Business and Management INK

Who Needs Security?

December 31, 2011 799

Marshall Pattie, Laura Parks and William Wales, all of James Madison University, published “Who Needs Security? Entrepreneurial Minorities, Security Values, and Firm Performance” on November 7th, 2011 in the Journal of Management Inquiry’s OnlineFirst Section. To view other OnlineFirst articles, please click here.

The abstract:

In this study, the authors seek to enhance their understanding of why minority and majority entrepreneurs succeed at different rates, by going beyond surface-level demographic variables and investigating deep-level differences between these groups. The present research suggests that minorities exhibit differences in security values. This helps explain previous evidence that minority-owned small businesses perform worse than their majority-owned counterparts. Results suggest that security values fully mediate the relationship between ethnicity and firm performance. In addition, the authors’ analysis suggests that access to capital helps explain the influence of security values on firm performance. An explanatory model is proposed.

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