate others and they know how to motivate themselves. About the Authors Belal A. Kaifi completed a post-doctoral program at the University of Florida’s Warrington College of Business Administration where he researched Management and Marketing. He earned a doctoral degree from the University of San Francisco where he studied organization and leadership. Belal is a Professor of Business Administration at Trident University International. Belal can be reached via email at: [email protected] Yalda Tarin completed her undergraduate studies at the University of California, Davis where she studied Economics and Sociology. She has worked for the U.S. Department of Commerce and Afghan Business Network. She is currently working at Electro Imaging Systems, Inc. as an intern coordinator and a customer relations manager. She can be reached at: [email protected]

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Idea to Invention: What You Need to Know to Cash in on Your Inspiration Patricia Nolan-Brown AMACOM, 2014 272 pages, paperback $13.45 Reviewed by: Hayden Wimmer Bloomsburg University As uncertainty plagues the economic landscape, many individuals have posed the question “How can I be my own boss?” or “How can I be successful and self-reliant?” Many have considered creating products only to be discouraged by the labyrinth of legal regulations or to be discouraged by friends, colleagues, and family. Patricia Nola-Brown’s book Idea to Invention: What You Need to Know to Cash In on Your Inspiration is the ideal remedy for such afflictions. Nolan-Brown’s book is designed to assist the reader with the process of invention and entrepreneurship. The author supports the reader by dispelling common obstacles such as unsupportive friends and family, guides the reader through self-assessments, untangles the maze of legal processes, and gives a clear path toward developing and invention followed by bringing the new product to market. Nolan-Brown brings real world experience into the book citing her many inventions and innovations. In the first chapter, the author provides the reader with her background. She paints herself as a common woman from a humble start who has been successful with bringing inventions to market. Her main invention, a rear facing baby seat mirror, is described and is a recurring theme throughout the book. This invention is designed so someone has the ability to see a child in a rear facing child seat while driving. She describes this as an idea she stumbled upon as a mother who couldn’t see her child when driving. This clarifies the theme of recognizing a need for a new or improved product in the marketplace. The next section of the book, chapters 2-8, are designed as a self-reflection for the reader. Here, the author guides the reader through the process of self-discovery. This begins with a basic quiz, I.N.V.E.N.T., which is designed to measure personality basics so the reader has a foundation of their personality traits. Chapter 3 deals with curiosity and how to nature one’s curiosity by always asking questions and researching ideas and interests. Chapter 4 deals with developing a thick skin to deal with and mitigate the criticisms and detaching from one’s ideas. Chapter 5 explains how to talk with and feel passion for a project and also guides the reader through the concept of an “elevator pitch.” Chapter 6 gives the reader techniques to re-energize The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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and stay energized such as short naps, baths, or even chewing gum supported by stories of famous people who have used such techniques. Chapter 7 provides useful techniques to inspire and nurture our creativity to keep ideas and projects flowing. Chapter 8 encourages us to develop tenacity and to not give up on our dreams and cites the example of Mrs. Fields Cookies and how Debbi Fields overcame adversity by having faith in herself, her idea, her product and ultimately fostering a highly successful company. Following self-reflection, the subsequent chapters 9-16 take the reader through the steps of invention. Chapter 9 introduces Nolan-Brown’s 6 steps to invention with each subsequent chapter delving into the details. First, thinking about an idea is covered which tasks readers to examine every-day life for needs and ideas that could fill those needs and how to organize one’s ideas. Following thinking of an idea, “Cook It” gives the reader the tools necessary to proceed and research one’s idea to see if it exists or there is an existing trademark. Next, the author introduces and explains the concepts of intellectual property and explains non-disclosure agreements, trademarks, patents, and associated attorneys. Chapter 13 focuses on pitching the product and explains concepts such as cold-calling, press releases, and trade shows. Following pitching the product, making the product is discussed including licensees, agreements, and manufacturing. Step six of the six steps of invention is the chapter “Bedazzle It” where NolanBrown discusses product enhancement complete with examples such as adding a cup holder to a shopping cart to entice shoppers to spend more time in the store. A book on invention and marketing would not be complete without a chapter on online presence. Social media techniques such as online branding, websites, search engines, blogs, Facebook, LinkedIn, YouTube, and other social media platforms are revealed in Chapter 16. Finally, the concluding chapters provide a wrap-up and suggestions for leading a healthy and happy life as an inventor. Overall, this book does a superb job of guiding the aspiring inventors and entrepreneurs toward discovering their personality traits, how to capitalize on their personalities, develop a product, bring it to market, and live a balanced life as an inventor. Many individuals have ideas that could be turned into money making products; however, they lack the understanding of the process to develop a prototype, apply for patents, develop relationships with manufacturers, market the product, and live a happy, healthy life. Patricia Nola-Brown’s Idea to Invention: What You Need to Know to Cash In on Your Inspiration is the ideal manual to guide the reader through the process. The book is written in an easy to understand, enjoyable format and avoids excessive jargon making it understandable to readers of any background or level. This book is highly recommended for those who want to gain a firm grasp of their personality and how to apply it to the process of bringing an idea from conceptualization to realization in an easy to understand format.

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Public Support of Innovation in Entrepreneurial Firms Albert N. Link Edward Elgar Publishers, 2013 191 pages, $ 110.00 (Hard cover) Reviewed by: Daniela Feenstra Penn State University Albert N Link is a professor of Economics at the University of North Carolina at Greensboro. His book Public Support of Innovation in Entrepreneurial Firms is a well-chosen collection of some of his previous research in the area of public support of innovation, mainly through government programs, in small, technology-based entrepreneurial firms. A major contribution of this book is the access the author had to data collected by the National Research Council (NRC) of the National Academies of the United States on projects funded through the Small Business Innovation Research (SBIR) program. The book is organized into four sections. Section one focuses on commercializing new technology. This section is composed of two papers: 1) Bringing science to market: Commercializing from NIH SBIR awards, and 2) Government as entrepreneur: Evaluating the commercialization success of SBIR projects. The papers conclude that even with the assistance of the U.S. Small Business Innovation Development Act, a firm does not have a greater chance to commercialize from a Small Business Innovation Research (SBIR) award. Section two focuses on Employment growth from public support of innovations. This section is composed of two papers: 1) Employment growth from public support of innovations in small firms, and 2) Employment growth from the Small Business Innovation Research program. Employment growth is analyzed in both short-term and long-term employment. Through an analysis of the NRC data, the papers conclude that while there is no significant increase in short-term employment that can be associated with the SBIR founded research, there is an increase in long-term employment that can be associated with the SBIR program. Section three focuses on the spillover benefits from public support of innovation and it is composed of five papers: The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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1) Public/private technology partnerships: Evaluating SBIR-supported research, 2) Public gains from entrepreneurial research: Inferences about the economic value of public support of the small business innovation program, 3) Public knowledge, private knowledge: The intellectual capital of entrepreneurs, 4) The exploitation of publicly funded technology, and 5) Regional appropriation of university-based knowledge and technology for economic development. This section looks at the social spillovers of the technological developments supported by the SBIR program. The main conclusion is that there are in fact many positive social developments that can be attributed to projects supported and sponsored by the SBIR program such as regional growth and development, and the creation of codified knowledge through publications and patents. Section four focuses on recommendations on policies towards future funding of public support of innovation and it is composed of three papers: 1) Leveraging entrepreneurship through private investments: does gender matter? 2) Private investor participation and commercialization rates for government-sponsored research and development: Would a prediction market improve the performance of the SBIR programme? and 3) Universities as research partners in publicly supported entrepreneurial firms. This section offers many recommendations. One of the main recommendations relates to the finding that women tend to have fewer opportunities to receive private funds for the commercialization of their SBIR sponsored innovations. Suggestions are also made for the creation of a prediction market for future award selection. This book is a nice collection of papers and I found reading them to be very informative. The author did a great job choosing papers that introduced the topic and made a point for the importance of understanding why the SBIR program was implemented as well as the challenges and successes that have been experienced as a result of its implementation.

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Leadership 2030: The Six Megatrends You Need to Understand to Lead Your Company into the Future George Vielmetter and Yvonne Sell AMACOM (2014) 244 pages, hardcover, $27.95 Reviewed by: M.J. Park, Bloomsburg University of Pennsylvania

Are you an experienced leader, or one that seeks to develop their talents, or perhaps even someone that hopes to be a leader in the future? In each case, Leadership 2030 by Vielmetter and Sell is an excellent resource for you. The book offers a framework for leaders who must evolve with the continuously changing business environment. This fast pace of change, due to the convergence of many global forces, presents new challenges to even the most experienced leader; therefore, a reference of this type will prove valuable. Vielmetter and Sell extensively analyzed existing research on the main drivers of change and identified six megatrends in a global society that have significant implications for leadership and the business environment. The authors cite John Naisbitt’s definition of a megatrend as a “long-term, transformational process with global reach, broad scope, and a fundamental and dramatic impact.” In Leadership 2030 the authors focus on the following six megatrends: Globalization 2.0; Environmental crisis; Individualization and value pluralism; the Digital era; Demographic change; and Technological convergence. As you read this list, perhaps you will agree that these are not impending events, but trends that effect leaders today and that will continue to do so into the future. The purpose of Leadership 2030 is to provide insight to leaders, who plan to thrive in this challenging business environment, through identifying the essential points related to each megatrend, the strategy-related questions that leaders should ask, the corresponding demands placed on those in leadership, and the essential strategic actions for success. And, as each megatrend does not exist independently, Vielmetter and Sell discuss the convergence of these megatrends to form a complex environment that is supported by reinforcers and dilemmas. In their words, this convergence creates “a perfect storm” for organizations and their leaders. In the introduction, by looking back into history, the authors prepare the reader by dashing false perceptions of permanence or the ability to accurately predict future events. As a society, we may understand the concept of change, but recognizing the acceleration and breadth of change is crucial to creating a new perception. The background on their research process, the dimensions of a megatrend, and the development of the six megatrend framework as a tool for The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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prediction are discussed. Further, a model is provided that illustrates the impact of the six megatrends on working patterns at multiple levels of an organization. In the first six chapters of Leadership 2030, Vielmetter and Sell discuss each of the megatrends respectively. The chapters are organized in a way that guide the reader to understanding and begin with “Five Essential Points” that highlight the major themes of the megatrend. This section is followed by “Five Questions Business Leaders Should Ask”, each of which provokes thinking on the relationship of the megatrend to an organization’s strategy. Next, the authors discuss the evolution of the megatrend and, to further illustrate this evolution, include a case study of a business and/or industry. Finally, each chapter includes a section on the implications of the megatrend and with these implications in mind, the chapters end with a summary of the challenges and demands that organizations and their leaders will face in the global business environment. For each of these demands, Vielmetter and Sell suggest how organizations and leaders will be required to act in order to successfully meet these challenges. In the seventh chapter of Leadership 2030, the authors recognize that the six megatrends do not exist independently and that in combination, they “intensify the difficulties for business leaders” to create a complex “perfect storm.” The authors describe five reinforcers and four dilemmas that are consequences of the combination of the megatrends. These reinforcers and dilemmas exacerbate the challenges of each megatrend. The reinforcers are stakeholder proliferation, power shift, new working practices, cost explosion, and ethicization of business. The dilemmas identified are paradoxical challenges related to mobility, resources, hierarchies, and horizons. And as with the six megatrends, readers will recognize from the descriptions of the reinforcers and the dilemmas that these are not looming events, but current challenges faced by leaders and their organizations. Vielmetter and Sell recognize that the next question a reader will ask is “How do I cope?” and the provide insight in their final chapter. The Altrocentric Leader is the focus of the eighth chapter and is perhaps the most interesting chapter of Leadership 2030. The “Five Essential Points” highlight the themes to be discussed. The authors contend that leadership is changing from “coercing and pacesetting” to a “social practice.” Further, to be successful in the megatrend environment they must be an altrocentric leader which (a) must understand that leadership is a relationship, (b) be characterized by values and inner strength, and (c) be adept at engaging stakeholders and at complex strategic thinking and execution. Sections of this chapter discuss topics such as self-image, motives, and power, as well as the competencies of the altrocentric leader, and include case studies to illustrate a few of the concepts. At this point in my reading, I wanted to know, “How does one become an altrocentric leader?” Vielmetter and Sell conclude Leadership 2030 with insight into this process by guiding the reader through a series of 12 questions to determine what type of leader they are today and providing coaching for those who may have a desire to take the next step toward altrocentric leadership. Leadership 2030 contains valuable information for everyone in leadership as these megatrends are the global challenges that exist today and that will only intensify in the future. The Journal of Applied Management and Entrepreneurship, 2014, Vol. 19, No. 2

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As a business professor and former executive, I found this book extremely interesting and timely. I have shared this book with several classes of students. These students plan to lead, now and in the future, and I firmly believe that this book will help them to distinguish themselves from others in that journey. So whether you are an experienced leader, or one that seeks to develop their talents, or perhaps even someone that hopes to be a leader in the future, Leadership 2030 is an excellent resource for you.

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