Entrepreneurs’ Improvisational Behavior and Firm Performance: A Study of Dispositional and Environmental Moderators

• Author: Andrew C. Corbett,Robert A. Baron,Keith M. Hmieleski
• Published date: 01 June 2013
• DOI: http://doi.org/10.1002/sej.1143
• Date: 01 June 2013

ENTREPRENEURS’ IMPROVISATIONAL BEHAVIOR

AND FIRM PERFORMANCE: A STUDY OF

DISPOSITIONAL AND ENVIRONMENTAL

MODERATORS

KEITH M. HMIELESKI,1* ANDREW C. CORBETT,2and ROBERT A. BARON3

1M. J. Neeley School of Business, Texas Christian University, Fort Worth, Texas,

U.S.A.

2Arthur M. Blank Center for Entrepreneurship, Babson College, Babson Park,

Massachusetts, U.S.A.

3Spears School of Business, Oklahoma State University, Stillwater, Oklahoma,

U.S.A.

Previous research indicates that improvisation—the deliberate extemporaneous composition

and execution of novel action—is a key form of entrepreneurial behavior. It has been argued,

however, that entrepreneurs’ improvisational behavior does not necessarily result in perfor-

mance gains for their firms. Instead, a contingency perspective suggests that the effectiveness

of entrepreneurs’improvisational behavior depends on key moderating variables. Drawing on

this framework, the current study uses a national (U.S.) random sample of new ventures to

examine the interactive effects on firm performance of entrepreneurs’improvisational behavior

with key dispositional and environmental variables. Consistent with predictions, findings

indicated that within the context of dynamic environments, the relationship between improvi-

sational behavior and firm performance was significantly more negative for entrepreneurswho

were high in optimism than it was for those who were moderate in optimism. In contrast, within

the context of stable environments, results demonstrated marginally significant evidence that

entrepreneurs’improvisational behavior was more positively associated with firm performance

for entrepreneurs who were high in optimism than it was for those who were moderate in

optimism. Overall, results suggest that improvisational behavior can be an effective form of

entrepreneurial action within rapidly and unpredictably shifting environments, but only when

coupled with realistic levels of optimism. Copyright © 2012 Strategic Management Society.

INTRODUCTION

‘Sometimes it works, sometimes it fails, but that’s

what we face when we’re dealing with

improvisation.’

–Jan Garbarek

As the new venture development process unfolds,

entrepreneurs typically need to change course from

their original plans, remain flexible, and continually

evolve their business (Mullins and Komisar, 2009).

As a result, entrepreneurs must be able to formulate

and execute novel strategic decisions in the moment

(i.e., improvise)—so as to capitalize on opportuni-

ties to move their firm in a more promising direction.

Research by Baker, Miner,and Eesley (2003) affirms

that entrepreneurs do indeed spend a significant

amount of time extemporaneously formulating

and executing strategic decisions, using only the

resources available to them in the moment. However,

Keywords: cognition; entrepreneurial action; individual

differences; improvisation; upper echelons; new venture

performance

*Correspondence to: Keith M. Hmieleski, M.J. Neeley School

of Business, TexasChristian University, TCU Box 298530, Fort

Worth, TX 76129, U.S.A. E-mail: k.hmieleski@tcu.edu

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Strategic Entrepreneurship Journal

Strat. Entrepreneurship J., 7: 138–150 (2013)

Published online in Wiley Online Library (wileyonlinelibrary.com). DOI: 10.1002/sej.1143

Copyright © 2013 Strategic Management Society