MODEL OF ENTREPRENEURIAL MOTIVATION

By Group 10

DOUGLAS W. NAFFZIGERJEFFERY S. HORNSBYDONALD F. KURATKO

•Presentation Layout

Introduction

Literature Review

Conclusion

Hypothesis

Model of Entrepreneurial Motivation

• This research proposes a Model that integrates the interactive aspects of models proposed by Researcher’s involving in :

Model in this Research exhibits : An implementation to outcome relationship describing various factors

the start up decision with issues of strategy formulation, implementation and sustained entrepreneurial behavior.

Suggests various hypothesis for future research.

• Introduction

Integrative model of motivation. (From the field of Organizational Behavior)

Venture start up process, Entrepreneurship.

Research ReviewGARTNER AND CARLAND (1988)Focus on the Process of the Entrepreneurship instead of the EntrepreneurEntrepreneurship is a Multidimensional Process and Entrepreneurial traits are just a component of the process.Multidimensional Factors leading to INNOVATION.

GREENBERGER AND SEXTON (1988) Model that incorporated individual Characteristics and Environmental Influences.

HERRON AND SAPIENZA’S AND LEARNED (1992)Motivation plays an important role in New organization creationConsequently Theories of Organization Creation that don’t address this trait are Incomplete .

PORTER AND LAWLER’S (1968)Integrative model of Motivation which describes the process by which entrepreneur decide whether or not to engage in entrepreneurial behavior.

• Search for personality differences-1980• Traits that distinguished were

• Need for achievement, Locus of control, Risk-taking property(Brockhaus, 1982)

• Energy level, Conformity, Need for Autonomy(Sexton & Bowman, 1986)

• Persistence & Dominance(Neider, 1987)• Desire to build something of one’s own(Knight)• One’s attitude about one’s self(Greenberger &

Sexton, 1988)

Personal Characteristics

• Entrepreneurial family• Shapero (1984)

• To change from a given life path• To start a company• Peers, family, mentors, role models, teachers,

respected public figures and writers• Martin (1984)

• Partial Social alienation• Psychological &Physical dispositions• Demonstration effects• Family factors• Precipitating Events

Personal Environment

• Vision : as an abstract image of what they aspire to create which serves as a guide for future action. (Greenberger & Sexton, 1988)

• Level of Aspiration: Every individual has a different level of aspiration based on individual characteristics and situations. (Herron & Sapienza, 1992)

It is believed that the personal goals of an entrepreneur will influence his decision and shape the eventual business.

Personal Goals

Shapero(1984) – factors↘availability of accessible resources↘societal attitudes toward business ↘economic conditions of the market

Other Authors↘Supportive Network

Learned (1992)↘environment effect situations, in turn stimulate entrepreneurs to take decision

Business Environment

•Ideas should evolve into successful ventures.

•Existence and evaluation of idea.

•Spot unique opportunities.

•Change common place

•Left their previous due to the “Pull”

Business iDEA

• Perceptual interpretations made by the entrepreneur play a key role in motivational process

•Strength of the relationship between the entrepreneur’s managerial strategies and firm outcomes

•The stronger the relationship is perceived to be, the stronger will be the motivation to behave entrepreneurially

•Feedback on succeeding strategies, strategy implementation and management of the firm.

Perceived Implementation-Outcome Relationship

Motivational Model Flow Chart

•Individual’s perception that out comes will meet or exceed expectations.

•Expectations of extrinsic and intrinsic outcomes

•Expectations may vary from individual to individual

•Outcome ⁺Independence, autonomy & control⁺Financial consideration⁺Significant sales and profit growth

Perceived Expectation-Outcome Relationship

Entrepreneurs will be motivated to behave entrepreneurially as long as they view that behavior being effective.

Firms performance may influence an entrepreneur but its only a part of the picture.

Goal achievement and not performance

An entrepreneurial tendency can be sustained as long there is a belief that there is no other viable option

Conclusion

Suggested Hypothesis• H1: Entrepreneurs enter new venture creation with a goal set relevant

to them personally and is not limited to performance oriented goals

• H2: Actual and perceived outcomes of the firms are compared with the expectations or goals set by the owner

• H3: Future entrepreneurial behaviors are based on the results of the perceived outcome as compared to the expectations.

• H4: Entrepreneurs expectations will change over time

• H5: Entrepreneurs will define their expectations in broader terms than the current traditional performance measures

Thank You!