Are User Entrepreneurs And Hybrid Entrepreneurs Different From Traditional Entrepreneurs

This dissertation investigates how user entrepreneurs and hybrid entrepreneurs are different from other traditional entrepreneurs through three essays. The first essay examines performance difference between user entrepreneurs and non-user entrepreneurs in the context of crowdfunding. My results suggest that user entrepreneurs are more likely to succeed in raising financial capital through crowdfunding than non-user entrepreneurs. In addition, I provide two theoretical mechanisms on why it happens. First mechanism is through entrepreneurial passion. Since user entrepreneurs are motivated intrinsically to start and grow their ventures, which motivation leads to entrepreneurial passion. Thus, crowdfunders are more likely to support entrepreneurs with high passion than those with low passion. Second mechanism is through in-group favoritism. Since user entrepreneurs are also users of the product that they are trying to sell, crowdfunders who are potential users of the product see them as someone who is similar to them. Thus, it leads to in-group favoritism and they are more likely to support entrepreneurs who are similar to them. Overall, these results suggest that signaling the status as user entrepreneurs help then to achieve crowdfunding goals. The second essay investigates the effects of interacting signals using hybrid entrepreneurship phenomenon. I propose that hybrid entrepreneurs who keep their day jobs while starting their new ventures have low commitment to their ventures. Thus, that becomes negative signals to external funders. Therefore, hybrid entrepreneurs are less likely to get funded by external funders than full-time entrepreneurs. However, the negative signal of being a hybrid entrepreneur can be reduced by positive signals of human capital. I found that the negative relationship between hybrid entrepreneurship and initial external funding is mitigated by educational attainment. The results suggest that signals can interact each other and so, this study contributes to signaling theory. While the first two essays focus on raising financial capital, the third essay examines why some entrepreneurs choose to become a hybrid entrepreneurs as compared to becoming full-time entrepreneurs. I find that nascent entrepreneurs with higher educational level and prior entrepreneurial experience are more likely to become hybrid entrepreneurs. Additionally, I find that nascent entrepreneurs with higher educational level have lower commitment to their new ventures and this, in turn, leads to their choice of becoming hybrid entrepreneurs. By using entrepreneurial commitment as a mediator, this study explains a theoretical mechanism on how human capitals influence on entrepreneurial strategy.