NEW VENTURE GROWTH PHASES: THE JOINT ROLE OF THE INDIVIDUAL AND THE ENVIRONMENT

Abstract

This dissertation contributes to the field of entrepreneurship. Specifically, it explores how_x000D_ individual levels factors related to the entrepreneur influence outcomes in conjunction with_x000D_ factors in the environment. The dissertation has three core studies corresponding to chapters_x000D_ II, III and IV._x000D_ The first study analyzes that the decision to become entrepreneur is not only driven by_x000D_ motivational factors but also by the social network structure around the individual._x000D_ Accordingly, this chapter disentangles how the existence of social referents in the region_x000D_ affects the size of new firms. More specifically, we focus on the relationships that may exist_x000D_ between potential social referents (number and size of established entrepreneurs) and the size_x000D_ of the new firms. Also, this influence of potential social referents at the regional model is_x000D_ moderated by the existence of close social ones in the personal network of the entrepreneur._x000D_ We observe that while new ventures tend to be bigger in provinces where there are bigger_x000D_ firms, the number of established entrepreneurs (a proxy for entrepreneurs density) has not_x000D_ significant impact. Furthermore, we observe that knowing an entrepreneur reduces the impact_x000D_ of potential social referents on the size of new ventures. Overall, and in line with our_x000D_ expectations, the results indicate that the close environment of the entrepreneur has a greater_x000D_ effect versus the impact of the potential regional considerations._x000D_ The second study looks at how the entrepreneurs’ human capital moderates the effect of the_x000D_ regional economic environment on entrepreneurial growth aspiration. Specifically, we build_x000D_ on different theoretical perspectives to investigate the unique and joint effects of population_x000D_ density and nascent entrepreneurs’ human capital endowments (higher education,_x000D_ entrepreneurship training and owner-manager experience) on entrepreneurial growth_x000D_ aspirations. We argue that growth aspirations of nascent entrepreneurs are higher in more_x000D_ densely populated regions, but that such environmental influence is stronger for individuals_x000D_ with greater human capital. Consistent with our view, we find that the growth aspirations of_x000D_ nascent entrepreneurs with higher education and with owner-manager experience are higher_x000D_ in densely populated provinces._x000D_ Finally, the last study focuses on institutional and economics arguments to examine the_x000D_ determinants of entrepreneurs’ informal planning behavior influencing the growth of new_x000D_ ventures. Despite the attention paid by academics to the study of the determinants and growth_x000D_ consequences of entrepreneurs’ planning behavior, the convenience of engaging in planning_x000D_ activities is still an open debate in the entrepreneurship literature. Planning may yield benefits_x000D_ for new ventures such as: awareness of the project, goals setting (Delmar and Shane, 2003;_x000D_ Chwolka and Raith, 2012) but may also bring negative aspects such as lack of flexibility. In_x000D_ this chapter, we attempt to contribute to clarify this debate and analyze how institutional and_x000D_ firm level economic factors determine entrepreneurs’ planning behavior over time. Our_x000D_ results indicate that planning, which may be a mean to gain not only legitimacy but also to_x000D_ face business difficulties, increases new firm growth. Implications suggest that informal or_x000D_ basic planning activities can be a really useful tool for management and not simple external_x000D_ requirement.

Date of Award	18 Sept 2015
Original language	English
Supervisor	Ignacio Contin Pilart (Director) & Martin Larraza Kintana (Director)