How do Large Companies Affect Entrepreneurial Entry: Evidence From Amazon HQ2 Search

AbstractThe creation of new ventures involves a great deal of risk and uncertainty. However, research has been theoretically divergent and empirically inconclusive about the influence of individuals’ risk tolerance on entrepreneurial entry. In this paper, we argue that this relationship is contingent on the reference point of individuals, taking into account the human capital and the opportunity cost of individuals when they decide to start a venture. This approach allows us to clarify some of the previous mixed results in the literature. We use a sample of almost 600,000 individuals from 90 countries that have participated in the Global Entrepreneurship Monitor project between 2010 and 2014. Our results show that individuals with previous experience as entrepreneurs do not need to be so risk-tolerant to set up their own venture, while individuals with a job and/or a high educational level need to be especially risk-tolerant to become entrepreneurs.

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Incumbent Stakeholder Management Performance and New Entry

Journal of Business Ethics ◽

10.1007/s10551-020-04629-8 ◽

2020 ◽

Author(s):

André Laplume ◽

Kent Walker ◽

Zhou Zhang ◽

Xin Yu

Keyword(s):

Business Ethics ◽

Competitive Advantage ◽

Stakeholder Theory ◽

Stakeholder Management ◽

Stakeholder Group ◽

Curvilinear Relationship ◽

Management Performance ◽

Entrepreneurial Entry ◽

Very High ◽

New Entry

Abstract Instrumental stakeholder theory seeks to explain how managing stakeholders effectively can yield competitive advantage for incumbent firms. We extend instrumental stakeholder theory to explain and predict future competition operationalized as new entrepreneurial entries. Our study is among the first to empirically examine the relationships between aggregate stakeholder management performance and the entrepreneurial entries of individuals. Using a combined U.S. dataset from 2003 to 2013 from the Kinder, Lydenberg and Domini (KLD) Index, Compustat, and Kauffman’s Entrepreneurship Survey, we find support for three hypotheses. First, higher levels of stakeholder management performance are related to lower rates of entrepreneurial entry. Second, a curvilinear relationship exists between stakeholder management performance and entrepreneurial entry, where both low and very high stakeholder management performance increase entrepreneurial entry. Third, the greater the variance in stakeholder management performance across stakeholders, the more entrepreneurial entry. Our findings suggest that managing for stakeholders can help to avoid future competition. We add an entrepreneurship lens to the business ethics of stakeholder theory showing how incumbent stakeholder management performance shapes opportunities for entrepreneurs, a largely neglected stakeholder group.

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A real options perspective on entrepreneurial entry in the face of uncertainty

Managerial and Decision Economics ◽

10.1002/mde.1115 ◽

2003 ◽

Vol 24 (8) ◽

pp. 515-533 ◽

Cited By ~ 76

Author(s):

Jonathan P. O'Brien ◽

Timothy B. Folta ◽

Douglas R. Johnson

Keyword(s):

Real Options ◽

Entrepreneurial Entry ◽

The Face

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Shadow Economy and Entrepreneurial Entry

SSRN Electronic Journal ◽

10.2139/ssrn.1638509 ◽

2010 ◽

Author(s):

Saul Estrin ◽

Tomasz Marek Mickiewicz

Keyword(s):

Shadow Economy ◽

Entrepreneurial Entry

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Entrepreneurial entry: Does family diversity matter?

Academy of Management Proceedings ◽

10.5465/ambpp.2021.14016abstract ◽

2021 ◽

Vol 2021 (1) ◽

pp. 14016

Author(s):

Wei Wang ◽

Qiaozhuan Liang ◽

Stephen Xu Zhang ◽

Wei Deng

Keyword(s):

Family Diversity ◽

Entrepreneurial Entry

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Effects of parental entrepreneurial performance on the mode of entrepreneurial entry by the next-generation family members: evidence from an emerging economy

Journal of Family Business Management ◽

10.1108/jfbm-09-2021-0100 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Sarah Watiri Muigai ◽

Edward Mungai ◽

S. Ramakrishna Velamuri

Keyword(s):

Small Business ◽

Family Business ◽

Family Members ◽

Business Owners ◽

Small Business Owners ◽

Next Generation ◽

Content Type ◽

Entrepreneurial Entry ◽

Generation Family ◽

Formal Employment

PurposeThe purpose of the paper is to examine the effects of perceived parental entrepreneurial rewards, or PPERs (i.e. the offspring's perception of the degree of parental success in entrepreneurship), on the corporate venturing (CV) mode of entrepreneurial entry and the interaction effects of family business involvement (FBI) and formal employment on the association between PPER and CV by the next-generation family members.Design/methodology/approachA survey was administered to a sample of 738 small business owners in Kenya; of which, 440 small business owners were selected because they grew up in a family business context. A probit model was used to examine the main and interaction effects.FindingsPPERs significantly influenced CV. FBI improves the positive relationship whereas formal employment reduces the effects of PPER on CV.Practical implicationsFamilies in business need to improve conversations with their children to include discussions concerning the intrinsic and extrinsic rewards of running a family business, which may shape not only the entrepreneurial entry path of their offspring but also the willingness to establish businesses that may grow and lead to continuity of the family business of origin.Originality/valueThe study investigates the effect of being embedded in a business family in shaping the CV mode of entrepreneurial entry by the next-generation family members who may not, on the one hand, find independent own founding an attractive option and for whom, on the other hand, the succession mode of entry may not be an option.

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