This thesis explores the phenomenon of individuals leaving management careers in
large corporations and establishing their own new ventures. Although the "corporate
leaver" entrepreneur story enjoys frequent coverage in the popular press, there is little
extant academic research on these individuals and their entrepreneurial process.
Particularly lacking is an understanding of how the entrepreneurs make use of their
past experiences. This study explores how entrepreneurs leverage human capital and
social capital from previous work experiences when starting their own ventures. This
dissertation is based on the results of an exploratory study and a main study, both of
which were classified using Nvivo software.
The exploratory study consists of interviews with six male/female entrepreneur pairs
matched by management level and industry sector of previous employment. The
exploratory study identifies the entrepreneurs' human capital and bridging and
bonding social capital as well as feelings about previous work experience, motivations
to start a new venture and family commitments.
The main study is based on interviews with 24 entrepreneurs (twelve male, twelve
female) who recently left management positions in financial services firms to
establish their own businesses. The main study extends the exploratory study by
unpacking the transfer of human capital in the form of knowledge creation and the
transfer of bonding and bridging social capital.
The research offers a number of theoretical, empirical, methodological and practical
contributions to the field. At a theoretical level, this research confirms the usefulness
of human capital and social capital for examining entrepreneurs' transfer from
corporate. An analysis of the main study interviews reveals that the transfer of tacit
and explicit knowledge from past work experience to the new venture can be mapped
to Nonaka's knowledge creation framework. Third, the research highlights the
application of structural, relational and cognitive dimensions of social capital to the
former corporate entrepreneurs' social networks. A typology of the degree of
transferability of human capital and social capital from previous work experiences is
suggested, and eight case studies illustrate the four types: applicators, exploiters,
networkers and re-inventors. The thesis offers empirical evidence in the form of entrepreneurs' self-reported human
capital and social capital. Entrepreneurs' human capital is classified in terms of
education, family background, and industry, management, business development and
start-up experience. Entrepreneurs' social capital is organised by bonding (e. g.
partners, mentors) and bridging relationships. The results indicate some differences
between male and female entrepreneurs in terms of gender homophily of social
networks. A framework for analysing the transfer of human capital and social capital
from past experience is developed. There is empirical evidence both of knowledge
and networks which the entrepreneurs report as transferring to the new venture, and
those which do not. Entrepreneurs' creation of new knowledge from past work
experience and transfer to the new venture can be classified by Nonaka's
socialisation, externalisation, combination and internalisation types. In terms of social
capital, entrepreneurs report transferring relationships from past work experiences
which have structural, relational and cognitive embeddedness.
At the methodological level, the rich, qualitative nature of this research enables new
insights into the transition from corporate to own ventures. Entrepreneurs' language
is used to measure relational, structural and cognitive embeddedness.
The thesis offers knowledge of practice. The phenomenon of individuals leaving
corporate management careers to start own ventures, particularly in the financial
services industry, is examined and explored. Implications for managers interested in
leaving corporate to start their own ventures are offered, as are suggestions for
corporations interested in retaining these employees. A typology of former corporate
entrepreneurs by human capital and social capital transfer is developed. Authenticity-
seeking motives are uncovered in the rhetoric of individuals who start new ventures in
new industries
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