Simon C. Parker

• Plummer, L. A.; Parker, S. C.; Reyes, S., 2022, "Regional Path Breaking: The Role of Industry Switching, Industry Diversity, and New Knowledge in New Venture Exit", Entrepreneurship: Theory and Practice, September 46(5): 1231 - 1255.
  Abstract: Regions with spatial concentrations of businesses create conditions that spawn new firms, but also undercut new venture survival. Localized competition puts pressure on new firms to exit. Adding to this pressure to exit is regional path dependence, which limits the ability of firms to respond strategically to hostile local conditions. We investigate the extent to which the pressure to exit created by localized competition is moderated by three “path breaking” factors—new knowledge, industry diversity, and industry switching. We test and find broad support for our hypotheses using data from 355 metropolitan statistical areas in the United States spanning 2002 to 2010.

  Link(s) to publication:

  https://journals.sagepub.com/doi/10.1177/1042258720952288

  http://dx.doi.org/10.1177/1042258720952288

• Parker, S. C.; van Praag, M.; Rosendahl Huber, L.; Sloof, R., (Forthcoming), "Informational Faultlines and Team Performance: A Field Experiment", Journal of Economics Behavior & Organization
  Abstract: Verbal and mathematical reasoning are key cognitive skills which individuals use throughout their lives to create economic value. We argue that individuals undertaking entrepreneurial tasks also draw on these skills, and we study how best these skills should be combined in entrepreneurial teams. To that purpose we conduct a randomized field experiment using data from the BizWorld entrepreneurship education program. Four different types of teams are created which differ in terms of their cognitive skill composition. Our results show that balanced skills are beneficial for a team's venture performance only if it comes from within person skill balance, and that combining team members with different skills in mixed teams does not compensate for a lack of members who individually possess balanced cognitive skills.
• Kim, N. K.; Parker, S. C., 2021, "Entrepreneurial homeworkers", Small Business Economics, October 57(3): 1427 - 1452.
  Abstract: Nearly 40% of British self-employees are homeworkers. Using a large representative sample of the UK longitudinal survey data, we explore the determinants of self-employed homeworking, distinguishing between genders. We reject the notion that homeworking is a transitional entrepreneurial state that the self-employed “grow out of”, while establishing that both employer status and business structure play an important role in predicting which self-employed become homeworkers. Our findings also shed light on two outstanding puzzles in entrepreneurship scholarship: why so few of the self-employed create jobs for others, and why on average the self-employed suffer an earnings penalty compared with employees.

  Link(s) to publication:

  http://dx.doi.org/10.1007/s11187-020-00356-6

• Sewaid, A.; Parker, S. C.; Kaakeh, A., 2021, "Explaining Serial Crowdfunders’ Dynamic Fundraising Performance", JOURNAL OF BUSINESS VENTURING, July 36(4)
  Abstract: Crowdfunding, and research which studies it, has exploded in the last decade. Every year, we learn more about the different types of crowdfunders, including ‘serial crowdfunders’ – people who go on to launch several campaigns in succession. Nearly one-third all of funds on the leading crowdfunding platform Kickstarter are undertaken by serial crowdfunders. We still know relatively little about whether success at raising funds in one crowdfunding campaign improves serial crowdfunders’ success prospects in subsequent campaigns. Answering this research question promises to enhance our understanding of the financing of a sequence of ventures by the same entrepreneur. Prior work has explored multi-stage lending of venture capital-backed projects, and relationship lending between banks and borrowers, but analysis of the financing of multiple distinct projects by serial entrepreneurs scarce. By exploring sequences of fundraising success among serial crowdfunders, we are able to discover whether or not past success leads to future success – a question of keen interest to entrepreneurs and their backers on crowdfunding platforms. To investigate this topic, we gather data on serial crowdfunders from the world’s largest reward-based crowdfunding platform, Kickstarter. Our dataset is comprised of 29,788 serial crowdfunders who launched 75,654 campaigns since Kickstarter’s inception in April, 2009 and up to November, 2016. In total they raised $859 million, which represents 38.5% of the funds raised on Kickstarter during the same period. Our analysis reveals for the first time that amounts raised by serial crowdfunders exhibit a cyclical pattern over time, with above-average funding success being followed by below-average success, which is then followed by above-average success, and so on. Our empirical investigations suggest that effort-based dynamic reputation management can explain this finding. That is, following an over-performing crowdfunding campaign, entrepreneurs can afford to supply somewhat less costly effort to the next campaign without unduly damaging their reputation with backers, resulting in underperformance; but this underperformance stimulates entrepreneurs to exert higher levels of effort next time to restore their reputation, leading to over-performance. Our findings carry several implications for scholarship and practice. For example, our work highlights the importance of crowdfunders’ reputations and reputation management. Thus, if an entrepreneur anticipates wanting to launch a future project about which they are especially passionate, our results recommend they exert higher effort than they might otherwise supply to that project’s predecessor. This would proactively build a positive reputation which would increase the future project’s chances of getting funded. Additionally, our results suggest that serial crowdfunders may want to develop industry-specific knowledge by launching campaigns in the same industry, since changing industry seems to adversely affect their subsequent fundraising performance. We also highlight the role of timely launches of new campaigns, since waiting for longer periods of time between campaigns seems to adversely affect funding outcomes as well. Finally, our results also suggest that crowdfunding platform operators might want to provide additional guidance to crowdfunders beyond their initial campaigns. Instructions helping crowdfunders to maintain their fundraising performance in subsequent campaigns, or how to reverse unfavorable funding outcomes, could also be of considerable practical value.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jbusvent.2021.106124

• Suàrez, J-L.; White, R. E.; Parker, S. C.; Jimenez-Mavillard, A., 2021, "Entrepreneurship bias and the mass media: Evidence from big data", Academy of Management Discoveries, June 7(2): 247 - 265.
  Abstract: Does the mass media promote entrepreneurship? Using big data in combination with a machine learning aided analysis we discover a positive sentiment bias associated with entrepreneurship present in two major English language media outlets – The New York Times and the Financial Times. Over eight hundred thousand excerpts from a 12 and 16-year period were analyzed. Those containing the words ‘entrepreneur’ and ‘founder’ had much more positive sentiment than did excerpts with the words ‘manager’ and ‘executive’. A parallel analysis of the FANG companies (Facebook, Amazon, Netflix and Google) in comparison to a set of older and more established Fortune 500 companies produced similar results. While more work is needed to make the link between media biases and career choice, we believe this media bias promotes entrepreneurship, resulting in lower (average) incomes and higher risks for those engaged in this career path. However, because entrepreneurial activity can create positive externalities in the broader economy this bias, while financially disadvantageous for the average entrepreneur, may be beneficial overall for their society.

  Link(s) to publication:

  http://dx.doi.org/10.5465/amd.2018.0177

• Masucci, M.; Parker, S. C.; Brusoni, S.; Camerani, R., 2021, "How are corporate ventures evaluated and selected?", Technovation
  Abstract: This study provides a fine-grained analysis of the decision-making process and criteria underling the evaluation and selection of nascent corporate ventures. By integrating a small sample case-based analysis and the examination of a longitudinal dataset comprising 14 years of archival data, it explores the selection and funding process of early-stage entrepreneurial initiatives supported by the internal corporate venture unit of a major energy company. Its findings extend prior conceptualizations of the internal venture selection process, uncovering differences in the relevance of the criteria used to evaluate ventures at different stages.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.technovation.2020.102126

• Gamble, E.; Parker, S. C.; Moroz, P., 2020, "Measuring the Integration of Social and Environmental Missions in Hybrid Organizations", Journal of Business Ethics, November 167(2): 271 - 284.
  Abstract: This paper introduces a new typology and associated measure of social and environmental mission integration (SEMI) by conceptually framing a feature of hybrid organizations—the degree of integration of their revenue model and social–environmental mission. The SEMI measure is illustrated using a hand-collected sample of 256 North American Certified B Corporations. We explore the heterogeneity of SEMI scores by identifying external-facing correlates and demonstrate non-congruence with Certified B Corporation’s audit results. Overall, our findings advance existing knowledge of these hybrid organizations and how they balance their social–environmental missions with their economic objectives.

  Link(s) to publication:

  http://dx.doi.org/10.1007/s10551-019-04146-3

• Rosendahl Huber, L.; Sloof, R.; Van Praag, M.; Parker, S. C., 2020, "Diverse cognitive skills and team performance: A field experiment based on an entrepreneurship education program", Journal of Economic Behavior and Organization, September 177: 569 - 588.
  Abstract: Verbal and mathematical reasoning are key cognitive skills which individuals use throughout their lives to create economic value. We argue that individuals undertaking entrepreneurial tasks also draw on these skills, and we study how best these skills should be combined in entrepreneurial teams. To that purpose we conduct a randomized field experiment using data from the BizWorld entrepreneurship education program. Four different types of teams are created which differ in terms of their cognitive skill composition. Our results show that balanced skills are beneficial for a team's venture performance only if it comes from within-person skill balance, and that combining team members with different skills in mixed teams does not compensate for a lack of members who individually possess balanced cognitive skills.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jebo.2020.06.030

• Parker, S. C.; Gamble, E.; Moroz, P. W.; Branzei, O., 2019, "The Impact of B Lab Certification on Firm Growth", Academy of Management Discoveries, March 5(1): 55 - 77.
  Abstract: We investigate the impact of B Lab certification – a rapidly growing type of third-party certification for organizations with social and/or environmental missions – on the short-term growth rates of certifying firms. To date, this kind of certification has generally been regarded as an unalloyed good for the organizations that adopt it; but prior research has overlooked the possibility that it may also entail attentional deficits and internal organizational disruption, leading to a short-term growth slowdown. Our study reports results based on a novel, hand-collected dataset of 249 mainly privately held North American Certified B Corporations over 2011-2014. Our results, derived from a difference-in-difference framework, and augmented with insights from a set of in-depth interviews, identifies a short-term growth slowdown arising from certification, which is more pronounced for the smallest and youngest firms. These findings highlight the need for management theorists to pay greater attention to internal re-organization costs as well as external benefits flowing from B Lab certification; they also carry important practical implications for organizations contemplating certification.

  Link(s) to publication:

  https://journals.aom.org/doi/10.5465/amd.2017.0068

  http://dx.doi.org/10.5465/amd.2017.0068

• Branzei, O.; Parker, S. C.; Moroz, P. W.; Gamble, E., 2018, "Going pro-social: Extending the individual-venture nexus to the collective level", Journal of Business Venturing, September 33(5): 551 - 565.
  Abstract: The aim of this Special Issue is to demonstrate how drawing on multidisciplinary insights from the literature on prosociality can broaden the individual-opportunity nexus to make room for a variety of actors. Five feature articles emphasize the collective level of the analysis, underscoring the social distance between the entrepreneurs and the different communities they serve. Leveraging construal level theory, we abductively derive an organizing framework that helps us articulate how stretching or compressing social distance can transform initial opportunities into occasions for serving the greater good. We identify two distinct mechanisms present in all five empirical studies that explain how the needs and hopes of many others may add creativity, consistency and connectivity to one's venture. We also connect these abductive insights with the two editorials that follow this introduction and nudge our collective attention towards the research opportunities awaiting our academic community once we begin to relax the egocentric reference point that, until recently, has defined the discipline of entrepreneurship.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jbusvent.2018.06.007

• Parker, S. C., 2018, "Entrepreneurship and economic theory", Oxford Review of Economic Policy, September 34(4): 540 - 564.
  Abstract: This article discusses economic theories of entrepreneurship, drawing principally on work conducted in labour economics, microeconomics, macroeconomics, and financial economics. The article explains how incentives and constraints of various kinds affect occupational choices and entrepreneurial innovation, as well as how entrepreneurial decisions affect macroeconomic performance. Implications for public policy are drawn.

  Link(s) to publication:

  http://dx.doi.org/10.1093/oxrep/gry013

• Moroz, P. W.; Branzei, O.; Parker, S. C.; Gamble, E., 2018, "Imprinting with purpose: new pro-social opportunities and B Corp certification", Journal of Business Venturing, March 33(2): 117 - 129.
  Abstract: Certified B Corporations are for profit ventures that have chosen to embrace third party voluntary social and environmental audits conducted by B Lab: a highly entrepreneurial non-profit enterprise in its own right. In this Special Issue, we focus on the lifecycle of Certified B Corporations and its relevance to the entrepreneurial journey. To do so we argue for and highlight research at the intersection of prosocial certification and opportunities to surface patterns and processes, which we believe add significant value to ongoing conversations in the field of entrepreneurship while also charting new pathways. We develop a framework of prosocial venturing and certification that pinpoints several elements of likely consequence and curiosity to providing new insights on the entrepreneurial process that hint at the importance of opportunity, identity metamorphosis and sedimentation/superseding work. In so doing, we offer our interpretation of how the exploration of prosociality may add to conversations on how and why ventures resist or embrace change over time, to what effect and ultimately, how opportunities may be reBorn.

  Link(s) to publication:

  http://dx.doi.org/10.1016/j.jbusvent.2018.01.003

• Hoogendoorn, S.; Parker, S. C.; van Praag, M., 2017, "Smart or diverse start-up teams? Evidence from a field experiment", Organization Science, November 28(6): 1010 - 1028.
  Abstract: © 2017 INFORMS. This paper explores the relationship between cognitive abilities and team performance in a start-up setting. We argue that performance in this setting hinges on three tasks: opportunity recognition, problem solving, and implementation. We theorize that cognitive ability at the individual level has a positive effect on opportunity recognition and problem solving but no clear effect on implementation. Within teams, a combination of higher and lower cognitive ability levels may be productive insofar as some individuals can be assigned to mundane tasks (that are often involved in implementation), while others can be assigned to tasks that impose a greater cognitive load (problem solving or opportunity recognition). We present the results of a field experiment in which 573 students in 49 teams started up and managed real companies.We ensured exogenous variation in-otherwise random-team composition by assigning students to teams based on their measured cognitive abilities. Each team performed a variety of tasks, often involving complex decision making. The key result of the experiment is that the performance of start-up teams first increases and then decreases with ability dispersion. Strikingly, average team ability is not related to team performance.

  Link(s) to publication:

  http://dx.doi.org/10.1287/orsc.2017.1158

• van Witteloostuijn, A.; Dikova, D.; Parker, S. C., 2017, "Capability, environment and internationalization fit, and financial and marketing performance of MNEs’ foreign subsidiaries: An abductive contingency approach", Cross Cultural and Strategic Management, September 24(3): 405 - 435.
  Abstract: Purpose br Extant work in international business (IB) involves a partial contingency-theoretic perspective: a holistic view of the impact of bundles of contingencies on an outcome variable is missing. The purpose of this paper is to adopt a contingency approach to study multinational enterprise (MNE) subsidiary performance in the appropriate context of European transition economies at the beginning of the current millennium. brbr Designmethodologyapproach br Methodologically, the authors introduce abduction as a line of inquiry into IB and management to develop new theoretical insights, and apply the novel empirical general interaction method to estimate bundle effects. In so doing, the authors contribute to the further development of a theoretical and empirical toolkit to revitalize holistic, or configurational, quantitative research in IB and management. brbr Findings br The authors find that capability fit is a necessary condition for high MNE subsidiary marketing performance, whilst environment fit is particularly critical for high MNE subsidiary financial performance. brbr Research limitationsimplications br A key limitation is that this is a cross-section study. brbr Practical implications br This study offers insights as to subsidiary fit into Eastern Europe, indicating fitting entry and establishment modes. brbr Originalityvalue br This paper offers a novel holistic approach to IB, both in terms of theoretical and empirical methodology.

  Link(s) to publication:

  http://dx.doi.org/10.1108/CCSM-01-2016-0003

• Hsiao, C.; Parker, S. C.; van Praag, M., 2017, "Risk, Balanced Skills and Entrepreneurship", Small Business Economics, February 48(2): 287 - 302.
  Abstract: This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not having taken this possible linkage into account, previous research has underestimated the impacts both of risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provides evidence which supports this contention. It thereby raises the possibility that even risk-averse people might be suited to entrepreneurship and it may also help explain why prior research has generated mixed evidence about the effects of risk aversion on selection into entrepreneurship.

  Link(s) to publication:

  http://dx.doi.org/10.1007/s11187-016-9785-y

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