Set Up to Fail: Explaining When Women-Led Businesses Are More Likely to Fail

2017 ◽  
Vol 45 (3) ◽  
pp. 926-954 ◽  
Author(s):  
Tiantian Yang ◽  
María del Carmen Triana

Drawing on role congruity theory, we examine whether and when women-led ventures are more likely to fail than men-led ventures. We investigate the relationship between the gender of the leading entrepreneur and business failure and three important moderators of this relationship: whether the leadership assignment is consistent with merit, whether the venture operates in a female-dominated industry, and whether the venture is operated by a spousal team. Drawing on a unique, nationally representative data set of entrepreneurial firms sampled from the U.S. population in 2005 and followed yearly until 2011, we demonstrate that female entrepreneurs’ businesses are more likely to fail than those of their male counterparts. Regarding the moderating effects, our results show that female entrepreneurs’ businesses are more likely to fail when their merit-based competence is inferior to that of their cofounders. However, in the same scenario, male entrepreneurs are still able to lead their businesses successfully. We also find that women entrepreneurs’ disadvantages in leading new businesses are amplified in contexts that many have expected to be supportive of women, including in industries dominated by women and within spousal teams. Together, our results suggest that women’s disadvantages in leading their businesses may be perpetuated by gender beliefs that discount women’s leadership. Based on our findings, we discuss our contributions to theory and practice, and we offer implications for future research.

2020 ◽  
pp. 104225872098070
Author(s):  
Eric Yanfei Zhao ◽  
Ling Yang

Studies that apply gender role congruity theory (GRCT) have focused on resource providers’ biased evaluations and women entrepreneurs’ internalization of gender stereotypes as primary mechanisms explaining the gender gap in venture performance. We provide an institutional foundation for GRCT and argue that informal political–cultural institutions—namely, government interference in market-based competition and cultural beliefs regarding gender inequality—differentially shape male versus female entrepreneurs’ venture performance through their influences on entrepreneurs’ industry selection and participation in after-work social activities. Our study of 7,626 Chinese entrepreneurial firms provides strong support for our arguments and contributes to women’s entrepreneurship theory and practice.


2021 ◽  
pp. 000276422110031
Author(s):  
Laura Robinson ◽  
Jeremy Schulz ◽  
Øyvind N. Wiborg ◽  
Elisha Johnston

This article presents logistic models examining how pandemic anxiety and COVID-19 comprehension vary with digital confidence among adults in the United States during the first wave of the pandemic. As we demonstrate statistically with a nationally representative data set, the digitally confident have lower probability of experiencing physical manifestations of pandemic anxiety and higher probability of adequately comprehending critical information on COVID-19. The effects of digital confidence on both pandemic anxiety and COVID-19 comprehension persist, even after a broad range of potentially confounding factors are taken into account, including sociodemographic factors such as age, gender, race/ethnicity, metropolitan status, and partner status. They also remain discernable after the introduction of general anxiety, as well as income and education. These results offer evidence that the digitally disadvantaged experience greater vulnerability to the secondary effects of the pandemic in the form of increased somatized stress and decreased COVID-19 comprehension. Going forward, future research and policy must make an effort to address digital confidence and digital inequality writ large as crucial factors mediating individuals’ responses to the pandemic and future crises.


2017 ◽  
Vol 40 (3) ◽  
pp. 310-330 ◽  
Author(s):  
Chetna Kudeshia ◽  
Amresh Kumar

Purpose The purpose of this paper is to examine how user-generated positive social electronic word-of-mouth (eWOM) via Facebook affects brand attitude and, consequently, influences purchase intention of smartphones. The spending patterns of consumers, particularly decision-makers, have been affected to a substantial degree by the strong presence of brands on the web. eWOM, one among the shape of net product reviews, exercises extensive influence not only on the consumers’ attitude towards the brand but also impacts their buying intentions. Design/methodology/approach A survey-based empirical study was conducted to examine the influence of social eWOM on brand attitude and purchase intention of consumers. Structural equation modeling (SEM) was applied using data collected from 311 respondents comprising users of Facebook. Findings The research established that user-generated positive eWOM on social networking site, Facebook significantly influences brand attitude and purchase intention of consumer electronics. Research limitations/implications The data set used for the study limits generalizing of results, as the data are not representative across industries or across all social media applications. The study provides a useful and interesting insight into the theory and practice of eWOM. It shows how social eWOM, an emerging communication tool, not only helps twenty-first century marketers in reaching customers, but how it also plays a vital role in affecting brand attitude and purchase intention of products. Originality/value This paper provides useful and valuable insights into the relationship between social eWOM, brand attitude and purchase intention of consumer electronics, an area that largely remains unexplored. The study can also be replicated for other products or services for future research.


Author(s):  
Simon Kleinert ◽  
Kazem Mochkabadi

AbstractEquity crowdfunding has the potential to democratize entrepreneurial finance and provide female entrepreneurs with new and equal access to early-stage financing. In this paper, we present first empirical evidence on gender stereotypes in the context of technology ventures in equity crowdfunding. Drawing on signaling and gender role congruity theory, we hypothesize that quality signals have different effects depending on whether they are sent by male or female entrepreneurs. Results taken from a sample of 263 equity crowdfunding campaigns run by technology ventures confirm our hypotheses. In line with gender stereotypes, management experience is beneficial for male entrepreneurs but detrimental for female entrepreneurs. Interestingly, media coverage as a third-party signal has the oppositive effect, being more effective for female entrepreneurs.


2022 ◽  
Vol 5 ◽  
pp. 2
Author(s):  
Andrew Wormald ◽  
Philip McCallion ◽  
Mary McCarron

Background: Loneliness has been associated with hypervigilance and sad passivity. The physiological and psychological reactions of people with an intellectual disability to loneliness have never been investigated. This research aims to explore the outcomes of loneliness for an ageing intellectual disability population. Methods: In Ireland, data from a nationally representative data set of people aged over 40 years with an intellectual disability (N=317) was applied to a social environment model that describes the effects of loneliness in five pre-disease pathways health behaviours, exposure to stressful life events, coping, health and recuperation. The data was tested through chi-squared, ANCOVA and binary logistic regression. Results: Being lonely predicted raised systolic blood pressure (A.O.R=2.051, p=0.039), sleeping difficulties (AOR=2.526, p=0.002) and confiding in staff (AOR=0.464 p=0.008). Additionally, participants who did moderate activity had significantly higher loneliness scores (F=4.171, p<0.05). Conclusions: The analysis supports the concept of hypervigilance in older people with an intellectual disability and limited support for the use of coping mechanisms that differ from those found in the wider population. Future research needs to investigate the longitudinal relationships between loneliness and health.


2016 ◽  
Vol 8 (2) ◽  
pp. 137-172 ◽  
Author(s):  
Diana M. Hechavarría

Purpose Drawing on the multiplicity of context approach, this study investigates whether female entrepreneurs are more likely than male entrepreneurs to create environmentally oriented organizations. This study aims to examine how context, measured by gender socialization stereotypes and post-materialism, differentially affects the kinds of organizations entrepreneurs choose to create. Design/methodology/approach To test the hypotheses, this study utilizes Global Entrepreneurship Monitor data from 2009 (n = 17,364) for nascent entrepreneurs, baby businesses owners and established business owners in 47 counties. This study also utilizes the World Values Surveys to measure gender ideologies and post-materialist cultural values at the country level. To test the hypotheses, a logistic multi-level model is estimated to identify the drivers of environmental venturing. Data are nested by countries, and this allows random intercepts by countries with a variance components covariance structure. Findings Findings indicate that female entrepreneurs are more likely to engage in ecological venturing. Societies with high levels of post-materialist national values are significantly more likely to affect female entrepreneurs to engage in environmental ventures when compared to male entrepreneurs. Moreover, traditional gender socialization stereotypes decrease the probability of engaging in environmental entrepreneurship. Likewise, female entrepreneurs in societies with strong stereotypes regarding gender socialization will more likely engage in environmental entrepreneurship than male entrepreneurs. Research limitations/implications The present study uses a gender analysis approach to investigate empirical differences in environmental entrepreneurial activity based on biological sex. However, this research assumes that gender is the driver behind variations in ecopreneurship emphasis between the engagement of males and females in venturing activity. The findings suggest that female entrepreneurs pursuing ecological ventures are more strongly influenced by contextual factors, when compared to male entrepreneurs. Future research can build upon these findings by applying a more nuanced view of gender via constructivist approaches. Originality/value This study is one of the few to investigate ecologically oriented ventures with large-scale empirical data by utilizing a 47-country data set. As a result, it begins to open the black box of environmental entrepreneurship by investigating the role of gender, seeking to understand if men and women entrepreneurs equally engage in environmental venturing. And it responds to calls that request more research at the intersection of gender and context in terms of environmental entrepreneurship.


2017 ◽  
Vol 24 (2) ◽  
pp. 271-287 ◽  
Author(s):  
Soyeon Kim ◽  
Mannsoo Shin

Purpose The purpose of this paper is to investigate the influence of gender on the effectiveness of transformational leadership. Drawing on role congruity theory, it elucidates the moderating effects of leader gender, subordinate gender, and leader-subordinate gender dyad on the relationship between transformational leadership and psychological empowerment. Design/methodology/approach Employees of companies in Korea responded to a paper-pencil survey, rating their psychological empowerment and leadership behaviors of their direct leader on a five-point Likert-type scale. The analysis includes 339 responses. Findings The results indicate that a leader’s gender has no significant moderating effect on psychological empowerment, but the gender of the subordinate has a significant moderating effect, with male subordinates more strongly influenced by transformational leadership than female subordinates. Notably, the findings show that the effectiveness of transformational leadership is contingent on the leader-subordinate gender dyad. Specifically, transformational leadership has as significant an effect on female leader-male subordinate dyads as on male leader-male subordinate dyads. Research limitations/implications This study contributes to leadership and gender studies in the management field by investigating the effect of gender roles on the effectiveness of transformational leadership. Future research should extend this study and explore whether these findings are generalizable. Practical implications The remarkable finding of the effect of female leadership on employee empowerment suggests organizations should use more female leaders. Originality/value This is the first empirical study to shed light on gender issues in relation to transformational leadership in Korea.


2015 ◽  
Vol 27 (4) ◽  
pp. 409-429 ◽  
Author(s):  
Joseph Amankwah-Amoah

Purpose – This study aims to examine the types of attributions after a business failure. Although business failure has garnered a plethora of scholarly attention, there remains an ambiguity and a lack of clarity about the process and types of attribution after a business failure. Design/methodology/approach – The paper is based on a synthesis of the multiple streams of research on the subject. This led to the development of an integrated framework of attributions after business failure. Findings – The paper integrates the business failure literature and attribution theory to develop a 2 × 2 conceptual framework which accounts for not only the effect on pace (time) but also locus of causality in the attribution process. Crossing the two main causes of business failure with two types of attribution produces the 2 × 2 matrix of types of attribution after a business failure which includes early internal attribution, late internal attribution, early external attribution and late external attribution. Research limitations/implications – The theorisation of the literature offers a number of implications for theory and practice. Originality/value – The study also explains the underlying processes inherent in learning from others’ failures and consequences of business failure. The framework removes some of the ambiguity in the existing literature and outlines a number of fruitful avenues for future research.


Urban Studies ◽  
2017 ◽  
Vol 54 (16) ◽  
pp. 3755-3771
Author(s):  
Antti Kouvo ◽  
Risto Haverinen

This article investigates neighbourhood social dynamics with the help of two attitude dimensions discovered in earlier qualitative research: the threshold of intervention and adaptation. The data come from a nationally representative Finnish Neighbourhood Survey ( N = 760) conducted in 2012. Our results show that adaptation and intervention characterise neighbourhood interaction in our survey data set as well. The threshold of intervention is higher among the residents of detached houses and those without strong ties in the neighbourhood. Adaptation is associated with low income and living in a detached house. However, different types of neighbours created on the basis of adaptation and intervention provide a richer picture of the phenomenon and more powerful explanations. The suggestions for future research and theoretical implications of the results are discussed.


2014 ◽  
Vol 21 (4) ◽  
pp. 548-564 ◽  
Author(s):  
Birthe Soppe ◽  
Christian Lechner ◽  
Michael Dowling

Purpose – The purpose of this paper is to investigate vertical interfirm relationships with direct competitors – also referred to as vertical “coopetition” – in entrepreneurial firms. Specifically, this study explores the reasons for why entrepreneurial firms engage in vertical coopetition and how they manage this particular type of interfirm relationship. The paper also shed light on the causes for termination of such delicate relational arrangements. Design/methodology/approach – The research design is exploratory. The paper analyze data collected by a survey that was specifically designed for this study. Based on the findings, the paper developed theoretical propositions specifying the conditions under which entrepreneurial firms engage in coopetition, how it is managed, and how it can be sustained. Findings – The findings show that coopetition is a ubiquitous phenomenon for entrepreneurial firms, and mainly arises out of a deliberate strategy. In contrast to large firms, entrepreneurial firms tend to manage coopetitive relationships in a central manner. Termination was common among firms facing high risk or when alternative strategies emerged. Research limitations/implications – This study provides a fundamental theoretical and evidence-based discussion of vertical coopetition in young firms. By doing so, the authors advance theory development, offer important insights for entrepreneurs seeking to benefit from intercompetitor linkages, and highlight promising avenues for future research. Originality/value – The paper makes several important contributions to the coopetition literature. The paper develop a definition of vertical coopetition and study the unique aspects associated with it. In contrast to most previous research in this area, the paper focus on entrepreneurial firms. The evidence-based analysis contributes to a better understanding of the reasons for entrepreneurial firms entering and terminating coopetitive arrangements as well as how they manage these types of collaborations. The paper develops theoretical propositions and generate novel insights into the dynamics and issues that arise with coopetition in entrepreneurial firms.


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