Entrepreneurship and Organisation Development

Entrepreneurship is about starting an organization, organizing effort, and exploiting opportunities (with the phases of emergence, recognition, evaluation, and exploitation of opportunities). Entrepreneurial activity predicts wealth creation across nations. Entrepreneurs start new organizations and mold their organizational climate and culture. Entrepreneurial success (successful start-up, survival, firm growth) depends on the owners and may be a more useful (and a more objective) performance outcome variable than the supervisor ratings typically used in industrial/organizational psychology. Industrial/organizational psychology should, therefore, do more research on entrepreneurship.
A psychological model of entrepreneurship looks at distal variables of interpersonal variables, cognitive ability, school education, and experience and at proximal variables, such as cognitions (e.g., opportunity perception), motives (such as entrepreneurial visions and passions), and action strategies (e.g., proactive vs. reactive strategies). All of these factors should affect entrepreneurial success in interaction with situational and environmental conditions (such as industry, difficulty of doing business in an environment, and culture).
Meta-analyses and other reviews show that among the interpersonal variables, need for achievement, self-efficacy, cognitive ability, and expertise are clearly related to starting a business and business success. Similarly, entrepreneurial orientation, such as proactivity, innovativeness, competitive aggressiveness, risk taking, and autonomy, are related to starting a business and success. More recent resource-based theorizing argued for the importance of firm-specific knowledge and experiences for success that cannot be easily duplicated by competitors in the market.
  • Marketing and Planning
  • Strategy
  • Law and Finance
  • Operations

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