Abstract
It is currently common practice in social and business research, to lift concepts and theories from one country context—and extending the validity of the results—using them in another. This paper discusses the question relating to such generalisability in the context of global, innovative industries. Statistical methods are applied to compare results of a quantitative investigation of firm life-cycle theory between two developed countries. Such comparison implemented with statistical rigour on a quantitative basis is not common, and difficult to execute. Results show that even though life-cycle theory has been found meaningful and valid on both country-specific populations, the quantitative comparison of these results has highlighted a substantial amount of statistically significant differences. This leads to the conclusion that extension of social theory between various country contexts needs to consider a variety of contextual parameters, cautioning computer scientists offering solutions to various problems around the world coming from their own, unique, country-specific perspectives to keep an open mind.
Similar content being viewed by others
References
Aldrich HE (1999) Organizations evolving. Sage, Thousand Oaks, London
Bartelsman EJ, Haltiwanger J, Scarpetta S (2004) Microeconomic evidence of creative destruction in industrial and developing countries, Tinbergen Institute, viewed 20 June 2008, http://ideas.repec.org/p/dgr/uvatin/20040114.html
Bridge S, O’Neill K, Cromie S (2003) Understanding enterprise, entrepreneurship and small business, 2nd edn. Palgrave MacMillan, New York
Churchill NC, Lewis VL (1983) The five stages of small business growth. Harv Bus Rev 61:30–50
Davidsson P, Achtenhagen L, Naldi L (2006) The life cycle of entrepreneurial ventures. In: Parker SC (ed) International handbook series on entrepreneurship, vol 3. Springer, New York
Hair JF, Black WC, Babin BJ, Anderson RE, Tatham RL (2006) Multivariate data analysis, 6th edn. Pearson Education International, Upper Saddle River, NJ
Hanks SH, Watson CJ, Jansen E, Chandler GN (1993) Tightening the life cycle construct: a taxonomic study of growth stage configurations in high technology organizations. Entrep Theory Pract 18(2 Winter):5–29
Hantrais L (1999) Contextualization in cross-national comparative research. Int J Soc Res Methodol 2(2):93–108
Hantrais L, Mangen S (1999) Cross-national research. Int J Soc Res Methodol 2(2):91–92
Harkness J (1999) In pursuit of quality: issues for cross-national survey research. Int J Soc Res Methodol 2(2):125–140
Harzing A-W (2006) Response styles in cross-national survey research. Int J Cross Cult Manag 6(2):243–266
Harzing A-W, Baldueza J, Barner-Rasmussen W, Barzantny C, Canabal A, Davila A, Espejo A, Ferreira R, Giroud A, Koester K, Liang Y-K, Mockaitis A, Morley MJ, Myloni B, Odusanya JOT, O’Sullivan SL, Palaniappan AK, Prochno P, Choudhury SR, Saka-Helmhout A, Siengthai S, Viswat L, Soydas AU, Zander L (2009) Rating versus ranking: what is the best way to reduce response and language bias in cross-national research? Int Bus Rev 18(4):417–432
Harzing A-W, Reiche S, Pudelko M (2013) Challenges in international survey research: a review with illustrations and suggested solutions for best practice. Eur J Int Manag 7(1):112–134
Hodgson GM (1998a) Competence and contract in the theory of the firm. J Econ Behav Organ 35(2):179–201
Hodgson GM (1998b) Evolutionary and competence-based theories of the firm. J Econ Stud 1(25):25–56
Hodgson GM (2003) A modern reader in institutional and evolutionary economics. Edward Elgar, Celtenham
Lee AS, Baskerville RL (2003) Generalizing generalizability in information systems research. Inf Syst Res 14(3):221–243
Lester DL, Parnell JA, Carraher S (2003) Organizaitonal life cycle: a five-stage empirical scale. Int J Organ Anal 11(4):339–354
Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: introducing a dynamic states approach to entrepreneurship. Entrep Theory Pract 34(2):317–350
Mangen S (1999) Qualitative research methods in cross-national settings. Int J Soc Res Methodol 2(2):109–124
Massey C, Lewis K, Warriner V, Harris C, Tweed D, Cheyene J, Cameron A (2006) Exploring firm development in the context of New Zealand SMEs. Small Enterp Res J SEAANZ 14(1):1–13
McMahon RGP (2001) Deriving an empirical development taxonomy for manufacturing SMEs using data from Australia’s business longitudinal survey. Small Bus Econ 17:197–212
Miller D, Friesen PH (1984) A longitudinal study of the corporate life cycle. Manag Sci 30(10):1161–1183
Mullen MR (1995) Diagnosing measurement equivalence in cross-national research. J Int Bus Stud 26(3):573–596
Müller R (1999) Erfolgsfaktoren kleiner und mittlerer Softwareproduktunternehmen. Zeitschrift fuer Klein und Mittelunternehmen 47(4):252–266
O’Farrell PN, Hitchens DMWN (1988) Alternative theories of small firm growth: a critical review. Environ Plan A 20(10):1365–1383
Perényi Á (2010) The growth of SMEs in the ICT sector, PHD thesis, Faculty of Business and Enterprise, Swinburne University of Technology, Melbourne, Australia, p 396
Perényi Á, Selvarajah C, Muthaly S (2011a) Investigating the applicability of the firm life-cycle model to SMEs in the Hungarian ICT sector. ICSB 2011 conference, International Council of Small Businesses, Stockholm
Perényi Á, Selvarajah C, Muthaly S (2011b) Investigating the firm life-cycle theory on Australian SMEs in the ICT sector. J Asia Entrep Sustain VII(2):12–48
Perényi Á, Selvarajah C, Muthaly S (2012) An exploratory comparative study of the firm life-cycle of small and medium sized organizations in Australia and Hungary. AWBMAMD 2012, Academy of World Business, Marketing and Management Development, pp 385–401
Ringle CM, Wende S, Will A (2005) University of Hamburg, Hamburg, Germany
Salamonné Huszti A (2006) Magyarországi kis- és középvállalkozások életútjának modellezése. Competitio V(1):59–76
Scott M, Bruce R (1987) Five stages of growth in small business. Long Range Plan 20(3):45–52
Singh J (1995) Measurement issues in cross-national research. J Int Bus Stud 26(3):597–619
Szarvas G, Vincze V, Farkas R, Móra G, Gurevych I (2012) Cross-genre and cross-domain detection of semantic uncertainty. Comput Linguist 38(2):335–367
Thorngate W (1976) “In general” vs. “it depends”: some comments of the Gergen-Schlenker debate. Pers Soc Psychol Bull 2(4):404–410
Thorngate W (2011) Fiendishly difficult questions: possible limits and aesthetic pleasures of simulation. Simul Gaming 42(2):265–269
Tsang EWK, Williams JN (2012) Generalization and Induction: misconceptions, clarifications, and a classification of induction. MIS Q 36(3):729–748
Acknowledgments
This paper is based on my PhD research (Perényi 2010). I would like to acknowledge the support of my supervisors: Professor Christopher Selvarajah and Associate Professor Siva Muthaly, as well as Swinburne University of Technology for giving me the opportunity and support to complete my doctorate. I would also like to acknowledge the reviewers and audience of the Academy of World Business, Marketing and Management Development Conference 2012 for their feedback on the conference paper (Perényi et al. 2012) which was partially the foundation of this paper. This research has ethics approval from Swinburne University of Technology.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Perényi, Á. Are theories applicable across different contexts? A cross-national comparative analysis through the lens of firm life-cycle theory in the ICT sector. AI & Soc 29, 289–309 (2014). https://doi.org/10.1007/s00146-013-0463-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00146-013-0463-1