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Entrepreneurial knowledge and start-up behavior in a turbulent environment

Muhammad Yasir (Department of Management Sciences, Hazara University, Mansehra, Pakistan)
Abdul Majid (Department of Management Sciences, Hazara University, Mansehra, Pakistan)
Muhammad Yasir (Department of Management Sciences, Hazara University, Mansehra, Pakistan)

Journal of Management Development

ISSN: 0262-1711

Article publication date: 9 October 2017

1075

Abstract

Purpose

The purpose of this paper is to refine the relationship between environmental turbulence and start-up behavior by considering entrepreneurial-related antecedents (alertness to business ideas, entrepreneurial opportunities, and intention toward entrepreneurship) and moderating roles of entrepreneurial knowledge.

Design/methodology/approach

The study was conducted through a self-administered survey of owner/managers of SMEs in Pakistan. Correlation, moderated hierarchical regression, and structural equation modeling approach were used for the analysis.

Findings

The results revealed that environmental turbulence positively affects the alertness to business ideas and entrepreneurial opportunities which, in turn, affect intention toward entrepreneurship. The results also suggested that entrepreneurial knowledge significantly moderates the relationship between intention toward entrepreneurship and start-up behavior.

Research limitations/implications

The changes in the market and technologies which shape the entrepreneurial behavior toward start-up activities should be longitudinally observed. The research data came from the owner/managers of SMEs industries; therefore, the findings may not be generalized to other sectors due to industry-specific difference.

Practical implications

The positive impact of environmental turbulence suggests that turbulence is a presentiment signal, calling upon the entrepreneurs to collect meaningful information as well as identify new opportunities and adjust their capabilities for any challenges and changes ahead.

Originality/value

The study confirmed the positive impact of environmental turbulence toward the creation of new ventures in the context of developing economies as well as the moderating role of entrepreneurial knowledge on the relationship between intention toward entrepreneurship and start-up behavior in small and medium enterprises.

Keywords

Citation

Yasir, M., Majid, A. and Yasir, M. (2017), "Entrepreneurial knowledge and start-up behavior in a turbulent environment", Journal of Management Development, Vol. 36 No. 9, pp. 1149-1159. https://doi.org/10.1108/JMD-10-2016-0193

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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