The role of behavioural competences in predicting entrepreneurial funding resource orchestration

Parkes, Geoff, Hart, Mark, Rudd, John and Liu, Rebecca (2018). The role of behavioural competences in predicting entrepreneurial funding resource orchestration. Cogent Business & Management, 5 (1),

Abstract

This study examines how a psychometric testing tool can be used to explain, predict and measure behavioural competences and how entrepreneurs fund the firm. Reference is made to studies of personality traits (McClelland, 1961; Sandberg & Hoffer, 1987; Brockhaus, 1980; Baum & Locke, 2004; Ciaveralla, 2004; Rauch & Frese, 2007). More recent studies have called for research into behaviour and competences (Zhao, 2010; Bird at al, 2012; Mueller, 2012) and specifically in the finance context of orchestration of resources (Wright and Sigliani 2013). The authors take a pragmatic realism perspective using a mixed method study to explore the “reality” of the entrepreneur (Watson, 2013). Cluster analysis is used to identify the relationship between behavioural competences and funding outcomes. Applying Big 5 Theory of Personality and the Great 8 Competences indicates how behaviour impacts outcomes as entrepreneurs seek to access finance. The identification of three distinct groups in this longitudinal study means belonging to one of these groups predicts likely behaviour when searching for finance. A strong behavioural characteristic which emerged, validated through interviews and psychometric testing, was an orientation towards engagement and working with other organisations. In a funding context, this manifested itself in using networks, seeking advice and sharing equity. These co-operative, collaborative characteristics are different to the classic image of the entrepreneur as a risk-taker or extrovert. The study identifies entrepreneurs who are both successful and unsuccessful in finance applications and compares behavioural competency profiles, thus overcoming the limitations of many studies (Rauch 2007) that are biased towards successful enterprises.

Publication DOI: https://doi.org/10.1080/23311975.2018.1512833
Divisions: Aston Business School > Marketing & strategy
Aston Business School > Marketing & strategy research group
Aston Business School > Economics finance & entrepreneurship
Aston Business School
Additional Information: © 2018 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
Full Text Link:
Related URLs: https://www.cog ... 75.2018.1512833 (Publisher URL)
Published Online Date: 2018-08-24
Authors: Parkes, Geoff
Hart, Mark
Rudd, John
Liu, Rebecca

Download

[img]

Version: Accepted Version

License: Creative Commons Attribution

| Preview

Export / Share Citation


Statistics

Additional statistics for this record