Lee, Lena and Wong, Poh Kam (2009): Novel Opportunity Exploitation: Impact of Personality, Environment and Uncertainty Avoidance Culture.
Download (199kB) | Preview
This study shows that the joint effects of the entrepreneur’s personality and an unpredictable environment, as well as the interaction effects of a low uncertainty avoidance culture, predict opportunity exploitation. Our study’s findings are consistent with the emerging opportunity-exploiter nexus framework of Shane and Venkataraman, which posits that the rate and nature of entrepreneurial exploitation activities are jointly determined by the nexus of environmental factors that shape the emergence of opportunities and the supply of opportunity-seekers with the right entrepreneurial personalities to exploit such opportunities. Specifically, we found that entrepreneurs who display a high level of extroversion, agreeableness, openness to experience, conscientiousness, and non-neuroticism, have a greater propensity to exploit novel opportunities in unpredictable environments and low uncertainty avoidance cultures. A study involving 570 entrepreneurs from UK, Thailand, and South Korea reveals that the interaction effects between personality and environmental unpredictability is more pronounced in cultures with a low high degree of uncertainty avoidance.
|Item Type:||MPRA Paper|
|Original Title:||Novel Opportunity Exploitation: Impact of Personality, Environment and Uncertainty Avoidance Culture|
|Keywords:||Opportunity exploitation; personality; culture|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L26 - Entrepreneurship
M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M13 - New Firms ; Startups
|Depositing User:||Lena Lee|
|Date Deposited:||12. Jul 2009 19:16|
|Last Modified:||13. Feb 2013 14:54|
Aldrich, H. 1999. Organizations Evolving. Sage, London.
Aldrich, H.E., and Wiedenmayer, G. 1993. From traits to rates: An ecological perspective on organizational foundings. Advances in Entrepreneurship, Firm Emergence, and Growth, 1: 145-195. JAI Press, Greenwich, Conn.
Ardichvili, A., Cardozo, R., and Ray, S. 2003. A theory of entrepreneurial opportunity identification and development. Journal of Business Venturing. 18 105-123.
Autio, E. and Lumme, A. 1998. Does the Innovator role Affect the Perceived Potential for Growth? Analysis of Four Types of New, Technology-Based Firms. Technology Analysis & Strategic Management. 10(1) 41-54.
Bridge, S., and O’Neill, K., and Cromie, S., 1998. Understanding enterprise, entrepreneurship and small firms. Macmillan, London.
Caird, S.P. 1993. What Do Psychological Tests Suggest About Entrepreneurs? Journal of Managerial Psychology. 8(6) 11-20.
Casson, M. 1995. Entrepreneurship and Business Culture. Edward Elgar, Aldershot, UL & Brookfield, US.
Chatterjee, S., and Price, B. 1991. Regression analysis by example. Wiley, New York.
Choi, Y.R., and Shepherd, D.A. 2004. Entrepreneurs’ Decisions to Exploit Opportunities. Journal of Management. 30(3) 377-395.
Cohen, W., and Levinthal, D. 1990. Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly. 35(1) 128-152.
Costa, P. and McCrae, R. 1992. NEO-PR-R Professional Manual. Psychological Assessment Resources, Inc. Florida.
Covin, J.G., and Slevin, D. 1990. New venture strategic posture, structure, and performance: An industry life cycle analysis. Journal of Business Venturing. 5(2) 123-135.
De Koning, A. 1999. Conceptualising opportunity recognition as a socio-cognitive process. Centre for Advanced Studies in Leadership, Stockholm.
European Commission. 1995. Green Paper on Innovation. Brussels.
Fagenson, E.A. 1993. Personal value systems of men and women entrepreneurs versus managers. Journal of Business Venturing. 8(5) 409-430.
Ferguson, R., and Olofsson, C. 2004. Science Parks and the Development of NTBFs - Location, Survival and Growth. The Journal of Technology Transfer. 29(1) 5–18.
Freel, M.S. and Robson, P.J.A. 2004. Small Firm Innovation, Growth and Performance. Evidence from Scotland and Northern England. International Small Business Journal. 22(6) 561-575.
Gartner, W.B., 1988. Who is an entrepreneur? is the wrong question. American Journal of Small Business. 12(4) 11-32.
Galbraith, J. 1973. Designing Complex Organizations. Addison-Wesley Publishing Co., Reading, MA.
Grant, R.M. 1996. Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Creation. Organization Science. 7(4) 375-387.
Hayton, J.C., George, G., and Zahra, S.A. 2002. National Culture and Entrepreneurship: A Review of Behavioral Research. Entrepreneurship Theory and Practice. 26(4) 33-52.
Hofstede, G. 1980. Culture’s Consequences: International Differences in Work-Related Values. Beverly Hills, CA: Sage.
Hofstede, G. 2001. Culture’s Consequence: Comparing Values, Behavior, Institutions, and Organizations Across Nations. Thousand Oaks: Sage.
Hough, L.M., and Oswald, F.L., 2000. Personnel Selection: Looking Toward the Future-Remembering the Past. Annual Review of Psychology. 51(1) 631-664.
Huisman, D. 1985. Entrepreneurship: economic and cultural influences on the entrepreneurial climate. European Research. 13(4) 10-17.
Jang, K.L., Livesley, W.J., and Vernon, P.A. 1996. Heritability of the big five personality dimensions and their facets: a twin study. Journal of Personality. 64(3) 577-591.
Kennedy, P. 1992. A Guide to Econometric Methods. MIT Press, Cambridge, M.A.
Knight, F.H. 1921. Risk, uncertainty, and profit. Houghton Mifflin, New York.
Konig, C., Steinmetz, H., Frese, M. and Rauch, A., and Wang, Z-M. 2007. Scenario-based scales measuring cultural orientations of business owners. Journal of Evolutionary Economics. 17(2) 211-239.
Landis, J. R., & Koch, G. G. (1977). The measurement of observer agreement for categorical data. Biometrics. 33(1) 159-174.
Little, A. 1977. New Technology-Based Firms in the United Kingdom and the Federal Republic of German. Wilton House, London.
Long, J. 1982. The income tax and self-employment. National Tax Journal. 35(1) 31-42.
Lumpkin, G.T., and Dess, G.G. 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review. 21(1) 135-172.
MacMillan, I.C., Siegel, R., and Narasimha, S. 1985. Criteria Used by Venture Capitalists to Evaluate New Venture Proposals. Journal of Business Venturing. 1(1) 119–128.
McGrath, R., and MacMillan, I. 1992. More like each other anyone else? A cross-cultural study of entrepreneurial perceptions. Journal of Business Venturing, 7, 419-429.
Miller, D. 1983. The correlates of entrepreneurship in three types of firms. Management Science 29(7) 770-791.
Miller, D., and Dröge, C. 1986. Psychological and Traditional Determinants of Structure. Administrative Science Quarterly. 31(4) 539-560.
Miller, D., and Friesen, P. 1984. Organizations: A Quantum View. Prentice-Hall, Englewood Cliffs, N.J.
Miller, D., Dröge, C., and Toulouse, J. 1988. Strategic process and content as mediators between organizational context and structure. Academy of Management Journal. 31(3) 544-569.
Milliken, F.J. 1987. Three types of perceived uncertainty about the environment: state, effect, and response uncertainty. Academy of Management. The Academy of Management Review. 12(1) 133-143.
Oakey, R. P. and Cooper, S.Y. 1991. The relationship between product technology and innovation performance in high technology small firms. Technovation. 11(2) 79-92.
Saemundsson, R., and Dahlstrand, L. 2005. How Business Opportunities Constrain Young Technology-Based Firms from Growing into Medium-Sized Firms. Small Business Economics. 24(2) 113-129.
Sarasvathy, S.D. 2004. Constructing corridors to economic primitives. Entrepreneurial opportunities as demand-side artifacts. Butler, J.E. ed. Opportunity-identification and entrepreneurial behaviour. Information Age Publishing Inc., 291-312.
Schmit, M. J., and Ryan, A. M. 1993. The Big Five in personnel selection: Factor structure in applicant and non-applicant populations. Journal of Applied Psychology. 78(6) 966-974.
Shane, S. 2000. Prior knowledge and the discovery of entrepreneurial opportunities. Organizational Science. 11(4) 448-169.
Shane, S. 2003. A general theory of entrepreneurship. The individual-opportunity nexus. Edward Elgar Publishing, UK.
Shane, S., and Venkataraman, S. 2000. The Promise of Entrepreneurship as a Field of Research. Academy of Management Review. 25(1) 217-226.
Shaver, K. G., and Scott, L. R. 1991. Person, process, choice: The psychology of new venture creation. Entrepreneurship Theory & Practice. 91(16) 23-45.
Taylor, M. 1996. Earnings, independence or unemployment: why become self-employed? Oxford Bulletin of Economics and Statistics. 58(2) 253-266.
Teece, D. J. 1998. Capturing value from knowledge assets: The new economy, markets for know-how, and intangible assets. California Management Review. 40(3) 55-79.
Tidd, J., and Bodley, K. 2002. The influence of project novelty on the new product development process. R&D Management. 32(2) 127-138.
Uhlaner, L.M. and Thurik, A.R. 2007. Post-materialism influencing total entrepreneurial activity across nations. Journal of Evolutionary Economics 17(2): 161-185
Van Praag, C.M, and Cramer, J.S. 2001. The Roots of Entrepreneurship and Labour Demand: Individual Ability and Low Risk Aversion. Economica. 68(269) 45-62.
Venkataraman, S. 1997. The distinctive domain of entrepreneurship research: An editor’s perspective. In J. Katz and R. Brockhaus, eds. Advances in Entrepreneurship, Firm Emergence and Growth. JAI Press, Greenwich, CT, 119-138.
Wennekers, S., Thurik, R. van Stel, A. and Noorderhaven, N. 2007. Uncertainty Avoidance and the Rate of Business Ownership across 21 OECD Countries, 1976-2004. Journal of Evolutionary Economics 17 (2), 133-160.
Wong, P.K., Lee, L., and Foo, M.D. 2008. Occupational Choice: The Influence of Product vs. Process Innovation. Small Business Economics. 30(3) 267-281.
Zahra, S. 1993. Environment, corporate entrepreneurship and financial performance: A taxonomic approach. Journal of Business Venturing. 8(4) 319-340.
Zahra, S., and Covin, J.G. 1995. Contextual influences on the corporate entrepreneurship – performance relationship: A longitudinal analysis. Journal of Business Venturing. 10(1) 43-58.