Factors Critical in Overcoming the Liability of Newness: <i>Highlighting the Role of Family</i>

Dibrell, Clay; Craig, Justin B.; Moores, Kenneth; Johnson, Arthur G.; Davis, Peter

doi:10.3905/jpe.2009.12.2.038

Cited by 12 publications

(4 citation statements)

References 15 publications

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“…The immigrant entrepreneur's family group can provide a competitive advantage [18,47,49]. Immigrants trust information derived from their social environment and rely on it in their decision to create a business [50].…”

Section: Family and Ethnic Groupsmentioning

confidence: 99%

Immigrant Entrepreneurship in Sweden: The Liability of Newness

Barth

Zalkat

2020

Sustainability

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Immigrant entrepreneurs face many challenges in the various early phases of their companies’ existence. These challenges are often referred to as “the liability of newness”. While some of these challenges are common to all entrepreneurs, the immigrant entrepreneur has an additional set of challenges. This article describes those challenges in the immigrant entrepreneurial experience in the Swedish agri-food industry. A qualitative research design is used. Interviews were conducted with 25 immigrant entrepreneurs who planned a business, had started a business, or had exited a business. Various websites and tax reports provided secondary data. The research, which covered a two-year time frame, identifies the strategies and actions the immigrant entrepreneurs adopted and used to try to overcome those challenges. The following strategies and actions were identified: use of business support, virtual embeddedness, family and ethnic groups, entrepreneurial experience, and niche markets. The companies in which the entrepreneurs recognized the gravity of those challenges early in their life cycle were more likely to survive beyond the start-up phase. The article, which also reviews much of the current literature on immigrant entrepreneurship, has implications for business support advisory services and policymakers who are involved in the effort to achieve economic (and social-cultural) integration of immigrants into their host countries.

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Section: Family and Ethnic Groupsmentioning

confidence: 99%

Immigrant Entrepreneurship in Sweden: The Liability of Newness

Barth

Zalkat

2020

Sustainability

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“…Familiness is the combination of the existing stock of social, human, financial and physical resources in a firm resulting from interaction between the family and the business system (Habbershon and Williams, 1999;Habbershon et al, 2003;Carrigan and Buckley, 2008). Dibrell et al (2009), in their study on the Australian start-up wineries, using the resource-based view, the institutional theory and the family embeddedness perspective, recognized family presence as a requisite to the nascent venture's survival. They establish the pivotal role of the family in overcoming "the liability of newness" and in creating a competitive advantage.…”

Section: Literature Review and Hypotheses Of Researchmentioning

confidence: 99%

Exploring nonlinear effects of family power on the performance of Italian wine businesses

Gallucci

D’Amato

2013

International Journal of Wine Business Research

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Purpose -This work seeks to investigate the performance of wine businesses operating in the Campania region in the South of Italy and aims to verify the family power effect on company performance. Design/methodology/approach -The study was conducted on a sample of 114 firms that operate in the quality wines industry. Using a panel data regression model with time fixed effects, the authors analyzed the firm performance during the interval 2007-2010 to detect the effect of family power on the firm performance. Family power was measured through the degree of family involvement in ownership and on the board. Performance was measured in terms of revenue and profitability. Findings -The research highlights a U-shaped relationship between family power and revenue and an inverted U-shaped relationship between family power and profitability. Originality/value -The findings show an empirical framework which could stimulate the academic debate on family effect in order to draw implications for marketing management and policy makers in the wine business and to provide suggestions for further research.

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“…Ventures must attain a level of legitimacy to achieve competitiveness within an industry (Dibrell, Craig, Moores, Johnson, & Davis, 2009;North, 1990). Institutional theory is based upon the need for firms to conform to industry regulatory and competitive norms and values (DiMaggio & Powell, 1983;Scott, 1995Scott, , 2001.…”

Section: Institutional Theorymentioning

confidence: 99%