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1 – 10 of over 2000
Open Access
Article
Publication date: 8 August 2023

Nastaran Simarasl, Pooya Tabesh and Younggeun Lee

This research aims to theorize how a critical factor, resource access, can paradoxically impact the comprehensiveness of venture location decision processes and the relationship…

Abstract

Purpose

This research aims to theorize how a critical factor, resource access, can paradoxically impact the comprehensiveness of venture location decision processes and the relationship between decision comprehensiveness and new venture performance. To do so, the authors focus on nascent entrepreneurs’ venture location decision processes and introduce resource access as a double-edged sword.

Design/methodology/approach

In this conceptual article, the authors draw from the strategic decision-making and resource mobilization literature to theorize about the new venture location decision-making process and its performance implications.

Findings

By uncovering the paradox of resource access, the authors propose that high levels of resource access create a paradoxical situation in which nascent entrepreneurs are less likely to use comprehensive decision processes when their benefits are at their greatest.

Originality/value

This work contributes to entrepreneurship research on new venture location and resource mobilization in three important ways. First, the authors advance the literature on nascent entrepreneurs’ location decision-making processes by introducing “location decision comprehensiveness” as a decision process construct and juxtaposing it with resource access to uncover the entrepreneurial decision-making process. Second, the authors develop a more nuanced theorization of the location choices made by nascent entrepreneurs instead of relying on generalized conclusions drawn from well-established corporations’ location decisions. Last, the authors extend the literature on resource mobilization in entrepreneurship by shedding light on the paradoxical aspect of resource access. While previous research has emphasized the favorable effects of resource access on new venture processes and outcomes, the authors contend that it can also negatively impact entrepreneurs’ ability to make effective decisions.

Details

New England Journal of Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 14 June 2018

Jun Li and Dev K. Dutta

The purpose of this paper is to examine the role of founding team experience (industry and venturing) in new venture creation. This paper posits the following questions: How does…

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Abstract

Purpose

The purpose of this paper is to examine the role of founding team experience (industry and venturing) in new venture creation. This paper posits the following questions: How does founding team experience influence the likelihood of new venture creation, in the nascent stage? How does industry context moderate this relationship? The study aims to fill an important gap in the literature by unpacking the impact of different types of founding team experiences on venture outcome, and by focusing on the influence of founding team in the venture creation process, specifically at the nascent stage.

Design/methodology/approach

The paper utilizes data from the Second Panel Study of Entrepreneurial Dynamics, a longitudinal data set of 1,214 nascent entrepreneurs in the USA. Logistics regression was employed to analyze the effect of founding team experience on new venture creation. Post hoc analysis was conducted to ensure the confidence of the findings.

Findings

The paper provides empirical insights about how founding team experience influences the likelihood of new venture creation in the nascent stage. At the nascent stage, founding team industry experience positively affects new venture creation while founding team venturing experience does not. However, in the high-technology industry environment, the influence of the founding team’s venturing experience on new venture creation is stronger than that in the low-technology industry environment.

Research limitations/implications

Due to the design of the data set, there is a risk of “right-censoring” problem. Also, because the study used archival data on founding teams, the methodology did not allow for uncovering the underlying team processes and dynamics during the venture creation process based on learning from experience. Future studies are encouraged to examine other types of founding team experience and the underlying process-level factors on venture creation.

Practical implications

The paper provides important practical implications for nascent entrepreneurs/entrepreneurial teams on team assembling and composition. In general, a team with higher-level industry experience is critical for venturing success. A team with higher-level venturing experience is more desired in the high-technology industry.

Originality/value

This paper fulfills an important gap in the entrepreneurial team literature by highlighting the complex and nuanced ways in which founding team experience influences the likelihood of venture creation in the nascent stage of the firm, especially after incorporating the additional impact of the industry context.

Details

New England Journal of Entrepreneurship, vol. 21 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

Open Access
Article
Publication date: 5 December 2016

William W. Kirkley

The purpose of this pilot study was to identify the key factors that influence the decisions of entrepreneurs who are considering the creation of a new venture. The pilot was…

66300

Abstract

Purpose

The purpose of this pilot study was to identify the key factors that influence the decisions of entrepreneurs who are considering the creation of a new venture. The pilot was conducted to explore the cognitive antecedents of entrepreneurial decision-making and whether specific factors contribute to the decision to create a new venture.

Design/methodology/approach

The study utilised an inductive and interpretive research design within a constructivist paradigm. The sample comprised entrepreneurs situated in a business incubation unit who engaged in a series of semi-structured interviews. The results of this study will be used to refine the questions asked in preparation for a larger sample using in-depth interviews with identified entrepreneurs. The resulting narrative in this pilot was subjected to discourse analysis and is categorised into relevant themes.

Findings

The findings in this pilot study reveal that factors such as technological advancement, market opportunity, competition, customer demand and prevailing market conditions have a significant influence on the decision-making process involved in creating a new venture.

Research limitations/implications

Although the pilot has identified several factors in entrepreneurial decision-making, further work will be needed in the research design to be able to expose the cognitive processes associated with each factor. The aim is to identify the common cognitive characteristics associated with thinking through the decision to create a new venture with a much larger sample of entrepreneurs.

Originality/value

The value of this research lies in exploring and developing a better understanding of the antecedent cognitive processes used by entrepreneurs for identifying unique, innovative new ideas and converting them into exploitable products or services through new venture creation.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 3 June 2022

Francesco Petrucci and Matilde Milanesi

To the best of the authors’ knowledge, this paper is a first attempt to deal with the phenomenon of new venture failure from the business network perspective of the Industrial…

Abstract

Purpose

To the best of the authors’ knowledge, this paper is a first attempt to deal with the phenomenon of new venture failure from the business network perspective of the Industrial Marketing and Purchasing (IMP) Group. In particular, this study aims to explore the post-failure phase of a new venture to investigate what happens to the new venture’s resources and relationships in the aftermath of its failure and the role of the entrepreneur in this process.

Design/methodology/approach

The paper builds on an explorative multiple case study of two failed new ventures, unfolding the failure and post-failure phase: evidence from both cases is confronted and discussed.

Findings

This study shows that the post-failure is a complex phase of recombination of activities and residual resources that may lead to new business opportunities. It is discussed that residual resources influence the direction and extent of post-failure activities in terms of restrictions as well as opportunities to restart new projects or ventures. It is also shown how the entrepreneur deals with the “business remains”.

Originality/value

While much attention has been devoted to new ventures’ failure, the paper focuses on the post-failure phase, an almost neglected topic in industrial marketing research. This study sheds some new light upon the journey through which entrepreneurs come to develop the set of resources, activities and relationships that are not only key to the establishment of the venture but also relevant in the complex and intricate trajectories of post-failure.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 3 May 2022

Giulia Tagliazucchi and Gianluca Marchi

By using the lens of effectuation and causation, this paper aims at exploring how the team is formed in high-tech academic spinoffs, by looking specifically at decisional…

Abstract

Purpose

By using the lens of effectuation and causation, this paper aims at exploring how the team is formed in high-tech academic spinoffs, by looking specifically at decisional heuristics in an academic context. Indeed, the team composition is a critical issue for the subsequent growth of the academic new venture: on the one hand, the scientific-centred knowledge of the academic entrepreneurs is one of the main elements that lay the foundation for the new venture; on the other hand, it has been widely recognized that the lack of market-related knowledge and experience often has detrimental effects on performance. Decisive is then to explore how team decisions pertaining to the team formation process are taken.

Design/methodology/approach

A qualitative methodology based on multiple case studies is adopted under an abductive approach.

Findings

Results shed light on how decisions pertaining to team formation are taken by academic entrepreneurs and with what effects on team composition, a fundamental element to foster the growth of academic new ventures. Specifically, this study derives some propositions about the adoption of effectuation and causation in the team formation process, their occurrence and sequence in the light of the scientific context in which academic new ventures spin out and the effects on the team composition.

Originality/value

This study contributes to the debate on academic entrepreneurs’ decisional heuristic and the use of effectuation or causation in the early stages of an academic new venture, by focusing on the team formation process. This study specifically considers three temporal micro-phases – the selection of founders before inception, the appointment of top management teams, and the integration of early employees after the inception – and whether the academic context influences the decisional heuristics. Managerial implications are also derived.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

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 newness…

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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. 30 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Open Access
Article
Publication date: 20 October 2023

Luca Marinelli, Sara Bartoloni, Alessandra Costa and Federica Pascucci

This work aims to explore the relationship between entrepreneurial ecosystems' (EEs) inputs and outcomes within a digital-technology-driven EE. Specifically, it focuses on how…

Abstract

Purpose

This work aims to explore the relationship between entrepreneurial ecosystems' (EEs) inputs and outcomes within a digital-technology-driven EE. Specifically, it focuses on how being part of an EE enhances digital technology adoption (DTA) and consequently facilitates EE outcomes.

Design/methodology/approach

This paper employs a single-case study approach, focusing on Italian EE. The data analysis is based on the researchers' direct observations and semi-structured interviews with the EE founders' teams and the top management of the small- and medium-sized enterprises (SMEs) operating therein. Given the novelty of the topic and the lack of a clear research framework of analysis, a qualitative method is well suited for studying digital-technology-driven EE, thus gaining rich data about the phenomenon in a real-life context.

Findings

The findings of the study reveal that when specific eco-inputs (financial, knowledge, social and institutional assets) are correctly exploited to enhance DTA, important outcomes, namely, SME competitiveness and new technology-based venture creation and development, are generated.

Originality/value

The paper contributes to a relatively unexplored topic in the existing literature on EEs and digital technology. Specifically, through the proposition of a conceptual model, it sheds light on the relationship among EE inputs, DTA and EE outcomes.

Details

European Journal of Innovation Management, vol. 26 no. 7
Type: Research Article
ISSN: 1460-1060

Keywords

Open Access
Article
Publication date: 21 February 2020

Roy Cerqueti, Caterina Lucarelli, Nicoletta Marinelli and Alessandra Micozzi

This paper aims to dismantle the idea that sex per se explains entrepreneurial outcomes and demonstrates the influence of a gendered motivation on forging and shaping new venture

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Abstract

Purpose

This paper aims to dismantle the idea that sex per se explains entrepreneurial outcomes and demonstrates the influence of a gendered motivation on forging and shaping new venture teams, which is a disruptive choice affecting the future of start-ups.

Design/methodology/approach

A two-level research model is validated on data from the Panel Study of Entrepreneurial Dynamics II (PSED II), with a system of simultaneous equations. First, if team features affect the performance of new ventures is tested; then, the study investigates determinants of team features with a focus on sex and motivation of nascent entrepreneurs.

Findings

Human capital (HC) in terms of education and experience of team members consistently explains venture evolution only when considering the larger team of affiliates. The HC gathered by nascent entrepreneurs is not because of the simplistic sex condition, but rather to a gendered motivation related to the inferior need of achievement of women.

Research limitations/implications

Limitations of discretionary scoring assigned to items of the PSED II survey are present, but unavoidable when processing qualitative data.

Practical implications

Women need to be (culturally) educated on how to re-balance their personal motivation towards entrepreneurship by fostering their incentives for achievement. Political and educational programmes could trigger success in the creation of new businesses led by women.

Originality/value

This paper contributes to the literature on nascent entrepreneurship, focusing on the entrepreneurial teams in the initial phase of business creation, and provides the basis for further studies aimed at eradicating the stereotypes of gender roles that lead women to self-exclusion and organizational errors.

Details

International Journal of Gender and Entrepreneurship, vol. 12 no. 2
Type: Research Article
ISSN: 1756-6266

Keywords

Open Access
Article
Publication date: 4 November 2021

Sam Prince, Stephen Chapman and Peter Cassey

The paper introduces a new conceptualisation of entrepreneurship that promotes a broader perspective of the phenomenon. The purpose of the paper is to re-conceptualise the act of…

20259

Abstract

Purpose

The paper introduces a new conceptualisation of entrepreneurship that promotes a broader perspective of the phenomenon. The purpose of the paper is to re-conceptualise the act of entrepreneurship so as to reduce it to the fundamental behaviours and processes.

Design/methodology/approach

The paper sets out the motivations for and challenges in establishing a broader definition of entrepreneurship. Following this, current approaches to defining entrepreneurship are reviewed. In light of these, a definition of entrepreneurship is offered that captures a new perspective in understanding entrepreneurship. A critique of the offered definition is offered with regards to promoting theory development, empirical research, quality predictions and a distinctive research domain.

Findings

The authors argue that a definition of entrepreneurship that is focussed on the development and validation of ideas provides a thought-provoking re-conceptualisation of entrepreneurship. Extant perspectives on entrepreneurship as business/organisation creation, uncertainty, innovation, value creation and opportunity recognition/creation are drawn on to demonstrate the applicability of the definition.

Originality/value

The pursuit for an encompassing definition of entrepreneurship has been both extensive and earnest, which has inadvertently resulted in a sizable pool of definitions. The authors offer a re-conceptualisation of entrepreneurship with the intent to provide a broad yet coherent definition that encompasses all acts of entrepreneurship. A benefit of this conceptualisation is the establishment of the endpoint of the entrepreneurship process that delineates it from the domain of management.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 27 no. 9
Type: Research Article
ISSN: 1355-2554

Keywords

Open Access
Article
Publication date: 20 March 2020

Robert Paul Singh

There has been significant growth in entrepreneurship research over the past several decades. Yet with all of the knowledge gained and presumably improved training of would-be…

8004

Abstract

Purpose

There has been significant growth in entrepreneurship research over the past several decades. Yet with all of the knowledge gained and presumably improved training of would-be entrepreneurs, firm failure rates remain persistently high. It is argued here that the historical and continued research focus on successful entrepreneurs has limited the field. Entrepreneurs are often considered to possess uniquely positive capabilities relative to the general population; this paper explores the possibility that the majority of entrepreneurs suffer from overconfidence and that this leads most entrepreneurs to make “bad bets” that result in underperformance and firm failure.

Design/methodology/approach

In this paper, a qualitative review of the literature was performed.

Findings

Based on the literature review, three formal propositions are developed. The first two suggest that the majority of entrepreneurs are overconfident in their personal capabilities and the prospects for their new ventures. It is then proposed that this overconfidence leads to errors in judgment that results in financial underperformance and failure found among most new ventures.

Originality/value

This paper makes an important contribution to the entrepreneurship literature by arguing that overconfidence negatively impacts pre-founding decision-making such that entrepreneurs pursue flawed opportunities. Studying the issues raised in this paper may spur new lines of research and knowledge that lead to better entrepreneurial outcomes.

Details

New England Journal of Entrepreneurship, vol. 23 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

1 – 10 of over 2000