Pub Date : 2023-11-17DOI: 10.1177/10422587231211006
Ramy Elitzur, Ilanit Gavious, Orit Milo
We study the effects of diversity in national culture on new technology ventures’ founding teams on their financial harvest exit strategy. Exits represent a pivotal event in the entrepreneurial process that reflects the strategy and performance of technology startups. Following a quasi-replication of the seminal study of Chaganti and colleagues in 2008, aimed at generalizing their findings to different technologies and periods and assessing their robustness, we demonstrate that diverse founding teams are significantly more likely than non-diverse teams to exit via financial harvest. We add to the literature by identifying a novel contributing factor—diversity in national culture—in founding teams’ financial harvest strategies. The economic implications, both at the micro and macro levels, of the diversity factor are considerable. The contribution of this study thus extends beyond the academic literature.
{"title":"Diversity in National Culture and Financial Harvest Exit Strategy in New Technology Ventures","authors":"Ramy Elitzur, Ilanit Gavious, Orit Milo","doi":"10.1177/10422587231211006","DOIUrl":"https://doi.org/10.1177/10422587231211006","url":null,"abstract":"We study the effects of diversity in national culture on new technology ventures’ founding teams on their financial harvest exit strategy. Exits represent a pivotal event in the entrepreneurial process that reflects the strategy and performance of technology startups. Following a quasi-replication of the seminal study of Chaganti and colleagues in 2008, aimed at generalizing their findings to different technologies and periods and assessing their robustness, we demonstrate that diverse founding teams are significantly more likely than non-diverse teams to exit via financial harvest. We add to the literature by identifying a novel contributing factor—diversity in national culture—in founding teams’ financial harvest strategies. The economic implications, both at the micro and macro levels, of the diversity factor are considerable. The contribution of this study thus extends beyond the academic literature.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":10.5,"publicationDate":"2023-11-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139265671","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-07DOI: 10.1177/10422587231211005
Frank M. Fossen, Levent Neyse
Intuition is a central element of entrepreneurial decision-making. We conceptually replicate a published study by using new representative data from 1961 adults and the widely used Cognitive Reflection Test, which assesses the ability to avoid intuitive decisions and to switch to an analytical process. We extend the analysis by exploring occupational sorting versus environmental influence as mechanisms, the role of overconfidence, and heterogeneity. Our results confirm that entrepreneurs do not resist intuitive (but potentially wrong) decisions as much as hired managers do. Our extensions suggest that this difference is not fully explained by occupational sorting, but partially by overconfidence.
{"title":"Entrepreneurship, Management, and Cognitive Reflection: A Preregistered Replication Study With Extensions","authors":"Frank M. Fossen, Levent Neyse","doi":"10.1177/10422587231211005","DOIUrl":"https://doi.org/10.1177/10422587231211005","url":null,"abstract":"Intuition is a central element of entrepreneurial decision-making. We conceptually replicate a published study by using new representative data from 1961 adults and the widely used Cognitive Reflection Test, which assesses the ability to avoid intuitive decisions and to switch to an analytical process. We extend the analysis by exploring occupational sorting versus environmental influence as mechanisms, the role of overconfidence, and heterogeneity. Our results confirm that entrepreneurs do not resist intuitive (but potentially wrong) decisions as much as hired managers do. Our extensions suggest that this difference is not fully explained by occupational sorting, but partially by overconfidence.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135540145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-03DOI: 10.1177/10422587231206573
Nareuporn (Bell) Piyasinchai, Trin Thananusak, Mat Hughes
Family firms face significant challenges in professionalizing their management, while the professionalization effects on the firms’ performance are unclear. Drawing on stewardship and agency theories, we theorize and test the effects of family ownership and professionalization on firms’ financial performance and sustainability (environmental, social and governance) reputation. Using a large-scale management practices dataset of both public and private companies in the US, UK, Germany, and France, we find that family firms outperform nonfamily ones in terms of both financial performance and sustainability reputation, and professionalization helps strengthen such positive effects. We theorize that this is because professionalization can address agent opportunistic behaviors, while enhancing steward behaviors unique to family firms. The findings contribute to the literature on family business governance and professionalization.
{"title":"Effects of Family Ownership and Professionalization on Firms’ Financial Performance and Sustainability Reputation","authors":"Nareuporn (Bell) Piyasinchai, Trin Thananusak, Mat Hughes","doi":"10.1177/10422587231206573","DOIUrl":"https://doi.org/10.1177/10422587231206573","url":null,"abstract":"Family firms face significant challenges in professionalizing their management, while the professionalization effects on the firms’ performance are unclear. Drawing on stewardship and agency theories, we theorize and test the effects of family ownership and professionalization on firms’ financial performance and sustainability (environmental, social and governance) reputation. Using a large-scale management practices dataset of both public and private companies in the US, UK, Germany, and France, we find that family firms outperform nonfamily ones in terms of both financial performance and sustainability reputation, and professionalization helps strengthen such positive effects. We theorize that this is because professionalization can address agent opportunistic behaviors, while enhancing steward behaviors unique to family firms. The findings contribute to the literature on family business governance and professionalization.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135868130","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-16DOI: 10.1177/10422587231205321
Greg Fisher
Prior research highlights how entrepreneurs depend on resourceful actions to overcome constraints in value-creation situations. Yet, most resourcefulness research has examined its external manifestations. To complement this, I examine the cognitive and embodied sensemaking process that underpins resourceful actions. Using an autoethnography of a 1430-mile mountain bike ride across South Africa, I distill a microfoundational sensemaking perspective underpinning resourcefulness, highlighting how actors who confront resource-constrained situations find creative ways to overcome such constraints to move forward in their endeavors. Furthermore, I specify how resourcefulness is impacted by priming, learning, and contagion within a challenging context.
{"title":"Resourcefulness Enactment: The Sensemaking Process Underpinning Resourceful Actions","authors":"Greg Fisher","doi":"10.1177/10422587231205321","DOIUrl":"https://doi.org/10.1177/10422587231205321","url":null,"abstract":"Prior research highlights how entrepreneurs depend on resourceful actions to overcome constraints in value-creation situations. Yet, most resourcefulness research has examined its external manifestations. To complement this, I examine the cognitive and embodied sensemaking process that underpins resourceful actions. Using an autoethnography of a 1430-mile mountain bike ride across South Africa, I distill a microfoundational sensemaking perspective underpinning resourcefulness, highlighting how actors who confront resource-constrained situations find creative ways to overcome such constraints to move forward in their endeavors. Furthermore, I specify how resourcefulness is impacted by priming, learning, and contagion within a challenging context.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-10-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136142596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-15DOI: 10.1177/10422587231198450
Arkangel M. Cordero, Alexander C. Lewis
The extant theory posits that ethno-racial diversity promotes entrepreneurship by increasing the novelty of information and perspectives available for recombination in a region. This view presupposes the flow of novel information among potential entrepreneurs. Yet, we know comparatively little about how regional social structures (e.g., collective social capital) that affect information flows condition this relationship. We build on the sociological literature to theorize how the interplay between collective social capital and residential segregation moderates the relationship between ethno-racial diversity and entrepreneurship. We test, and find empirical support for, our hypotheses among all registered new ventures started in the United States between 1990 and 2018.
{"title":"How Does Regional Social Capital Structure the Relationship Between Entrepreneurship, Ethnic Diversity, and Residential Segregation?","authors":"Arkangel M. Cordero, Alexander C. Lewis","doi":"10.1177/10422587231198450","DOIUrl":"https://doi.org/10.1177/10422587231198450","url":null,"abstract":"The extant theory posits that ethno-racial diversity promotes entrepreneurship by increasing the novelty of information and perspectives available for recombination in a region. This view presupposes the flow of novel information among potential entrepreneurs. Yet, we know comparatively little about how regional social structures (e.g., collective social capital) that affect information flows condition this relationship. We build on the sociological literature to theorize how the interplay between collective social capital and residential segregation moderates the relationship between ethno-racial diversity and entrepreneurship. We test, and find empirical support for, our hypotheses among all registered new ventures started in the United States between 1990 and 2018.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135437829","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-15DOI: 10.1177/10422587231198428
Along Liu, Hefu Liu, Jibao Gu, Meng Chen, Chenglin Jin
How do top management teams (TMTs) play a role in new ventures’ business model implementation? Drawing on group process theory and the organizational culture literature, this study investigates the impact of TMT processes on new ventures’ business model implementation and how organizational culture moderates such relationships. We propose a positive effect of TMT agreement seeking but a negative effect of TMT interpersonal conflict on business model implementation. Furthermore, we theorize that the roles of these two TMT processes are contingent on organizational culture. Specifically, we posit that the benefit of TMT agreement seeking is amplified by flexibility orientation culture but reduced by control orientation culture. Conversely, the harm from TMT interpersonal conflict is weakened by the flexibility orientation culture but amplified by the control orientation culture. Using two waves of matched survey data collected from 896 TMT members in 224 Chinese new technology-based ventures, the results provide strong support for these hypotheses. Our findings yield actionable guidelines for new ventures pursuing business model implementation and superior performance.
{"title":"Business Model Implementation of New Ventures: Linking TMT Process Antecedents, Organizational Culture, and Firm Performance","authors":"Along Liu, Hefu Liu, Jibao Gu, Meng Chen, Chenglin Jin","doi":"10.1177/10422587231198428","DOIUrl":"https://doi.org/10.1177/10422587231198428","url":null,"abstract":"How do top management teams (TMTs) play a role in new ventures’ business model implementation? Drawing on group process theory and the organizational culture literature, this study investigates the impact of TMT processes on new ventures’ business model implementation and how organizational culture moderates such relationships. We propose a positive effect of TMT agreement seeking but a negative effect of TMT interpersonal conflict on business model implementation. Furthermore, we theorize that the roles of these two TMT processes are contingent on organizational culture. Specifically, we posit that the benefit of TMT agreement seeking is amplified by flexibility orientation culture but reduced by control orientation culture. Conversely, the harm from TMT interpersonal conflict is weakened by the flexibility orientation culture but amplified by the control orientation culture. Using two waves of matched survey data collected from 896 TMT members in 224 Chinese new technology-based ventures, the results provide strong support for these hypotheses. Our findings yield actionable guidelines for new ventures pursuing business model implementation and superior performance.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135437837","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/10422587221111737
Christiana Weber, A. Faße, H. Haugh, U. Grote
Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.
{"title":"Varieties of Necessity Entrepreneurship – New Insights From Sub Saharan Africa","authors":"Christiana Weber, A. Faße, H. Haugh, U. Grote","doi":"10.1177/10422587221111737","DOIUrl":"https://doi.org/10.1177/10422587221111737","url":null,"abstract":"Necessity entrepreneurship (NE) describes the process of venturing a business out of need when alternative options are seemingly absent. Whereas prior research typically understands NE to be a homogenous construct, recent theorizing suggests the possibility of NE heterogeneity. In this paper we employ Sen’s capability approach to elicit NE variety. Using data gathered from 820 households in rural Tanzania, our cluster analysis generates four distinct types of NE that vary significantly regarding their entrepreneurial activities, determinants and outcomes. Our findings demonstrate the relevance of life satisfaction and reveal the role of choice in NE. Our study thereby advances a nuanced perspective of NE.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":10.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75360277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.1177/10422587221111724
Bastian Kindermann, C. Schmidt, Jeldrik Pulm, Steffen Strese
This study draws on the notion of entrepreneurial orientation-as-experimentation to investigate the relationship between entrepreneurial orientation (EO) and firm failure. For the context of newly public firms after their initial public offering, we hypothesize that EO reduces firm failure particularly in specific configurations of EO, working capital efficiency, and technological turbulence. In a sample of 2578 firms that went public between 1997 and 2018, we find support for this configurational perspective. We contribute to the entrepreneurship literature by showing that the relationship between EO and firm failure needs to be understood in the context of organizational and environmental factors.
{"title":"The Double-Edged Sword of Entrepreneurial Orientation: A Configurational Perspective on Failure in Newly Public Firms","authors":"Bastian Kindermann, C. Schmidt, Jeldrik Pulm, Steffen Strese","doi":"10.1177/10422587221111724","DOIUrl":"https://doi.org/10.1177/10422587221111724","url":null,"abstract":"This study draws on the notion of entrepreneurial orientation-as-experimentation to investigate the relationship between entrepreneurial orientation (EO) and firm failure. For the context of newly public firms after their initial public offering, we hypothesize that EO reduces firm failure particularly in specific configurations of EO, working capital efficiency, and technological turbulence. In a sample of 2578 firms that went public between 1997 and 2018, we find support for this configurational perspective. We contribute to the entrepreneurship literature by showing that the relationship between EO and firm failure needs to be understood in the context of organizational and environmental factors.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":10.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81937148","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-26DOI: 10.1177/10422587231192150
K. Fellnhofer, Yu Deng
Our study challenges the notion that intuition is used to explain away gender biases in access to finance, arguing instead that women's success in crowdfunding is rooted in the use of intuition. We measured investors' intuition using self-reports and fast investment decision-making related to crowdfunding campaigns in three randomized controlled experiments involving 2,911 subjects from Europe and the United States. Our Bayesian analysis provides evidence for a gender equality effect, suggesting that intuition cannot be cited as the reason for gender biases in investment decisions. Our research highlights the importance of reassessing the scientific reputation of intuition.
{"title":"Investor Intuition Promotes Gender Equality in Access to Reward-Based Crowdfunding","authors":"K. Fellnhofer, Yu Deng","doi":"10.1177/10422587231192150","DOIUrl":"https://doi.org/10.1177/10422587231192150","url":null,"abstract":"Our study challenges the notion that intuition is used to explain away gender biases in access to finance, arguing instead that women's success in crowdfunding is rooted in the use of intuition. We measured investors' intuition using self-reports and fast investment decision-making related to crowdfunding campaigns in three randomized controlled experiments involving 2,911 subjects from Europe and the United States. Our Bayesian analysis provides evidence for a gender equality effect, suggesting that intuition cannot be cited as the reason for gender biases in investment decisions. Our research highlights the importance of reassessing the scientific reputation of intuition.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":10.5,"publicationDate":"2023-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83884293","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-22DOI: 10.1177/10422587231190732
Wubiao Zhou, Tuoqian Xu
Existing entrepreneurship literature has focused on formal regulatory institutions but has rarely examined effects on entrepreneurship of formal political institutions, particularly that of democracy. This study explores the role of democracy in entrepreneurial development, as well as how democracy moderates the role of kinship networks, in a developing or emerging economy setting. Integrating new institutional economic theory with social network theory, this study examines the rate of rural entrepreneurship in China by arguing that stronger local democratic governance facilitates entrepreneurial development and negatively moderates the role of kinship networks in entrepreneurial development. In particular, while kinship networks have a positive effect on entrepreneurial development when democratic governance is weak, their effect turns negative when it is strong. We use a national sample of villages from China for our empirical test. Results from both Ordinary Least Squares and an instrumental variable approach provide strong support for our hypotheses. The research contributions and implications are discussed.
{"title":"Democratic Governance, Kinship Networks, and Entrepreneurial Development: Evidence from Rural China","authors":"Wubiao Zhou, Tuoqian Xu","doi":"10.1177/10422587231190732","DOIUrl":"https://doi.org/10.1177/10422587231190732","url":null,"abstract":"Existing entrepreneurship literature has focused on formal regulatory institutions but has rarely examined effects on entrepreneurship of formal political institutions, particularly that of democracy. This study explores the role of democracy in entrepreneurial development, as well as how democracy moderates the role of kinship networks, in a developing or emerging economy setting. Integrating new institutional economic theory with social network theory, this study examines the rate of rural entrepreneurship in China by arguing that stronger local democratic governance facilitates entrepreneurial development and negatively moderates the role of kinship networks in entrepreneurial development. In particular, while kinship networks have a positive effect on entrepreneurial development when democratic governance is weak, their effect turns negative when it is strong. We use a national sample of villages from China for our empirical test. Results from both Ordinary Least Squares and an instrumental variable approach provide strong support for our hypotheses. The research contributions and implications are discussed.","PeriodicalId":48443,"journal":{"name":"Entrepreneurship Theory and Practice","volume":null,"pages":null},"PeriodicalIF":10.5,"publicationDate":"2023-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83347111","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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