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21-12-2016 | S.S.: International Markets

Degree of innovation and the entrepreneurs’ intention to create value: a comparative study of experienced and novice entrepreneurs

Authors: Amir Emami, Dimo Dimov

Published in: Eurasian Business Review | Issue 2/2017

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Abstract

A vital aspect of entrepreneurial action is the translation of entrepreneur’s opportunity into new value creation. This paper examines the moderating roles of the founder’s experience and innovation degree on the relationship between opportunity confidence and new value creation intention (NVCI) at the pre-founding stage of a business. For this purpose, it uses survey data from 157 prospective entrepreneurs in the ICT industry from university incubators in Iran. Using SEM, we find that experience, alone, does not moderate the relationship between opportunity confidence and NVCI. However, if entrepreneurs have required opportunity confidence, then medium and high-level innovation can increase the likelihood of acting on the opportunity for novice and experienced entrepreneurs, respectively. For novice entrepreneurs, the innovation variance from low to medium moderates the relationship between opportunity confidence and intent. In fact, this relationship is strengthened by the medium novelty level. Whereas, for experienced entrepreneurs, the variance from medium to high, moderates the relationship that is strengthened by the high novelty level.

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Footnotes
1
Please contact authors to obtain a copy of the research instrument.
 
2
For example, Rogers (2003) had previously argued that the complexity of technology (the degree to which an innovation is perceived as relatively difficult to understand and use” [p. 15]) is negatively associated with the rate of adoption. As such, an extreme complexity of innovation is a significant obstacle to its adoption. However, the level of analysis in Roger’s framework and many later successors were technology while in this research it was largely the product.
 
3
Previous studies have focused on the individual’s intention to become a self-employed or owner-manager (cf. Fitzsimmons and Douglas 2011; Linan and Chen 2009; Thompson 2009) or, on the study of intention in the formation and start-up of a new firm (cf. Frank et al. 2007; Kautonen et al. 2013) or in the domain of growth, on internationalization or the intention to exit (see Liñán and Fayolle 2015).
 
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Metadata
Title
Degree of innovation and the entrepreneurs’ intention to create value: a comparative study of experienced and novice entrepreneurs
Authors
Amir Emami
Dimo Dimov
Publication date
21-12-2016
Publisher
Springer International Publishing
Published in
Eurasian Business Review / Issue 2/2017
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI
https://doi.org/10.1007/s40821-016-0068-y

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