The Influence of Prior Experience on Innovativeness and Development Decisions of Serial Entrepreneurs

Abstract

Purpose: The aim of the paper is to examine the effects of prior entrepreneurial experience (failure or success) in relation to innovativeness and development priorities in subsequent business ventures undertaken by serial entrepreneurs. Design/Methodology/Approach: The study was conducted using the CATI technique on a sample of 400 micro and small serial entrepreneurs operating in Poland. The chi-square test of independence and Fisher's exact test were used to evaluate the research hypotheses. Findings: The conducted study enhances knowledge on how the nature of prior experience affects the innovativeness of subsequent business ventures as well as the development orientation of serial entrepreneurs. The research indicates that serial entrepreneurs with positive experience are more oriented towards the development of their entrepreneurial ventures, both in the current business activity and over the three subsequent years. Practical implications: The impact of prior experience on innovativeness has been demonstrated only in certain types of innovation (product and marketing innovations). Entrepreneurs with positive prior experience have shown a greater ability to successfully innovate in these two areas. Originality value: The results of the study suggest that the potential cognitive benefits derived from experienced failures can be neutralised by their demotivating consequences.