Entrepreneurial Success is multidimensional: Development and Validation of Subjective Success Scale  Dominika   Dej 1 ,  M...
<ul><li>Our research goal is to propose a new scale measuring subjective entrepreneurial success that is of satisfactory c...
<ul><li>Sample (N= 243) </li></ul><ul><li>Firms founded, owned and managed by the entrepreneur (Rauch & Frese, 2000) </li>...
<ul><li>Measures  </li></ul><ul><li>Face-to-face interviews conducted with entrepreneurs by trained interviewers </li></ul...
STUDY 1: Results. Entrepreneurs‘ Success Definitions Category (N=243) Frequencies  Relative  Frequencies  Ranking  Satisfa...
Community Impact &  Environment Contributing back to the society Social responsibility for employees Creating new working ...
<ul><li>Hypothesis 1.   </li></ul><ul><li>The underlying structure of Entrepreneurial Subjective Success Scale consist of ...
<ul><li>Sample (N=184) </li></ul><ul><li>E ntrepreneurs = “(…) owns and manages the firm on the on the daily base” (Rauch,...
<ul><li>Importance x Achievement of success criteria </li></ul><ul><li>Exploratory & Confirmatory factor analyses </li></u...
Hypothesis 1: Development of scale measuring the Perception of Entrepreneurial Success Criteria Study 2: Results. Hypothes...
<ul><li>Subjective Entreprneurial Success is related to: </li></ul><ul><li>(+) Work Satisfaction (ß= .32, p<.001) </li></u...
<ul><li>Short, economic and reliable screening instrument for entrepreneurs themselves that provides a well basis for spec...
THANK YOU! Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology [email_add...
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Dej, Gorgievski & Wegge, Development of a subjective entrepreneurial success measure

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Paper presented at the 27th International Congress of Applied Psychology, Melbourne, Australia July 11th-16th, 2010

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  • Added value of proposed Subjective Success Scale  scale basis on previous empirical research and  includes various success criteria  both the importance and achievement of success criteria are taken into account (e.g. industry related factors, enormous and erratic growth rates, small starting base)
  • Inclusion of more objective employees’ success measures
  • Dej, Gorgievski & Wegge, Development of a subjective entrepreneurial success measure

    1. 1. Entrepreneurial Success is multidimensional: Development and Validation of Subjective Success Scale Dominika Dej 1 , Marjan Gorgievski 2 & Jürgen Wegge 1 1 Dresden University of Technology 2 Erasmus University Rotterdam Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology 27 th International Congress of Applied Psychology, Melbourne, Australia July 11th-16th, 2010
    2. 2. <ul><li>Our research goal is to propose a new scale measuring subjective entrepreneurial success that is of satisfactory construct and criterion validity </li></ul><ul><li>Limitations of existing measures of success </li></ul><ul><li> Content-related </li></ul><ul><li>only company related success criteria </li></ul><ul><li>satisfaction with objective success indicators </li></ul><ul><li>success comparing competitors </li></ul><ul><li> Measurement-related </li></ul><ul><li>- single items or/ and general items </li></ul><ul><li>unclear factorial structure of success criteria </li></ul>Goal of our study Do we need a new measure of success?
    3. 3. <ul><li>Sample (N= 243) </li></ul><ul><li>Firms founded, owned and managed by the entrepreneur (Rauch & Frese, 2000) </li></ul><ul><li>East Germany (35.40%), West Germany (40.70 %), Poland (23.90%) </li></ul><ul><li>Age: M=44 (SD= 9.04) </li></ul><ul><li>Gender: 76.50% male (N=186) </li></ul><ul><li>Industry sector: 57.2% in restaurants, 42.8% in Innovative Technologies (IT) </li></ul><ul><li>Employee number: M=16 (SD=19.08) </li></ul><ul><li>Company age: M=11 (SD= 5.96) </li></ul>STUDY 1: How do entrepreneurs define success? Study 1: How do entrepreneur‘s define success?
    4. 4. <ul><li>Measures </li></ul><ul><li>Face-to-face interviews conducted with entrepreneurs by trained interviewers </li></ul><ul><li>Open-ended question: </li></ul><ul><li>What does entrepreneurial success mean to you? </li></ul><ul><li>(What is your personal definition of entrepreneurial success?) </li></ul><ul><li>Analyses </li></ul><ul><li>Inductive Content analysis basing on the Grounded Theory (Strauss, 1987; Strauss & Corbin, 1990) </li></ul><ul><li>Stepwise development of data driven category system </li></ul><ul><li>Data coding supported by MaxQda Software (2003) </li></ul><ul><li>Inter-coder reliability (Polish data: 86.10% and German data: 72.85 %) </li></ul>STUDY 1: Measures and Analyses Study 1: Measures & Analysis
    5. 5. STUDY 1: Results. Entrepreneurs‘ Success Definitions Category (N=243) Frequencies Relative Frequencies Ranking Satisfaction of employees & co-owners 61 25,10 3 Employees’ security 16 6,58 12 Customer satisfaction & loyalty 98 40,33 2 Goals and challenge 53 21,81 5 Personal satisfaction 46 18,93 6 Creativity and innovation 20 8,23 10 Free time and health 12 4,94 13 Reputation 34 13,99 7 Firm continuity 5 2,06 14 Any kind of company growth 101 41,56 1 Stability 60 24,69 4 Market position 22 9,05 8 Survival 17 7,00 11 Wealth & good life 22 9,05 8 Study 1: Results. Entrepreneur‘s success definition
    6. 6. Community Impact & Environment Contributing back to the society Social responsibility for employees Creating new working places Environmental friendly company Personal income enhancement To afford a good life Personal financial & family security Positive relations with clients Employees’ satisfaction and loyalty Positive & supportive working climate Work-life balance & time flexibility Making decisions, challenge Personal development Company profitability Growth (employee, revenue, profit) Innovation Being better compared with competitors Workplace Relations Personal Fulfillment Company Performance Success Personal Financial Rewards Study 2: Proposed Model of Entrepreneurial Success
    7. 7. <ul><li>Hypothesis 1. </li></ul><ul><li>The underlying structure of Entrepreneurial Subjective Success Scale consist of five first order factors: (1) Workplace relations, (2) Personal fulfillment, (3) Community impact & environment, (4) Company performance, (5) Personal financial rewards, which load substantially on the first second order factor ‘Success’ </li></ul><ul><li>Hypothesis 2. </li></ul><ul><li>Entrepreneurial Subjective Success Scale is reliable, that is, five subscales and the whole scale are internally consistent </li></ul><ul><li>Hypothesis 3. </li></ul><ul><li>Validity of Entrepreneurial Subjective Success Scale can be supported, that is, there are meaningful relationships between the score on the scale and other variables: work satisfaction, life satisfaction, vital exhaustion, objective company success (e.g., sales). </li></ul>Study 2: Hypotheses
    8. 8. <ul><li>Sample (N=184) </li></ul><ul><li>E ntrepreneurs = “(…) owns and manages the firm on the on the daily base” (Rauch, Frese, 2000) </li></ul><ul><li>East Germany ( 35.32% ), West Germany (60.86%), others (3.82%) </li></ul><ul><li>Gender: 75% males, 25% females </li></ul><ul><li>Age: M=45 (SD= 9.90) </li></ul><ul><li>Company age: M=23 (SD= 30.52) </li></ul><ul><li>Employees’ number: M= 22 (SD=43) </li></ul>Study 2: Sample acquisition & characteristics
    9. 9. <ul><li>Importance x Achievement of success criteria </li></ul><ul><li>Exploratory & Confirmatory factor analyses </li></ul><ul><li>Development of nomological network of relationships </li></ul><ul><li>(multiple hierarchical regression analyses) </li></ul>Study 2: Methods & Procedures Importance Achievement 5. Success dimensions Not at all Very Not at all Very well Items 1 2 3 4 5 1 2 3 4 5
    10. 10. Hypothesis 1: Development of scale measuring the Perception of Entrepreneurial Success Criteria Study 2: Results. Hypothesis 1,2. Construct Validity & Scale Reliability . 74 7 5. Personal fulfillment . 87 5 1. Company performance . 87 5 2. Workplace relations . 70 4 3. C ommunity impact . 71 3 4. Personal financial rewards Factors of the Importance of success criteria Items α Total Scale 24 . 88 Model Fit (N=184) CMIN/DF p CFI RMSEA Accepted model 1.69 p<.001 .90 .06
    11. 11. <ul><li>Subjective Entreprneurial Success is related to: </li></ul><ul><li>(+) Work Satisfaction (ß= .32, p<.001) </li></ul><ul><li>(+) Life Satisfaction (ß= .31, p<.001) </li></ul><ul><li>(+) Company sales (ß= .24, p<.001) </li></ul><ul><li>(-) Vital Exhaustion (ß= -.22, p<.001) </li></ul><ul><li>Control variables </li></ul><ul><li>Industry sector, company age, number of employees </li></ul><ul><li>- Age of an entrepreneur, gender, education </li></ul>Study 2: Results. Hypothesis 3. Multiple hierarchical regression analyses
    12. 12. <ul><li>Short, economic and reliable screening instrument for entrepreneurs themselves that provides a well basis for specific trainings and coaching </li></ul><ul><li>Awareness of how health relates to achievement of important goals (negative consequences when personally important criteria are not achieved) </li></ul><ul><li>There is a need for further scale refinement, especially subscales Community Impact and Personal Financial Rewards </li></ul><ul><li>Investigation of the role of personal resources e.g., self-efficacy in achievement of important success criteria </li></ul><ul><li>Measurement of relation between ‘give up’ intention and Entrepreneurial Subjective Success </li></ul>Implications for researchers Implications for practitioners
    13. 13. THANK YOU! Faculty of Mathematics and Natural Sciences Institute for Work, Social and Organizational Psychology [email_address] [email_address] [email_address]  

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