Document Type
Journal Article
Publication Title
International Journal of Manpower
Publisher
Emerald
School
School of Business and Law
RAS ID
31562
Funders
Edith Cowan University - Open Access Support Scheme 2020
Abstract
Purpose:
This study presents and validates a theoretical model linking individual characteristics of the founding or lead innovative entrepreneur of a start-up venture – the entrepreneur’s values, entrepreneurial attitudes and entrepreneurial self-efficacy – to the firm’s entrepreneurial orientation (EO) and market orientation (MO) and, ultimately, to firm performance.
Design/methodology/approach:
We conducted a survey on a stratified random sample of founders of early-stage South Australian micro- and small enterprises with a response rate of 24% (N 5 204). Structural equation modelling was used to evaluate the model.
Findings:
The study found that there is a significant relationship between the individual lead entrepreneur and firm strategies developed in early-stage firms in explaining firm performance. It also found that internal values are positively related to entrepreneurial attitude. Entrepreneurial attitude is positively related to entrepreneurial self-efficacy and EO innovativeness. In turn, entrepreneurial self-efficacy is related to innovativeness, proactiveness and risk-taking. The proactiveness dimension of EO and entrepreneurial attitude is related to MO. Entrepreneurial self-efficacy, innovativeness andMOare related to firm performance.
Research limitations/implications:
This research was limited to entrepreneurial ventures in South Australia and may lack generalisability in other states and countries.
Originality/value:
The research contributes to the understanding of the heterogeneity within self-employed individuals, in particular among innovative entrepreneurs, by expanding insights regarding antecedents and consequences of the entrepreneurial process. It develops insights into the links of individual-level constructs with firm-level constructs to develop a more meaningful understanding of new venture creation and performance. It enhances our knowledge of the heterogeneity within the group of self-employed by exploring the individual entrepreneurial antecedents of performance in early-stage firms.
DOI
10.1108/IJM-02-2019-0112
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Comments
Seet, P., Lindsay, N., & Kropp, F. (2020). Understanding early-stage firm performance: The explanatory role of individual and firm level factors. International Journal of Manpower, 42(2), 260-285.
https://doi.org/10.1108/IJM-02-2019-0112