Entrepreneurial Experience and Venture Success: A Comprehensive Meta-Analysis of Performance Determinants

• Autorzy: Matúš Grežo , Róbert Hanák
• Języki publikacji: EN

Abstrakty

EN

PURPOSE: In both theory and practice, the entrepreneur's prior experience is considered to be one of the most important human capital factors affecting venture performance. Nonetheless, the research on the effect of experience on venture performance has produced inconclusive findings. The literature explaining this inconclusiveness is sparse, but several determinants have been identified, such as the variability in the conceptualization and measurement of experience and performance, age of the investigated ventures, types of industry, or size and composition of venture management. The inconsistency of these features across primary studies makes it difficult to compare the results and to integrate findings. METHODOLOGY: This meta-analysis reviews and summarizes 80 primary studies in order to investigate the relationship between entrepreneur's experience and venture performance. We investigated the effect of five determinants of this relationship, namely the type of experience, type of performance, venture age, size of managerial team, and composition of managerial team. A random effect model was applied and the correlation coefficient was used as an indicator of effect size. FINDINGS: The study found that experience positively affected venture performance, although the magnitude of the effect was rather small. Venture performance showed to have the strongest significant relationship with start-up experience, followed by industrial, working, and managerial experience. International, functional, and entrepreneurial experience had a non-significant effect on venture performance. Moreover, the effect of experience on venture performance was not significant for older ventures. Experience significantly affected two types of venture performance, namely the size of venture and profitability, while the effect on growth was non-significant. Finally, of all the types of venture management, the experience of owner-inclusive entrepreneurial teams had the greatest effect on venture performance. IMPLICATIONS: Investor practitioners may find it helpful to assess entrepreneurs' experience within a broader context, taking account of the types of experience the entrepreneur possesses. Entrepreneurs' international, functional, and entrepreneurial experience should be considered very carefully, as they had a non-significant effect on venture performance. In contrast, having experience of founding a venture or of a particular industry seems to provide more value than experience of doing business internationally, or being in business for many years. Another important aspect that investors and venture capitalists should take into account is the size and composition of the entrepreneurial team and the extent to which the venture proposal reflects the different types of experience the team members possess. ORIGINALITY AND VALUE: The study contributes to the human capital literature by firstly attempting to examine systematically the overall magnitude of the relationship between entrepreneur's experience and venture performance. It also contributes by investigating the determinants of the relationship between experience and venture performance. It summarizes and combines previous inconclusive findings about the impact of different types of experience on different venture performance outcomes. (original abstract)

Słowa kluczowe

EN

Entrepreneurship; Human capital; Learning by doing; Meta-analysis; Startup; Investment decisions making; Knowledge generating

PL

Przedsiębiorczość; Kapitał ludzki; Uczenie się przez działanie; Metaanaliza; Przedsiębiorstwo typu start-up; Podejmowanie decyzji inwestycyjnych; Generowanie wiedzy

• Czasopismo: Journal of Entrepreneurship, Management and Innovation (JEMI)
• Rocznik: 2024
• Tom: 20
• Numer: nr 1 Exploring Entrepreneurial Intentions, Innovation, and Performance in Small and Medium-Sized Enterprises
• Strony: 5--29

Twórcy

autor

Matúš Grežo

• Slovak Academy of Sciences, Slovakia

autor

Róbert Hanák

• University of Economics in Bratislava, Slovakia

Bibliografia

• Aldrich, H., & Martinez, M. (2001). Many are called, but few are chosen: An evolutionary perspective for the study of entrepreneurship. Entrepreneurship Theory and Practice, 25(4), 41-56. https://doi.org/10.1007/978-3-540-48543-8_14
• Arthurs, J., & Busenitz, L. (2003). The boundaries and limitations of agency theory and stewardship theory in the venture capitalist/entrepreneur relationship. Entrepreneurship Theory and Practice, 28(2), 145-162. https://doi.org/10.1046/j.1540-6520.2003.00036.x
• Arthurs, J. D., Busenitz, L. W., Hoskisson, R. E., & Johnson, R. A. (2009). Firm-specific human capital and governance in IPO firms: Addressing agency and resource dependence concerns. Entrepreneurship Theory and Practice, 33(4), 845-865. https://doi.org/10.1111/j.1540-6520.2009.00329.x
• Babcock-Lumish, T. L. (2005). Venture capital decision-making and the cultures of risk: An application of Q methodology to US and UK innovation clusters. Competition & Change, 9(4), 329-356. https://doi.org/10.1179/102452905X55930
• Baron, J., Hannan, M., & Burton, M. (1999). Building the iron cage: Determinants of managerial intensity in the early years of organizations. American Sociological Review, 64(4), 527-548. https://doi.org/10.2307/2657254
• Baron, R. A., & Ensley, M. D. (2006). Opportunity recognition as the detection of meaningful patterns: Evidence from comparisons of novice and experienced entrepreneurs. Management Science, 52(9), 1331-1344. https://doi.org/10.1287/mnsc.1060.0538
• Bates, T. (1990). Entrepreneur human capital inputs and small business longevity. The Review of Economics and Statistics, 72(4), 551-559. https://doi.org/10.2307/2109594
• Batjargal, B., Hitt, M. A., Tsui, A. S., Arregle, J. L., Webb, J. W., & Miller, T. L. (2013). Institutional polycentrism, entrepreneurs' social networks, and new venture growth. Academy of Management Journal, 56(4), 1024-1049. https://doi.org/10.5465/amj.2010.0095
• Becker, G. S. (1964). Human Capital. New York: Columbia University Press. https://doi.org/10.7208/chicago/9780226041223.001.0001
• Beckman, C. M., Burton, M. D., & O'Reilly, C. (2007). Early teams: The impact of team demography on VC financing and going public. Journal of Business Venturing, 22(2), 147-173. https://doi.org/10.1016/j.jbusvent.2006.02.001
• Beckman, C. M., & Burton, M. D. (2008). Founding the future: Path dependence in the evolution of top management teams from founding to IPO. Organization Science, 19(1), 3-24. https://doi.org/10.1287/orsc.1070.0311
• Bhide, A. (2000). The Origins and Evolution of New Businesses. New York: Oxford University Press.
• Boeker, W. (1997). Executive migration and strategic change: The effect of top manager movement on product-market entry. Administrative Science Quarterly, 42(2), 213-236. https://doi.org/10.2307/2393919
• Boeker, W., & Wiltbank, R. (2005). New venture evolution and managerial capabilities. Organization Science, 16(2), 123-133. https://doi.org/10.1287/orsc.1050.0115
• Borenstein, M., Hedges, L. V., Higgins, J. P., & Rothstein, H. R. (2009). Introduction to meta-analysis. West Sussex, England: John Wiley & Sons Ltd. https://doi.org/10.1002/9780470743386
• Bosma, N., van Praag, M., Thurik, R., & Wit, G. (2004). The value of human and social capital investments for the business performance of startups. Small Business Economics, 23(3), 227-240. https://doi.org/10.1023/B:SBEJ.0000032032.21192.72
• Brudel, J., Preisendorfer, P., & Ziegler, R. (1992). Survival chances of newly founded business organizations. American Sociological Review, 57(2), 227-242. https://doi.org/10.2307/2096207
• Cao, X., & Im, J. (2018). Founder human capital and new technology venture R&D search intensity: The moderating role of an environmental jolt. Small Business Economics, 50(3), 625-642. https://doi.org/10.1007/s11187-017-9911-5
• Capelleras, J. L., & Greene, F. J. (2008). The determinants and growth implications of venture creation speed. Entrepreneurship and Regional Development, 20(4), 317-343. https://doi.org/10.1080/08985620701855683
• Capelleras, J. L., Greene, F. J., Kantis, H., & Rabetino, R. (2010). Venture creation speed and subsequent growth: Evidence from South America. Journal of Small Business Management, 48(3), 302-324. https://doi.org/10.1111/j.1540-627X.2010.00296.x
• Carbonara, E., Tran, H. T., & Santarelli, E. (2019). Determinants of novice, portfolio, and serial entrepreneurship: An occupational choice approach. Small Business Economics, 2019: 1-29. https://doi.org/10.1007/s11187-019-00138-9
• Carpenter, M. A., Sanders, W. G., & Gregersen, H. B. (2001). Bundling human capital with organizational context: The impact of international assignment experience on multinational firm performance and CEO pay. Academy of Management Journal, 44(3), 493-511. https://doi.org/10.5465/3069366
• Cassar, G. (2014). Industry and startup experience on entrepreneur forecast performance in new firms. Journal of Business Venturing, 29(1), 137-151. https://doi.org/10.1016/j.jbusvent.2012.10.002
• Chandler, G. N. (1996). Business similarity as a moderator of the relationship between preownership experience and venture performance. Entrepreneurship Theory and Practice, 20(3), 51-65. https://doi.org/10.1177/104225879602000304
• Chandler, G. N., & Hanks, S. H. (1998). An examination of the substitutability of founders human and financial capital in emerging business ventures. Journal of Business Venturing, 13(5), 353-369. https://doi.org/10.1016/S0883-9026(97)00034-7
• Chandler, G. N., & Lyon, D. W. (2009). Involvement in knowledge-acquisition activities by venture team members and venture performance. Entrepreneurship Theory and Practice, 33(3), 571-592. https://doi.org/10.1111/j.1540-6520.2009.00317.x
• Cimerova, H. (2012). The influence of CEO experience and education on firm policies. Nova School of Business and Economics. Retrieved from https://docentes.fe.unl.pt/~hcimerova/HC_CEOexpedu&fipol_wplet.pdf
• Colombelli, A. (2015). Top management team characteristics and firm growth: Evidence from a sample of listed companies. International Journal of Entrepreneurial Behavior & Research, 21(1), 107-127. https://doi.org/10.1108/IJEBR-10-2013-0181
• Colombo, M. G., Croce, A., & Murtinu, S. (2014). Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms. Small Business Economics, 42(2), 265-282. https://doi.org/10.1007/s11187-013-9483-y
• Cooper, A. C., & Bruno, A. (1977). Success among high-technology firms. Business Horizons, 20(2), 16-22. https://doi.org/10.1016/0007-6813(77)90096-9
• Cooper, A. C., & Gimeno-Gascon F. J. (1992). Entrepreneurs, Processes of Founding, and New-Firm Performance. In D. L. Sexton & J. D. Kasarda (Eds.), The state of the art in entrepreneurship (pp. 301-340). Boston: PWS-Kent Publishing Company. https://www.worldcat.org/title/state-of-the-art-of-entrepreneurship/oclc/1082497712?referer=di&ht=edition
• Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5), 371-395. https://doi.org/10.1016/0883-9026(94)90013-2
• Cooper, A. C., & Daily, C. M. (1997). Entrepreneurial teams. In D. L. Sexton, & R. W. Smilor (Eds.), Entrepreneurship 2000 (pp. 127-150). Chicago, IL: Upstart Publishing Company.
• Cope, J., & Watts, G. (2000). Learning by doing: An exploration of experience, critical incidents and reflection in entrepreneurial learning. International Journal of Entrepreneurial Behaviour & Research, 6(3), 104-124. https://doi.org/10.1108/13552550010346208
• Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology, 96(3), 443-456. http://dx.doi.org/10.1037/a0022147
• Dahl, M. S., & Reichstein, T. (2007). Are you experienced? Prior experience and the survival of new organizations. Industry and Innovation, 14(5), 497-511. https://doi.org/10.1080/13662710701711414
• Dalley, J., & Hamilton, B. (2000). Knowledge, context and learning in the small business. International Small Business Journal, 18(3), 51-59. https://doi.org/10.1177/0266242600183003
• Dalziel, M. (2008). Immigrants as extraordinarily successful entrepreneurs: A pilot study of the Canadian experience. Journal of Small Business & Entrepreneurship, 21(1), 23-36. https://doi.org/10.1080/08276331.2008.10593411
• Dana, L. P., Grandinetti, R., & Mason, M. C. (2016). International entrepreneurship, export planning and export performance: Evidence from a sample of winemaking SMEs. International Journal of Entrepreneurship and Small Business, 29(4), 602-626. https://doi.org/10.1504/ijesb.2016.10000509
• ^Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301-331. https://doi.org/10.1016/S0883-9026(02)00097-6
• Deakins, D., & Freel, M. (1998). Entrepreneurial learning and the growth process in SMEs. The Learning Organization, 5(3), 144-155. https://doi.org/10.1108/09696479810223428
• Debrulle, J., Maes, J., & Ramboer, S. (2014). Smells like team spirit? How entrepreneurial founding team motivations affect new venture financial and innovation performance. Beleidsrapport STORE-B-14-011, Nederlandstalige samenvatting door Sander Ramboer. Retrieved from https://pdfs.semanticscholar.org/9111/67b84d9c205f4c798273c64ad42d26a709a2.pdf
• Delmar, F., & Shane, S. (2003). Does business planning facilitate the development of new ventures? Strategic Management Journal, 24(12), 1165-1185. https://doi.org/10.1002/smj.349
• Delmar, F., & Shane, S. (2006). Does experience matter? The effect of founding team experience on the survival and sales of newly founded ventures. Strategic Organization, 4(3), 215-247. https://doi.org/10.1177/1476127006066596
• Dencker, J. C., & Gruber, M. (2015). The effects of opportunities and founder experience on new firm performance. Strategic Management Journal, 36(7), 1035-1052. https://doi.org/10.1002/smj.2269
• DeTienne, D. R., & Cardon, M. S. (2012). Impact of founder experience on exit intentions. Small Business Economics, 38(4), 351-374. https://doi.org/10.1007/s11187-010-9284-5
• Dimov, D. (2010). Nascent entrepreneurs and venture emergence: Opportunity confidence, human capital, and early planning. Journal of Management Studies, 47(6), 1123-1153. https://doi.org/10.1111/j.1467-6486.2009.00874.x
• Droge, C., Stanko, M. A., & Pollitte, W. A. (2010). Lead users and early adopters on the web: The role of new technology product blogs. Journal of Product Innovation Management, 27(1), 66-82. https://doi.org/10.1111/j.1540-5885.2009.00700.x
• Dyke, L. S., Fischer, E. M., & Reuber, A. R. (1992). An inter-industry examination of the impact of owner experience on firm performance. Journal of Small Business Management, 30(4), 73-86. https://onlinelibrary.wiley.com/journal/1540627x

Identyfikatory

DOI

doi.org/10.7341/20242011