Entrepreneurial tenacity and self-efficacy effects on persisting across industry contexts
01 Sep 2019-Contemporary Management Research (Academy of Taiwan Information Systems Research)-Vol. 15, Iss: 3, pp 147-173
TL;DR: In this article, the authors examined trait and context antecedents of entrepreneurial persistence in new venture creation and found that entrepreneurial self-efficacy and tenacity differently impact subsequent entrepreneurial persistence behavior in different industry contexts.
Abstract: This study examines trait and context antecedents of entrepreneurial persistence in new venture creation. Two personality traits, entrepreneurial self-efficacy and tenacity, differently impact subsequent entrepreneurial persistence behavior in different industry contexts. These relationships are tested using logistic regression in a sample of entrepreneurs from the Panel Study of Entrepreneurial Dynamics (PSED-II; Curtin & Reynolds, 2018). In developing the PSED-II dataset, 31,845 individuals were screened using phone interviews in order to identify a sample of 1,214 nascent entrepreneurs. Results of the current study identify significant relationships between entrepreneurial persistence in efforts to launch a new business and entrepreneurial self-efficacy and tenacity. However, the relationships have diminishing returns and vary with the industry context of the business (manufacturing, retail, services). In the retail industry sector, neither trait was significant; however, in manufacturing industry contexts, tenacity seems to matter more for continuing to pursue new ventures than self-efficacy, while in services industries, self-efficacy seems to matter more than tenacity.
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TL;DR: Wang et al. as mentioned in this paper examined the relationship between CEO tenacity and employee intrapreneurship, and found that CEO's tenacity was significantly positively correlated with employee strategic renewal behavior and employee venture behavior.
Abstract: Chief executive officer (CEO) tenacity plays an important role in corporate entrepreneurial activity. However, much less is known about its impact on employee intrapreneurship. Drawing from social information processing theory and upper echelons theory, this article examines the hitherto unexplored nexus between CEO tenacity and employee intrapreneurship, as well as the mediating role of corporate social responsibility (CSR). Quantitative data were collected through a survey administered to 294 employees working in different sectors that engage in CSR activities in China. Data analysis was performed using hierarchical regression method through Stata 16.0. It was found that CEO tenacity was significantly positively correlated with employee strategic renewal behavior (β = 0.523, p < 0.001) and employee venture behavior (β = 0.510, p < 0.001). The positive correlation between CEO tenacity and CSR was also significant (β = 0.578, p < 0.001). Besides, CSR partially mediated the relationship between CEO tenacity and employee strategic renewal behavior (40.0%) or employee venture behavior (50.2%). This study extends research on CEO tenacity, CSR, or employee intrapreneurial behavior by providing a better understanding of the direct effects of CEO tenacity on employee intrapreneurial behavior and CSR. From the perspective of cross-fertilization between psychology and management, this study establishes the interface role of CSR by elucidating the intrinsic mechanism of CEOs with high levels of tenacity to stimulate employee intrapreneurial behavior through CSR.
3 citations
TL;DR: The authors synthesize the current state of entrepreneurial storytelling and build a parsimonious framework for strategic entrepreneurial storytelling (SES) through qualitative analysis of actual pitches, which will help entrepreneurs build intentional and compelling stories for their investment pitch through the concepts of SES context, content, and execution.
Abstract: Entrepreneurs are responsible for bringing innovative products and services to market. However, in order to bring new value to consumers, most entrepreneurs must secure funding. An integral component in the process of resource acquisition is the entrepreneur’s story. Very little research has dealt with the storytelling structure that a good pitch should use. Stories are a fundamental part of the way human beings understand themselves and the world around them. This paper synthesizes the current state of entrepreneurial storytelling and builds a parsimonious framework for strategic entrepreneurial storytelling (SES) through qualitative analysis of actual pitches. Our framework will help entrepreneurs build intentional and compelling stories for their investment pitch through the concepts of SES context, content, and execution.
2 citations
Cites background from "Entrepreneurial tenacity and self-e..."
...Access to resources has been shown to positively affect the desire to pursue entrepreneurship, which is a vital source of economic development and job creation and can also influence persistence (e.g., Cheng & Liao, 2017; Van Scotter & Garg, 2019)....
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TL;DR: In this article , the authors present a systematic literature review to identify dominant characteristics that predict entrepreneurial intention and entrepreneurial success in the twenty-first century, including self-efficacy, conscientiousness, locus of control, need for achievement and innovativeness.
Abstract: This study presents a systematic literature review to identify dominant characteristics that predict entrepreneurial intention and entrepreneurial success in the twenty-first century. The aim was to provide insights to entrepreneurs, academicians, policy makers, counsellors and all those charged with the responsibility of entrepreneurship development. The study applied a systematic review of the literature contained in the two databases, namely Semantic Scholar and Google Scholar. The analysis of the literature identified self-efficacy, conscientiousness, locus of control, need for achievement and innovativeness as the indisputably and unarguably key top personal characteristics that predict both entrepreneurial intention and guarantee entrepreneurial success. The study also finds that characteristics that predict entrepreneurial intention also guarantee entrepreneurial success. The review of the existing literature shows that there are gaps in it. For example, there are not many countries where studies have been done in the area of interest, and the research methods used in those studies are not balanced because they are mostly quantitative. The major contribution of the study was the identification of key dominant personal characteristics that predict both entrepreneurial intention and lead to entrepreneurial success in today’s dynamic environment. The other key contribution is stages, methodology and the analysis that can be replicated and employed by other researchers (scholars and practitioners) to conduct other studies or better still, similar studies in the future.
References
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TL;DR: Social cognitive theory distinguishes among three modes of agency: direct personal agency, proxy agency that relies on others to act on one's behest to secure desired outcomes, and collective agency exercised through socially coordinative and interdependent effort.
Abstract: The capacity to exercise control over the nature and quality of one's life is the essence of humanness. Human agency is characterized by a number of core features that operate through phenomenal and functional consciousness. These include the temporal extension of agency through intentionality and forethought, self-regulation by self-reactive influence, and self-reflectiveness about one's capabilities, quality of functioning, and the meaning and purpose of one's life pursuits. Personal agency operates within a broad network of sociostructural influences. In these agentic transactions, people are producers as well as products of social systems. Social cognitive theory distinguishes among three modes of agency: direct personal agency, proxy agency that relies on others to act on one's behest to secure desired outcomes, and collective agency exercised through socially coordinative and interdependent effort. Growing transnational embeddedness and interdependence are placing a premium on collective efficacy to exercise control over personal destinies and national life.
11,235 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...Self-efficacy is a cognitive construct reflecting a person’s confidence in his or her ability to perform a task and has been empirically shown to be associated with a broad range of behaviors and cognitions (Bandura, 2001)....
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...Self-efficacy is a cognitive construct reflecting a person’s confidence in his or her ability to perform a task and has been empirically shown to be associated with a broad range of behaviors and cognitions (Bandura, 2001). Recognizing that self-efficacy can be task-specific or generalized, Cassar and Friedman (2009) define entrepreneurial self-...
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...Social cognitive theory suggests that individuals initiating goal-directed behavior integrate information about personal skills and abilities into their predictions about the likelihood of success (Bandura, 2001)....
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...Self-efficacy is a cognitive construct reflecting a person’s confidence in his or her ability to perform a task and has been empirically shown to be associated with a broad range of behaviors and cognitions (Bandura, 2001)....
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TL;DR: In this article, the authors draw upon previous research conducted in the different social science disciplines and applied fields of business to create a conceptual framework for the field of entrepreneurship, and predict a set of outcomes not explained or predicted by conceptual frameworks already in existence in other fields.
Abstract: To date, the phenomenon of entrepreneurship has lacked a conceptual framework. In this note we draw upon previous research conducted in the different social science disciplines and applied fields of business to create a conceptual framework for the field. With this framework we explain a set of empirical phenomena and predict a set of outcomes not explained or predicted by conceptual frameworks already in existence in other fields.
11,161 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...Finally, it addresses aspects of opportunity exploitation that researchers have been calling for (Shane & Venkataraman, 2000)....
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TL;DR: In this article, the authors investigated the relation of the Big Five personality dimensions (extraversion, emotional stability, Agreeableness, Conscientiousness, and Openness to Experience) to three job performance criteria (job proficiency, training proficiency, and personnel data) for five occupational groups (professionals, police, managers, sales, and skilled/semi-skilled).
Abstract: This study investigated the relation of the “Big Five” personality dimensions (Extraversion, Emotional Stability, Agreeableness, Conscientiousness, and Openness to Experience) to three job performance criteria (job proficiency, training proficiency, and personnel data) for five occupational groups (professionals, police, managers, sales, and skilled/semi-skilled). Results indicated that one dimension of personality, Conscientiousness, showed consistent relations with all job performance criteria for all occupational groups. For the remaining personality dimensions, the estimated true score correlations varied by occupational group and criterion type. Extraversion was a valid predictor for two occupations involving social interaction, managers and sales (across criterion types). Also, both Openness to Experience and Extraversion were valid predictors of the training proficiency criterion (across occupations). Other personality dimensions were also found to be valid predictors for some occupations and some criterion types, but the magnitude of the estimated true score correlations was small (ρ < .10). Overall, the results illustrate the benefits of using the 5-factor model of personality to accumulate and communicate empirical findings. The findings have numerous implications for research and practice in personnel psychology, especially in the subfields of personnel selection, training and development, and performance appraisal.
8,018 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...Extensive prior work has shown that different personality traits have different relationships with job performance in different types of jobs (Barrick & Mount, 1991); however, this level of nuance is still needed in the entrepreneurial context because different types of new ventures have different…...
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TL;DR: Grit demonstrated incremental predictive validity of success measures over and beyond IQ and conscientiousness, suggesting that the achievement of difficult goals entails not only talent but also the sustained and focused application of talent over time.
Abstract: The importance of intellectual talent to achievement in all professional domains is well established, but less is known about other individual differences that predict success. The authors tested the importance of 1 noncognitive trait: grit. Defined as perseverance and passion for long-term goals, grit accounted for an average of 4% of the variance in success outcomes, including educational attainment among 2 samples of adults (N=1,545 and N=690), grade point average among Ivy League undergraduates (N=138), retention in 2 classes of United States Military Academy, West Point, cadets (N=1,218 and N=1,308), and ranking in the National Spelling Bee (N=175). Grit did not relate positively to IQ but was highly correlated with Big Five Conscientiousness. Grit nonetheless demonstrated incremental predictive validity of success measures over and beyond IQ and conscientiousness. Collectively, these findings suggest that the achievement of difficult goals entails not only talent but also the sustained and focused application of talent over time.
4,470 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...Duckworth et al. (2007) examined another similar concept, which they called grit, defined as “perseverance and passion for long-term goals....
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3,530 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...The organizational design literature focuses on industry environment dynamism, munificence and complexity (Dess & Beard, 1984), and finds that context affects managerial and organizational behavior....
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