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1 – 10 of over 1000
Article
Publication date: 17 May 2022

Willy Das and Satyasiba Das

The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.

Abstract

Purpose

The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.

Design/methodology/approach

This paper uses conjoint analysis (CA) to provide the order of preference for the “choice attributes.” The logic of CA is that even if two or more attributes influence the choice, it is unlikely that those attributes will have equal importance for founders with different entrepreneurial experiences.

Findings

This paper found a significant difference in the ranking of the attributes by novice and habitual entrepreneurs. In novice entrepreneurs, the effect of direct ties in the form of kinship ties has the highest preference, followed by prior social contact and prior work relations. However, personal friendships and resource dependency received lesser importance than interpersonal attraction because of the similarity in vision, beliefs and values. Habitual entrepreneurs, however, valued resource dependency and prior work relations more than kinship ties. Also, unlike novice entrepreneurs, habitual entrepreneurs sought cofounders from their indirect ties.

Practical implications

There has been an explosion of interest and funding for programs that help entrepreneurs establish a cofounding team. The authors inform these programs related to the decision concerning assisting novice and habitual entrepreneurs.

Originality/value

While prior studies examined a single attribute at a time, the strength of this study lies in simultaneously tapping all attributes, along with multiple indicators for each attribute. Additionally, this study distinguishes the selection criteria of cofounders based on the entrepreneurial expertise of the lead founder.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 4 January 2016

Jarle Aarstad, Inger Beate Pettersen and Karl-Erik Henriksen

Previous studies demonstrate that novice entrepreneurs access fewer resources than experienced portfolio entrepreneurs. From an entrepreneurial learning perspective, the…

Abstract

Purpose

Previous studies demonstrate that novice entrepreneurs access fewer resources than experienced portfolio entrepreneurs. From an entrepreneurial learning perspective, the purpose of this paper is to investigate why they differ in terms of accessing critical resources.

Design/methodology/approach

The authors studied entrepreneurs in the Norwegian offshore petroleum industry, which is conservative with strict regulatory regimes and overall high-entry barriers, and in which a good reputation is crucial. Hence, the authors argue that the industry is well suited for a study of the research questions.

Findings

The novices’ mind-sets were anchored in technological ideas and they had problems in prioritizing the critical business relationships and market opportunities. They were also unwilling to compromise on ownership control and to disclose business secrets. Portfolio entrepreneurs, on the other hand, acknowledged that technology had had little value if they could not convince market actors. Therefore, they proactively aimed to establish business relations early in the process. They emphasized that a major lesson was to avoid developing excessive attachment to the product but to be willing to share the risks and profits with other industry and market actors.

Research limitations/implications

The authors had a limited number of cases, and future contributions should aim to study a larger pool of enterprises, preferably in different industries and national contexts.

Practical implications

The findings indicate that novices can learn from the willingness to compromise, in terms of ownership control and disclosure of confidential information to business partners, shown by experienced entrepreneurs. They should also be more willing to involve potential customers at an early stage to gain market knowledge and access.

Originality/value

From a learning perspective, this is the first study investigating why novice and experienced entrepreneurs differ in terms of accessing critical resources.

Details

Baltic Journal of Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 8 August 2022

Pouria Nouri

Decision-making biases play substantial roles in entrepreneurs' decisions and the fate of entrepreneurial enterprises, as well. Previous studies have assumed all…

Abstract

Purpose

Decision-making biases play substantial roles in entrepreneurs' decisions and the fate of entrepreneurial enterprises, as well. Previous studies have assumed all entrepreneurs are homogeneous in their proneness to biases, therefore inadvertently creating a crucial research gap by ignoring the role of business experience in the genesis of biases. Furthermore, there is a lack of research on women entrepreneurs' decision-making biases. Thus, this paper's main objective is to explore two influential biases of overconfidence and over-optimism in novice and habitual women entrepreneurs.

Design/methodology/approach

The data for this study were collected by conducting semi-structured interviews with 21 Iranian novice and habitual women entrepreneurs active in four high-tech sectors of biotech, nanotech, aerospace and advanced medicine. The gathered data were analyzed by thematic analysis.

Findings

According to the findings, while habitual entrepreneurs are prone to all three types of overconfidence (overestimation, overplacement and overprecision) and over-optimism, novice entrepreneurs do not show any signs of overplacement or overprecision.

Practical implications

There are certain valuable implications resulting from this study that could be of use for not only future researchers in the field of entrepreneurial decision-making and women entrepreneurship but also for women entrepreneurs running entrepreneurial enterprises, especially small businesses.

Originality/value

This paper offers certain novel contributions to the field of entrepreneurship by not only exploring biases in women entrepreneurs exclusively but also scrutinizing biases in novice (first-time) and habitual (experienced) entrepreneurs comparatively.

Details

Journal of Organizational Effectiveness: People and Performance, vol. 9 no. 4
Type: Research Article
ISSN: 2051-6614

Keywords

Article
Publication date: 8 August 2008

Diamanto Politis

This paper aims to present a study of the role of prior start‐up experience as a source of learning in the entrepreneurial process. Three learning outcomes are examined…

4901

Abstract

Purpose

This paper aims to present a study of the role of prior start‐up experience as a source of learning in the entrepreneurial process. Three learning outcomes are examined with respect to a comparison between habitual and novice entrepreneurs: skills for coping with liabilities of newness, preference for effectual reasoning, and attitudes towards failure.

Design/methodology/approach

This is an empirical study based on statistical analysis conducted on a sample of 231 Swedish entrepreneurs that have started a new independent firm in 2004.

Findings

The findings suggest that habitual and novice entrepreneurs differ significantly with regard to several interesting aspects of the hypothesized dimensions.

Research limitations/implications

The findings provide a better understanding of start‐up experience as a source of learning and its effects on the skills, preferences and attitudes of habitual entrepreneurs.

Originality/value

Previous research has suggested that prior start‐up experience is an important source of entrepreneurial learning, but has not put much effort into explaining how this particular type of experience influences various learning outcomes on an individual level. The present study advances these suggestions by showing how prior start‐up experience influences entrepreneurs' skills for coping with liabilities of newness, effectual reasoning and attitudes towards failures. Moreover, the study contributes to existing literature and research on entrepreneurial learning by developing explorative measures of individual learning outcomes that have been highlighted as influenced by prior experience in recent entrepreneurship research.

Details

Journal of Small Business and Enterprise Development, vol. 15 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 12 September 2003

Deniz Ucbasaran, Mike Wright, Paul Westhead and Lowell W Busenitz

Evidence suggests habitual entrepreneurs (i.e. those with prior business ownership experience) are a widespread phenomenon. Appreciation of the existence of multiple…

Abstract

Evidence suggests habitual entrepreneurs (i.e. those with prior business ownership experience) are a widespread phenomenon. Appreciation of the existence of multiple entrepreneurial acts gives rise to the need to examine differences between habitual and novice entrepreneurs (i.e. those with no prior business experience as a founder, inheritor or purchaser of a business). This paper synthesizes human capital and cognitive perspectives to highlight behavioral differences between habitual and novice entrepreneurs. Issues relating to opportunity identification and information search, opportunity exploitation and learning are discussed. Avenues for future research are highlighted.

Details

Cognitive Approaches to Entrepreneurship Research
Type: Book
ISBN: 978-1-84950-236-8

Open Access
Article
Publication date: 25 November 2020

Laura Gasiorowski and Ahreum Lee

This study aims to show what type of directors founders (or entrepreneurs) first appoint to the board and how these appointments differ across experienced and novice entrepreneurs.

Abstract

Purpose

This study aims to show what type of directors founders (or entrepreneurs) first appoint to the board and how these appointments differ across experienced and novice entrepreneurs.

Design/methodology/approach

The sample consists of the human capital of board members in 443 new ventures in the computer software and information technology industries between 2000 and 2014. The hypotheses were tested using tobit regression.

Findings

The findings in this study reveal that compared to novice entrepreneurs, experienced entrepreneurs tend to appoint early boards with greater human capital (entrepreneurial, technical/scientific and industry-specific) and with greater functional diversity. In contrast, novice entrepreneurs tend to appoint early boards with greater finance and director experience.

Originality/value

The value of this research lies in filling the gap in the current literature by comparing the board appointment/selection behavior of novice and experienced entrepreneurs, which is relatively underexplored.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 14 no. 3
Type: Research Article
ISSN: 2071-1395

Keywords

Book part
Publication date: 17 June 2019

Marian Evans

Adopting a dual processing cognitive perspective, this study explores the decision-making processes past the start-up stage that small entrepreneurial businesses employ to…

Abstract

Adopting a dual processing cognitive perspective, this study explores the decision-making processes past the start-up stage that small entrepreneurial businesses employ to grow. The author examines how entrepreneurs evaluate and make decisions on growth opportunities in their business environment. The author uses cognitive style as a theoretical lens to capture differences in information processing, combining interviews and psychometric questionnaires to analyse cognitive styles. The longitudinal mixed methods approach illustrates the richness of the entrepreneur’s decision-making process, which the author tracks over a two-year period. The author determines how intuitive and analytical cognitive styles are used by entrepreneurs and the contribution these styles make to decision-making. The findings show that the two cognitive styles are versatile as entrepreneurs adjust and adapt their cognitive style over time, in keeping with the situational factors of their business environment. The author also finds marked differences between novice and mature entrepreneurs and that experienced entrepreneurs exhibited greater levels of cognitive versatility, which was directly linked to their prior experience. The study has significant implications for future research, which should consider the question how an entrepreneur’s cognitive style is dependent on the business context and their prior experience.

Details

Creating Entrepreneurial Space: Talking Through Multi-Voices, Reflections on Emerging Debates
Type: Book
ISBN: 978-1-78769-577-1

Keywords

Article
Publication date: 6 February 2018

Magdalena Markowska

The purpose of this paper is to theorize on the mechanisms underlying the development of entrepreneurial expertise. While prior studies have identified differences between…

Abstract

Purpose

The purpose of this paper is to theorize on the mechanisms underlying the development of entrepreneurial expertise. While prior studies have identified differences between the behavior of novice and expert entrepreneurs, the mechanisms that cause these differences have not received sufficient attention.

Design/methodology/approach

This paper systematically reviews the extant literature on entrepreneurial expertise and builds the conceptual framework by employing an action-control belief framework to propose mechanisms underlying the development of expert behavior.

Findings

This paper argues that differences in behavior between novice and expert entrepreneurs stem from self-perceptions of their ability to act. More specifically, stronger action-control beliefs encourage entrepreneurs to create new interpretations of the world over time; develop and use strategies that allow them to rely on perceived control over means and ends, their perceived capacity, and their agency; and hence behave more like experts.

Practical implications

This paper suggests that strategy, capacity, and control beliefs are key in individuals’ decisions of whether to engage in entrepreneurial action and that expert entrepreneurs hold stronger beliefs than novices. Positive experiences, particularly those associated with deliberate practice, contribute to developing these beliefs and, more broadly, to entrepreneurial expertise.

Originality/value

This paper proposes that the mechanism of transformation from novice to expert behavior can be attributed to positive changes in deeply held beliefs about strategy (i.e. possible means-ends frameworks), capacity (i.e. access to means), and control (i.e. perceived efficacy). Each of the beliefs can develop separately from others and at different pace. In other words, this work explains why novice and expert entrepreneurs behave differently.

Details

Journal of Small Business and Enterprise Development, vol. 25 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 28 August 2020

Virginia Cha, Yi Ruan and Michael Frese

This study enriches the theory of effectuation by discussing the four independent dimensions of effectuation and their relationships with causation. Additionally, we fill…

Abstract

This study enriches the theory of effectuation by discussing the four independent dimensions of effectuation and their relationships with causation. Additionally, we fill the gap in prior literature by showing how entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture. Our study of 171 practising entrepreneurs regarding their entrepreneurial decision-making logic yielded multiple findings. The authors find that entrepreneurs rely on causation as well as effectuation in their decision-making; the more experienced entrepreneurs are, the more they actually use causation; and entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture firm.

Details

The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspect of entrepreneurship
Type: Book
ISBN: 978-1-78973-508-6

Keywords

Article
Publication date: 15 February 2016

Christian Kjær Monsson and Søren Berg Jørgensen

The purpose of this paper is to demonstrate empirically that differences in characteristics of entrepreneurs result in benefits from different elements of a regional…

2167

Abstract

Purpose

The purpose of this paper is to demonstrate empirically that differences in characteristics of entrepreneurs result in benefits from different elements of a regional incubator programme.

Design/methodology/approach

The authors use mixed methods consisting of in-depth interviews and a survey of 100 incubatees in order to study entrepreneurs within a specific incubator programme called the Growth Factories located in Region Zealand, Denmark.

Findings

The authors find that there are significant differences in the perceived benefit of various business incubator elements for incubatees depending on their entrepreneurial characteristics.

Research limitations/implications

Future studies are particularly important in order to learn which elements provide the different kinds of entrepreneurs with a critical factor in determining their success or failure.

Practical/implications

The conclusions have importance for regional government and development managers aiming at designing new business incubators. The authors suggest that in order to enhance the effect of incubator programmes they must be tailor-made to the individual entrepreneur.

Originality/value

Previous studies have either tended to treat incubator programmes as a uniform entity, where all entrepreneurs receive the same service, or they have treated all entrepreneurs as a uniform group, even though it is well known that entrepreneurs vary considerably in their characteristics. This paper overcomes the gap.

Details

Journal of Small Business and Enterprise Development, vol. 23 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

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