Alyssa X. Liang, Jeffrey H. Dyer, Markus Baer, Zachariah J. Rodgers
Research SummaryDo employees benefit from acting entrepreneurially in a corporate environment? Drawing on signaling theory, we propose that entrepreneurial behaviors lead to tangible career benefits through the creation of new internal ventures, which serve as a credible signal of an employee's leadership potential. Using a time‐lagged design with a sample of 643 employees, we found in Study 1 that employees engaging in higher levels of entrepreneurial behaviors are more likely to create new internal ventures, which subsequently lead to more promotions and—in larger organizations—higher compensation. Study 2 employed a within‐subjects design to directly evaluate the signaling value of new internal venture creation. Together, our findings highlight internal venturing as a key mechanism through which entrepreneurial employees can gain career benefits within established organizations.Managerial SummaryEntrepreneurial employees are often seen as organizational misfits. Yet, our research shows that acting entrepreneurially in a corporate environment can enhance employees' career success through new internal venture creation. In two studies, we find that employees engaging in higher levels of entrepreneurial behaviors—asking questions to challenge the status quo, observing with fresh perspectives, exchanging ideas across diverse networks, and experimenting with new approaches—are more likely to launch new internal corporate ventures. The act of new internal venture creation, in turn, leads to more promotions and—in larger organizations—higher compensation, because it sends a positive signal of an employee's leadership potential. Our findings offer practical insights for both entrepreneurial employees and organizations seeking to foster entrepreneurial spirit.
{"title":"Internal venturing as a signal: How entrepreneurial employees gain career benefits in organizations","authors":"Alyssa X. Liang, Jeffrey H. Dyer, Markus Baer, Zachariah J. Rodgers","doi":"10.1002/sej.70005","DOIUrl":"https://doi.org/10.1002/sej.70005","url":null,"abstract":"Research SummaryDo employees benefit from acting entrepreneurially in a corporate environment? Drawing on signaling theory, we propose that entrepreneurial behaviors lead to tangible career benefits through the creation of new internal ventures, which serve as a credible signal of an employee's leadership potential. Using a time‐lagged design with a sample of 643 employees, we found in Study 1 that employees engaging in higher levels of entrepreneurial behaviors are more likely to create new internal ventures, which subsequently lead to more promotions and—in larger organizations—higher compensation. Study 2 employed a within‐subjects design to directly evaluate the signaling value of new internal venture creation. Together, our findings highlight internal venturing as a key mechanism through which entrepreneurial employees can gain career benefits within established organizations.Managerial SummaryEntrepreneurial employees are often seen as organizational misfits. Yet, our research shows that acting entrepreneurially in a corporate environment can enhance employees' career success through new internal venture creation. In two studies, we find that employees engaging in higher levels of entrepreneurial behaviors—asking questions to challenge the status quo, observing with fresh perspectives, exchanging ideas across diverse networks, and experimenting with new approaches—are more likely to launch new internal corporate ventures. The act of new internal venture creation, in turn, leads to more promotions and—in larger organizations—higher compensation, because it sends a positive signal of an employee's leadership potential. Our findings offer practical insights for both entrepreneurial employees and organizations seeking to foster entrepreneurial spirit.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"50 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145241961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research SummaryWe explore how changes in labor unions and related labor environments affect employees' likelihood of starting a new business. We suggest that the enactment of stringent anti‐union laws reduces incentives for employees to stay with their respective workplaces and increases the attractiveness of becoming self‐employed. Using the adoption of right‐to‐work (RTW) laws in Michigan and Indiana as a quasi‐natural experiment, we find that the likelihood of employees becoming self‐employed increased by 53% compared with that of states without RTW laws. Moreover, this tendency is more pronounced for blue‐collar and low‐wage workers who start unincorporated businesses. These findings offer novel insights on the relationship between anti‐labor environments and necessity‐driven entrepreneurship by focusing on individual‐level incentives in non‐knowledge‐intensive sectors.Managerial SummaryChanges in employment conditions influence employees to consider starting their own businesses, yet our understanding of how these changes drive individuals toward entrepreneurship remains limited. This study explores how weakened labor union power affects workers' engagement in entrepreneurial activities, with a focus on the types of employees impacted and the businesses that they start. By examining the adoption of RTW laws in Michigan and Indiana, we find that weakened labor union power disproportionately affects blue‐collar and low‐wage workers, increasing their likelihood of starting unincorporated businesses. These results suggest that managers and policymakers should consider the challenges faced by these workers and how changes in employment conditions may shape their career choices.
{"title":"Anti‐labor environments and employee entrepreneurship: Evidence from right‐to‐work laws","authors":"Daehyun Kim, Namil Kim, Haemin Dennis Park","doi":"10.1002/sej.70006","DOIUrl":"https://doi.org/10.1002/sej.70006","url":null,"abstract":"Research SummaryWe explore how changes in labor unions and related labor environments affect employees' likelihood of starting a new business. We suggest that the enactment of stringent anti‐union laws reduces incentives for employees to stay with their respective workplaces and increases the attractiveness of becoming self‐employed. Using the adoption of right‐to‐work (RTW) laws in Michigan and Indiana as a quasi‐natural experiment, we find that the likelihood of employees becoming self‐employed increased by 53% compared with that of states without RTW laws. Moreover, this tendency is more pronounced for blue‐collar and low‐wage workers who start unincorporated businesses. These findings offer novel insights on the relationship between anti‐labor environments and necessity‐driven entrepreneurship by focusing on individual‐level incentives in non‐knowledge‐intensive sectors.Managerial SummaryChanges in employment conditions influence employees to consider starting their own businesses, yet our understanding of how these changes drive individuals toward entrepreneurship remains limited. This study explores how weakened labor union power affects workers' engagement in entrepreneurial activities, with a focus on the types of employees impacted and the businesses that they start. By examining the adoption of RTW laws in Michigan and Indiana, we find that weakened labor union power disproportionately affects blue‐collar and low‐wage workers, increasing their likelihood of starting unincorporated businesses. These results suggest that managers and policymakers should consider the challenges faced by these workers and how changes in employment conditions may shape their career choices.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"16 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145241198","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Maud Thys, Maikel Pellens, Hanna Hottenrott, Marius Berger
Research SummaryWe investigate public support and venture capital (VC) investment in academic startups. Government support may enable follow‐on investment by providing a quality signal to investors. This signal is especially important for academic startups, which face large funding gaps due to their complexity, cutting‐edge nature, and uncertainty regarding the founders' management capabilities and commitment. Using a panel of startups in Germany, our analyses confirm that academic startups are more likely to obtain follow‐on VC investment after receiving public support than non‐academic startups. Further, this effect is limited in time, lasts longer for academic startups, is concentrated in high‐tech manufacturing firms, and is stronger for investments from business angels. Our findings have implications for policymakers seeking to foster academic entrepreneurship through policy programs and VC investment.Managerial SummaryObtaining seed and growth capital is essential for potentially highly innovative startups. We show that startups that obtain public support are more likely to receive VC funding and that this effect is stronger for startups with academic founders, approximately twice as large. We further show that this benefit is limited in time, concentrated in the high‐tech manufacturing industry, and more salient for business angel financing than for investment by independent VC funds or corporate VCs. For founders of academic startups, our results imply that acquiring public support might enhance the chances of attracting follow‐on financing.
{"title":"Public support and VC financing in academic startups","authors":"Maud Thys, Maikel Pellens, Hanna Hottenrott, Marius Berger","doi":"10.1002/sej.70003","DOIUrl":"https://doi.org/10.1002/sej.70003","url":null,"abstract":"Research SummaryWe investigate public support and venture capital (VC) investment in academic startups. Government support may enable follow‐on investment by providing a quality signal to investors. This signal is especially important for academic startups, which face large funding gaps due to their complexity, cutting‐edge nature, and uncertainty regarding the founders' management capabilities and commitment. Using a panel of startups in Germany, our analyses confirm that academic startups are more likely to obtain follow‐on VC investment after receiving public support than non‐academic startups. Further, this effect is limited in time, lasts longer for academic startups, is concentrated in high‐tech manufacturing firms, and is stronger for investments from business angels. Our findings have implications for policymakers seeking to foster academic entrepreneurship through policy programs and VC investment.Managerial SummaryObtaining seed and growth capital is essential for potentially highly innovative startups. We show that startups that obtain public support are more likely to receive VC funding and that this effect is stronger for startups with academic founders, approximately twice as large. We further show that this benefit is limited in time, concentrated in the high‐tech manufacturing industry, and more salient for business angel financing than for investment by independent VC funds or corporate VCs. For founders of academic startups, our results imply that acquiring public support might enhance the chances of attracting follow‐on financing.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"68 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145056709","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research We study how providing knowledge about “how to do entrepreneurship” influences women's pre‐entry decision to enroll in micro‐entrepreneurship training in poverty settings. We carry out a field experiment study with unemployed women in rural India, randomly exposing them to “founding templates” that depict simple and replicable business set‐ups and practices. We find that exposure to founding templates, especially those that exemplify social support rather than self‐dependence, significantly increases women's sign‐ups to entrepreneurship training. We also find that increased sign‐ups are accompanied by enhanced perceived ease of starting a business. These results shed light on what motivates women in the pre‐entry stage and offer insights on how to increase enrolment, ultimately broadening women's participation in entrepreneurship in poverty contexts.Managerial Micro‐entrepreneurship training is a widely used intervention to support women's participation in entrepreneurship in poverty settings. While existing research predominantly focuses on assessing the impact of such interventions, we ask when women are motivated to sign up for training in the first place. Our study involved a full‐day information workshop, targeting unemployed women in rural India and providing them with frameworks and practical examples of replicable business setups and practices. Results indicate that access to templates, especially those that exemplify social support rather than self‐dependence, significantly boosts women's confidence and motivation to consider entrepreneurship as a viable option. We thus identify a key institutional lever for broadening the funnel of women's entry into training and entrepreneurship.
{"title":"Broadening the entrepreneurship funnel for women in poverty contexts: Field‐experimental evidence from India","authors":"Leena Kinger‐Hans, Juan Ma","doi":"10.1002/sej.70002","DOIUrl":"https://doi.org/10.1002/sej.70002","url":null,"abstract":"Research We study how providing knowledge about “how to do entrepreneurship” influences women's pre‐entry decision to enroll in micro‐entrepreneurship training in poverty settings. We carry out a field experiment study with unemployed women in rural India, randomly exposing them to “founding templates” that depict simple and replicable business set‐ups and practices. We find that exposure to founding templates, especially those that exemplify social support rather than self‐dependence, significantly increases women's sign‐ups to entrepreneurship training. We also find that increased sign‐ups are accompanied by enhanced perceived ease of starting a business. These results shed light on what motivates women in the pre‐entry stage and offer insights on how to increase enrolment, ultimately broadening women's participation in entrepreneurship in poverty contexts.Managerial Micro‐entrepreneurship training is a widely used intervention to support women's participation in entrepreneurship in poverty settings. While existing research predominantly focuses on assessing the impact of such interventions, we ask when women are motivated to sign up for training in the first place. Our study involved a full‐day information workshop, targeting unemployed women in rural India and providing them with frameworks and practical examples of replicable business setups and practices. Results indicate that access to templates, especially those that exemplify social support rather than self‐dependence, significantly boosts women's confidence and motivation to consider entrepreneurship as a viable option. We thus identify a key institutional lever for broadening the funnel of women's entry into training and entrepreneurship.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"22 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144897918","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kristian Nielsen, Stephan Heblich, Saras D. Sarasvathy
Research SummaryIn an agenda setting seminar in 1997, when entrepreneurship was just emerging as a serious field of scholarship, Nobel Laureate Kenneth Arrow offered a challenging null hypothesis, namely, that entrepreneurship being a stochastic phenomenon, educational content is unlikely to make a difference in startup rates or success thereafter. With a view to begin tackling this null, we utilize a nationwide educational reform as a quasi‐experiment to investigate the effect of business and entrepreneurship‐oriented education on (i) early age startup (i.e., direct effects) and (ii) postgraduation choices that may lead to startup activity later (i.e., indirect effects). We find evidence for positive direct and indirect effects and discuss implications for future research into the design of entrepreneurship education policies as well as content and teacher training.Managerial SummaryA variety of entrepreneurship programs exist at prestigious universities to stimulate startup for students who enroll in these based on entrepreneurial preferences and intentions. The resulting new ventures created are important drivers of innovation, economic growth, and job creation. Our study indicates that exposure to business and entrepreneurship content at an earlier age is equally important. Both in terms of obtaining a realistic insight into entrepreneurship as a career, leading to more realized startups of high quality but also in terms of developing a preference for entrepreneurship affecting subsequent choices regarding tertiary education and employment in favor of future entrepreneurship. We suggest investments in broadening entrepreneurship education for all in contrast to for specific targeted groups such as university or technology entrepreneurs.
{"title":"Nationwide entrepreneurship content in secondary schools: Impact on entrepreneurial careers","authors":"Kristian Nielsen, Stephan Heblich, Saras D. Sarasvathy","doi":"10.1002/sej.1551","DOIUrl":"https://doi.org/10.1002/sej.1551","url":null,"abstract":"Research SummaryIn an agenda setting seminar in 1997, when entrepreneurship was just emerging as a serious field of scholarship, Nobel Laureate Kenneth Arrow offered a challenging null hypothesis, namely, that entrepreneurship being a stochastic phenomenon, educational content is unlikely to make a difference in startup rates or success thereafter. With a view to begin tackling this null, we utilize a nationwide educational reform as a quasi‐experiment to investigate the effect of business and entrepreneurship‐oriented education on (i) early age startup (i.e., direct effects) and (ii) postgraduation choices that may lead to startup activity later (i.e., indirect effects). We find evidence for positive direct and indirect effects and discuss implications for future research into the design of entrepreneurship education policies as well as content and teacher training.Managerial SummaryA variety of entrepreneurship programs exist at prestigious universities to stimulate startup for students who enroll in these based on entrepreneurial preferences and intentions. The resulting new ventures created are important drivers of innovation, economic growth, and job creation. Our study indicates that exposure to business and entrepreneurship content at an earlier age is equally important. Both in terms of obtaining a realistic insight into entrepreneurship as a career, leading to more realized startups of high quality but also in terms of developing a preference for entrepreneurship affecting subsequent choices regarding tertiary education and employment in favor of future entrepreneurship. We suggest investments in broadening entrepreneurship education for all in contrast to for specific targeted groups such as university or technology entrepreneurs.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"12 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144629596","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Andrea Belz, Alexandra Graddy‐Reed, Fernando Zapatero
Research SummaryUniversity spinoffs (USOs) translate scientific advancement to economic gains, but the role of the university's governance as a public or private institution is infrequently explored. With a novel dataset of academic entrepreneurs with National Science Foundation I‐Corps training, we examine institutional governance as a fundraising signal. We demonstrate how angel investors and venture capitalists (VCs) show a preference for private USOs. However, with different investment objectives, the groups conduct distinct sensemaking that weighs this cue differently. For angels, industry moderates the effect such that they prefer private university life science firms to public USOs. However, industry mediates the effect for VCs, who prefer life sciences to engineering. We describe this variation as mixed salience—when a signal yields differences in decision‐making for distinct audiences.Managerial SummaryUniversity spinoffs (USOs) are important for economic growth, but little is known about differences between USOs from public and private universities. We study how angel investors and venture capitalists (VCs) fund USOs of public and private schools. These two investor groups make funding decisions with different priorities and approaches. Both groups appear to prefer private universities. A deeper look reveals that angel investors prefer private university life science teams to the public university counterparts. On the other hand, VCs prefer life sciences teams to engineering teams—and life sciences teams are more likely to come from private schools. Evidently, the two investor audiences respond to the public/private distinction in different ways.
{"title":"The signal of institutional governance in early‐stage financing for university spinoffs","authors":"Andrea Belz, Alexandra Graddy‐Reed, Fernando Zapatero","doi":"10.1002/sej.1552","DOIUrl":"https://doi.org/10.1002/sej.1552","url":null,"abstract":"Research SummaryUniversity spinoffs (USOs) translate scientific advancement to economic gains, but the role of the university's governance as a public or private institution is infrequently explored. With a novel dataset of academic entrepreneurs with National Science Foundation I‐Corps training, we examine institutional governance as a fundraising signal. We demonstrate how angel investors and venture capitalists (VCs) show a preference for private USOs. However, with different investment objectives, the groups conduct distinct sensemaking that weighs this cue differently. For angels, industry moderates the effect such that they prefer private university life science firms to public USOs. However, industry mediates the effect for VCs, who prefer life sciences to engineering. We describe this variation as mixed salience—when a signal yields differences in decision‐making for distinct audiences.Managerial SummaryUniversity spinoffs (USOs) are important for economic growth, but little is known about differences between USOs from public and private universities. We study how angel investors and venture capitalists (VCs) fund USOs of public and private schools. These two investor groups make funding decisions with different priorities and approaches. Both groups appear to prefer private universities. A deeper look reveals that angel investors prefer private university life science teams to the public university counterparts. On the other hand, VCs prefer life sciences teams to engineering teams—and life sciences teams are more likely to come from private schools. Evidently, the two investor audiences respond to the public/private distinction in different ways.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"10 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144622212","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research SummaryBuilding on recent studies on founders' entry strategy and the attention‐based view, our study examines the underexplored relationship between entrepreneurial entry mode and funding performance. We offer a novel perspective on how different entry strategies—such as hybrid, portfolio, and full‐time entrepreneurship—impact start‐up performance. Additionally, we develop a theoretical framework highlighting founder attention as a mediator in this relationship. Our research was conducted in the crowdfunding context, with findings remaining consistent across multiple measures of founder attention and funding performance. To address potential endogeneity concerns, we employ two‐stage instrumental variable analyses and a propensity score matching method, ensuring the robustness of our results.Managerial SummaryEntrepreneurs' choice of entry strategy plays a critical role in shaping their ability to secure funding and drive their start‐up success. Our study highlights how different entry strategies—hybrid, portfolio, and full‐time entrepreneurship—affect funding performance, particularly in the crowdfunding context. A key insight is the role of founder attention in mediating the relationship between entry strategy and funding success. The way founders allocate their focus across different pursuits influences investor perceptions and financial outcomes. Therefore, aligning entry strategies with the ability to effectively manage and signal commitment to ventures is essential from a practical standpoint. Moreover, entrepreneurs and investors should consider how strategic entry choices impact not only operational execution but also the likelihood of securing financial support.
{"title":"Founder's entry strategy and funding performance in the crowdfunding industry: The mediating role of founder's attention","authors":"Dalee Yoon, Joon Mahn Lee, Luke Rhee","doi":"10.1002/sej.1540","DOIUrl":"https://doi.org/10.1002/sej.1540","url":null,"abstract":"Research SummaryBuilding on recent studies on founders' entry strategy and the attention‐based view, our study examines the underexplored relationship between entrepreneurial entry mode and funding performance. We offer a novel perspective on how different entry strategies—such as hybrid, portfolio, and full‐time entrepreneurship—impact start‐up performance. Additionally, we develop a theoretical framework highlighting founder attention as a mediator in this relationship. Our research was conducted in the crowdfunding context, with findings remaining consistent across multiple measures of founder attention and funding performance. To address potential endogeneity concerns, we employ two‐stage instrumental variable analyses and a propensity score matching method, ensuring the robustness of our results.Managerial SummaryEntrepreneurs' choice of entry strategy plays a critical role in shaping their ability to secure funding and drive their start‐up success. Our study highlights how different entry strategies—hybrid, portfolio, and full‐time entrepreneurship—affect funding performance, particularly in the crowdfunding context. A key insight is the role of founder attention in mediating the relationship between entry strategy and funding success. The way founders allocate their focus across different pursuits influences investor perceptions and financial outcomes. Therefore, aligning entry strategies with the ability to effectively manage and signal commitment to ventures is essential from a practical standpoint. Moreover, entrepreneurs and investors should consider how strategic entry choices impact not only operational execution but also the likelihood of securing financial support.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"107 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144269395","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research SummaryBuilding on prior research about the heterogeneous impact of labor shocks on individuals' propensity to start businesses, we explore how local labor market frictions affect individuals' selection into platform‐based entrepreneurship. Combining detailed data from a large online retail platform with sectoral employment statistics across labor market areas in the United States, we show that entrepreneurs entering the platform during larger local employment declines in related sectors developed more effective customer strategies and maintained stronger sales performance. These entrepreneurs focused more on customer appeal, matched social media channels with the platform's predominant user base, and lowered prices over time.Managerial SummaryThis article examines how local labor market frictions in sectors relevant to a digital platform shape the heterogeneous entry of individuals into platform‐based entrepreneurship—a class of entrepreneurship that became popular with “creator economy” business models where individuals rely on digital infrastructures to access potential customers and monetize their creative labor. We find that entrepreneurs who started platform‐based businesses in deteriorating local employment conditions generated significantly higher sales by being more attuned to customers' needs and wants. We show that these entrepreneurs emphasized customer‐related activities, chose more effective social media channels, and set lower prices after operating for a few periods. Our findings highlight the importance of customer‐related competitive advantages in platform‐based entrepreneurship.
{"title":"Local labor market frictions and platform‐based entrepreneurship","authors":"Ruiqing Cao, Yifan Lyu","doi":"10.1002/sej.1550","DOIUrl":"https://doi.org/10.1002/sej.1550","url":null,"abstract":"Research SummaryBuilding on prior research about the heterogeneous impact of labor shocks on individuals' propensity to start businesses, we explore how local labor market frictions affect individuals' selection into platform‐based entrepreneurship. Combining detailed data from a large online retail platform with sectoral employment statistics across labor market areas in the United States, we show that entrepreneurs entering the platform during larger local employment declines in related sectors developed more effective customer strategies and maintained stronger sales performance. These entrepreneurs focused more on customer appeal, matched social media channels with the platform's predominant user base, and lowered prices over time.Managerial SummaryThis article examines how local labor market frictions in sectors relevant to a digital platform shape the heterogeneous entry of individuals into platform‐based entrepreneurship—a class of entrepreneurship that became popular with “creator economy” business models where individuals rely on digital infrastructures to access potential customers and monetize their creative labor. We find that entrepreneurs who started platform‐based businesses in deteriorating local employment conditions generated significantly higher sales by being more attuned to customers' needs and wants. We show that these entrepreneurs emphasized customer‐related activities, chose more effective social media channels, and set lower prices after operating for a few periods. Our findings highlight the importance of customer‐related competitive advantages in platform‐based entrepreneurship.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"36 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144252052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research SummaryThe paper explores how the deep historical roots of informal institutions influence current informal businesses. It proposes that both pre‐colonial institutions—the tradition of cousin marriage—and the subsequent shocks of colonization still impact the performance of informal firms. We theorize on how the effects of historical family systems are moderated by the traumatic and spatially heterogeneous shocks of colonialism, in particular the cultural values of the colonizers (individualism) and their religious (missionary) activities. Our hypotheses are tested by regression analysis based on surveys of informal businesses in multiple regions of eight African countries. We find that the cousin marriage tradition is negatively associated with the performance of current informal businesses though this relationship is attenuated in places where colonizers were more individualistic.Managerial SummaryThis paper explores how the pre‐colonial family institutions—the tradition of cousin marriage—and the subsequent shocks of colonization jointly impact the performance of contemporary informal firms in sub‐Saharan Africa. We propose that the historical tradition of cousin marriage has persistent and negative effects on the revenue and labor productivity of contemporary informal businesses. This is because informal entrepreneurs in ethnic areas with the cousin marriage tradition may prioritize social obligations over economic incentives. However, these relationships are attenuated in ethnic areas colonized by European countries with more individualistic cultural values. Our findings highlight the importance for business owners and managers to understand the deep historical roots of the social norms of the communities and groups with which they interact.
{"title":"The cousin marriage tradition, colonial shocks, and the performance of informal firms in sub‐Saharan Africa","authors":"Saul Estrin, Tomasz Mickiewicz, Peng Zhang","doi":"10.1002/sej.1549","DOIUrl":"https://doi.org/10.1002/sej.1549","url":null,"abstract":"Research SummaryThe paper explores how the deep historical roots of informal institutions influence current informal businesses. It proposes that both pre‐colonial institutions—the tradition of cousin marriage—and the subsequent shocks of colonization still impact the performance of informal firms. We theorize on how the effects of historical family systems are moderated by the traumatic and spatially heterogeneous shocks of colonialism, in particular the cultural values of the colonizers (individualism) and their religious (missionary) activities. Our hypotheses are tested by regression analysis based on surveys of informal businesses in multiple regions of eight African countries. We find that the cousin marriage tradition is negatively associated with the performance of current informal businesses though this relationship is attenuated in places where colonizers were more individualistic.Managerial SummaryThis paper explores how the pre‐colonial family institutions—the tradition of cousin marriage—and the subsequent shocks of colonization jointly impact the performance of contemporary informal firms in sub‐Saharan Africa. We propose that the historical tradition of cousin marriage has persistent and negative effects on the revenue and labor productivity of contemporary informal businesses. This is because informal entrepreneurs in ethnic areas with the cousin marriage tradition may prioritize social obligations over economic incentives. However, these relationships are attenuated in ethnic areas colonized by European countries with more individualistic cultural values. Our findings highlight the importance for business owners and managers to understand the deep historical roots of the social norms of the communities and groups with which they interact.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"7 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144193044","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Research SummaryExtant research in neuroscience suggests that human perception is multimodal in nature—we model the world integrating diverse data sources such as sound, images, taste, and smell. Working in a dynamic environment, entrepreneurs are expected to draw on multimodal inputs in their decision making. However, extant research in entrepreneurship has largely focused on how entrepreneurs or investors develop insights from data in a single mode. A few studies that have used a multimodal approach either simplify the multimodal data (MMD) into a few constructs or manually analyze the data without fully utilizing their potential. Such oversimplification limits the insights that can be gained from MMD. In this paper, we offer a framework to guide researchers to analyze and integrate MMD, capturing various cues embedded in the entrepreneurial process. We illustrate how applying machine learning algorithms to MMD can engender a robust, reliable, and scalable approach for researchers to effectively capture the elusive yet critical aspects of entrepreneurial phenomena. We also curate a set of data and algorithm resources for researchers interested in leveraging MMD in their studies.Managerial SummaryEntrepreneurs operate in fast‐paced and complex environments where success often relies on the ability to make sense of diverse and rich information, which ranges from explicit observations (e.g., what they see and hear) to more subtle contextual cues. Yet, most entrepreneurship research focuses on analyzing data in a single mode, such as only texts or numbers. Our research highlights the importance of embracing multimodal data (MMD) that combines various formats like audio, image, video, and text, to better understand and explain entrepreneurial decision‐making. We introduce a practical framework and a set of machine learning techniques that help managers and researchers alike harness the richness of multimodal data. Rather than simplifying or manually analyzing multimodal data, our approach allows for scalable, systematic, and reliable insights into the entrepreneurial process. For practitioners, this means better tools for evaluating pitches, tracking team dynamics, or sensing market trends in real time. To support adoption, we also provide a curated set of MMD sources and algorithms that organizations can leverage to make more informed strategic decisions.
{"title":"Integrating multimodal data and machine learning for entrepreneurship research","authors":"Yash Raj Shrestha, Vivianna Fang He","doi":"10.1002/sej.1546","DOIUrl":"https://doi.org/10.1002/sej.1546","url":null,"abstract":"Research SummaryExtant research in neuroscience suggests that human perception is multimodal in nature—we model the world integrating diverse data sources such as sound, images, taste, and smell. Working in a dynamic environment, entrepreneurs are expected to draw on multimodal inputs in their decision making. However, extant research in entrepreneurship has largely focused on how entrepreneurs or investors develop insights from data in a single mode. A few studies that have used a multimodal approach either simplify the multimodal data (MMD) into a few constructs or manually analyze the data without fully utilizing their potential. Such oversimplification limits the insights that can be gained from MMD. In this paper, we offer a framework to guide researchers to analyze and integrate MMD, capturing various cues embedded in the entrepreneurial process. We illustrate how applying machine learning algorithms to MMD can engender a robust, reliable, and scalable approach for researchers to effectively capture the elusive yet critical aspects of entrepreneurial phenomena. We also curate a set of data and algorithm resources for researchers interested in leveraging MMD in their studies.Managerial SummaryEntrepreneurs operate in fast‐paced and complex environments where success often relies on the ability to make sense of diverse and rich information, which ranges from explicit observations (e.g., what they see and hear) to more subtle contextual cues. Yet, most entrepreneurship research focuses on analyzing data in a single mode, such as only texts or numbers. Our research highlights the importance of embracing multimodal data (<jats:styled-content style=\"fixed-case\">MMD</jats:styled-content>) that combines various formats like audio, image, video, and text, to better understand and explain entrepreneurial decision‐making. We introduce a practical framework and a set of machine learning techniques that help managers and researchers alike harness the richness of multimodal data. Rather than simplifying or manually analyzing multimodal data, our approach allows for scalable, systematic, and reliable insights into the entrepreneurial process. For practitioners, this means better tools for evaluating pitches, tracking team dynamics, or sensing market trends in real time. To support adoption, we also provide a curated set of <jats:styled-content style=\"fixed-case\">MMD</jats:styled-content> sources and algorithms that organizations can leverage to make more informed strategic decisions.","PeriodicalId":51417,"journal":{"name":"Strategic Entrepreneurship Journal","volume":"15 1","pages":""},"PeriodicalIF":6.3,"publicationDate":"2025-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144193345","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"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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