When old and new selves collide: Identity conflict and entrepreneurial nostalgia among ex‐entrepreneurs

Abstract

People undergoing career transitions often bring aspects of old roles into their new work contexts, and this interface can create conflict between lingering aspects of one's work self and the newer aspects of one's work self. Yet, we know little about how this conflict between old and new selves shapes employee outcomes. We examine this issue among ex‐entrepreneurs—individuals who have transitioned from a business owner to a wage employee. Drawing from role identity theory, we develop a model of the consequences of conflict between a lingering entrepreneur identity and a current work role identity. We propose that ex‐entrepreneurs who experience higher levels of identity conflict will be more likely to experience burnout and less likely to engage in boosterism of their employer, and that these relationships are explained by lower levels of perceived professional identity growth (i.e., progressive identity). We further suggest that the negative effect of conflict on progressive identity is exacerbated by nostalgia for one's entrepreneurial past. In a three‐stage field survey of ex‐entrepreneurs and their romantic partners, we found support for these hypotheses using both partner‐rated outcomes and self‐rated outcomes. We discuss implications for the literature on entrepreneurship careers and work identity in organizations.

The identity conflict process: Appraisal theory as an integrative framework for understanding identity conflict at work.

“…Perhaps not surprisingly, research on identity conflict has demonstrated the effects it can have on workers’ conceptualizations of one or more of their identities. Identity conflict can lead to struggles adopting the behaviors of a new identity (Vakkayil, 2014), and because one feels that they may not be fulfilling expectations of a valued identity, identity conflict has been theorized to lead to a sense of inauthenticity (Horton et al, 2014; Roberts, 2005) as well as a lack of identity progress (Nielsen & Gish, 2024). Experiencing conflict between one’s identities also can reduce self-esteem and work-related self-efficacy (Barnard, 2019; Settles et al, 2009).…”

Organizational behavior and human resource management perspectives on entrepreneurship: Lessons learned and new directions

“…Entrepreneurial identity is dynamic, and as roles change, so may the nature of one's identity. In our current special issue, Nielsen and Gish (2023) examine the identity conflicts and resulting burnout that ex-entrepreneurs experience when transitioning into the corporate world, especially when they have difficulty letting go of their entrepreneurial past. Further in our special issue, Stevenson et al (2023) show that the salience of one's entrepreneurial identity can be increased through intervention, which can in turn, influence entrepreneurial action.…”

“…Finally, diminished well-being can be an early indicator of subsequent withdrawal behavior. For instance, Nielsen and Gish (2023) link identity conflict between past entrepreneurial identity and current work identity to exentrepreneur's burnout in wage employment. This research helps provide clarity to the higher voluntary turnover of ex-entrepreneurs relative to wage employees (Zhan et al, 2023), suggesting "push" and "pull" back forces into entrepreneurship.…”

“…Such research could consider the types of jobs in which ex-entrepreneurs might be most effective, such as R&D and other innovation-related roles, where they may leverage and integrate their entrepreneurial identity with their current work role identity. For instance, Nielsen and Gish (2023) show that exentrepreneurs often grapple with how to incorporate their past entrepreneur identity into their current work identity, leading to identity conflict and diminished well-being and performance, especially when they also experience nostalgia for their entrepreneurial past.…”