The Wiley Handbook of Entrepreneurship

Gorkan Ahmetoglu is Lecturer in Business Psychology at University College London (UCL), and co-founder of Meta Profiling Ltd. Tomas Chamorro-Premuzic is Professor of Business Psychology at University College London (UCL), and CEO of Hogan Assessments. Bailey Klinger is Founder and Executive Chairman of the Entrepreneurial Finance Lab, and was previously a Fellow at Harvard University's Center for International Development. Tessa Karcisky is a Business Psychologist with a PhD from the University of Cologne.

Preface xv


Acknowledgments xxiii


Section 1 Entrepreneurship: Theory and Research


1a: Understanding Entrepreneurship 1


1 A Future of Entrepreneurship Research: Domain, Data, Theory, and Impact 3
Per Davidsson


Introduction 3


Narrowing and Broadening the Field 3


Richer, Better, and More Varied Data 6


The Quest for Increased Theoretical Precision 7


Abstraction, Conceptual Clarity, and Operationalization 9


Sample Size, Data Quality, Statistical Significance, and Practical Relevance 12


Expanding the null hypothesis 13


Stating predictions as comparisons 13


Developing non-nil predictions 13


Specifying other than linear functional forms 13


Recognizing Context 13


Increased Demands for Practical Relevance 14


Conclusion 17


References 17


2 Entrepreneurship as a Process: Empirical Evidence for Entrepreneurial Engagement Levels 25
Peter van der Zwan and Roy Thurik


Introduction 25


Merits of Entrepreneurship as a Process 27


Three Stylized Facts 28


Latent Entrepreneurship 29


Different Roles Throughout the Process 29


Country Differences 30


Conclusion and Recommendations for Future Research 31


References 33


3 Types and Roles of Productive Entrepreneurship: A Conceptual Study 37
Sander Wennekers and Andre van Stel


Introduction 37


Ensuing Research Questions 39


Methodology 39


Typologies and Types 39


From Typologies/Dimensions to Major Types 41


Twelve major types of entrepreneurship 43


Further Reduction to Four Main Types 44


Entrepreneurial Roles 45


General Entrepreneurial Roles 45


Specific Entrepreneurial Roles 46


Intermediary Effects and Final Contributions 50


Intermediate Effects 51


Final Contributions 54


Causal Chains per Main Type of Entrepreneurship: A Synthesis 57


Ambitious Innovators 57


Ambitious Replicators/Adapters 58


Solo Self-Employed 59


Managerial Employers (Rest Group) 60


Discussion and Conclusions 61


Summarizing and Interpreting the Main Findings 61


Implications for Research 62


Implications for Policy 63


Conclusion 65


References 65


4 Toward a Theory of Entrepreneurial Behavior 71
Bruce T. Teague and William B. Gartner


Introduction 71


The Current State of Entrepreneurial Behavior Scholarship 72


(Re)defining Entrepreneurial Behavior 73


Defining Behavior 73


Defining Entrepreneurial Behavior 74


The Role of Behavior in Existing Theories and Frameworks 76


A Theory of Enterpreneurial Behavior 78


Behavioral Repertoire 80


Sources of Behavioral Variation 81


Level of Mastery 83


Implications of a Theory of Entrepreneurial Behavior 84


Toward an Entrepreneurial Behavior Research Agenda 85


Next Steps 86


Conclusions 87


References 88


Section 2 The Individual: Psychology of Entrepreneurship 95


5 The Psychology of Entrepreneurship: A Selective Review and a Path Forward 97
Kelly G. Shaver and Amy E. Davis


Introduction 97


Why Ask Why? 97


The Personality Approach 98


Single Traits 98


Achievement Motivation 98


Risk Propensity 99


Broad Sets of Dimensions 100


Inventories of Traits 100


Latent Dimensions 101


The Social Cognition Approach 102


Career Reasons 103


Attribution Processes 104


Social Cognitive Theories 104


Expectancy Theory 105


Theory of Planned Behavior 105


Entrepreneurial Teams 106


Approaches to Teams 106


Team Structure 107


Toward a More Inclusive Future 107


Culturally Inclusive and Specific 108


Gender 108


Race and Ethnicity 108


Life Course and Personal Context 108


Country of Origin 109


Methodologically Inclusive and Specific 109


Theoretically Precise 109


Multiple Dimensions 110


Replication 110


Teams Over Time 110


Conclusion 111


References 111


6 Tools Entrepreneurs Need for Converting Dreams To Reality And Achieving Success 119
Robert A. Baron


Introduction 119


Motivation: What Goals Do Entrepreneurs Seek 120


Cognitive Tools: Creativity, Opportunity Recognition, and Avoiding Cognitive Traps 121


Opportunity Recognition of Creation: Recognizing or Creating Practical Uses of Ideas 122


The Personal Side of Entrepreneurial Success: Characteristics and Skills That Contribute to Success 125


Personal Characteristics: Self-Efficacy, the Big Five, and Willingness to Improvise 126


From Desire to Achievement: The Role of Self-Regulation 127


Passion: Deep, Emotional Commitment to Entrepreneurship and the Roles it Involves 128


The Social Side of Entrepreneurial Success II: Forming High Quality Social Networks and Getting Along With Others 129


How do Entrepreneurs Build their Social Networks? 130


Dealing with Adversity and Failure 131


Coping With Stress 132


Psychological Capital 132


Dealing with Business Failure: When One Dream Ends Another (Should) Begin 133


Putting it All Together: The Successful Entrepreneur s Tool Kit 133


Tools for Changing the World or at Least Some Corner of it 134


References 136


7 Creativity and Entrepreneurship: A Process Perspective 139
Maike Lex and Michael M. Gielnik


Introduction 139


Creativity and Entrepreneurship: A Conceptual Differentiation 140


The Effect of Creativity on Entrepreneurship 141


Toward a Cumulative Process Model of Creativity in Entrepreneurship 143


Key Assumptions of the Cumulative Process Model 145


Creativity and its Underlying Components 145


The Entrepreneurial Process and its Constituting Phases 145


An Ambidexterity Perspective on Creativity in the Entrepreneurial Process 147


A Cumulative Process Model on Creativity in Entrepreneurship 149


Prelaunch 149


Launch 151


Postlaunch 154


The Cumulative Process Model: A Summary 157


An Interactionist Perspective on Creativity in Entrepreneurship 157


Practical Implications: Promoting Creativity to Promote Entrepreneurship 159


Future Research 161


Conclusion 162


References 163


8 The Dark Side of the Entrepreneurial Personality: Undesirable or Maladaptive Traits and Behaviors Associated with Entrepreneurs 173
Angelo S. DeNisi and Benjamin N. Alexander


Introduction 173


Recent Interest and Older Views 174


Entrepreneurial Personality and Entrepreneurship Outcomes 175


Personality and Entrepreneurial Intentions 175


Personality and Entrepreneurial Success 177


Broader Impact 179


Future Research on the Dark Side of the Entrepreneurial Personality 180


Untangling Outcomes and Trait Phenomena 180


Basic Issues 182


Conclusion 183


References 184


9 Female Entrepreneurship and IQ 187
R.W. Hafer


Introduction 187


Measuring Female Entrepreneurship and IQ 188


The Female Entrepreneurship Index 188


National IQ 190


The Model and Data 191


Regression Results 194


Robustness Tests 195


Caveats 197


Conclusions and Policy Implications 198


References 198


Appendix A 201


Appendix B 204


Acknowledgments 204


10 The Person in Social Entrepreneurship: A Systematic Review of Research on the social Entrepreneurial Personality 205
Ute Stephan and Andreana Drencheva


Introduction 205


Theoretical Background 206


Social Entrepreneurship 206


Personality 207


Review Approach and Overview of the Reviewed Studies 207


Review Findings 208


Motivation 208


General values, motives, interests 211


Specific motives 213


Traits 216


Identity 217


Leadership and Managerial Skills 218


Discussion and Opportunities for Future Research 220


Building on Strengths and Insights of the Current Research 222


References 223


Acknowledgment 229


11 An Individual Differences Approach to Studying Entrepreneurial Tendencies 231
Gorkan Ahmetoglu and Tomas Chamorro-Premuzic


Introduction 231


The Pillars of Individual Differences Psychology 232


The Psychological Approach to Entrepreneurship 233


A Critical Evaluation of the Psychological Approach to Entrepreneurship 234


A Critical Evaluation of the Group Differences Approach 234


A Critical Evaluation of Comparisons Between More and Less Successful Entrepreneurs 236


An Individual Differences Approach to Understanding Entrepreneurial Tendencies 236


(Re)defining Entrepreneurial Tendencies 237


The Practical Importance of Theoretical Preciseness 238


Recommendations for Researching Entrepreneurial Tendencies 239


How Do We Assess Entrepreneurial Tendencies? 240


How Do General Entrepreneurial Tendencies Manifest in Contextual Behavior? 242


Classification of Entrepreneurial Behaviors 242


How Do General Entrepreneurial Tendencies and Contextual Behavior Manifest in Entrepreneurial Output? 245


Discussion 247


Implications for Entrepreneurship Research 248


Implications Beyond Business Creation 249


Other Considerations 249


Existing and Future Research 250


Conclusion 251


References 251


Section 2a: Genetics of Entrepreneurship 257


12 Biology and Entrepreneurship 259
Ahmed Nofal, Nicos Nicolaou, and Noni Symeonidou


Introduction 259


Genetics and Entrepreneurship 260


Quantitative Genetics in Entrepreneurship 260


Tendency to Engage in Entrepreneurship 260


Genetic Influences on Physiology 261


Genetic Covariation with Individual Attributes 261


Gene X Environment Interactions 262


Gene X Environment Correlations 262


Opportunity Recognition 262


Entrepreneurial Intention 262


Entrepreneurial Performance 263


Molecular Genetics in Entrepreneurship 263


Candidate-Gene Studies 263


Genome-Wide Association Studies (GWAS) 264


Hormones in Entrepreneurship 265


Physiology in Entrepreneurship 266


Neuroscience in Entrepreneurship 266


Quantitative Electroencephalogram 267


Functional Magnetic Resonance Imaging 267


Conclusion 267


References 268


13 Born, Not Made and Other Beliefs About Entrepreneurial Ability 273
Daniel P. Forbes


Introduction 273


Born, Not Made : Beliefs and Evidence 274


Understanding How People Think About Entrepreneurs 277


Essentialist Lay Beliefs 277


Genetic Essentialist Lay Beliefs About Entrepreneurs 278


Born-Not-Made and General Beliefs About Entrepreneurial Ability 280


Implications of Belief in Born-Not-Made 280


Implications for the Judgments People Make About Their Own Entrepreneurial Abilities 281


Implications for the Judgments People Make About Others Entrepreneurial Abilities 283


Discussion 284


References 286


Acknowledgments 291


Section 3 The Organization: Corporate Entrepreneurship and Entrepreneurial Teams


3a: The Organization 293


14 Corporate Entrepreneurship & Innovation: Today s Leadership Challenge 295
Donald F. Kuratko


Introduction 295


What Constitutes the Domain of Corporate Entrepreneurship? 296


The Importance of a Climate Conducive for Innovative Activity 298


Managerial Levels and Contributions to Entrepreneurial Efforts 300


Ingredients for an Effective Corporate Entrepreneurial Strategy 302


Challenges with Implementation of Corporate Entrepreneurship 304


Future Expectations 305


References 307


Section 3b: Entrepreneurial Teams 313


15 Unraveling the Black Box of New Venture Team Processes 315
Ekaterina S. Bjornali, Mirjam Knockaert, Nicolai Foss, Daniel Leunbach and Truls Erikson


Introduction 315


The New Venture Team as a Focal Object of Inquiry 316


Internal Factors 316


External Factors 317


Disentangling NVT Processes in the Input-Processes-Outcome Framework 318


Toward a Framework for Studying NVT Processes 318


Prefounding Phase 319


Postfounding phase 319


Selected Theories Within the Theoretical Foundations 321


Faultline Theory 321


Future Research Directions 324


Behavioral Integration and Shared Cognition 324


Future Research Directions 325


Shared Leadership 326


Future Research Directions 327


Creativity and Imagination 328


Future Research Directions 329


Organizational and Team Justice 330


Future Research Directions 331


Transactive Memory Systems 332


Future Research Directions 332


Measuring New Venture Team Processes 333


Methodological Issues in NVT Studies 333


Collinearity 334


Dominant Survey Method 334


Cross-Sectional Designs 334


Meeting Methodological Challenges 335


Improving Survey Instruments 335


Simulation Exercises: Agent-Based Modeling 335


Neurostudies 336


Towards a Mixed Methods Approach 337


Concluding Remarks 337


References 338


Section 4 National and International Entrepreneurship


4a: National Entrepreneurship 349


16 The Knowledge Spillover Theory of Entrepreneurship and the Strategic Management of Places 351
David B. Audretsch and Erik E. Lehmann


Introduction 351


The Challenge of Inequality of Places 353


Globalization and Regionalization 353


The Mediating Role of Entrepreneurship in Transforming Places 353


Transforming Regions to Places 355


The Knowledge Spillover Theory of Entrepreneurship 356


Defining the Knowledge Spillover Theory of Entrepreneurship 356


The Emergence of the Knowledge Spillover Theory of Entrepreneurship 358


Knowledge Spillover Theory and Places 360


The Knowledge Filter and the Strategic Management of Place 363


Absorptive Capacity of Place 366


Emergence of a Strategic Management Approach of Place 368


Conclusions 371


References 372


17 The Effect of New Business Formation on Regional Development 379
Michael Fritsch


Introduction 379


The Basic Relationships 380


The Magnitude of Direct and Indirect Effects 383


Differences in the Contribution of New Business Formation to Economic Growth Across Industries and Regions 385


The Persistence of Regional Entrepreneurship 389


Policy Implications 391


Avenues for Further Research 392


Final Remarks 396


References 396


18 National Culture and Entrepreneurship 401
Gabriella Cacciotti and James C. Hayton


Introduction 401


Method 401


Conceptualization of National Culture in Entrepreneurship Research 402


National Culture as Values 403


Definition 403


Measures 403


Outcomes 404


National Culture as Norms and Practices 408


Definition 408


Measures 409


Outcomes 410


Summary 412


Directions for Future Research 414


Conclusion 416


References 416


19 Management of Entrepreneurial Ecosystems 423
Erkko Autio and Jonathan Levie


Introduction 423


Entrepreneurial Ecosystems: Definitions and Policy Challenges 425


Management of Complex Socioecological Ecosystems 428


Stakeholder Consultation 429


Stakeholder Participation 430


Scottish Innovation-Based Entrepreneurial Ecosystem 431


Method 431


REAP Scotland 432


Field Trial in Scotland 435


Case Reflection 438


Discussion 442


Conclusion 445


References 446


Section 4b: International Entrepreneurship 451


20 International Entrepreneurship and Networks 453
Salman Ahmad and Pavlos Dimitratos


Introduction 453


International Entrepreneurship: Definition 454


Network Perspective 456


Networks and International Entrepreneurship 457


Important Themes: Intersection of International Entrepreneurship and Networks Research 458


Network Creation and International Entrepreneurship 460


Network Types and International Entrepreneurship 460


Network Structures and International Entrepreneurship 463


Network Dynamics and International Entrepreneurship 464


Network s Benefits and International Entrepreneurship 465


Theoretical Basis: Intersection of International Entrepreneurship Networks Research 468


Transaction Cost Economics (TCE) 469


Organizational Learning 469


Resource-Based View 470


Social Capital 470


Knowledge-Based View 471


Other Theories 471


Practical Implications 472


Future Research 472


Conclusion 472


References 473


Index 485