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Owner sacrifice and small business growth

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  • Kozan, M. Kamil
  • Oksoy, Dolun
  • Ozsoy, Onur
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    Abstract

    Owner sacrifice was studied as a key variable for predicting small business growth dynamics. Using Conservation of Resources Theory, three different types of sacrifice were defined: personal, financial, and relational. Their relation to growth was studied on data collected through structured interviews in 852 small firms in thirteen cities in Turkey. Personal sacrifices in time and effort had a positive effect on continuous growth, both singularly and in interaction with firm's environment, size, and strategic planning. Sacrifices in personal finances were negatively associated with continuous growth, which is interpreted as an outcome of internal financing and risk-avoidance by Turkish firms. Sacrifice as a multi-dimensional construct may be invaluable in studying small business growth in cultures with similar characteristics.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 47 (2012)
    Issue (Month): 3 ()
    Pages: 409-419

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    Handle: RePEc:eee:worbus:v:47:y:2012:i:3:p:409-419

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    Related research

    Keywords: Owner sacrifice; Entrepreneurship; Small business; Turkey;

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    1. Sander Wennekers & André van Wennekers & Roy Thurik & Paul Reynolds, 2005. "Nascent Entrepreneurship and the Level of Economic Development," Small Business Economics, Springer, vol. 24(3), pages 293-309, 04.
    2. Ciavarella, Mark A. & Buchholtz, Ann K. & Riordan, Christine M. & Gatewood, Robert D. & Stokes, Garnett S., 2004. "The Big Five and venture survival: Is there a linkage?," Journal of Business Venturing, Elsevier, vol. 19(4), pages 465-483, July.
    3. Davidsson, Per, 1991. "Continued entrepreneurship: Ability, need, and opportunity as determinants of small firm growth," Journal of Business Venturing, Elsevier, vol. 6(6), pages 405-429, November.
    4. Mehmet Turan & Ali Kara, 2007. "An exploratory study of characteristics and attributes of Turkish entrepreneurs: A cross-country comparison to Irish entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 5(1), pages 25-46, June.
    5. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    6. Lee, Sang M. & Peterson, Suzanne J., 2000. "Culture, entrepreneurial orientation, and global competitiveness," Journal of World Business, Elsevier, vol. 35(4), pages 401-416, January.
    7. Mueller, Stephen L. & Thomas, Anisya S., 2001. "Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness," Journal of Business Venturing, Elsevier, vol. 16(1), pages 51-75, January.
    8. Zahra, Shaker A. & Bogner, William C., 2000. "Technology strategy and software new ventures' performance: Exploring the moderating effect of the competitive environment," Journal of Business Venturing, Elsevier, vol. 15(2), pages 135-173, March.
    9. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    10. Nalan Yetim & Unsal Yetim, 2006. "The Cultural Orientations of Entrepreneurs and Employees’ Job Satisfaction: The Turkish Small and Medium Sized Enterprises (SMEs) Case," Social Indicators Research, Springer, vol. 77(2), pages 257-286, 06.
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