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About this book

This book elaborates on the combined challenges regarding intrapreneurship, sustainability of human resources management (HRM) and digital transformation faced by today’s organizations. Representing the first such attempt in current management literature, it explores the sustainable HRM approach, which focuses on connecting internal and external factors so as to achieve positive outcomes not only for the respective organization but also for the society, economy, and environment. It also discusses cases related to HRM’s role in establishing a corporate sustainability culture, while also working to promote employee engagement, satisfaction, performance and well-being. In closing, the book discusses the new opportunities provided by digitalization and connectivity in the field of intellectual capital, which make employees the central focus of the organization in order to create sustainable competitive advantages.

Table of Contents


Insights into a New Research Agenda for the Behavioural Theory of the Firm

This chapter introduces the positioning of the need to advance and gather new contributions that give an effective extension to the so-called Behavioural Theory of the Firm, which requires the incorporation of new analysis lenses that value the economic irrationality associated with management with emotions, values and family principles of the company. The company’s assets are not only a sum of tangible and intangible values, as they result from the history, work, competences, innovations relationships, unions and disunities of people, as a dynamic support of the evolutionary human capital of organizations.
João Leitão, António Nunes, Dina Pereira, Veland Ramadani

Intrapreneurship, Human Capital and Work Behaviour


Non-economic Organizational Performance of SMEs: Is There a Rationale for a Cognitive Entrepreneur?

This chapter contributes to the literature on entrepreneurship and small business management by testing the relationship between the non-economic organizational performance and the individual entrepreneurship capacity and by providing new insights about the need for promoting a truly cognitive entrepreneur. Toward the use of individual data relative to the founder or owner of SMEs, we assess the relationships between the non-economic performance of Portuguese SMEs and three types of capital: human, social, and organizational. It uses collaborators’ satisfaction as a metrics for non-economic performance and provides new insights for improving SMEs’ performance. The results provided the identification of four principal factors, which include all the types of individual capital considered in the analysis. The estimation of logistic regressions points out that only two factors present significant influences on the non-economic performance of SMEs. On the one hand, in terms of the factor 3, although it is capable of influencing negatively, in global terms, the non-economic performance of SMEs, it can be enhanced that interdepartmental meetings have a significant and positive influence on non-economic performance of SMEs. On the other hand, the analysis of the factor 4 reveals equally a global negative influence, although the human capital and cognitive variables that represent the entrepreneur’s intuition and competences of human resources are capable of influencing positively the behavior of the answer variable concerning non-economic performance of SMEs.
João Leitão, Mário Franco

The Impact of Innovative Working Behaviour on Employees’ Working Performance

The aim of this chapter is to identify the relationship and the impact of innovative working behaviour (IWB) of employees on their performance. With innovative working behaviour, we are trying to analyse the initiative taken from employees for improving work and the effects over working performance (WP). Employees with a higher level of innovative behaviour are expected to be star performers in their working place. An organisation needs to increase the awareness of the importance of innovative working behaviour of their employee in working activity. The sample includes 214 respondents from the private and public sector in Macedonia. Based on our findings, we provide some useful recommendation to organisations to raise the awareness of innovation that comes from employee side. The chapter ends with study limitations and future research directions.
Besar Berisha, Veland Ramadani, Shqipe Gërguri-Rashiti, Ramo Palalić

Strategic Entrepreneurship and Its Effect on Human Capital and Employee Retention

Our knowledge of strategic entrepreneurship continues to grow. However, this knowledge remains more limited in the context of strategic entrepreneurship effects on human capital and employee retention. Herein, the contribution of strategic management and entrepreneurship to strategic entrepreneurship is examined. Building on previous models a conceptual framework of strategic entrepreneurship is proposed to extend our understanding of its effect on human capital and employee retention as well as the human capital and employee retention impact on strategic entrepreneurship. Therefore, the model incorporates human capital and employee retention that effects strategic entrepreneurship and its outcomes in terms of value creation and generation of wealth.
Claudine Kearney

Linkages Between Cognitive and Behavioral Competences to Assess the Organizational Dominant Logic

Throughout the years, the concept of dominant logic has gained interest in management due to its recognized potential for strategic analysis in organizations. However, a literature review reveals the need yet to strengthen an operationalization approach to assess the dominant logic of organizations. Thus, the first objective of this chapter is to advance our understanding of this concept by exploring the cognitive and behavioral elements addressed in the literature. As a result, key elements have been identified to assess the dominant logic of organizations. The second objective of this paper is to estimate the relationships between the firms’ performances as a function of the cognitive and behavioral competences of dominant logic, pointing out the importance of showing linkages between cognition, behavior, and organizational outcomes. Multiple linear regression (MLR) analyses were employed based on a sample of 281 high-performing firms from Mexico. In our view, this study contributes to the relevance of human capital and how it translates into an organizational dominant logic with implications to organizational outcomes.
Jesús Manuel Palma-Ruiz, Ana M. Serrano-Bedia, M. Concepción López-Fernández

Toward the Creation of Intrapreneur-Friendly Organization

A number of companies are now starting to build accelerators and incubators to enable them to communicate continuously with many of the industry’s leading start-ups. The missions of these organizations will be achieved by improving their performance through knowledge sharing. One of the main sources of entrepreneurial competitive advantage is organizational capabilities, implemented with a resource-based strategy. Corporate conceptualization is one of the organizational capabilities that enables companies to overcome systematic internal constraints. New business initiatives will allow companies to rediscover themselves. This paper examines the impact of knowledge sharing and organizational capabilities on intrapreneurship. A quantitative method with a causal type was used in this study. The questionnaires were distributed to 209 workers in 27 Toyota authorized dealers in Indonesia, and then the obtained data was processed using structural equation modeling. The results revealed that knowledge sharing and organizational capabilities have a significant impact on intrapreneurship in official Toyota dealers. Another finding was that organizational factors have a dominant influence in increasing the value of intrapreneurship. This research implies that companies can increase intrapreneurship by making real policies and paying attention to the supporting elements.
Abdullah Ramdhani, Prisia Fauzizah, Dini Turipanam Alamanda, Grisna Anggadwita

Links and Demographic Comparisons to Conflict Management and Counterproductive Work Behavior

According to contemporary theory in Management Science, conflicts are inevitable and necessary for organizations, indeed. Managing conflicts shows clearly differences between good and perfect managers and entrepreneurs. In this respect, conflict management styles are emerging as a meaningful tool for dealing with the counterproductive work behaviors which are anti-innovative behaviors. The purpose of the present study is to determine the effects of conflict management on counterproductive work behavior and also make demographic comparisons to these variables. The sample is composed of 200 white-collar employees. Data were collected through survey technique with convenience sampling method and analyzed via statistical package programs. Results show that conflict management styles, integrating, dominating, and compromising, have significant effect on counterproductive work behavior dimensions. Integrating reduces organizational deviance, dominating increases interpersonal deviance, and compromising reduces both interpersonal and organizational deviance. Besides, perceptions about conflict management and counterproductive work behavior vary depending on demographic characteristics. Integrating is perceived mostly by female participants in comparison with males. Dominating is perceived mostly by private sector employees in comparison with public ones. Younger employees perceive conflict management and its two dimensions, obliging and compromising, more than their elders. Males are in tendency to behave counterproductive in comparison with females. Counterproductive work behavior and its one-dimensional, organizational deviance are performed less by younger employees and more by employees educated at post-graduate degree.
Mustafa Fedai Çavuş, Alptekin Develi, Seda Güğerçin

International Benchmarks and Experiences


Human Capital and Entrepreneurial Intentions in Bosnia and Herzegovina

Historical phenomenon of human capital is being discussed through centuries. This important pillar in socioeconomic development is necessary to be monitored, analyzed, and debated by every country. So is for Bosnia and Herzegovina. The chapter tries to explain human capital from students’ perspective in Bosnia and Herzegovina. The current situation of human capital in Bosnia and Herzegovina is investigated and discussed. Based on the theoretical background, the study explores the main pillars of human capital depicted by an exploratory case study of students population, from the International University of Sarajevo. Several exciting insights were derived from the research, which are elaborated further as the study implications, recommendations, and the future work. Limitations, as well as other study phenomena, are also discussed.
Ramo Palalić, Azra Bičo, Veland Ramadani, Léo-Paul Dana

Education, Gender, and Entrepreneurial Intention: The Case of Mexico

The objective of this chapter is to study how quality education influences entrepreneurial intention and to achieve sustainable human capital management. Methodology: We apply an ANOVA and the Levene’s test of homogeneity of variances in a sample composed of 1025 students from the 6 main faculty departments of Tecnológico de Monterrey in Guadalajara, Mexico, to study how gender, the level of studies, and parents’ schooling determine the entrepreneurial intention of students. Findings: (1) The type of studies chosen by studies affect to their entrepreneurial intention; (2) for the sample analyzed, women have a similar entrepreneurial intention than men, so gender is not a crucial factor for entrepreneurial intention; and (3) parents’ occupation and their higher level of studies positively determine the entrepreneurial intention on their children and allow reaching a sustainable human capital management.
Lizette Huezo-Ponce, José Manuel Saiz-Álvarez

Knowledge Accumulation and Its Effects on Organizational Effectiveness in Family Firms

In the family firm, the process of knowledge accumulation is strongly influenced by the common history of the family, the relationships of trust, and the affective relationships between the family members that foster communication, which improves knowledge management and promotes learning. All of this leads to better organizational effectiveness in this particular group of firms. With the goal of verifying these relationships, we provide a series of propositions in order to pave the way for future studies to address and test these relationships of family involvement and essence, basic to the concept of the family firm, which should have distinct effects over the process of knowledge accumulation affecting the organizational effectiveness, behavior, and performance of the firm.
Ismael Barros-Contreras, Jesús Manuel Palma-Ruiz

Who’s Winning the “Survivor” Race? Gazelle or Non-Gazelle Startups

High-growth firms are of particular interest for academics and policymakers due to their serious contributions to the economy, job market, and knowledge creation. Previous studies have majorly focused on firm growth rates, their persistence over time, and their determinants. Nevertheless, open research windows still remain in predicting what sort of companies will grow or even survive and in understanding the inconsistency of high-growth levels. The complexity of the relationship macroeconomic environment, high-growth regimes and firm capabilities deserves further research efforts. Here we will focus on the microeconomic determinants of startups’ survival, namely, the founder’s attributes and the firm’ characteristics and capabilities, and their relation with business survival, contrasting gazelle and non-gazelle startups. To address this, we use a Cox proportional hazard model, for a sample of 4919 firms, collected from the Kauffman Foundation Survey. Results reveal that the main entrepreneur and entrepreneurial-level determinants of firm survival are the founders’ college education, IP activity, firms’ small- and medium-size, and the gazelle condition impact on the firms’ chances of survival. Taken these all together and including the moderating effect of startup capitalization, results point to the fact that owners’ work experience and the small- and medium-sized companies as well as the companies’ R&D activities moderated by capitalization access increases the chances of firm survival. Crisis spurs firms’ exit, nonetheless startups pursuing a competitive advantage strategy and the moderating effect of startup capital on their internal R&D activities increase the chances of survival.
Dina Pereira, João Leitão, Rui Baptista

Organizational Challenges for Family Business


The Innovative Performance of Family Businesses: An Essay About Intellectual Capital and Absorptive Capacity

The personal characteristics of the members, the organizational relationships, and the internal procedures need to be managed. Knowledge needs to be acquired, assimilated, transformed, and applied to create organizational value. Then, the relationship between intellectual capital and the absorptive capacity are fundamental. Family businesses, those governed and/or managed by members of the same family throughout the generations, represent more than half of the existing organizations, reaching figures close to 90% in some locations. There is a gap in the research about intellectual capital and the absorptive capacity of a family business; thus it must be explored deeply. The objective of this essay is to relate the previous evidence about the intellectual capital and the absorptive capacity of family businesses for innovative performance, identify previous results and the gap in the literature, present a conceptual model, and propose an agenda for future research. This essay was developed through a literature review. Then, this study contributes to original insights on the role of intellectual capital and absorption capacity in the innovative performance of family businesses.
Raysa Geaquinto Rocha, João Leitão

Family Management and Firm Performance: The Interaction Effect of Technological Innovation Efficiency

Understanding the relationship between family management and firm performance has emerged as one of the most prominent issues for both scholars and professionals in the family firm research field. This chapter aims to shed light on this theme by analyzing how family members in top management teams (TMT) impact on firm performance. Moreover, this chapter adds the effect of an interaction factor that has become essential for the improvement of firms’ competitiveness: technological innovation efficiency. By conducting a panel data analysis on 1154 observations of private manufacturing firms over the period 2010–2015, the findings reveal a negative impact of family members in TMT on firm performance. The empirical analysis also reveals that technological innovation efficiency weakens the negative effect of family presence in TMT on firm performance.
María J. Martínez-Romero, Rubén Martínez-Alonso, M. Pilar Casado-Belmonte, Julio Diéguez-Soto

Innovation and Internationalization as Efficiency Engines for Family Businesses: Analyzing the Case of Portugal

Not rarely, family businesses (FBs) are central to the economy; in Portugal the estimated impact of these structures reaches two-thirds of the GDP, absorbing half of the labor force and ascending to 80% of the firms in operation. Most of them are SMEs, but there are also FBs quoted on the stock exchange. These organizations play a central role in job creation, local development, long-term knowledge transfer, and territorial cohesion. The development of innovative activities is a critical factor for a competitive economy, yet innovation exposes firms to increased risks. FBs are often considered as conservative and risk-averse, resisting change. They prefer relying on internal factors rather than opening their structure to the external environment, consequently postponing innovation, thus pledging their future. The literature is not consensual in tying innovation with FBs. On the one hand, there is a strong belief that these firms have a reduced propensity to innovate due to their embedded culture; on the other hand, and due to values as loyalty and trust and informal networks, they will be more prone to develop either individual or collective innovation processes. Using a dataset of 110 family firms located in Portugal, we aim at observing the role of innovation and internationalization along with other structural characteristics to their economic performance. A multivariate model is applied to provide evidence reinforcing the determinant role of innovation, exports, and human capital in the performance of family firms. A deep understanding of the effective role of innovation, internationalization, and other structural characteristics of FBs will shed some light on the determinants of their economic performance, productive potential, longevity, and success. Given the importance of these structures, effective policy schemes should be designed, reinforcing the cohesion of the industry.
Joana Costa

CEO’s Entrepreneurial Profile and Survival of Internationalised Wine Sector SMEs in Portuguese Region of Ribatejo

This study highlights the importance of the CEO’s entrepreneurial profile, unveiling its importance for the survival and internationalisation of small- and medium-sized enterprises (SMEs) in the wine sector in the Portuguese region of Ribatejo. Evidence shows that CEOs, as individuals with a global mentality, are extremely alert and always ready to seek international opportunities to obtain additional benefits. To do so, they have to overcome different barriers in the course of the internationalisation process, determining the decision-making mechanisms that involve different modes of entry into new markets, always bearing in mind the sources of competitive advantage, in order to ensure greater financial sustainability and responsible profit sharing in the future. The empirical approach makes use of a qualitative methodology, based on interviews with the CEOs of two wine companies located in the Portuguese region of Ribatejo. This study provides important implications for strategic business process management aimed at overcoming obstacles to the internationalisation of wine-growing SMEs, through the choice of adequate entry modes.
Rui Centeno Martins, João Leitão

Socioemotional Wealth and Financial Performance and Their Impact on Innovation Initiatives in Mexican Family Businesses: A Case Study

This work contributes to understanding the connection between family firms’ goals and interests with the resources and competences they use to carry out entrepreneurial actions connected mainly with innovation. To examine this issue, the authors conducted an explorative-descriptive case study that included two Mexican family firms. The results show that it is possible to find an alignment between financial performance and socioemotional wealth (SEW) and the different types of resources and competences that a family firm displays to reach them. Also, the firm’s entrepreneurial orientation (EO) may serve to moderate this alignment.
Jorge A. Duran-Encalada, Jose A. Vazquez-Villalpando
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