The Influences of Entrepreneurial Motivation and New Business Acquisition on Strategic Decision Making

Posted: 9 Nov 2009

See all articles by Richard C Becherer

Richard C Becherer

affiliation not provided to SSRN

Howard Finch

affiliation not provided to SSRN

Marilyn M. Helms

Dalton State College - Division of Business Administration

Date Written: 2006

Abstract

The decision-making tactics of small businessowners and the influence of the means of business acquisition on strategicdecision-making are studied. Means of acquisition could be inheritance from thefamily, started from scratch, or purchased as an existing entity. Data were collected on 428 persons who applied for a new business license ina five-county, metropolitan statistical area. Results reveal that, while firmand owner characteristics do influence day-to-day decision-making, the means ofacquisition does not. The opposite was found to be true for long-termdecision-making; that is, personal and firm characteristics do not influencelong-term decision-making, while means of acquisition does. Owners of inherited businesses were found to have less day-to-day andlong-term strategic decision-making involvement than those who started theirbusinesses from scratch or purchased them. Most inherited businesses areacquired passively, often utilizing the pre-existing decision system andrunning the business until a suitable buyer comes along, while self-startedbusinesses are more often run actively with a new decision-making system.(LKB)

Keywords: Firm ownership, Inheritance, Organizational practices, Organizational leadership, Founders, Family firms, Startups, Strategic planning, Management decisions, Motivation

Suggested Citation

Becherer, Richard C and Finch, Howard and Helms, Marilyn M., The Influences of Entrepreneurial Motivation and New Business Acquisition on Strategic Decision Making (2006). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1502044

Richard C Becherer (Contact Author)

affiliation not provided to SSRN

No Address Available

Howard Finch

affiliation not provided to SSRN ( email )

United States

Marilyn M. Helms

Dalton State College - Division of Business Administration ( email )

Dalton, GA 30720
United States
706-272-2600 (Phone)
706-272-4525 (Fax)

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