To read the full version of this content please select one of the options below:

The impact of founder’s regulatory focus on the process of firm birth and firm abandonment

Paris Koumbarakis (Swiss Research Institute of Small Business and Entrepreneurship, University of St. Gallen, KMU‐HSG, Sankt Gallen, Switzerland)
Heiko Bergmann (Swiss Research Institute of Small Business and Entrepreneurship, University of St. Gallen, KMU‐HSG, Sankt Gallen, Switzerland)
Thierry Volery (Zurich University of Applied Sciences, Winterthur, Switzerland) (Department of Marketing, University of Western Australia, Perth, Australia)

Management Decision

ISSN: 0025-1747

Article publication date: 17 October 2020

Issue publication date: 20 May 2021

260

Abstract

Purpose

The purpose of this paper is to show how self-regulation influences the relationship between nascent entrepreneurial exploitation activities, firm birth and firm abandonment.

Design/methodology/approach

This study draws from a unique longitudinal dataset of 181 nascent entrepreneurs from Switzerland who have been interviewed by phone in 2015 and 2016. It uses a moderated binary logistic regression to test the hypotheses.

Findings

This study provides evidence that discrepancies in promotion orientation can explain different ways exploitation can lead to an increased likelihood of firm birth and a decreased likelihood of firm abandonment while respectively increasing persistence. Findings suggest that this is attributed to the regulatory fit between a promotion orientation and exploitation activities.

Research limitations/implications

For scholars, our findings provide insights into reasons for entrepreneurial persistence, as well as how firm birth can be achieved with different levels of exploitation activities.

Practical implications

This study provides entrepreneurs with information on how to increase their persistence as well as the likelihood of firm birth while considering their regulatory focus.

Originality/value

Based on regulatory focus theory, this paper highlights different paths to firm birth with varying quantity of exploitation activities. We contribute to a greater understanding of firm emergence by accounting for the impact of regulatory foci.

Keywords

Acknowledgements

The data collection of the Swiss Panel of Emerging Businesses (SwissPEB) was financed by the Basic Research Fund (GFF) of the University of St. Gallen and the Swiss Research Institute of Small Business and Entrepreneurship (KMU-HSG).

Citation

Koumbarakis, P., Bergmann, H. and Volery, T. (2021), "The impact of founder’s regulatory focus on the process of firm birth and firm abandonment", Management Decision, Vol. 59 No. 5, pp. 919-937. https://doi.org/10.1108/MD-10-2019-1415

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles