Journal of Entrepreneurship, Business and Economics

1-16

Authors: Colin Jones

Purpose- Increasing, there is growing acknowledgement of the importance of franchising within all modern global economies. Despite this, little is understood with regards the actual impact of franchising on local economies. This research aims to reframe the contribution of franchising by considering the process of franchisation. Design/methodology/approach- This study employed a mixed-method approach, utilizing critical realism to facilitate an outcomes-based explanation of firm survival. The focus of the study was upon generative mechanisms that were assumed to give rise to particular events from which (pizza) firm survival was enhanced vis-à-vis all other community members. A database of 2440 firms (or in excess of 21,000 company years) combined with archival records, interviews and the researcher’s observations provided the researcher with access to the nature of interaction occurring between firms. Findings- It was found that the survival of local firms was influenced positively by the day-to-day actions of franchise operators. However, it is argued that to understand how any such advantage my fall to local independent firms, we need too better appreciate the multitude of local processes related to such industries. Originality/value- This research re-examines several ecological concepts with the view of enabling a clearer investigation of underlying local processes. It also represents an authentic autecological approach to the study of firms. Case Study Keywords: Firm Survival, Ecological Processes, Transferred Demand

35–71

Authors: Julio Lamas KNAPP, Christopher Kronenberg

Purpose- This study focuses on the main driving factors influencing the path (i.e. the decision-making process) of SMEs to internationalise and explains reasons for choosing different entry modes as strategy. The paper aims to gain a closer understanding of characteristics and challenges that SMEs experience in the early phase of internationalisation, and how its internationalisation practices – strat-egies – contribute to their competitiveness. Design/methodology/approach- A theoretical framework based on a literature review is developed. Empirical results were gained from a qualitative approach based on case studies and cross-case analy-sis of three Tyrolean SMEs. Findings- Aspects that have been investigated by this study are key motivating drivers to internation-alise and strategies applied. The paper highlights different approaches why and how SMEs undertake the process of internationalisation. Practical implications- An understanding of drivers and strategies to internationalisation offers en-trepreneurs and small business managers the opportunity to shape and reflect on the development of their company. Outcome of this study reveals the importance of managers in understanding the changes in the business environment and in identifying key internal factors. Results provide practical mentoring to SMEs in similar situations in understanding the nature of the processes of an interna-tional expansion strategy. Originality/value- Internationalisation strategies are usually viewed in relation to large enterprises. This study considers SMEs in their approach to develop international strategies and market presence. Research Paper Keywords: SMEs, early internationalisation strategies, strategy development, business development

82–100

Authors: David Deakins, David North

Purpose- In this paper we discuss an exploratory study that involved face to face, qualitative inter-views with 20 technology-based small firms (TBSFs) and seven qualitative interviews with key in-formants and funders. The TBSFs were all located in New Zealand (NZ), a small open economy with a limited domestic market, a population of 4.3 million, current GDP per capita of US$32,260 (2010) and arguably an immature and limited financial infrastructure. The central research question for this study was whether TBSFs can raise appropriate finance that allows them to start, develop and remain in NZ? Design/methodology/approach- An exploratory study has involved a programme of 20 in-depth, face to face qualitative interviews with the founders and chief executives of TBSFs drawn from three contrasting locations in New Zealand and from across different technology-based sectors. A further seven interviews have been conducted with key informants drawn from the three locations. Findings- As might be expected from theory, there was a heavy reliance on internal funding and bootstrapping methods, although a number of TBSFs had in addition managed to raise additional private capital through their own contacts and networks. All the sample had relied upon internal fund-ing to some extent. However, a total of 13 (65 per cent) either relied totally on internal funding (from the initial start-up) or relied upon a combination of internal funding, bootstrapping and private inves-tors. Context was important with New Zealand being a small open and relatively remote economy when compared to the UK; where the EU provides a significant market for TBSF development. In contrast, NZ TBSFs, of necessity were heavily involved in distant overseas markets. Research Implications- There was evidence of a distinct finance gap in the external equity market in New Zealand. For amounts below NZ$1m, these could be sought from networks of business angels, even though such sources were limited and restricted. If the funding sought was in the range NZ$1m -$5m; this was likely to fall between the informal and formal venture markets. Associated with this was a distinct preference for relying on internal funding by NZ TBSFs. Originality/value- This paper provides a contribution by being the first serious study of TBSF devel-opment in New Zealand, specifically focusing on the role of finance. The example of TBSF develop-ment in New Zealand’s small, open economy is significant and comparisons are drawn with the extent of funding gaps and similar issues in TBSF development from a UK based study. These comparisons enable the findings to be set in context and implications developed. Research paper Keywords: Technology-based small firms, Finance, IPR, Venture finance, Entrepreneurial develop-ment

125–139

Authors: Sima Sarafi Zanjani, Abdolreza Gholamali, Dariush Abbasi

Purpose- Nowadays, media is an integral part of the daily life of human beings. SMEs in this industry use their potentials to succeed. On the other hand, social networks are becoming a key to success for these companies. In this sense, the authors investigate the effect of social networks on the customer's alertness and then on the success of these firms. Design/methodology/approach- To do so, among a hundred and four managers in media enterprises in different levels, forty ones were selected and a questionnaire was distributed among them. In fact a quantitative approach was used to test the research hypotheses. Findings- The results show that social network has an influence on the success of media SMEs. Moreover, one could conclude that network ties' strength, networking activities, network ties' type, and customer's alertness influence the success of media SMEs. Research Implications- SMEs in media industries could take advantage of social networks to reach a more effective and efficient level of performance. Indeed, stronger network ties could help them in acting more efficiently. Moreover, customer's alertness could be affected through the characteristics of social networks. Originality/value- The present study is among the first studies in the country which highlights the realities in the SMEs of media industries in developing countries. However, future research could deal with other aspects of such firms. Research paper Keywords: Social Networks, Media Industries, Customer's Alertness