TY - JOUR
T1 - Incentives and the growth of Oaxacan subsistence businesses
AU - Toledo, Arcelia
AU - Hernández, José de la Paz
AU - Griffin, Denis
PY - 2010/6
Y1 - 2010/6
N2 - This research evaluates a theoretical model that explains the growth and internationalization of 76 small pottery subsistence businesses in two communities in Oaxaca, Mexico as an agency problem. The model complements resource-based explanations of growth and internationalization for small firms. Based on in-depth interviews and industry sector data, descriptive statistics, Pearson correlation, and partial correlation are used to confirm the viability of the model. Results suggest that government actions have countervailing positive and negative relationships to sales growth. In both communities, government programs are positively associated with desired outcomes such as net profits and growth because they reduce the merchants' perceived financial risks. Concurrently, government programs are negatively associated to growth because subsistence entrepreneurs' perceptions of the government's political and self-serving motivations hinder their adopting and taking full advantage of government programs.
AB - This research evaluates a theoretical model that explains the growth and internationalization of 76 small pottery subsistence businesses in two communities in Oaxaca, Mexico as an agency problem. The model complements resource-based explanations of growth and internationalization for small firms. Based on in-depth interviews and industry sector data, descriptive statistics, Pearson correlation, and partial correlation are used to confirm the viability of the model. Results suggest that government actions have countervailing positive and negative relationships to sales growth. In both communities, government programs are positively associated with desired outcomes such as net profits and growth because they reduce the merchants' perceived financial risks. Concurrently, government programs are negatively associated to growth because subsistence entrepreneurs' perceptions of the government's political and self-serving motivations hinder their adopting and taking full advantage of government programs.
KW - Agency problems and incentives
KW - Government.
KW - Growth and insertion of SMEs
KW - Subsistence entrepreneurs
UR - http://www.scopus.com/inward/record.url?scp=77952585719&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2009.03.021
DO - 10.1016/j.jbusres.2009.03.021
M3 - Artículo
SN - 0148-2963
VL - 63
SP - 630
EP - 638
JO - Journal of Business Research
JF - Journal of Business Research
IS - 6
ER -