Sample Of Nascent Entrepreneurs Research Articles

Emergence of new firms: A test of the resource-based view, signaling and behavioral perspectives

AbstractThe resource-based view, signaling, and behavioral perspectives focus on different theoretical mechanisms through which human capital and the behavioral characteristics of nascent entrepreneurs, in combination with insider and outsider financing, may influence the emergence of new ventures. This work tests the relative explanatory power of these different theoretical perspectives. We estimate a mediation model to disentangle the direct effect of nascent entrepreneur personal characteristics on new firm creation from their indirect effects, mediated by the amount of insider financing committed to new ventures and access to greater outsider financing. Our empirical results are based on data from the Panel Study of Entrepreneurial Dynamics (PSED II) and improve our understanding of the drivers of new firm creation and their underlying mechanisms. Our findings support the resource-based view and the behavioral perspective in our sample of nascent entrepreneurs, but do not provide evidence of the signaling perspective.

Going the whole nine yards: founder social identities and the nascent-active transition

ABSTRACT What makes nascent entrepreneurs more or less likely to complete the founding process and to actually start their business? To address this fundamental question, we introduce founder social identity and economic prosperity as potential explanatory factors that are still insufficiently understood. Specifically, we theorize that having a Darwinian, Communitarian, or Missionary founder social identity affects the transition from nascent to active entrepreneurship in distinct ways. Furthermore, we expect economic prosperity to act as a relevant contingency factor. We test our hypotheses in a two-wave dataset of nascent entrepreneurs from the GUESSS project and conduct a supportive post-hoc analysis in a sample of nascent entrepreneurs from a longitudinal PSED-type study (SwissPEB). We find support for most of our expectations, namely that having a Communitarian or Missionary founder social identity makes the nascent-active transition more likely and that economic prosperity moderates the Darwinian- and Communitarian-related main effects.

Do cultural and creative entrepreneurs make affectively driven decisions? Not when they evaluate their opportunities

Our research studies the influence of positive affect on entrepreneurs' evaluations of opportunities (i.e. novelty assessments and entrepreneurial selection) as well as how this influence may be different for entrepreneurs belonging to cultural and creative industries. Drawing on arguments on the role of affect in cognition and considering the particular situational and individual‐level factors of entrepreneurship in cultural and creative industries, we hypothesize that positive affect influences entrepreneurs' opportunity evaluation. We also hypothesize that this effect of positive affect is barely present for cultural and creative entrepreneurs. We test our hypotheses in a sample of nascent entrepreneurs who took part in entrepreneurship training programmes in six incubators in Spain, who we asked to evaluate their own opportunity. Our results show that positive affect positively impacts the perceived novelty and entrepreneurial selection of non‐creative entrepreneurs though this impact is limited for cultural and creative entrepreneurs.

Should I Stay orSshould I go? Predictive Effects of Commitment on Long-Term Entrepreneurial Action

Our research addresses the entrepreneurial intention-action gap, by examining the predictive effect of goal intention and commitment on long-term entrepreneurial action. Building on recent research adapting Allen and Meyer’s model of commitment to nascent entrepreneurship, it explores how different profiles of commitment can lead the entrepreneur to persist within the same project (entrepreneurial persistence), or to start a new one (serial entrepreneurship). A longitudinal survey was conducted within a timeframe of 18 months on a sample of nascent entrepreneurs (n = 161). Our results demonstrate that commitment predicts long-term entrepreneurial action, but that the nature of this behavior depends on entrepreneurs’ commitment profile. While commitment to the project is positively associated with entrepreneurial persistence, commitment to the entrepreneurial profession leads to serial entrepreneurship. Our study is the first one to empirically test the predictive effect of commitment on long-term entrepreneurial action. It contributes to literature on the entrepreneurial intention-action gap, as well as an emerging literature on entrepreneurial commitment. Our results are also important for incubators, in their effort to individualize their support offer, but also for increasing entrepreneurs’ self-awareness and transparency with their stakeholders.

Mental aspects of cultural intelligence and self-creativity of nascent entrepreneurs: The mediating role of emotionality

This study investigates the effect of mental aspects of cultural intelligence through emotionality on creative behaviour in entrepreneurship. Using a sample of nascent entrepreneurs in a developing country (Kazakhstan), this study contributes to entrepreneurship literature by providing a fine-grained explanation about how emotionality serves as a mediating mechanism between cognitive and metacognitive cultural intelligence, and self-creativity. The findings of this study demonstrate that individuals who display higher levels of cognitive and metacognitive cultural intelligence tend to possess higher emotionality, which in turns has a positive influence on self-creativity. We discuss the practical and theoretical implications of the role of cultural intelligence in spurring emotionality and self-creativity.

Exploring the factors responsible in predicting entrepreneurial intention among nascent entrepreneurs

PurposeThe purpose of this paper is to identify the entrepreneurial intention (EI) among nascent entrepreneurs in the Indian context by using Shapero’s theory of entrepreneurial event as the research framework.Design/methodology/approachA 34-item questionnaire was responded to 250 nascent entrepreneurs who are engaged in executing the new business idea or creating new ventures and enroled in the universities in India. The questions measured perceived desirability, perceived feasibility, entrepreneurial educational background, entrepreneurial self-efficacy, perceived social pressure and previous work experience in entrepreneurial activities towards entrepreneurship intention. The data were collected by employing a systematic random sampling method. The sample represents 174 male and 76 female nascent entrepreneurs belonging to various disciplines. Structural equation modelling has been used for data analysis.FindingsThe results show that the proposed model in the present study explains 51 per cent of the variance, explaining the entrepreneurship intention. Entrepreneurial self-efficacy was found to be the strongest predictor of EI (β=0.397 at p<0.001) followed by previous experience in entrepreneurial activities (β=0.285 at p<0.001).Research limitations/implicationsMore than limitation this research study adds to the existing literature of the EI by using a different set of the sample. Mostly EI studies used student sample to measure intentions. Kolvereid and Isaksen used a sample of entrepreneurs to measure EI and achieved very different results. Therefore, this research study extends the work of Kolvereid and Isaksen by using a sample of nascent social entrepreneurs.Practical implicationsThe finding of this research study will facilitate policy makers and educators to promote entrepreneurial activities at the university level. Based on the results and findings of the study, the educators may improve upon the support system to help and motivate students to opt for social entrepreneurship as their career choice.Originality/valueAjzen (1988) emphasised that the relative significance of the antecedents of intention will vary depending on which stage of intention is under scrutiny. This is one of its kinds of research study that used a sample of nascent entrepreneurs in the Indian context. Findings of this research will be helpful in predicting how the intention process of nascent entrepreneurs works especially in developing countries.

Internationalization Drivers of Early-stage Entrepreneurial Firms: Resources and Institutions

This study builds a multilevel model to examine how country-level institutional dimensions impact the resource-based factors on the level of internationalization of entrepreneurial activity. It proposes and tests an integrative framework. It combines the resource-based theory and the institutional theory to develop a model of internationalization and empirically tests this model on a representative sample of nascent entrepreneurs using a multilevel estimation design. Using data from the Global Entrepreneurship Monitor (GEM) surveys, the final sample consists of 144,066 individuals from 56 countries. Cross-level (random-effects) moderation analysis is used to explicate the influence of a country's institution on the effects of the resource-based determinants (entrepreneurial, organizational, and technological resources) on internationalization by early stage entrepreneurs, and this method enables the study of country-level growth slopes. The results of empirical research confirm the roles of resource-based...

Development and validation of a unidimensional domain-specific entrepreneurial self-efficacy scale

PurposeGiven the nature of entrepreneurship, a domain-specific self-efficacy scale should pertain to venture creation, be unidimensional, and be developed and validated using nascent entrepreneurs – persons for whom self-efficacy may be most important. Extant measures employed in entrepreneurship research do not meet all these criteria. The purpose of this paper is to develop and validate a unidimensional entrepreneurial self-efficacy (ESE) scale based on samples of nascent entrepreneurs.Design/methodology/approachData from a sample of nascent entrepreneurs and items from PSED I were used to develop and assess the validity of a new ESE scale. To further establish scale validity, a comparison group from PSED I along with a sample of nascent entrepreneurs from PSED II were employed.FindingsA unidimensional three-item self-efficacy scale for assessing a person’s belief that s/he can create a new business successfully is developed and validated using samples of nascent entrepreneurs and a control group.Research limitations/implicationsThe scale offers opportunity to enhance research-based assessment using a parsimonious, reliable, and valid unidimensional measure of ESE. The scale may enhance future research findings, as well as promoting reconsideration of past research findings, on many issues in the entrepreneurship literature.Originality/valueThis research uses a sample of nascent entrepreneurs to provide a new three-item scale for assessment of ESE that is parsimonious, valid, and unidimensional.

The Causes of Early-Stage Entrepreneurial Discontinuance

A high proportion of nascent entrepreneurs do not make it to an operational venture. Even though entrepreneurial exit decisions occur more frequently than many think, the literature on entrepreneurial discontinuance is not much developed. The paper first examines whether factors influencing early-stage discontinuance differ in the Czech Republic in comparison with Western countries. Second, it contributes to existing theories on nascent entrepreneurial activity of ""modest majority"" low-growth businesses by focusing on the role of expectations in discontinuance decisions. A sample of nascent entrepreneurs was interviewed in 2011 and then in two follow-up waves in 2012 and 2013. Building on hubris theory of entrepreneurship and theory of performance thresholds, the paper discusses subjective decision-making about entrepreneurial launch and exit. The results show that people with higher industry experience are more likely to discontinue from nascent entrepreneurship, a finding contrasting most research in Western countries. The paper also provides added value in relating growth aspirations to solo vs. team entrepreneurship. Solo entrepreneurs with high initial expectations were found more likely to discontinue from their efforts, whereas teams disbanded more often in case of low-ambition plans on new venture.

Startup team contributions and new firm creation: the role of founding team experience

The likelihood of nascent entrepreneurs making the transition from a new venture idea to a profitable business is argued to be contingent on the breadth of the resources available within the startup team. Team industry and startup experience are deemed to influence the entrepreneurs’ ability to profitably establish the venture in the market via the mobilization of team resources. Using a sample of nascent entrepreneurs in the USA, we show that team resource heterogeneity has a positive impact on profitable firm creation. Moreover, this positive effect is greater as the team has more experience in the industry in which the new business will compete.

Development and validation of a locus of control scale for the entrepreneurship domain

Locus of control has been extensively examined in entrepreneurship research, but with mixed results. This may be due to measurement issues, such as the widespread use of Rotter’s (1966) general locus of control scale, which is not domain specific. Not surprisingly, Rotter’s scale has been shown to be multidimensional, including personal efficacy. When the first Panel Study of Entrepreneurial Dynamics (PSED I) was constructed in the late 1990s, a measure of locus of control was included. Unfortunately, this scale was also multidimensional. Thus, measurement of the construct may be problematic. Because locus of control continues to be important in organizational research, where it has been found to influence intentions, motivation, satisfaction, and performance, we examined the PSED I dataset to determine whether we could develop a more robust measure after the fact. To this end, we constructed a unidimensional locus of control scale using the sample of nascent entrepreneurs in the PSED I dataset and validated the scale using two additional samples.

Women nascent entrepreneurs and social capital in the process of firm creation

The main objective of this research is to study gender differences in the process of firm creation, especially in the gestation stage of that process when nascent entrepreneurs carry out the promoter behaviours. A second objective is to analyse if the cognitive and structural endowments of social capital exert an influence on the promoter behaviours and on the kind of firms created by entrepreneurs of both genders. To reach the objectives, firstly, a theoretical framework will be developed and secondly, an empirical analysis starting from a sample of nascent entrepreneurs in the Seville province (southern Spain) will be carried out. Due to women entrepreneurs being considered nowadays essential for growth and development everywhere, results obtained could help to improve the efficiency of policies that lead to the promotion and consolidation of the female participation rate in entrepreneurial activity.