Entrepreneurs as prime targets: Insights from Mexican ventures on the link between venture visibility and crime of varying severity |
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| Institution: | 1. Department of Management and Entrepreneurship, Ivy College of Business, Iowa State University, United States of America;2. Division of Entrepreneurship and Economic Development, Michael F. Price College of Business, University of Oklahoma, United States of America;3. Department of Management, College of Business, Northern Illinois University, United States of America;4. Department of Entrepreneurship, Hankamer School of Business, Baylor University, United States of America;1. School of Economics and Management, Tongji University, China;2. School of Business and Management, Shanghai International Studies University, China;1. Rheinische Friedrich-Wilhelms-Universität Bonn, Transfer Center enaCom, Brühler Straße 7, 53119 Bonn, Germany;2. Professor of Entrepreneurship and Digital Business Models, Faculty of Law and Economics, University of Bayreuth, Universitätsstraße 30, 95447 Bayreuth, Germany;1. Department of Management, College of Business, University of Texas at Arlington, Arlington, TX 76019, United States;2. Center for Entrepreneurship, School of Marketing and Innovation, Muma College of Business, University of South Florida, Tampa, FL 33620, United States;3. Department of Management, Information Systems, and Entrepreneurship, Carson College of Business, Washington State University, Pullman, WA 99164, United States;4. Department of Management and Entrepreneurship, Debbie and Jerry Ivy College of Business, Iowa State University, Ames, IA 50011, United States;5. Department of Management, College of Business, Stony Brook University, Stony Brook, NY 11794, United States;1. Durham University, Business School, Durham, UK;2. University of Bath, School of Management, Bath, UK;1. University of Notre Dame, United States of America;2. Technical University of Munich, Germany |
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| Abstract: | This study addresses entrepreneurs as targets of crime. Leveraging insights from strategic responses to institutional pressures as the main theoretical frame, coupled with supporting insights from routine activities theory and interview data from 14 entrepreneurs who have been victims of crime, we introduce entrepreneur-led ventures becoming targets of crime via their engagement in routine activities that increase venture visibility. We then conceptualize that crime severity pushes entrepreneurs toward venture visibility-reduction responses, such as truncating growth, relocating, or discontinuing the venture. Survey data from 87,486 legally registered entrepreneur-led ventures in Mexico provide strong support for the relationships in our theoretical model. We find that as routine venture activities increase, entrepreneurs encounter crime of increasing severity, with the routine venture activity of making transactions at a bank serving as the strongest attractor of crime. Building on these findings, we observe an indirect effect through crime severity such that the choice to relocate the venture is the most likely response to being targeted by criminals. Our results advance the literature at the intersection of crime and entrepreneurship, especially in developing economies, and offers venture visibility as a mechanism that shapes both criminals' targeting of ventures and entrepreneurs' attempts to reduce being targeted. |
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