Knowledge that Transforms

Abstract Research Summary Entrepreneurship researchers commonly use survey‐based research designs. However, surveying entrepreneurs poses unique challenges. A principal concern for survey‐based research is nonresponse bias, which occurs when survey respondents systematically differ from those who were sampled but did not participate in the study. To address this concern, we conducted a systematic review of the literature to determine what practices are currently being used to address nonresponse bias (142 articles, 180 surveying efforts) and conducted multiple studies to determine the extent to which nonresponse bias can affect statistical results. Based on these efforts, we present a series of techniques and a checklist that entrepreneurship scholars and reviewers and editors can consider to mitigate the risk of nonresponse bias prior to, and following, their data collection efforts. Managerial Summary In an average survey of entrepreneurs, approximately 40% of the people contacted will respond. This raises an important question: Can we make conclusions about the entrepreneurs who did not respond? Answering this question requires one to consider nonresponse bias (i.e., if respondents differ from nonrespondents). We conducted a systematic review of survey‐based studies in entrepreneurship and conducted three field studies. Our results show that nonresponse bias can manifest in different ways across studies, but it is rarely discussed in the literature. We also show that response rates are poor proxies of nonresponse bias. Based on these efforts, we present several techniques for scholars, reviewers, and editors to consider in the hopes of mitigating the risk of nonresponse bias in their studies.

Abstract Research Summary We study how environmental enablers, specifically disruptive ecological shifts, and subsequent regulatory activity, led to the formation of a local ecopreneur ecosystem in Kenya and how this process was facilitated by the brokerage role of an international NGO. Drawing from the entrepreneurial ecosystem literature, and using a strategic network perspective to conceptually map salient interorganizational ties, multilevel engagement, and resource generation, we utilize qualitative grounded theory analysis to argue that environmental changes have catalyzed the regulatory change towards the formation of an entrepreneurial ecosystem for low‐resourced ecopreneurs. This process is facilitated through ecosystem brokering through an anchor tenant that accelerates knowledge, resources, and viable exchanges to advance venture sustainability. Managerial Summary Our study unpacks how regulatory responses to environmental shifts enable the systemic development of venture creation. We explore how environmental changes, first in the natural environment, and subsequently, the regulatory environment—influence ecosystem emergence for entrepreneurial activity. We present three dimensions of regulatory enablement that shift conditions to favor venture building. Problem framing by the regulatory sector signals potential opportunities for entrepreneurs for value creation. Prioritization of this problem, emphasized in the government's regulation, sets new agendas and implies that new rules and resources would be allocated towards such opportunities. New rules also reconfigure boundaries to invite new actors and interactions into the discourse on environmental preservation in Kenya.

Abstract Research Summary Although entrepreneurship training programs are designed to help necessity entrepreneurs acquire skills and capabilities to take entrepreneurial action, participants in these programs often fail to do so. In partnership with a local government agency, we conducted a randomized field experiment involving 165 entrepreneurs in rural Tanzania where in addition to providing technical‐skills training, approximately half of the participants also received “growth mindset” psychological training. Those who received the growth mindset training displayed more entrepreneurial action in their business than those in the control group. Importantly, higher levels of entrepreneurial self‐efficacy mediated the positive impact on entrepreneurial action displayed by participants who received the growth mindset training. We discuss how complementing traditional technical‐based training with growth mindset training can improve the efficacy of entrepreneurship training programs. Managerial Summary Entrepreneurship training programs often fall short in translating knowledge into action. To address this issue, we conducted an experiment with 165 entrepreneurs in rural Tanzania. All participants received technical‐skills training, but half were also exposed to “growth mindset” training. Those who received the growth mindset training displayed greater initiative in business growth. The newfound confidence and grit they gained empowered them to apply learned principles effectively, ultimately enhancing the effectiveness of entrepreneurship training programs.

Abstract Research Summary Although pre‐entry startup experience is widely recognized as a driver of innovation in new ventures, a core feature of new venture teams is that their membership is fluid. In this article, we theorize and test whether venture team membership fluidity incrementally explains new venture innovation. We also investigate and demonstrate that team fluidity conditions the impact of pre‐entry startup experience present at founding. Testing our hypotheses with a cohort of 440 new ventures tracked for 8 years, we find support for the model across a wide range of specifications. Our study advances current understanding of the relationship between pre‐entry experience and new venture innovation, as well as novel insights into the central but often overlooked role of team fluidity. Managerial Summary New ventures rely on innovations to establish a market presence and compete against established firms. Even though team members are an essential source of inspiration, ideas, and resources to foster innovation, teams often change substantially as the venture evolves. We ask the question—does modifying the make‐up of the team make it more likely that the venture can innovate? We contend that such change significantly shapes the cognitive and interpersonal processes by which team members contribute to innovations. Our results suggest that new ventures undergoing member change can boost innovation in three ways: adding new members to the team with relevant experiences, taking advantage of opportunities to pause and reflect upon team processes in the wake of change, and mitigating the disruptive effects of change.

Abstract Research Summary This article studies fintech targeted to the base of the pyramid and its role in encouraging savings for microenterprises. We argue that the impact of fintech adoption on savings for microenterprises by the poor and by women is moderated by their access to banks—specifically, that fintech is more impactful with bank accounts, and this complementarity between fintech and banks is amplified for poor women. We develop hypotheses in the context of mobile money, a popular fintech across the developing world. Our arguments are supported by a sample of 81,345 individuals across 74 low‐ and middle‐income countries. Overall, the paper suggests that, although fintech can be a promising tool for the poor, it is equally important to improve inclusivity in formal banking institutions. Managerial Summary We offer an alternative to the popular narrative that fintech replaces the need for formal banks. In an analysis of 74 low‐ and middle‐income countries, we find that fintech is more useful in encouraging marginalized individuals to save for microenterprises when it is complemented by banks. Our finding of complementarity between fintech and banks, especially for poor women, suggests the need to rethink the notion that fintech is a substitute for banks. We suggest caution in drawing definitive conclusions about the unconditional positive impact of fintech. We recommend that policymakers continue driving financial inclusion with formal banking. Strategic entrepreneurs seeking to tackle grand societal challenges can utilize digital technology to capitalize on the strengths of established institutions.

Abstract Research Summary There is growing consensus that exogenous environmental changes can affect entrepreneurship. The external enabler framework, which provides the structures and terminology to analyze these enabling effects, has typically focused on new venture creation. In an attempt to extend the external enabler framework to corporate entrepreneurship and innovation, our longitudinal multiple‐case study explores how environmental changes enable entrepreneurial initiatives in existing organizations. Our findings contribute to the external enabler framework, corporate entrepreneurship, and innovation literature by identifying new conceptual tools to understand the enabling effect of environmental change for the emergence, novelty, and persistence of entrepreneurial initiatives in existing organizations. Managerial Summary We studied how the Covid‐19 pandemic enabled the initiation and continuation of entrepreneurial activities. Our study of eight small US‐based news companies shows that some entrepreneurial initiatives emerged as these organizations redirected their course of action toward new initiatives enabled by the changes in the external environment. Notably, the entrepreneurial initiatives that were new‐to‐the‐industry originated from ideas that were already available in some form within the organization but were not in use until the pandemic gave them a second life. Furthermore, the continuation of these initiatives depended on the persistence of the changes in the environment and on the low maintenance requirements of these initiatives in terms of time, effort, and resources.