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THE ROLE OF SOCIAL COHESION ON ENTREPRENEURIAL BEHAVIOR
Sreenivas, Vyas
Sreenivas, Vyas
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Date
2024-08
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Business Administration/Strategic Management
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Sreenivas_temple_0225E_15823.pdf
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http://dx.doi.org/10.34944/dspace/10594
Abstract
The context in which the entrepreneurial process is embedded plays a crucial role in determining its success. While past work has looked at the role of multiple and diverse contextual factors, the focus has been on studying the role of the visible and objective side of the contexts, like the environmental conditions in which the entrepreneurial action takes place. More recent research has recommended expanding our study of context to more invisible and subjective aspects of contexts. In this dissertation, I focus on one such factor: the social cohesion in the environment in which entrepreneurial behavior takes place and its role in the relationship between the drivers of entrepreneurial behavior and its outcomes. I explore cohesion at two levels: 1) within the geographic community where entrepreneurship happens and 2) within the Top Management Team (TMT) in a large organization. In the first chapter, I look at how geographic community-level cohesion arising from norms can impact the ability of a venture with a hybrid mission to raise funds. We find that hybrid entrepreneurs can mitigate the difficulties of fundraising by situating themselves in congruent communities. The second chapter looks at how group-level cohesiveness with the TMT can impact the ability of executive compensation to encourage exploratory innovation at the firm level. We see that the power of stock options in driving executive compensation is higher when the cohesiveness among the members of the team is higher. This dissertation contributes to our understanding of the role of an invisible factor of social cohesion in enabling entrepreneurial behavior.
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