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.
Document Type
Journal Article
Date of Publication
2020
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
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