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Unraveling entrepreneurial comebacks: the curvilinear relationship between entrepreneurial failure and reentry intention.

Unraveling entrepreneurial comebacks: the curvilinear relationship between entrepreneurial failure and reentry intention.

Authors :
Fu, Hui
Xu, Min
Zhang, Shaoshuai
Yang, Hui
Wei, Yuan
Source :
Current Psychology; Sep2024, Vol. 43 Issue 36, p28901-28918, 18p
Publication Year :
2024

Abstract

Despite the powerful benefits of entrepreneurial failure experience with regard to experiential learning and future venture performance, our understanding of how failure experience impacts entrepreneurs' decision to reenter entrepreneurship while taking advantage of the lessons that they have learned from their previous entrepreneurial endeavors remains limited. While some studies have highlighted the potential of entrepreneurial failure experience to stimulate reentry intention, other researchers have argued that failure experience can actually decrease subsequent entrepreneurial intention. This study draws on various streams of research on entrepreneurs' responses to business failures at the cognitive, affective, and behavioral levels to propose the existence of a curvilinear relationship between entrepreneurial failure and reentry intention. We employ hierarchical regression to test a series of hypotheses by reference to a sample of 379 entrepreneurs who had experienced failure in their recent business ventures. The results reveal that the degree of failure exhibits an inverted U-shaped relationship with reentry intention. Furthermore, we find that the effect of entrepreneurial failure on reentry intention is mediated by entrepreneurs' learning from failure and that entrepreneurial passion moderates the effects of entrepreneurial failure on both learning from failure and reentry intention. This article helps explain the distinctive effects of failure experience on reentry intention and provides empirical evidence that can facilitate the development of tailor-made support programs that can help previously failed entrepreneurs address the challenges that they encounter during the process of reentry into entrepreneurship. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
10461310
Volume :
43
Issue :
36
Database :
Complementary Index
Journal :
Current Psychology
Publication Type :
Academic Journal
Accession number :
179872932
Full Text :
https://doi.org/10.1007/s12144-024-06511-6