International Journal of Entrepreneurial Venturing (25 papers in press)
Strategic Corporate Entrepreneurship: A Configuration Approach-Based Case Study
by Sascha Kraus, Coen Rigtering
Abstract: This article approaches strategic (corporate) entrepreneurship as a response to increased complexity and turbulence confronting professional service firms. By applying the configuration approach, we analyse the strategy, operating environment, organizational structure and effect of the founding person on a highly successful professional service firm in the Netherlands. Our analysis shows that a company that actively manages all four proposed configurational domains is not only better able to create organizational change, growth and financial returns, but is also more resistant to crisis situations.
Keywords: corporate entrepreneurship; intrapreneurship; strategic entrepreneurship; strategic management.
Are hyper-growth firms inherently different? Preliminary evidence from a sample of fast-growing European SMEs
by Tommaso Minola, Giordano Cogliati, Lucio Cassia, Stefano Paleari
Abstract: Examples of extremely high-growth firms are receiving increasing attention from researchers and policymakers, as they account for the majority of new job generation and contribute to wealth and general economic development. In particular, recent research has focused on hyper-growth firms, meaning firms that rapidly grow to hundreds of times their original size. However, although it is easy to conceive that such firms are different from the usual high-growth firms, literature has mostly overlooked hyper-growth as a different phenomenon with its own distinctive characteristics. This study tries to fill this gap by focusing on the factors distinguishing a sample of 307 European hyper-growth SMEs from a matched sample of high-growth counterparts. Hyper-growth firms emerge as younger, show greater involvement in M&A and listing activities, and rely more (in relative terms) upon investments in fixed assets financed with high levels of debt. They are also more likely to result from corporate venturing activities and make use of slack resources as a driver of opportunity exploration. Our preliminary evidence suggests that hyper-growth firms may be inherently entrepreneurial. This opens avenues for future research, and these are discussed together with the managerial and policy implications.
Keywords: Hyper-growth; High-growth; SME; Slack resources; Logistic regression.
How does entrepreneurs psychological ownership affect their grief after failure?
by Dan Hsu, Katrin Burmeister-Lamp, Michelle C. Hong
Abstract: What determines the level of grief that entrepreneurs feel after failure? Drawing on regulatory focus theory and the psychological ownership (PO) literature, this paper examines the effect of different components of PO the failed entrepreneurs have had toward the prior venture on their grief levels. It is argued that PO has two components: promotive PO, which is driven by the individuals achievement needs, and preventative PO, which is driven by the safety needs. Surveying 150 individuals with business failure experience, this study found that individuals with stronger promotive PO toward the prior venture felt less grief while individuals with greater preventative PO incurred stronger grief feelings.
Keywords: Entrepreneurs; psychological ownership; regulatory focus; grief; business failure.
EXPLORING COMPETITIVE STRATEGIES: THE ROLE OF MANAGERIAL PERCEPTIONS AND MOTIVATIONS ON INTERNATIONALIZATION OF SMEs
by Timothy L. Pett
Abstract: Small- and medium-sized enterprises (SMEs) utilize resources and capabilities differently in order to achieve a competitive advantage. Some SMEs are able to exploit these advantages internationally because of the unique motivations and perceptions of management toward globalization. The findings of this research suggest that SMEs implementing competitive strategies have uniquely different managerial perceptions and motivations to internationalize as demonstrated by the interactions of these constructs. That is, firms using differentiation approaches are distinctly different from those using a low cost approach particularly when the interaction effects of international, managerial perceptions, and firm size are investigated.
Keywords: SMEs; internationalization; competitive strategy.
Strong ties, personality, and legitimacy of entrepreneurs: the case of private physicians
by Katherine Gundolf, Beate Cesinger, Mickaël Géraudel, Matthias Filser
Abstract: Legitimacy is crucial for entrepreneurs. It is the cornerstone for creating relationships with stakeholders and mitigating resource constraints. But, other-referent legitimacy is also related to the cognitive image of individual legitimacy. Drawing on the identity-based model of legitimacy, we argue that personality traits (big five) and social capital (strong ties) of entrepreneurs impact self-perceived legitimacy of entrepreneurs. Based on survey data of 98 German private physicians, this paper examines antecedents of self-perceived legitimacy towards two main stakeholders: patients and peers. We find that high levels of agreeableness stimulate self-perceived legitimacy towards patients and peers, whereas openness to experience solely influences physicians self-perceived legitimacy towards patients. In addition, our results highlight the contingent effect of personality traits by underlining the role of strong ties as moderator of the relationship between personality traits and the self-perceived legitimacy. By identifying these configurations we contribute to the literature on entrepreneurship with a refined perspective of antecedents of self-perceived legitimacy. Moreover, we give recommendations on how private physicians can benefit from two personality traits agreeableness and openness to experience and how they can manage weak and strong ties in order to diffuse their reputation.
Keywords: self-perceived legitimacy; personality traits; social capital; physicians.
The self-loving entrepreneur: Dual narcissism and entrepreneurial intention
by Urs Baldegger, Steffen Schroeder, Marco Furtner
Abstract: On the basis of converging personality traits, this study pursues an investigation of the effects between narcissism, internal locus of control and entrepreneurial intention. To be in accordance with the diversity of the personality construct of narcissism, it is differentiated in narcissistic admiration and narcissistic rivalry. An indirect approach via a structural equation model is chosen. A significantly positive effect of narcissistic admiration is confirmed on entrepreneurial intention. On the other hand, narcissistic rivalry is found to be a significant negative predictor for career motives and entrepreneurial intention. Furthermore internal locus control has high effects on the entrepreneurial career motives and intention. Subsequently narcissism in the dual differentiation and the internal locus of control are essential for building entrepreneurship and are therefore of importance within the personality research of entrepreneurs.
Keywords: Narcissism; Entrepreneurship; Intention; Career Motive; Locus of Control.
Familiness on a dead-end street? The evolution of the familiness concept and its suitability for future research on family firms
by Sabina Dienemann, Stephan Stubner
Abstract: More than 15 years after the introduction of familiness into the literature, the term has evolved into one of the most popular concepts in family firm research. Despite the steadily growing body of studies that build on familiness, recent calls suggest a need to revisit its conceptualization due to a lack of a common understanding that could affect future research endeavours. In our systematic literature review of 25 studies, we find support for this notion and show that the discussion on the concept has reached a dead end. We present a systematization of familiness research that highlights an inconsistent conceptualization, a lack of validation and even a partial hijacking of the term into contexts different from those originally proposed by Habbershon and Williams in 1999. Based on these findings, we present a research agenda aimed at overcoming the current limitations and rejuvenating familiness as a suitable approach to understanding family firm heterogeneity.
Keywords: familiness; familiness concept; familiness evolution; familiness definition; literature review; family business; family firms; family firm research; family business research; resources; competitive advantage; resource-based view.
The Role of Human Capital for Entrepreneurial Decision-Making Investigating Experience, Skills and Knowledge as Antecedents to Effectuation and Causation
by Jochen Schmidt, Sven Heidenreich
Abstract: Experts in entrepreneurship apply effectuation rather than causation as entrepreneurial approach in corporate ventures. While previous research suggests that entrepreneurial experiences determine this effect, it is unclear how different types of such experiences and other elements of human capital drive entrepreneurial behaviors. Hence, this study differentiates experience in start-ups and corporate entrepreneurship to empirically evaluate their individual effects alongside with entrepreneurial skills and knowledge on 212 general managers behavioral intentions to apply effectuation or causation. Results indicate that corporate entrepreneurship experiences foster causation and oppress effectuation while start-up experiences drive the application of both entrepreneurial behaviors the other way around. Furthermore, entrepreneurial skills facilitate the use of prior knowledge through an effectual approach. This emphasizes that the way how employees develop ideas into practice relates to multiple facets of human capital and thus to more than entrepreneurial experiences, as it has been long suggested by previous studies.
Keywords: Entrepreneurial Behavior; Effectuation; Causation; Human Capital; Corporate Entrepreneurship.
What Can Universities Do to Promote Entrepreneurial Intent? An Empirical Investigation
by Jeffrey Overall, Steven Gedeon, Dave Valliere
Abstract: Our university has promoted entrepreneurship extensively through networking events, business plan competitions, funding sources, degree programs and on-campus incubators. But do these efforts work? We integrate and extend intentions-based models and the psychosocial cognitive model to develop a model of entrepreneurial intent and behaviour. We test our theory using partial least squares structural equation modelling on survey data collected from 334 undergraduate business students in Canada. We find that the belief constructs, namely: social norms toward entrepreneurship, prevalence of entrepreneurship on social milieu, and goal-orientation are found to positively influence the attitude constructs of the: (1) desirability of an entrepreneurial career and (2) perceived feasibility of an entrepreneurial career. These attitudes, in turn, positively impact entrepreneurial intent, which subsequently influences entrepreneurial behaviour. We thus found support for the hypotheses that university support for these psychosocial influences has a positive effect on student entrepreneurial intent and behaviour. Practical implications are discussed and future directions are suggested
Keywords: Entrepreneurship; Entrepreneurial behaviour; Entrepreneurial intent; Psychosocial cognitive model; Social norms; University support; marketing
Sequence Analysis in Entrepreneurship Research: Business Founders Life Courses and Early-Stage Firm Survival
by Anna Heimann-Roppelt, Silke Tegtmeier
Abstract: This paper introduces the method of sequence analysis in entrepreneurship research. Informed by life course theory, we argue that depending on duration and timing, human capital can depreciate during work interruptions (such as unemployment or parental leave) but also be restored by re-entering and staying in the job market. Using data from the German Socio-Economic Panel (GSOEP), we analyse the educational and occupational life courses of individuals who have started a business. We investigate whether there are patterns in the biographies of these individuals. Exploratory analysis reveals that seven types of founders can be differentiated. In this sample, cluster one appeared to be most successful in terms of early-stage firm survival. Sequence analysis has proved to be a valuable method to improve the efficiency of research on the life courses of business founders. This study invites future research to take a deeper look at life-course-based factors of business activity and success.
Keywords: sequence analysis, entrepreneurship, start-ups, self-employment, entry, human capital, life course theory, early-stage firm survival, GSOEP, patterns, biographies, career paths, cluster analysis, optimal matching technique
Effectuation, Entrepreneurs Leadership Behavior, and Employee Outcomes:A Conceptual Model
by Sylvia Hubner, Matthias Baum
Abstract: This study develops a conceptual framework for explaining how effectual and causal logics influence entrepreneurs leadership behavior and how that, in turn, impacts employee individual-level outcomes (commitment, extrinsic and intrinsic motivation, and creativity) and performance outcomes (employee work performance and firm performance). We propose that employees commitment and motivation develop via distinct paths when entrepreneurs apply causal or effectual logics. We furthermore theorize that employees creativity is facilitated by effectuation, but hindered by causation. These differences might explain firm internal consequences of applying effectuation as a decision logic.
Keywords: Leadership; HRM; employee outcomes; effectuation; entrepreneurial firms;
Innovating by Doing: Promoting On-the-job Experimentation Through a Climate for Innovation
by Marcel Bogers
Abstract: Firms innovation performance and productivity depend on engaging the entire organization in the innovation process. Going beyond the typical focus on R&D, the focus of this article is on engaging those employees who are active in productive activities in innovation. This article explores how a firm can create an environment in which those employees can build on their local needs and knowledge to learn and innovate through a process of experimentation and problem solving during on-the-job activities. I draw on innovation, creativity and organizational climate research to explore the determinants and effects of such innovative behavior. I develop a theoretical framework of how organizational practices affect employees willingness and ability to experimenta behavioral integral to innovation. I furthermore argue that the relationship between such climate for innovation and the ultimate performance is inverse U-shaped. The framework implies that managers can turn the entire organization into an innovation lab but they need to balance the tension between productive and innovative practices.
Keywords: Corporate entrepreneurship; experimentation; innovation; intrapreneurship; learning; organizational climate; performance; production floor; productivity; user firm.
Gender and the Structuring of the Entrepreneurial Venture: An Effectuation Approach
by Maria Laura Frigotto, Nives Della Valle
Abstract: This study adds to the entrepreneurship literature by addressing the role of gender in entrepreneurial decisions. We adopt effectuation as an alternative framework and method to the typical experimental laboratory methods and investigate whether the contrasting evidence on the gender-entrepreneurial decision relationship is due to the methodological and conceptual limits of the traditional models of decision-making. We find that men rely on the effectuation framework more than women and that diverse stored information mediates gender differences in adopting effectual criteria. We do not find that women adopt the effectual affordable loss decisional criterion more than men despite their stronger perception for negative consequences and worst-case scenarios. The study also contributes to the effectuation literature by introducing the use of effectuation as an analytical framework for research on a peculiar category of decisions, i.e., decisions under ignorance.
Keywords: Gender; entrepreneurship; effectuation; decision making; ignorance; entrepreneurial risk; novice entrepreneurs; venture.
Size Does Not Matter In the Virtual World.
Comparing Online Social Networking Behavior with Business Success of Entrepreneurs
by Peter Gloor, Stephanie Woerner, Detlef Schoder, Kai Fischbach, Andrea Fronzetti Colladon
Abstract: We explore what benefits network position in online business social networks like LinkedIn might confer to an aspiring entrepreneur. We compare two network attributes, size and embeddedness, and two actor attributes, location and diversity, between virtual and real-world networks. The promise of social networks like LinkedIn is that network friends enable easier access to critical resources such as legal and financial services, customers, and business partners. Our setting consists of one million public member profiles of the German business networking site XING (a German version of LinkedIn) from which we extracted the network structure of 15,000 startup entrepreneurs from twelve large German universities. We find no positive effect of virtual network size and embeddedness, and small positive effects of location and diversity.
Keywords: Online Social Networks, Network Analysis, Entrepreneurship, Business Success
Entrepreneurial Orientation, Network Brokerage, and Firm Performance
by Olaf Rank, Michael Strenge
Abstract: Arguing that entrepreneurial firms will adopt different behavioral strategies than their competitors, we find that firms exhibiting high levels of entrepreneurial orientation (EO) are more likely to obtain brokerage positions in their networks to external partners. Acting as brokers allows entrepreneurial firms to benefit with respect to the acquisition of important resources such as information and knowledge, which ultimately has positive effects on their performance. In other words, network brokerage represents an important strategic behavior allowing firms to translate their EO into higher performance levels. Using data from 82 high-tech companies, we find that consistent with our theoretical assumption network brokerage partially mediates the EO-performance relationship and hence represents a missing link when studying the performance-related effects of EO.
Keywords: entrepreneurial orientation, structural holes, brokerage, firm performance, advice networks
CEOs cultural and demographic attributes and organizational performance of Indian SMEs: An upper echelon approach
by Carina Friedmann, Ritam Garg, Dirk Holtbrügge
Abstract: In this study we examine the impact of organizational scanning (process of collecting information necessary to identify important events and trends impacting organizations) and strategic flexibility capabilities (ability to adapt to substantial, uncertain, environmental changes) of chief executive officers (CEOs) on organizational performance in Indian small and medium enterprises (SMEs). Based on upper echelon theory we argue that cultural and demographic attributes of CEOs moderate this relationship. Our hypotheses are tested against a sample of 341 firms in the Indian auto components and textile industry. The positive influence of CEOs organizational scanning and strategic flexibility on firm performance is confirmed. Findings reveal a significant moderating influence of uncertainty avoidance, long-term orientation, and functional background. No effect is found for CEO's religiosity and tenure. The implications for the upper echelon theory and managerial practice are discussed. Our results further provide interesting avenues for further research.
Keywords: Upper echelon theory; India; SMEs; CEO research; Organizational behavior; Cultural attributes
Effects of Impression Management Tactics on Crowdfunding Success
by Elmar Lins, Kaja Joanna Fietkiewicz, Eva Lutz
Abstract: The aim of our study is to shed light on determinants that convince the crowd to fund a project on a crowdfunding platform. In particular, we examine whether self-promotion through positive language as well as emphasizing innovativeness and supplication as impression management tactics drive crowdfunding success. Based on a sample of 221 Kickstarter campaigns and a total of 195,217 words embedded in their project descriptions, we develop and test hypotheses concerning linguistic behaviors affecting the likelihood of fundraising, the number of project backers and the amount raised. We find a non-linear relation between innovativeness and crowdfunding success, that is, crowdfunders prefer moderate levels of self-promotion through innovativeness.
Keywords: Crowdfunding; crowdfunders; entrepreneurship; linguistic behavior analysis; impression management; impression management strategies; Kickstarter
Entrepreneurial Identity Construction and Consumption of Cultural Products (Movies)
by Antti Kauppinen
Abstract: Entrepreneurial identity construction has often been studied as a process narrative of how a person becomes an entrepreneur. The process involves nascent entrepreneurs in both establishing a business and simultaneously negating the influence of rivals (subversion). Prior research reports that nascent entrepreneurs in the cultural industries often recognise the value of their forthcoming product while using (consuming) existing products. However, the available research lacks detail on how the subversion element can be activated while consuming cultural products, such as movies. This paper offers a content analysis, measuring how consuming (in the form of watching) movies affects nascent entrepreneurs' entrepreneurial identity construction narratives. Results show that the hardship content in movies improves the subsequent entrepreneurial orientation (EO) content of nascent entrepreneurs' entrepreneurial identity construction narratives (labelled the "violence effect") while the accomplishment content is negatively related to this EO content. Both effects are stronger when there is blame content alongside EO content. As an individual effect, that blame content has a U-shaped correlation with the EO content.
Keywords: new business; subversion; content analysis; hardship; accomplishment; blame; violence effect.
Risk types and risk assessment in venture capital investments: A content analysis of investors
by Dorian Proksch
Abstract: Venture capital is an important resource for new ventures with no access to the capital market. However, venture capital companies
Keywords: Risk; risk assessment; risk management; venture capital; new-technology-based firms; new ventures.
Unraveling entrepreneurial competencies and heir relation to entrepreneurial intent
by Charlott Menke
Abstract: This study structures a diverse range of entrepreneurial competencies into five broader and hierarchically aligned entrepreneurial competency clusters (i.e., motives, traits, self-concept, skills, and knowledge) and explains their influence on the emergence of entrepreneurial intent. Therefore, a new model is developed combining the established theory of planned behavior and the iceberg model of competencies. This new competency intent model is then tested on a sample of 105 students. The results of structural equation modeling and mediation analyses indicate that each competency cluster significantly contributes to the emergence of entrepreneurial intent. Furthermore, there is evidence that the influences of some competency clusters are mediated through other higher-level clusters and that the cognitive bias of overestimation is present. Overall, the findings suggest that the new model provides a better understanding of the development of an entrepreneurial intent.
Keywords: entrepreneurship; theory of planned behaviour; entrepreneurial intent; entrepreneurial competencies; entrepreneurial behavior; empirical analysis; structural equation model.
Special Issue on: Cultural Entrepreneurship
Managing creative individuals via freedom and control in film-making companies
by Monika Musial
Abstract: This study considers creative individuals who work for creative companies, particularly those occupied in film-making organisations. It tries to understand the issue of managing creative individuals from the perspective of both managers and employees. This study is based on interviews conducted in a Danish film-company, and investigates various creative individuals from this field. It highlights the shift from the more traditional approach to career development to a more contemporary approach that involves boundaryless careers. The paper concludes that creative individuals working for film-making companies are best managed when they have elements of both freedom and control from the managers side. In that way, creative individuals release their creativity to their full potential. Additionally, the work-life balance is emphasised and perceived as a factor having significance when managing creative individuals.
Keywords: control; boundaryless careers; creativity; creative management; creative individuals; creative companies; film industry; freedom; management of creative individuals; work-life balance.
Art ventures as hybrid organisations: Tensions and conflicts relating to organisational identity
by Katja Lindqvist
Abstract: Research indicates that hybrid ventures face more complex challenges than other ventures, due to multiple institutional logics. Institutional logics theory suggests that this is due to different institutional backgrounds that influence actor perspectives and expectations on decision-making authority and venture identity, which in turn result in tensions and possible conflicts, especially over time. The article explores challenges of art ventures related to such tensions through a multiple case study. A conclusion from the study is that tension and conflicts are unavoidable as ventures grow or reach a stabilisation phase, in art ventures as in other organisations. Art ventures as hybrid organisations need to balance artistic, managerial and political logics if they are to be successful. There is a need for more research on art entrepreneurship, in particular as regards similarities and differences in relation to venturing in other fields.
Keywords: art venture; cultural entrepreneur; organisational identity; institutional logics.
Cultural Entrepreneurship in the Arts Sector: A Case Study of a Curatepreneur
by Jolanta Jagiello
Abstract: This paper addresses cultural entrepreneurship in the arts and culture sector and the search for creative business models that capture the visionary, strategic, and creative activity of entrepreneurs of cultural enterprises. The focus is on the independent curator who acts as an entrepreneur of curatorial practice coined in a new term curatepreneur. A case study approach is taken with the author acting as an insider-researcher engaging in reflection-in-action on the applicability of business models to curatorial practice and reflection-on-action in the development of new creative business models that capture the curatepreneurial process. The results of undertaking a process of self-reflexive and self-positioning reflection on more than 10 years of independent curatorial practice is to provide creative business models of practice to a whole new generation of creatives. Who can no longer rely on state funded arts and culture grants but need to innovate to attract audiences and new forms of revenue. This paper concludes with how a curator critiquing at the highest level of enquiry can transform research into curatepreneurship into a valuable contribution to the thinking, action, and practice of cultural entrepreneurship in the arts through the creation of new creative business models.
Keywords: Cultural Entrepreneurship; Creative Business Models; Curatorial Practice; Curatepreneur; Independent Curator; Arts-based Researcher; Curatorial Research.
Cultural Entrepreneurs: Identity and becoming a cultural entrepreneur
by Annette Naudin
Abstract: This paper seeks to investigate the cultural entrepreneurs identity in relation to popular notions of the entrepreneur by focusing on the lived experience of cultural entrepreneurship. The interplay and contradictions between different values and identities revealed in this study challenge narrow definitions of the entrepreneur. The cultural entrepreneurs stories reveal means of subverting or re-interpreting identities within an urban milieu in which the cultural entrepreneur operates in a social milieu. Some of the tensions described are linked to the specificity of cultural work but other challenges have more universal implications for entrepreneurship studies. Beyond the caricatures usually associated with western traditions, this study explores entrepreneurial identities and characteristics from a broader range of experiences, re-imagining the hero entrepreneur.
Keywords: identities; cultural entrepreneur;stereotypes; networks; cultural policy.
Early independent production entrepreneurs in UK television: pioneering agents of neoliberal intervention
by Richard Paterson
Abstract: This essay focuses on the operation of the UK independent television production sector in the context of the entrepreneurial aspirations of company owners in the 1990s. The calculative practices used running these small and medium sized companies are examined and the experiences in managing them are mapped as they negotiated an evolving fitness landscape. Analysis is provided of the strategies adopted including the need to develop reputation and relational contracts to secure a constant flow of commissions. Conclusions are drawn about this transitional phase of entrepreneurship in this sector ahead of Government intervention in the market through imposing new terms of trade between independent production companies and broadcasters.
Keywords: independent programme production; entrepreneurs; UK (United Kingdom) television; neo-liberal intervention; developing strategies; capability learning; active networking; reputation.