Interaction effects on concentration of entrepreneurial behaviors — Perspective of initial conditions in new venture creation

Abstract

This paper examines interaction effects on concentration of entrepreneurial behaviors based on perspective of initial conditions in new venture creation. We put forward theoretical model according to entrepreneurial learning, and test these hypotheses using longitudinal data from Chinese Panel Study of Entrepreneurial Dynamics. Concentration is influenced by appropriate matching of key factors including prior experience, entrepreneurial opportunity and learning strategy. (1) interaction of prior start-up experience and newness of market; (2) interaction of prior industry experience and product innovation; (3) interaction of prior start-up experience and incremental learning strategy; (4) interaction of product innovation and incremental learning strategy are negatively related to the concentration. This paper concludes with some suggestions for the role of entrepreneurial learning for furthering insights into the process of new venture creation.