Determining the influence of national culture: insights into entrepreneurs’ collective identity and effectuation

While prior research demonstrates that an entrepreneur’s behavior and perceptions are essentially shaped by national culture, little is known about how cultural values impact effectual behavior among entrepreneurs. We outline a conceptual model of how entrepreneurs’ effectual behavior is shaped by collective identity under different levels of cultural conditioning (i.e., national cultural values). Based on a survey of 235 Thai and German entrepreneurs we analyze the impact of Hofstede’s cultural dimensions of power distance, individualism, masculinity, and long-term orientation on the relationship between collective identity and effectuation. Results show that national culture is dispositive for the causal effects of collective identity on effectual behavior. Our findings demonstrate that the entrepreneur’s effectual behavior differs due to their national cultural conditioning.

     

Constructing an entrepreneurial life: liminality and emotional reflexivity in identity work

ABSTRACT

This paper examines the identity work of a budding entrepreneur through a longitudinal case study based on his ongoing personal reflections as he tries to construct an entrepreneurial life. In particular, we investigate the role of emotional reflexivity and liminality, concepts that give us analytical purchase in exploring the complex dynamics of this identity work. The liminal condition of multiple identity positions enables our informant to experiment with and integrate several parallel identity narratives as he tries on socio-political constructions of ‘the entrepreneur’ for size; and it is the permanence of the liminal condition that makes emotional reflexivity necessary so he can handle the constant lack he experiences. The contribution of our work lies in exploring how the operation of the discourse of enterprise never closes on the centre of subjectivity that is imputed in that discourse, and how our subject, through emotional reflexivity, deals with this fundamental lack.     

Performative entrepreneurship: identity,behaviour and place in adventure sports Enterprise

This research explores entrepreneurial identity and place in adventure sports within the emerging field of sports entrepreneurship. A growing body of literature has established the broad parameters of sports entrepreneurs mainly within the fitness sector. This study applies a performative entrepreneurship lens to explore the embedded nature of identity, behaviour and place amongst mountain bike (MTB) trainers and guides. This qualitative study is based around interviews with six trainers/guides conducted via online forums as well as participatory observations made on a group ride and of a communal response to the natural environment through trail building. Findings illustrate that unlike the fitness sector where there is a more established market and where entrepreneurs often move from employment to self-employment within the sector, the MTB adventure sports entrepreneur operates in a less formalised market resulting in less formal strategic planning. ‘Place’ is an important factor in the performative nature of enterprise in this study and it is clear that it is through lifestyle entrepreneurship that the individuals are ‘performing’ identity.

     

Humanistic entrepreneurship and entrepreneurial career commitment

Although the crucial role of entrepreneurs in the process of establishing firms is common knowledge in SME research, a major theoretical problem has been how to combine theories of ‘persons’ (entrepreneurs) with theories of ‘organizations’ (firms).

In this study I suggest that what is missing is a dynamic or processual approach to the study of entrepreneurs. Just as organizations change during their development, so do persons. In order to understand how in particular new firms come about, we should look more closely into the dynamics of personal change that lead certain individuals to commit themselves to entrepreneurial careers.

A study of humanistic entrepreneurs in Denmark indicates that the process of becoming an entrepreneur can be seen as a particular kind of career commitment. The emergence of such career commitments is analysed. Different patterns of entrepreneurial career commitments are presented and explained in terms of both structural conditions and biographical self–narratives.     

Entrepreneurship and Firm Boundaries: The Theory of A Firm

abstract In this paper, we consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed. We start from the premise that while entrepreneurs believe themselves to have superior ideas in one or multiple parts of the value chain, they are characteristically short of cash, and of the ability to convince others to provide it. This premise motivates a simple model in which the entrepreneur has a value‐adding set of ideas for ‘upstream’ and ‘downstream’ parts of a value chain, as well as for the ways to make these two parts of the value chain work better when joined under unitary control. Assuming that the entrepreneur's objective is to maximize her wealth, we observe that even in the presence of transactional risks or other factors that might make integration preferable to specialization, initial scope depends also on relatively unexplored factors such as (a) how severe the entrepreneur's cash constraint is, and (b) how much value the entrepreneur's ideas add at each part of the value chain. Entrepreneurs will focus on the areas that provide the maximum profit yield per available cash – a criterion which implies that scope choices depend on cash availability and the depth of the demand for the new idea along the value chain. We also note that entrepreneurs make money not only from the operating profits of their firms, but also from the appreciation of the assets the firm has accumulated. This consideration can change the optimal choice of the firms’ boundaries, as entrepreneurs must be sensitive to choosing the segment that will enable them to benefit not only in terms of profit, but also in terms of asset appreciation. We propose that, in the entrepreneurial context especially, it is helpful to focus on the multiple considerations affecting the choice of boundaries for ‘a’ firm – the context faced by an individual entrepreneur – rather than on generic considerations affecting ‘the’ (representative) firm. Scope choices reflect the entrepreneur's own theory of ‘how to make money’.     

The emergence of small transnational enterprise in Vancouver: the case of Chinese entrepreneur immigrants

This article examines the small transnational enterprises of recent Chinese entrepreneur immigrants to Vancouver, Canada. These enterprises are part of the globalization process and contribute to the economic and cultural integration of certain regions of Asia with large urban areas of Canada. The entrepreneurs are analyzed utilizing a transnationalism framework which is situated in the ethnic enterprise literature. The article explains how these transnational small Chinese businesses are different from the businesses of earlier Chinese in Canada. A detailed analysis of the Canadian Business Immigration Program illustrates how and why small Chinese transnational enterprises have emerged. The primary data comes from extensive in–depth interviews with 61 Chinese entrepreneur immigrants that allows for the delineation of three transnational business types: (1) Asian production–North American distribution, (2) retail chains and (3) import–export. Quantitative data illustrate the major differences between ‘transnational’ and ‘non–transnational’ enterprises along several variables. Other qualitative data provide insights on how family networks are interwoven with firm relations in small transnational businesses, how entrepreneurs perceive interethnic relations and the extent to which they experience barriers to mobility. Evidence is provided of extensive transmigration and, in contrast to the sojourner identity of earlier Chinese, the data here suggests the emergence of a new transnational and cosmopolitan identity amongst entrepreneur immigrants. Cet article étudie les petites entreprises transnationales des récents immigrants chinois de Vancouver (Canada). Celles–ci s’inscrivent dans le processus de mondialisation et contribuent à l’intégration économique et culturelle de certaines régions d’Asie dans d’importantes zones urbaines canadiennes. L’analyse de ces créateurs d’entreprise est faite à partir d’un cadre d’analyse transnationaliste qui se situe dans la littérature sur l’entreprise ethnique. L’article explique en quoi ces petites entreprises chinoises transnationales diffèrent de celles des Chinois arrivés plus tôt au Canada. Une étude détaillée du Programme canadien d’Immigration des Hommes d’affaires explique comment et pourquoi sont apparues ces petites entités transnationales. Les principales données, tirées d’entretiens approfondis avec 61 entrepreneurs chinois, permettent de définir trois types d’entreprises transnationales: production asiatique avec distribution nord–américaine, chaînes de détaillants, et import–export. Des données quantitatives illustrent les grandes différences entre les entreprises ‘transnationales’ et ‘non–transnationales’ en fonction de plusieurs variables. D’autres données quantitatives révèlent de quelle manière les réseaux familiaux s’entremêlent avec les relations professionnelles dans les petites entités transnationales, comment les chefs d’entreprise perçoivent les relations inter–ethniques et dans quelle mesure ils rencontrent des obstacles à leur mobilité. Une importante transmigration est mise en evidence et, par opposition au caractère temporaire du séjour des premiers Chinois, les données suggèrent ici l’émergence d’une nouvelle identité transnationale et cosmopolite chez les immigrants chefs d’entreprise.     

Entrepreneurial motivation: a non-entrepreneur’s journey to become an entrepreneur

In entrepreneurship literature, much research effort is focused on differentiating entrepreneurs, recognizing or exploiting opportunities, resources available or required, or a combination of the three entrepreneurship-defining factors. There is, however, very little research on understanding a non-entrepreneur’s motivation to become an entrepreneur. This greatly limits our knowledge of the entrepreneurial process. It has hindered our understanding of how non-entrepreneurs are motivated to pursue entrepreneurial career options and has led to misinformed decisions by scholars and policy makers. In this paper, our goal is to develop a theory of entrepreneurial motivation that explains how non-entrepreneurs develop the motivation to pursue entrepreneurship. We argue that an individual’s self-assessment of their identity is the primary factor in individuals developing entrepreneurial motivation. The identity self-assessment leads individuals either to seek enhancement of their identity or establish a new identity that opens them to the influence of entrepreneurial motivation reinforcing entrepreneurial exposure in their social environment.     

“I have to go the extra mile”. How fat female employees manage their stigmatized identity at work

This study explores how fat female employees engage in identity work to manage stigmatizing expectations grounded in healthism and obesity discourse that construct fat people as unhealthy, stupid, unprofessional, and lazy. We interviewed 22 women who self-identified as fat, full-figured or obese. Our analysis reveals how our participants engaged in identity work strategies in order to project a professional appearance and highlight their work performances. Many strategies reproduced dominant notions about fatness such as ‘smartening up’, ‘distracting’, ‘hiding’, ‘concealing’, ‘humour’, ‘compensating’, ‘explaining’ and ‘defensive Othering’. Yet at times some participants also used strategies that challenged dominant discourses about size, such as ‘flaunting’, ‘irony’ and ‘self-acceptance’. The identity work strategies our participants engaged in were not just narrative; many involved what they did with their bodies. We therefore argue the need for further theorizing embodied identity work, specifically with regards to how size matters in the context of employment.     

‘I Like How You Think’: Similarity as an Interaction Bias in the Investor–Entrepreneur Dyad

Investigating the factors that influence venture capital decision‐making has a long tradition in the management and entrepreneurship literatures. However, few studies have considered the factors that might bias an investment decision in a way that is idiosyncratic to a given investor–entrepreneur dyad. We do so in this study. Specifically, we build from the literature on the ‘similarity effect’ to investigate the extent to which decision‐making process similarity (shared between the investor and the entrepreneur) might bias or otherwise impact the investor's evaluation of a new venture investment opportunity. Our findings suggest venture capitalists evaluate more favourably opportunities represented by entrepreneurs who ‘think’ in ways similar to their own. Moreover, in the presence of decision‐making process similarity, the impacts of other factors that inform the investment decision actually change in counter‐intuitive ways.     

Identity in entrepreneurship effectuation theory: a supplementary framework

The article proposes a new framework on identity construction in entrepreneurship that in valuable ways supplements the logic of identity presented in Sarasvathy??s (2001, 2008) popular effectuation theory. Effectuation theory assumes that identity is a given and relative stable precondition of the entrepreneurial process that support the entrepreneur in ordering preferences in the process of effectuating resources, stakeholder commitment, etc.. The article shows that identity construction is an active and integral part of the effectuation process, and it importantly influences the manner in which the entrepreneur acts and makes decisions in the process. The article seeks to challenge and advance effectuation theory??s view on identity based on a narrative study of ten novice student entrepreneurs. The study gives insight into the identity processes involved in becoming a student entrepreneur, and it may serve as a guide to how entrepreneurship educators and counselors can place more emphasis on identity related struggles involved in the entrepreneurial effectuation process.     

‘Embrace the masculine; attenuate the feminine’ – gender,identity work and entrepreneurial legitimation in the nascent context

This article critically analyses how gender bias impacts upon women’s efforts to legitimate nascent ventures. Given the importance of founder identity as a proxy for entrepreneurial legitimacy at nascency, we explore the identity work women undertake when seeking to claim legitimacy for their emerging ventures in a prevailing context of masculinity. In so doing, we challenge taken for granted norms pertaining to legitimacy and question the basis upon which that knowledge is claimed. In effect, debates regarding entrepreneurial legitimacy are presented as gender neutral yet, entrepreneurship is a gender biased activity. Thus, we argue it is essential to recognize how gendered assumptions impinge upon the quest for legitimacy. To illustrate our analysis, we use retrospective and real time empirical evidence evaluating legitimating strategies as they unfold, our findings reveal tensions between feminine identities such as ‘wife’ and ‘mother’ and those of the prototypical entrepreneur. This dissonance prompted women to undertake specific forms of identity work to bridge the gap between femininity, legitimacy and entrepreneurship. We conclude by arguing that the pursuit of entrepreneurial legitimacy during nascency is a gendered process which disadvantages women and has the potential to negatively impact upon the future prospects of their fledgling ventures.     

Women in the migrant economy. A positional approach to contextualize gendered transnational trajectories

ABSTRACT

Drawing on the life histories of migrant women entrepreneurs in the Netherlands and Spain, this article explores the influence of transnational trajectories on their social positions and business strategies. A translocational positional approach enables us to research the transnational strategies of women entrepreneurs more effectively in addition to examining the changes in social positions and gendered identities between the country of origin and the country of destination. This approach contributes to scholarship on ‘context’ by offering a transnational gendered dimension in relation to the effects of social, spatial and institutional factors. Our findings demonstrate how female migrant entrepreneurs redefine their social status in different contexts by establishing a business and challenge, contest or comply with gender relations in their transnational entrepreneurial journeys.     

A longitudinal study of habitual entrepreneurs: starters and acquirers

This study provides insights into the characteristics and behaviour of habitual starter entrepreneurs (i.e. individuals who have established more than one business) and habitual acquirer entrepreneurs (i.e. individuals who have purchased/acquired more than one business). A human capital perspective is utilized to illustrate that the human capital accumulated by a habitual entrepreneur may influence their subsequent behaviour. Prior business ownership experience is discussed in relation to an entrepreneur's human capital accumulation, as well as their search and business opportunity identification behaviour. A case study approach is used to develop propositions that highlight the similarities and differences between habitual starter and acquirer entrepreneurs. Implications for researchers and practitioners are discussed.     

Entrepreneurial Hustle: Navigating Uncertainty and Enrolling Venture Stakeholders through Urgent and Unorthodox Action

Entrepreneurs need to act under conditions of uncertainty and resource constraints to bring new, often-unrecognizable products to market and convince an unknown set of stakeholders to support their endeavours. The type of action entrepreneurs take to navigate uncertain entrepreneurial contexts is underspecified. We analysed 48 interviews with entrepreneurs to inductively identify an action-oriented construct we labelled as entrepreneurial hustle – an entrepreneur’s urgent, unorthodox actions that are intended to be useful in addressing immediate challenges and opportunities under conditions of uncertainty. In a follow-up study, we use an experimental vignette approach to assess the impact of an entrepreneur’s hustle on venture stakeholders. Findings suggest that entrepreneurial hustle positively influences stakeholder perceptions of the entrepreneur’s leadership effectiveness and a venture’s legitimacy, mediated by perceptions of the entrepreneur’s ability-based trustworthiness. We conclude that entrepreneurial hustle is a fundamental behaviour that enables entrepreneurs to enrol new venture stakeholders and lead their entrepreneurial efforts.     

How social enterprises manage their organizational identification: a theoretical framework of identity management approach through attraction,selection, and socialization

Abstract

Social enterprises, as a typical type of hybrid-identity organization, face identification tensions among members, arising from the divergent identities. Prior research has focused on how hybrid identities can be managed at the organizational level. However, the process through which identification emerges in hybrid-identity social enterprises remains relatively unexplored. This study addresses these gaps and aims to contribute to identity and identification theory. This research has taken a qualitative (case study) approach, with in-depth interviews and archival data from nine social enterprises in Taiwan. Our findings reveal three different types of responses to hybrid identities of social enterprises: synthesis, integration, and deletion. It is observed that different hybrid identities management and organizational identification management practices will lead to members’ identification and dis-identification. This research proposes an attraction-selection-socialization model, suggesting that, to foster identification, social enterprises need to manage their hybrid organizational identities and embed the new common identity into members’ daily work through attraction, selection, and socialization processes.     

‘Control – What Control?’ Culture and Ambiguity Within a Knowledge Intensive Firm*

ABSTRACT This paper explores the distinctive culture that existed within a knowledge‐intensive firm (KIF) and also attempts to explain the emergence and effects of this culture. The findings are based on a detailed case study that was conducted over two years within a consultancy firm that created and applied scientific knowledge and expertise to the invention of solutions for clients. The firm employed highly educated scientists, considered ‘leading’ in their respective disciplines and project work was inherently fluid, complex, and uncertain. These kinds of ‘knowledge workers’, and this kind of work, are expected to demand high levels of autonomy. This creates complex managerial dilemmas around how to balance autonomy with control and uncertainty and flexibility with efficiency. The analysis shows how a strong culture based on an acceptance of ambiguity (e.g. in roles, power relations, organizational routines and practices) promoted the development of a loyal, committed, effective workforce and sustained a fluid and flexible form of project working over time. Critically, ambiguity allowed individuals to sustain multiple identities as both ‘expert’ and ‘consultant’. This, coupled with a corporate identity premised on ‘élitism’, helped to maximize commitment to the work and minimize tensions between control and autonomy. Thus the culture that embraced ambiguity (a consensus that there would be no consensus) engendered a form of normative control whereby consultants operated freely and at the same time willingly participated in the regulation of their own autonomy.     

‘Recession push’ and ‘prosperity pull’ entrepreneurship in a rural developing context

In this paper, the ‘recession push’ and the ‘prosperity pull’ hypotheses are used to analyse the effect of growing non-farm wage employment on entrepreneurship in a rural developing context. Data are collected in a rural household survey in 110 communes in central Vietnam which includes subjective owner assessments of reasons for starting non-farm businesses. This way it is possible to separately test the two hypotheses by distinguishing opportunity and necessity entrepreneurs. We use clustered probit regression analyses and control for possible endogeneity in order to predict participation in entrepreneurship. The results show that better access to non-farm wage employment increases the likelihood of becoming an opportunity entrepreneur but has no effect on necessity entrepreneurship. This, therefore, supports the ‘prosperity pull’ hypothesis but not the ‘recession push’ hypothesis. The growing non-farm economy is likely to accelerate the emergence of opportunity entrepreneurship in rural areas. However, necessity entrepreneurs are suffering from a lack of individual and household assets which pushes them into entrepreneurship regardless of non-farm job opportunities in the surrounding area.     

Switch or persevere? The effects of experience and metacognition on persistence decisions

This paper extends the scholarly understanding of entrepreneurial persistence decisions by identifying individual-level constructs that moderate which decision criteria have the most influence on entrepreneurs’ persistence decisions. Prior research demonstrates that contextual factors, such as feedback through adversity and the attractiveness of opportunities in an entrepreneur’s environment, determine whether or not an entrepreneur will persist with their current venture. We contribute to this literature by theoretically proposing and empirically testing how individual differences in entrepreneurial experience, metacognitive experience, and metacognitive knowledge moderate which aspects of environmental information entrepreneurs pay the most attention to when deciding whether or not to persist. We test our proposed model using a conjoint experiment that allows for monitoring actual persistence decisions of 124 entrepreneurs. Results suggest that metacognitive knowledge influences persistence decisions primarily through altering the impact that probability of expected outcomes associated with potential alternatives has on entrepreneurs’ persistence decisions. Furthermore, the results provide evidence that more experienced entrepreneurs weigh financial returns and switching costs more heavily when making persistence decisions.     

Entrepreneurs’ achieved success: developing a multi-faceted measure

Firm performance is typically measured via objective financial indicators. However, researchers increasingly acknowledge that entrepreneurs do not measure their success solely in financial terms but that a range of often subjective indicators matter to them. This article contributes to the debate on entrepreneurial performance by studying how entrepreneurs assess their achieved success. ‘Entrepreneurs’ achieved success’ was conceptualized as a multi-faceted construct that includes entrepreneurs’ self-reported achievement of firm performance, workplace relationships, personal fulfilment, community impact, and personal financial rewards. It was measured via the Subjective Entrepreneurial Success–Achievement Scale (SES-AS). Over the course of three studies (N?=?390) the factorial structure of ‘entrepreneurs’ achieved success’ was established and largely replicated in two cultures. Based on a nomological network, we documented relationships among ‘entrepreneurs’ achieved success’, quasi-objective indicators of firm performance, and entrepreneurs’ financial satisfaction, creativity, and health. Based on our research, we propose a new conceptual framework to study performance in the context of entrepreneurship. This framework acknowledges both the success criteria that entrepreneurs wish to achieve and those that they actually achieve, and extends our understanding of firm performance.

     

Entrepreneur political skill and new venture performance: Extending the social competence perspective

Research on the social competence perspective holds that since operating high performing new ventures is dependent on entrepreneurs’ ability to influence stakeholder actions, entrepreneur social competence is likely critically important to new venture performance. Using a sample of 163 entrepreneurs throughout the USA, we extend such research by examining the entrepreneur political skill new venture performance relationship. Our results suggest that political skill, which is the component of social competence which specifically assesses an individual's ability to influence other's actions within the business environment, is positively associated with new venture performance. Study results provide additional support for the social competence perspective.