Wiley Handbook of Entrepreneurship

Gorkan Ahmetoglu is Lecturer in Business Psychology at University College London (UCL), and co-founder of Meta Profiling Ltd. Tomas Chamorro-Premuzic is Professor of Business Psychology at University College London (UCL), and CEO of Hogan Assessments. Bailey Klinger is Founder and Executive Chairman of the Entrepreneurial Finance Lab, and was previously a Fellow at Harvard University's Center for International Development. Tessa Karcisky is a Business Psychologist with a PhD from the University of Cologne.

• Preface xvAcknowledgments xxiiiSection 1 Entrepreneurship: Theory and Research1a: Understanding Entrepreneurship 11 A Future of Entrepreneurship Research: Domain, Data, Theory, and Impact 3Per DavidssonIntroduction 3Narrowing and Broadening the Field 3Richer, Better, and More Varied Data 6The Quest for Increased Theoretical Precision 7Abstraction, Conceptual Clarity, and Operationalization 9Sample Size, Data Quality, Statistical Significance, and Practical Relevance 12Expanding the null hypothesis 13Stating predictions as comparisons 13Developing non-nil predictions 13Specifying other than linear functional forms 13Recognizing Context 13Increased Demands for Practical Relevance 14Conclusion 17References 172 Entrepreneurship as a Process: Empirical Evidence for Entrepreneurial Engagement Levels 25Peter van der Zwan and Roy ThurikIntroduction 25Merits of Entrepreneurship as a Process 27Three Stylized Facts 28Latent Entrepreneurship 29Different Roles Throughout the Process 29Country Differences 30Conclusion and Recommendations for Future Research 31References 333 Types and Roles of Productive Entrepreneurship: A Conceptual Study 37Sander Wennekers and André van StelIntroduction 37Ensuing Research Questions 39Methodology 39Typologies and Types 39From Typologies/Dimensions to Major Types 41Twelve major types of entrepreneurship 43Further Reduction to Four Main Types 44Entrepreneurial Roles 45General Entrepreneurial Roles 45Specific Entrepreneurial Roles 46Intermediary Effects and Final Contributions 50Intermediate Effects 51Final Contributions 54Causal Chains per Main Type of Entrepreneurship: A Synthesis 57Ambitious Innovators 57Ambitious Replicators/Adapters 58Solo Self-Employed 59Managerial Employers (Rest Group) 60Discussion and Conclusions 61Summarizing and Interpreting the Main Findings 61Implications for Research 62Implications for Policy 63Conclusion 65References 654 Toward a Theory of Entrepreneurial Behavior 71Bruce T. Teague and William B. GartnerIntroduction 71The Current State of Entrepreneurial Behavior Scholarship 72(Re)defining Entrepreneurial Behavior 73Defining Behavior 73Defining Entrepreneurial Behavior 74The Role of Behavior in Existing Theories and Frameworks 76A Theory of Enterpreneurial Behavior 78Behavioral Repertoire 80Sources of Behavioral Variation 81Level of Mastery 83Implications of a Theory of Entrepreneurial Behavior 84Toward an Entrepreneurial Behavior Research Agenda 85Next Steps 86Conclusions 87References 88Section 2 The Individual: Psychology of Entrepreneurship 955 The Psychology of Entrepreneurship: A Selective Review and a Path Forward 97Kelly G. Shaver and Amy E. DavisIntroduction 97Why Ask Why? 97The Personality Approach 98Single Traits 98Achievement Motivation 98Risk Propensity 99Broad Sets of Dimensions 100Inventories of Traits 100Latent Dimensions 101The Social Cognition Approach 102Career Reasons 103Attribution Processes 104Social Cognitive Theories 104Expectancy Theory 105Theory of Planned Behavior 105Entrepreneurial Teams 106Approaches to Teams 106Team Structure 107Toward a More Inclusive Future 107Culturally Inclusive and Specific 108Gender 108Race and Ethnicity 108Life Course and Personal Context 108Country of Origin 109Methodologically Inclusive and Specific 109Theoretically Precise 109Multiple Dimensions 110Replication 110Teams Over Time 110Conclusion 111References 1116 Tools Entrepreneurs Need for Converting Dreams To Reality—And Achieving Success 119Robert A. BaronIntroduction 119Motivation: What Goals Do Entrepreneurs Seek 120Cognitive Tools: Creativity, Opportunity Recognition, and Avoiding Cognitive Traps 121Opportunity Recognition of Creation: Recognizing or Creating Practical Uses of Ideas 122The Personal Side of Entrepreneurial Success: Characteristics and Skills That Contribute to Success 125Personal Characteristics: Self-Efficacy, the “Big Five,” and Willingness to Improvise 126From Desire to Achievement: The Role of Self-Regulation 127Passion: Deep, Emotional Commitment to Entrepreneurship and the Roles it Involves 128The Social Side of Entrepreneurial Success II: Forming High Quality Social Networks and Getting Along With Others 129How do Entrepreneurs Build their Social Networks? 130Dealing with Adversity—and Failure 131Coping With Stress 132Psychological Capital 132Dealing with Business Failure: When One Dream Ends Another (Should) Begin 133Putting it All Together: The Successful Entrepreneur’s Tool Kit 133Tools for Changing the World—or at Least Some Corner of it 134References 1367 Creativity and Entrepreneurship: A Process Perspective 139Maike Lex and Michael M. GielnikIntroduction 139Creativity and Entrepreneurship: A Conceptual Differentiation 140The Effect of Creativity on Entrepreneurship 141Toward a Cumulative Process Model of Creativity in Entrepreneurship 143Key Assumptions of the Cumulative Process Model 145Creativity and its Underlying Components 145The Entrepreneurial Process and its Constituting Phases 145An Ambidexterity Perspective on Creativity in the Entrepreneurial Process 147A Cumulative Process Model on Creativity in Entrepreneurship 149Prelaunch 149Launch 151Postlaunch 154The Cumulative Process Model: A Summary 157An Interactionist Perspective on Creativity in Entrepreneurship 157Practical Implications: Promoting Creativity to Promote Entrepreneurship 159Future Research 161Conclusion 162References 1638 The Dark Side of the Entrepreneurial Personality: Undesirable or Maladaptive Traits and Behaviors Associated with Entrepreneurs 173Angelo S. DeNisi and Benjamin N. AlexanderIntroduction 173Recent Interest and Older Views 174Entrepreneurial Personality and Entrepreneurship Outcomes 175Personality and Entrepreneurial Intentions 175Personality and Entrepreneurial Success 177Broader Impact 179Future Research on the Dark Side of the Entrepreneurial Personality 180Untangling Outcomes and Trait Phenomena 180Basic Issues 182Conclusion 183References 1849 Female Entrepreneurship and IQ 187R.W. HaferIntroduction 187Measuring Female Entrepreneurship and IQ 188The Female Entrepreneurship Index 188National IQ 190The Model and Data 191Regression Results 194Robustness Tests 195Caveats 197Conclusions and Policy Implications 198References 198Appendix A 201Appendix B 204Acknowledgments 20410 The Person in Social Entrepreneurship: A Systematic Review of Research on the social Entrepreneurial Personality 205Ute Stephan and Andreana DrenchevaIntroduction 205Theoretical Background 206Social Entrepreneurship 206Personality 207Review Approach and Overview of the Reviewed Studies 207Review Findings 208Motivation 208General values, motives, interests 211Specific motives 213Traits 216Identity 217Leadership and Managerial Skills 218Discussion and Opportunities for Future Research 220Building on Strengths and Insights of the Current Research 222References 223Acknowledgment 22911 An Individual Differences Approach to Studying Entrepreneurial Tendencies 231Gorkan Ahmetoglu and Tomas Chamorro-PremuzicIntroduction 231The Pillars of Individual Differences Psychology 232The Psychological Approach to Entrepreneurship 233A Critical Evaluation of the Psychological Approach to Entrepreneurship 234A Critical Evaluation of the Group Differences Approach 234A Critical Evaluation of Comparisons Between More and Less Successful Entrepreneurs 236An Individual Differences Approach to Understanding Entrepreneurial Tendencies 236(Re)defining Entrepreneurial Tendencies 237The Practical Importance of Theoretical Preciseness 238Recommendations for Researching Entrepreneurial Tendencies 239How Do We Assess Entrepreneurial Tendencies? 240How Do General Entrepreneurial Tendencies Manifest in Contextual Behavior? 242Classification of Entrepreneurial Behaviors 242How Do General Entrepreneurial Tendencies and Contextual Behavior Manifest in Entrepreneurial Output? 245Discussion 247Implications for Entrepreneurship Research 248Implications Beyond Business Creation 249Other Considerations 249Existing and Future Research 250Conclusion 251References 251Section 2a: Genetics of Entrepreneurship 25712 Biology and Entrepreneurship 259Ahmed Nofal, Nicos Nicolaou, and Noni SymeonidouIntroduction 259Genetics and Entrepreneurship 260Quantitative Genetics in Entrepreneurship 260Tendency to Engage in Entrepreneurship 260Genetic Influences on Physiology 261Genetic Covariation with Individual Attributes 261Gene X Environment Interactions 262Gene X Environment Correlations 262Opportunity Recognition 262Entrepreneurial Intention 262Entrepreneurial Performance 263Molecular Genetics in Entrepreneurship 263Candidate-Gene Studies 263Genome-Wide Association Studies (GWAS) 264Hormones in Entrepreneurship 265Physiology in Entrepreneurship 266Neuroscience in Entrepreneurship 266Quantitative Electroencephalogram 267Functional Magnetic Resonance Imaging 267Conclusion 267References 26813 “Born, Not Made” and Other Beliefs About Entrepreneurial Ability 273Daniel P. ForbesIntroduction 273“Born, Not Made”: Beliefs and Evidence 274Understanding How People Think About Entrepreneurs 277Essentialist Lay Beliefs 277Genetic Essentialist Lay Beliefs About Entrepreneurs 278Born-Not-Made and General Beliefs About Entrepreneurial Ability 280Implications of Belief in Born-Not-Made 280Implications for the Judgments People Make About Their Own Entrepreneurial Abilities 281Implications for the Judgments People Make About Others’ Entrepreneurial Abilities 283Discussion 284References 286Acknowledgments 291Section 3 The Organization: Corporate Entrepreneurship and Entrepreneurial Teams3a: The Organization 29314 Corporate Entrepreneurship & Innovation: Today’s Leadership Challenge 295Donald F. KuratkoIntroduction 295What Constitutes the Domain of Corporate Entrepreneurship? 296The Importance of a Climate Conducive for Innovative Activity 298Managerial Levels and Contributions to Entrepreneurial Efforts 300Ingredients for an Effective Corporate Entrepreneurial Strategy 302Challenges with Implementation of Corporate Entrepreneurship 304Future Expectations 305References 307Section 3b: Entrepreneurial Teams 31315 Unraveling the Black Box of New Venture Team Processes 315Ekaterina S. Bjornali, Mirjam Knockaert, Nicolai Foss, Daniel Leunbach and Truls EriksonIntroduction 315The New Venture Team as a Focal Object of Inquiry 316Internal Factors 316External Factors 317Disentangling NVT “Processes” in the Input-Processes-Outcome Framework 318Toward a Framework for Studying NVT Processes 318Prefounding Phase 319Postfounding phase 319Selected Theories Within the Theoretical Foundations 321Faultline Theory 321Future Research Directions 324Behavioral Integration and Shared Cognition 324Future Research Directions 325Shared Leadership 326Future Research Directions 327Creativity and Imagination 328Future Research Directions 329Organizational and Team Justice 330Future Research Directions 331Transactive Memory Systems 332Future Research Directions 332Measuring New Venture Team Processes 333Methodological Issues in NVT Studies 333Collinearity 334Dominant Survey Method 334Cross-Sectional Designs 334Meeting Methodological Challenges 335Improving Survey Instruments 335Simulation Exercises: Agent-Based Modeling 335Neurostudies 336Towards a Mixed Methods Approach 337Concluding Remarks 337References 338Section 4 National and International Entrepreneurship4a: National Entrepreneurship 34916 The Knowledge Spillover Theory of Entrepreneurship and the Strategic Management of Places 351David B. Audretsch and Erik E. LehmannIntroduction 351The Challenge of Inequality of Places 353Globalization and Regionalization 353The Mediating Role of Entrepreneurship in Transforming Places 353Transforming Regions to Places 355The Knowledge Spillover Theory of Entrepreneurship 356Defining the Knowledge Spillover Theory of Entrepreneurship 356The Emergence of the Knowledge Spillover Theory of Entrepreneurship 358Knowledge Spillover Theory and Places 360The Knowledge Filter and the Strategic Management of Place 363Absorptive Capacity of Place 366Emergence of a Strategic Management Approach of Place 368Conclusions 371References 37217 The Effect of New Business Formation on Regional Development 379Michael FritschIntroduction 379The Basic Relationships 380The Magnitude of Direct and Indirect Effects 383Differences in the Contribution of New Business Formation to Economic Growth Across Industries and Regions 385The Persistence of Regional Entrepreneurship 389Policy Implications 391Avenues for Further Research 392Final Remarks 396References 39618 National Culture and Entrepreneurship 401Gabriella Cacciotti and James C. HaytonIntroduction 401Method 401Conceptualization of National Culture in Entrepreneurship Research 402National Culture as Values 403Definition 403Measures 403Outcomes 404National Culture as Norms and Practices 408Definition 408Measures 409Outcomes 410Summary 412Directions for Future Research 414Conclusion 416References 41619 Management of Entrepreneurial Ecosystems 423Erkko Autio and Jonathan LevieIntroduction 423Entrepreneurial Ecosystems: Definitions and Policy Challenges 425Management of Complex Socioecological Ecosystems 428Stakeholder Consultation 429Stakeholder Participation 430Scottish Innovation-Based Entrepreneurial Ecosystem 431Method 431REAP Scotland 432Field Trial in Scotland 435Case Reflection 438Discussion 442Conclusion 445References 446Section 4b: International Entrepreneurship 45120 International Entrepreneurship and Networks 453Salman Ahmad and Pavlos DimitratosIntroduction 453International Entrepreneurship: Definition 454Network Perspective 456Networks and International Entrepreneurship 457Important Themes: Intersection of International Entrepreneurship and Networks Research 458Network Creation and International Entrepreneurship 460Network Types and International Entrepreneurship 460Network Structures and International Entrepreneurship 463Network Dynamics and International Entrepreneurship 464Network’s Benefits and International Entrepreneurship 465Theoretical Basis: Intersection of International Entrepreneurship Networks Research 468Transaction Cost Economics (TCE) 469Organizational Learning 469Resource-Based View 470Social Capital 470Knowledge-Based View 471Other Theories 471Practical Implications 472Future Research 472Conclusion 472References 473Index 485