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: In this paper, the authors explore the relevant literature from institutional economics and entrepreneurial studies, focusing on the important link between the two and discuss the implications for future research on the topic.
Abstract: This survey explores the important connection between institutions and entrepreneurship. Institutions consist of the formal and informal “rules of the game.” Entrepreneurs act within a context determined by these rules. The rules of the game create payoffs that make certain entrepreneurial opportunities more attractive than others. We explore the relevant literature from institutional economics and entrepreneurial studies, focusing on the important link between the two. Particular emphasis is placed on entrepreneurship within several different institutional settings — private for-profit, private nonprofit, and political — as well as the impact of entrepreneurship on institutions. We conclude by discussing the implications for future research on the topic. * We would like to thank the editors and an anonymous referee for detailed comments and suggestions. We would also like to thank Zac Rolnik for his patience and assistance throughout the process of preparing and revising this survey. Earlier versions of this survey were presented at the Mason Entrepreneurship Research Conference (MERC) Annual Conference, George Mason University, Fairfax, VA, March 28, 2008 and at the IHS Social Change Workshop, Brown University, Providence, RI, June 23, 2008. We would like to thank the participants for their comments and suggestions. Full text available at: http://dx.doi.org/10.1561/0300000018
90 citations
TL;DR: In this article, the authors examined whether students' compulsory participation in entrepreneurship education (EE) in Nigerian higher education institutions (HEIs) influences their development of the identified 13 entrepreneurial competencies (ECs) for business start-up after graduation.
21 citations
TL;DR: The multivariable regression analysis shows that there is a reciprocal effect when tenacity and FSC work together on subjects’ inter-temporal risky decision-making and implies that their worthwhile goal is to seek smooth income rather than to pursue an extreme high risk-return.
Abstract: This study examines entrepreneurship. It focuses on the effect of tenacity and future self-continuity on inter-temporal risky choice in entrepreneurial context. A total of 129 Chinese undergraduates participated in this survey. The results formulate that tenacity positively correlates with the risky choices and inter-temporal risky choices, in which endurance, commitment and challenge play a major role in the impact of tenacity on entrepreneurial choice. Meanwhile, future self-continuity predicts the risk-return of the subjects. Higher future self-continuity corresponds to higher expected inter-temporal risk-return. Furthermore, the multivariable regression analysis shows that there is a reciprocal effect when tenacity and future self-continuity work together on subjects’ inter-temporal risky decision-making. Future self-continuity slightly mitigates both the pursuit of risky-return and the tolerance of time delay for the subjects with high tenacity. That implies their worthwhile goal is to seek a smooth income rather than to pursue an extreme high risk-return. These findings extend the research on personality, choice and entrepreneurship as well as providing a guiding significance to the start-up.
11 citations
TL;DR: In this paper, the authors examine the relationship between comprehensive social competence, entrepreneurial tenacity and social entrepreneurial action and test the mediating role of entrepreneurship tenacity in the relationship among social ventures in Uganda.
Abstract: The purpose of this study is twofold: (1) to examine the relationship between comprehensive social competence, entrepreneurial tenacity and social entrepreneurial action and (2) to test the mediating role of entrepreneurial tenacity in the relationship between comprehensive social competence and social entrepreneurial action among social ventures in Uganda,The study is cross-sectional and quantitative Data were analyzed with the help of Statistical Package for Social Sciences and analysis of moment structures,Results show that both comprehensive social competence and entrepreneurial tenacity are significantly associated with social entrepreneurial action Results further indicate that entrepreneurial tenacity partially mediates the relationship between comprehensive social competence and social entrepreneurial action,To the authors' knowledge, this study provides initial empirical evidence on the relationship between comprehensive social competence, entrepreneurial tenacity and social entrepreneurial action using evidence from a developing African country – Uganda Mostly, this provides an initial evidence of the mediating role of entrepreneurial tenacity on the relationship between comprehensive social competence and social entrepreneurial action
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Cites methods from "Entrepreneurial tenacity and self-e..."
...The persistence was measured against five items (Baum & Locke, 2004; Van Scotter & Garg, 2019)....
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References
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TL;DR: In this paper, the authors study the role of human capital and early planning in the early planning process of a nascent entrepreneur and find that entrepreneurial experience has only indirect effects on the emergence of a venture.
Abstract: Nascent entrepreneurs continuously evaluate the merits of the opportunities they pursue and so can abandon those that lack promise and persist with those that remain attractive. This paper articulates this evolving judgment about the opportunity as the nascent entrepreneur's opportunity confidence. It situates this construct in the context of the nascent entrepreneur's human capital and early planning actions in respect to the pursued opportunity, and in respect to the emergence of the nascent venture. Analyses of PSED data show that opportunity confidence positively affects venture emergence and that, through it, entrepreneurial experience and early planning have only indirect effects on venture emergence. In contrast, industry experience has a direct, positive effect on venture emergence. These results provide some novel insights into the nascent entrepreneurial process as well as into the role of human capital and early planning in that process.
561 citations
"Entrepreneurial tenacity and self-e..." refers background or methods in this paper
...Liao and Welsh (2004) used these same items in a measure labeled entrepreneurial intensity, and Dimov (2010) used the same items to measure a construct labeled start-up motivation....
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...…(e.g., DeTienne et al. 2008; Gimeno et al. 1997), or examine persistence without distinguishing between the phase of the startup (e.g., Cardon & Kirk, 2015), or examine the role of other cognitive attributes (e.g., Dimov 2010; Farmer et al. 2011; Gatewood et al. 1995; Holland & Shepherd, 2013)....
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TL;DR: In this paper, the authors used the learned helplessness model to predict the tendency to explain bad events by internal, stable, and global causes and concluded that pessimistic explanatory style leads to poor productivity and quitting when bad events are experienced.
Abstract: The reformulated learned helplessness model claims that the tendency to explain bad events by internal, stable, and global causes potentiates quitting when bad events are encountered. We tested this prediction in the work setting with individuals who frequently experience bad events. Explanatory style, as measured by the Attributional Style Questionnaire (ASQ), correlated with and predicted the performance of life insurance sales agents. In a cross-sectional study of 94 experienced agents, individuals scoring in the top half of the ASQ sold 37% more insurance in their first 2 years of service than those scoring in the bottom half. In a prospective 1-year study of 103 newly hired agents, individuals who scored in the top half of the ASQ when hired remained in their job at twice the rate and sold more insurance than those scoring in the bottom half of the ASQ. These two studies support the claim that a pessimistic explanatory style leads to poor productivity and quitting when bad events are experienced, and extend the usefulness of the ASQ to the workplace.
530 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...In one of the first studies on the subject, Seligman and Schulman (1986) found that life insurance sale agents are less likely to persevere with their jobs if they follow a pessimistic life explanatory style, compared to if they follow an optimistic life explanatory style....
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Book•
05 Jan 2004TL;DR: EntrePRENEURSHIP: A PROCESS PERSPECTIVE equips potential entrepreneurs with the tools and insight for success as discussed by the authors, which covers the entire process of building a business, from recognizing opportunity and building a team, and then assembling finances, the business plan, legal issues, marketing, growth, and exit strategies.
Abstract: Current, comprehensive, and cutting edge, ENTREPRENEURSHIP: A PROCESS PERSPECTIVE equips potential entrepreneurs with the tools and insight for success. With solid theory and relevant examples, this thorough resource covers the entire process of building a business. Seasoned instructors and entrepreneurial authorities, Professors Baron and Shane deliver a practical, applied process approach with a multidisciplinary perspective, drawing on knowledge from the studies of economics, psychology, and other areas. The book begins with recognizing opportunity and building a team, and then moves through assembling finances, the business plan, legal issues, marketing, growth, and exit strategies. Rather than getting bogged down in excessive discussions of theory, Baron and Shane use real-world examples to illustrate how students can apply chapter concepts to their own business ventures. Thoroughly updated and revised based on student and professor feedback, the second edition adds a chapter on legal issues specific to entrepreneurs--including intellectual property considerations--and an appendix on key accounting principles entrepreneurs should know. A new chapter on growth strategies for new ventures is coupled with a chapter on managing new ventures for growth. In addition, new boxed features shed light on common myths and misperceptions about entrepreneurship. The book is also packed with hands-on applications--including a case written specifically for each chapter--giving students experience putting text concepts into real-world action.
466 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...This study also extends research on organizational emergence at the pre-launch stage (Baron, 2007)....
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...Different phases of the entrepreneurial process are associated with different types of goals and outcomes (Baron, 2007), and the pre-launch phase is when ideas develop into entrepreneurial intentions....
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...Entrepreneurship presents numerous highly challenging situations that must be overcome for entrepreneurs to achieve their goals (Baron, 2007; Gatewood et al., 1995)....
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...Entrepreneurship presents numerous highly challenging situations that must be overcome for entrepreneurs to achieve their goals (Baron, 2007; Gatewood et al., 1995)....
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...Different phases of the entrepreneurial process are associated with different types of goals and outcomes (Baron, 2007), and the pre-launch phase is when...
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Journal Article•
TL;DR: The Panel Study of Entrepreneurial Dynamics (PSED) as discussed by the authors was created to develop a representative portrait of entrepreneurial activity in the United States, where individuals in the process of creating new businesses could be studied to generate systematic, reliable, and generalizable data on business creation.
Abstract: This handbook reports on the creation andresults of the Panel Study of Entrepreneurial Dynamics (PSED) that wasconducted by the Entrepreneurship Research Consortium (ERC), founded in 1995.The PSED was created to develop a representative portrait of entrepreneurialactivity in the United States.A panel of nascent entrepreneurs wascreated, along with a control group of non-entrepreneurs. Individuals in theprocess of creating new businesses could be studied to generate systematic,reliable, and generalizable data on business creation. The handbook reports on the creation of the ERC, provides detailedinformation about the rationale used in developing the questionnaires for thePSED, and summarizes the theoretical perspectives operationalized, andvariables used, in the PSED. The PSED model has three "transitionpoints": (1) the "conception," (2) the startup process, and (3)"outcomes" of the new firm. These points generate various researchquestions: "What are the tendencies and features of those who startbusinesses?" "How do nascent entrepreneurs go about forming abusiness?" "Why are some successful?" and "Why are some firmslikely to succeed, persist, or die?" The research design had two majorparts: (1) identifying and interviewing nascent entrepreneurs and a controlgroup, and (2) the content of the interviews. Each of the 38 chapters in the handbook was written by a scholar in the ERCwho reports on a key theoretical perspective and variables associated with thattheory. The results showed the great diversity and variety in the process ofbusiness creation. Chapters in Part I, "Demographic Characteristics of theEntrepreneur," discuss the theory, measures, and evidence about thedemographic characteristics of both nascent entrepreneurs and the comparisongroup. Aspects discussed include age and other demographics, income and networth, work and education background, and family background. Part II, "Cognitive Characteristics of the Entrepreneur," surveysthe cognitive characteristics that might determine whether nascententrepreneurs think differently than the comparison group and how types ofnascent entrepreneurs might be distinguished. Topics surveyed include careerreasons, job and life satisfaction, entrepreneurial expectations, innovationand problem-solving style, and social skills. Chapters in Part III, "The Start-up Process," explore the process ofbusiness formation. They describe the kinds and types of businesses, steps andphases of the process, social networks, funding, and business expectations. Part IV, "The Entrepreneurial Environment," explores the context ofthe startup effort and the strategic and technology orientations of theemerging new firms. Three appendixes explain the PSED data collection process, datadocumentation and preparation, use of weights, and how analysis of the datasets can be conducted. (TNM)
455 citations
"Entrepreneurial tenacity and self-e..." refers background in this paper
...Entrepreneurs are more optimistic than others in the population (Gartner, 2004)....
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TL;DR: In this paper, the authors used a random sample of 217 patent inventors in the medical industry (surgery devices) to address these questions and found that entrepreneurs score significantly higher on self-efficacy and on two distinct aspects of perseverance than did non-entrepreneurs.
Abstract: New business formation is a formidable and daunting task, which may require personal perseverance and self-efficacy. If this is indeed the case, will entrepreneurs and non-entrepreneurs differ on such attributes? Also, if high levels of perseverance and self-efficacy help entrepreneurs to overcome setbacks, snags, and obstacles, do these positive attributes co-occur with significant personal costs, such as the tendency to experience regretful thinking? This study uses a random sample of 217 patent inventors in the medical industry (surgery devices) to address these questions. Results indicate that entrepreneurs score significantly higher on self-efficacy and on two distinct aspects of perseverance—perceived control over adversity and perceived responsibility regarding outcome of adversity—than did non-entrepreneurs. Also, although entrepreneurs report the same number of regrets, their regrets are stronger and are qualitatively different from those reported by non-entrepreneurs. These findings suggest that perseverance and self-efficacy do indeed co-occur with regretful thinking. Finally, post hoc analysis reveals that the higher the overall perseverance scores of patent inventors, the higher their annual earnings. We conclude by examining the implications for theory, researcher, and practice. Copyright © 2005 John Wiley & Sons, Ltd.
409 citations
"Entrepreneurial tenacity and self-e..." refers background or result in this paper
...Markman et al. (2005) give tenacity the label of entrepreneurial perseverance, a trait consisting of perceived control over adversity and perceived responsibility regarding outcomes of adversity, and define it as one’s tendency to persist and endure in the face of adversity....
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...…as one of the key points of difference between managers and entrepreneurs (Chen et al., 1998) and also between inventors and entrepreneurs (Markman et al., 2005); however; a recent study presented contradictory evidence (Hurst 2019) such that a nuanced examination of the relationships…...
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..., 1998) and also between inventors and entrepreneurs (Markman et al., 2005); however; a recent study presented contradictory evidence (Hurst 2019) such that a nuanced examination of the relationships seems prudent and timely....
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