Having hypothesised the main relationships that are likely to predict business growth, it is plausible to contend that some of the individual entrepreneurial passions might predict business growth more strongly than others. Some entrepreneurship and strategy scholars have shown interest in this issue (e.g., Morgan and Strong, 2003; Wiklund and Shepherd, 2005; Hughes and Morgan, 2007). The present study contends that while some of the domains of entrepreneurial passion are expected to work more favourably in predicting business growth, others might work against it. Further, the degree to which individual domains of entrepreneurial passion predicts business growth might be contingent on certain factors outside the borders of the business. Based on this logic, the present study develops hypotheses relating to the relationship between the entrepreneurial passion domains and business growth. This intends to enrich scholarly understanding on the contribution and consequences of the entrepreneurial passion domains to assist theory development.
5.4.1 Passion for Founding and Business Growth
Passion for founding concerns how the individual puts together the necessary financial, human and social resources required to create a new business (Cardon et al., 2009a; Cardon et al., 2013). Starting a new business requires financial, human and social resources and this poses a challenge for most nascent entrepreneurs. Previous empirical literature suggests that the individual’s aspiration to found a new business serves as a source of motivation for many entrepreneurs (Aldrrich and Zimmer, 1986; Cardon et al., 2013). Indeed, entrepreneurs differ in their willingness and abilities to act on these opportunities and this variation can affect the entrepreneurial process of founding new businesses. Individuals with high levels of passion
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for founding tend to establish ventures for commercialising and exploiting opportunities. Individuals who manifest high levels of passion for founding new firms have been described as habitual entrepreneurs (Ucbasaran et al., 2008; Cardon et al., 2013). That is, some of these entrepreneurs after launching their new ventures quickly entrust these ventures to other people to manage while they found new ones (Rostadt, 1988; Ucbasaran et al., 2008).
It has been argued that entrepreneurs involved in the ownership of multiple businesses (i.e., habitual) often accumulate relevant experience, which can help in identifing subsequent
business growth opportunities (Ucbasaran, Westhead and Wright, 2009). Similarly,
individuals with strong passion to found new ventures are more likely to exploit entrepreneurial opportunities and perform better than those with a weaker passion to engage in entrepreneurial activities (Shane and Venkataraman, 2000). This indicates that passion for founding relates to entrepreneurial activity that occurs because entrepreneurs act to pursue growth opportunities and achieve performance.
Existing research suggests that when firms possess the necessary financial, human, and social resources, they are able to create, implement, and reap the rewards of entrepreneurial behaviours (Covin and Slevin, 1991) which in turn can lead to higher performance (Shane and Venkataraman, 2000). Additionally, scholars have conceptually demonstrated the possibility that entrepreneurial passion for founding might bring beneficial effects on firm- level outcomes such as growth (e.g., Shane et al., 2003; Cardon et al., 2009a; Cardon et al., 2013). On the basis of these previous scholarly studies, there are theoretical grounds for suggesting that entrepreneurial passion for founding will enhance business growth. Thus, the following hypothesis is suggested:
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5.4.2 Passion for Inventing and Business Growth
Passion for inventing refers to the individual’s proclivity to scan the environment for new market opportunities, developing new products or services and working with new prototypes (Cardon et al., 2009a; Cardon et al., 2013; Cardon and Kirk, 2015). Existing empirical work suggests that some entrepreneurs search for innovative ideas more frequently than others (Katila and Ahuja, 2002). Most often, the desire to find solutions to marketplace problems and searching for innovative ideas serve as motivator for entrepreneurs with higher passion for inventing (Cardon et al., 2013).
Individuals with high levels of passion for inventing may actively seek out new opportunities, enjoy coming up with new product or service ideas, and develop new ways of solving problems related to the business. Such innovative ideas are likely to enhance the growth of their businesses (Cardon et al., 2009a).
This study’s major argument behind a positive association between passion for inventing and business growth is that extant research on business growth has often emphasised the importance of individual’s proclivity to scan the environment for new market opportunities in the development of new and commercially valuable products or services (Snow, 2007; Arregle et al., 2015). Indeed, research has shown that in order to generate potentially valuable opportunities for business growth, organisations must focus on employing creative individuals who can invent exceptional products (Shane, 2003; Leiblein, 2007). Based on this logic and consistent with existing scholarly development (e.g., Shane, 2003; Leiblein, 2007; Snow, 2007; Arregle et al., 2015), this study argues that entrepreneurs with high levels of passion for inventing will enhance business growth. Thus, it is proposed that:
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5.4.3 Passion for Developing and Business Growth
Passion for developing has been defined as the entrepreneur’s proclivity to grow and expand the business after founding (Cardon et al., 2009a; Cardon et al., 2013). Entrepreneurs are motivated to grow and expand their ventures after they had found them. This point is consistent with Cliff (2008) contending that many entrepreneurs are not only motivated by founding businesses but are also motivated to grow and expand their ventures. This is important because some scholars are of the view that achieving growth is the essence of founding the business (Sexton, 2001). To achieve growth, small business owner-managers often are more aggressive than their counterparts in devising strategies for growth (Gundry and Welch, 2001). As such, they employ different management styles (Smith and Miner, 1983) and to communicate effectively to different stakeholders in a way that brings growth and expansion (Baum and Locke, 2004).
As business growth is affected by a complex array of factors (Baum, Smith and Locke, 2001) business owners pursue a variety of business strategies to achieve growth and expansion. Accordingly, Hay and Kamshad (1994) contended that even if growth is perceived by entrepreneurs as the most important management objective, unless effective and appropriate strategies are deplored, growth will remain an elusive objective. Similarly, Kim and Mauborgne (1997) stated that the differences between the high-growth business and low growth businesses can be found in each group’s strategy. Thus, entrepreneurs who experience high passion for developing are likely to employ strategies that would eventually lead to business growth (Cardon et al., 2009a).
As argued by Cardon et al., (2013), entrepreneurs who experience high passion for developing may enjoy activities such as growth in sales, hiring new employees, or finding external equity to fund their businesses. This is similar to organic growth whereby the
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business is expanded by means of increased output and customer base expansion (e.g., Penrose, 1959; Davidsson, Achtenhagen and Naldi, 2010; Lockett et al., 2011). Accordingly, the present study suggests the following hypothesis:
H6: Passion for developing is positively related to business growth.