The effect of entrepreneurship training on entrepreneurial orientation: Evidence from a regression discontinuity design on micro-sized businesses

Abstract

Within the literature of entrepreneurship and entrepreneurship training, several studies have discussed the nature of entrepreneurship orientation, measurement, and importance. Others studied the relationship between entrepreneurship training and entrepreneurial intention. They discussed the ability of entrepreneurship training to encourage individuals starting their own business. Little has been done to study the relationship between entrepreneurship training and entrepreneurial orientation. Utilizing a quasi-experimental approach of the sharp regression discontinuity design as the most rigorous alternative to experimental schemes, we tested the relationship using a sample of 1330 micro-sized firms. After choosing the optimal test bandwidth, the regression discontinuity design assigned 342 observations to the control group and 382 observations to the treatment group. We found positive and significant causal relationships between entrepreneurship training and all three dimensions of entrepreneurial orientation. This study contributes to filling the gap in the entrepreneurship literature in two folds. First, it is the first study that addresses the effect of entrepreneurship training on entrepreneurial orientation as a viable business strategy. Second, it studied the causal relationship between entrepreneurship training and entrepreneurial orientation in micro-sized businesses as the most in need of such an entrepreneurial experience. Finally, Theoretical and managerial implications are discussed.