Entrepreneurs’ social identity and the preference of causal and effectual behaviours in start-up processes

Abstract

This paper examines how the social identity of an entrepreneur influences his or her behaviour when engaged in new venture formation. Building on the typology of entrepreneurial identities developed by Fauchart and Gruber (2011), this study examines the relationship between the social identity of the entrepreneur and subsequent entrepreneurial behaviour using a mixed method approach. Based on interviews with entrepreneurs in six start-ups within the tourism sector and on previous literature, three hypotheses were developed regarding the relationship between entrepreneurial identity and entrepreneurial behaviour (causation, effectuation).Consequently, the hypotheses were tested using a survey among a sample of entrepreneurs who registered a new firm in 2013. The study finds that the entrepreneurial identity influences whether the individual predominantly engages in effectual or causal behaviour. Hence, the study contributes by focusing on entrepreneurial identity as an important factor shaping the behaviours of entrepreneurs. In addition, we add to the understanding of entrepreneurs as a heterogeneous group. Entrepreneurs vary in terms of their identity, and this variation has consequences for their entrepreneurial behaviour. Finally, by adopting a mixed method approach, this study benefits from and contributes to the interaction of qualitative and quantitative data in entrepreneurship research.

Entrepreneurial Behavior: A Reconceptualization and Extension Based on Identity Theory

“…As discussed, in order to shed light on how the social identity of founders shapes their entrepreneurial behaviors, we draw on work by Fauchart and Gruber (), who applied social identity theory to investigate the heterogeneity of founders’ social identities, and examine how such differences manifest themselves in new firm creation. Their typology of founder social identities seems to offer a particularly promising point of departure for research on entrepreneurial behavior, as also evidenced by recent studies that have adopted this typology (e.g., Alsos et al, ; Powell & Baker, ; Sieger et al, ). Furthermore, it is interesting to note that their way of viewing the self in the social space shows key parallels to the long‐standing discourse on human nature that can be found in political philosophy: philosophers frequently distinguish among three main conceptions of human nature, i.e., the atomistic self, the communitarian self, and the cosmopolitan self (cf.…”

“…Social identity theory (Tajfel, ; Tajfel & Turner, ) originates in the literature on social psychology. Entrepreneurship research that applies the lens offered by social identity theory is still young (Alsos, Clausen, Hytti, & Solvoll, ; Fauchart & Gruber, ; Obschonka, Goethner, Silbereisen, & Cantner, ; Powell & Baker, , ; Sieger, Gruber, Fauchart, & Zellweger, ). As we will explain in greater detail later, social identity theory has the unique advantage that it allows extending the scope of research on entrepreneurial behavior to include behaviors that are focused on advancing the life of others in the social space.…”

Identity, Enactment, and Entrepreneurship Engagement in a Declining Place

“…Our contribution builds from the literature recognizing entrepreneurial identity is a social process (Alsos et al ) to show how it is also spatial. Accordingly, contextualizing identity processes leads to a richer understanding of entrepreneurship itself.…”

“…They describe how courage is forged with self‐confidence to take risks and get things done. The critical point here is that identity influences entrepreneurial behavior (Alsos et al ). However, we propose that how this behavior is perceived by others, affects how identity is attributed.…”

Conceptualising animation in rural communities: the Village SOS case

“…Identifying animatorship as a distinct concept therefore provides muchneeded analytical clarity to research findings on entrepreneurship, particularly community entrepreneurship. In this sense, animatorial identity can shape the behaviour of entrepreneurs (Alsos, Clausen, and Hytti 2016).…”