Abstract:This paper proposes a new theory called Humane Entrepreneurship (HumEnt) and identifies areas for future development of knowledge. The new theory integrates in the Entrepreneurial Strategic Posture (ESP) three different concepts: Entrepreneurial Orientation, Sustainable Orientation, and Humane Resource Orientation. From this perspective, HumEnt theory can be considered an extension of previous research but with a new model for consideration. The components of the HumEnt theory and their relationships are outli… Show more
“…It is noteworthy that our work differs from a set of recent studies that integrates a firm's financial and social performances together from the perspective of entrepreneurship. For example, Parente et al [25] develop a new model of entrepreneurship for business studies, in terms of "humane entrepreneurship". This idea of humane entrepreneurship is closely related to the definition of social performance; entrepreneurs have to extend their priorities toward their employees, people, environment, and society, which are represented by the category of social performance in the CSR literature.…”
We analyze whether a firm’s corporate social responsibility (CSR) plays a significant role in promoting its market value in an emerging market, namely Korea. We employ environmental, social, and corporate governance (ESG) scores to evaluate CSR performances and examine their effect on firm valuation. We find that CSR practices positively and significantly affect a firm’s market, in line with previous studies on developed countries. However, its impact on share prices can differ according to firm characteristics. For firms in environmentally sensitive industries, the value-creating effect of CSR is lesser than for firms that do not belong to sensitive industries. Specifically, corporate governance practice negatively influences the firm value of environmentally sensitive firms. Further, governance practice significantly promotes market value only for chaebols, while investors do not significantly value governance practice carried out by other firms. This finding suggests the value-enhancing effects of governance structure reformation in the former. This work mainly contributes to the literature by verifying a positive CSR-valuation relationship in emerging markets, which provides substantial policy and welfare implications in markets where governments play a major role in promoting CSR. A stronger valuation effect of CSR in chaebols may present economic background for the intervention of the Korean government in the reformation of chaebol.
“…It is noteworthy that our work differs from a set of recent studies that integrates a firm's financial and social performances together from the perspective of entrepreneurship. For example, Parente et al [25] develop a new model of entrepreneurship for business studies, in terms of "humane entrepreneurship". This idea of humane entrepreneurship is closely related to the definition of social performance; entrepreneurs have to extend their priorities toward their employees, people, environment, and society, which are represented by the category of social performance in the CSR literature.…”
We analyze whether a firm’s corporate social responsibility (CSR) plays a significant role in promoting its market value in an emerging market, namely Korea. We employ environmental, social, and corporate governance (ESG) scores to evaluate CSR performances and examine their effect on firm valuation. We find that CSR practices positively and significantly affect a firm’s market, in line with previous studies on developed countries. However, its impact on share prices can differ according to firm characteristics. For firms in environmentally sensitive industries, the value-creating effect of CSR is lesser than for firms that do not belong to sensitive industries. Specifically, corporate governance practice negatively influences the firm value of environmentally sensitive firms. Further, governance practice significantly promotes market value only for chaebols, while investors do not significantly value governance practice carried out by other firms. This finding suggests the value-enhancing effects of governance structure reformation in the former. This work mainly contributes to the literature by verifying a positive CSR-valuation relationship in emerging markets, which provides substantial policy and welfare implications in markets where governments play a major role in promoting CSR. A stronger valuation effect of CSR in chaebols may present economic background for the intervention of the Korean government in the reformation of chaebol.
“…The term entrepreneurial leadership is rooted in the fields of entrepreneurship and leadership combined (Gupta et al, 2004). This is born out of the conception that entrepreneurs are leaders by nature (Leitch & Volery, 2017;Parente et al, 2018). Renko et al (2015) assert that that entrepreneurial leadership exists at the intersection of entrepreneurship and leadership.…”
Section: Entrepreneurial Leadershipmentioning
confidence: 99%
“…Thus, entrepreneurial leadership is characterized as a form of leadership in which the leader influences the actions of followers towards the realization of entrepreneurial goals. In this regard, entrepreneurs generate business ideas and mobilize resources to create value for their businesses (Parente et al, 2018).…”
Section: Entrepreneurial Leadershipmentioning
confidence: 99%
“…The increasing recognition (Newman, Herman, Schwarz, & Nielsen, 2018;Yoshida et al, 2014) of leadership in the process of developing and executing new business ideas is a clear expression of the importance of entrepreneurial leadership. Parente et al (2018) indicated that entrepreneurs are visionaries who mobilize resource holders such as partners, suppliers, employees and various other stakeholders in pursuit of their business ideas. In this regard, entrepreneurs exhibit entrepreneurial leadership (Parente et al, 2018).…”
Section: Entrepreneurial Leadershipmentioning
confidence: 99%
“…Furthermore, this paper serves to expand our understanding of relatively new entrepreneurship concepts such as individual entrepreneurial orientation and entrepreneurial leadership (Parente et al, 2018) and their manifestations in understudied contexts such as the informal sector entrepreneurship environment, especially in African contexts. The following section presents the theoretical foundations of this paper.…”
The informal economy plays an integral role in addressing the socioeconomic issues facing many nations around the world. Informal sector entrepreneurship activities contribute 10-20% of the GDP in developed economies and up to 60% in developing economies. In South Africa, the informal sector accounts for 15-17% of total employment and about 5.2% of the country's GDP. Yet, very little attention is given to how informal sector entrepreneurship shapes individual entrepreneurial orientation and the emergence of entrepreneurial leadership, and vice versa. The lack of attention to the notions of individual entrepreneurial orientation and the emergence of entrepreneurial leadership from the informal sector is worrisome given that a significant number of now successful entrepreneurs in African contexts began their business operations within the informal sector. This article presents a multilevel analysis of the emergence of entrepreneurial leadership in the informal sector of South Africa. We draw from "rags to riches" inspirational accounts and social identity theory to develop an integrative framework on the emergence of entrepreneurial leadership in the informal sector. Short case studies of successful entrepreneurial leaders who emerged from the informal sector are presented for illustrative purposes. This paper aims to provide valuable insights into one of the understudied but rapidly growing entrepreneurial contexts, informal sector entrepreneurship, and how this context shapes individual entrepreneurial orientation and the emergence of entrepreneurial leadership. This exposes a previously hidden territory for new insights and further studies on how to advance entrepreneurship development research and praxis.
The circular economy (CE) aims to deeply transform the current linear model of economy and society into a business model capable to extend the lifetime of resources and decrease environmental impacts. For this to happen, changes in societal systems and production sectors, from micro to macro, are required.The present research, based on a multiple case‐study explorative approach of circular start‐ups (CSUs), investigates their adoption of environmental impact assessment methods, environmental and social certifications and contribution to a better integration of the social dimension in the CE model. Results indicate that three out of six CSUs carefully measure and certify their environmental and social impacts. Life Cycle Assessment resulted the most adopted environmental assessment method, while two CSUs are also certified benefit corporations. CSUs are mainly oriented toward the use of quantitative methods for the measurement of environmental and social impacts. Additional efforts are still needed toward the implementation of qualitative methods to properly highlight the achievement of social benefits (environmental and social awareness, employees' engagement, work time and free time balance, consumers health and safety, among others) for their stakeholders (workers, local community, consumers). Nevertheless, CSUs case studies highlight their potential of supporting the transition toward a fair CE while at the same time facilitating the integration of social dimension aspects into the CE model. Finally, by developing appropriate business to consumer models, CSUs can strongly affect consumption behaviors and habits, making them also more aware and responsible of their environmental and social life cycle impacts and improvement potential.
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