Member Experience, Use of External Assistance and Evaluation of Business Ideas

By Foo, Maw-Der | Journal of Small Business Management, January 2010 | Go to article overview

Member Experience, Use of External Assistance and Evaluation of Business Ideas


Foo, Maw-Der, Journal of Small Business Management


How do members' experience and external interactions shape evaluation of the. team's business idea? With a sample of 74 teams that participated in a business idea competition, we showed that experience as defined by size, mean work experience, and assistance from individuals with business founding experience related positively to the teams' business idea evaluations. The benefits of external founders are more pronounced for smaller than for larger teams. Hiving a. founder in the team did not relate to idea evaluation but interaction effects showed smaller sized teams bad worse evaluations if they did not have a founder in the team.

**********

"Take up one idea. Make that one idea your life--think of it, dream of it, live on that idea. Let the brain, muscles, nerves, every part of your body, be full of that idea, and just leave every other idea alone. This is the way to success." Swami Vivekananda (1863-1902)

The entrepreneurship literature probably agrees with the quote just given. Entrepreneurs can have multiple business ideas but at any one time, the entrepreneur may only have the time and energy to develop a limited number of ideas into viable businesses. Ideas are by themselves cheap and how favorably the ideas are evaluated determine whether they are commercially exploited. Especially crucial for nascent ventures are how people outside the team evaluate the ventures' ideas. In nascent ventures, which are ventures at the early stages prior to firm formation, entrepreneurs often lack resources and rely on external sources to provide these resources (Stevenson and Cruikshank 1997). For example, the entrepreneurs in Shane's (2000) case studies needed to secure licenses for the three-dimensional printing technology before they could implement the opportunities discovered. Similarly, Birley's (1986) entrepreneurs sought support from external resources in the form of equipment, space, and money. But for these external persons to provide resources, they may need to be convinced that the business idea is commercially viable.

But what leads to the business idea in the first place? Information from the entrepreneur's personal experiences and work contacts leads to unique information corridors enabling some people to recognize business opportunities (Shane and Venkatarman 2000). The business idea first generated can be crude and require refinement before it can be presented to external parties. And although one person may recognize the business idea, given the complexity of the marketplace, often a team collectively develops the idea into a marketable product or service. In fact, many high-growth ventures are started by several founders rather than by a single individual (Roberts 1991)- Teams can access resources provided by team members and from member interactions with others outside of the team (Ancona and Caldwell 1998).

As information forms the cornerstone in the pursuit of entrepreneurial ideas (Shane 2000; Shane and Venkatarman 2000), we investigated how (1) information embedded in the experiences of team members and (2) the extent members use assistance from social contacts influence how people external to the team evaluate the teams' business ideas. The findings suggest that the experiences each member brings to the team (in terms of team size), and/or mean work experiences predict business idea evaluation. The findings also suggest founding experience matters but how this experience matters depends on team size. Small teams coupled with access to external assistance associated positively to business idea evaluation. The sample for this study is teams participating in a business plan competition. Such a sample examines teams at the early venturing stages, where external evaluations can be particularly critical; teams receiving positive evaluations may attract external resources, such as funding and assistance, that can help the team move to the next stage of venture development. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Member Experience, Use of External Assistance and Evaluation of Business Ideas
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    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.