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.     

Emotional arousal and entrepreneurial outcomes: Combining qualitative methods to elaborate theory

This qualitative study of innovators in the superyacht industry blends longitudinal content analysis with narrative case vignettes to extend nascent theorizing about the antecedents and consequences associated with the arousal of entrepreneurial emotion. The empirically grounded framework induced through our research offers two key theoretical elaborations. First, it extends the existing set of theorized antecedents by highlighting the overlooked roles played by dramatic performances (staged or improvised) and ambient conditions (project, actor and venue considerations). Second, it calls attention to the consequences of emotional arousal for such entrepreneurial outcomes as generating novel solutions to specific problems encountered during the creation process, developing innovative end products, and fostering a general context for innovation.     

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.     

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.     

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.     

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.     

Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures

There exists a need to further examine capabilities that enable emerging market international new ventures (INVs) to create innovation offerings that drive performance. Although conceptual studies highlight the importance of reconfiguration capability towards innovation and performance, such relationships in the emerging market INV context require further empirical analysis. Moreover, there is a conflict in the literature as to whether reconfiguration capability supports innovation and performance directly or indirectly. As the pursuit of opportunities beyond domestic borders is central to INV research, opportunity creation is a key inquiry to advance our understanding of how reconfiguration capability facilitates innovation and performance in the emerging market INV context. Drawing on dynamic capabilities theory and creation theory, we empirically examine the interplay between reconfiguration capability, opportunity creation, innovation, and international performance. In addition, we study opportunity creation as a mediator between reconfiguration capability towards innovation and performance, respectively. The findings reveal reconfiguration capability does not directly support innovation but does shape innovation through opportunity creation. Reconfiguration capability directly supports performance objectives of emerging market INVs, and indirectly through opportunity creation.     

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.     

Feeling capable and valued: A prosocial perspective on the link between empathy and social entrepreneurial intentions

Empathy is a key trait distinguishing social entrepreneurs from traditional entrepreneurs, and an important antecedent of social entrepreneurial (SE) intentions. Yet, little research explains the mechanisms through which empathy motivates SE intentions. We argue that studying the link between the prosocial trait of empathy and the prosocial outcome of SE intentions requires a prosocial lens that traditional entrepreneurial intent theories cannot offer. Building on prosocial motives research, we propose that empathy explains SE intentions through two complementary mechanisms: self-efficacy (an agentic mechanism), and social worth (a communal mechanism). We find support for our hypotheses in a study of 281 university students.     

Understanding the interaction of motivation and opportunity for tax planning inside US multinationals: A qualitative study

We explore the internal workings of tax planning within US multinational enterprises (MNEs) using a qualitative research method. We conduct a series of interviews with senior tax executives, which we supplement with other public information. We find that US MNEs adopt a heterogenous range of approaches driven by the motivations as well as the opportunities to reduce their tax bill legally. We develop a new theoretical framework that analyses the interactions of motivations and opportunities in MNEs’ tax planning strategy. We generate four typologies of corporate tax payers. Our study provides new insights detailing why and how companies plan their tax.     

Swinging a double-edged sword: The effect of slack on entrepreneurial management and growth

Resource slack represents a double-edged sword, simultaneously fueling and hindering growth. Drawing on Penrose's growth theory and Stevenson's entrepreneurial management theory, we have developed and tested a conceptual model that provides a more nuanced account of the resource slack-growth relationship. Using a large dataset spanning six years, we have found that slack has a positive direct effect on growth but a negative effect on entrepreneurial management, and that entrepreneurial management has a positive effect on growth. Our empirical and conceptual findings are important to the development of firm growth theory and explicate causal mechanisms transforming slack into firm-level outcomes.     

Making it personal: Opportunity individuation and the shaping of opportunity beliefs

We develop a model that focuses on the individuation of opportunity beliefs. We adopt inferences from the ecology literature and integrate those with mental model theory to examine the ‘individuation’ of opportunity as the result of the interplay between industry conditions and person-specific factors. We test our predictions using conjoint analysis of 2880 opportunity decisions. We find that an entrepreneur's related knowledge, motivation to evaluate the opportunity, prior failure, and fear of failure shape perceptions of opportunity attractiveness as one individuates exogenous opportunity information. We articulate our findings as evidence that when combined with opportunity related data, an individual's cognitive resources play an important role as one forms opportunity beliefs about the personal attractiveness of pursing an opportunity.     

Building entrepreneurial tie portfolios through strategic homophily: The role of narrative identity work in venture creation and early growth

In this article, we present the results of a case study of an entrepreneur who successfully founded and grew a venture underpinned by a portfolio of strongly homophilous, dyadic ties. Building on our case, we discuss how the entrepreneur strategically constructed these ties through a form of narrative identity work, explore the shared identity narratives that he used to do so, and highlight the heterogeneous nature of the resulting tie portfolio. We go on to explore the factors that motivated the entrepreneur to purposefully construct an entrepreneurial tie portfolio in this way. Building on our findings, we discuss the nature of narrative identity work and its role in creating homophilous ties, explore the connection between the resulting shared identity narratives and trust, and discuss the central role of values in strategic homophily.     

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.     

Entrepreneurial narrative and a science of the imagination

This article is an introduction to a special issue on entrepreneurial narrative that provides theoretical and empirical links between scholarship in narrative and entrepreneurship as well as demonstrates how theories and methods in narrative may be applied to the study of entrepreneurship as a phenomenon. A conjecture that narrative perspectives might lead to a “science of the imagination” is offered.     

SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations

New and small firms operating in the high-tech environments need strong entrepreneurial (EO) and learning (LO) orientations to enhance international growth. Yet, the relationship between these two key strategic dimensions and foreign growth can be contingent to the entrepreneur’s individual characteristics. Bringing together elements from strategic management, organization and entrepreneurship literatures, we employ a dynamic temporal perspective considering two levels of analysis, the firm and the entrepreneur, and we apply a fixed effects pooled time-series regression on a sample of 170 firms in two periods of time (2005 and 2015). Our findings indicate that SMEs that possess greater EO and LO have higher international growth. However, previous entrepreneurial and industry-specific managerial experience of the founder/CEO positively exert their effect on these relationships. Our results have important theoretical and practical implications for entrepreneurs and policy makers operating in highly innovative sectors.     

Opportunities and institutions: A co-creation story of the king crab industry

If entrepreneurs are constrained and shaped by existing institutions, how? If entrepreneurs products and services, how can institutions remain unchanged? This paper explores this theoretical conundrum empirically through the examination of the actions of entrepreneur Lowell Wakefield. Contrary to previous work that suggests that it is institutional entrepreneurs that bring about institutional change as a means of advancing their social interests, this paper shows that a profit-seeking entrepreneur without prior institutional affiliation or experience can create an opportunity along with the supporting industry standards and regulations.     

The effects of entrepreneurial orientation and marketing information on the performance of SMEs

In this study, we investigate the effects of entrepreneurial orientation and marketing information on the performance of small and medium-sized enterprises. We build and test a causal model using data obtained from Singaporean entrepreneurs and find support for most of our hypotheses. The results indicate that entrepreneurial orientation plays an influential role on the acquisition and utilization of marketing information, and also has a direct effect on firm performance. The utilization of information regarding marketing mix decisions (particularly the Promotion and Place elements) positively affects firm performance, and it partially mediates the relationship between entrepreneurial orientation and firm performance. The implications and future research directions are discussed.     

The impact of industry-wide and target market environmental hostility on entrepreneurial leadership in mergers and acquisitions

Based on survey data from 115 acquisitions completed between 2008 and 2011 by European acquirers from German-speaking countries, we find evidence that entrepreneurial leadership is a strong predictor of exploration and a weaker but significant driver of exploitation outcomes following M&A. Industry-wide environmental hostility negatively impacts the influence of entrepreneurial leadership on exploitation. Target market environmental hostility negatively impacts the influence of entrepreneurial leadership on exploration. Thus, while entrepreneurial leadership is a key success factor of M&A performance by increasing both, post-merger exploration and exploitation, acquirers need to take environmental conditions at the industry and market level into account.