The Long‐Term Impact of Entrepreneurial Self‐Efficacy and Entrepreneurial Orientation on Venture Performance

Abstract

We collected multi‐wave survey data to assess the lagged effects of entrepreneurial self‐efficacy (ESE) and entrepreneurial orientation (EO) on firm performance over a five‐year period. The results of our study indicate that ESE and EO are both positively associated with firm performance but in different, and interesting, ways. Entrepreneurially self‐efficacious founder/managers may help improve the performance of very young firms but such benefits dissipate over time. An EO, on the other hand, does not appear to be particularly beneficial to very young firms. However, our results suggest an EO may play an increasingly valuable role as new firms mature.

Notes

1. While this is not a multi‐level study, our unit of analysis is the individual entrepreneur. Founders of very small independent ventures, such as those in the current study, cannot only assess their own self‐efficacy but they are uniquely positioned to assess the strategic orientation of their firm. Moreover, performance of such firms is generally considered to be a direct reflection of the decisions made by the founder (Baum and Locke, 2004; Rauch, Wiklund, Lumpkin, and Frese, 2009).

Additional information

Notes on contributors

Jeffrey E. McGee

Jeffrey E. McGee is an Associate Professor of Management at University of Texas at Arlington.

Mark Peterson

Mark Peterson is a Professor of Marketing at University of Wyoming.