Growth expectations through innovative entrepreneurship.The role of subjective values and and duration of entrepreneurial experience
International Journal of Entrepreneurial behavior & research, 2018, Vol. 24, n° 1, pp. 191-213
Poblete Cazenave, Carlos
Purpose – This study proposes a model suggesting that innovation may act as a motivating force that increases entrepreneurs’ growth expectations, where entrepreneurs’ growth expectations are shaped by their subjective values and that entrepreneurial experience moderates this relationship Design/methodology/approach – The paper conducts statistical analysis on a sample of 11,579 entrepreneurs from 24 countries that have participated in the IIIP survey of innovation in 2011 under the Global Entrepreneurship Monitor (GEM) project. Findings – Results suggest that entrepreneurs involved in innovative entrepreneurship are more likely to have higher growth expectations, with subjective values playing a direct and indirect role in entrepreneurs’ expectations of firm growth. Additionally, results indicate that duration of entrepreneurial experience moderates the relationship between strategic orientation and confidence in innovation. This finding suggests there is feedback between beliefs about the benefits of innovation and being an innovative entrepreneur, resulting in an over-estimation, at least in comparative terms, regarding firm growth rates. This relationship is stronger for novice entrepreneurs since experienced entrepreneurs tend to be more cautious about their expectations of growing. Originality/value – This study deepens to our understanding of the complex processes through which organizational-level decisions ultimately influence individual-level factors. The present findings contribute to progress in this task by suggesting that strategies whose objective is the cultivation of innovation feed entrepreneurs’ subjective values of innovation as well as expectations of growth. Although the duration of entrepreneurial experience moderates the relationship between acting as an innovative entrepreneur and subjective values of innovation, the results suggest that entrepreneurs’ expectations are primarily driven by their internal perceptions of reality.