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.

     

Expertise,university infrastructure and approaches to new venture creation: assessing students who start businesses

Abstract

Within the broader literature on contextual determinants of effectual and causal cognitive logics, the paper explores the drivers of causal and effectual reasoning in student-founders of new ventures, particularly focusing on the role of university entrepreneurship-related offerings and student prior business experience. Using the Global University Entrepreneurial Spirit Students’ Survey (GUESSS), the study involves a sample of 2179 student entrepreneurs from 26 countries. Our findings indicate that university entrepreneurship-related offerings such as curricular programming, co-curricular activities, and financial support play a differentiating role in the proclivity towards causal or effectual approaches across the groups of experienced and inexperienced student entrepreneurs. We also provide evidence that effectuation and causation are not mutually exclusive constructs: they are intertwined and can unfold simultaneously.     

Keys to success in investment rounds by immigrant entrepreneurs in Silicon Valley

This study presents an updated diagnosis of the SV ecosystem itself and offers an insight into the entrepreneurial mobility trends prospects and expectations of the growing number of start-ups launched by immigrant entrepreneurs arriving in SV. The purpose is to determine and rank the attributes most valued by investors when assessing projects and start-ups founded by immigrant entrepreneurs. The model of analysis composed by three hypotheses leads to a series of findings about the profile and expectations of the immigrant entrepreneurs, and reveals remarkable hints and key targets to be met by immigrant entrepreneurs in SV in order to successfully close investment rounds in a hypercompetitive environment. The study discloses the low impact of the founder’s profile as a driver of external investment. A key conclusion states that Venture Capitalists and Business Angels in the top-ranked entrepreneurial ecosystem are primarily led by factors linked to the competitive environment and the product development process, along with the traditional performance indicators: revenue and profitability.

     

Passion Isn't Always a Good Thing: Examining Entrepreneurs' Network Centrality and Financial Performance with a Dualistic Model of Passion

We propose a conceptual model that links entrepreneurs' passion, network centrality, and financial performance, and test this model with small business managers in formal business networking groups. Drawing on the dualistic model of passion, we explore the relationships that harmonious and obsessive passion have with financial performance, mediated by network centrality. Results indicate that harmoniously passionate entrepreneurs had higher out‐degree centrality in their networking group (i.e., they were more inclined to seek out members to discuss work issues), which increased the income they received from peer referrals and, ultimately, business income. Obsessively passionate entrepreneurs had lower in‐degree centrality (i.e., they were less likely to be approached by peers), and in turn received less income from referrals and less business income. These findings highlight that entrepreneurial passion does not always result in positive financial outcomes – the type of passion makes a difference. Implications for research and practice are discussed.     

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.     

Exploring the role of original aspiration in effectuation tendency

International Entrepreneurship and Management Journal - In this research, we tackle a critical yet less explored factor that affects entrepreneurs’ effectuation logic, the original...     

Driving factors for eco-innovation orientation: meeting sustainable growth in Tunisian agribusiness

The agricultural and agri-food sectors have substantial environmental impacts due to the great volumes of food, energy, water, and packaging waste that these businesses generate. Eco-innovations present an important opportunity to mitigate this effect. Even though eco-innovation seeks to reduce environmental damage in the food and agri-food sectors, researchers have paid slight attention to the role of eco-innovation in agribusiness; however, several insights suggest that it would be worthwhile to examine the motivation drivers toward the adoption of eco-innovations. The current study sheds light on the driving forces of eco-innovation and its impact on sustainable business growth. This paper tests a set of hypothesized relationships that focus on a sample of 306 Tunisian enterprises. We harness structural equation modelling to examine the relationship between the driving factors of eco-innovation and enterprises’ sustainable business growth by analysing the eco-innovation strategy's mediating effects. The findings reveal: (1) regulatory-side drivers constitute the most influential factor that motivates entrepreneurs to adopt an eco-innovation strategy, (2) there is a positive relationship between eco-innovation strategy and enterprises’ sustainable business growth, and (3) eco-innovation strategy plays a fully mediating role between the driving factors and enterprises’ sustainable business growth. The present study led us to consider that an entrepreneur with an emotional attachment to the environment is designed as a decisive driver for eco-innovation.

     

The price of success: balancing the effects of entrepreneurial commitment,work-family conflict and emotional exhaustion on job satisfaction

This research explores job satisfaction among entrepreneurs to investigate two paths from entrepreneurial commitment to job satisfaction: the direct path and the family path that includes work-family conflict and emotional exhaustion. An empirical study of 232 small and micro firm business owners are used to test the hypotheses seeking to understand which path to job satisfaction has the greatest influence. The results indicate that although being committed to one’s own business increases job satisfaction, emotional exhaustion takes a greater toll. We conclude that negative aspects of entrepreneurship exert an important influence on entrepreneurs’ satisfaction with their job. These findings offer important theoretical and practical implications.

     

Migrant human and political capitals value in entrepreneur enterprise performance. A comparative study of four emerging markets

This paper investigates the impact of human and political capitals of entrepreneurs on enterprise performance in four emerging nations.The rent generation potential of these capitals is a well established fact, however, much less is known concerning the contingent nature of their value creation prowess. In this work, we draw on institutional theory and dynamic managerial capabilities perspective to examine the interactive effect of country of origin economic developement level and the international experience of entrepreurs, on the capitals, with respect to a set of financial indicators. Employing a quantitative methodology, our findings reveal that the relationship between the capitals and enterprise performance are indeeed contingent with the capitals of home-grown entrepreneurs, rather than those of returnee migrant entrepreneurs, exhibiting a greater propensity to influence enterprise performance. We conclude with implications for theory and practice.

     

Do entrepreneurs from institutionally distinct countries apply different decision logic when internationalizing their companies? A multiple-case analysis

Literature on entrepreneurs’ decision logic has either focused on effectuation or causation, lacking comparison and analysis of logics when founders come from different institutional environments. This paper presents an exploratory study examining the behaviors, beliefs, and decisions of entrepreneurs (all typical drivers for new market entries), considering those institutional differences. Research was based on the comparison of two case studies of young software companies, one from Brazil and one from Germany, each founded by two entrepreneurs with similar academic and professional backgrounds. Results indicate that apparently, business environment affects founders’ decision logics with much more strength than the institutional environment.     

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.     

Entrepreneurial metacognition: a study on nascent entrepreneurs

This paper contributes to uncovering the role of metacognition in the decision-making process of entrepreneurs. Specifically, we analyze nascent entrepreneurs in their process of start-up development while relying on metacognitive processes. The experiences of a sample of new venture initiatives are explored in two distinct phases, a start-up competition and the subsequent launch of their venture. Following the Gioia protocol, the study contextualizes the process in which social capital reinforces metacognitive processes. This process stimulates nascent entrepreneurs to consider alternatives, such as extending expertise outside the start-up. Moreover, we find that these processes support entrepreneurs and their teams in improving their decision-making processes. The findings support that nascent entrepreneurs rely heavily on the input of others in their start-up creation process, and contribute to new empirical insights about entrepreneurial metacognition. A dynamic model in which these relationships emerge is developed. The study’s results contribute to a better understanding of the antecedents and consequences of metacognitive processes in nascent entrepreneurship.

     

Improvised internationalization in new ventures: The role of prior knowledge and networks

How do entrepreneurs identify foreign market opportunities and how do they identify foreign market(s) and customers? We draw on the concepts of effectuation, improvisation, prior knowledge and networks to study the early internationalization of new ventures operating in the Irish Shellfish sector. We argue that the internationalization process was strongly influenced by two ‘resources to hand’: the entrepreneurs’ idiosyncratic prior knowledge and their prior social and business ties. We observe an effectuation logic and extensive improvisation in the internationalization process of these new ventures.     

Effectual entrepreneuring: sensemaking in a family-based start-up

Abstract

In this paper we examine the microprocesses associated with a successful business established by two young brothers (16 and 18). The study is informed by recent processual approaches to entrepreneurship associated with effectuation theory and sensemaking. We also draw on literature related to personal dispositions, which are the basis of habitual behaviours. The empirical data are drawn from a longitudinal study of an unconventional family business which was created by the two brothers while still at school. Opportunities were created, rather than discovered, by optimizing limited familial resources during the early stages of start-up. We expand effectuation theory by demonstrating the role of sensemaking (enactment, selection and retention), familial influences on dispositions (habits, heuristics and routines) and experiential learning during the first three years of operation.     

Necessity entrepreneurship in Latin America: it´s not that simple

ABSTRACT

Entrepreneurship literature takes for granted the motivation dichotomy; however, this simplistic view have been criticised for several studies because it likely does an injustice to entrepreneurs, particularly Latin America (LA) entrepreneurs. This study seeks to contribute to the body of knowledge on entrepreneurs to better explain the process of entrepreneurs being motivated by necessity. We use the Global Entrepreneurship Monitor (GEM) database for LA countries and develop an econometric model based on a set of variables, including contextual variables. First, we identify three types of entrepreneurial motivation: necessity, opportunity and transition. We then demonstrate that the motivation dichotomy does not represent LA entrepreneurship. Second, we find that necessity-driven entrepreneurship does not necessarily indicate the absence of high growth aspirations because some entrepreneurs in this category have such aspirations. Third, we observe that significant differences exist among entrepreneurs based on context, specifically among necessity-driven entrepreneurs. These findings have practical implications for research on entrepreneurship and for regional development.     

Who am I? The influence of social identification on academic entrepreneurs’ role conflict

Academic entrepreneurs are the key actors in academic entrepreneurship. However, the individual level of research on academic entrepreneurship remains undeveloped. To better understand the micro foundation of academic entrepreneurship, we investigate the influence of social identification on academic entrepreneurs’ role conflict. Using data from 246 academic entrepreneurs, we explore the effects of scholarly identification, entrepreneurial identification, and social identity continuity on academic entrepreneurs’ role conflict. The results suggest that, entrepreneurial identification and social identify continuity are both negative related to identify conflict, while a scholarly identification is positively related to role conflict. In addition, the interaction of scholarly identification and entrepreneurial identification is negatively associated with role conflict. We also investigate the performance implications of such a role conflict and show that it is negatively related to academic entrepreneurship performance. We discuss the theoretical and practical implications of these findings.

     

The influence of entrepreneurs’ immigrant status and time on the perceived likelihood of exporting

We contribute in this paper to the scant literature on the factors and conditions influencing the development of different perceptions of potential international opportunities for immigrant and native entrepreneurs in the pre-internationalization phase. Specifically, we investigate what factors influence the perceived likelihood entrepreneurs have of exporting. Building on entrepreneurial intentions and opportunity-based entrepreneurial processes, we propose a cognitive account of perceived likelihood of exporting based on entrepreneurs’ perceptions of the desirability and feasibility of export opportunities. We investigate how the immigrant status (i.e., individual characteristics) and time (i.e., contextual factors) influence the relationship between the desirability and feasibility of exporting, and entrepreneurs’ perceived likelihood of exporting. We employ an experimental design on a matched-pair sample of 108 native and immigrant entrepreneurs in domestic technology-based firms. The results are a unique account of the cognitive antecedents of the perceived likelihood of exporting under different temporal conditions, comparing immigrant and native entrepreneurs. We discuss theoretical and practical implications.

     

Social entrepreneurs: making sense of tensions through the application of alternative strategies of hybrid organizations

Through the use of qualitative analysis, this paper examines the diverse tensions that social entrepreneurs have to deal with in their daily business activity. By using paradox theory and the hybrid organization model as a framework for analysis, we have found three principle causes of tension among social entrepreneurs: social vs economic sustainability; work vs family life; and resistance to change vs innovation. The results show the way in which social entrepreneurs in hybrid organizations resolve these conflicting tensions, usually through a selective coupling strategy, which is eventually complemented with alternative approaches such as compromising or decoupling. Social entrepreneurs tend to focus on one aspect of the tension and deal with it individually, which makes it more manageable. Change and innovation are the triggers for using strategies other than selective coupling, such as compromising or decoupling. When the level of tension rises further, compromising is then used. Decoupling is the last option chosen by social entrepreneurs, and is used only in cases where resolution is not possible with the other two strategies mentioned.

     

When Passion Fades: Disentangling the Temporal Dynamics of Entrepreneurial Passion for Founding

This study examines how and why entrepreneurial passion for founding changes over time. In particular, we propose that in the founding phase of a venture's lifecycle entrepreneurs’ founding identity centrality will remain stable over time. We also propose, however, that in our sample and time period studied, entrepreneurs’ intense positive feelings for founding will decrease over time. On the basis of theories of positive illusion, self‐regulation and role theory, we further hypothesize that venture idea change, change in role ambiguity and entrepreneurs’ feedback‐seeking behaviour are factors that help explain the rate of change in entrepreneurs’ intense positive feelings for founding. Using a three‐wave longitudinal research design, we find that among a sample of 112 entrepreneurs’ identity centrality does not change over time, whereas intense positive feelings for founding decrease over time. Moreover, the more entrepreneurs change their venture ideas, the weaker their decrease in intense positive feelings. Further, we show that entrepreneurs who frequently seek feedback suffer less from reduced positive feelings in response to higher increases in role ambiguity as compared to entrepreneurs who seek less feedback.     

Immigrants` Entrepreneurial Networks and Export: A Comparative Study

The aim of this study is to examine the differential impacts of networking in the public and private spheres on the export performance of first- and second-generation immigrant entrepreneurs, as well as native-born entrepreneurs. We apply transnational and ethnic theories to elaborate hypotheses using data collected by the Global Entrepreneurship Monitor on 26,591 native-born entrepreneurs, first-generation immigrant entrepreneurs, and second-generation immigrant entrepreneurs. In examining this fairly global representation of entrepreneurs, we found that such networking had a significant impact on the exporting of second-generation immigrant entrepreneurs. More specifically, we show that although they benefited the least from private-sphere networking, compared to first-generation immigrant and native-born entrepreneurs, they derived more benefits from public-sphere networking than the other two groups. This study contributes to the theory in this field by accounting for the skewness of dual-embeddedness among immigrant entrepreneurs and its effect upon networking and export performance.