Entrepreneurial continuance logic

Abstract

Purpose While much has been debated about venture formation and demise, the behavioral dynamics of why entrepreneurs intend to continue and persevere post-startup have received scant attention and scrutiny. Building upon the rich tapestry of entrepreneurial cognition, the purpose of this paper is to forward entrepreneurial continuance logic as a theoretical framework to empirically investigate the antecedents, contingencies and mediators of entrepreneurial continuance. Design/methodology/approach Using observations from surveying 156 practicing entrepreneurs across the USA, UK, South Africa and India, this research offers interesting findings. Findings Results surface attitudinal tensions between the transactional attitudes of entrepreneurial climate, entrepreneurial responsiveness and calculative commitment and the relational attitudes of affective and normative continuance. Specifically, the authors find that affect is the strongest direct predictor of continuance intentions but only in the absence of entrepreneurial responsiveness behavior. Research limitations/implications Entrepreneurial responsiveness, rather than commitment, is found to be a core continuance constituent, traceable as a positive influence on continuance as a direct antecedent, a moderator and a mediator. Practical implications The research reveals that entrepreneurs willing to seize and adapt to a changing entrepreneurial landscape are more like to continue with their ventures, but not just driven by strict underpinnings of affect and norms but by a strong sense of economic rationality. Social implications Entrepreneurial continuance is an important behavioral phenomenon with substantial socio-economic consequences. Given the scant attention paid to entrepreneurial continuance – symptomatic of broader downstream effects of entrepreneurial survival and positive socio-economic spillovers, the authors embark on a systematic investigation of continuance intention as post-startup behavior. Originality/value The paper explains post-startup entrepreneurial behavior in several ways. First, while affective commitment, a relational attitude, still drives continuance intentions, calculative commitment, a transactional attitude, is a significant contender. Interestingly, the nature of contemporary entrepreneurship disregards continuance behavior based on norms. Second, entrepreneurial responsiveness needs to be cautiously examined in relationship to commitment and continuance. Entrepreneurial responsiveness, a transactional attitude, positively influences continuance; however, in the presence of a relational attitude such as affective commitment, the interplay reduces continuance intentions. Third, perceptions of entrepreneurial climate are found to trigger more opportunity-seeking behavior among entrepreneurs, which in turn increases an entrepreneur’s intention to continue.

New perspectives for dynamic capabilities in meeting needs of startups’ survival

“…And the “dynamic” term refers to companies' ability to renew skills to cope with changes in business environment (Liotino et al , 2016). An individual approach has been associated in micro-foundations of dynamic capabilities (Chaparro et al , 2021); therefore, we do not separate both individual and organizational dynamic capabilities because of their intertwined aspects explained through the feature of entrepreneurs' commitment in startups' survival (Datta et al , 2018; Alvarez Salazar, 2020).…”

“…From a research standpoint about dynamic capabilities of startups (Thiele and Fellnhofer, 2015; Chin et al , 2016; Datta et al , 2018; Caseiro and Coelho, 2019; Dong, 2019; Feng et al , 2019; Ma et al , 2020; Polo García-Ochoa et al , 2020; Steiber and Alänge, 2020; Guo et al , 2021; Teixeira et al , 2021), internal and external forces affect business in general (Cavalcante et al , 2011; Chesbrough, 2010; de Reuver et al , 2009; Johnson et al , 2008; Pucihar et al , 2019; Rub et al , 2017; Saebi, 2015; Seo and Lee, 2019; Teece, 2007; Thiele and Fellnhofer, 2015; Van Den Heuvel et al , 2020), and considering the differences in capabilities from startups to handle environmental changes, our framework combines dynamic capabilities of startups within their effects on tangible and intangible resources exchange to overcome challenges imposed from internal and external forces.…”

“…And dynamic capabilities may support a better preparation of a startup to face internal and external forces challenges under uncertainties. A good example of dynamic capabilities is knowledge acquisition capacity (Chin et al , 2016) as a powerful organizational capability to support business transformation, as it provides startup’s commitment in a continuous flow of information for a better decision-making throughout business management (Thiele and Fellnhofer, 2015; Datta et al , 2018).…”

“…Therefore, entrepreneurs' commitment logic is rooted in a rich duality of entrepreneurial cognition and action. While business affection serves New perspectives for dynamic capabilities as an emotional basis for commitment and norms creation, calculative commitment offers a more transactional perspective (Datta et al, 2018).…”

Struggles to Improve Students' Entrepreneurship Interest Through GEPPRAK Learning Model

“…Entrepreneur or entrepreneurship is an engine of economic growth, but the problem is 60% of them stopped at the age of 3 years and 35% only reaching the age of ten years (Datta et al, 2018). Research shows the importance of entrepreneur and entrepreneurship for economic growth (Moghavvemi et al, 2016).…”