Disengagement of Nascent Entrepreneurs from the Start-Up Process
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Journal of Small Business Management 2014 52(1), pp. 39–58 doi: 10.1111/jsbm.12032
Disengagement of Nascent Entrepreneurs from the Start-Up Process
by Shaji A. Khan, Jintong Tang, and Kailash Joshi
This study examines the roles of entrepreneur motivation and a potentially adverse founding condition in disengagement of nascent entrepreneurs from the start-up process. Specifically, measures of goal commitment, self-efficacy, and perceived competition intensity from 943 nascent entrepreneurs are employed to predict disengagement as reported one year later. Results indicate that high perceived competition intensity renders the otherwise strong negative main effect of goal commitment on disengagement, not significant. The even stronger negative main effect of selfefficacy on disengagement, however, is not contingent on perceived competition intensity. Further, perceived competition intensity by itself does not appear to influence nascent entrepreneurs’ disengagement.
Introduction
Disengagement of nascent entrepreneurs from the start-up process, defined as seizure of all activities geared toward the goal of firm creation, warrants concern for at least three important reasons. First, research suggests that new firm creation is related to the establishment of new market sectors, net job creation, labor productivity, technical and market innovations, economic growth, and social benefits (Acs and Armington 2006; Audretsch 1995; Reynolds and Curtin 2007). Second, nascent entrepreneurs have been found to invest significant time and resources in start-up activities
of new ventures.1 Third, on the one hand, by disengaging, it is possible that some nascent entrepreneurs may be missing out on exploiting potentially fruitful opportunities (cf., Moore, Oesch, and Zietsma 2007). On the other hand, by not disengaging, it is possible that some nascent entrepreneurs may be exhibiting overconfidence in their abilities (e.g., Camerer and Lovallo 1999) only to see their young firms fail...
Disengagement of Nascent Entrepreneurs from the Start-Up Process
by Shaji A. Khan, Jintong Tang, and Kailash Joshi
This study examines the roles of entrepreneur motivation and a potentially adverse founding condition in disengagement of nascent entrepreneurs from the start-up process. Specifically, measures of goal commitment, self-efficacy, and perceived competition intensity from 943 nascent entrepreneurs are employed to predict disengagement as reported one year later. Results indicate that high perceived competition intensity renders the otherwise strong negative main effect of goal commitment on disengagement, not significant. The even stronger negative main effect of selfefficacy on disengagement, however, is not contingent on perceived competition intensity. Further, perceived competition intensity by itself does not appear to influence nascent entrepreneurs’ disengagement.
Introduction
Disengagement of nascent entrepreneurs from the start-up process, defined as seizure of all activities geared toward the goal of firm creation, warrants concern for at least three important reasons. First, research suggests that new firm creation is related to the establishment of new market sectors, net job creation, labor productivity, technical and market innovations, economic growth, and social benefits (Acs and Armington 2006; Audretsch 1995; Reynolds and Curtin 2007). Second, nascent entrepreneurs have been found to invest significant time and resources in start-up activities
of new ventures.1 Third, on the one hand, by disengaging, it is possible that some nascent entrepreneurs may be missing out on exploiting potentially fruitful opportunities (cf., Moore, Oesch, and Zietsma 2007). On the other hand, by not disengaging, it is possible that some nascent entrepreneurs may be exhibiting overconfidence in their abilities (e.g., Camerer and Lovallo 1999) only to see their young firms fail...