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Book part
Publication date: 22 September 2022

David R. Clough and Balagopal Vissa

We advance entrepreneurship research by developing a theoretical model of how founding teams form. Our neo-Carnegie model situates nascent founders in particular

Abstract

We advance entrepreneurship research by developing a theoretical model of how founding teams form. Our neo-Carnegie model situates nascent founders in particular network-structural milieus, engaging in aspiration-driven search for and evaluation of prospective co-founders. The formation of co-founding ties between nascent founders can be divided into four theoretical steps, which we label activation, evaluation, approach, and reciprocation. Successful founding team formation is a consequence of mutually favorable evaluations by nascent founders in a multi-sided matching process. Nascent founders with higher and less flexible aspirations are more likely to undertake distant search for co-founders by seeking referrals, forming ties with strangers, and forming new ties to social foci where they might meet potential co-founders. Churn in newly formed founding teams emerges as a consequence of shifting dominant coalition dynamics in the founding team caused by organic venture evolution and intentional changes in strategic direction. Our theoretical model provides new insights on the formation pathways of founding teams, their initial task and relational resource endowments, and initial team dynamics.

Details

Entrepreneurialism and Society: Consequences and Meanings
Type: Book
ISBN: 978-1-80382-662-2

Keywords

Open Access
Article
Publication date: 2 August 2022

Lucia Walsh and Thomas Cooney

All entrepreneurs face challenges during their venture start-up process, but immigrant entrepreneurs face additional and distinctive challenges due to their contextual…

Abstract

Purpose

All entrepreneurs face challenges during their venture start-up process, but immigrant entrepreneurs face additional and distinctive challenges due to their contextual newness. This paper focuses on understanding the intertwined journeys of nascent entrepreneurship and cross-cultural adaptation of immigrants in a small Western European country where immigrant entrepreneurship is still a relatively new phenomenon.

Design/methodology/approach

The induction-driven, 18-month longitudinal empirical inquiry focused on six early-stage nascent entrepreneurs. Qualitative methods included participant observation during an enterprise program, qualitative interviews and ongoing informal communication.

Findings

The data uncovered the interplay between the nascent immigrant entrepreneurship and cross-cultural adaptation. This led to the development of a novel conceptual framework which highlights how the cross-cultural adaptation domain links with the process of recognition, evaluation and exploitation of entrepreneurial opportunities by immigrant entrepreneurs. While varying temporarily and contextually, cross-cultural adaptation was found to create both enabling and constraining tensions within the nascent entrepreneurial experiences of immigrants.

Research limitations/implications

It is recognized that undertaking just six cases may present a significant limitation of the research, but a close examination of even one individual's lived experience can yield valuable insights. It is hoped that future work will test the highlighted research propositions and other findings in different empirical contexts, and so add to the emerging conceptual framework on nascent immigrant entrepreneurship within the context of cross-cultural adaptation.

Originality/value

No previous qualitative studies have been undertaken seeking to understand how cross-cultural adaptation interacts with the early stages of nascent immigrant entrepreneurial activity. By integrating new venture creation and cross-cultural adaptation theories, this research contributes to the conceptualisation of early stages of nascent entrepreneurial activities of immigrants in a new host environment. The implications of the research are also relevant to enterprise support bodies, policymakers and practitioners who support immigrant entrepreneurship.

Details

Journal of Small Business and Enterprise Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 18 July 2006

Mikael Samuelsson

How general can a “general” theory of entrepreneurship be? Abstraction is a necessity but is it possible to include venture opportunity variation in a general theory of…

Abstract

How general can a “general” theory of entrepreneurship be? Abstraction is a necessity but is it possible to include venture opportunity variation in a general theory of entrepreneurship building on two contrasting perspectives such as equilibrium economics and disequilibrium economics. Two important boundaries need to be explicated. First, defining entrepreneurship as the creation of new economic activity includes both the creation of new means – ends (cf. Schumpeter, 1934) – as well as optimizing within known means – ends frameworks (cf. Kirzner, 1997). Second, such a theory includes an opportunity – actor nexus because it is the first tangible or intangible evidence of existing venture opportunities. Formal models of entrepreneurship often start with a person and at some point in time an exchange of persons with firms take place which is confusing because both levels of analysis and outcome are mixed with each other. Apparently, there is no such thing as entrepreneurship without actors, but if we want to create knowledge about the creation of economic activity, we need to frame our boundary around the nascent initiative instead of single actors and/or teams of actors because value can only be assessed in relation to the costs of services withdrawn. Analogous to this is, for example, the theory of firm and the theory of organizations with boundaries well beyond single actors or groups of actors. Another factor behind a venture-based theory of entrepreneurship comes from empirical evidence from the Swedish PSED, which suggests that approximately 16% (n=97) nascent entrepreneurs are exchanged during the start-up process. Formal models of entrepreneurship could therefore start with the nexus of venture opportunities and enterprising actors as suggested by Shane (2003) or with resources as suggested by Davidsson (2000) and progress forward in the entrepreneurial process. Entrepreneurship models built around the economic activity itself needs to be dynamic allowing different outcomes and feedback loops because resource combinations alter our perception of value and diffuses information, which may lead to additional resource combinations (Hayek, 1945).

Details

Entrepreneurship: Frameworks And Empirical Investigations From Forthcoming Leaders Of European Research
Type: Book
ISBN: 978-1-84950-428-7

Article
Publication date: 15 June 2021

Jan P. Warhuus, Casey J. Frid and William B. Gartner

This study offers empirical evidence from a nationally representative panel dataset of nascent entrepreneurs (PSED-II) regarding when external financing is acquired and…

Abstract

Purpose

This study offers empirical evidence from a nationally representative panel dataset of nascent entrepreneurs (PSED-II) regarding when external financing is acquired and how certain factors affect this timing during the cumulative process of nascent entrepreneurs taking actions toward establishing an operational entity. By assessing the relationship between the external financing event and the cumulative set of actions that nascent entrepreneurs undertake to create new businesses, we improve our understanding of how the timing of acquiring external financing affects organizational survival and growth.

Design/methodology/approach

We apply nonparametric and semiparametric survival analysis techniques to a nationally representative panel dataset of nascent entrepreneurs. This ascertains the probability of an external financing event at any given moment in time and a set of startup conditions that we hypothesize will affect this timing. First, we use Kaplan–Meier analysis to explore when external financing occurs during new business creation. We then use discrete-time survival analysis to investigate whether certain startup conditions affect when external financing occurs. Finally, we conduct a test of independence to examine the external financing event relative to other startup activities completed during new business creation.

Findings

Nascent entrepreneurs tend to acquire external funding relatively late in the new venture startup process – on average, about two-thirds of the way from conceiving of the idea and becoming operational. They tend to take actions that are less resource-demanding early in the startup process to build their organizations to a fundable stage. Net worth tends to speed up the acquisition of external funding as wealthy entrepreneurs tend to ask for funding earlier in the process. Finally, entrepreneurs in capital-intensive industries do not seem to get outside funding before entrepreneurs in other industries.

Originality/value

This study is unique in three ways. First, we investigate the timing of the highly important external financing event. Timing is critical in unpacking and making sense of the very early stages of a new business and in guiding entrepreneurs and students about when to do what. Second, we do so in a subsample of preoperational, nascent, funded entrepreneurs derived from a nationally representative panel dataset of startup attempts. Third, our findings provide a counter-intuitive yet systematic understanding of organizational emergence and very early-stage financing.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 6
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 24 May 2021

Matthew Jenkins and Mary Holcomb

The purpose of this paper is to empirically investigate the activities that nascent firms undertake to improve customer attractiveness and gain collaborative commitment…

Abstract

Purpose

The purpose of this paper is to empirically investigate the activities that nascent firms undertake to improve customer attractiveness and gain collaborative commitment from strategic suppliers.

Design/methodology/approach

Data from a grounded theory study consisting of 26 participants from 15 firms and a review of extant literature were used to develop a theoretical model that explains how a nascent firm increases its customer attractiveness to elicit commitment and collaboration from strategic suppliers.

Findings

The authors find that social capital, born of close social ties and social history, enhances the effectiveness of a nascent firm's relationship-building practices. This counteracts a supplier's collaborative risk and consequently increases the nascent firm's customer attractiveness, thus enabling it to obtain strategic supplier collaborative commitment.

Practical implications

This research helps managers by providing direction on what practices nascent firms pursue to gain strategic supplier resources and collaboration. Given the reality of resource constraints in nascent firms, it is suggested that this insight is essential to obtaining crucial external resources needed to survive and grow.

Originality/value

Extant research on buyer–supplier collaboration is mostly confined to the context of mature firms and does not account for the unique inter-organizational relational challenges faced by nascent firms. This research uncovers the idiosyncrasies of supplier management in nascent firms, and elucidates on the actions that nascent firm managers take to gain supplier collaborative commitment.

Details

The International Journal of Logistics Management, vol. 32 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 8 June 2021

Laetitia Gabay-Mariani and Jean-Pierre Boissin

In line with an emerging body of literature questioning student entrepreneurs’ practices, and recent calls to bridge the intention-action gap, this contribution aims to…

Abstract

Purpose

In line with an emerging body of literature questioning student entrepreneurs’ practices, and recent calls to bridge the intention-action gap, this contribution aims to identify profiles of commitment among nascent entrepreneurs, and their relationship with the performance of entrepreneurial behaviors.

Design/methodology/approach

Relying on Meyer and Allen's multidimensional model, the authors build an empirical taxonomy regarding affective and instrumental forms of commitment experienced by nascent entrepreneurs (n = 328) operating within French higher education.

Findings

The authors identify three commitment profiles – weak, affective and total – associated with distinct levels of advancement and investment in the entrepreneurial process. This analysis leads them to map out the entrepreneurial process followed by nascent entrepreneurs with three main thresholds: the initial threshold, the resonance threshold and the irreversibility threshold.

Research limitations/implications

The work contributes to an emerging field of research dedicated to student entrepreneurship. It highlights the existence of different trajectories among nascent entrepreneurs, but also to different ways of being tied to them. It also enriches more broadly the understanding of the entrepreneurial process, especially its volitional phase.

Practical implications

The results are also important to guide public action, especially to design relevant support programs accounting for nascent entrepreneurs' diversity.

Originality/value

This is the first research to identify profiles of nascent student entrepreneurs based on the way they feel tied to their project, but also to the broader project of becoming entrepreneurs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 5
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 11 August 2021

Stephen E. Lanivich, Laci M. Lyons and Anthony R. Wheeler

Social cognitive theory suggests that entrepreneurs' characteristics affect entrepreneurial outcomes through interaction with their environment. This study examines the…

Abstract

Purpose

Social cognitive theory suggests that entrepreneurs' characteristics affect entrepreneurial outcomes through interaction with their environment. This study examines the relationship between entrepreneurs' characteristics and performance in the context of entrepreneurial nascence.

Design/methodology/approach

This study investigated lagged-panel responses from a sample of 100 confirmed nascent entrepreneurs. Data collected on three separate occasions included core self-evaluations, commitment, fear of failure and success. PLS analysis was used to assess mediation of commitment on the self-evaluation – success relationship.

Findings

Core self-evaluations are an important predictor of entrepreneurial success in nascent-stage entrepreneurs participating in pre-venture assistance programs; positively affecting success and commitment, while negatively affecting fear of failure.

Research limitations/implications

This investigation contributes to a fuller understanding of social cognitive theory as it pertains to nascent entrepreneurship. Furthermore, contrary to general expectations found in the entrepreneurship literature, the authors uncover a context where entrepreneurs' characteristics are relevant predictors of early entrepreneurial outcomes.

Practical implications

Results showed core self-evaluations as a robust predictor of perceived success in nascent entrepreneurs. Administrators of pre-venture assistance programs should consider screening applicants to programs designed to assist nascent entrepreneurial opportunity development for signs of high core self-evaluations.

Originality/value

This study advances theory by (1) demonstrating the value of assessing nascent entrepreneurs' core self-evaluations as a specific predictor of early-stage entrepreneurial outcomes, (2) suggesting social interaction amidst participation in pre-venture assistance programs makes commitment a salient part of perceived success and (3) providing evidence that entrepreneur-level characteristics need consideration in the context of nascent entrepreneurship and pre-venture assistance programs.

Article
Publication date: 9 March 2018

Bruce M.K. Mwiya, Yong Wang, Bernadette Kaulungombe and Maidah Kayekesi

The purpose of this paper is to examine the mediating role of entrepreneurial intention (EI) in relation to the influence of the five dimensions of entrepreneurial…

Abstract

Purpose

The purpose of this paper is to examine the mediating role of entrepreneurial intention (EI) in relation to the influence of the five dimensions of entrepreneurial self-efficacy (ESE) on nascent behaviour.

Design/methodology/approach

The study relies on a quantitative approach where primary data were collected from 294 final year undergraduate students at a public university in Zambia. The data were examined by using correlation, logistic regression and mediation analyses.

Findings

The findings indicate that each of the five dimensions of ESE is positively and significantly related with EI. Additionally, each of the ESE dimensions, except the financial aspect, is positively correlated with nascent behaviour. Finally, the results show that the influence of ESE dimensions on nascent behaviour is significantly mediated by intention.

Research limitations/implications

The study took place in a public university in Zambia; more universities could be involved to improve the generalisability of the study conclusions.

Practical implications

The study shows that the five ESE dimensions positively influence not only business start-up intention but also nascent behaviour. To motivate graduates’ involvement in business start-up, there is a need to tailor training and practical pedagogical approaches on entrepreneurship that are focussed on developing the five ESE dimensions.

Originality/value

This paper extends an emerging body of knowledge which has not been fully investigated in terms of the mediating role of intention on the relationships between dimensions of ESE and nascent behaviour. The study also makes a valuable contribution to the under-researched context of Zambia and African entrepreneurship.

Details

Journal of Small Business and Enterprise Development, vol. 26 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 17 May 2011

Servane Delanoë

Entrepreneurship scholars have become more demanding concerning detailed investigations of nascent venturing processes. The purpose of this paper is to propose indicators…

Abstract

Purpose

Entrepreneurship scholars have become more demanding concerning detailed investigations of nascent venturing processes. The purpose of this paper is to propose indicators measuring the impact that these processes in general, and support actions in particular, have on individuals.

Design/methodology/approach

Existing theories that could be used to analyze the impact of nascent venture experiences on individuals are reviewed. Literature and official statements regarding the underlying objectives of different stakeholders in company creation in France are then presented. Following this, performance indicators used by researchers and French support networks are discussed in relation to these objectives.

Findings

It is shown that indicators that could provide information regarding the potential effects of startup processes on individuals exist but remain to be used with nascent entrepreneurs. A proposal as to how these indicators might be adapted to the specific needs of nascent entrepreneurship research is made.

Research limitations/implications

The indicators proposed here are identified in a review of the literature, in which studies are primarily undertaken on student samples. Their practical adaptation to populations of nascent entrepreneurs remains to be implemented.

Practical implications

The suggested indicators should be of use to professional support actors who constantly look to improve their service to nascent entrepreneurs. They should also provide valuable information to the individuals considering or involved in startups on how to use support more efficiently, to policy makers for assessing the impact of specific support efforts and to academics designing entrepreneurship programmes.

Originality/value

The paper proposes readily applicable indicators for nascent entrepreneurship outcomes by drawing on a variety of research streams and linking them to practical information.

Details

Journal of Small Business and Enterprise Development, vol. 18 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 8 May 2019

Fernando Muñoz-Bullón, Maria J. Sanchez-Bueno and Mattias Nordqvist

The purpose of this paper is to investigate how family ties in new venture teams (NVTs) influence the intended future growth of a nascent entrepreneur’s business. The…

Abstract

Purpose

The purpose of this paper is to investigate how family ties in new venture teams (NVTs) influence the intended future growth of a nascent entrepreneur’s business. The authors posit that R&D-oriented entrepreneurs in NVTs with family ties have higher growth intentions relative to those who are less oriented toward R&D.

Design/methodology/approach

The hypotheses were tested using data from the Panel Study of Entrepreneurial Dynamics II (PSED II). One distinctive feature of the PSED is that it is based on a random sample of 1,214 nascent entrepreneurs in the process of starting new ventures in the USA, which overcomes the recall biases associated with surveying entrepreneurs already in business and potential survivorship biases.

Findings

The results show that growth intentions in NVTs with family ties is greater when the nascent entrepreneur shows an R&D behavior, even though the presence of family members in the team is negatively related to the intentions of nascent entrepreneurs with regard to new venture growth. This effect is attributed to entrepreneurs’ long-term vision and a more favorable attitude toward change.

Research limitations/implications

Data on startup teams in the PSED II come from one team member (the respondent). Therefore, differences in perceptions regarding growth intentions cannot be determined. Moreover, the sample consisted exclusively of nascent entrepreneurs in the USA.

Practical implications

Knowledge about the determinants of growth intentions during the venture creation phase becomes relevant if we want to influence and support the growth of newly founded firms. Nascent entrepreneurs need to understand the trade-off between emotional and financial concerns.

Social implications

Nascent entrepreneurs more oriented toward R&D become more risk tolerant, and may accept certain losses to their emotional endowment in favor of pure financial goals, being more able to access the additional external resources (tangible and intangible) needed for growth.

Originality/value

The research expands previous evidence on the family involvement-performance debate in large firms by focusing on new ventures with family ties, with distinctive characteristics that may affect growth intentions. The authors also shed new light on the interplay between family business and entrepreneurship. In particular, the research helps gain an understanding of how NVTs with family ties deal with the opposition between the benefits from venture growth and the tendency to preserve team member’s emotional attachment.

Details

Management Decision, vol. 58 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of over 8000