The relationship between high growth expectations and new venture creation in nascent entrepreneurs: The key role of competitive innovation

Abstract

New venture creation is a long and complex process that requires significant personal effort. In this study, we analyse how high growth expectations influence new venture creation in nascent entrepreneurs. In addition, we aim to investigate the impact of competitive innovation on new venture creation through the mechanism established between high growth expectations and entrepreneurial effort. Drawing on a sample of 495 nascent entrepreneurs from PSED II, our results show that high growth expectations indirectly influence the creation of a new firm through nascent entrepreneurial effort. Furthermore, the competitive innovation of nascent entrepreneurs exhibits a positive relationship with new venture creation, facilitated by the relationship between high growth expectations and entrepreneurial effort. These results contribute to a better understanding of the role that high growth expectations play in the nascent entrepreneurial process and how competitive innovation and growth expectations explain the creation of a new firm.