Does generation matter to innovation development? A new look at entrepreneurial businesses from the perspective of resource-based view (RBV)

Abstract

PurposeResearch shows that innovation is imperative for business competitiveness and that entrepreneurs are stimulators of innovation. This is particularly true for younger entrepreneurs, who are recognized as having technological savvy, high dependency on the web, low fear of change and high zeal for challenges. However, not all businesses headed by younger entrepreneurs innovate, and research on younger entrepreneurs' innovation is lacking. This study assessed the main drivers of innovation in a sample of young Canadian entrepreneurs leading businesses in the initiation phase.Design/methodology/approachA sample of young Canadian entrepreneurs leading businesses in the initiation phase has been employed. This study is based on younger entrepreneurs and draws on the definition of generations Y and Z (Taylor and Keeter, 2010). It examines the initial stage of a business, up to 3 years. The sample includes 100 adults (65% female), whose ages ranged from 18 to 34 years. The drivers to innovate included external support (e.g. mentoring, funds, accelerators) and internal factors, including psychological attributes (i.e. risk-taking) and entrepreneurial motivations. Regression and structural equation modeling analyses have been conducted.FindingsThe findings revealed that entrepreneurial motivations for achieving self-fulfillment and contributing to the world, which are prevalent among younger generations, fostered innovation both directly and indirectly through the mediating effect of external support and risk-taking. External support fostered innovation not directly but through the mediating effect of risk-taking; in contrast, internal factors directly propelled innovation. This finding demonstrates the significance younger generations attribute to internal factors over external factors in the quest for innovation.Practical implicationsThis study can be an intriguing starting point for future studies to examine in more depth the intertwined role of external and internal factors in accelerating innovation among younger entrepreneurs. Studies could examine various psychological attributes and professional and business capabilities (Zahra, 2021) as well as external factors.Originality/valueOur findings add to this literature in stressing the need to strengthen risk-taking among younger entrepreneurs, which is affected by external support and produces innovation; and reinforce the relevance of the resource-based view in revealing younger entrepreneurs' avenues to develop innovation, pinpointing external support as contingent on motivation and demonstrating the role of risk-taking in the pursuit of innovation.

Business values as a strategic resource in indigenous black South African family businesses

“…The RBV theory has attracted a great deal of attention among scholars as a framework for explaining how organisations can achieve sustained competitive advantage (Kariv et al, 2022;Tàpies & Fernández-Moya, 2012). Since its inception, the RBV theory has been used to explain the link between heterogeneous resources controlled by an organisation, the mobility of these resources and the strategic advantage enjoyed by an organisation (Barney, 1991).…”

Future of digital work: Challenges for sustainable human resources management

“…This gave rise to ideas about the end of work (Rifkin, 1995), the death of professionalism (Broadbent et al, 1997), loss of control over work and life (Sennett, 1998), and the gradual transition from a labour society to a risk society (Beck, 2000). The classical concepts in the sociology of work, such as its relation to industry or employment (Halford & Strangleman, 2009), and the character of the entrepreneur, worker, or employer (Degryse, 2017), are essential factors in managing crisis and stimulating economies (Kariv, Cisneros, Kashy-Rosenbaum, & Krueger, 2022) and now command new definitions.…”

“…Key themes include virtually managing and motivating performance while integrating such feats as talent management and employee engagement (Santana & Cobo, 2020). This is especially important for younger people who show a flair for entrepreneurship (Kariv, Cisneros, Kashy-Rosenbaum, & Krueger, 2022). Consequently, the future of work depends on employees' and organisations' flexibility and agility to new technological developments (Badnar & Welch, 2019).…”