IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v20y2024i3d10.1007_s11365-024-00989-z.html
   My bibliography  Save this article

The relationship between high growth expectations and new venture creation in nascent entrepreneurs: The key role of competitive innovation

Author

Listed:
  • Sufia Mohand-Amar

    (University of Granada)

  • María del Mar Fuentes-Fuentes

    (University of Granada)

  • Matilde Ruiz-Arroyo

    (University of Granada)

Abstract

New venture creation is a long and complex process that requires significant personal effort. In this study, we analyse how high growth expectations influence new venture creation in nascent entrepreneurs. In addition, we aim to investigate the impact of competitive innovation on new venture creation through the mechanism established between high growth expectations and entrepreneurial effort. Drawing on a sample of 495 nascent entrepreneurs from PSED II, our results show that high growth expectations indirectly influence the creation of a new firm through nascent entrepreneurial effort. Furthermore, the competitive innovation of nascent entrepreneurs exhibits a positive relationship with new venture creation, facilitated by the relationship between high growth expectations and entrepreneurial effort. These results contribute to a better understanding of the role that high growth expectations play in the nascent entrepreneurial process and how competitive innovation and growth expectations explain the creation of a new firm.

Suggested Citation

  • Sufia Mohand-Amar & María del Mar Fuentes-Fuentes & Matilde Ruiz-Arroyo, 2024. "The relationship between high growth expectations and new venture creation in nascent entrepreneurs: The key role of competitive innovation," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 2323-2345, September.
    • Handle: RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00989-z
    DOI: 10.1007/s11365-024-00989-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-024-00989-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-024-00989-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andrin Spescha & Martin Woerter, 2019. "Innovation and firm growth over the business cycle," Industry and Innovation, Taylor & Francis Journals, vol. 26(3), pages 321-347, March.
    2. Martinez Martha A. & Yang Tiantian & Aldrich Howard E., 2011. "Entrepreneurship as an Evolutionary Process: Research Progress and Challenges," Entrepreneurship Research Journal, De Gruyter, vol. 1(1), pages 1-28, January.
    3. Cassar, Gavin, 2006. "Entrepreneur opportunity costs and intended venture growth," Journal of Business Venturing, Elsevier, vol. 21(5), pages 610-632, September.
    4. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E., 2020. "The dynamics among entrepreneurship, innovation, and economic growth in the Eurozone countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 1106-1122.
    5. Estrin, Saul & Korosteleva, Julia & Mickiewicz, Tomasz, 2013. "Which institutions encourage entrepreneurial growth aspirations?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 564-580.
    6. Laurent Vilanova & Ivana Vitanova, 2020. "Unwrapping opportunity confidence: how do different types of feasibility beliefs affect venture emergence?," Small Business Economics, Springer, vol. 55(1), pages 215-236, June.
    7. Honig, Benson & Hopp, Christian, 2019. "Learning orientations and learning dynamics: Understanding heterogeneous approaches and comparative success in nascent entrepreneurship," Journal of Business Research, Elsevier, vol. 94(C), pages 28-41.
    8. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    9. Lucio Fuentelsaz & Consuelo González & Juan P. Maícas, 2021. "High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions," Small Business Economics, Springer, vol. 57(1), pages 473-492, June.
    10. Chong Kyoon Lee & Griffin W. Cottle & Sharon A. Simmons & Johan Wiklund, 2021. "Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 531-553, June.
    11. Galina Vereshchagina & Hugo A. Hopenhayn, 2009. "Risk Taking by Entrepreneurs," American Economic Review, American Economic Association, vol. 99(5), pages 1808-1830, December.
    12. Troilo, Michael, 2011. "Legal institutions and high-growth aspiration entrepreneurship," Economic Systems, Elsevier, vol. 35(2), pages 158-175, June.
    13. Diana Hechavarria & Maija Renko & Charles Matthews, 2012. "The nascent entrepreneurship hub: goals, entrepreneurial self-efficacy and start-up outcomes," Small Business Economics, Springer, vol. 39(3), pages 685-701, October.
    14. Brandon A. Mueller & Dean A. Shepherd, 2016. "Making the Most of Failure Experiences: Exploring the Relationship between Business Failure and the Identification of Business Opportunities," Entrepreneurship Theory and Practice, , vol. 40(3), pages 457-487, May.
    15. Alexander McKelvie & Anna Brattström & Karl Wennberg, 2017. "How young firms achieve growth: reconciling the roles of growth motivation and innovative activities," Small Business Economics, Springer, vol. 49(2), pages 273-293, August.
    16. Ute Stephan & Przemysław Zbierowski & Ana Pérez-Luño & Dominika Wach & Johan Wiklund & Marisleidy Alba Cabañas & Edgard Barki & Alexandre Benzari & Claudia Bernhard-Oettel & Janet A. Boekhorst & A, 2023. "Act or Wait-and-See? Adversity, Agility, and Entrepreneur Wellbeing across Countries during the COVID-19 Pandemic," Entrepreneurship Theory and Practice, , vol. 47(3), pages 682-723, May.
    17. Friar, John H & Meyer, Marc H, 2003. "Entrepreneurship and Start-Ups in the Boston Region: Factors differentiating High-Growth Ventures from Micro-ventures," Small Business Economics, Springer, vol. 21(2), pages 145-152, September.
    18. Josh Lerner, 2010. "The future of public efforts to boost entrepreneurship and venture capital," Small Business Economics, Springer, vol. 35(3), pages 255-264, October.
    19. Saul Estrin & Julia Korosteleva & Tomasz Mickiewicz, 2022. "Schumpeterian Entry: Innovation, Exporting, and Growth Aspirations of Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 46(2), pages 269-296, March.
    20. Per Davidsson & Bruce Kirchhoff & Abdulnasser Hatemi–j & Helena Gustavsson, 2002. "Empirical Analysis of Business Growth Factors Using Swedish Data," Journal of Small Business Management, Taylor & Francis Journals, vol. 40(4), pages 332-349, October.
    21. Chen, Chao C. & Greene, Patricia Gene & Crick, Ann, 1998. "Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?," Journal of Business Venturing, Elsevier, vol. 13(4), pages 295-316, July.
    22. David Audretsch & Alex Coad & Agustí Segarra, 2014. "Firm growth and innovation," Small Business Economics, Springer, vol. 43(4), pages 743-749, December.
    23. William Gartner & Jianwen Liao, 2012. "The effects of perceptions of risk, environmental uncertainty, and growth aspirations on new venture creation success," Small Business Economics, Springer, vol. 39(3), pages 703-712, October.
    24. Hayward, Mathew L.A. & Forster, William R. & Sarasvathy, Saras D. & Fredrickson, Barbara L., 2010. "Beyond hubris: How highly confident entrepreneurs rebound to venture again," Journal of Business Venturing, Elsevier, vol. 25(6), pages 569-578, November.
    25. Gunday, Gurhan & Ulusoy, Gunduz & Kilic, Kemal & Alpkan, Lutfihak, 2011. "Effects of innovation types on firm performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 662-676, October.
    26. Poh Wong & Yuen Ho & Erkko Autio, 2005. "Entrepreneurship, Innovation and Economic Growth: Evidence from GEM data," Small Business Economics, Springer, vol. 24(3), pages 335-350, January.
    27. Elizabeth Gatewood, 1993. "The Expectancies in Public Sector Venture Assistance," Entrepreneurship Theory and Practice, , vol. 17(2), pages 91-95, January.
    28. Kraft, Priscilla S. & Günther, Christina & Kammerlander, Nadine H. & Lampe, Jan, 2022. "Overconfidence and entrepreneurship: A meta-analysis of different types of overconfidence in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 37(4).
    29. Emanuele Brancati & Raffaele Brancati & Dario Guarascio & Antonello Zanfei, 2022. "Innovation drivers of external competitiveness in the great recession," Small Business Economics, Springer, vol. 58(3), pages 1497-1516, March.
    30. Mathew L. A. Hayward & Dean A. Shepherd & Dale Griffin, 2006. "A Hubris Theory of Entrepreneurship," Management Science, INFORMS, vol. 52(2), pages 160-172, February.
    31. Robson, Paul J A & Bennett, Robert J, 2000. "SME Growth: The Relationship with Business Advice and External Collaboration," Small Business Economics, Springer, vol. 15(3), pages 193-208.
    32. Frédéric Delmar & Scott Shane, 2003. "Does business planning facilitate the development of new ventures?," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1165-1185, December.
    33. Antonio Lecuna & Boyd Cohen & Roberto Chavez, 2017. "Characteristics of high-growth entrepreneurs in Latin America," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 141-159, March.
    34. Kolvereid, Lars, 1992. "Growth aspirations among Norwegian entrepreneurs," Journal of Business Venturing, Elsevier, vol. 7(3), pages 209-222, May.
    35. John Stayton & Vincent Mangematin, 2019. "Seed accelerators and the speed of new venture creation," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1163-1187, August.
    36. João J. Ferreira & Cristina I. Fernandes & Vanessa Ratten, 2017. "Entrepreneurship, innovation and competitiveness: what is the connection?," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 18(1), pages 73-95.
    37. Christopher Boudreaux & George Clarke & Anand Jha, 2022. "Social capital and small informal business productivity: the mediating roles of financing and customer relationships," Small Business Economics, Springer, vol. 59(3), pages 955-976, October.
    38. Davidsson, Per & Henrekson, Magnus, 2002. "Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
    39. Laffineur, Catherine & Dubard Barbosa, Saulo & Fayolle, Alain & Montmartin, Benjamin, 2020. "The unshackled entrepreneur: Occupational determinants of entrepreneurial effort," Journal of Business Venturing, Elsevier, vol. 35(5).
    40. Yuji Honjo & Kenta Ikeuchi & Hiroki Nakamura, 2022. "The Mediating Effect of Financial Motives in the Association between Entrepreneurial Experience and Subjective Well-Being: Evidence from Japan," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 1043-1067, April.
    41. Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, 2015. "Does innovativeness reduce startup survival rates?," Journal of Business Venturing, Elsevier, vol. 30(4), pages 564-581.
    42. Johan Wiklund & DEAN Shepherd, 2003. "Knowledge‐based resources, entrepreneurial orientation, and the performance of small and medium‐sized businesses," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1307-1314, December.
    43. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    44. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    45. Linda Edelman & Helena Yli–Renko, 2010. "The Impact of Environment and Entrepreneurial Perceptions on Venture-Creation Efforts: Bridging the Discovery and Creation Views of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(5), pages 833-856, September.
    46. Domingo Ribeiro-Soriano, 2017. "Small business and entrepreneurship: their role in economic and social development," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(1-2), pages 1-3, January.
    47. Siri Terjesen & László Szerb, 2008. "Dice thrown from the beginning? An empirical investigation of determinants of firm level growth expectations," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 153-178, December.
    48. Paul Davidson Reynolds, 2017. "When is a Firm Born? Alternative Criteria and Consequences," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(1), pages 41-56, January.
    49. Maija Renko & K. Kroeck & Amanda Bullough, 2012. "Expectancy theory and nascent entrepreneurship," Small Business Economics, Springer, vol. 39(3), pages 667-684, October.
    50. László Szerb & Zsófia Vörös, 2021. "The changing form of overconfidence and its effect on growth expectations at the early stages of startups," Small Business Economics, Springer, vol. 57(1), pages 151-165, June.
    51. repec:prg:jnlpep:v:2016:y:2016:i:1:id:534:p:1-19 is not listed on IDEAS
    52. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    53. Rosenbusch, Nina & Brinckmann, Jan & Bausch, Andreas, 2011. "Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs," Journal of Business Venturing, Elsevier, vol. 26(4), pages 441-457, July.
    54. Paul Davidson Reynolds, 2017. "Erratum to: When is a Firm Born? Alternative Criteria and Consequences," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(1), pages 81-83, January.
    55. Joan-Lluís Capelleras & Ignacio Contin-Pilart & Martin Larraza-Kintana & Victor Martin-Sanchez, 2019. "Entrepreneurs’ human capital and growth aspirations: the moderating role of regional entrepreneurial culture," Small Business Economics, Springer, vol. 52(1), pages 3-25, January.
    56. Elizabeth J. Gatewood & Kelly G. Shaver & Joshua B. Powers & William B. Gartner, 2002. "Entrepreneurial Expectancy, Task Effort, and Performance," Entrepreneurship Theory and Practice, , vol. 27(2), pages 187-206, April.
    57. Martin Lukeš & Jan Zouhar, 2016. "The Causes of Early-Stage Entrepreneurial Discontinuance," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(1), pages 19-36.
    58. Cliff, Jennifer E., 1998. "Does one size fit all? exploring the relationship between attitudes towards growth, gender, and business size," Journal of Business Venturing, Elsevier, vol. 13(6), pages 523-542, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laurent Vilanova & Ivana Vitanova, 2020. "Unwrapping opportunity confidence: how do different types of feasibility beliefs affect venture emergence?," Small Business Economics, Springer, vol. 55(1), pages 215-236, June.
    2. Shahid, Pirzada Syed Rizwan, 2023. "Founder's Human Capital and the Entrepreneurial Process Duration," OSF Preprints yf6mg, Center for Open Science.
    3. Lucio Fuentelsaz & Consuelo González & Juan P. Maícas, 2021. "High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions," Small Business Economics, Springer, vol. 57(1), pages 473-492, June.
    4. Susan Müller & Alyssa Lara Kirst & Heiko Bergmann & Barbara Bird, 2023. "Entrepreneurs’ actions and venture success: a structured literature review and suggestions for future research," Small Business Economics, Springer, vol. 60(1), pages 199-226, January.
    5. Han, Wei & Luo, Yong (Eddie) & Huang, Qihai & Yang, Jun, 2022. "The role of opportunity feasibility beliefs and bribery on resource acquisition speed and new venture emergence," Journal of Business Research, Elsevier, vol. 149(C), pages 518-527.
    6. Alona Martiarena & Jonathan Levie & Susan Marlow & Mark Hart & Karen Bonner, 2023. "A ‘deviant men’ theory of business expectations in nascent entrepreneurs," Small Business Economics, Springer, vol. 61(3), pages 909-930, October.
    7. Alexander McKelvie & Anna Brattström & Karl Wennberg, 2017. "How young firms achieve growth: reconciling the roles of growth motivation and innovative activities," Small Business Economics, Springer, vol. 49(2), pages 273-293, August.
    8. Jolanda Hessels & Marco Gelderen & Roy Thurik, 2008. "Entrepreneurial aspirations, motivations, and their drivers," Small Business Economics, Springer, vol. 31(3), pages 323-339, October.
    9. Douglas, Evan J., 2013. "Reconstructing entrepreneurial intentions to identify predisposition for growth," Journal of Business Venturing, Elsevier, vol. 28(5), pages 633-651.
    10. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
    11. Ozcam, Ahmet & Karadeniz, Esra, 2012. "The Determinants of the Growth Expectations of Turkish Entrepreneurs in the Way up the Entrepreneural Ladder Using Ordinal Logistic Model (OLM)," MPRA Paper 49908, University Library of Munich, Germany.
    12. Raquel Puente & María Antonia Cervilla & Carlos Giovanni González & Nunzia Auletta, 2017. "Determinants of the growth aspiration: a quantitative study of Venezuelan entrepreneurs," Small Business Economics, Springer, vol. 48(3), pages 699-726, March.
    13. Cervelló-Royo, Roberto & Moya-Clemente, Ismael & Perelló-Marin, M. Rosario & Ribes-Giner, Gabriela, 2022. "A configurational approach to a country’s entrepreneurship level: Innovation, financial and development factors," Journal of Business Research, Elsevier, vol. 140(C), pages 394-402.
    14. Sebastián Uriarte & Jorge Espinoza-Benavides & Domingo Ribeiro-Soriano, 2023. "Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 941-973, June.
    15. Raquel Puente Castro & Jose U. Mora Mora & Fernando Pereira Laverde, 2020. "High-Growth Aspirations of Entrepreneurs in Latin America: Do Alliances Matter?," Sustainability, MDPI, vol. 12(7), pages 1-22, April.
    16. Mircea Epure & Victor Martin-Sanchez & Sebastian Aparicio & David Urbano, 2023. "Human capital, institutions, and ambitious entrepreneurship during good times and two crises," Economics Working Papers 1875, Department of Economics and Business, Universitat Pompeu Fabra.
    17. Boudreaux, Christopher, 2019. "Do private enterprises outperform state enterprises in an emerging market? The importance of institutional context in entrepreneurship," MPRA Paper 93039, University Library of Munich, Germany.
    18. Saul Estrin & Tomasz Mickiewicz & Anna Rebmann, 2017. "Prospect theory and the effects of bankruptcy laws on entrepreneurial aspirations," Small Business Economics, Springer, vol. 48(4), pages 977-997, April.
    19. Chong Kyoon Lee & Griffin W. Cottle & Sharon A. Simmons & Johan Wiklund, 2021. "Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship," Small Business Economics, Springer, vol. 57(1), pages 531-553, June.
    20. Christopher Boudreaux, 2019. "When does privatization spur entrepreneurial performance? The moderating effect of institutional quality in an emerging market," Papers 1901.03356, arXiv.org.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00989-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.