The winning personality: Impact of founders’ personality traits and firms’ network relationships on Chinese apparel new venture performance

Abstract

Purpose

Grounded in Barney’s (1991) resource-based view of the firm and social network theory, and utilizing the Big Five factors as outlined by McCrae and Costa (1997), the purpose of this paper is to investigate how founders’ personality traits impact the quality of a firm’s network relationships, its competitive advantages, and the performance of Chinese apparel new ventures.

Design/methodology/approach

An online survey was conducted, employing a purposive sampling technique. Founders or members of a founding team currently operating a business in the apparel industry in China who have been in business for five years or less were chosen for this study. The survey yielded 210 usable responses, which were used for further data analysis. Confirmatory factor analysis was first conducted to find a better model for the measurement of each latent variable. Structural equation modeling in AMOS 24 was then used to test the study’s hypothesized model.

Findings

The most notable finding was that three of the personality traits studied – openness to experience, agreeableness, and emotional stability – had statistically significant influences on the quality of firms’ relationships with supply-chain partners, but for the traits of extraversion and conscientiousness no influence was found. Further, perceived quality of firms’ network relationships helped enhance competitive advantages and firm performance. The findings identified unique personality traits that founders must possess for successful network relationships and are critical for the performance of Chinese apparel new ventures.

Originality/value

This is one of a few studies that simultaneously evaluate the impact of the personality traits of founders and the network resources of firms on the performance of new ventures in China. Its findings may help those who are interested in starting new ventures in the Chinese apparel industry to manage the external network relationships that are critical for new venture success. Supply-chain partners could also utilize these findings to create appropriate strategies for improving relationships with Chinese apparel new ventures to cope with the critical business challenges of globalization and collaboration.

Citation

Zhao, L. and Jung, H.-B. (2018), "The winning personality: Impact of founders’ personality traits and firms’ network relationships on Chinese apparel new venture performance", International Journal of Entrepreneurial Behavior & Research, Vol. 24 No. 2, pp. 553-573. https://doi.org/10.1108/IJEBR-09-2016-0281