1. Understanding early-stage firm performance: the explanatory role of individual and firm level factors.
- Author
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Seet, Pi-Shen, Lindsay, Noel, and Kropp, Fredric
- Subjects
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ORGANIZATIONAL performance , *SELF-efficacy , *STRUCTURAL equation modeling , *MARKET orientation , *NEW business enterprises - 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 = 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 and MO are 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. [ABSTRACT FROM AUTHOR]
- Published
- 2021
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