The impact of founder’s regulatory focus on the process of firm birth and firm abandonment

Item Type Journal paper
Abstract

Purpose: The purpose of this paper is to show how self-regulation influences the relationship between nascent entrepreneurial exploitation activities, firm birth and firm abandonment. Design/methodology/approach: This study draws from a unique longitudinal dataset of 181 nascent entrepreneurs from Switzerland who have been interviewed by phone in 2015 and 2016. It uses a moderated binary logistic regression to test the hypotheses. Findings: This study provides evidence that discrepancies in promotion orientation can explain different ways exploitation can lead to an increased likelihood of firm birth and a decreased likelihood of firm abandonment while respectively increasing persistence. Findings suggest that this is attributed to the regulatory fit between a promotion orientation and exploitation activities. Research limitations/implications: For scholars, our findings provide insights into reasons for entrepreneurial persistence, as well as how firm birth can be achieved with different levels of exploitation activities. Practical implications: This study provides entrepreneurs with information on how to increase their persistence as well as the likelihood of firm birth while considering their regulatory focus. Originality/value: Based on regulatory focus theory, this paper highlights different paths to firm birth with varying quantity of exploitation activities. We contribute to a greater understanding of firm emergence by accounting for the impact of regulatory foci.

Authors Koumbarakis, Paris; Bergmann, Heiko & Volery, Thierry
Journal or Publication Title Management Decision
Language English
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area Global Center for Entrepreneurship + Innovation
Refereed Yes
Date 9 October 2020
Publisher Emerald
Volume ahead-of-print
ISSN 0025-1747
Publisher DOI 10.1108/MD-10-2019-1415
Official URL https://www.emerald.com/insight/content/doi/10.110...
Depositing User Prof. Dr. Heiko Bergmann
Date Deposited 04 Jan 2021 11:02
Last Modified 04 Jan 2021 11:02
URI: https://www.alexandria.unisg.ch/publications/261892

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Citation

Koumbarakis, Paris; Bergmann, Heiko & Volery, Thierry (2020) The impact of founder’s regulatory focus on the process of firm birth and firm abandonment. Management Decision, ahead-of-print ISSN 0025-1747

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https://www.alexandria.unisg.ch/id/eprint/261892
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