Innovative Entrepreneurship: Testing the Theory of Environmental Determinism (original) (raw)
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by EMERIC SOLYMOSSY Entrepreneurship, a complex phenomenon, exhibits a rich history of theoretical contributions, but lacks a unifying theory. This research operationalizes a multidimensional framework for exploring the complexities of entrepreneurship based upon the integration of diverse disciplinary perspectives. Expanding upon Lumpkin and Dess= (1996) contingency framework, entrepreneurship is modeled as an economic phenomenon, with elements for the individual, the firm, and the environment, each of which influence success. The individual element expands upon and refines Robinson (1989) and Shanthakumar=s (1992) entrepreneurial attitudinal orientation (EAO) framework, assessing attitudinal and behavioral orientations in ten dimensions. The element of the firm integrates theoretical contributions from the fields of economics, strategy, and entrepreneurship to assess firm specific characteristics in four aspects: competitive attitude, strategic orientation, level of technology, and the utilization of networks for information exchange. Environmental influences are assessed in four dimensions: turbulence, hostility, complexity, and munificence. Success is found to have two distinct dimensions: economic success and the entrepreneur=s satisfaction. Empirical data from 370 entrepreneurs is analyzed by a combination of MANOVA analyses and linear structural equation modeling. Different individual and firm profiles iii are manifested for the different levels of success in each of its dimensions. Economic success is affected by uniquely different combinations than is success in terms of satisfaction. Furthermore, the relationships between individual attitudinal orientations and economic success display non-monotonic patterns. Individual=s attitudes have twice the effect upon the economic success of the venture as do the firm=s characteristics. Conversely, the firm=s characteristics have twice the influence upon the satisfaction of the entrepreneur as do the individual=s attitudes. Environmental influences are found to have little effect. While tentative due to the homogeneity of the sample, environmental generosity appears to benefit the individual, not the firm. This research contributes to entrepreneurship theory by integrating and operationalizing diverse disciplinary perspectives into a multidimensional framework, and by then analyzing it with methodological rigor. Implications are discussed, and suggestions are presented for future research to refine the framework by applying it to multi-environment / multi-country research. iv ACKNOWLEDGMENTS