Does prior experience matter? A meta-analysis of the relationship between prior experience of entrepreneurs and firm performance

Jiao, Kangle; Ling, Yan; Kellermanns, Franz W.

doi:10.1080/00472778.2021.1951280

Cited by 11 publications

(9 citation statements)

References 191 publications

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“…These entrepreneurs are also more likely to focus on low-risk opportunities, because high-risk opportunities for individuals with prior industry experience are argued to reap a lower rate of returns (Dencker and Gruber, 2015), and therefore should provide them with better chances of creating a profitable new venture in a shorter period. Moreover, with prior industry experience, these individuals are better placed to efficiently leverage the entrepreneurial process (Jiao, Ling and Kellermanns, 2021), which is then expected to positively impact both profitability and shorter duration to new venture creation.…”

Section: Industry Experience (Specific Human Capital)mentioning

confidence: 99%

Founder's Human Capital and the Entrepreneurial Process Duration

Shahid¹

2023

Preprint

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This thesis presents three quantitative empirical studies, utilising two US cohorts from the harmonised Panel Study of Entrepreneurial Dynamics (PSED), to advance our understanding of the relationship between nascent entrepreneurs’ human capital and duration to different entrepreneurial outcomes. Each chapter provides a distinct perspective across three dimensions: (1) human capital, age and sector impact duration to a profitable outcome, (2) the association of human capital and age with the founder’s exit; and finally, (3) human capital impact on the duration to a profitable outcome with a different spatial scope of sales. Following the introductory chapter, in chapter 2, the human capital perspective is used to investigate how the level of human capital and the founder’s age influence the likelihood of profitable venture creation in a shorter duration. This chapter extends research in nascent entrepreneurship that hitherto has largely overlooked the duration perspective to an entrepreneurial process outcome. This chapter stresses that hi-tech start-up particularly benefits from the nascent entrepreneur’s higher educational attainment in terms of shorter duration until the profitable outcome, and find that age has a non-linear relationship with the speed of the profitable venture outcome. Chapter 3 examines how a founder’s human capital factors and age influence the likelihood of a founder’s exit, and duration to an exit, from the entrepreneurial process. This chapter also extends its focus to human capital interactions to establish which combinations are more likely to reduce an earlier prospect of a founder’s disengagement from the entrepreneurial process. The chapter, also adds to the literature on how founders, with higher human capital, learn quickly and make intelligent choices to disengage without incurring heavy personal and societal costs. A non-linear relationship is found between the founder’s age and the duration to disengagement. Finally, chapter 4, seeks to understand how a founder’s human capital affects the profitable outcome, and the duration to such an outcome, at the different spatial scopes of sales. This paper takes a new approach and adds to the international entrepreneurship literature by clarifying how the founder’s human capital factors impact rapid (born global) and incremental (international new ventures) spatial scope strategies differently. Among the general human capital, a university degree is valuable across all types of spatial scopes of sales in terms of profitable venture creation in a shorter duration. However, start-up experience (specific human capital) only tends to be vital for international scope in terms of the shorter duration to create a profitable new venture. Altogether, the thesis advances our understanding of the important role of the founder’s human capital dimensions in nascent entrepreneurship, in the duration either to a profitable venture creation or to exit, which is underdeveloped in the existing literature. The thesis paves the way for future, both theoretical and empirical research, into nascent entrepreneurship process duration by analysing the direct effects of various aspects of social capital.

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Section: Industry Experience (Specific Human Capital)mentioning

confidence: 99%

Founder's Human Capital and the Entrepreneurial Process Duration

Shahid¹

2023

Preprint

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“…By contrast, generic experience provides entrepreneurs with general knowledge which differs from the knowledge and skills required by them (Colombo and Grilli, 2005). Therefore, the relationship between founders' prior experience and firm performance is stronger for specific experiences (industry experience and start-up experience) than generic experiences (Jiao et al. , 2021).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…A large body of literature on entrepreneurship argues that entrepreneurs' previous experience generally plays an important role in predicting the outcomes of start-ups and has a positive effect on entrepreneurial performance (e.g. Failla, 2015;Jiao et al, 2021). The human capital perspective suggests that both formal education and work experience are primary sources of competence for founders (Agarwal et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

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The secrets to successful entrepreneurship: how occupational experience shapes the creation and performance of start-ups

Maas²,

Zhang³

et al. 2022

IJEBR

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PurposePrevious experience is a critical factor affecting entrepreneurial activities; however, it has not been fully studied in the existing literature. This study attempts to comprehensively reveal the routes and mechanisms of occupational experience that affect entrepreneurial activities and assess the entrepreneurial potential of different occupational practitioners.Design/methodology/approachBy matching occupational characteristics with entrepreneurs' competence, this study proposes ten hypotheses about how occupational experience affects entrepreneurial entry and performance. This empirical study is based on the Occupational Information Network database and Chinese survey data. Factor and regression analyses were used in the empirical research.FindingsThis study verifies that different occupational practitioners have varied entrepreneurial potential. Occupational experience, including occupational uncertainty, market contact and social capital, gained from previous experience significantly affects entrepreneurial entry. Meanwhile, occupational characteristics, including management experience, marketing experience, social capital, financial capital, risk-taking ability and creativity, accumulated from previous experience, have a significant impact on entrepreneurial performance.Originality/valueThis study is a pioneering attempt to reveal the relationship between occupational experience and entrepreneurial activities. The transmission mechanism of previous experiences affecting entrepreneurial activities is comprehensively revealed by relaxing the assumption of a representative occupation. These findings provide a theoretical foundation for empirical evidence and have important practical value.

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“…The attention of policymakers and the scholarly community has recently shifted towards underexplored entrepreneurship outcomes, such as satisfaction with the job, life or mental and physical well-being (Williamson et al, 2021;Gish et al, 2022;Huo et al, 2022;Turnalar-Çetinkaya and _ Islamo glu, 2022;Stephan et al, 2022), as well as personal earnings and income of individuals engaged in entrepreneurship (Dvoulet y et al, 2021;H arsman and Mattsson, 2021;Jiao et al, 2021). The need to better understand these entrepreneurs' aspects is also amplified within international organizations through Sustainable Development Goals (SDGs, United Nations, n.d.) or World Health Organization's (2021Organization's ( , 2022 proclamations and guidelines, highlighting the nexus among individual job satisfaction, well-being and performance.…”

Section: Introductionmentioning

confidence: 99%

From unemployment to self-employment: what does it mean for an individual's satisfaction and economic self-sufficiency?

Dvouletý

2023

JEPP

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PurposeThis research extends the knowledge on the less-frequently explored outcomes of entrepreneurial endeavour. The study provides unique insights into the overall satisfaction of entrepreneurs with their life, job and financial situation, as well as perceived economic self-sufficiency and income. The obtained findings represent a specific group of Czech self-employed individuals who started their businesses while unemployed, with the help of public financial assistance.Design/methodology/approachThe presented contribution is based on a primary survey among those individuals (N = 128), conducted in 2022 and triangulated by insights from informal interviews with the respondents and earlier empirical evidence.FindingsThe main findings document that most of the surveyed entrepreneurs are overall satisfied with their lives and jobs, their incomes are above the minimum wage and, despite the challenges faced, they mainly benefit from autonomy associated with this career choice. The multivariate ordered logistic regression results highlight the significance of several previously identified variables, such as gender, health status, formal education, entrepreneurial self-efficacy and family situation, that influence the studied outcomes and provide opportunities and challenges for ongoing research.Originality/valueThe conducted study acknowledges the need to consider the whole picture of entrepreneurship success. Therefore, it provided insights into the monetary and non-monetary outcomes of the specific type of entrepreneurship.

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Does prior experience matter? A meta-analysis of the relationship between prior experience of entrepreneurs and firm performance

Cited by 11 publications

References 191 publications

Founder's Human Capital and the Entrepreneurial Process Duration

Founder's Human Capital and the Entrepreneurial Process Duration

The secrets to successful entrepreneurship: how occupational experience shapes the creation and performance of start-ups

From unemployment to self-employment: what does it mean for an individual's satisfaction and economic self-sufficiency?

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