Entrepreneurial actions: implications for firm performance
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 21 June 2019
Issue publication date: 25 October 2019
Abstract
Purpose
The purpose of this paper is to investigate different types of investment actions undertaken by entrepreneurial firms to determine how these actions influence performance. Specifically, the effects of entrepreneurial action with regards to investments in human capital, the capabilities of the firm and the competitive dynamics of the business relative to other firms are examined. These actions are examined in conjunction with the offering of products, services or both, to determine the benefits of specific actions for firms.
Design/methodology/approach
The sample is taken from the confidential version of the Kauffman Firm Survey (KFS). The data are analyzed using a fixed effects model.
Findings
Results show that investment in human capital development actions and capability development actions improve firm performance. Further, investment in human capital development actions is shown to have the largest positive impact on the performance of firms that offer products only. Competitive positions actions have the greatest positive impact on firms that offer products and services.
Research limitations/implications
Results contribute to multiple theoretical lenses within the context of entrepreneurship and demonstrate applicability of theory related to entrepreneurial action to other established theories. Findings also demonstrate that different entrepreneurial actions benefit firms that offer products or services in different ways. Limitations of the study are those associated with survey research generally, such as self-reported measures, non-response bias and the KFS specifically such as survivorship bias and variance in survey items across years.
Originality/value
The consideration of firms whose primary focus is the selling of products compared to services and how they moderate specific actions is novel and valuable. Theoretical development tying human capital, competitive dynamics and dynamic capabilities to entrepreneurial action creates new avenues for inquiry.
Keywords
Citation
Sproul, C., Cox, K. and Ross, A. (2019), "Entrepreneurial actions: implications for firm performance", Journal of Small Business and Enterprise Development, Vol. 26 No. 5, pp. 706-725. https://doi.org/10.1108/JSBED-08-2018-0258
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited