New ventures are expected to continuously add new jobs and managerial positions to meet the expanding demands of scaling. However, the rapid pace and inherent uncertainty of scaling often lead founders of new ventures to rely on heuristics when making these critical hiring and managerial appointment decisions. By integrating research on scaling, cognition in decision-making, and gender stereotypes with literature on HR practices, we argue that such heuristics can exacerbate reliance on gender stereotypes rather than the actual competencies of potential candidates. Using matched employer-employee census data covering all new ventures established and led by solo male founders in Sweden between 2004 and 2018, we find that scaling decreases the likelihood of hiring females for job positions and appointing females to managerial positions. However, the founder's HR education mitigates these negative effects on both female hiring and managerial appointments, while the founder's HR experience only mitigates the negative effects on female hiring decisions. We also tease out the invoked mechanisms, conduct post hoc tests, and run an extensive number of robustness tests.

Entrepreneurship is often perceived as a driving force for employment, innovation, and knowledge creation and is linked to poverty alleviation and economic growth. While entrepreneurship is often seen as a pathway for economic development and societal welfare, it does not consistently deliver the expected outcomes and, in certain instances, may exacerbate poverty, impede development, and present challenges to societal well-being and equality. This paradox within entrepreneurship emphasizes the necessity of exploring the negative (dark) aspects pertaining to entrepreneurship. Neglecting these negative aspects can lead to an incomplete understanding of entrepreneurship. Accordingly, this dissertation challenges the conventional positive view of entrepreneurship by (1) investigating some negative (i.e., dark) aspects of independent entrepreneurship, family entrepreneurship, and corporate entrepreneurship and (2) what might potentially mitigate these negative aspects. This is essential for achieving a balanced and comprehensive understanding of entrepreneurship’s role in the economy and society at large.

I draw on the theory of entrepreneurial allocation, which posits that entrepreneurship can be productive, unproductive, or destructive, as the main theoretical perspective of this dissertation. This dissertation includes three empirical papers, each focusing on a distinct type of ownership: owner-manager ownership (independent entrepreneurship), family ownership (family entrepreneurship), and external investor ownership (corporate entrepreneurship). Together, they offer different insights into the potential negative aspects pertaining to entrepreneurship. Each paper draws on different theoretical perspectives and aligns with particular Sustainable Development Goals (SDGs).

In paper 1, we draw on the scale-up, firm growth, and well-being literature, taking an employee perspective to examine the impact of scaling on employee well-being. Using data from 10,908 employees in new Swedish ventures, we find a positive association between scaling and employee burnout, along with a negative association with job satisfaction. This emphasizes that scaling, often associated with a positive view, can also bring challenges to employee well-being. Meanwhile, we show that employees with managerial roles and prior new venture experience are two groups of employees who are less likely to experience the negative consequences of scaling. Paper 2 investigates how family dynamics (the upbringing environment) within entrepreneurial families can influence offspring career choices. In this paper, we draw on the birth order literature, which adopts an evolutionary theory perspective, to suggest that offspring are exposed to a different upbringing environment due to the unequal distribution of parental resources, potentially affecting their personality and behaviors and thus resulting in unequal career opportunities. In this paper, we use data comprising 205,247 offspring residents in Sweden to show that later-born offspring, though more likely to join the parent’s business, often have a higher tendency to leave compared to their early-born siblings. However, these later-borns can be particularly advantageous in competitive or challenging business situations. In an additional analysis, we show that earlier-born offspring are more inclined toward independent entrepreneurship. Lastly, paper 3 focuses on the negative aspects pertaining to corporate entrepreneurship. Drawing on agency theory, paper 3 shows that institutional investors (e.g., investment banks, insurance companies, etc.), while they are usually viewed positively because of their known sophisticated investment strategies and long-term horizons, induce negative effects and have a potential dark side on corporate entrepreneurs. Specifically, I argue that the extant literature views institutional investors as a homogenous group in terms of their innovation preferences. This oversimplified view overlooks the possible variations within these institutional investors. Following an empirics-first (EF) approach, I segment institutional investors based on their innovation preferences, using portfolio data and historical trading information. This analysis identifies three distinct segments: innovation-friendly, innovation-unfriendly, and innovation-investment-oriented. Using a sample of 6,438 U.S. publicly traded firms, I find that firms predominantly owned by innovation-unfriendly institutional investors experience a decrease in innovation productivity and overall firm value compared to those dominated by innovation-friendly investors. Moreover, I show that firms can strategically position themselves to attract innovation-friendly institutional investors in order to mitigate the negative effects enacted by innovation-unfriendly investors.

This dissertation offers several contributions to the field of entrepreneurship. First, it contributes to the potential (social) costs of entrepreneurship by investigating some negative aspects pertaining to independent, family, and corporate entrepreneurship. Second, it adds to the ongoing discussion on how to mitigate these negative aspects. Third, this dissertation contributes to the theory of entrepreneurial allocation by revealing that beyond traditional institutional actors like governments, there are other influential forces, suh as the entrepreneur, entrepreneurial firm, and institutional investors, that can direct entrepreneurial activities towards productive, unproductive, or destructive paths. This dissertation provides implications for policymaking relevant to four specific Sustainable Development Goals: SDG 3 (promoting well-being), SDG 8 (fostering a decent work environment), SDG 10 (addressing inequalities), and SDG 9 (enhancing innovation). It also has implications for practitioners such as entrepreneurs and their followers (i.e., employees).

Although academic interest in organizational scaling is growing, extant research has focused primarily on the antecedents and processes, neglecting how employees experience scaling. Drawing on the scale-up, firm growth, and well-being literature, we take an employee perspective to examine the impact of scaling on employee burnout and job satisfaction. Using a sample of 10,908 new venture employees in Sweden, we show that scaling is positively associated with employee burnout, and negatively with job satisfaction. We also show that the link between scaling, burnout, and job satisfaction depends on whether the employee is in a managerial position or has prior new venture experience.

Intermittent exporting (repeatedly exiting and reentering foreign markets) is often associated with the initial stages of internationalization. However, some small and medium-sized enterprises (SMEs), including family firms, pursue an intermittent exporting strategy beyond the initial stages. Drawing on a refinement of the behavioral agency model (BAM) and real options reasoning, we theorize that a high level of family involvement in SMEs is positively associated with intermittent exporting. We also argue that this relationship is moderated by Chief Executive Officers (CEOs) and board members with a foreign background. We test our hypotheses using a unique longitudinal dataset of Swedish SMEs in the manufacturing and retail industries.

Building on a socio-emotional wealth lens and gender role theory, we examine gender inequality between siblings in the appointment to the CEO position in family businesses. We also study the impact on firm performance of the appointment of a daughter or a son when they take over the CEO position. Our empirical findings support the argument that daughters are less likely than sons to be appointed to the CEO position. However, this effect is weaker in family firms where the mother holds the CEO position. The difference-in-difference approach shows that family firms where a daughter takes over as CEO outperform family firms where a son takes over. Our findings reveal an important but hitherto not studied gendered dimension of the succession in family firms-sons are favored, but daughters do better. This way our study offers a more nuanced view of the implications of within family CEO succession in family businesses which is important for both research and practice.

Purpose: The purpose of this paper is to contribute to the entrepreneurial marketing (EM) paradigm by empirically investigating the relationship between intra-organizational environment, EM intensity (EMI) and organizational performance in an emerging market context. Specifically, the paper identifies the elements of the intra-organizational environment that enhances EMI and also examines the impact of EMI on organizational performance.

Design/methodology/approach: The data were collected from large-sized companies in Egypt. Data were analyzed by using path analysis on Smart-PLS.

Findings: The findings suggest that the characteristics of the intra-organizational environment that support developing and increasing EMI in large-sized companies in emerging markets are cooperative competency, deep locus of planning and institutional support. Also, it was found that the long planning horizon hinders EMI. Finally, it was found that EMI is positively related to organizational performance and competitive advantage.

Practical implications: The study provides guidelines for managers of large-sized organizations, especially in emerging economies, on how to develop the intra-organizational environment to enhance EMI.

Originality/value: The study of EMI received little or no attention in previous research. Also, there is a paucity of empirical research on the impact of the intra-organizational environment on EMI and also on the impact of EMI on the organizational performance of large-sized companies in emerging markets. Therefore, the results of this research are a step toward filling these gaps.

Purpose: This paper aims to identify the intra-organizational environment factors that affect entrepreneurial orientation (EO) and examine the mediating role of market orientation (MO) in the relationship between and organizational performance.

Design/methodology/approach: The study is conducted in a less-researched area, Egypt. Data were collected using a survey from 120 large-sized manufacturing firms working in seven industries: engineering and home appliances, communication and information technology (IT), food and beverage, chemicals, furniture and decoration, clothing and smoking. The research framework was examined using partial least square approach of structural equation modeling (PLS-SEM).

Findings: The findings indicate that the intra-organizational environment factors that affect entrepreneurial orientation practices are deep locus of planning, planning flexibility, planning horizon, integration and organizational support. Also, the results show that MO mediates the relationship between entrepreneurial orientation and performance.

Practical implications: The findings provide insights about how to manage the intra-organizational environment of the firm and how to configure strategic capabilities, i.e. entrepreneurial orientation and MO, to enhance the organization’s performance.

Originality/value: This paper provides a holistic approach that identifies the intra-organization environmental factors necessary to create an organizational culture that facilitates and encourages entrepreneurial orientation and MO, as well as examine the role of MO in the relationship between entrepreneurial orientation and the organizational performance.