Does striking a balance between dynamic and enduring grit lead to new venture performance?

Abstract

Purpose – New ventures in emerging economies like Pakistan encounter high failure rates due to volatility and limited resources. Grit – the perseverance in overcoming challenges while striving toward long-term goals – has been associated with enhanced venture performance. However, the absence of a validated firm-level grit measure limits our understanding of its antecedents and associated with on financial and non-financial outcomes. Consequently, this research aims to develop a firm-level grit scale and investigate its relationship with the performance of new ventures. Design/methodology/approach – This collaborative study aims to bridge the measurement gap in organizational grit by developing and validating a novel firm-level grit scale. It employed a rigorous five-step process to construct an 11-item instrument that captures grit’s dynamic and enduring dimensions. The final step utilized Hayes’ PROCESS mediation analysis in SPSS to test the study’s hypotheses. Findings – This study of 285 new ventures in Pakistan indicates that dynamic and enduring grit mediates the relationship among strategic orientation, bricolage and new venture performance. This equilibrium allows ventures to tackle immediate challenges while also pursuing long-term objectives. The findings show the significance of grit in aligning short-term adaptability with a long-term strategy, highlighting the necessity of strategic flexibility to mitigate the risks associated with excessive grit. Practical implications – The findings suggest that new ventures, entrepreneurs and business incubators use grit measurement tools to improve business outcomes and innovation, although excessive grit may cause missed opportunities. Originality/value – This study deepens the understanding of firm-level grit by harmonizing endurance with adaptability. It enriches the fields of entrepreneurship by conceptualizing grit as a resource-dependent, context-sensitive construct while offering actionable guidance for optimizing gritty behaviors to improve venture sustainability and performance.