An empirical study of mechanisms to enhance entrepreneurs' capabilities through entrepreneurial learning in an emerging market

Abstract

Purpose

Based on behavioral learning theory, this paper argues that entrepreneurial learning plays an important role in enhancing entrepreneurs' capabilities. With increasing research attention given to entrepreneurs' capabilities, the need to explore the building mechanism has continued to escalate. The purpose of this paper is to explore the impact of changes in entrepreneurial learning approaches that influence the improvement of entrepreneurs' capabilities.

Design/methodology/approach

The authors sent out 1,200 questionnaires, and 226 were returned, of which 167 were usable. The authors used the difference in difference method and the ordinal logistic regression model to analyze the data and test the hypotheses.

Findings

In this paper, the authors report findings using panel data from 167 entrepreneurs. The empirical results show that changes in entrepreneurial learning influence changes in entrepreneurs' capabilities.

Practical implications

Combining theory and evidence from this study, an intertemporal learning model that suggests entrepreneurs' capabilities rest on a self‐reinforcing learning cycle of experiential learning and social network learning from stakeholders is proposed. This is a sense‐making and seizing process affected by entrepreneurs' previous knowledge and their degree of involvement in the organization, which leads them to dedicate increasing resources to the exploration and exploitation of some opportunities, following a process of improving their capabilities.

Originality/value

An empirical verification of the links between learning and capabilities development in the context of China's emerging economy, which has not been studied in the current literature is conducted. This paper provides implications for entrepreneurs in finding the right way to build and enhance capabilities through deployment of learning.

Citation

Jiao, H., ogilvie, d. and Cui, Y. (2010), "An empirical study of mechanisms to enhance entrepreneurs' capabilities through entrepreneurial learning in an emerging market", Journal of Chinese Entrepreneurship, Vol. 2 No. 2, pp. 196-217. https://doi.org/10.1108/17561391011051162