Exploring an inverted U-shaped relationship between entrepreneurial experience and Chinese new venture performance: the moderating role of environmental uncertainty

ABSTRACT

This study explores the relationship between the founder’s entrepreneurial experience and new venture performance in the China’s emerging economy. Based on a sample of ventures in the southern region of China, we demonstrate that the relationship between entrepreneurial experience and performance in Chinese ventures is nonlinear. The empirical study reveals that a high level of experience has a negative impact on performance and there is an inverted U-shaped relationship between the founder’s entrepreneurial experience and new venture performance under the context of the China’s emerging economy. We also find that environmental uncertainty moderates the inverted U-shaped relationship.

KEYWORDS:

• Entrepreneurial experience
• environmental uncertainty
• performance
• new venture
• moderating role
• China

Disclosure statement

No conflict of interest was reported by the authors.

Additional information

Funding

This research was partly supported by the National Natural Science Foundation of China [Grant No. 72091310; 72091313].

Notes on contributors

Shan Lu

Shan Lu is a Ph.D. student at School of Management, Jilin University, China. Her main research interests are innovation and entrepreneurship management, and new ventures growth.

Biaoan Shan

Biaoan Shan is an associate professor of Business Administration at School of Management, Jilin University, China. His main research interests are founder’ characteristics, entrepreneurial learning, and new ventures growth.

Yupeng Fei

Yupeng Fei is a Professor of Business Administration at School of Management, Jilin University, China. His main research interests are innovation and entrepreneurship management.