To thine own self be true: Images of self,images of opportunity,and entrepreneurial action

While research in entrepreneurship continues to increase general understanding of the opportunity-recognition process, questions about its nature nonetheless persist. In this study, we seek to complement recent research that relates “the self” to the opportunity-recognition process by deepening understanding of the self vis-à-vis this process. We do this by drawing on the self-representation literature and the decision-making literature to introduce two distinct types of images of self: images of vulnerability and images of capability. In a study of 1936 decisions about hypothetical entrepreneurial opportunities made by 121 executives of technology firms, we then investigate how both types of images of self affect the images of opportunities that underlie opportunity recognition. Our results indicate that both images of self – vulnerability and capability – impact one's images of opportunity.     

Perceived psychological distance,construal processes,and abstractness of entrepreneurial action

In this paper we develop the concept of abstractness as an underlying theoretical structure of entrepreneurial action, specifically to connect individual perception of psychological distance to entrepreneurial action. We draw on construal level theory to model distance and abstractness, using construal as the mechanism where, in new venture creation, entrepreneurs are expected over time to engage in more abstract action when they perceive greater psychological distance. Based on longitudinal data from 350 entrepreneurs, results from cross-lagged panel analysis indicate that psychological distance shapes the actions of entrepreneurs over time through social distance and hypotheticality. These findings advance entrepreneurial action research, practice, and pedagogy by showing that the apparently implicit relationship between entrepreneurial perception and entrepreneurial action may actually be quite explicit, when abstractness of action is seen as a construal-mechanism-based function of psychological distance.     

Entrepreneurial inception: The role of imprinting in entrepreneurial action

Recent research highlights that founders' early decisions and the environmental conditions at founding each imprint upon a new venture in ways that affect growth and survival. However, we know much less about how the entrepreneur is imprinted and how the outcome of this imprinting process influences the entrepreneur and the venture. Through semi-structured interviews and content analysis, our study examines entrepreneurs' formative experiences during sensitive periods of transition, which we refer to as sources of imprint. We illustrate how these sources of imprint impact entrepreneurial decision making and explain how they guide entrepreneurs' decisions as they progress through their entrepreneurial careers. In doing so, we improve our understanding of how entrepreneurs navigate the entrepreneurial process.     

Entrepreneurship through a qualitative lens: Insights on the construction and/or discovery of entrepreneurial opportunity

This article applies inductive analytic techniques to identify and elaborate on two recurring themes that underpin the core puzzle of entrepreneurship research — where entrepreneurial opportunities come from. The first theme is the unique role of imprinting, or the profound influence of social and historical context in constraining the perceptual apparatus of entrepreneurs and delimiting the range of opportunities for innovation available to them. Second, our analysis offers insight into the counterbalancing role of reflexivity, operating at both individual and collective levels of analysis, in generating the ability of entrepreneurs to overcome the constraints of imprinting. These insights are based on a thematic review of the nine studies that comprise this special issue on qualitative research. The nine studies, individually and each in their own way, offer key insights into how we might better understand the emergence of entrepreneurial opportunity.     

Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action

This article explains how entrepreneurship can help resolve the environmental problems of global socio-economic systems. Environmental economics concludes that environmental degradation results from the failure of markets, whereas the entrepreneurship literature argues that opportunities are inherent in market failure. A synthesis of these literatures suggests that environmentally relevant market failures represent opportunities for achieving profitability while simultaneously reducing environmentally degrading economic behaviors. It also implies conceptualizations of sustainable and environmental entrepreneurship which detail how entrepreneurs seize the opportunities that are inherent in environmentally relevant market failures. Finally, the article examines the ability of the proposed theoretical framework to transcend its environmental context and provide insight into expanding the domain of the study of entrepreneurship.     

Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development

By demonstrating the importance of entrepreneurial exit to the entrepreneur, the firm, the industry, and the economy I contend that our understanding of the entrepreneurial process is incomplete without the inclusion of entrepreneurial exit. I define entrepreneurial exit and demonstrate how this conceptualization provides concepts that are unique from those addressed by researchers in other domains; thus outlining a space for it within the literature. In each phase of the entrepreneurial process I explore the development of an exit strategy, reasons for exit and options for exit.     

Online entrepreneurial communication: Mitigating uncertainty and increasing differentiation via Twitter

Research shows that some narratives and symbolic actions produced by entrepreneurial firms can help to reduce audience uncertainty about their quality and differentiate them from rivals. But can communications via online social media channels – which we characterize as “communicative streams” – be used to reduce uncertainty and enhance differentiation? This seems debatable, given that such streams comprise multiple, brief messages (a) that encode signals lacking narrative cohesion; (b) are only fleetingly accessible; and (c) are minimally customized. We address this puzzle using qualitative methods to compare the communications enacted by eight firms that are using Twitter in order to pursue growth. Our theoretical contribution rests in positing links between specific types of communicative streams and audience responses that reflect reduced uncertainty or enhanced differentiation. Our analysis suggests that firms enacting a “Multi-dimensional” communicative stream (which entails a high volume of posts, a high proportion of which signal quality, relational orientation, distinctiveness, and positive affect) are most likely to elicit audience affirmation of firms' quality and/or distinctiveness. Implications for theory, research methods and practice are discussed.     

In the eye of the beholder: How regulatory focus and self-efficacy interact in influencing opportunity recognition

Although there is evidence that regulatory focus is associated with opportunity exploitation, there is a lack of research examining its role at the early stages of opportunity recognition. The present study makes two major contributions to address this gap. First, we demonstrate that entrepreneurs' promotion focus is positively related to opportunity recognition, whereas prevention focus is not significantly related to opportunity recognition. Second, integrating two theories of self-regulation – regulatory focus theory and self-efficacy theory – our findings reveal that a high promotion focus compensates for entrepreneurs' low levels of creative and entrepreneurial self-efficacy in opportunity recognition. Our study extends extant cognitive theories of opportunity recognition.     

Liabilities and benefits: Examining the two sides of the foreignness coin from entrepreneurial perspective

This paper provides an in-depth examination of foreignness at the individual level by studying it in the context of entrepreneurs. Based on data collected from 470 domestic and foreign entrepreneurs operating in the U.S., it was concluded that foreignness has a curvilinear relationship with entrepreneurial performance. There was also evidence of moderating effects of entrepreneurial orientation on the relationship between foreignness and performance. Implications of the findings are discussed.     

Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets

Research on entrepreneurship has suggested entrepreneurial phenomena to take place in a wide variety of contexts that deal with new venture emergence. Opportunity discovery and effectuation are seen as the essence of entrepreneurship. The present study examines entrepreneurial behaviour in the organising of an international joint venture (IJV) in Polish transition markets. The paper aims to answer the following question: How is an international joint venture organised in turbulent context through opportunity-discovery and effectuation behaviours? Based on theoretical analysis and a longitudinal case study, we illustrate the organising of an international joint venture in transition markets through specific behaviours of opportunity discovery and effectuation. We show especially the relationship-based nature of all the behaviours. The study advances international entrepreneurship research by emphasising the intertwinedness of the entrepreneurial behaviours with the drastic developments in the transition markets and the evolution of the IJV partnership.     

When institutional change outruns the change agent: The contested terrain of entrepreneurial microfinance for those in poverty

We argue that institutional change moves through stages punctuated by recurring attempts to formally redefine the boundaries and logics of organizational fields that institutional entrepreneurs initially establish. With a grounded theory model, we demonstrate that institutional change in microfinance started with dominant development logic, shifted to market logic, and got stuck in a conflict over regulatory logic. We show how the role of the entrepreneur can change markedly over time while the institutional change process continues unabated. We present institutional entrepreneurship as an evolving phenomenon and suggest that the interplay between institutional entrepreneurs and established organizational fields is highly nuanced.     

Organizational social capital as a moderator for the effect of entrepreneurial orientation on competitive intelligence

Change force in entrepreneurial strategic posture navigates an organization toward market forces, especially competitive force, through which opportunities for its sustainable growth can be identified. One purpose of this study is thus to investigate the role of entrepreneurial orientation (EO) in cultivating competitive intelligence (CI). The study also seeks to establish the moderating role of organizational social capital (OSC) for the effect of EO on CI. Cross-sectional data from respondents from chemical companies in Vietnam business context were analyzed through hierarchical multiple regression. The study provided evidence on the predictive role of EO for CI. The two components of OSC – trust and goal congruence – were also found to play a moderating role for the EO–CI relationship.     

Organizational hybrids as biological hybrids: Insights for research on the relationship between social enterprise and the entrepreneurial ecosystem

Using the study of hybridization in evolutionary biology as metaphorical inspiration, I offer a thought experiment about the emergence and proliferation of social enterprise and the influence of hybrid organizing on the entrepreneurial ecosystem. After establishing a number of analogues between biological and organizational hybrids, I analyze the degree to which social enterprise may be indicative of hybrid speciation – i.e., a new organizational form – versus introgressive hybridization – i.e., a variant of a more traditional organizational form. I then use the metaphor to examine whether social enterprise: (1) possesses distinct rules and features, (2) is shaped by or shaping the entrepreneurial ecosystem, (3) still remains a hybrid organization, and (4) might even be considered an invasive species.     

Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character

Internationalization is an important entrepreneurial strategy for promoting the long-term growth and survivability of small and medium-sized enterprises (SMEs). Family involvement in top management teams (TMTs) can explain the heterogeneous behaviors of these firms’ international entrepreneurship process. This paper analyzes the moderating effects of the family’s influence on the relationship between entrepreneurial orientation and internationalization with two TMT diversities found only in family firms: the family TMT ratio and generational involvement. An analysis of 191 Spanish family SMEs indicated that entrepreneurial orientation plays a significant role in explaining the degree of internationalization in family firms and that a diversely formed TMT shapes this relationship. A high concentration of family members in managerial positions hinders the international entrepreneurship process. This fact highlights the importance of hiring non-family managers to promote internationalization. The results also reveal that involving multiple generations in decision-making hampers entrepreneurial internationalization, generating control and coordination problems.     

The cumulative nature of the entrepreneurial process: The contribution of human capital,planning and environment resources to small venture performance

The study is theoretically grounded in the resource-based view and applied to a service industry-tourism. It examined the performance of small ventures by utilizing an integrated dynamic model of entrepreneur choices and resource accumulation. Each phase in the process is added to previous one. Findings from 305 small tourism ventures revealed that the human capital of the entrepreneur, particularly managerial skills, were the greatest contributing factor to performance. This was followed by venture type. The study illustrates the unique nature of the entrepreneurial process among small ventures, often defined as “lifestyle businesses”.     

The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions for under-performing firms

Under-performing firms persist even though existing theoretical perspectives indicate that they should be selected out of the market. Building upon threshold theory [Gimeno, J., Folta, T., Cooper, A., Woo, C., 1997. Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly 42, 750–783.] and using Staw's [Staw, B.M., 1981. The escalation of commitment to a course of action. Academy of Management Review 6 (4), 577–587.] theoretical model of commitment to a course of action, we explore and test the factors that lead entrepreneurs to persist with under-performing firms. We found environmental munificence, personal investment, personal options, previous organizational success, and perceived collective efficacy impact the decision to persist with an under-performing firm. In addition, extrinsic motivation moderates those relationships. This research adds to the growing literature on highly persistent, under-performing firms and complements and extends threshold theory.     

Uncovering the value of planning in new venture creation: A process and contingency perspective

Researchers are engaged in a major debate on the value of business planning in new venture creation. This study suggests a potential resolution by applying a process and contingency perspective. The results indicate that planning is beneficial, yet planning processes need to be governed by different planning regimes depending on the type of founding environment. In highly dynamic environments, entrepreneurs will get most value from planning when they focus on select planning activities, and speed up the planning task. In less dynamic environments, they are better of pursuing a munificent approach to planning. The analysis thus reveals a major component of theorization on business planning that has been neglected in previous discussions. As for entrepreneurship teaching and practice, the findings suggest the importance of an adaptive, “toolkit” approach to business planning. Hypotheses were developed based on information-processing and decision-making theory and were tested with an ordered probit analysis on a sample of 100 start-ups backed by venture capital.     

Studying the level-effect in conjoint analysis: An application of efficient experimental designs for hyper-parameter estimation

Research in marketing, and business in general, involves understanding when effect-sizes are expected to be large and when they are expected to be small. An example is the understanding of the level-effect in marketing, where the effect of product attributes on utility is positively related to the number of levels present among choice alternatives. Knowing when consumers are sensitive to the competing levels of attributes is an important aspect of merchandising, selling and promotion. In this paper, we propose a model and a method for studying the level-effect in conjoint analysis. The model combines perceptual theories in psychology to arrive at a non-linear specification of hyper-parameters in a hierarchical model. The method applies an experimental design criterion for efficient estimation of hyper-parameters. The proposed model and method are validated using a national sample of respondents.      

A longitudinal analysis of the influence of career motivations on entrepreneurial intention and action

The impact of career motivations on entrepreneurial intention and action remains in need of being investigated conjointly. Using a large sample and follow‐up data collected five years later, we investigate their influence on the entrepreneurial involvement of young adults, from the expression of an intention to entrepreneurial action. We show that only the search for job security seems to have a persistent effect throughout the process. In addition, autonomy is associated with the formation of intention, while wanting to manage full processes is related to actual start‐up participation. We discuss the theoretical and practical implications. © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

The impact of social norms on entrepreneurial action: Evidence from the environmental entrepreneurship context

Using insights from institutional theory, sociology, and entrepreneurship we develop and test a model of the relationship between centralized and decentralized institutions on entrepreneurial activity. We suggest that both decentralized institutions that are socially determined as well as centralized institutions that are designed by governmental authorities are important in promoting firm foundings in the environmental context. In a sample of the U.S. solar energy sector we find that state-sponsored incentives, environmental consumption norms, and norms of family interdependence are related to new firm entry in this sector. Our findings also suggest that the efficacy of state-level policies in the sponsoring of entrepreneurial growth is dependent upon the social norms that prevail in the entrepreneur's environment. We expand entrepreneurship theory and the study of institutions and the natural environment by demonstrating the integral role that social norms play in influencing the creation of new firms and by illustrating the potential effect social norms have on the effect of policy that seeks to encourage environmentally responsible economic activity.