Reversal of Fortune: Opportunity Cost and Endowment Effects Along Stages of Entrepreneurship

Mickiewicz, T.M., Nyakudya, F.W. ORCID: 0000-0003-3482-3614, Theodorakopoulos, N. and Hart, M., 2014. Reversal of Fortune: Opportunity Cost and Endowment Effects Along Stages of Entrepreneurship. Academy of Management Proceedings, 2014 (1), p. 15256. ISSN 0065-0668

PubSub6939_Nyakudya.pdf - Published version

Download (675kB) | Preview


In this paper, the start-up process is split conceptually into four entrepreneurial stages considering entrepreneurship, intending to start a new business in the next three years, nascent entrepreneurship and newly established business. We investigate the determinants of all of these stages jointly, using a multinomial logit model which allows the effects of resources and capabilities to vary across these different entrepreneurial stages. We employ a pooled Global Entrepreneurship Monitor database for the years 2006 to 2009, containing 8,269 usable observations of the East Midlands region in the United Kingdom, controlling for the local environmental effects. Our results show that the role of human capital, experience and local context varies along the different stages of the entrepreneurial process. In the early stages the negative (opportunity cost) effect of resources dominates, yet it tends to reverse in advanced stages, where the positive (endowment) effect becomes stronger.

Item Type: Journal article
Publication Title: Academy of Management Proceedings
Creators: Mickiewicz, T.M., Nyakudya, F.W., Theodorakopoulos, N. and Hart, M.
Publisher: Academy of Management
Date: January 2014
Volume: 2014
Number: 1
ISSN: 0065-0668
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 10 Jan 2017 12:14
Last Modified: 09 Jun 2017 14:10

Actions (login required)

Edit View Edit View


Views per month over past year


Downloads per month over past year