Entrepreneurial Passion and Perceived Startup Performance: The Moderating Role of Entrepreneurial Orientation
Entrepreneurial Passion and Perceived Startup Performance: The Moderating Role of Entrepreneurial Orientation
Bryan Daniels | 2020
Abstract
There is a dearth of systematic empirical evidence regarding passion in entrepreneurship. Accordingly, the purpose of this study was to explore the relationship between the dimensions of entrepreneurial passion (inventing, founding, and developing), the dimensions of entrepreneurial orientation (risk, innovativeness, and proactiveness), and the dimensions of perceived performance (profit and growth). Few entrepreneurial passion-related studies have examined inventing, founding, and developing, together. This research was inspired by theories focusing on identity/role identity, entrepreneurial orientation, and organizational performance; all of which, combined, raises interesting and fascinating questions about the behavior and decision-making aspects of entrepreneurs, organizational strategies and practices, and organizational outcomes related to performance. Two questions were addressed: What is the relationship between entrepreneurial passion and perceived startup performance? Does entrepreneurial orientation moderate the relationship between entrepreneurial passion and perceived startup performance? An examination of relevant literature about the three constructs preceded the answers. I collected data from 91 leaders/CEOs of early-stage startups (ranging from one to five years of age) – located in a St. Louis, Missouri-based incubator. I used multiple linear regression and hierarchical multiple regression analyses to test the study’s 24 hypotheses. Overall, I rejected each of the hypotheses – as well as the 24 models that were found to be statistically insignificant. In four particular models, findings suggested that passion for inventing and the entrepreneurial orientation dimension of risk are partial contributors to enhancing perceived performance – specific to profit; passion for founding and the entrepreneurial orientation dimension of risk are partial contributors to enhancing perceived performance – specific to profit; passion for founding and the entrepreneurial orientation dimension of innovativeness are partial contributors to attenuating perceived performance – specific to growth; and passion for developing and the entrepreneurial orientation dimension of proactiveness are partial contributors to attenuating perceived performance – specific to profit. These findings fill an empirical void pertaining the emerging study of entrepreneurs, passion, and startups operating in an incubator environment. I present directions for future research.