Spinning an Entrepreneurial Career: Motivation, Attribution & the Development of Organizational Capabilities

Abstract

We inductively examine how the careers of employee entrepreneurs unfold, uncovering the role of motives and attribution for failure. Founders expressing organizational misalignment motives for leaving established organizations engaged in “venture crafting” whereby they actively sought to build well-functioning organizations. They built successful initial ventures and careers. Founders lacking organizational misalignment motives generally founded initial ventures that failed: however, those making internal attributions altered their behaviors and built successful careers; in contrast, founders making external attributions continued founding unsuccessful ventures. These findings suggest that building organizational capabilities––and not merely inheriting capabilities from existing organizations––is a cornerstone of building successful entrepreneurial careers. Our findings are based on detailed career history and archival data on employee entrepreneurs in the disk-drive industry.

Keywords: employee entrepreneurship, motivation, attribution, entrepreneurial careers, organization design

JEL Classification: L26, J24