Unraveling the effect of pre-entry knowledge of founders on experimentation in nascent industries: A configurational approach

Abstract

This study examines the influence of founders’ pre-entry knowledge on the intensity of experimentation that their ventures undertake. To address this question, this study adopts a Qualitative Comparative Analysis (QCA) coupled with an inductive case-oriented analysis to identify multiple configurations leading to the outcome and uncover the underpinning mechanisms. Overall, this study reveals that founders’ different pre-entry knowledge leads to unique knowledge gaps and comparative advantages, which in turn guide their experimentation. Also, by exploring the distinct types of uncertainty faced by entrepreneurs, this study sheds light on the different knowledge domains founders prioritize in their experiments. By exploring the complex relationships between pre-entry knowledge, founding team composition, perceived uncertainty, and experimentation intensity, this study contributes to the entrepreneurship literature and emphasizes the critical role of these factors in shaping the experimentation intensity of entrepreneurial ventures.