Journal Cover
Journal of Business Venturing
Journal Prestige (SJR): 5.212
Citation Impact (citeScore): 9
Number of Followers: 26  
  Hybrid Journal Hybrid journal (It can contain Open Access articles)
ISSN (Print) 0883-9026
Published by Elsevier Homepage  [3157 journals]
  • International entrepreneurship beyond individuals and firms: On the
           systemic nature of international opportunities
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Tuija Mainela, Vesa Puhakka, Sakari Sipola The present study approaches opportunities in international entrepreneurship from a systemic perspective. Based on research on the collectiveness of opportunities in international entrepreneurship and the concepts of activity and object from activity theory, we develop a systemic conceptualization of opportunity-oriented international entrepreneurship. Through an empirical study in Finland and Israel, we depict six collective opportunity beliefs, considered from the viewpoints of society, international venture, and outcome expectations. Furthermore, we induce three modalities for international opportunity as the object of collective activity and model systemic opportunity shaping as the core activity of international entrepreneurship.
  • The power of positivity' The influence of positive psychological
           capital language on crowdfunding performance
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Aaron H. Anglin, Jeremy C. Short, Will Drover, Regan M. Stevenson, Aaron F. McKenny, Thomas H. Allison We extend the entrepreneurship literature to include positive psychological capital — an individual or organization's level of psychological resources consisting of hope, optimism, resilience, and confidence — as a salient signal in crowdfunding. We draw from the costless signaling literature to argue that positive psychological capital language usage enhances crowdfunding performance. We examine 1726 crowdfunding campaigns from Kickstarter, finding that entrepreneurs conveying positive psychological capital experience superior fundraising performance. Human capital moderates this relationship while social capital does not, suggesting that costly signals may, at times, enhance the influence of costless signals. Post hoc analyses suggest findings generalize across crowdfunding types, but not to IPOs.
  • Entrepreneurial orientation and innovation in family SMEs: Unveiling the
           (actual) impact of the Board of Directors
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Unai Arzubiaga, Josip Kotlar, Alfredo De Massis, Amaia Maseda, Txomin Iturralde Drawing on stewardship and resource dependence theories, we examine how the board of directors (BoD) influences the link between entrepreneurial orientation (EO) and ambidextrous innovation in small and medium sized family firms (family SMEs). Our analysis of 230 Spanish family SMEs shows that family involvement in the BoD has a negative effect on their ability to turn EO into innovation. Moreover, we show that the BoD's strategic involvement in service and control tasks and the provision of knowledge and skills have positive effects, whereas the intensity of BoD activity has a surprisingly negative effect. These findings underscore that the effects of the BoD on the entrepreneurship-innovation link are more complex than previously thought, pointing to the important role of both BoD composition and BoD functioning for enabling innovation in family SMEs.
  • Signaling for more money: The roles of founders' human capital and
           investor prominence in resource acquisition across different stages of
           firm development
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Eun-Jeong Ko, Alexander McKelvie We use signaling theory to explain how new ventures effectively signal future prospects to acquire external resources. Based on a sample of 235 new ventures drawn from a unique dataset combining multiple sources, we examine the signals of founders' human capital (i.e., education, industry experience, and founding experience) and investor prominence and their influence on the amount of external funding received across two stages of venture funding. We find that founders' founding experience and education have the greatest effects for acquiring first-round financing, but in later stages, only the signaling effect from education remains. Furthermore, we find important interactions between founders' human capital and investor prominence in the second round of funding. By utilizing lagged funding information, we show that different types of signals have a dynamic and temporal impact on new ventures' resource acquisition, including the persistence of some signals and the temporariness of others.
  • The opportunity not taken: The occupational identity of entrepreneurs in
           contexts of poverty
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Angelique Slade Shantz, Geoffrey Kistruck, Charlene Zietsma Innovative entrepreneurship is an essential but often missing outcome of poverty alleviation efforts. This qualitative study set in rural Ghana explores the occupational identity of entrepreneurs, the institutions that shape it in isolated “island networks”, and how it influences entrepreneurs' practices and decisions. We find that the institutional forces of “collectivism” and “fatalism” feature prominently. Being an entrepreneur in such settings means being a mentor, market link, and community safety net, and the types of opportunities entrepreneurs pursue are largely seen as pre-destined and inherited rather than individually chosen. As a result, the pursuit of innovative opportunities may be significantly limited.
  • Finding the threshold: A configurational approach to optimal
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Brent McKnight, Charlene Zietsma How can new ventures successfully distinguish themselves from competitors and incumbents while also ensuring that the new venture is seen as legitimate and appropriate' This tension is challenging. If a new venture is not seen as legitimate, usually by conforming to typical models of firms in its category, it will struggle to access resources, attract customers, satisfy regulators and curry favor from other stakeholders. This makes commercialization challenging. At the same time, entrepreneurs must convince customers, investors, and suppliers that their nascent firm is offering something new and valuable. This is the challenge of optimal distinctiveness: how different can and should firms be'Prior research addressing the challenge of optimal distinctiveness has suggested that firms strike a strategic balance between conformity for legitimation and competitive differentiation, and also that firms should be as different as legitimately possible. While similar, there is ambiguity in these prescriptions. Should firms perfectly balance legitimacy and differentiation, or aggressively differentiate themselves beyond a base level of legitimacy' How to achieve optimal distinctiveness remains unclear. Clouding matters further, how a firm seeks legitimation and pursues differentiation is contextual depending on industry, technology stage, constituents and other factors. This means that the path to optimal distinctiveness likely demonstrates equifinality.We adopt a configurational approach, exploring optimal distinctiveness in the context of newly commercializing Canadian clean technology firms. We consider how firms use differentiating framing and collaboration strategies in the context of radical technology, incumbent dependency, relevant entrepreneurial experience, and presence in international markets. Rather than assuming a singular point of optimal distinctiveness, we explore how different combinations of strategies and conditions can lead to successful commercialization. Methodologically, we adopt an exploratory qualitative comparative analysis (QCA) approach.Our study elaborates theory on optimal distinctiveness by developing the notion of a legitimacy threshold. We argue that successfully commercializing firms are those that seek levels of differentiation that go beyond merely striking a strategic balance. In the process we identify combinations of strategies and contextual conditions associated with successful commercialization as well as non-commercialization.
  • Equity crowdfunding: First resort or last resort'
    • Abstract: Publication date: July 2018Source: Journal of Business Venturing, Volume 33, Issue 4Author(s): Xavier Walthoff-Borm, Armin Schwienbacher, Tom Vanacker Prior research has focused on the factors that affect funding success on equity crowdfunding platforms, but a detailed understanding of the factors that drive firms to search for equity crowdfunding in the first place is lacking. Drawing on the pecking order theory, we argue that firms list on equity crowdfunding platforms as a “last resort”—that is, when they lack internal funds and additional debt capacity. In line with the pecking order theory, the empirical evidence shows that firms listed on equity crowdfunding platforms are less profitable, more often have excessive debt levels, and have more intangible assets than matched firms not listed on these platforms. We discuss the implications for theory and practice.
  • Organizational hybrids as biological hybrids: Insights for research on the
           relationship between social enterprise and the entrepreneurial ecosystem
    • Abstract: Publication date: Available online 27 June 2018Source: Journal of Business VenturingAuthor(s): Jeffery S. McMullen Using the study of hybridization in evolutionary biology as metaphorical inspiration, I offer a thought experiment about the emergence and proliferation of social enterprise and the influence of hybrid organizing on the entrepreneurial ecosystem. After establishing a number of analogues between biological and organizational hybrids, I analyze the degree to which social enterprise may be indicative of hybrid speciation – i.e., a new organizational form – versus introgressive hybridization – i.e., a variant of a more traditional organizational form. I then use the metaphor to examine whether social enterprise: (1) possesses distinct rules and features, (2) is shaped by or shaping the entrepreneurial ecosystem, (3) still remains a hybrid organization, and (4) might even be considered an invasive species.
  • Accelerating strategic fit or venture emergence: Different paths adopted
           by corporate accelerators
    • Abstract: Publication date: Available online 27 June 2018Source: Journal of Business VenturingAuthor(s): Raj K. Shankar, Dean A. Shepherd Corporate accelerators (CAs) are a fast-emerging form of corporate engagement with startups. Equating them with independent startup accelerators and/or corporate venturing limits our understanding of how and why corporations run CA programs and to what end. In this inductive grounded theory study, we explore how corporations design and run CAs and to what effect. This study of four CAs reveals that corporations manage accelerators via one of two distinct processes: namely, accelerating strategic fit or accelerating venture emergence. Our inductive models of these corporate acceleration processes provide new insights into how CAs operate within corporations. Strategic posture and investment time horizon influence corporations' choice of acceleration path and their identification of potential ventures for acceleration. Our study deconstructs what comprises the core corporate acceleration processes and explains how the two pathways result in distinct outcomes—nurturing innovations or nurturing ecosystems. We believe these findings can open up rich research opportunities for understanding how corporations engage with entrepreneurial ventures to enhance their entrepreneurialness.
  • Perceived project transition support and employees' assessments of
           entrepreneurial project performance
    • Abstract: Publication date: Available online 25 June 2018Source: Journal of Business VenturingAuthor(s): Holger Patzelt, Judith Behrens, Marcus T. Wolfe, Dean A. Shepherd
  • Out of control or right on the money' Funder self-efficacy and crowd
           bias in equity crowdfunding
    • Abstract: Publication date: Available online 21 June 2018Source: Journal of Business VenturingAuthor(s): Regan M. Stevenson, Michael P. Ciuchta, Chaim Letwin, Jenni M. Dinger, Jeffrey B. Vancouver Our findings extend the entrepreneurship literature by highlighting the mechanism through which self-efficacy can hinder rather than enhance performance in entrepreneurial settings. Using two complementary experimental studies and a third quasi-experimental field study on equity crowdfunding decisions, we demonstrate that self-efficacy is negatively related to decision-making performance. This relationship is mediated by reduced searching effort. Our research also indicates that high self-efficacy funders tend to exhibit a “crowd bias” whereby they over-weight the opinions of the crowd, increasing the likelihood that they will fund poor quality ventures when such ventures are favored by the crowd. We introduce the term crowd bias and explore its effects, establishing that social indicators in the form of crowd cues can exasperate the negative effects of self-efficacy.
  • Business cycles and start-ups across industries: An empirical analysis of
           German regions
    • Abstract: Publication date: Available online 13 June 2018Source: Journal of Business VenturingAuthor(s): Alexander Konon, Michael Fritsch, Alexander S. Kritikos We analyze whether start-up rates in different industries systematically change with business cycle variables. Using a unique data set at the industry level, we mostly find correlations that are consistent with counter-cyclical influences of the business cycle on entries in both innovative and non-innovative industries. Entries into the large-scale industries, including the innovative part of manufacturing, are only influenced by changes in the cyclical component of unemployment, while entries into small-scale industries, like knowledge intensive services, are mostly influenced by changes in the cyclical component of GDP. Thus, our analysis suggests that favorable conditions in terms of high GDP might not be germane for start-ups. Given that both innovative and non-innovative businesses react counter-cyclically in ‘regular’ recessions, business formation may have a stabilizing effect on the economy.
  • Perceived uncertainty and behavioral logic: Temporality and unanticipated
           consequences in the new venture creation process
    • Abstract: Publication date: Available online 8 June 2018Source: Journal of Business VenturingAuthor(s): Yi Jiang, Erno T. Tornikoski In this study, drawing on effectuation theory, we combine analytical strategies for process data to examine inductively and theorize how founder teams' perceptions of uncertainty and behavioral logics develop during new venture creation processes. The results reveal four phases and suggest a possible evolution from a causal conditional relationship between perceived uncertainty and behavioral logics to an integrative relationship. We bring to light the notion of temporality and unanticipated consequences, discuss their central roles in perceived uncertainty, effectuation, and causation, and offer revelatory insights into why and when effectuation is used in relation to uncertainty and entrepreneurial action.
  • The guppy and the whale: Relational pluralism and start-ups' expropriation
           dilemma in partnership formation
    • Abstract: Publication date: Available online 7 June 2018Source: Journal of Business VenturingAuthor(s): Joris Knoben, Rene M. Bakker Start-ups have a high need for resources yet face significant risks when forming partnerships with incumbents to access those resources. We propose that a partnership strategy based on relational pluralism, forming multiplex and multifaceted ties with partners, can mitigate these risks. Such ties offer the start-up increased legitimacy and a relational safeguard against resource misappropriation by more powerful partners. However, we propose that there is a limit to the effectiveness of relational pluralism. Its effect is weakened when the start-up becomes entirely dependent on a small set of partners, or when an additional tie yields resources that are redundant. We argue that the start-up only benefits when the gains from relational safeguarding and legitimacy outweigh the costs of dependence and redundancy. We empirically observe the co-evolution of start-ups’ interlocking directorate and strategic alliance networks in the Australian mining industry over a 10-year period. Our results show that start-ups that engage in relational pluralism perform better than both start-ups that form no alliances and start-ups that form stand-alone alliances. Having a very small portfolio of partners or one that skews heavily toward local partners, however, indeed limits the effectiveness of relational pluralism. Intriguingly, we also find that the temporal sequencing of relational pluralism matters. One of our central findings is that the best performing start-ups first form board interlocks with promising partners and add a strategic alliance later. This offers a rare glance at the temporal sequencing in which peripheral start-ups can gain exceptional performance through partnership formation.
  • Early employment expansion and long-run survival: examining employee
           turnover as a context factor
    • Abstract: Publication date: Available online 1 June 2018Source: Journal of Business VenturingAuthor(s): Pernille Gjerløv-Juel, Christina Guenther We investigate under which circumstances early employment growth translates into greater long-run survival. Drawing on Penrose's growth theory, we suggest that the relationship between early employment growth and long-run survival is conditional on employee turnover. We argue that higher employee turnover reduces joint experience in the firm and disrupts the development and eventual exploitation of the firm's productive opportunity set, thereby reducing long-term utilization of early employment expansion. These arguments suggest that the firm's ability to realize long-term benefits of early employment growth is contingent upon low employee turnover following this initial expansion. Using the Danish Integrated Database for Labor Market Research, we show that only when employee turnover is low, will early employment growth lead to higher survival in the long run.
  • Entrepreneurial cognition and the quality of new venture ideas: An
           experimental approach to comparing future-oriented cognitive processes
    • Abstract: Publication date: Available online 1 June 2018Source: Journal of Business VenturingAuthor(s): Arjan J. Frederiks, Basil G. Englis, Michel L. Ehrenhard, Aard J. Groen In the research reported here, we compared how future-oriented cognitive processes underpin differences in the quality of new venture ideas (NVIs) generated by respondents. We primed the use of future-oriented cognitive processes in two experiments. The first experiment shows that prospective thinking leads to NVIs of higher quality in comparison to counterfactual thinking, perspective taking and a control group. The second experiment shows that prospective thinking and perspective taking result in NVIs of higher quality compared to counterfactual thinking and the control group. We also find that prior knowledge of technology strengthens these effects. Post-hoc analyses show that these effects are present when respondents are prompted to generate NVIs, but not when they spontaneously generate NVIs, and that respondents with more prior business experience are more likely to spontaneously generate NVIs. Finally, we discuss contributions our research makes to the literature on entrepreneurial cognition and opportunity recognition, and to practice.
  • Self-employment and allostatic load
    • Abstract: Publication date: Available online 28 May 2018Source: Journal of Business VenturingAuthor(s): Pankaj C. Patel, Marcus T. Wolfe, Trenton A. Williams Self-employment can be stressful and its long-term effects on individual health could be significant; yet, the physiological outcomes of self-employment related stress remain under-explored. Drawing on allostatic load as a long-term biological consequence of physiological wear-and-tear and an indicator of stress response, we use three different studies to provide a more nuanced understanding of the relationship between self-employment and physiological outcomes. In Study 1, based on a sample of 194 self-employed and 1511 employed individuals, we find that self-employment is marginally related to allostatic load and allostatic load marginally mediates the relationship between self-employment and physical, but not mental, health. Study 2, based on a sample of 776 self-employed and 8003 employed individuals, extends these findings, and provides evidence that those who are self-employed for longer periods have a higher allostatic load. Finally, in Study 3 we draw on a sample of 174 twins and, consistent with Study 2, show that those reporting self-employment in two waves (about eight years apart) had a higher allostatic load, however, when leveraging problem-focused coping such individuals experienced lower allostatic load. Taken together, these three studies extend our understanding of the relationship between self-employment and wellbeing.
  • Why and how do founding entrepreneurs bond with their ventures' Neural
           correlates of entrepreneurial and parental bonding
    • Abstract: Publication date: Available online 24 May 2018Source: Journal of Business VenturingAuthor(s): Tom Lahti, Marja-Liisa Halko, Necmi Karagozoglu, Joakim Wincent This paper investigates why and how founding entrepreneurs bond with their ventures. We develop and test theory about the nature of bonding in a functional magnetic resonance imaging (fMRI) study of 42 subjects (21 entrepreneurs and 21 parents). We find that entrepreneurs and parents show similar signs of affective bonding, that self-confidence plays a role in bonding style, and that the degree to which entrepreneurs include their ventures in the self and to which parents include their child in the self influences their ability to make critical assessments. Our findings suggest that bonding is similar for entrepreneurs and parents and that venture stimuli influence reward systems, self-regulatory functions, and mental factors that are associated with judgment.
  • Orchestrating boundaries: The effect of R&D boundary permeability on new
           venture growth
    • Abstract: Publication date: Available online 19 May 2018Source: Journal of Business VenturingAuthor(s): Robert S. Nason, Johan Wiklund, Alexander McKelvie, Michael Hitt, Wei Yu While established firms can efficiently manage their resource portfolio, new ventures must construct resource boundaries by assembling resources. In doing so, new ventures are often pushed to utilize resources that are owned by other actors. These inter-organizational relationship strategies do not expand organizational boundaries, but rather create permeable boundaries. We theorize that boundary permeability confers greater access to resources, but limits control over them. Therefore, new ventures face a risky option: utilize fewer but fully controlled resources or access a broader range of resources under limited control. We examine the effects of R&D boundary permeability across growth dimensions of sales, profitability, and employees using a sample of young knowledge intensive ventures. In doing so, we explore early stage boundary management decisions and reveal opportunities and threats to opening venture boundaries.
  • Bribes as entrepreneurial actions: Why underdog entrepreneurs feel
           compelled to use them
    • Abstract: Publication date: Available online 9 May 2018Source: Journal of Business VenturingAuthor(s): Robert A. Baron, Jintong Tang, Zhi Tang, Yuli Zhang Entrepreneurs often need external resources to found their new ventures. These can be obtained from many sources, but government sponsored programs are an important and often desirable one because they do not require repayment of the funds provided. Resources from such programs should, in principle, be equally available to all entrepreneurs, but in fact, some entrepreneurs—ones often described as underdogs – have restricted access to them. This disadvantage stems, in part, from personal factors they cannot readily change (e.g., gender, age, race, ethnicity, current occupation, family background, experience). The negative effects of being an underdog are especially harmful to entrepreneurs in the context of poor economic conditions, when competition for available resources is intense. In order to overcome such adversity, underdog entrepreneurs offer bribes to persons who control these resources. We hypothesized that there would be a positive relationship between the perception by entrepreneurs that local economic conditions are poor and their use of bribes, and that this relationship would be stronger for “underdog” entrepreneurs than for other entrepreneurs. We also hypothesized that the use of bribes by entrepreneurs and their perception that these bribes will be effective would interact to influence entrepreneurs' decisions to close their new venture. Specifically, bribes would influence such decisions only when they were viewed as effective. Results offered support for these hypotheses, thus providing new insights into why underdog entrepreneurs use bribes to overcome the adversity they face.
  • Brace for impact: Uniting our diverse voices through a social impact frame
    • Abstract: Publication date: Available online 8 May 2018Source: Journal of Business VenturingAuthor(s): Tyler Wry, Helen Haugh
  • Inequality and entrepreneurial thresholds
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Soumodip Sarkar, Carlos Rufín, Jonathan Haughton We explore the relationship between inequality and entrepreneurial activity. Drawing on cross-sectional data from a largescale survey of the economic conditions of individuals across India, we develop a number of dimensions of inequality to explore empirically how inequality interacts with entrepreneurship, operationalized as self-employment or as employing other people. We find compelling evidence that there are thresholds to becoming self-employed, and even more so to assembling the combinations of resources and personal attributes required to become an employer. Greater inequality leaves more people unable to make the transition to self-employment, leaving casual laboring as the occupation of necessity. At the same time, inequality increases the number of employers in a society, by concentrating resources - particularly land and finance - enough for significant numbers of people to be able to cross this higher threshold. Lastly, greater differentiation into social or religious groups curtails the ability to cross either entrepreneurial threshold, presumably by limiting the extent and benefits of social networks of value for entrepreneurship.
  • Perceived psychological distance, construal processes, and abstractness of
           entrepreneurial action
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): H. Shawna Chen, Ronald K. Mitchell, Keith H. Brigham, Roy Howell, Robert Steinbauer In this paper we develop the concept of abstractness as an underlying theoretical structure of entrepreneurial action, specifically to connect individual perception of psychological distance to entrepreneurial action. We draw on construal level theory to model distance and abstractness, using construal as the mechanism where, in new venture creation, entrepreneurs are expected over time to engage in more abstract action when they perceive greater psychological distance. Based on longitudinal data from 350 entrepreneurs, results from cross-lagged panel analysis indicate that psychological distance shapes the actions of entrepreneurs over time through social distance and hypotheticality. These findings advance entrepreneurial action research, practice, and pedagogy by showing that the apparently implicit relationship between entrepreneurial perception and entrepreneurial action may actually be quite explicit, when abstractness of action is seen as a construal-mechanism-based function of psychological distance.
  • Passion for entrepreneurship or passion for the product' A conjoint
           analysis of angel and VC decision-making
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Benjamin J. Warnick, Charles Y. Murnieks, Jeffery S. McMullen, Wade T. Brooks Passion is important to venture investors, but what specifically do they want entrepreneurs to be passionate about' This study theorizes that angel investors and venture capitalists consider both entrepreneurs' passion for activities related to the product or service the venture provides (i.e., product passion) and passion for founding and developing new ventures (i.e., entrepreneurial passion). We demonstrate that both types of passion become more appealing when the investor perceives that the entrepreneur is highly open and receptive to feedback, suggesting that openness to feedback mitigates potential concerns associated with passion in its extremes. We further find that venture investors differ in their consideration of passion; angel investors and venture capitalists with more investing experience place greater emphasis on the combination of product passion and openness to feedback, whereas those with more entrepreneurial experience emphasize the combination of entrepreneurial passion and openness to feedback.
  • Feeling capable and valued: A prosocial perspective on the link between
           empathy and social entrepreneurial intentions
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Sophie Bacq, Elisa Alt Empathy is a key trait distinguishing social entrepreneurs from traditional entrepreneurs, and an important antecedent of social entrepreneurial (SE) intentions. Yet, little research explains the mechanisms through which empathy motivates SE intentions. We argue that studying the link between the prosocial trait of empathy and the prosocial outcome of SE intentions requires a prosocial lens that traditional entrepreneurial intent theories cannot offer. Building on prosocial motives research, we propose that empathy explains SE intentions through two complementary mechanisms: self-efficacy (an agentic mechanism), and social worth (a communal mechanism). We find support for our hypotheses in a study of 281 university students.
  • Are SMEs with immigrant owners exceptional exporters'
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Horatio M. Morgan, Sui Sui, Matthias Baum Immigrant owners possess valuable human and social capital from which small and medium-sized enterprises (SMEs) might derive advantages when internationalizing. According to this resource-based perspective, such advantages might be manifested in immigrant-owned SMEs' enhanced ability to identify, evaluate, develop and exploit opportunities in international markets. However, a cognitive perspective offers an opposing view: insofar as immigrant owners are more prone to overconfidence than their non-immigrant counterparts when making internationalization decisions, immigrant-owned SMEs might reap less financial rewards from potentially high-risk international markets. We pit the two perspectives against each other theoretically and empirically by evaluating a) the relationship between business owners' immigrant background and SMEs' export intensity, and b) the extent to which such background moderates the relationship between SMEs' export intensity and (risk-adjusted) financial performance. Based on a representative sample of 9977 Canadian SMEs, we find that the presence of immigrant owners positively impacts export intensity, but negatively moderates the relationship between export intensity and financial performance. We interpret this evidence, combined with supplementary analyses, as support for a cognitive theory of international entrepreneurship in general, and particularly in relation to the role and consequences of entrepreneurs' immigrant background.
  • Entrepreneurs' perceived exit performance: Conceptualization and scale
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Steffen Strese, Philipp Gebhard, David Feierabend, Malte Brettel Recently, research on entrepreneurs who exit their firms has intensified. Scholars agree that the outcome of such entrepreneurial exits needs to be assessed based on the individual entrepreneur's perception and on multiple dimensions. Yet, to date we lack theory and measures that capture this outcome, which we define as entrepreneurs' perceived exit performance (PEP). This study introduces a theoretical framework for the PEP construct and develops a scale to measure it along four dimensions: personal financial benefits, personal reputation, employee benefits, and firm mission persistence. We discuss the wide applicability of the scale and a variety of research opportunities.
  • Beyond financing: crowdfunding as an informational mechanism
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Jordana Viotto da Cruz Besides providing financial support for new ventures, crowdfunding can bring additional advantages for entrepreneurs. In this paper, we test the hypothesis that crowdfunding also serves as an informational mechanism. Using a unique dataset built with publicly available data from Internet-based sources, and after controlling for alternative explanations, we empirically show that when not successful on crowdfunding, thus not accessing capital, project owners may decide to release the product in the market if contributions suggest positive valuation from the “crowd”.
  • Giving up the hats' Entrepreneurs' role transitions and venture growth
    • Abstract: Publication date: May 2018Source: Journal of Business Venturing, Volume 33, Issue 3Author(s): Blake D. Mathias, David W. Williams At the start of a venture, most entrepreneurs wear many hats. However, entrepreneurs often cannot remain involved in every aspect of the venture process, and so they face important decisions about which roles to give up, which roles to retain, and which new roles to adopt. For many, this process is particularly difficult as roles represent more than just something entrepreneurs do but also an important part of who they are (role identities). Through an inductive field study, this research reveals how and why entrepreneurs add, subtract, or retain roles. We find three mechanisms—perceiving the entrepreneur as someone who ‘gives up the hats,’ discovering new meaning (new role identities) within the venture, and role identity imprinting—lead to a narrowing of one's role set, which ultimately influences venture growth.
  • The intersection of entrepreneurship and selling: An interdisciplinary
           review, framework, and future research agenda
    • Abstract: Publication date: Available online 1 May 2018Source: Journal of Business VenturingAuthor(s): Russell S. Matthews, Dominic M. Chalmers, Simon S. Fraser Selling is integral to entrepreneurship, yet it has rarely been a focal topic of analysis for entrepreneurship scholars. To address this, we undertake a broad-ranging systematic literature review of research that in some way explores selling within entrepreneurial contexts. We inductively develop a framework that orders extant research into selling antecedents, activities, contexts, and outcomes. Then, drawing on these entrepreneurship-selling intersections, we suggest opportunity theory can be extended by integrating critical insights from selling literatures. In particular, we address ego-centric views of entrepreneurship which prioritize entrepreneurial agency, and advocate for the incorporation of customer agency into synchronized processes of opportunity identification, refinement, and exploitation. The article concludes that a promising avenue for future theory development resides in the study of situated sales interactions, which can serve as an empirical vista to the underexplored entrepreneur-customer nexus.
  • Signaling in science-based IPOs: The combined effect of affiliation with
           prestigious universities, underwriters, and venture capitalists
    • Abstract: Publication date: Available online 1 May 2018Source: Journal of Business VenturingAuthor(s): Massimo G. Colombo, Michele Meoli, Silvio Vismara This paper studies the combined effect of affiliation with prestigious universities, underwriters, and venture capitalists on the valuation of biotech ventures at IPO and their post-IPO performance. We argue that affiliation to a prestigious university provides the affiliated firm with a quality signal in the scientific domain. The pure quality signaling effect of the affiliation is isolated from the substantive benefits it provides by performing a difference-in-difference approach based on the scientific reputation of scientists in firms' upper echelons. The signal is stronger the weaker is the scientific reputation of scientists of the focal IPO-firm and is additive to those provided by prestigious venture capitalists and underwriters. Results for a sample of 254 European biotech ventures that went through an IPO between 1990 and 2009 confirm our predictions.
  • Signals' flexibility and interaction with visual cues: Insights from
    • Abstract: Publication date: Available online 30 April 2018Source: Journal of Business VenturingAuthor(s): David J. Scheaf, Blakley C. Davis, Justin W. Webb, Joseph E. Coombs, Jared Borns, Garrett Holloway
  • Narcissistic rhetoric and crowdfunding performance: A social role theory
    • Abstract: Publication date: Available online 25 April 2018Source: Journal of Business VenturingAuthor(s): Aaron H. Anglin, Marcus T. Wolfe, Jeremy C. Short, Aaron F. McKenny, Robert J. Pidduck Drawing from clinical and organizational narcissism research, we develop a novel measure of narcissistic rhetoric, investigating its prevalence in a sample of 1863 crowdfunding campaigns. An experiment using 1800 observations further validates our measure and confirms our hypothesized inverted-U relationship between narcissistic rhetoric and crowdfunding performance. Leveraging social role theory, we explore sex, sexual orientation, and race as potential moderators of this relationship. Moderation tests reveal LGBTQ entrepreneurs generally yield greater performance when using narcissistic rhetoric than heterosexuals while racial minorities underperform Caucasians using narcissistic rhetoric. Our findings suggest successful crowdfunding campaigns must balance narcissistic rhetoric with entrepreneurs' perceived social roles.
  • Gender differences in entrepreneurial propensity: Evidence from
           matrilineal and patriarchal societies
    • Abstract: Publication date: Available online 24 April 2018Source: Journal of Business VenturingAuthor(s): Abu Zafar M. Shahriar We examine whether men and women in patriarchal and matrilineal societies differ in their propensity to engage in entrepreneurship. We conduct two studies. Study 1 involves face-to-face interviews to identify individuals who are in the process of starting a new business. We find that men in patriarchal societies are more likely than women to initiate action to start a new business. This result, however, is reversed in matrilineal societies, where women are more likely than men to do so. The results of causal mediation tests suggest that entrepreneurial self-efficacy and fear of business failure explain the gender gap in both societies. Study 2 involves a controlled experiment in the lab that captures individuals' willingness to invest in the creation of a new venture. The results of the experiments are consistent with the survey data: men in patriarchal societies and women in matrilineal societies invest more in new venture creation in a simulated environment. We therefore rule out the simplistic view that women are inherently less likely to enter into entrepreneurship due to innate differences across genders. Rather, gender differences in entrepreneurial propensity are outcome of socialization.
  • A woman's place is in theā€¦ startup! Crowdfunder judgments, implicit
           bias, and the stereotype content model
    • Abstract: Publication date: Available online 12 April 2018Source: Journal of Business VenturingAuthor(s): Michael A. Johnson, Regan M. Stevenson, Chaim R. Letwin We examine investor stereotypes and implicit bias in crowdfunding decisions. Prior research in formal venture capital settings demonstrates that investors tend to have a funding bias against women. However, in crowdfunding – wherein a ‘crowd’ of amateur investors make relatively small investments in new companies – our empirical observations reveal a funding advantage for women. We explain the causal mechanism underlying this counterintuitive finding by drawing upon stereotype content theory and testing a dual path moderated-mediation model. Based on archival data and a follow-up experiment, our findings suggest common gender biases held by amateur investors function to increase female stereotype perceptions in the form of trustworthiness judgments, which subsequently increases investors' willingness to invest in early-stage women-led ventures. We discuss our results with specific attention to how our findings extend the entrepreneurship funding literature as well as the gender dynamics literature in entrepreneurship and organization research more broadly.
  • Discounted: The effect of founder race on the price of new products
    • Abstract: Publication date: Available online 17 March 2018Source: Journal of Business VenturingAuthor(s): Peter Younkin, Venkat Kuppuswamy
School of Mathematical and Computer Sciences
Heriot-Watt University
Edinburgh, EH14 4AS, UK
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