What objective should an entrepreneur focus on when starting a new business enterprise? Both a survival orientation and a profit one are important for the continuity of the new venture, but a survival focus is key in the hazardous early months or even years. In this thesis, I identify the conditions under which an entrepreneur should switch from a survival orientation, where the venture’s likelihood of survival is more critical, to a profit orientation where the venture’s profit instead is more critical. I accomplish this task by determining the optimal time to switch from a survival to a profit orientation based on maximizing the entrepreneur’s accumulated utility over a given time horizon. At each time period, the utility is positively associated with the amount of added value to the business venture that entrepreneur owns and manages, and the time horizon is determined by the time at which the entrepreneur’s venture exit – for instance, it is being sold. That added value contains a planned portion (e.g., due to what the entrepreneur can control) and an unplanned portion. The portion of a firm’s added value that is unplanned depends on the entrepreneur’s orientation, whereby, at any time period, the expected added value and its variation are considered to be low under a survival orientation, but they are considered to be high under a profit orientation. I use an approach from the economics literature, known as the LEN model, where the use of an exponential utility function (E), a linear relationship between the utility and random effects (L), and normality of those random effects (N) allow me to transfer the probabilistic objective function into a certainty equivalent that makes the problem tractable. The decision framework and its resulting findings suggest two environmental and two entrepreneurial characteristics that influence the existence of a time at which to switch orientation from survival to profit. Based on these characteristics, I derive sixteen scenarios and discussed some of the necessary conditions for the existence of a switching time. I find that it is not straightforward to determine whether the orientation switch should be delayed or expedited as business environments (or entrepreneurial types) are compared. I thus further develop my analysis by adding more structure to the functional forms that underline the behavior of how the mean of and variation in the firm’s added value are regulated over time, as well as for the risk propensity of the firm’s owner. This exercise allow me to study the conditions under which the switching time should be delayed or expedited, and to numerically investigate the behavior of a firm’s total valuation as changes occur in key model parameters. I use franchising as an application of the sensitivity analysis I perform to identify whether a change in a model parameter (everything else being equal) should delay or expedite the orientation switch. Based on this application, I would advise entrepreneurs to switch their orientation later if they go into entrepreneurship as a franchisee rather than as a franchisor. A simulation analysis allows me to further propose a positive relationship between a firm’s total valuation and the planned added value by the entrepreneur to that firm. That analysis also suggests a positive relationship between a firm’s total valuation and the expected unplanned-added-value growth under a profit orientation, but a negative relationship under a survival orientation. Further, I find a positive relationship between total valuation and the variation in unplanned-added-value growth under a survival orientation, but a negative relationship under a profit orientation. One of the key challenges that have been raised for future entrepreneurship research is how to define an entrepreneur’s objective function. My thesis contributes to this debate by suggesting that, in the early years, there should be an orientation switch, that is, sequentially as opposed to simultaneously consider both survival and profit maximization. My thesis also contributes to the literature on firm growth because using risk-return tradeoffs to characterize the two orientations is unique in the entrepreneurial context, and so is the consideration of a sequential use of these orientations to study firm added value over time and the resulting accumulated total valuation. Characterizing each of the two orientations – survival and profit – based on risk-return tradeoffs and linking these orientations to firm growth open up new avenues for research in entrepreneurial decision making.

What objective should an entrepreneur focus on when starting a new business enterprise? Both a survival orientation and a profit one are important for the continuity of the new venture, but a survival focus is key in the hazardous early months or even years. In this thesis, I identify the conditions under which an entrepreneur should switch from a survival orientation, where the venture’s likelihood of survival is more critical, to a profit orientation where the venture’s profit instead is more critical. I accomplish this task by determining the optimal time to switch from a survival to a profit orientation based on maximizing the entrepreneur’s accumulated utility over a given time horizon. At each time period, the utility is positively associated with the amount of added value to the business venture that entrepreneur owns and manages, and the time horizon is determined by the time at which the entrepreneur’s venture exit – for instance, it is being sold. That added value contains a planned portion (e.g., due to what the entrepreneur can control) and an unplanned portion. The portion of a firm’s added value that is unplanned depends on the entrepreneur’s orientation, whereby, at any time period, the expected added value and its variation are considered to be low under a survival orientation, but they are considered to be high under a profit orientation. I use an approach from the economics literature, known as the LEN model, where the use of an exponential utility function (E), a linear relationship between the utility and random effects (L), and normality of those random effects (N) allow me to transfer the probabilistic objective function into a certainty equivalent that makes the problem tractable. The decision framework and its resulting findings suggest two environmental and two entrepreneurial characteristics that influence the existence of a time at which to switch orientation from survival to profit. Based on these characteristics, I derive sixteen scenarios and discussed some of the necessary conditions for the existence of a switching time. I find that it is not straightforward to determine whether the orientation switch should be delayed or expedited as business environments (or entrepreneurial types) are compared. I thus further develop my analysis by adding more structure to the functional forms that underline the behavior of how the mean of and variation in the firm’s added value are regulated over time, as well as for the risk propensity of the firm’s owner. This exercise allow me to study the conditions under which the switching time should be delayed or expedited, and to numerically investigate the behavior of a firm’s total valuation as changes occur in key model parameters. I use franchising as an application of the sensitivity analysis I perform to identify whether a change in a model parameter (everything else being equal) should delay or expedite the orientation switch. Based on this application, I would advise entrepreneurs to switch their orientation later if they go into entrepreneurship as a franchisee rather than as a franchisor. A simulation analysis allows me to further propose a positive relationship between a firm’s total valuation and the planned added value by the entrepreneur to that firm. That analysis also suggests a positive relationship between a firm’s total valuation and the expected unplanned-added-value growth under a profit orientation, but a negative relationship under a survival orientation. Further, I find a positive relationship between total valuation and the variation in unplanned-added-value growth under a survival orientation, but a negative relationship under a profit orientation. One of the key challenges that have been raised for future entrepreneurship research is how to define an entrepreneur’s objective function. My thesis contributes to this debate by suggesting that, in the early years, there should be an orientation switch, that is, sequentially as opposed to simultaneously consider both survival and profit maximization. My thesis also contributes to the literature on firm growth because using risk-return tradeoffs to characterize the two orientations is unique in the entrepreneurial context, and so is the consideration of a sequential use of these orientations to study firm added value over time and the resulting accumulated total valuation. Characterizing each of the two orientations – survival and profit – based on risk-return tradeoffs and linking these orientations to firm growth open up new avenues for research in entrepreneurial decision making.

Författare: Anton Asplund och Jon Id Handledare: Ulf Larsson Olaison Medbedömare: Andreas Jansson Examinator: Karin Jonnergård Titel: Samhällsansvar eller vinstorientering? - En innehållsanalys av CSR-diskurs i årsredovisningar för svenska börsnoterade bolag från två branscher Bakgrund: Vinster i välfärden är ett ämne som tagit stort utrymme på 2010-talet inom den svenska politiska- och samhälleliga debatten. Med tanke på att CSR-rapportering skiljer sig åt mellan branscher, samt att legitimitetsteorin är en av de mest framträdande teorierna på området, undrar vi hur bolag inom välfärdssektorn rapporterar om socialt ansvarstagande. Eftersom välfärdsbolagen är flitigt omdiskuterade och ständigt i rampljuset är det av största vikt att dessa företag uppfattas som legitima av samhället. Ett sätt att uppnå denna legitimitet är att strategiskt använda årsredovisningen. Vi är därför intresserade av att undersöka huruvida det går att urskilja en kvalitativ legitimeringsstrategi som omfattar samhällsvärden i välfärdsbolagens CSR-rapportering och jämföra denna med finanssektorn. Syfte: Syftet med uppsatsen är att skapa en förståelse för CSR-diskursen i olika branscher. Genom en kvalitativ innehållsanalys av CSR- och frivillig redovisning i årsredovisningar för välfärdsbolag respektive storbanker ämnar vi undersöka huruvida det går att finna branschspecifika skillnader i rapporteringen av socialt ansvar. Vidare avser vi studera om dessa branschspecifika skillnader grundar sig i olika kvalitativa legitimeringsstrategier. Metod: Studien har en abduktiv forskningsansats där den teoretiska grunden, vilken förväntas förklara branschspecifika kvalitativa legitimeringsstrategier, utgår från legitimitetsteori, intressentteori, institutionell teori, aktieägarvärde samt signaleringsteori. Den kvalitativa forskningsansatsen bygger på svenska årsredovisningar från 6 börsnoterade välfärdsbolag och de 4 storbankerna från 2015/2016. Resultat och slutsats: Studien har funnit branschspecifika skillnader i rapporteringsdiskursen för CSR som grundar sig i olika kvalitativa legitimieringsstrategier. Resultaten antyder att vissa aktörer, relationer, drivkrafter och intressen är centrala för de olika branscherna. Detta resultat bidrar till litteraturen och förstärker insikten om att CSR påverkas av branschtillhörighet / Authors: Anton Asplund & Jon Id Advisor: Ulf Larsson Olaison Co-examiner: Andreas Jansson Examiner: Karin Jonnergård Title: Social responsibility or profit orientation? - A content analysis of CSR discourse in annual reports for Swedish listed companies from two industries Background: Profits in welfare sector are a topic that has taken a lot of space in the 2010s in the Swedish political and social debate. Given that CSR disclosures differs between industries, and that legitimacy theory is one of the most prominent theories in the field, we wonder how companies in the welfare sector report about social responsibility. Since welfare companies are diligently discussed and constantly in the spotlight, it is crucial that these companies are perceived as legitimate by society. One way to achieve this legitimacy is to strategically use the annual report. We are, therefore, interested in investigating whether it is possible to distinguish a qualitative legitimacy strategy that includes social values in social welfare companies CSR disclosure and comparing it with the financial sector. Purpose: The purpose of the study is to create an understanding of the CSR discourse in different industries. Through a qualitative content analysis of the CSR and voluntary reporting in the annual reports for welfare companies and major banks, we intend to investigate whether industry-specific differences can be found in the reporting of social responsibility. Through comparisons between welfare companies and major banks, we intend to study whether these industry-specific differences are based on different qualitative legitimization strategies. Method: The study has an abductive research approach in which the theoretical basis, which is expected to explain industry-specific qualitative legitimization strategies, is based on legitimacy theory, interest theory, institutional theory, shareholder value and signaling theory. The qualitative research approach is based on Swedish annual reports from six listed welfare companies and the four major banks from 2015/2016. Result and conclusion: The study has found industry-specific differences in CSR reporting discourse based on different qualitative legitimization strategies. The results indicate that certain actors, relationships, driving forces and interests are central to the various industries. This result contributes to the literature and reinforces the insight that CSR is influenced by industry affiliation.

Les empreses de països com el Perú, que fa poc que creuen les fronteres per iniciar processos d’internacionalització, han de començar a conèixer i a valorar els factors que en determinen l’orientació al mercat internacional, ja que està demostrat que aquesta orientació té un impacte positiu en el rendiment organitzatiu de les empreses. Aquesta recerca recull el més important de la literatura sobre orientació al mercat en el context general i internacional, i després presenta una nova manera de valorar aquest constructe, amb la inclusió d’un component clau: l’orientació al benefici, un element que les empreses han de mesurar per la gran importància que té en la gestió d’empreses. Així mateix, l’instrument de mesura proposat incorpora components que ja han estat estudiats anteriorment i que han obtingut resultats positius, com també els factors principals que impulsen el desenvolupament de l’orientació al mercat internacional. Aquest instrument va ser validat inicialment en un estudi pilot al Perú aplicat a executius i experts, i, després de millorar-lo, es va aplicar a un estudi quantitatiu mitjançant enquestes en empreses del Perú amb capital peruà que actualment gestionen negocis internacionals, independentment de la seva manera d’operar. Aquesta recerca incorpora per primera vegada l’orientació al benefici com a part dels elements per mesurar l’orientació al mercat internacional, i demostra la relació positiva que hi ha entre els indicadors de desenvolupament en les exportacions i les estructures d’exportació amb orientació al mercat internacional, tal com ja s’havia demostrat en altres estudis preliminars duts a terme en diversos països. Tot i això, i al contrari del que es diu en estudis anteriors, no hi ha cap relació positiva entre l’orientació al mercat internacional i els sistemes d’exportació i la turbulència de l’entorn exportador, fet que es pot explicar per les diferències culturals existents i per l’etapa de negocis internacionals inicial en la qual es troba el país. / Las empresas de países como Perú, que recién están empezando a cruzar las fronteras para iniciar procesos de internacionalización, deben empezar a conocer y medir aquellos factores que determinan la Orientación al Mercado Internacional, ya que está demostrado que esta orientación impacta positivamente en el rendimiento organizacional de las empresas. La presente investigación recoge lo más importante sobre la literatura de Orientación al Mercado en su contexto general e internacional, y luego se presenta una nueva forma de medir este constructo incluyendo un componente clave que es la Orientación al Beneficio, componente que debe ser medido por las empresas, dada su importancia en la gestión de negocios. Asimismo el instrumento de medición propuesto incorpora también componentes, ya antes estudiados con resultados positivos, y los principales factores que impulsan el desarrollo de la orientación al mercado internacional. El instrumento de medición fue validado inicialmente en un estudio piloto en Perú aplicado a ejecutivos y expertos, y luego de ser mejorado, fue aplicado en un estudio cuantitativo a través de encuestas en empresas peruanas de capitales peruanos que actualmente gestionan negocios internacionales, cualquiera sea su modo de operación. La presente investigación incorpora por primera vez la Orientación al Beneficio como parte de los componentes para medir la Orientación al Mercado Internacional, y demuestra la relación positiva que existe entre los Indicadores de Desarrollo Exportador, y las Estructuras de Exportación con la Orientación al Mercado Internacional, como ya había sido demostrado en otros estudios preliminares en diversos países. Sin embargo, contradiciendo otros estudios anteriores, no se encuentra relación positiva entre los Sistemas de Exportación y la Turbulencia del Entorno Exportador con la Orientación al Mercado Internacional, lo cual puede explicarse por diferencias culturales y por la etapa inicial de negocios internacionales en la cual se encuentra el país. / Companies from countries like Peru, who are just beginning to cross the border to initiate processes of globalization, must begin to understand and measure those factors that determine the export market orientation, as it is shown that this approach positively impacts organizational performance of companies. This research brings together the most important literature on market orientation in general and international context and then presents a new way to measure this construct including a key component is the profit orientation, component to be measured by companies, given their importance in business management. Furthermore, the proposed measuring instrument also incorporates components, and previously studied with positive results, and the main factors driving the development of guidance to the international market. The instrument was initially validated in a pilot study in Peru applied to executives and experts, and after being improved, was applied in a quantitative study using surveys in Peruvian capital companies currently managing international businesses, whatever their mode of operation. This research incorporates for the first time as part of profit orientation of the components to measure the export market orientation, and demonstrates the positive relationship between Export Development Indicators, and the Export Structure with the Export Market Orientation, as had been demonstrated in other preliminary studies in several countries. However, contradicting earlier studies, there is not positive relationship between Export System and the Turbulence of the Export Environment with the Export Market Orientation, which can be explained by cultural differences and the initial stage of international business in which country finds itself.