The importance of entrepreneurs’ traits in explaining start-ups’ innovativeness
DOI:
https://doi.org/10.7433/s101.2016.05Keywords:
personality traits, narcissism, Big Five, locus of control, entrepreneurship, start-ups’ innovationAbstract
Purpose of the paper: several studies prove the existence of a relationship between entrepreneurs’ personality traits and firm performances. However, few of them focus on how these personality traits can be correlated with start-ups’ innovativeness. We focus on start-ups because entrepreneurs play a crucial role in managing them: their personality strongly influences business decisions. The main personality traits we consider are narcissism, the Big Five (i.e. extraversion, agreeableness, conscientiousness, neuroticism, openness to experience), and locus of control. We aim to shed light on how these traits impact on start-ups’ innovativeness and we draw propositions that hypothesize such impact.
Methodology: being a theoretical paper, we carry out a thorough literature review and we propose some propositions.
Findings: we suggest that entrepreneurs positively influence start-ups’ innovativeness whenever they are narcissistic and have a high level of extraversion, agreeableness, conscientiousness, openness to experience, and internal locus of control. Otherwise, entrepreneurs with a high level of neuroticism and external locus of control negatively influence start-ups’ innovativeness.
Limitations: considering the theoretical nature of the paper, we have not tested our propositions yet; future research will involve testing them in an empirical business context.
Implications: this paper makes significant contributions to two different literatures: entrepreneurship literature and innovation literature.
Originality of the paper: this paper tries to fill a gap in the literature by analysing the relationship between start-ups’ innovation and entrepreneurs’ traits.
References
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GOODSTADT B.E., HJELLE L.A. (1973), “Power to the powerless: locus of control and the use of power”, Journal of Personality and Social Psychology, vol. 27, n. 2, pp. 190.
GREEN J., BINSARDI B. (2015), “Entrepreneurial intentions: a grounded theory of green-fielding”, Sinergie, vol. 33, n. 97, pp. 17-36.
GROENEWEGEN G., DE LANGEN F. (2012), “Critical Success Factors of the Survival of Start-Ups with a Radical Innovation”, Journal of Applied Economics and Business Research, vol. 2, n. 3, pp. 155-171.
HAFEEZ M.H., SHARIFF M.N.M., BIN MAD LAZIM H. (2012), “Relationship between Entrepreneurial Orientation, Firm Resources, SME Branding and Firm’s Performance: Is Innovation the Missing Link?”, American Journal of Industrial and Business Management, vol. 2, n. 04, pp. 153.
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HURTZ G.M., DONOVAN J.J. (2000), “Personality and job performance: the Big Five revisited”, Journal of Applied Psychology, vol. 85, n. 6, pp. 869.
JOHN O.P., SRIVASTAVA S. (1999), “The Big Five trait taxonomy: History, measurement, and theoretical perspectives”, Handbook of Personality: Theory and Research, n. 2, pp. 102-138.
JUDGE T.A., BONO J.E. (2000), “Five-factor model of personality and transformational leadership”, Journal of Applied Psychology, vol. 85, n. 5, pp. 751-765.
JULIAN C.C., TERJESEN S. (2006), “Entrepreneurial aspirations-a five country study”, Proceedings of the 11th Annual Conference of Asia Pacific Decision Sciences Institute, june 2006.
KICKUL J., GUNDRY L. (2002), “Prospecting for strategic advantage: the proactive entrepreneurial personality and small firm innovation”, Journal of Small Business Management, vol. 40, n. 2, pp. 85-97.
KOBASA S.C., MADDI S.R., KAHN S. (1982), “Hardiness and health: a prospective study”, Journal of Personality and Social Psychology, vol. 42, n. 1, pp. 168.
KRUEGER N.F. (1993), “The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability”, Entrepreneurship Theory and Practice, vol. 18, n. 1, pp. 5-21.
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LUBIT R. (2002), “The long-term organizational impact of destructively narcissistic managers”, The Academy of Management Executive, vol. 16, n. 1, pp. 127-138.
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PINTO J.K., PATANAKUL P. (2015), “When narcissism drives project champions: A review and research agenda”, International Journal of Project Management, vol. 33, n. 5, pp. 1180-1190.
RASKIN R., NOVACEK J. (1991), “Narcissism and the use of fantasy”, Journal of Clinical Psychology, 47, n. 4, pp. 490-499.
RAUCH A., FRESE M. (2007), “Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success”, European Journal of Work and Organizational Psychology, vol. 16, n. 4, pp. 353-385.
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ARDICHVILI A., CARDOZO R., RAY S. (2003), “A theory of entrepreneurial opportunity identification and development”, Journal of Business Venturing, vol. 18, n. 1, pp. 105-123.
BARON R.A., MARKMAN G.D. (2003), “Beyond social capital: The role of entrepreneurs’ social competence in their financial success”, Journal of Business Venturing, vol. 18, n. 1, pp. 41-60.
BAUM J.R., FRESE M., BARON R.A. (2014), The psychology of entrepreneurship, Psychology Press, New York.
BAUM J.R., LOCKE E.A. (2004), “The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth”, Journal of Applied Psychology, vol. 89, n. 4, pp. 587.
BEGLEY T.M., BOYD D.P. (1988), “Psychological characteristics associated with performance in entrepreneurial firms and smaller businesses”, Journal of Business Venturing, vol. 2, n. 1, pp. 79-93.
BOONE C., BRABANDER B., WITTELOOSTUIJN A. (1996), “Ceo Locus of Control and Small Firm Performance: an Integrative Framework and Empirical Test”, Journal of Management Studies, vol. 33, n. 5, pp. 667-700.
BRANDSTÄTTER H. (2011), “Personality aspects of entrepreneurship: A look at five meta-analyses”, Personality and Individual Differences, vol. 51, n. 3, pp. 222-230.
BRUDERL J., SCHUSSLER R. (1990), “Organizational mortality: The liabilities of newness and adolescence”, Administrative Science Quarterly, vol. 35, n. 3, pp. 530-547.
CABLE D.M., SHANE S. (1997), “A prisoner’s dilemma approach to entrepreneur-venture capitalist relationships”, Academy of Management Review, vol. 22, n. 1, pp. 142-176.
CAMPBELL W.K., GOODIE A.S., FOSTER J.D. (2004), “Narcissism, confidence, and risk attitude”, Journal of Behavioral Decision Making, vol. 17, n. 4, pp. 297-311.
CHANG J.J., HUNG K.P., LIN M.J.J. (2014), “Knowledge creation and new product performance: the role of creativity”, R&D Management, vol. 44, n. 2, pp. 107-123.
CHATTERJEE A., HAMBRICK D.C. (2007), “It’s All about Me: Narcissistic Chief Executive Officers and Their Effects on Company Strategy and Performance”, Admnistrative Science Quarterly, vol. 52, n. 3, pp. 351-386.
CHEN C.C., GREENE P.G., CRICK A. (1998), “Does entrepreneurial self-efficacy distinguish entrepreneurs from managers?”, Journal of Business Venturing, vol. 13, n. 4, pp. 295-316.
CHOE K.L., LOO S.C., LAU T.C. (2013), “Exploratory Study on the Relationship between Entrepreneurial Attitude and Firm’s Performance”, Asian Social Science, vol. 9, n. 4, pp. 144-149.
CIAVARELLA M.A., BUCHHOLTZ A.K., RIORDAN C.M., GATEWOOD R.D., STOKES G.S. (2004), “The Big Five and venture survival: Is there a linkage?”, Journal of Business Venturing, vol. 19, n. 4, pp. 465-483.
CORBETTA G. (2011), “Imprenditorialità e aziende dell’Italian style”, Sinergie, n. 71, pp. 53-72.
COSTA P.T., MCCRAE R.R. (2008), “The revised neo personality inventory (neo-pi-r)”, in AA.VV., The SAGE handbook of personality theory and assessment: Personality measurement and testing, Vol. 2, SAGE Publications, London.
COSTA P.T., MCCRAE R.R., HOLLAND J.L. (1984), “Personality and vocational interests in an adult sample”, Journal of Applied psychology, vol. 69, n. 3, pp. 390.
DAMANPOUR F. (1996), “Organizational Complexity and Innovation: Developing and Testing Multiple Contingency Models”, Management Science, vol. 42, n. 5, pp. 693-716.
DYER W.G., HANDLER W. (1994), “Entrepreneurship and family business: Exploring the connections”, Entrepreneurship Theory and Practice, n. 19, pp. 71-83.
FRITSCH M. (2011), “Start-ups in innovative industries: causes and effects”, in AA.VV., Handbook of research on innovation and entrepreneurship, Edward Elgar Publishing, Cheltenham.
GABRIEL M.T., CRITELLI J.W., EE J.S. (1994), “Narcissistic Illusions in Self‐Evaluations of Intelligence and Attractiveness”, Journal of Personality, vol. 62, n. 1, pp. 143-155.
GARDNER W.L., AVOLIO B.J. (1998), “The charismatic relationship: A dramaturgical perspective”, Academy of Management Review, vol. 23, n. 1, pp. 32-58.
GATEWOOD E.J., SHAVER K.G., GARTNER W.B. (1995), “A longitudinal study of cognitive factors influencing start-up behaviors and success at venture creation”, Journal of Business Venturing, vol. 10, n. 5, pp. 371-391.
GONCALO J.A., FLYNN F.J., KIM S.H. (2010), “From a mirage to an oasis: Narcissism, perceived creativity and creative performance”, Academy of Management 2010 Annual Meeting - Dare to Care: Passion and Compassion in Management Practice and Research, AOM 2010.
GOODSTADT B.E., HJELLE L.A. (1973), “Power to the powerless: locus of control and the use of power”, Journal of Personality and Social Psychology, vol. 27, n. 2, pp. 190.
GREEN J., BINSARDI B. (2015), “Entrepreneurial intentions: a grounded theory of green-fielding”, Sinergie, vol. 33, n. 97, pp. 17-36.
GROENEWEGEN G., DE LANGEN F. (2012), “Critical Success Factors of the Survival of Start-Ups with a Radical Innovation”, Journal of Applied Economics and Business Research, vol. 2, n. 3, pp. 155-171.
HAFEEZ M.H., SHARIFF M.N.M., BIN MAD LAZIM H. (2012), “Relationship between Entrepreneurial Orientation, Firm Resources, SME Branding and Firm’s Performance: Is Innovation the Missing Link?”, American Journal of Industrial and Business Management, vol. 2, n. 04, pp. 153.
HOGAN R., SHELTON D. (1998), “A socioanalytic perspective on job performance”, Human Performance, vol. 11, n. 2-3, pp. 129-144.
HOWELL J.M., AVOLIO B.J. (1993), “Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance”, Journal of Applied Psychology, vol. 78, n. 6, pp. 891.
HUMPHREYS J.H., HADEN S.P., NOVICEVIC M.M., CLAYTON R.W., GIBSON J.W. (2011), “Lillian McMurry of trumpet records: Integrity and authenticity in the charismatic, constructive narcissist leader”, Journal of Leadership and Organizational Studies, vol. 18, n. 1, pp. 40-55.
HURTZ G.M., DONOVAN J.J. (2000), “Personality and job performance: the Big Five revisited”, Journal of Applied Psychology, vol. 85, n. 6, pp. 869.
JOHN O.P., SRIVASTAVA S. (1999), “The Big Five trait taxonomy: History, measurement, and theoretical perspectives”, Handbook of Personality: Theory and Research, n. 2, pp. 102-138.
JUDGE T.A., BONO J.E. (2000), “Five-factor model of personality and transformational leadership”, Journal of Applied Psychology, vol. 85, n. 5, pp. 751-765.
JULIAN C.C., TERJESEN S. (2006), “Entrepreneurial aspirations-a five country study”, Proceedings of the 11th Annual Conference of Asia Pacific Decision Sciences Institute, june 2006.
KICKUL J., GUNDRY L. (2002), “Prospecting for strategic advantage: the proactive entrepreneurial personality and small firm innovation”, Journal of Small Business Management, vol. 40, n. 2, pp. 85-97.
KOBASA S.C., MADDI S.R., KAHN S. (1982), “Hardiness and health: a prospective study”, Journal of Personality and Social Psychology, vol. 42, n. 1, pp. 168.
KRUEGER N.F. (1993), “The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability”, Entrepreneurship Theory and Practice, vol. 18, n. 1, pp. 5-21.
LEFCOURT H.M. (2014), Locus of control: Current trends in theory & research, Psychology Press, New York.
LLEWELLYN D.J., WILSON K.M. (2003), “The controversial role of personality traits in entrepreneurial psychology”, Education+ Training, vol. 45, n. 6, pp. 341-345.
LUBIT R. (2002), “The long-term organizational impact of destructively narcissistic managers”, The Academy of Management Executive, vol. 16, n. 1, pp. 127-138.
MACCOBY M. (2000), “Narcissistic leaders: The incredible pros, the inevitable cons.”, Harvard Business Review, vol. 78, n. 1, pp. 68-78.
MACCOBY M. (2003), The productive narcissist: The promise and peril of visionary leadership, Broadway, New York.
MATHIEU C., ST-JEAN É. (2013), “Entrepreneurial personality: The role of narcissism”, Personality and Individual Differences, vol. 55, n. 5, pp. 527-531.
MCCRAE R.R., COSTA P.T. (1985), “Comparison of EPI and psychoticism scales with measures of the five-factor model of personality”, Personality and Individual Differences, vol. 6, n. 5, pp. 587-597.
MCCRAE R.R., COSTA P.T. (1987), “Validation of the five-factor model of personality across instruments and observers”, Journal of Personality and Social Psychology, vol. 52, n. 1, pp. 81.
MCCRAE R.R., COSTA P.T. (2003), Personality in adulthood: A five-factor theory perspective, Guilford Press, New York.
MCCRAE R.R., JOHN O.P. (1992), “An introduction to the five factor model and its applications”, Journal of Personality, vol. 60, n. 2, pp. 175-215.
MEIER M. (2011), “Knowledge management in strategic alliances: a review of empirical evidence”, International Journal of Management Reviews, vol. 13, n. 1, pp. 1-23.
MILLER D. (2011), “Miller (1983) revisited: A reflection on EO research and some suggestions for the future”, Entrepreneurship Theory and Practice, vol. 35, n. 5, pp. 873-894.
MILLER D., DE VRIES M.F.K., TOULOUSE J.M. (1982), “Top executive locus of control and its relationship to strategy-making, structure, and environment”, Academy of Management Journal, vol. 25, n. 2, pp. 237-253.
MILLER D., TOULOUSE J.M. (1986), “Chief executive personality and corporate strategy and structure in small firms”, Management Science, vol. 32, n. 11, pp. 1389-1409.
MITCHELL T.R., SMYSER C.M., WEED S.E. (1975), “Locus of control: Supervision and work satisfaction”, Academy of Management Journal, vol. 18, n. 3, pp. 623-631.
NGA J.K.H., SHAMUGANATHAN G. (2010), “The influence of personality traits and demographic factors on social entrepreneurship start up intentions”, Journal of Business Ethics, vol. 95, n. 2, pp. 259-282.
PINTO J.K., PATANAKUL P. (2015), “When narcissism drives project champions: A review and research agenda”, International Journal of Project Management, vol. 33, n. 5, pp. 1180-1190.
RASKIN R., NOVACEK J. (1991), “Narcissism and the use of fantasy”, Journal of Clinical Psychology, 47, n. 4, pp. 490-499.
RAUCH A., FRESE M. (2007), “Let’s put the person back into entrepreneurship research: A meta-analysis on the relationship between business owners’ personality traits, business creation, and success”, European Journal of Work and Organizational Psychology, vol. 16, n. 4, pp. 353-385.
ROSENBUSCH N., BRINCKMANN J., BAUSCH A. (2011), “Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs”, Journal of Business Venturing, vol. 26, n. 4, pp. 441-457.
ROSENTHAL S.A., PITTINSKY T.L. (2006), “Narcissistic leadership”, The Leadership Quarterly, vol. 17, n. 6, pp. 617-633.
ROSS S.M., OFFERMANN L.R. (1997), “Transformational leaders: Measurement of personality attributes and work group performance”, Personality and Social Psychology Bulletin, vol. 23, n. 10, pp. 1078-1086.
ROTHMANN S., COETZER E. (2003), “The big five personality dimensions and job performance”, SA Journal of Industrial Psychology, vol. 29, n. 1, pp. p. 68-74.
ROTTER J.B. (1966), “Generalized expectancies for internal versus external control of reinforcement”, Psychological monographs: General and applied, vol. 80, n. 1, pp. 1.
SAMUELSSON M., DAVIDSSON P. (2009), “Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures”, Small Business Economics, vol. 33, n. 2, pp. 229-255.
SHANE S., CABLE D. (2002), “Network ties, reputation, and the financing of new ventures”, Management Science, vol. 48, n. 3, pp. 364-381.
SONG M., PODOYNITSYNA K., VAN DER BIJ H., HALMAN J.I. (2008), “Success Factors in New Ventures: A Meta analysis”, Journal of Product Innovation Management, vol. 25, n. 1, pp. 7-27.
UTTERBACK J.M., ABERNATHY W.J. (1975), “A dynamic model of process and product innovation”, Omega, vol. 3, n. 6, pp. 639-656.
VAN DE VEN A.H., HUDSON R., SCHROEDER D.M. (1984), “Designing new business startups: Entrepreneurial, organizational, and ecological considerations”, Journal of Management, vol. 10, n. 1, pp. 87-108.
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2016-12-22
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