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Article
Publication date: 4 September 2020

Frida Thomas Pacho and Hellena Mushi

This study aims to examine the effect of the effectuation set of means on new venture performance in the context of Tanzania’s emerging economy. To determine how new ventures…

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Abstract

Purpose

This study aims to examine the effect of the effectuation set of means on new venture performance in the context of Tanzania’s emerging economy. To determine how new ventures, benefit from the effectuation set of means experienced entrepreneurs possess, this study examines the role of the flexibility principle of effectuation as a key mediator.

Design/methodology/approach

The research is quantitative in nature, and a survey questionnaire was used to get data from five cities of Tanzania. In total, 350 samples obtained for analysis. The hierarchical regression and structural equation modeling were used for testing the hypotheses.

Findings

The effectuation set of means is affirmed to have a positive effect on new venture performance. The flexibility principle plays a partial mediating role in the relationship between the effectuation set of means and new venture performance.

Originality/value

This empirical evidence contributes to the progress of the theory of effectuation and also provides managerial guidelines for entrepreneurs who operate their new ventures and face uncertain business environments.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 13 no. 5
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 11 August 2021

Hussein-Elhakim Al Issa

This paper aims to further our understanding of the career success of the self-employed and how it is influenced by their psychological capital (PC), persistence (P) and…

853

Abstract

Purpose

This paper aims to further our understanding of the career success of the self-employed and how it is influenced by their psychological capital (PC), persistence (P) and risk-taking propensity (RTP). This study explores the direct effect of PC on success and investigates the potential mediation of P and RTP on the PC-success association.

Design/methodology/approach

In this quantitative study, questionnaires were administered to measure PC, P, risk-taking and success. Data was collected using purposive sampling with an expert judgment that represented a cross-section of the entrepreneurial population in three Malaysian northern states. Structural equation modeling by means of partial least square was used for hypotheses testing of the 252 usable responses.

Findings

Statistically significant and positive relationships were found between PC and success, whereas P and risk-taking were found to mediate the PC-success association. The mediation effects of P and risk-taking were more pronounced when entrepreneurial self-efficacy and optimism were included in the PC as a second-order construct than individually separate constructs.

Practical implications

The importance of the transitional progression of self-efficacy and optimism to success through P and risk-taking were verified and so can be used for nurturing efforts that activate positive self-efficacy and optimism for entrepreneurial career success. The lower mediation effect of risk-taking on the optimism-success association denotes caution when managing risk.

Originality/value

There is a relative dearth of supporting research that has not examined the inter-relationships between PC and career success of entrepreneurs. Exploring the intervening effect of P and risk-taking on that relationship is unprecedented.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 14 no. 4
Type: Research Article
ISSN: 2053-4604

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