Entrepreneurial decision making is a complex and yet relatively understudied stream of research. Entrepreneurs are likely to use information and knowledge as complex configurations of factors, rather than relying on sources in isolation. Heeding the calls for increased focus on entrepreneurial decision making, this study examines how factors associated with entrepreneurial attention, including number of sources, time spent absorbing information, number of advisors, closeness of advisors, narcissistic autonomy, and business experience combine to impact decision making quality. Through interviews with 40 U.S. entrepreneurs in multiple industries and utilizing fsQCA methodology, this study finds evidence that the quality of entrepreneurial decision making is configurational in nature and that there are multiple equally effective paths resulting in positive or negative decisions (i.e. equifinality). Taking an abductive approach, we use our findings to construct a typology of "positive" decision making as perceived by entrepreneurs, highlighting three configurational mechanisms they utilize.
Social entrepreneurship is seen as a vehicle to drive development and mitigate social problems. In sub-Saharan Africa, support and training centers have emerged, often funded by government and development agencies, in order to assist social entrepreneurship ventures. However, it is unclear whether these programs are sufficiently adapted to the local context to provide appropriate support. This paper explores contextualization of social entrepreneurship training programs in three countries in sub-Saharan Africa. Through content analysis, surveys, and interviews with training centers in Ghana, Kenya, and South Africa, we investigate how these programs equip entrepreneurs to tackle local social problems. We find that their methods, approach, and content clearly illustrate contextualization in response to socio-economic and entrepreneurial ecosystem dynamics. Resource scarcity and social embeddedness theories help explain our findings. We conclude that the primary drivers of contextualization in these programs in these countries are similar: differences in actors, resources, and bottom lines. By explaining how contextualization manifests itself and how it occurs in these developing countries, our findings can improve the implementation of such programs and help overcome the barriers that context can create.
Entrepreneurial decision making is a complex and yet relatively understudied area. Entrepreneurs are likely to use information and knowledge as complex configurations of factors, rather than relying on sources in isolation. This study examines how factors associated with entrepreneurial attention, including number of sources, time spent absorbing information, number of advisors, closeness of advisors, narcissistic autonomy, and business experience, combine to impact decision-making quality. Through interviews with 40 U.S. entrepreneurs in multiple industries, this study finds evidence that the quality of entrepreneurial decision making is configurational in nature and that there are multiple equally effective paths resulting in positive or negative decisions (equifinality). We use our findings to construct a typology of "effective" decision making as perceived by entrepreneurs, highlighting three configurational mechanisms they utilize.
Rooted in self-determination theory (SDT), this paper focuses on the relationship between a franchisee’s desire for autonomy and financial performance. The typical franchise requires system-wide conformity and standardization. Yet, most franchisees are more than merely entrepreneurs with an instruction manual and so they desire independence, and addressing this paradox of desire for autonomy versus the desire for standardization represents a major challenge for franchisors. Utilizing a sample of 274 franchised fitness center locations across the United States, this study reports a negative relationship between a franchisee’s appetite for independence and their center’s financial performance. However, we also report that this adverse relationship is positively mediated when channeled through the franchisee’s personal initiative and self-awareness. These findings suggest that although the desire for autonomy may not be the most desirable franchisee disposition, its detrimental impact on performance may be suppressed if franchisees are aware of their strengths and weaknesses and demonstrate superior initiative and proactive behaviors.
Although some research has been done on entrepreneurship's positive effects on economic outcomes, much work remains to be done regarding other positive social spillover effects that may come from entrepreneurship. Grounded in expectancy theory and social support theory, this study examines the relationship that entrepreneurial ecosystem support has with homicide, one of the worst social ills plaguing urban settings. Results indicate that in the largest 200 U.S. cities across five years of data, entrepreneurial ecosystem support is negatively related to homicide, and that the negative relationship between those two variables is moderated by basic education rates but not by new business creation density. This article contributes to entrepreneurship literature by highlighting the positive social spillover effects (in the form of reduced homicide) that entrepreneurial ecosystem support can have on society, which have not been considered to the best of our knowledge. It also highlights the amplifying effect of basic education in that relationship, while calling for further research into the effects of new business creation density.
Aligning human and financial resources to a compelling purpose can produce benefits for organizations and society. Thus, increased attention in the popular business press has focused on becoming a “purpose-driven” organization. Yet surprisingly, there is a notable absence of academic research on organizational purpose. We begin to address this gap by presenting the results of three studies focusing specifically on micro employee-level perceptions of organizational purpose. The first study improves upon previously unvalidated approaches to employee-level measurement of purpose. The second study demonstrates how corporate social responsibility (CSR) efforts influence purpose, making organizations more attractive to prospective employees. In the third study, we test a moderated mediation model with existing employees, emphasizing controllable ways organizations can instill purpose and demonstrating meaningful influences on individual outcomes. Using cross-sectional, experimental, and longitudinal methodologies, we establish organizational purpose as a central mediating construct through which antecedent forces like CSR and transformational leadership translate into positive employee outcomes, including organizational attractiveness, commitment, and decreased turnover intentions. We make several contributions to the organizational behavior and leadership literatures, advancing an emergent empirical focus on the power of purpose in organizations.
Entrepreneurship can result in many positive economic effects, but is it possible that entrepreneurship can also have positive social spillover effects such as helping to reduce crime and violence? This paper explores the question in the context of the city of Baltimore, Maryland, which has experienced a significant rise in violent crime in recent years, as well as the efforts of Innovation Works, an incubator that is attempting to educate, mentor, and fund entrepreneurs within this challenging context. Based on that incubator's insights as well as perspectives from the fields of sociology, psychology, and entrepreneurship, this paper suggests that entrepreneurship can have positive social spillover effects including reduced crime, recidivism, and economic inequality, as well as increased social capital, community trust, and optimism. We examine how incubators can promote positive spillovers, and also provide recommendations for cities and incubators that are struggling in similar contexts to those of Baltimore.