Academic journal article Journal of Business and Entrepreneurship

THE EFFECTS OF MOTIVATION OVER ENTREPRENEURIAL PERFORMANCE: THE CASE FOR MEXICAN STARTUPS V

Academic journal article Journal of Business and Entrepreneurship

THE EFFECTS OF MOTIVATION OVER ENTREPRENEURIAL PERFORMANCE: THE CASE FOR MEXICAN STARTUPS V

Article excerpt

INTRODUCTION

The current academic perspective understands entrepreneurship as an evolutionary process where participants decide to integrate into business teams and collectively make continuous adjustments to their products, adapting them to their customer´s needs (Kamm, Shuman, Seeger, & Nurick, 1990; Garud & Giuliani, 2013).

This entrepreneurship vision is brought together by a common concept called the Lean Startup Process (LSP), defined as an approach to entrepreneurial and innovative activities that emphasizes placing resources into the creation ofcustomer value, viewing all other activity as waste until a fit is found between the product and the intended market, concept also known as Product-Market-Fit (York & Danes, 2015).

Provided that entrepreneurial activity can be considered as an intentionally planned behavior (Ajzen, 1991; Shapero & Sokol, 1982), and could provide founders with an expectation of some kind of reward (Vroom, 1964). some researchers recognized the importance of the link between ideas and action (Bird, 1989; Krueger & Carsrud, 1993). Further, authors like Krueger, Reilly & Carsrud (2000) emphasize the fact that the entrepreneurial choice is better predicted by the intention towards such conduct.

There are several, mostly cross-sectional studies, analyzing the effects of motivation over the individual´s decision to create a new venture and its subsequent performance. To attain further understanding of factors that contribute to early startup success, the present quest, is based on arguments by Gartner (1985) pointing out the large differences that exist among entrepreneurs, almost ruling out the possibility of pinpointing individual´s characteristics as predictors of venture performance. In this perspective, entrepreneurship is here considered as an evolutive process and teams become the subjects of our attention.

Firm survival is an indicator of business success (Bruderl & Schussler, 1990), in that sense endurance expresses the ability of organizations to react to rapid environmental conditions and adapt. This paper examines the role played by motivation in the initial phases of startup creation, period in which they face more restrictions and as a result become more vulnerable.

Moreover, as it has also been pointed out, entrepreneurial inquiry has taken distance from the actual founders (Meyer, 2011). This paper advances on the contrary path by increasing researcher´s involvement and using first hand data collected from a sample of 29 teams that participated in a full immersion Lean Startup Training Workshop in Mexico 2015, where the authors participated as mentors and observers.

With the aid of an exact logistic regression, three hypotheses would be validated in our study, model. The first one being: Push-Pull motivation categories modify the probabilities of success in the initial startup phases of teams in the sample. The second hypothesis is: In conjunction with push motivation, the probability of attaining a Minimum Viable Product (MVP) in the pre-startup phase is positively affected by contextual variables, mostly considered to be attributes of human capital, such as: time deployed in the they relate to diversity of perspective and shared knowledge, variables such as the team´s gender composition and the possibility of increasing discussion within a larger group (team size), have a positive influence over the possibility of attaining the above said success.

As a preview of our findings, evidence revealed that it is likely that the presence of necessity-based entrepreneurship in a team increases their probability of developing a MVP. It was also found that motivation, jointly with other related variables such as time deployed in the process and previous experience in entrepreneurship contributed to the explanation of improved team´s performance in the process of startup conformation. The latter indicates that besides motivation, there are additional factors elucidating success in the pre-startup phase. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.