The purpose of this study is to analyze entrepreneurs' coping strategies used to face stakeholders' expectations.
The paper draws from the general management, role theory, and entrepreneurship literature to develop hypotheses that are tested by using hierarchical regression techniques on a sample of 183 Slovenian entrepreneurs. The paper develops and tests four coping strategies (structural role redefinition, personal role redefinition, reactive role behavior, and passive role behavior) to assess influence on new venture performance. The analysis examines moderating effects of entrepreneurs' perceived role‐related stress.
Results reveal that coping strategies focused on reducing expectations and/or working harder to meet expectations positively affect new venture performance. However, entrepreneurs' focus on suppressing perceived expectations negatively influences new venture performance. Furthermore, entrepreneurs' role‐related stress moderates the relationship between reactive role behavior and new venture performance.
This study provides a better understanding of types of coping strategies available to entrepreneurs and practical consequences for new venture performance. It also explores why some entrepreneurs perform well and why some may quit early being an entrepreneur while others remain and prosper in their role. Possible study limitations are discussed due to sample characteristics and measurement.
The study results are relevant for practising and nascent entrepreneurs, support organizations, and policy makers since empirical evidence can be used in designing entrepreneurs' training and competency‐building programs.
This study is among the first to illustrate effects on early entrepreneurial performance of coping strategies to meet stakeholders' expectations and, indirectly, entrepreneurs' ability to endure establishing a new venture.
