Personality characteristics and the process of start-up: the moderating role of institutional environment

DECISION - Tập 45 - Trang 287-300 - 2018
M. Kannadhasan1, Pankaj Singh1, Parikshit Charan1, Pavan Kumar Balivada2
1Indian Institute of Management Raipur, Raipur, India
2Institute of Management Techonology, Hyderabad, India

Tóm tắt

The study investigates the relationship between entrepreneur’s personality characteristics, i.e. need for achievement and internal locus of control, with the process of start-up. Besides, this study examines the role of risk propensity as a mediator in the relationship between personality characteristics and the process of start-up. Also, this study assesses the interaction effects of institutional environment on the relationship between risk propensity and the process of start-ups. Data were collected through a single cross-sectional survey from 478 entrepreneurs in India. The study used partial least squares approach to path modelling to examine the proposed relationship in the research model. After controlling the effects of risk propensity, the results reveal internal locus of control and need for achievement are significantly related to start-up process. Furthermore, the relationship between risk propensity and start-up was moderated by institutional environment. Findings of the study indicate the importance of personal characteristics in the process of start-up. The study also emphasizes how the institutional environment enhances the level of the process of start-up. Moreover, this study is useful in differentiating personality characteristics from non-entrepreneurs.

Tài liệu tham khảo

Antoncic B, Bratkovic Kregar T, Singh G, DeNoble AF (2015) The big five personality–entrepreneurship relationship: evidence from S lovenia. J Small Bus Manag 53(3):819–841 Audretsch DB (1991) New-firm survival and the technological regime. Rev Econ Stat 73(3):441–450 Bakotić D, Kružić D (2010) Students’ perceptions and intentions towards entrepreneurship: the empirical findings from Croatia. Bus Rev Camb 14(2):209 Baron RM, Kenny DA (1986) J Person Soc Psychol 51:1173–1182. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/3806354 Baum JR, Locke EA (2004) The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. J Appl Psychol 89(4):587 Baum JR, Locke EA, Smith KG (2001) A multidimensional model of venture growth. Acad Manag J 44(2):292–303 Bearse PJ (1982) A study of entrepreneurship by region and SMSA size. Front Entrep Res 2(1):78–112 Begley TM (1995) Using founder status, age of firm, and company growth rate as the basis for distinguishing entrepreneurs from managers of smaller businesses. J Bus Ventur 10(3):249–263 Begley TM, Boyd DP (1987) Psychological characteristics associated with performance in entrepreneurial firms and smaller businesses. J Bus Ventur 2:79–93. https://doi.org/10.1016/0883-9026(87)90020-6 Borland CM (1975) Locus of control, need for achievement and entrepreneurship. Doctoral dissertation, ProQuest Information & Learning Bouchikhi H (1993) A constructivist framework for understanding entrepreneurship performance. Organ Stud 14(4):549–570 Brockhaus RH, Horwitz PS (1986) The psychology of the entrepreneur. In: Sexton D, Smilor RW (eds) The art and science of entrepreneurship. Ballinger, Cambridge Brockhaus RH, Nord WR (1979) An exploration of factors affecting the entrepreneurial decision: personal characteristic versus environmental conditions. In: Academy of management proceedings, vol 1979. Academy of Management Briarcliff Manor, New York, pp 364–368 Bromiley P, Curley SP (1992) Individual differences in risk taking. In: Yates JF (ed) Wiley series in human performance and cognition. Risk-taking behavior. John Wiley & Sons, Oxford, pp 87–132 Busenitz LW, Gomez C, Spencer JW (2000) Country institutional profiles: unlocking entrepreneurial phenomena. Acad Manag J 43(5):994–1003 Cameron B, Myers JL (1966) Some personality correlates of risk taking. J Gen Psychol 74(1):51–60 Cavusgil ST (1984) Organizational characteristics associated with export activity. J Manag Stud 21(1):3–22. https://doi.org/10.1111/j.1467-6486.1984.tb00222.x Chandler GN, Hanks SH (1993) Measuring the performance of emerging businesses: a validation study. J Bus Ventur 8(5):391–408 Chell E (1985) The entrepreneurial personality: A few ghosts laid to rest? Int Small Bus J 3(3):43–54 Chiles TH, Bluedorn AC, Gupta VK (2007) Beyond creative destruction and entrepreneurial discovery: a radical Austrian approach to entrepreneurship. Organ Stud 28(4):467–493. https://doi.org/10.1177/0170840606067996 Chin W (1998) The partial least squares approach to structural equation modeling. Mod Methods Bus Res 295(2):295–336. https://doi.org/10.1016/j.aap.2008.12.010 Chin WW, Newsted PR (1999) Structural equation modeling analysis with small samples using partial least squares. Stat Strateg Small Sample Res 1(1):307–341 Chin WW, Marcolin BL, Newsted PR (2003) A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Inf Syst Res 14(2):189–217 Chye Koh H (1996) Testing hypotheses of entrepreneurial characteristics: a study of Hong Kong MBA students. J Manag Psychol 11(3):12–25 Cohen J (1988) Statistical power analysis for the behavioral sciences, 2nd edn. Erlbaum, Hillsdale Cohen JF (2001) Environmental uncertainty and managerial attitude: effects on strategic planning, non-strategic decision-making and organisational performance. S Afr J Bus Manag 32(3):17–31 Collins CJ, Hanges PJ, Locke EA (2004) The relationship of achievement motivation to entrepreneurial behavior: a meta-analysis. Human Perform 17(1):95–117 Colton RM, Udell GG (1976) The national science foundation’s innovation centers—an experiment in training potential entrepreneurs and innovators (Pre-1986). J Small Bus Manag 14(000002):11 De Carolis DM, Litzky BE, Eddleston KA (2009) Why networks enhance the progress of new venture creation: the influence of social capital and cognition. Entrep Theory Pract 33(2):527–545. https://doi.org/10.1111/j.1540-6520.2009.00302.x Di Zhang D, Bruning E (2011) Personal characteristics and strategic orientation: entrepreneurs in Canadian manufacturing companies. Int J Entrep Behav Res 17(1):82–103 Dubini P (1989) The influence of motivations and environment on business start-ups: some hints for public policies. J Bus Ventur 4(1):11–26 Ecosystem G. ranking of startup (2018) India ranks 37th in global startup ecosystem in 2017 Efron B, Gong G (1983) A leisurely look at the bootstrap, the jackknife, and cross-validation. Am Stat 37(1):36–48. https://doi.org/10.1080/00031305.1983.10483087 Fassott G, Henseler J, Coelho PS (2016) Testing moderating effects in PLS path models with composite variables. Ind Manag Data Syst 116(9):1887–1900 Forlani D, Mullins JW (2000) Perceived risks and choices in entrepreneurs’ new venture decisions. J Bus Ventur 15(4):305–322. https://doi.org/10.1016/S0883-9026(98)00017-2 Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Market 18(1):39–50. https://doi.org/10.2307/3151312 Gartner WB (1985) A conceptual framework for describing the phenomenon of new venture creation. Acad Manag Rev 10(4):696–706. https://doi.org/10.5465/AMR.1985.4279094 Gasse Y (1982) Elaborations on the psychology of the entrepreneur. In: Encyclopedia of entrepreneurship, 5771 Ghozali I, Latan H (2015) Partial least squares, Konsep, Teknik Dan Aplikasi Menggunakan program Smartpls 3.0 Untuk Penelitian Empiris. Semarang: Badan Penerbit UNDIP Gnyawali DR, Fogel DS (1994) Environments for entrepreneurship development: key dimensions and research implications. Entrep Theory Pract 18:43–62 Gupta VK, Guo C, Canever M, Yim HR, Sraw GK, Liu M (2014) Institutional environment for entrepreneurship in rapidly emerging major economies: the case of Brazil, China, India, and Korea. Int Entrep Manag J 10(2):367–384 Hair JF, Ringle CM, Sarstedt M (2012a) Partial least squares: The better approach to structural equation modeling? Long Range Plan 45(5–6):312–319. https://doi.org/10.1016/j.lrp.2012.09.011 Hair JF, Sarstedt M, Ringle CM, Mena JA (2012b) An assessment of the use of partial least squares structural equation modeling in marketing research. J Acad Mark Sci 40(3):414–433. https://doi.org/10.1007/s11747-011-0261-6 Hansemark OC (2003) Need for achievement, locus of control and the prediction of business start-ups: a longitudinal study. J Econ Psychol 24(3):301–319 Heckert TM, Cuneio G, Hannah AP, Adams PJ, Droste HE, Mueller MA, Roberts LL (2000) Creation of a new needs assessment questionnaire. J Soc Behav Person 15(1):121 Helm S, Eggert A, Garnefeld I (2010) Modeling the impact of corporate reputation on customer satisfaction and loyalty using partial least squares. In: Handbook of partial least squares, pp 515–534 Henseler J, Hubona G, Ray PA (2016) Using PLS path modeling in new technology research: updated guidelines. Ind Manag Data Syst 116(1):2–20 Herron L, Robinson RB Jr (1993) A structural model of the effects of entrepreneurial characteristics on venture performance. J Bus Ventur 8(3):281–294 Hulland J (1999) Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strateg Manag J 20(2):195–204. https://doi.org/10.1002/(SICI)1097-0266(199902)20:2%3c195:AID-SMJ13%3e3.3.CO;2-Z Iacobucci D, Duhachek A (2003) Advancing alpha: measuring reliability with confidence. J Consum Psychol 13(4):478–487. https://doi.org/10.1207/S15327663JCP1304_14 Jain R, Ali SW (2012) Personal characteristics of Indian entrepreneurs and intrapreneurs: an empirical study. Manag Labour Stud 37(4):295–322 Johnson BR (1990) Toward a multidimensional model of entrepreneurship: the case of achievement motivation and the entrepreneur. Entrep Theory Pract 14(3):39–54 Kannadhasan M, Nandagopal R (2010) Influence of decision makers’ characteristics on risk analysis in strategic investment decisions. J Mod Account Audit 6(4):38 Kannadhasan M, Aramvalarthan S, Pavan Kumar B (2014) Relationship among cognitive biases, risk perceptions and individual’s decision to start a venture. Decision 41(1):87–98. https://doi.org/10.1007/s40622-014-0029-1 Keh HT, Foo M Der, Lim BC (2002) Opportunity evaluation under risky conditions: the cognitive processes of entrepreneurs. Entrep Theory Pract 27(2):125–148. https://doi.org/10.1111/1540-8520.00003 Korunka C, Frank H, Lueger M, Mugler J (2003) The entrepreneurial personality in the context of resources, environment, and the startup process—a configurational approach. Entrep Theory Pract 28(1):23–42 Kostova T (1997) Country institutional profiles: concept and measurement. In: Academy of management proceedings, vol 1997 Academy of Management Briarcliff Manor, New York, pp 180–184 Krueger N (1993) The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability. Entrep Theory Pract 18(1):5–21 Langan-Fox J, Roth S (1995) Achievement motivation and female entrepreneurs. J Occup Organ Psychol 68(3):209–218 Lau C-M, Busenitz LW (2001) Growth intentions of entrepreneurs in a transitional economy: the People’s Republic of China. Entrep Theory Pract 26(1):5–20 Lefcourt H (1976) Locus of control: current trends in theory and research. Lawrence, Hillsdale Low MB, Macmillan IC (1988) Entrepreneurship: past research and future challenges. J Manag 14(2):139–161. https://doi.org/10.1177/014920638801400202 Matricardi LR (2006) Locus of control and risk behavior among college students. Retrieved from https://rdw.rowan.edu/etd/905 McClelland DC (1961) The achievement society. Von Nostrand, Princenton McClelland DC (1965) N achievement and entrepreneurship: a longitudinal study. J Pers Soc Psychol 1(4):389 McClelland DC (1987a) Characteristics of successful entrepreneurs. J Creat Behav 21(3):219–233 McClelland DC (1987b) Human motivation. CUP Archive, Cambridge Miner JB, Smith NR, Bracker JS (1989) Role of entrepreneurial task motivation in the growth of technologically innovative firms. J Appl Psychol 74(4):554 Mitchell RK, Smith B, Seawright KW, Morse EA (2000) Cross-cultural cognitions and the venture creation decision. Acad Manag J 43(5):974–993 Mitchell RK, Busenitz LW, Bird B, Marie Gaglio C, McMullen JS, Morse EA, Smith JB (2007) The central question in entrepreneurial cognition research 2007. Entrep Theory Pract 31(1):1–27 Mullins JW, Forlani D, Cardozo RN (2002) Seeing differently, acting differently? New venture perceptions and decisions of managers and successful entrepreneurs. J Res Market Entrep 4(3):163–190 Naffziger DW, Hornsby JS, Kuratko DF (1994) A proposed research model of entrepreneurial motivation. Entrep Theory Pract 18(3):29–42 North DC (1991) Institutions. J Econ Perspect 5(1):97–112 Nunnally JC, Bernstein IH (1994) Psychometric theory, 3rd edn. McGraw-Hill, New York Olson SF, Currie HM (1992) Female entrepreneurs: personal value systems and business strategies in a male-dominated industry. J Small Bus Manag 30(1):49 Peng MW, Zhou JQ (2005) How network strategies and institutional transitions evolve in Asia. Asia Pac J Manag 22(4):321–336 Phares EJ (1976) Locus of control in personality. General Learning Press, New York Plax TG, Rosenfeld LB (1976) Correlates of risky decision-making. J Pers Assess 40(4):413–418 Porter ME, Teisberg EO (2006) Redefining health care: creating value-based competition on results. Harvard Business Press, Cambridge Rauch A, Frese M (2007) Let’s put the person back into entrepreneurship research: a meta-analysis on the relationship between business owners’ personality traits, business creation, and success. Eur J Work Organ Psychol 16(4):353–385 Reimers-Hild CI (2005) Locus of control, need for achievement and risk taking propensity: a framework for the “entrepreneurial” learner of the 21st century. ETD collection for University of Nebraska - Lincoln. http://digitalcommons.unl.edu/dissertations/AAI3180813 Rotter JB (1966) Generalized expectancies for internal versus external control of reinforcement. Psychol Monogr Gen Appl 80(1):1 Sagie A, Elizur D (1999) Achievement motive and entrepreneurial orientation: a structural analysis. J Organ Behav Int J Ind Occup Organ Psychol Behav 20(3):375–387 Sarasvathy DK, Simon HA, Lave L (1998) Perceiving and managing business risks: differences between entrepreneurs and bankers. J Econ Behav Organ 33(2):207–225. https://doi.org/10.1016/S0167-2681(97)00092-9 Schere JL (1982) Tolerance of ambiguity as a discriminating variable between entrepreneurs and managers. In: Academy of management proceedings, vol 1982. Academy of Management Briarcliff Manor, New York, pp 404–408 Schneider J (2009) A rational expectations equilibrium with informative trading volume. J Finance 64(6):2783–2805 Schwer RK, Yucelt U (1984) A study of risk-taking propensities among small business entrepreneurs and managers: an empirical evaluation. Am J Small Bus 8(3):31–40 Shane S (2000) Prior knowledge and the discovery of entrepreneurial opportunities. Organ Sci 11(4):448–469. https://doi.org/10.1287/orsc.11.4.448.14602 Shane S, Venkataraman S (2000) The promise of entrepreneurship as a field of research. Acad Manag Rev 25(1):217–226 Shaver KG, Scott LR (1991) Person, process, choice: the psychology of new venture creation Kelly G. Shaver. Entrep Theory Pract 16(2):23–45 Shepherd DA, Krueger N (2002) Cognition, entrepreneurship and teams: an intentions-based perspective. Entrep Theory Pract 27(2):167–185 Sherman R (1968) Personality and strategic choice. J Psychol 70(2):191–197 Simon M, Houghton SM (2002) The relationship among biases, misperceptions, and the introduction of pioneering products: examining differences in venture decision contexts. Entrep Theory Pract 27(2):105–124 Simon M, Houghton SM, Aquino K (2000) Cognitive biases, risk perception, and venture formation: how individuals decide to start companies. J Bus Ventur 15(98):113–134. https://doi.org/10.1016/S0883-9026(98)00003-2 Singh R, Hills GE, Hybels RC, Lumpkin GT (1999) Opportunity recognition through social network characteristics of entrepreneurs. In: Frontiers of entrepreneurship research, 228241 Sobel ME (1982) Asymptotic confidence intervals for indirect effects in structural equation models. Soc Methodol 13:290–312 Staples DS, Hulland JS, Higgins CA (1998) A self-efficacy theory explanation for the management of remote workers in virtual organizations. J Comput Med Commun. https://doi.org/10.1111/j.1083-6101.1998.tb00085.x Stewart WH Jr, Roth PL (2001) Risk propensity differences between entrepreneurs and managers: a meta-analytic review. J Appl Psychol 86(1):145 Tang J, Tang Z (2007) The relationship of achievement motivation and risk-taking propensity to new venture performance: a test of the moderating effect of entrepreneurial munificence. Int J Entrep Small Bus 4(4):450–472 The World Bank Group Flagship Report (2018) Doing business reforming to create jobs, 15th edn Tsang EWK, Kwan K-M (1999) Replication and theory development in organizational science: a critical realist perspective. Acad Manag Rev 24(4):759–780. https://doi.org/10.5465/AMR.1999.2553252 Urban B (2006) Entrepreneurship in the rainbow nation: effect of cultural values and ESE on intentions. J Dev Entrep 11(03):171–186 Venkatapathy R (1984) Locus of control among entrepreneurs: a review. Psychol Stud 29(1):97–100 Westhead P, Wright M (1998) Novice, portfolio, and serial founders: Are they different? J Bus Ventur 13(3):173–204 Wu S, Matthews, Dagher GK (2007) Need for achievement, business goals, and entrepreneurial persistence. Manag Res News 30(12):928–941 Yadav A (2016) How startup culture in India differs from the U.S. Forbes. Retrieved from https://www.forbes.com/sites/ajayyadav/2016/08/18/how-startup-culture-in-india-differs-from-the-u-s/#1e711fcbedb6. Retrieved August 27, 2018