Understanding Entrepreneurial Commitment: A Test of Side-Bet Theory

Laëtita Gabay-Mariani; Saulo  Dubard Barbosa

doi:10.37725/mgmt.2024.8653

Laëtita Gabay-Mariani KEDGE Business School, Paris, France https://orcid.org/0000-0003-3412-2201
Saulo Dubard Barbosa Emlyon Business School, Lyon, France https://orcid.org/0000-0001-7246-5200

DOI: https://doi.org/10.37725/mgmt.2024.8653

Keywords: Entrepreneurial process, Commitment, Side-bet theory, Volition, Nascent entrepreneur, Student entrepreneur

Abstract

This paper contributes to the burgeoning literature on entrepreneurial commitment by providing a first empirical investigation of Howard Becker’s side-bet theory in the context of nascent entrepreneurship. We investigate how different forms of commitment relate to both entrepreneurial behavior and various side-bet categories: satisfying conditions, non-work concerns, others’ expectations, impersonal bureaucratic arrangements, perceived lack of alternatives, individual adjustments to social positions, and self-presentation concerns. We collected data from a representative sample (n = 242) of individuals granted with the French national student-entrepreneur status (NSES). Results froms hierarchical linear regressions reveal different patterns of side bets associated with entrepreneurial commitment, depending on its nature (value-based or exchange-based) and on its focus (the project or the profession). Our study (1) extends side-bet theory to the field of entrepreneurship and (2) improves understanding of factors associated with commitment during the volitional phase of the entrepreneurial process.

Downloads

Download data is not yet available.

Author Biographies

Laëtita Gabay-Mariani, KEDGE Business School, Paris, France

Laëtitia Gabay-Mariani is an associate professor of entrepreneurship, strategy and sustainable development at Kedge Business School. Her research focuses on entrepreneurs’ cognition and emotion, and on entrepreneurship education. She defended a doctoral thesis on nascent entrepreneurs’ commitment, and received two Best Thesis Award, from the Académie de l’entrepreneuriat et de l’innovation (AEI) and the Association internationale du management stratégique (AIMS).

Saulo Dubard Barbosa, Emlyon Business School, Lyon, France

Saulo Dubard Barbosa is professor of entrepreneurship and head of the InvEnt Research Center at Emlyon Business School. His main research interests include entrepreneurial decision making, the social and psychological dynamics of entrepreneurship, and more recently, the intersection between religion and entrepreneurship.

References

Acs, Z. J., Åstebro, T., Audretsch, D. B. & Robinson, D. T. (2016). Public policy to promote entrepreneurship: A call to arms. Small Business Economics, 47(1), 35–51. https://doi.org/10.1007/s11187-016-9712-2

Adam, A.-F. (2016). De l’intention au comportement entrepreneurial : Dans quelles mesures les notions d’engagement et d’intention planifiée peuvent-elles faciliter le passage à l’acte ? [Doctoral dissertation, Université Grenoble Alpes].

Adam, A.-F. & Fayolle, A. (2015). Bridging the entrepreneurial intention-behaviour gap: The role of commitment and implementation intention. International Journal of Entrepreneurship and Small Business, 25(1), 36–54. https://dx.doi.org/10.1504/IJESB.2015.068775

Adam, A. F., & Gabay-Mariani, L. (2021). Intended entrepreneurs' commitment: a new perspective on the mind-sets, antecedents and outcomes. International Journal of Entrepreneurship and Small Business, 44(1), 11–29.

Ajzen, I., Czasch, C. & Flood, M. G. (2009). From intentions to behavior: Implementation intention, commitment, and conscientiousness. Journal of Applied Social Psychology, 39(6), 1356–1372. https://doi.org/10.1111/j.1559-1816.2009.00477.x

Allen, N. J. & Meyer, J. P. (1990). The measurement and antecedents of affective, continuance and normative commitment to the organization. Journal of Occupational Psychology, 63(1), 1–18. https://doi.org/10.1111/j.2044-8325.1990.tb00506.x

Amit, R., & Muller, E. (1995). “Push” and “pull” entrepreneurship. Journal of Small Business & Entrepreneurship, 12(4), 64-80.

Anderson, A. R. & Jack, S. L. (2000). The production of prestige: An entrepreneurial Viagra. The International Journal of Entrepreneurship and Innovation, 1(1), 45–56. https://doi.org/10.1177/146575030000100106

Antonovics, K. & Golan, L. (2012). Experimentation and job choice. Journal of Labor Economics, 30(2), 333–366. https://doi.org/10.1086/663356

Åstebro, T. (2003). The return to independent invention: Evidence of risk seeking, extreme optimism or skewness-loving? The Economic Journal, 113(484), 226–239. https://doi.org/10.1111/1468-0297.00089

Åstebro, T., Bazzazian, N. & Braguinsky, S. (2012). Startups by recent university graduates and their faculty: Implications for university entrepreneurship policy. Research Policy, 41(4), 663–677. https://doi.org/10.1016/j.respol.2012.01.004

Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. The Journal of Political Economy, 98(5), 893–921. http://dx.doi.org/10.1086/261712

Becker, H. S. (1960). Notes on the concept of commitment. American Journal of Sociology, 66(1), 32–40. http://links.jstor.org/sici?sici=3E2.0.CO%3B2-U

Bergmann, H., Geissler, M., Hundt, C. & Grave, B. (2018). The climate for entrepreneurship at higher education institutions. Research Policy, 47(4), 700–716. https://doi.org/10.1016/j.respol.2018.01.018

Bergmann, H., Hundt, C. & Sternberg, R. (2016). What makes student entrepreneurs? On the relevance (and irrelevance) of the university and the regional context for student start-ups. Small Business Economics, 47, 53–76. https://doi.org/10.1007/s11187-016-9700-6

Bernard, M.-J. & Dubard Barbosa, S. (2016). Résilience et entrepreneuriat : Une approche dynamique et biographique de l’acte d’entreprendre. M@n@gement, 19(2), 89–123. https://doi.org/10.3917/mana.192.0089

Boissin, J. P., Chollet, B. & Emin, S. (2009). Les déterminants de l’intention de créer une entreprise chez les étudiants: Un test empirique. M@n@gement, 12(1), 28–51. https://doi.org/10.3917/mana.121.0028

Bruyat, C. (1993). Création d’entreprise Contributions épistémologiques et modélisation [Doctoral dissertation, Université Pierre-Mendès-France].

Bruyat, C. & Julien, P.-A. (2001). Defining the field of research in entrepreneurship. Journal of Business Venturing, 16(2), 165–180. https://doi.org/10.1016/S0883-9026(99)00043-9

Cardon, M. S., Wincent, J., Singh, J. & Drnovsek, M. (2009). The nature and experience of entrepreneurial passion. Academy of Management Review, 34(3), 511–532. https://doi.org/10.5465/AMR.2009.40633190

Cardon, M. S., Zietsma, C., Saparito, P., Matherne, B. P. et al. (2005). A tale of passion: New insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing, 20(1), 23–45. https://doi.org/10.1016/j.jbusvent.2004.01.002

Carroll, G. R. & Mosakowski, E. (1987). The career dynamics of self-employment. Administrative Science Quarterly, 32(4), 570–589. https://doi.org/10.2307/2392884

Carter, N. M., Gartner, W. B. & Reynolds, P. D. (1996). Exploring start-up event sequences. Journal of Business Venturing, 11, 151–166. https://doi.org/10.1016/0883-9026(95)00129-8

Chay, Y. W. (1993). Social support, individual differences and well-being: A study of small business entrepreneurs and employees. Journal of Occupational and Organizational Psychology, 66(4), 285–302. https://doi.org/10.1111/j.2044-8325.1993.tb00540.x

Delanoë-Gueguen, S. & Fayolle, A. (2019). Crossing the entrepreneurial rubicon: A longitudinal investigation. Journal of Small Business Management, 57(3), 1044–1065. https://doi.org/10.1111/jsbm.12419

de La Ville, V.-I. (2001). L’émergence du projet entrepreneurial: Apprentissages, improvisations et irréversibilités. Revue de l’entrepreneuriat, 1(1), 43–59. https://doi.org/10.3917/entre.011.0043

Diamantopoulos, A., & Winklhofer, H. M. (2001). Index construction with formative indicators: An alternative to scale development. Journal of marketing research, 38(2), 269–277.

Dickson, P. R. & Giglierano, J. J. (1986). Missing the boat and sinking the boat: A conceptual model of entrepreneurial risk. Journal of Marketing, 50(3), 58–70. https://doi.org/10.1177/002224298605000305

Douglas, E. J. (2013). Reconstructing entrepreneurial intentions to identify predisposition for growth. Journal of Business Venturing, 28(5), 633–651. https://doi.org/10.1016/j.jbusvent.2012.07.005

Dubard Barbosa, S., Fayolle, A. & Smith, B. R. (2019). Biased and overconfident, unbiased but going for it: How framing and anchoring affect the decision to start a new venture. Journal of Business Venturing, 34(3), 528–557. https://doi.org/10.1016/j.jbusvent.2018.12.006

Dunn, T. & Holtz-Eakin, D. (2000). Financial capital, human capital, and the transition to self-employment: Evidence from intergenerational links. Journal of Labor Economics, 18(2), 282–305. http://dx.doi.org/10.1086/209959

Eberhart, R. N., Barley, S. & Nelson, A. (2022). Freedom is just another word for nothing left to lose: Entrepreneurialism and the changing nature of employment relations. In R. N. Eberhart, M. Lounsbury & H. E. Aldrich (Eds.), Entrepreneurialism and Society: New theoretical perspectives (Research in the Sociology of Organizations, Vol. 81., pp. 13–41). Emerald Publishing Limited. Retrieved from https://ssrn.com/abstract=3904624

Fauchart, E. & Gruber, M. (2011). Darwinians, communitarians, and missionaries: The role of founder identity in entrepreneurship. Academy of Management Journal, 54(5), 935–957. https://doi.org/10.5465/amj.2009.0211

Fayolle, A. (2013). Personal views on the future of entrepreneurship education. Entrepreneurship & Regional Development, 25(7–8), 692–701. https://doi.org/10.1080/08985626.2013.821318

Fayolle, A., Basso, O. & Tornikoski, E. T. (2011). Entrepreneurial commitment and new venture creation: A conceptual exploration. In K. Hindle & K. Klyver (Eds.), Handbook of research on new venture creation (pp. 160–182). Edward Elgar. Retrieved from https://shs.hal.science/halshs-00785000

Fayolle, A., Dubard Barbosa, S. & Kickul, J. (2008). Une nouvelle approche du risque en création d'entreprise. Revue Française de Gestion, 185(5), 141–159. Retrieved from https://www.cairn.info/revue-francaise-de-gestion-2008-5-page-141.htm

Fayolle, A. & Liñán, F. (2014). The future of research on entrepreneurial intentions. Journal of Business Research, 67(5), 663–666. https://doi.org/10.1016/j.jbusres.2013.11.024

Gabay-Mariani, L. (2020). Le processus entrepreneurial à l'épreuve de l'engagement: contributions théoriques et méthodologiques à l'analyse de l'engagement des entrepreneurs naissants: une application au contexte de l'entrepreneuriat étudiant (Doctoral dissertation, Université Grenoble Alpes).

Gabay-Mariani, L. (2022). Measuring nascent entrepreneurs’ commitment: The conceptualization, measurement and proposition of an integrative model. Revue de l’entrepreneuriat, 21(3), 47–78. https://doi.org/10.3917/entre.213.0047

Gabay-Mariani, L. & Adam, A.-F. (2020). Uncovering the role of commitment in the entrepreneurial process: A research agenda. In A. Caputo & M. M. Pellegrini (Eds.), The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspects of entrepreneurship (pp. 147–169). Emerald Publishing. https://doi.org/10.1108/978-1-78973-507-920201011

Gabay-Mariani, L. & Boissin, J. (2019). Entreprendre maintenant ou plus tard ? Entreprendre & Innover, 42–43(3–4), 119. https://doi.org/10.3917/entin.042.0119

Gabay-Mariani, L. & Boissin, J. P. (2021). Commitment profiles of nascent entrepreneurs: Insights from an empirical taxonomy among French student entrepreneurs. International Journal of Entrepreneurial Behaviour and Research, 27(5), 1214–1240. https://doi.org/10.1108/IJEBR-09-2020-0652

Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review, 10(4), 696–706. https://doi.org/10.2307/258039

Gathmann, C. & Schönberg, U. (2010). How general is human capital? A task-based approach. Journal of Labor Economics, 28(1), 1–49. https://doi.org/10.1086/649786

Gellatly, I. R., Meyer, J. P. & Luchak, A. A. (2006). Combined effects of the three commitment components on focal and discretionary behaviors: A test of Meyer and Herscovitch’s propositions. Journal of Vocational Behavior, 69(2), 331–345. https://doi.org/10.1016/j.jvb.2005.12.005

GEM [Global Entrepreneurship Monitor] (2022). Global Entrepreneurship Monitor 2021/2022 Global Report: Opportunity amid disruption. GEM.

Gimeno, J., Folta, T. B., Cooper, A. C. & Woo, C. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42(4), 750–783. https://doi.org/10.2307/2393656

Goffman, E. (1955). On face-work: An analysis of ritual elements in social interaction. Psychiatry, 18(3), 213–231.

Gollwitzer, P. (1990). Action phases and mind-sets. In E. T. Higgins & R. M. Sorrentino (Eds.), Handbook of motivation and cognition: Foundations of social behavior (Vol. 2, pp. 53–92). Guilford Press. https://doi.org/10.4135/9781446249215

Gomez-Breysse, M. (2016). L’entrepreneur « lifestyle ». Revue de l’entrepreneuriat, 15(3–4), 231–256. https://doi.org/10.3917/entre.153.0231

Kolvereid, L. (1996). Prediction of employment status choice intentions. Entrepreneurship Theory and Practice, 21(1), 47–58. https://doi.org/10.1177/104225879602100104

Krueger, N. F. & Carsrud, A. L. (1993). Entrepreneurial intentions: Applying the theory of planned behaviour. Entrepreneurship & Regional Development, 5(4), 315–330. https://doi.org/10.1080/08985629300000020

Krueger, N. F., Reilly, M. D. & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5–6), 411–432. https://doi.org/10.1016/S0883-9026(98)00033-0

Kuratko, D. F. (2005). The emergence of entrepreneurship education: Development, trends, and challenges. Entrepreneurship Theory and Practice, 29(5), 577–598. https://doi.org/10.1111/j.1540-6520.2005.00099.x

Laffineur, C., Barbosa, S. D., Fayolle, A., & Montmartin, B. (2020). The unshackled entrepreneur: Occupational determinants of entrepreneurial effort. Journal of Business Venturing, 35(5), 105983. https://doi.org/10.1016/j.jbusvent.2019.105983

Laffineur, C., Dubard Barbosa, S., Fayolle, A. & Nziali, E. (2017). Active labor market programs’ effects on entrepreneurship and unemployment. Small Business Economics, 49(4), 889–918. https://doi.org/10.1007/s11187-017-9857-7

Lazear, E. P. (2004). Balanced skills and entrepreneurship. American Economic Review, 94(2), 208–211. https://doi.org/10.1257/0002828041301425

Lee, J.-H. & Venkataraman, S. (2006). Aspirations, market offerings, and the pursuit of entrepreneurial opportunities. Journal of Business Venturing, 21(11), 107–123. https://doi.org/10.1016/j.jbusvent.2005.01.002

Macmillan, I. C. & Narasimha, P. N. S. (1987). Characteristics distinguishing funded from unfunded business plans evaluated by venture capitalists. Strategic Management Journal, 8(6), 579–585. https://doi.org/10.1002/smj.4250080607

McCann, B. T. & Folta, T. B. (2010). Entrepreneurial entry thresholds. Journal of Economic Behavior & Organization, 84(3), 782–800. https://doi.org/10.1016/j.jebo.2012.09.020

McGee, G. W. & Ford, R. C. (1987). Two (or more?) dimensions of organizational commitment: Reexamination of the affective and continuance commitment scales. Journal of Applied Psychology, 72(4), 638–641. https://doi.org/10.1037/0021-9010.72.4.638

Meyer, J. P. & Allen, N. J. (1984). Testing the “side-bet theory’ of organizational commitment: Some methodological considerations. Journal of Applied Psychology, 69(3), 372–378. https://doi.org/10.1037/0021-9010.69.3.372

Meyer, J. P. & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1(1), 61–89. https://doi.org/10.1016/1053-4822(91)90,011-Z

Meyer, J. P., Becker, T. E. & Van Dick, R. (2006). Social identities and commitments at work: Toward an integrative model. Journal of Organizational Behavior, 27(5), 665–683. https://doi.org/10.1002/job.383

Meyer, J. P. & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human Resource Management Review, 11(3), 299–326. https://doi.org/10.1016/S1053-4822(00)00053-X

Meyer, J. P., & Herscovitch, L. (2001). Commitment in the workplace: Toward a general model. Human resource management review, 11(3), 299–326.

Powell, D. M. & Meyer, J. P. (2004). Side-bet theory and the three-component model of organizational commitment. Journal of Vocational Behavior, 65(1), 157–177. https://doi.org/10.1016/S0001-8791(03)00050-2

Radu-Lefebvre, M., Lefebvre, V., Crosina, E. & Hytti, U. (2021). Entrepreneurial identity: A review and research agenda. Entrepreneurship Theory and Practice, 45(6), 1550–1590. https://doi.org/10.1177/10422587211013795

Reynolds, P. D., Carter, N. M., Gartner, W. B., Greene, P. G. et al. (2002). The entrepreneur next door: Characteristics of individuals starting companies in America. Ewing Marion Kauffman Foundation. Retrieved from http://dx.doi.org/10.2139/ssrn.1262320

Rotefoss, B. & Kolvereid, L. (2005). Aspiring, nascent and fledgling entrepreneurs: An investigation of the business start-up process. Entrepreneurship & Regional Development, 17(2), 109–127. https://doi.org/10.1080/08985620500074049

Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2(2), 121–139. https://doi.org/10.1007/BF01384942

Rousseau, D. M. (1990). New hire perceptions of their own and their employer’s obligations: A study of psychological contracts. Journal of Organizational Behavior, 11(5), 389–400. https://doi.org/10.1002/job.4030110506

Rousseau, D. M. & Parks, J. M. (1993). The contracts of individuals and organizations. Research in Organizational Behavior, 15, 1–47. https://doi.org/10.1002/job.4030110506

Sammut, S. (2001). Processus de démarrage en petite entreprise: Système de gestion et scénarios. Revue de l’entrepreneuriat, 1(1), 61–76. https://doi.org/10.3917/entre.011.0061

Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263. https://doi.org/10.2307/259121

Shapero. A. (1982). Social dimensions of entrepreneurship. In C. Kent, D. Sexton & K. Vesper (Eds.), The Encyclopedia of Entrepreneurship (pp. 72–90). Prentice Hall.

Shore, L. M., Tetrick, L. E., Shore, T. H. & Barksdale, K. (2000). Construct validity of measures of Becker’s side bet theory. Journal of Vocational Behavior, 57(3), 428–444. https://doi.org/10.1006/jvbe.1999.1749

Sieger, P., Raemy, L., Zellweger, T., Fueglistaller, U., & Hatak, I. (2021). Global Student Entrepreneurship 2021: Insights From 58 Countries. St. Gallen/Bern: KMU-HSG/IMU-U. Global GUESSS Report.

Snihur, Y., & Clarysse, B. (2022). Sowing the seeds of failure: Organizational identity dynamics in new venture pivoting. Journal of Business Venturing, 37(1), 106164. https://doi.org/10.1016/j.jbusvent.2021.106164

Sørensen, J. B. (2007). Bureaucracy and entrepreneurship: Workplace effects on entrepreneurial entry. Administrative Science Quarterly, 52(3), 387–412. https://www.jstor.org/stable/20109930

Staw, B. M. (1981). The escalation of commitment to a course of action. Academy of Management Review, 6(4), 577–587. https://doi.org/10.2307/257636

Stinglhamber, F., Bentein, K. & Vandenberghe, C. (2002). Extension of the three-component model of commitment to five foci: Development of measures and substantive test. European Journal of Psychological Assessment, 18(2), 123–138. https://doi.org/10.1027/1015-5759.18.2.123

Taylor, M. P. (1996). Earnings, independence or unemployment: Why become self-employed? Oxford Bulletin of Economics and Statistics, 58(2), 253–266. https://doi.org/10.1111/j.1468-0084.1996.mp58002003.x

Thornton, P. H. (1999). The sociology of entrepreneurship. Annual Review of Sociology, 25(1), 19–46. https://doi.org/10.1146/annurev.soc.25.1.19

Tornikoski, E. T. & Newbert, S. L. (2007). Exploring the determinants of organizational emergence: A legitimacy perspective. Journal of Business Venturing, 22(2), 311–335. https://doi.org/10.1016/j.jbusvent.2005.12.003

Tornikoski, E. T. & Renko, M. (2014). Timely creation of new organizations: The imprinting effects of entrepreneurs’ initial founding decisions. M@n@gement, 17(3), 193–213. https://doi.org/10.3917/mana.173.0193

Valéau, P. (2017). Les effets de l’engagement affectif, continu et normatif sur l-intention de rester dans le métier d-entrepreneur. Revue de l’entrepreneuriat, 16(3–4), 83–106. https://doi.org/10.3917/entre.163.0083

Van Gelderen, M. (2012). Perseverance strategies of enterprising individuals. International Journal of Entrepreneurial Behavior & Research, 18(6), 630–648.

Van Gelderen, M., Kautonen, T. & Fink, M. (2015). From entrepreneurial intentions to actions: Self-control and action-related doubt, fear, and aversion. Journal of Business Venturing, 30(5), 655–673. https://doi.org/10.1016/j.jbusvent.2015.01.003

Van Gelderen, M., Kautonen, T., Wincent, J. & Biniari, M. (2018). Implementation intentions in the entrepreneurial process: Concept, empirical findings, and research agenda. Small Business Economics, 51(4), 923–941. https://doi.org/10.1007/s11187-017-9971-6

Zunino, D., Dushnitsky, G. & van Praag, M. (2022). How do investors evaluate past entrepreneurial failure? Unpacking failure due to lack of skill versus bad luck. Academy of Management Journal, 65(4), 1083–1109. https://doi.org/10.5465/amj.2018.0579