The Effects of Failure Avoidance and Self-Enhancement Motives on Entrepreneurs’ Social Networks in China

The extant research illustrated that social networks are crucial for entrepreneurial success. However, few studies have investigated what antecedent factors influence entrepreneurs’ social networks. In this article, we ask the following question: What is the role of entrepreneurs’ motives to avoid failure and enhance self-esteem in their networking behavior, and personal network structures? Overall, entrepreneurs’ failure avoidance motive and self-enhancement motive lead to different structural patterns of entrepreneurs’ networks.

Sponsors: Oklahoma State University, Ningbo Soft Science Research Awards, Ningbo City Government.

PI/PDs: Bat Batjargal

Nottingham University Business School: China: Xi Chen

 

Family members in top management team, salary payment, and company performance in China

In this study, we examine the role of family member – top manager in Top Management Team (TMT) salary payment, managerial shareholding and family firm performance from the integrated perspective of agency theory and TMT research perspective. The study is based on the sample of 1583 Chinese private firms listed on the Shanghai and Shenzhen stock exchanges. We found that family membership in TMT has positive effects on TMT salary payment and increased managerial shareholding. However, TMT salary levels negatively moderate the relationship between family membership in TMT and firm performance of private firms in China.

Sponsors: Oklahoma State University, Nottingham University Business School, Ningbo, China

PI/PDs: Bat Batjargal

Nottingham University Business School: China: Xiaogang Bi

 

The Moderating influence of national culture on female and male entrepreneurs’ social network size and new venture growth

Why do men and women experience different returns from their social networks across different national cultures? This question was examined with data from 637 (278 women and 359 men) entrepreneurs across four nations. We found that male entrepreneurs in high relational cultures benefit the most (in terms of growth in revenues) from larger network size while women in low relational cultures benefit the least. In cultures with low gender egalitarianism, male entrepreneurs benefited more from their larger social networks than did the female entrepreneurs.

Sponsors: Oklahoma State University, Nottingham University Business School, Ningbo, China

PI/PD: Bat Batjargal

 

Religion and Entrepreneurship: Effects of religious beliefs and entrepreneurs’ networks on venture survival

This project examines the interaction effects of religious beliefs, on the one hand, and business discussion network size and religion discussion network size, on the other hand, on new venture performance, i.e., venture survival This is a longitudinal project based on surveys of 248 information technology entrepreneurs in Beijing, China. The preliminary results show that religious beliefs and business discussion network size are substitute each other in terms of effects on venture performance.

Sponsors: Oklahoma State University, Nottingham University Business School, China

PI/PD: Bat Batjargal

 

Institutional Polycentrism Theory and Global Entrepreneurship Research

This is a pure theory development project that examines and explores the concept of institutional polycentrism and its effects on global entrepreneurship rates.

Sponsors: Oklahoma State, University Nottingham University Business School, China

PI/PD: Bat Batjargal

 

The Firm vs. the Market: Dehomogenizing the Transaction Cost Theories of Coase and Williamson

Uncovers fundamental differences between the respective transaction cost theories of Ronald Coase and Oliver Williamson, and discusses implications for strategy

Sponsor: Oklahoma State University

PI/PD: Per Bylund

 

The Austrian Free Enterprise Ethic: A Mengerian Comment on Kirzner (2019)

Responds to Israel Kirzner’s Austrian critique of Milton Friedman’s free market ethic

Sponsor: Oklahoma State University

PI/PD: Per Bylund

 

Entrepreneurship and Austrian Economics: Theory, History, and Future

Introduction to special issue

Sponsor: Oklahoma State University

PI/PD: Per Bylund

 

Towards A Value-Dominant Logic of Marketing

Develops a theory of entrepreneurship based on value facilitation which is then applied on marketing practice

Sponsor: Oklahoma State University

PI/PDs: Per Bylund, Hunter Hastings, Fernando D’Andrea

 

Where is the Austrian Theory of Collaborative Orders? Comment on Elert and Henrekson

Argues that Austrian economics has little to gain from incorporating empirically derived theory of collaborative orders.

Sponsor: Oklahoma State University

PI/PD: Per Bylund

 

Entrepreneurial Response to Interstate Regulatory Competition: Evidence from a Discrete Choice Experiment

Discrete choice experiment to uncover effects of regulation.

Sponsors:  Oklahoma State University, Michigan State University, University of Michigan- Dearborn

PI/PDs: Per Bylund

Michigan State University: Trey Malone

University of Michigan- Dearborn: Antonio Koumpias

 

Multi-Family Firms

Multi-family firms represent a large fraction of family firms and of firms in general, yet little is known about this unique organizational form. To fill this void, this study proposes a definition of multi-family firms. This study distinguishes multi-family firms from single-family firms and non-family firms, based on their family-centered noneconomic goals and the nature of the relationships between the owning families. It also proposes multi-family firm characteristics and strategies that may lead to their competitive advantage. Finally, it provides a future research agenda that advance our knowledge of multi-family firms, and ultimately the family business field.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

The Effects of Spiritual Leadership on Work-Family Conflict and Organizational Commitment in the Family Firm

This study draws from conservation of resources theory to predict that spiritual leadership serves as both a resource to enhance employees’ organizational commitment and a passageway to mitigate the negative effects of work-family conflict. Using primary triadic data from leaders, family employees, and nonfamily employees in 77 family firms, results indicate that organizational commitment is enhanced by spiritual leadership but is decreased by work-family conflict. Surprisingly, spiritual leadership exacerbated the negative effect of work-family conflict on organizational commitment. Further analysis reveals that family and nonfamily employees respond differently to leadership and work-family stressors.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

Kinship and Sex in Family Firms: Who Reciprocates the CEO’s Altruistic Behavior?

This study introduces “kinship status,” or whether a leader and employee are related, as a new dimension of relational demography. It predicts that kinship status uniquely impacts leader-employee relationships and outcomes, and that employee experiences in the family firm are simultaneously shaped by gendered processes and family processes. Data collected from 209 leader-employee dyads show that male family employees exhibit the greatest increase in organizational citizenship behaviors as their leader’s altruistic behaviors increase. Female family employees display consistently high organizational citizenship behaviors regardless of their leader’s altruistic behavior, suggesting they may be “unsung heroes” of the family firm.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

Linking the Entrepreneur’s Childhood Communication Patterns to the Innovativeness of their Ventures

This study integrates human communication and imprinting theories to advance our understanding of family firm innovation. Using primary triadic data from leaders, family employees, and nonfamily employees in 38 U.S. family firms, results demonstrate the more effective the human communication within the family, the more effective the organizational communication within the family firm and subsequently, the greater the innovativeness. However, due to differing perceptions of family and nonfamily employees, results indicate founder communication patterns do not fully imprint on the family firm. This implies the relationship between founder imprinting and organizational outcomes is more nuanced than theory would suggest.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

Sins of the Parents: How Parenting Style Affects Successors and Key Family Firm Outcomes after Succession

The intent to transfer control to the next generation is a defining characteristic of family firms. Yet, most family-controlled firms fail to transfer control and, when they do, the next generation’s leadership often fails to meet expectations. Ironically, the succession literature fails to leverage sociology research and theory on the key aspect that makes family firms different – i.e., families. Therefore, this study extends parental control theory from sociology and empirically demonstrates that predecessor parenting styles have a direct effect on successor psychological profiles, which then impact employee behaviors, thereby explaining why some family successors are more successful than others.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

A Transactive Memory Systems Approach to Knowledge Complementarity and Firm Innovation

This study integrates transactive memory systems theory and the knowledge-based-view of the firm to provide insight into how small- and medium-sized enterprises can effectively leverage their internal resources for innovation. Using primary triadic data from 38 U.S. firms and dispersion composition modelling, results demonstrate that how employees perceive their knowledge resources relative to other employees directly effects firm innovation. Even though value lies in having complementary knowledge within entrepreneurial ventures, if resources are not leveraged due to differing perceptions among employees, the venture may experience lower levels of innovation.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

When Do Nonfamily Managers Enhance the Performance of Small Family Firms?

Employing nonfamily managers can enhance family firm performance. However, highly qualified nonfamily managers often prefer working in nonfamily firms, leaving a less qualified pool of managers available to family firms. We address this paradox using a resource-based perspective to theorize that family firms with inferior performance benefit most from employing nonfamily managers because this compensates for deficiencies in the quality of family managers. Analysis of 324 small family firms shows that family firms with performance below industry averages experience performance benefits from employing nonfamily managers, while no benefit is gained by family firms with performance above industry averages.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

Family Business as Social Enterprise: An Integrative Review

Family businesses and social enterprises represent distinct organizational forms that share underlying motivations and behaviors centered on the pursuit of socially inspired non-economic goals. This integrative literature review capitalizes on these recent trends and provides an extensive review of the convergent nature of contemporary family business and social enterprise research; identify boundary conditions and divergent barriers to coordinated research activity. This provides a foundation to recognize and pursue promising avenues of future integrative studies that advance our understanding of the non-economic motivations inspiring this research.

Sponsor: Oklahoma State University

PI/PD: Kristen Madison

 

A Multi-Signal Perspective on the Reputation of Venture Capital Firms

Utilizing a multi-signal perspective, we examine how IPOs are influenced by the reputation of venture capital firms (VCFs).  First, we examine how change in different types of retained founder equity—i.e., newly created equity created at IPO versus existing equity owned prior to IPO—relates to the reputation of venture capital firms that invest in a venture.  We then hypothesize conditions under which the reputations of VC firms versus underwriters are substitutable or complementary to reducing IPO underpricing.  Finally, we develop competing hypotheses regarding the impact that affiliation between underwriters and VCFs have on underpricing.

Sponsors: Oklahoma State University, Portland State University

PI/PDs: Curt B. Moore

Portland State University: Theodore Khoury

Entrepreneurship and FDI

Building on institutional and Austrian economic theories, we theorize country-level VC investments reduce information asymmetry and market uncertainty, and, therefore, influence the foreign direct investments (FDI) of multinational corporations (MNCs).  Compared to country-level FDI, analyses of 29 countries over 11 years demonstrate that the relatively small, country-level VC investments are predictive of subsequent FDI by MNCs. This relationship is dynamic and reinforcing over time, with stronger relationships occurring in countries with higher levels of institutional risk.

Sponsors: Oklahoma State University, Texas Tech University

PI/PDs: Curt B. Moore

Texas Tech University: G. Tyge Payne

Neurodiversity and Entrepreneurial Cognition

Three studies investigating the effect of neurodiversity on entrepreneurial cognition.  Specifically, each study focuses on relationships between ADHD and important aspects of entrepreneurial cognition, including cognitive style, coping style, entrepreneurial alertness, entrepreneurial metacognition, and resource-induced coping heuristics. Ultimately, these studies seek to explore the cognitive benefits and limitations of entrepreneurs with ADHD.

Sponsors: Oklahoma State University, West Virginia University

PI/PDs: Curt B. Moore

West Virginia University: Nancy McIntire

 

Social Capital in Family Business Research:

This paper advances the state of knowledge about social capital in family business research.  Based on a review of family business articles published over the last two decades, we identify and discuss key issues using social capital perspectives.  While our review highlights the extensive utility of social capital perspectives in family business research, substantial research challenges and opportunities still exist for family business scholars. Based on our review, we offer theoretical generalizations, criticisms, and areas for future research.

Sponsors: Oklahoma State University, Boise State University

PI/PDs: Curt B. Moore, Bat Batjargal

Boise State University: Karen Nicholas

 

The Intersection of Family Firms and Institutional Contexts: A Review and Agenda for Future Research

Examination of family firms’ interactions with institutional contexts has been a major research stream within family business scholarship. This study reviews three decades of research at the intersection of family firms and institutional contexts. Our review sample includes 124 articles published in 24 top-level journals across several disciplines. We adopt an institutional theory lens to synthesize this literature and explicate main understandings about how family firm behaviors/outcomes are influenced by or may influence formal and informal institutions in their institutional contexts. Moreover, we discuss major research gaps and unproductive biases in this research area and provide directions for future research.

Sponsor: Oklahoma State University

PI/PDs: Rutherford, M., Soleimanof, S., Webb, J.

 

Business stressors, family-business identity, and divorce in family business: A vulnerability-stress-adaptation (VSA) model 

Considerable amount of research focuses on how divorce in enterprising families influences family business outcomes. Yet, the impact that family businesses have on the divorce of enterprising families remains relatively under-researched. We contribute to the emerging enterprising family heterogeneity literature by building upon the Vulnerability-Stress-Adaptation (VSA) model and explore two questions regarding the influence of family businesses on divorce: Do family business-related stressors influence divorce? We hypothesize that high levels of debt and high sales revenue levels (as stressors) positively and significantly affect the rate of divorce in family businesses.

Sponsor: Oklahoma State University

PI/PDs: Rutherford, M., Sanchez-Ruiz, P., Maldonado-Bautista, I.

 

Entrepreneurship Everywhere: Across Campus, Across Communities, and Across Borders.

This paper introduces the theme of this special issue related to Entrepreneurship Everywhere: Across Campus, Across Communities, and Across Borders. We explore three critical points as we set up the accepted articles for the special issue. First, if we are everywhere are we anywhere? Second, we focus on the importance of collaboration. Third, we discuss the importance of strategically planning on how your efforts intervene or integrate into the wider ecosystem.

Sponsor: Oklahoma State University

PI/PDs: Rutherford, M, Hornsby, J, Messersmith, J., Simmons, S.

 

ADHD-Related Neurodiversity and the Entrepreneurial Mindset

In this study, we draw on research from neuroscience and related fields to examine the relationship between attention-deficit/hyperactivity disorder (ADHD) and the entrepreneurial mindset. Herein, we examine differences between entrepreneurs with and without ADHD in cognitive style, entrepreneurial alertness, metacognition, and resource-induced coping heuristic (RICH). Our results suggest neurodiversity that arises from ADHD is meaningfully related to aspects of an entrepreneurial mindset. Specifically, when compared to entrepreneurs without ADHD, we find entrepreneurs with ADHD employ a more intuitive cognitive style and demonstrate higher levels of entrepreneurial alertness and RICH, while no significant differences in metacognition were found.

Sponsors: Oklahoma State University, West Virginia University

PI/PDs: Curt B. Moore

West Virginia University: Nancy McIntyre

 

Opaque Costly Signals and Debt Contracts

New Ventures that are unable to fund expansion using internal equity and prefer to maintain complete firm ownership may supplement existing cash flow by accessing external funds in the form of debt contracts (Berger & Udell, 1998). These firms send signals to external stakeholders that represent a sufficient level of legitimacy and worthiness of investment. However, many new ventures are unable to send preferred costly signals because they do not possess them.  In this study, I examine specific signals that carry the preferred costly weight needed to gain a stakeholder’s perception of legitimacy, however are difficult to fully verify.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Lee Grumbles

 

Trust the Gut: How Cognitive Biases Interact to Positively Influence Investor Decisions

New startup ventures often require funding to grow and succeed.  These startups may pitch their business idea to a venture capitalist or angel investor to gain resources When evaluating the potential of the new venture idea, investors rely on “gut” feelings based on perceptions of the venture’s probability of success.  These gut feelings are subjective and produce biased decisions that ultimately contribute to successes for investors.  These cognitive biases have interactive effects that magnify or diminish the biased decision to invest.  This study will contribute to our understanding of the interaction of the most impactful cognitive biases prevalent in early investment decision-making.  

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Michael Caston

 

The Entrepreneur/Investor Idea Elaboration Helix

This research conceptualizes startup investments as a function of three interconnected factors influencing each other: entrepreneurs, the opportunity/venture, and investors (Gianiodis, Markman, & Espina, 2017).  This interconnectivity can be established through interactions such as narrative pitches, dialogue, collaboration, and negotiations.  As ideas are mentally simulated and discovery continues throughout the interaction (e.g. negotiation), cognitive elaborations may generate new ideas to be incorporated into the perceived opportunity.  If the entrepreneur/investor dyad mutually builds upon the initially pitched idea, then a sort of helix is established. 

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Clinton T. Purtell

 

Will Crypto Become Actual? An Institutional Approach to Cryptocurrency

How can cryptocurrency gain legitimacy in the eyes of users? We propose that cryptocurrency firms, through evasive entrepreneurial actions reflected by rhetorical strategies, can acquire legitimacy in the market that will ultimately reduce institutional uncertainty.  Drawing from Williamson’s (1998, 2000) hierarchical model of institutional systems, we propose that legitimacy acquisition at the market level via evasive action will attenuate uncertainty in the formal institutional environment; which will beget additional legitimacy for cryptocurrencies, and thus higher performance to those firms, on average.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Duygu Phillips, Per Bylund

 

New Venture Legitimacy Diffusion: The Role of Storytelling and Social Networks

Legitimacy diffusion is critical for new venture success, survival, and growth. Storytelling is a powerful technique to acquire legitimacy as well as to diffuse it. The focus of the current study is to analyze the role of storytelling in social media, specifically on Twitter. We also investigate the moderating effects of social networks based on network density and eigenvector centrality.  Results indicate that storytelling in social media can be effective in legitimacy diffusion and that storytelling elements influence the extent on diffusion, specifically cognitive, pragmatic and emotional elements as well as network density and eigenvector centrality. Implications and limitations are discussed.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Duygu Phillips, Curt Moore

 

Creative Potential, Preparedness, and Investment Decisions: A Unimodel of Persuasion Using the Videometric Approach

In this study, we marry the literature on creative potential prototypes of pitchers (Elsbach & Kramer, 2003) with research findings regarding the importance of entrepreneurs’ cognitive preparedness (e.g. Chen et al., 2009) to develop configurations of entrepreneurs’ creative potential and preparedness. More specifically, our models explore the associations between entrepreneurs’ creative potential—in business pitches reflecting artist, storyteller, showrunner, neophyte, journeyman, dealmaker, non-writer prototypes (Elsbach & Kramer, 2003)—and financers’ decisions to provide capital in support of the entrepreneur. Moreover, we posit that the above relationships will be moderated (enhanced or hindered) by entrepreneurs’ preparedness displayed during the business pitch.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, lleana Maldonada-Bautista, Paul Sanchez

 

Effects of New Venture Name Characteristics on Purchase Intentions and Performance with the Mediating Role of New Venture Legitimacy

A new venture’s name is a key element for its survival and growth.  Drawing on organizational identity theory and legitimacy literature, this study empirically analyzes the effects of various characteristics of names on new venture legitimacy as well as on purchase intensions and consequently on new venture performance. The purpose of this paper is to fill a gap in the literature through a detailed analysis of new venture names and their effects on legitimacy and performance as well as to create a guideline for entrepreneurs to selecting a name for their startups. 

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Duygu Phillips, Bryan Edwards

 

Grit and Orientation to Happiness: A Taxonomy and Relationships with Entrepreneurial Goals

Individual differences with regard to grit are likely contingent upon what makes individuals happy.  To advance theory related to individual differences with regard to grit, this study develops a taxonomy of entrepreneurial motivational dispositions by including orientation to happiness.  Our configuration analyses on a sample of 150 entrepreneurs finds that four clusters exists: “Gritty Hedonist”, Gritty and Balanced”, “Inconsistently Engaged” and “Stuck in the Middle.” The specific configurations of the multiple sub-dimensions of grit and orientation to happiness in each cluster are noted, and the effects on entrepreneurial outcomes are identified. This study advances understanding of the heterogeneous nature of entrepreneurs’ motivational dispositions.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Alex Lawrence, Ileana Maldonada-Bautista, David Noack

 

Entrepreneur Problem Recognition: Does Legitimacy Matter?

Research has asserted that entrepreneurs are subject to a wide variety of cognitive biases (e.g., overconfidence).  However, scholars have yet to establish whether these biases are always detrimental to the creation of successful new ventures.  In this paper, we 1) assert and test the notion that entrepreneurs are subject to a problem recognition bias, 2) argue that legitimacy status is likely the key catalyst stimulating the entrepreneur problem recognition bias, and 3) posit that the entrepreneur problem recognition bias is beneficial in the new venture creation process. 

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Neil Tocher, Paul Sanchez Ruiz, Ludvig Levasseur

 

A Note on the Impact of Debt and Equity Determinants on De Novo Firm Outcomes: A Model Robustness Analysis

We evaluate the robustness of 34 possible drivers that are broadly classified in four groups: 1) inside equity, 2) inside debt, 3) outside equity, and 4) outside debt. We estimate the sampling distribution of 114,688 models in a panel of de novo firms from the Kauffman Firm Survey by conducting a systematic sensitivity analysis. The results suggest that some capital structure variables are robustly correlated with firm outcomes (ROA, growth, survival), but many are not. Specifically, we find no evidence to suggest that angel and venture capital equity financing are key indicators of de novo firm growth and profitability.

Sponsors: Oklahoma State University

PI/PDs: Matt Rutherford, Paul Sanchez, Duygu Phillips

 

Aligning Entrepreneurial Project Characteristics with Financing Sources: A Taxonomy, Relationships, and Advancement

Unique characteristics among entrepreneurial projects have both positive and negative effects on financiers’ judgmental funding decisions. To better understand these characteristics and advance related theory, this study develops a taxonomy of entrepreneurial projects. More specifically, using configuration analyses on a sample of 521 projects, we find that five clusters exist that include projects with Pragmatic, Planned, Innovative, Political, and Provincial characteristics. The specific configurations of each cluster are noted and effects on funding decision outcomes are identified to advance understanding of the heterogeneous nature of entrepreneurial projects.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Ileana Maldonada-Bautista, Paul Sanchez,

 

Science-Practice Gap: Does Innovative Academic Knowledge Diffuse?

It has been noted that few practitioners read academic research. In fact, we know that some robust and rigorous scholarship is effectively communicated to practitioners. I hold that once we understand the anatomy of the communicative scholarship, we can begin to close the gap more effectively. By framing scholarship as an innovation, I can investigate the underlying components, (i.e., relative advantage, compatibility, complexity, trialability, and observability) of academic research. With this framework, I will contrast the profiles of adopted research with non-adopted research. Subsequent to this, among the adopted research, I evaluate the impact of the components on the time and extent of diffusion.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Justin White, Danny Holt, Bryan Edwards

 

Running the Gauntlet: Surviving and Thriving during Recession

Results from an 8-year analysis of 3,869 firms that were founded just prior to the start of the Great Recession indicate that new ventures which display a commitment towards “durability resources” are more likely to survive a recession—and thrive afterword.  With regard to these resources, we found that elevated levels of 1) human capital 2) inside funding, and 3) commitment to employees were the most strongly related with positive outcomes.  Conversely, high levels of outside funding tended to be negatively associated with performance during a recession. 

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Paul Sanchez, Matt Mazzei

 

Deliberate Practice as Entrepreneurship Curriculum: A Study of Middle School Girls in Economically Challenged Regions

Can the deliberate practice process be employed to swiftly improve individual entrepreneurial performance? To address this question, a curriculum was developed based on the deliberate practice model and administered to middle school girls from economically challenged regions to determine whether deliberate entrepreneurial skills practice could lead to the expeditious acquisition of enhanced entrepreneurial performance. Our findings confirmed the conceptual relationship between deliberate practice and entrepreneurial performance. It is hoped that the results of this study can be used by researchers, educators, and policy makers to address a general lack of entrepreneurship in economically challenged regions.

Sponsor: Oklahoma State University

PI/PDs: Matt Rutherford, Angela Reddix, Rathin Sarathy, Lincoln Brown