Author
Işıklar, Rukiye Işıl Yavuz, Dutta, D. K., Soytaş, Mehmet Ali
Publication Date
2018
Publication Place
-
Academy of Management
Type
Document
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
2-s2.0-85054556175
Record ID
17ee1d02-7ab5-46a2-a3d1-2925ff977e1f
Library Location
Economics
Date
2018
Notes
The Ewing Marion Kauffman Foundation
Sample Text
This study examines how the relationship between past performance and new product introductions is influenced by entrepreneurial optimism. Based on the behavioral theory of the firm, we test how past performance suggest low performance relative to aspirations helps new ventures initiate strategic change, such as new product introductions. In contrast, high performance relative to aspirations tends to reinforce status quo. Moreover, we argue that when past performance falls below aspirations, new ventures founded by optimistic entrepreneurs are more likely to introduce new products than those with less optimistic entrepreneurs. We test our hypotheses using data from the Kauffman Firm Survey on 333 newly founded high technology new ventures in the U.S. Our results strongly support our interaction hypothesis. After controlling for the impact of several entrepreneurial and firm-level characteristics, we show that the rate of new product introductions is highest in ventures founded by optimistic entrepreneurs where the ventures have shown low prior performance relative to their aspirations.
DOI
10.5465/AMBPP.2018.44
