IDEAS home Printed from https://ideas.repec.org/a/spr/intemj/v20y2024i1d10.1007_s11365-023-00943-5.html
   My bibliography  Save this article

Business model novelty and small firm innovativeness: the relationship with need for closure and creative self-efficacy

Author

Listed:
  • Mark T. Schenkel

    (Belmont University)

  • William C. McDowell

    (Texas State University)

  • Deborah V. Brazeal

    (California State Polytechnic University)

Abstract

The purpose of this paper is to examine the relationship between the need for closure and creative self-efficacy, two dynamic cognitive mechanisms, in conjunction with the impact of business model novelty on the ability of small firms to innovate. The driving premise is that both need for closure and creative self-efficacy enable entrepreneurs to effectively operate in the myriad complex opportunities and challenges that are encountered through the development of novel business models that may enhance firm innovativeness. Utilizing hierarchical regression on a sample of 212 respondents, we find that the adoption of a novelty-centered business model, creative self-efficacy, and a need for cognitive closure are all associated with firm innovativeness. The results further show that a novelty-centered business model fully mediates the relationship between need for closure and small firm innovativeness and partially the relationship between creative self-efficacy and small firm innovativeness. Implications and future research directions are also discussed.

Suggested Citation

  • Mark T. Schenkel & William C. McDowell & Deborah V. Brazeal, 2024. "Business model novelty and small firm innovativeness: the relationship with need for closure and creative self-efficacy," International Entrepreneurship and Management Journal, Springer, vol. 20(1), pages 141-162, March.
    • Handle: RePEc:spr:intemj:v:20:y:2024:i:1:d:10.1007_s11365-023-00943-5
    DOI: 10.1007/s11365-023-00943-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11365-023-00943-5
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11365-023-00943-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tim Mazzarol & Sophie Reboud, 2020. "Entrepreneurship and Innovation," Springer Texts in Business and Economics, Springer, edition 4, number 978-981-13-9412-6, December.
    2. Jun Yan & Li Yan, 2016. "Individual entrepreneurship, collective entrepreneurship and innovation in small business: an empirical study," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1053-1077, December.
    3. Mark T. Schenkel & Charles H. Matthews & Matthew W. Ford, 2009. "Making rational use of ‘irrationality’? Exploring the role of need for cognitive closure in nascent entrepreneurial activity," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(1), pages 51-76, January.
    4. Hunt, Richard A. & Lerner, Daniel A., 2018. "Entrepreneurial action as human action: Sometimes judgment-driven, sometimes not," Journal of Business Venturing Insights, Elsevier, vol. 10(C), pages 1-1.
    5. Koberg, Christine S. & Uhlenbruck, Nikolaus & Sarason, Yolanda, 1996. "Facilitators of organizational innovation: The role of life-cycle stage," Journal of Business Venturing, Elsevier, vol. 11(2), pages 133-149, March.
    6. Elena Cefis & Orietta Marsili, 2005. "A matter of life and death: innovation and firm survival," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 1167-1192, December.
    7. Mazzei, Matthew J. & Flynn, C. Brian & Haynie, Jeffrey J., 2016. "Moving beyond initial success: Promoting innovation in small businesses through high-performance work practices," Business Horizons, Elsevier, vol. 59(1), pages 51-60.
    8. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    9. Raj V. Mahto & William C. McDowell & Jerry Kudlats & Timothy C. Dunne, 2018. "Learning Orientation and Performance Satisfaction as Predictors of Small Firm Innovation: The Moderating Role of Gender," Group Decision and Negotiation, Springer, vol. 27(3), pages 375-391, June.
    10. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    11. Bettiol, M & Di Maria, E & Finotto, Vladi, 2012. "Marketing in smes: the role of entrepreneurial sensemaking," MPRA Paper 39405, University Library of Munich, Germany.
    12. Brown, Lincoln & Packard, Mark & Bylund, Per, 2018. "Judgment, fast and slow: Toward a judgment view of entrepreneurs' impulsivity," Journal of Business Venturing Insights, Elsevier, vol. 10(C), pages 1-1.
    13. Lin, Nidthida & Wilden, Ralf & Chirico, Francesco & Ghasrodashti, Elahe & DeTienne, Dawn R., 2022. "Persist or let it go: Do rational entrepreneurs make decisions rationally?," Journal of Business Venturing, Elsevier, vol. 37(4).
    14. Tether, B. S., 1998. "Small and large firms: sources of unequal innovations?," Research Policy, Elsevier, vol. 27(7), pages 725-745, November.
    15. Michalis E. Papazoglou, 2023. "Favorable strategies for the success of entry into new technological areas: an entrepreneurial perspective," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 403-426, March.
    16. Tim Mazzarol & Sophie Reboud, 2020. "Work Book: Entrepreneurship and Innovation in Large Firms," Springer Texts in Business and Economics, in: Workbook for Entrepreneurship and Innovation, edition 4, chapter 4, pages 31-44, Springer.
    17. Tim Mazzarol & Sophie Reboud, 2020. "Workbook for Entrepreneurship and Innovation," Springer Texts in Business and Economics, Springer, edition 4, number 978-981-13-9416-4, December.
    18. G. Page West & Terry W. Noel, 2009. "The Impact of Knowledge Resources on New Venture Performance," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(1), pages 1-22, January.
    19. Lerner, Daniel A. & Hunt, Richard A. & Dimov, Dimo, 2018. "Action! Moving beyond the intendedly-rational logics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 33(1), pages 52-69.
    20. Paul Geroski & Steve Machin & John Van Reenen, 1993. "The Profitability of Innovating Firms," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 198-211, Summer.
    21. Tim Mazzarol & Sophie Reboud, 2020. "Entrepreneurship and Innovation in Large Firms," Springer Texts in Business and Economics, in: Entrepreneurship and Innovation, edition 4, chapter 4, pages 95-129, Springer.
    22. Nicholls-Nixon, Charlene L. & Cooper, Arnold C. & Woo, Carolyn Y., 2000. "Strategic experimentation: Understanding change and performance in new ventures," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 493-521.
    23. Clara Gieure Sastre & María Mar Benavides-Espinosa & Domingo Ribeiro-Soriano, 2022. "When intentions turn into action: pathways to successful firm performance," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 733-751, June.
    24. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    25. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    26. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    27. Wenhong Zhao & Te Yang & Karen D. Hughes & Yixin Li, 2021. "Entrepreneurial alertness and business model innovation: the role of entrepreneurial learning and risk perception," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 839-864, June.
    28. Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.
    29. Yasuhiro Yamakawa & Mike W. Peng & David L. Deeds, 2015. "Rising from the Ashes: Cognitive Determinants of Venture Growth after Entrepreneurial Failure," Entrepreneurship Theory and Practice, , vol. 39(2), pages 209-236, March.
    30. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    31. William E. Baker & James M. Sinkula, 2009. "The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses," Journal of Small Business Management, Taylor & Francis Journals, vol. 47(4), pages 443-464, October.
    32. Jostein Vik & Gerard Mcelwee, 2011. "Diversification and the Entrepreneurial Motivations of Farmers in Norway," Journal of Small Business Management, Taylor & Francis Journals, vol. 49(3), pages 390-410, July.
    33. Dan Lovallo & Colin Camerer, 1999. "Overconfidence and Excess Entry: An Experimental Approach," American Economic Review, American Economic Association, vol. 89(1), pages 306-318, March.
    34. Marcin W. Staniewski & Robert Nowacki & Katarzyna Awruk, 2016. "Entrepreneurship and innovativeness of small and medium-sized construction enterprises," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 861-877, September.
    35. Weinzimmer, Laurence & Esken, Candace A. & Michel, Eric J. & McDowell, William C. & Mahto, Raj V., 2023. "The differential impact of strategic aggressiveness on firm performance: The role of firm size," Journal of Business Research, Elsevier, vol. 158(C).
    36. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.
    37. Deist, Maximilian K. & McDowell, William C. & Bouncken, Ricarda B., 2023. "Digital units and digital innovation: Balancing fluidity and stability for the Creation, Conversion, and Dissemination of sticky knowledge," Journal of Business Research, Elsevier, vol. 161(C).
    38. Sandipan S. Sen & Aliosha Alexandrov & Subhash Jha & William C. McDowell & Emin Babakus, 2023. "Convenient = competitive? How Brick-And-Mortar Retailers can cope with Online Competition," Review of Managerial Science, Springer, vol. 17(5), pages 1615-1643, July.
    39. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    40. Shaker A. Zahra & Anders P. Nielsen & William C. Bogner, 1999. "Corporate Entrepreneurship, Knowledge, and Competence Development," Entrepreneurship Theory and Practice, , vol. 23(3), pages 169-189, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Florentine U. Salmony & Dominik K. Kanbach, 2022. "Personality trait differences across types of entrepreneurs: a systematic literature review," Review of Managerial Science, Springer, vol. 16(3), pages 713-749, April.
    2. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    3. Jianyu Zhao & Yining Huang & Xi Xi & Shanshan Wang, 2021. "How knowledge heterogeneity influences business model design: mediating effects of strategic learning and bricolage," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 889-919, June.
    4. Jonathan Levie & Benyamin B. Lichtenstein, 2010. "A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(2), pages 317-350, March.
    5. Johan Wiklund & Dean A. Shepherd, 2008. "Portfolio Entrepreneurship: Habitual and Novice Founders, New Entry, and Mode of Organizing," Entrepreneurship Theory and Practice, , vol. 32(4), pages 701-725, July.
    6. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    7. Packard, Mark D. & Bylund, Per L., 2021. "From homo economicus to homo agens: Toward a subjective rationality for entrepreneurship," Journal of Business Venturing, Elsevier, vol. 36(6).
    8. Yi, Yaqun & Chen, Yu & Li, Dan, 2022. "Stakeholder ties, organizational learning, and business model innovation: A business ecosystem perspective," Technovation, Elsevier, vol. 114(C).
    9. Kurdoglu, Rasim Serdar & Lerner, Daniel & Ates, Nufer Yasin, 2022. "Unsticking the rationality stalemate: Motivated reasoning, reality, and irrationality," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    10. Hunt, Richard A. & Lerner, Daniel A. & Johnson, Sheri L. & Badal, Sangeeta & Freeman, Michael A., 2022. "Cracks in the wall: Entrepreneurial action theory and the weakening presumption of intended rationality," Journal of Business Venturing, Elsevier, vol. 37(3).
    11. Burnell, Devin & Stevenson, Regan & Fisher, Greg, 2023. "Early-stage business model experimentation and pivoting," Journal of Business Venturing, Elsevier, vol. 38(4).
    12. Yan Jingwen & Azmawani Abd Rahman & Tong Tong, 2022. "Research on the Impact of BMI on Enterprise Performance Based on the Antecedence of Risk Perception," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    13. Jiayue Zhang, 2024. "What Is a Successful Business Model? Exploration and Measurement of Key Attributes of Business Model," SAGE Open, , vol. 14(2), pages 21582440241, May.
    14. Shi Yin & Yuanyuan Yu & Nan Zhang, 2024. "The Effect of Digital Green Strategic Orientation On Digital Green Innovation Performance: From the Perspective of Digital Green Business Model Innovation," SAGE Open, , vol. 14(2), pages 21582440241, June.
    15. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    16. Linlin Zheng & Yashi Dong & Jineng Chen & Yuyi Li & Wenzhuo Li & Miaolian Su, 2022. "Impact of Crisis on Sustainable Business Model Innovation—The Role of Technology Innovation," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    17. Sena, Vania & Nocker, Manuela, 2021. "AI and Business Models: The Good, The Bad and The Ugly," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 14(4), pages 324-397, May.
    18. Tomas Karlsson & Caroline Wigren, 2012. "Start-ups among university employees: the influence of legitimacy, human capital and social capital," The Journal of Technology Transfer, Springer, vol. 37(3), pages 297-312, June.
    19. Baoliang Hu & Wei Huang & Shuai Yan & Guang Liu & Tao Zhang, 2020. "Business Model Design and Customer Loyalty: The Mediating Role of Customer Citizenship Behavior," Sustainability, MDPI, vol. 12(17), pages 1-14, August.
    20. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:intemj:v:20:y:2024:i:1:d:10.1007_s11365-023-00943-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.