The influence of coping strategies on new venture performance

This study analyzes entrepreneurs' coping strategies to manage stakeholders' expectations. We develop and test four coping strategies (structural role redefinition, personal role redefinition, reactive role behavior and passive role behavior) to assess influence on new venture performance. The analysis considers potential moderating effects of entrepreneurs' perceived role-related stress. We draw from the general management, role theory, and entrepreneurship literature to develop hypotheses, tested using hierarchical regression based on responses from 183 Slovenian entrepreneurs. Results reveal that coping strategies focused on reducing expectations and/or working harder to meet expectations positively affect new venture performance. However, entrepreneurs' focus on suppressing perceived expectations negatively influences new venture performance. Furthermore, entrepreneur's role-related stress moderates the relationship between reactive role behavior and new venture performance. This study provides a better understanding of types of coping strategies available to entrepreneurs and practical consequences for new venture performance. It also explores why some entrepreneurs perform well and why some quit early while others remain and prosper in their role. We acknowledge possible limitations due to sample characteristics and measurement. The study provides practicing and nascent entrepreneurs, support organizations, and policy makers with evidence for use in the design of entrepreneurs' training and competency-building programs.Godkänd; 2007; 20070623 (ysko