Modelling Owner Experience: Linking Theory and Practice

Abstract

ABSTRACT. This paper reports on the findings of research that seeks to construct and test an owner experience index. By doing so, the relationships among stage of firm, years of management experience (stock) and breadth (diversity) of experience are also examined. The latent structure of experience is best described by a six-factor solution, the dimensions of which include: small firm, operational, fiscal, marketing, technology, and innovation management. Contrary to previous research, this study suggests that, with the exception of technology-related experience, all dimensions of experience are stable across stage of firm. At the variable level, adopting new technology, new product development, on-line communications, promotions and advertising, and software skills have the highest discrimination power between business owners who intend to grow the firm and those who do not. The implications for future research are considered.SOMMAIRE. Cet article présente les résultats d'une recherche visant à construire et tester un index d'expéri-ence des propriétaires. Ce faisant, on examine également les relations entre le stade de l'entreprise, les années d'expérience en gestion (réserve) et l'étendue de l'expérience (diversité). La meilleure description de la structure latente de l'expérience appartient à une solution à six facteurs illustrant les dimensions suivantes : petite entreprise, et aussi gestion opérationnelle, fiscale, technologique, de commercialisation et d'innovation. Contrairement à la recherche antérieure, celle-ci suggère que, à l'exception de l'expérience liée à la technologie, toutes les autres dimensions sont stables pour le stade où se trouve l'entreprise. Au niveau de la variable, l'adoption d'une nouvelle technologie, le développement d'un nouveau produit, les communications en ligne, les promotions et la publicité, ainsi que les habiletés logicielles possèdent le plus fort pouvoir discriminatif entre les propriétaires d'entreprises qui veulent grandir et les autres. Pour finir, on passe en revue les implications pour la recherche à venir.Owner experience is central to firm growth and performance (Boyatzis, 1982;Chandler and Jansen, 1992;Chandler and Hanks, 1994;Leitch, 1995;Freel, 1998 Freel, , 1999Aliouat et al., 1999; Baldwin, 1997;Lefebvre and Lefebvre, 2000;Julien and Ramangalahy, 2003;Van Gils and Zwart, 2004). However, researchers have noted that the literature is fragmented, reflecting little consensus about the definition, construction and appropriate methodologies to examine experience (Reuber and Fischer, 1995;Smith and Morse, 2005). Terms such as skills, abilities, expertise and competencies are used interchangeably, and "it is not clear, whether experience should be an element (indicator) of entrepreneurial competency, an antecedent of competency or an outcome (consequence) of competency" (Smith and Morse, 2005: 10). Researchers also note a wide variety of measures and little consistency in how studies operationalize experience constructs (Fischer and Reuber, 1999: 30). Business and E...

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