The Effects of Business Failure Experience on Successive Entrepreneurial Engagements: An Evolutionary Phase Model

This study draws insights from the literatures on entrepreneurial learning from failure and organizational imprinting to develop an evolutionary phase model to explain how prior business failure experience influences successive newly started businesses. Using multiple case studies of entrepreneurs located in an institutionally developing society in Sub-Sahara Africa, we uncover four distinctive phases of post-entrepreneurial business failure: grief and despair, transition, formation and legacy phases. We find that while the grieving and transition phases entailed processes of reflecting and learning lessons from the business failure experiences, the formation and legacy phases involve processes of imprinting entrepreneurs’ experiential knowledge on their successive new start-up firms. We conclude by outlining a number of fruitful avenues for future research

Sources of stakeholder salience in the responsible investment movement: why do investors sign the Principles for Responsible Investment?

Since its inception in 2006, the United Nations-backed Principles for Responsible Investment (PRI) have grown to over 1300 signatories representing over $45 trillion. This growth is not slowing down. In this paper, we argue that there is a set of attributes which make the PRI salient as a stakeholder and its claim to sign the six PRI important to institutional investors. We use Mitchell et al.’s (Acad Manag Rev 22:853–886, 1997) theoretical framework of stakeholder salience, as extended by Gifford (J Bus Eth 92:79–97, 2010). We use as evidence confidential data from the annual survey of signatories carried out by the PRI in a 5-year period between 2007 and 2011. The findings highlight pragmatic and organizational legitimacy, normative and utilitarian power, and management values as the attributes that contribute most to the salience of the PRI as a stakeholder

The same but different: Understanding entrepreneurial behaviour in disadvantaged communities

While entrepreneurship is widely viewed as being equally accessible in all contexts, it could be questioned if potential or nascent entrepreneurs from minority and disadvantaged communities experience entrepreneurship in a similar manner to the mainstream population. This chapter examines immigrant, people with disability, youth, gay and unemployed communities to explore how their entrepreneurial behaviour might differ from the practices of mainstream entrepreneurs. What emerges is that marginalised communities can frequently find it difficult to divorce business from social living. This can have both positive and negative connotations for an entrepreneur, plus they face additional and distinctive challenges that mainstream entrepreneurs do not experience. The chapter concludes by proposing a novel ‘funnel approach’ that policymakers might adopt when seeking to introduce initiatives targeted at these disadvantaged communities

Class Advantage, Commitment Penalty: The Gendered Effect of Social Class Signals in an Elite Labor Market

Research on the mechanisms that reproduce social class advantages in the United States focuses primarily on formal schooling and pays less attention to social class discrimination in labor markets. We conducted a résumé audit study to examine the effect of social class signals on entry into large U.S. law firms. We sent applications from fictitious students at selective but non-elite law schools to 316 law firm offices in 14 cities, randomly assigning signals of social class background and gender to otherwise identical résumés. Higher-class male applicants received significantly more callbacks than did higher-class women, lower-class women, and lower-class men. A survey experiment and interviews with lawyers at large firms suggest that, relative to lower-class applicants, higher-class candidates are seen as better fits with the elite culture and clientele of large law firms. But, although higher-class men receive a corresponding overall boost in evaluations, higher-class women do not, because they face a competing, negative stereotype that portrays them as less committed to full-time, intensive careers. This commitment penalty faced by higher-class women offsets class-based advantages these applicants may receive in evaluations. Consequently, signals of higher-class origin provide an advantage for men but not for women in this elite labor market