We posit that when entrepreneurs engage in strategic activities from the onset of their new operations, they will have high growth aspirations. Our proposed mechanism is that strategic engagements open entrepreneurial ventures to learning opportunities through new processes, systems and markets, and thereby to greater growth opportunities. We focus on three strategic activities: product and process innovation and exporting. Furthermore, the benefits are reinforced in knowledge- intensive environments. To test our hypotheses we apply multilevel random slope estimation for individual data on 74 countries in 2001-2015 from the Global Entrepreneurship Monitor. The results are consistent with our hypotheses and robust to potential reverse causality between entrepreneurs’ strategic behaviour and growth aspirations, and to selection bias caused by the fact that the decisions to innovate, internationalize and grow a business are only observed for the sample of actual entrepreneurs.
|Journal||Academy of Management Proceedings|
|Early online date||18 Jul 2019|
|Publication status||Published - 1 Aug 2019|
|Event||79th Annual Meeting of the Academy of Management: AOM Annual Meeting 2019 - Boston, United States|
Duration: 9 Aug 2019 → 13 Aug 2019