Birds of a feather don't always flock together: Identity management in entrepreneurship

Available online at www.sciencedirect.com

Journal of Business Venturing 24 (2009) 316 – 337

Birds of a feather don't always flock together: Identity management in entrepreneurship ☆ Dean Shepherd a,⁎,1 , J. Michael Haynie b a b

Kelley School of Business, Indiana University, 1309 East Tenth Street, Bloomington, IN 47405-1701, United States Department of Entrepreneurship and Emerging Enterprises, Whitman School of Management, Syracuse University, 721 University Avenue, United States Received 1 December 2006; received in revised form 1 October 2007; accepted 1 October 2007

Abstract The act of entrepreneurship typically confers ‘distinctiveness’. However, in satisfying the psychological need to be distinct, entrepreneurs may at the same time foster a psychological deficit in feelings of belonging, leading to diminished psychological wellbeing. Investigating this potential trade-off through the lens of Optimal Distinctiveness Theory, we develop and model strategies appropriate for managing multiple identities, offering an explanation for why some entrepreneurs are able to balance distinctiveness and belonging, fostering psychological well-being, while others are unable to do so and experience entrepreneurship's ‘dark-side’. Published by Elsevier Inc. Keywords: Entrepreneur; Self-identity; Distinctiveness Theory; Entrepreneurial identity

1. Executive summary Research suggests that individuals act to fulfill a psychological need to be perceived as somehow different and unique (Brewer, 1991). This need represents a fundamental human motive, and is central to the psychological well-being of all people (Snyder and Fromkin, 1980). Distinction provides the ‘self’ a sense of differentiation from others that is important in the creation and maintenance of one’s identity (Brewer, 1991), and is central to an individual’s emotional well-being (Singelis et al., 1999) and physical health (Markus and Kitayama, 1991). In this article we investigate the notion of distinctiveness in the context of the entrepreneur. The idea that entrepreneurs are somehow distinct and different represents a central theme in the entrepreneurship literature (e.g., Baker and Nelson, 2005), and to identify oneself as an entrepreneur provides individuals with the opportunity to satisfy their need for distinctiveness. That said, this research is positioned to highlight the potential

☆ The authors would like to thank Kristin Byron, Susan Coombes, Charles Murnieks, Venkat and two anonymous reviewers, the attendees of the “Entrepreneurship and Emerging Enterprises Working Paper Series” at the Whitman School of Management, Syracuse University and the working paper series at the Australian Graduate School of Entrepreneurship, Swinburne University for their comments on earlier versions of this article. ⁎ Corresponding author. Tel.: +1 812 856 5220. E-mail addresses: [email protected] (D. Shepherd), [email protected] (J.M. Haynie). 1 Tel.: +1 315 443 3392.

0883-9026/$ - see front matter. Published by Elsevier Inc. doi:10.1016/j.jbusvent.2007.10.005

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

317

negative consequences of identity distinctiveness, suggesting that while creating and growing a business, for example, may satisfy the psychological need to be distinctive, it may do so at the expense of another basic psychological need, the need to feel belonging (Tajfel and Turner, 1986; Turner, 1985). Generally conceptualized as a competing psychological construct to distinctiveness (Brewer, 1991), belonging results in feelings of inclusion; a lack of belonging can result in feelings of isolation (Brewer, 1991), which can also negatively impact physical and psychological health (Leonardelli and Brewer, 2001). We suggest that while an entrepreneurial role may satisfy individuals’ needs for distinctiveness, it often does so at the expense of belonging, and, ultimately, psychological well-being. We represent this unsatisfied need for belonging – and its negative consequences – as a potential ‘dark-side’ of entrepreneurship. We employ Optimal Distinctiveness Theory as a lens through which to investigate how and when entrepreneurs are most vulnerable to the dark-side, and the actions that they can take to mitigate these vulnerabilities. We propose a framework appropriate for managing multiple, micro-identities (Ashforth et al., 2000; Pratt and Foreman, 2000) in an effort to detail the strategies entrepreneurs may employ to facilitate an ‘optimal’ balance between realizing the need to belong, and the need to be distinct, in the context of identity management. Our model makes contributions to the entrepreneurship and identity literatures, and also has applications for both the teaching and practice of entrepreneurship. For example, the entrepreneurship literature has focused almost exclusively on the rewards from entrepreneurial action. We acknowledge these benefits, but also offer a possible psychological ‘dark-side’ of entrepreneurship – an unsatisfied need to belong – as a counterweight. We present a framework to offer insight into strategies that entrepreneurs can use to manage boundaries and realize synergies between multiple identities in order to optimize feelings of distinctiveness and belonging, and thus promote psychological well-being. We also explore the assumption implied in the extant entrepreneurship literature that, in an entrepreneurial context, the entrepreneur needs to be distinct because the venture requires distinctiveness given a competitive market environment and the identities of the entrepreneur and his or her venture are intertwined. Specifically, we investigate the extent to which the entrepreneur’s identity can be separated from the venture in such a way that he or she can realize high distinctiveness while engaged in the role of entrepreneur, and at the same time satisfy needs to belong. In our treatment of entrepreneurship, this article represents a departure from convention. Our focus here is to better understand how and under what conditions entrepreneurship may be destructive and dysfunctional for the entrepreneur in the hope that as scholars move to examine the entrepreneur in entrepreneurship the ongoing conversation acknowledges and embraces the fact that there are potential psychological downsides to entrepreneurship and that, through management, these downsides can be minimized or eliminated. 2. Introduction ‘If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away.’ — Henry David Thoreau Research suggests that individuals act to fulfill a psychological need to be perceived as somehow different and unique (Brewer, 1991). This need represents a fundamental human motive, and is central to the psychological wellbeing of all people (Snyder and Fromkin, 1980). Distinction provides the ‘self’ a sense of differentiation from others that is important in the creation and maintenance of one's identity (Brewer, 1991), and is central to an individual's emotional well-being (Singelis et al., 1999), and physical health (Markus and Kitayama, 1991). In this article we investigate the notion of distinctiveness in the context of the entrepreneur. The idea that entrepreneurs are somehow distinct as individuals represents a central theme in the entrepreneurship literature (e.g., Baker and Nelson, 2005), and to identify as an entrepreneur provides individuals with the opportunity to satisfy the need for identity distinctiveness. That said, this research is positioned to highlight the potential negative consequences of identity distinctiveness, suggesting that while creating and growing a business, for example, may satisfy the psychological need to be distinctive, it may do so at the expense of another basic psychological need, the need to belong (Tajfel and Turner, 1986). Generally conceptualized as a competing psychological construct to distinctiveness (Brewer, 1991), belonging results in feelings of inclusion. A lack of belonging can result in feelings of isolation (Brewer, 1991), which can in turn negatively impact physical and psychological health (Leonardelli and Brewer, 2001). We suggest that while an entrepreneurial role may satisfy individuals' needs for distinctiveness, it often does so at the expense of belonging and ultimately,

318

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

psychological well-being. We represent this unsatisfied need for belonging – and its negative consequences – as a potential ‘dark-side’ of entrepreneurship. In this research we employ Optimal Distinctiveness Theory as a lens through which to investigate how and when entrepreneurs are most vulnerable to this dark-side of entrepreneurship, and suggest actions that they can take to mitigate these vulnerabilities. We propose a framework appropriate for managing multiple, micro-identities (Ashforth et al., 2000; Pratt and Foreman, 2000), in an effort to detail the strategies entrepreneurs may employ to facilitate an ‘optimal’ balance between realizing the need to belong, and the need to be distinct, in the context of identity management. Our model makes contributions to the entrepreneurship and identity literatures, and also has applications for both the teaching and practice of entrepreneurship. For example, the entrepreneurship literature has focused almost exclusively on the rewards from entrepreneurial action. We acknowledge these benefits, but also offer a possible psychological ‘dark-side’ of entrepreneurship – an unsatisfied need to belong – as a counterweight. We present a framework to offer insight into strategies that entrepreneurs can use to manage boundaries and realize synergies between multiple identities in order to optimize feelings of distinctiveness and belonging, and thus promote psychological well-being. We also explore the assumption implied in the extant entrepreneurship literature that, in an entrepreneurial context, the entrepreneur needs to be distinct because 1) the venture requires distinctiveness given a competitive market environment, and 2) the identities of the entrepreneur and his or her venture are intertwined. Specifically, we investigate the extent to which the entrepreneur's identity can be separated from the venture in such a way that he or she can realize high distinctiveness while engaged in the role of entrepreneur, and at the same time satisfy needs to belong. In our treatment of entrepreneurship, this article represents a departure from convention. Our focus here is to better understand how and under what conditions entrepreneurship may be destructive and dysfunctional for the entrepreneur, in the hope that as scholars move to investigate the role of the entrepreneur in the entrepreneurial process, the ongoing conversation acknowledges and embraces the fact that there are potential psychological downsides to entrepreneurship and that, through management, these downsides can be minimized or eliminated. In a seminal work focused on the need ‘to be distinct’ as fundamental to the development of an individual's selfidentity, Snyder and Fromkin (1980) challenged the often used proverb – and the prevailing literature of the time – that ‘birds of a feather always flock together’. On the contrary, the authors asserted that the need to be perceived as somehow different and unique was central to the psychological well-being of all humans (Snyder and Fromkin, 1980). In the two decades since Snyder and Fromkin's then controversial proposition, research has demonstrated that distinctiveness is central to an individual's emotional well-being (Singelis et al., 1999; Watson et al., 1991; c.f. Vandervoort, 1996) and physical health (Markus and Kitayama, 1991; c.f. Triandis et al., 1988). That entrepreneurs are somehow distinct and different is a central theme in the entrepreneurship literature (e.g., Baker and Nelson, 2005; Busenitz, 1999; Yli-Renko et al., 2001). Indeed, the literature focused on entrepreneurship as a career choice highlights that one of the reasons individuals become entrepreneurs is to establish a unique identity — to be somehow distinguished in their community, industry, or society (Oyserman et al., 2002; Teal and Carroll, 1999). That said, while creating and growing a business satisfies the psychological need to be distinctive, it may do so at the expense of another basic psychological need, the need to feel belonging (Tajfel and Turner, 1986; Turner, 1985; Ashforth and Mael, 1989). Generally conceptualized as a competing psychological construct to distinctiveness (Brewer, 1991, 1993), belonging results in feelings of inclusion; a lack of belonging can result in feelings of isolation (Brewer, 1991), negatively impacting physical and psychological health (Leonardelli and Brewer, 2001). We suggest that while an entrepreneurial role may satisfy individuals' needs for distinctiveness, it often does not satisfy the need for belonging and ultimately may diminish psychological well-being. We represent this unsatisfied need for belonging – and its negative consequences – as a potential ‘dark-side’ of entrepreneurship. Entrepreneurs who are unable to “balance” distinctiveness with belonging are likely to experience this dark-side and its resultant ill effects (see Kets de Vries, 1985). For example, consider that: “When Daniel C chose to abandon his 20-year career as a corporate executive and acquire a small structural steel company, he assumed that his prime concerns would be financing the venture and marketing his wares. Certainly these have been challenges, but they paled beside the unexpected demon that surfaced in his new life and for which he was totally unprepared. Its name, for a want of a better, is loneliness. Daniel reflects: ‘I'd never thought about loneliness before because I'd never met it. In corporate life, there was always someone to share ideas with — my boss or another colleague. They knew what I was saying because they had been there. … Now it seems I have no one. Sure, there is an association of structural steel people, but they are my competition. I

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

319

learned early on that pricing talk is resolutely avoided at association meetings, but even if we don't talk about prices, there are tensions between us simply because we're competitors.’ … To his surprise, Daniel realized that his new role aggravated the headaches and the ulcer that were his usual signs of stress. Daniel's feelings and experience are common among small-company owners [based on a survey of 450 small-business CEOs] (Gumpert and Boyd, 1984: 18).” In this article we employ Optimal Distinctiveness Theory (ODT) as a lens to investigate how and when entrepreneurs are most vulnerable to the ‘demon’ described in the passage above. Specifically, we integrate ODT (Brewer, 1991, 1993) within a framework for managing multiple, micro-identities (Ashforth et al., 2000; Pratt and Foreman, 2000) to detail the strategies entrepreneurs may employ to maintain an ‘optimal’ balance between the need to belong, and the need to be distinct. Therefore, the general proposition that motivates this research is that entrepreneurs manage multiple microidentities in such a way as to mitigate the trade-off between distinctiveness and belonging; those who are unable or ineffective at managing this trade-off likely face the dark-side of entrepreneurship in the form of diminished psychological well-being (c.f. Brewer, 1991). Our model makes contributions to the entrepreneurship and identity literatures. First, the entrepreneurship literature has focused almost exclusively on the rewards from entrepreneurial action. We acknowledge these benefits, but also offer a possible psychological ‘dark-side’ of entrepreneurship – the unsatisfied need to belong – as a counterweight. We present a framework to offer insight into strategies that entrepreneurs can use to manage boundaries and realize synergies between multiple identities in order to optimize feelings of distinctiveness and belonging, and thus promote psychological well-being. Further, we explore an assumption implied in the extant entrepreneurship literature that, in an entrepreneurial context, the entrepreneur needs to be distinct because the venture requires distinctiveness given a competitive market environment, and also because the identities of the entrepreneur and his or her venture are intertwined. In this paper we explore the extent to which the entrepreneur's identity can be separated from the venture in such a way that he or she can realize high distinctiveness as an entrepreneur, and at the same time satisfy needs for belonging. Second, within the identity literature the level of analysis for Optimal Distinctiveness Theory is the identity, and the theory suggests that there is a trade-off between providing a sense of belonging and of distinctiveness (Leonardelli and Brewer, 2001). By focusing on the individual as the level of analysis in this research, we build upon the notion that individuals typically possess multiple, micro-identities (Mead, 1934; Thoits, 1983) to highlight different approaches to maximizing feelings of distinctiveness and belonging. These micro-identities are derived from the number roles (i.e. work, family, sports teams, church, etc.) that the individual incorporates into the construction of their holistic identity. Our approach provides for the possibility that distinctiveness and belonging are not necessarily direct trade-offs, but may co-exist in a synergistic relationship. To this end we build on arguments for a hierarchy of nested identities (Pratt and Foreman, 2000; Foreman and Whetten, 2002; Turner et al., 1994), to extend the notion of a ‘super-ordinate’ identity positioned to explain the impact of different, identity management approaches. A super-ordinate identity encapsulates, and thus holistically represents, an individual's multiple, micro-identities. Third, there is a substantial body of work on individuals who derive their identity from organizations (Kreiner and Ashforth, 2004; see Pratt, 1998 for a review) fostering a sense of belonging at work (Ashforth, 2001; Barker and Tomkins, 1994). Scholars have also noted a so-called “darker side” of over-identification with an organization and losing a sense of individual identity (Elsbach, 1999; Michel and Jehn, 2003). We investigate entrepreneurs where the link between the individuals' and their organizations' entrepreneurial identities is intimately intertwined, and is more likely to foster a strong sense of distinctiveness (Oyserman et al., 2002; Teal and Carroll, 1999) than belonging at work, and explain why some individuals can maintain psychological well-being while possessing a highly distinctive identity. Finally, we complement recent typologies of managing multiple identities (Ashforth et al., 2000; Pratt and Foreman, 2000) by focusing on specific identity outcomes (for Optimal Distinctiveness Theory) where distinctive entrepreneurial identities need to be “balanced” by other micro-identities offering a sense of belonging.2 In this article we offer a contingent explanation for the effectiveness of different strategies for managing multiple micro-identities. In the next section we introduce the concept of distinctiveness, and detail its importance in the maintenance of psychological well-being. We then highlight the role of entrepreneur as an activity that provides opportunities to satisfy

2 We stop at the level of the micro-identity although we acknowledge that a micro-identity itself may be “made up” of micro-identities. For example, an entrepreneurial micro-identity may represent the super-ordinate entrepreneurial identity of a micro-identity that promotes distinctiveness to external constituents and a micro-identity associated with team spirit within the entrepreneurial firm.

320

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

this need, and detail Optimal Distinctiveness Theory's trade-off between distinctiveness and belonging. We then propose a framework to model how and why some individuals are unable to manage this trade-off and face a dark-side of entrepreneurship, while others are able to achieve an optimal level of distinctiveness and belonging to maximize psychological well-being. 3. Entrepreneurial roles and imbalances in identity needs 3.1. Distinctiveness People have a psychological need to feel distinctive and somehow unique (Brewer and Pickett, 1999; Hornsey and Jetten, 2004; Cantor et al., 2002; Snyder and Fromkin, 1980). This distinction provides the ‘self’ a sense of differentiation from others that is important in the creation and maintenance of one's identity (Brewer, 1991; Snyder and Fromkin, 1980).3 Empirical tests of both social identity theory (Tajfel and Turner, 1979a,b) and self-categorization theory (Oakes, Haslam and Turner, 1994) suggest that differentiating oneself (or one's group) from others provides the basis for the development of a distinct identity (Oyserman et al., 2002; Teal and Carroll, 1999). Further, it is a perceived lack of distinctiveness that motivates individuals to engage in behaviors directed toward differentiating themselves from relevant comparison groups (Tajfel and Turner, 1979a,b), which in turn serves to define one's identity more clearly (Turner et al., 1987). For example, Vignoles et al. (2000) highlighted studies that illustrate the importance of distinctiveness at the identity level, noting that: (1) information is better memorized if it distinguishes the self from others (Leyens et al., 1997); (2) groups are often rated as more heterogeneous if the rater is a group member (Brewer, 1993; Park and Rothbart, 1982); (3) feelings of extreme similarity to others are associated with negative affect (Fromkin, 1970), (4) there is greater identification with distinctive groups (Brewer and Pickett, 1999), and (5) people generally describe themselves as less similar to others than others are to themselves (Codol, 1984a,b, 1987a,b). Although the quest for distinctiveness has been associated with the motivation for enhanced self-esteem (Abrams and Hogg, 1988; Breakwell, 1986; Wills, 1991), there is both theory (Brewer, 1991) and empirical evidence (Brewer et al., 1993; Vignoles et al., 2000) to suggest that the need for distinctiveness is a “universal human motive” (Brewer and Pickett, 1999) that provides a basis for comparative appraisal or self-definition of one's identity (Brewer, 1991: 478), and that it is independent of the self-esteem principle (Brewer, 1991). Therefore, we posit that distinctiveness serves a fundamental role in establishing a meaningful sense of identity, and, in turn, a subjective concept of one's self as a person (Vignoles et al., 2000). 3.2. Belonging Although individuals seek distinctiveness, there is another need that theory suggests is positioned as a trade-off to the need to be distinct — that is, the need to belong (Baumeister and Leary, 1995; Brewer, 1991). Baumeister and Leary (1995: 1) described the need to belong as a “powerful, fundamental, and extremely pervasive motivation”. Indeed much of the research on social identity has focused on the benefits of inclusiveness — being a member of a perceived in-group, which satisfies a need to belong and is reflected by strong desire to form and maintain enduring interpersonal attachments (Baumeister and Leary, 1995). Although the benefits gained from inclusion in a group have been offered from a number of perspectives (realistic group conflict theory (Levine and Campbell, 1972; Sherif et al., 1961) and evolutionary theories about the function of in-groups (Caporael, 1997; Neuberg and Cottrell, 2002), the most influential have been social identity theory (Tajfel and Turner, 1979a,b, 1986) and self-categorization theory (Oakes et al., 1994). Social identity theory (Tajfel and Turner, 1979a,b, 1986) suggests that individuals are motivated to interpret the group with which they are a member in the most favorable light as a means to enhance their own sense of self-worth. Additionally, research has demonstrated that the more an individual identifies with an out-group (distinct from the mainstream), the more that individual degrades their perception of the mainstream group (Gramzow and Gaertner, 2005). There is considerable evidence that people go to quite extreme efforts to use group membership in this way. For example, many psychologists have interpreted the 1999 tragedy at Columbine High School – where two disenfranchised, outcast students opened fire on their classmates – as a powerful, albeit extreme, example of the 3

Although the quest for distinctiveness in the identity process can occur at the individual and group level, our focus is at the individual level.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

321

psychological outcomes from feelings of not belonging, isolation, and rejection (Verlinden et al., 2002). Consistent with social identity theory, self-categorization theory proposes that the pervasiveness of one's social identity is dependant on social comparisons. Specifically, empirical tests of self-categorization theory suggest that the salience of a social identity is based on the particular social comparisons that are available in any given social situation (Oakes et al., 1994). In the end, there is considerable evidence that individuals have a need to belong, and they act in a way to satisfy that need. Indeed, it appears that a sense of belongingness is a powerful human drive (Baumeister and Leary, 1995; for a review; see also Fiske, 2003).4 That is, people experience positive affect from increases in belongingness (McAdams and Bryant, 1987; McAdams, 1985) and negative affect from decreased feelings of belongingness (Leary, 1990; Tambor and Leary, 1993). The negative affect resulting from an unsatisfied need for belonging has been linked to anxiety (Baumeister and Tice, 1990; Tambor and Leary, 1993) and loneliness (Russell et al., 1984; Spivey, 1990); both of which have been linked to negative physical and psychological well-being (DeLongis et al., 1988; Lynch, 1979). The literature selectively reviewed in the preceding sections serves to highlight a potential trade-off in satisfying psychological needs when considered in the context of one's self-identity. On one hand, theory and research suggests that maintaining distinctiveness is fundamental to the development of one's self-identity. On the other hand, the need to belong and identify strongly with societal groups is a fundamental human motive. Distinctiveness is believed to come at the expense of belonging and vice versa (Brewer, 1991: 478) — a belief that we will later challenge. 3.3. Optimal Distinctiveness Theory Optimal Distinctiveness Theory proposes that individuals will seek out associations with groups that allow them to maintain an ‘optimal’ balance between the need to be included, and the need to be distinct (Brewer, 1991, 1993). Empirical evidence suggests an inverted U-shaped relationship between distinctiveness and its benefits (Brewer and Pickett, 1999; Brewer and Weber, 1994) and that this inverted U-shaped relationship can be explained by the tension between the need for “differentiation of the self from others” and a need for “inclusion of the self into larger social collectives” which are understood to act in opposition to each other (Brewer, 1993: 3; Vignoles et al., 2000: 339). Optimal Distinctiveness Theory is consistent with the theories of uniqueness advanced by Snyder and Fromkin (1980). Snyder and Fromkin proposed that the most acceptable level of distinctiveness is at moderate levels; both very high distinctiveness and very low distinctiveness were the least acceptable. As developed by Brewer (1991), Optimal Distinctiveness Theory has been “restricted to the discussion of distinctiveness at the level of the group membership…” however “Brewer and Gardner (1996) extended the same logic to individual and interpersonal levels of selfrepresentation, suggesting that the opposing needs for differentiation and assimilation are played out at the individual level in terms of uniqueness and similarity” (Vignoles et al., 2000: 340). 3.4. Entrepreneurs and identity distinctiveness A role as entrepreneur provides individuals with the opportunity to satisfy their need for distinctiveness in a manner consistent with the theory and empirical evidence described above. Being an entrepreneur provides individuals the autonomy (e.g. Akande, 1994; Boyd and Gumpert, 1983; Kuratko and Hodgetts, 1995) to have greater control over the development of the venture and, more generally, their lives (Kolvereid, 1996; Longenecker et al., 1988). Entrepreneurs can position their firms relative to other firms (and perhaps other entrepreneurs) to maximize distinctiveness (Zahra, 2003; Lumpkin and Dess, 1996; Naman and Slevin, 1993; Guth and Ginsberg, 1990; Khandwalla, 1987; Miller, 1983; Schollhammer, 1982) and erect barriers to imitation to maintain that distinctiveness (Yip, 1982). While a traditional strategy lens would attribute such actions to competitive maneuvering and market positioning, theories of social identity would suggest that these actions also serve the purpose of distinguishing the entrepreneur from some ‘out-group’. Such distinction enhances the entrepreneurs concept of self as being unique and different (Oyserman et al., 2002). Further, the “freedom” inherent in being an entrepreneur allows an individual to have extraordinary control and input – when compared to more ‘traditional’ vocations – in the formulation of their self-identity. That is, the 4

Baumeister and Leary (1995; 498) propose that the need to belong is a fundamental human motivation in that it (a) produces effects under all but adverse conditions, (b) has affective consequences, (c) directs cognitive processing, (d) leads to ill effects (such as health or adjustment) when thwarted, (e) elicits goal-orientated behavior designed to satisfy it, (f) is universal in that it applies to all people, (g) is not derivative of other motives, (h) affects a broad variety of behaviors, and (i) has implications that go beyond immediate psychological functioning.

322

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

distinctiveness inherent in the entrepreneurial process, when combined with the variety of actions and behaviors conferred upon the individual to realize entrepreneurial ends (creation, new venture formation, exploitation), provides these individuals a breadth of opportunities to differentiate themselves from others. Interviews with founders of new ventures revealed that some “viewed the enterprise in terms of personal growth or fulfillment”…for these individuals, “life would not have been complete without proving one had the ability to successfully start a business” (Bruno et al., 1992: 297). Cova and Svanfeldt (1993) proposed that some entrepreneurs “…create a product that flows from their own internal desires and needs. They create primarily to express subjective conceptions of beauty, emotion, or some aesthetic ideal” (297). In sum, we suggest that entrepreneurs have considerable opportunity to pursue differentiation activities consistent with the need to satisfy their desire for a distinct concept of self. There has been considerable scholarly interest in what makes entrepreneurs different from others. Entrepreneurship educators focus on teaching students to ‘think outside the box’, or to ‘color outside the lines’ because each of these acts is perceived as somehow related to success in an entrepreneurial environment. Researchers focus on ‘what is different about entrepreneurs’ in terms of personality (Korunka et al., 2003), cognition (Busenitz and Barney, 1997), creativity (Ames and Runko, 2005), motivation (Naffziger et al., 1994), and knowledge (Shane, 2000). In light of our focus on difference as fundamental to entrepreneurship (and serving as a foundation for how entrepreneurs satisfy the psychological need to be distinct) it is important to concomitantly consider the evidence that by distinguishing themselves as entrepreneurs may not be satisfying their needs to belong. Further, that the unsatisfied need to belong may result in dysfunctional outcomes as related to psychological well-being. For example, specific evidence suggests that entrepreneurs put personal and family relationships at risk (Kim et al., 1994; Redding, 1993; Ufuk and Ozgen, 2001), as well as experience feelings of isolation (Hannafey, 2003), loneliness (Akande, 1994; Gumpert and Boyd, 1984) and high levels of chronic stress (Akande, 1994; Boyd and Gumpert, 1983; Harris et al., 1999; Yusuf, 1995). Such feelings have been found to lead to elevated health problems (Buttner, 1992; Ufuk and Ozgen, 2001), psychological problems (Jamal and Badawi, 1995; Naughton, 1987; Eden, 1975), and work dissatisfaction (Buttner, 1992; c.f. Naughton, 1987). For example, Gumpert and Boyd (1984) found that 52% of 210 small-business owner managers said they “frequently feel a sense of loneliness” and that this group also reported greater levels of stress. These feelings of loneliness were attributed to the distinctive role of entrepreneur. For example, small-business owner managers reported that they had no confidant with who they could share their deep concerns (68% of respondents), that the extreme time demands of entrepreneurship isolated them from others, and that “there's this distance you have to maintain as [owner] manager” (Gumpert and Boyd, 1984). We highlight these empirical findings above and the anecdotal evidence as representative of a potential ‘dark-side’ of entrepreneurship. However, there is likely variability in the extent to which an entrepreneur experiences this downside. Some new organizations are created by a founding team (Eisenhardt and Schoonhoven, 1990; Ucbasaran et al., 2003). The founding team comes together to make collective decisions to achieve collective goals for the venture (West, 2007) and develop a team spirit (Lechler, 2001). It appears that the founding team (and other organizational members) can help satisfy and entrepreneur's need for belonging and minimize the abovementioned dark-side of entrepreneurship. However, even within founding teams there is often a formal structure where one person becomes the “lead entrepreneur” (Clarysse and Moray, 2004; Ensley et al., 2000). Without some form of formalization with specific roles and responsibilities and someone in charge, venture performance will suffer (Sine and Mitsuhashi, 2006; Stinchcombe, 1965). Increasing formalization serves to structurally distinguish the lead entrepreneur from the rest of the founding team. Additionally, conflict between team members can develop (Stinchcombe, 1965). For example, Boyd and Gumpert (1983) found that more than two-thirds of founders starting with partners eventually dissolved teas. Although the lead entrepreneur may become distinct from the rest of the founding team, the team likely satisfies part of his or her need to belong: Proposition 1. Entrepreneurs who maintain a single identity aligned with their ventures satisfy the need for high distinctiveness and those who are part of a founding team satisfy the need for belonging more than those who are solo founders. In the next section we introduce a framework to decompose the relationship between distinctiveness and belonging in the context of managing the boundaries that separate the micro-identities of entrepreneurs. 4. Optimal distinctiveness, psychological well-being, and entrepreneurs Generally, the extant literature conceptualizes someone as experiencing high psychological well-being when his or her life is “congruent or meshing with deeply held values that are holistically or fully engaged” (Ryan and Deci, 2001:

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

323

Fig. 1. Optimal distinctiveness for an entrepreneuring individuals identity.

146). Optimal Distinctiveness Theory suggests that moderate levels of distinctiveness are associated with high psychological well-being. This relationship is depicted in Fig. 1, where the Y-axis represents psychological well-being and the X-axis represents level of distinctiveness. The curve is representative of the individual's psychological wellbeing at differing levels of distinctiveness. At low levels of distinctiveness (far left), a particular identity provides little distinctiveness, and subsequently the individual's psychological well-being is low. Psychological well-being increases with increases in distinctiveness until an ‘optimal’ point, after which further increases in distinctiveness (moving right along the X-axis) result in a decrease in psychological well-being (because of lower levels of belonging). The top of the inverted-U curve represents the ‘optimal’ point for a given individual — the point where distinctiveness and belonging are in balance, and psychological well-being is maximized. For entrepreneurship scholars the question becomes: Can entrepreneurs ‘reshape’ their psychological well-being curve to diminish the trade-off between distinctiveness and belonging (and perhaps capitalize on synergies), and in doing so mitigate the dark-side implications of the entrepreneurial role? To address this question we integrate the premise of ‘balance’ drawn from Optimal Distinctiveness Theory, with the literature that suggests that individuals maintain and manage multiple, micro-identities (Ashforth et al., 2000; Pratt and Foreman, 2000), to propose a framework for understanding how entrepreneurs can maintain an optimal balance of distinctiveness and belonging, while pursuing the highly distinctive role identity associated with being an entrepreneur. Specifically we suggest that by maintaining and managing multiple, micro-identities, an entrepreneur develops what we describe as a superordinate identity curve. The super-ordinate identity holistically represents an entrepreneur's multiple micro-identities; some likely to confer distinctiveness, others likely to confer belonging — thus mitigating the theoretical trade-off between distinctiveness and belonging. This relationship is depicted in Fig. 2a. The micro-identities of entrepreneurs are defined (in both quantity and character) by the extent to which entrepreneurs maintain multiple role identities (Greenhaus and Powell, 2006). In effect, the number of micro-identities maintained by a given individual is a function of the number of role identities that individuals incorporate into the construction of their holistic self-identity (the super-ordinate identity curve). Although we acknowledge that an entrepreneurial identity itself is likely the culmination of a number of micro-identities, this additional level of complexity is not necessary to develop our model. Identities are defined by the central and peripheral characteristics representative of a given role (Ashforth et al., 2000: 475). For example, one may define his or her identity of ‘entrepreneur’ as consisting of a set of central (innovator, risk bearer, action oriented [Covin and Slevin, 1991; Wiklund, 1999]), and peripheral (organizer, facilitator, communicator) characteristics, which taken together define this person's ‘entrepreneurial’ identity.5 That same individual may also conceptualize his or her role identity as ‘parent’ as consisting of a set of central (provider, protector, role-model), and peripheral (taxi for the kids, repair person, etc.) characteristics, which taken together define the role identity of parenthood or as a sporting ‘team mate’ consisting of its central (“play maker” or “point scorer”), and peripheral (tactical We do not offer a single definition of an ‘entrepreneurial’ identity because while there are likely common characteristics across people we also expect variance and it is an individual's notion of his or her ‘entrepreneurial’ identity that impacts psychological well-being. 5

324

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

Fig. 2. a. Micro-identities and the ‘super-ordinate” identity. b. Compartmentalization of micro-identities. c. Integration of micro-identities.

advisor or friend) characteristics. Each micro-identity can be represented by its own distinctiveness — psychological well-being curve, where the top of the inverted-U curve represents the ‘optimal’ balance of distinctiveness and belonging for this specific micro-identity. The optimal level of distinctiveness – in the context of the individual enacting an entrepreneurial identity – is different from the optimal level of distinctiveness while enacting other micro-identities and, as we will show later, different from an entrepreneur's super-ordinate identity curve (if they have more than one micro-identity). For example, the need for distinctiveness is likely satisfied more by an individual's entrepreneurial identity than by his or her identity as parent or sportsperson.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

325

These micro-identities are separated by a boundary. Identity boundaries are defined as the “physical, temporal, emotional, cognitive, and/or relational limits that define entities [identities] as separate from one another” (Ashforth et al., 2000: 474). An example of an identity boundary may be, for example, defined by a building (physical boundary); the notion here is that once the individual enters his/her place of work, that individual assumes the identity defined by his/her vocation. Identity boundaries may also be much less tangible (than a building) and more cognitive in nature; for example consider an entrepreneur who receives a telephone call from a supplier while in the car. Although the entrepreneur may be on the way to the lake for the weekend, the business call dictates an identity ‘transition’ defined by the micro-identity boundary of ‘entrepreneur’. While the attributes that define identity boundaries are developed in more detail later, we suggest here that: Proposition 2. Entrepreneurs who maintain a single identity aligned with their ventures will have lower psychological well-being than entrepreneurs who also maintain micro-identities that confer belonging. It is important to acknowledge that we assume entrepreneurs vary in terms of the number of micro-identities they occupy, and that these micro-identities are relatively stable over time. We also assume that entrepreneurs weigh the importance of different micro-identities – as they contribute to formulating a holistic self-identity – in an idiosyncratic way in terms of satisfying the needs of distinctiveness and belonging. For example, an entrepreneur may maintain several micro-identities positioned to confer belonging – family, sports teams, social clubs, church – but may only seek to satisfy belonging through one (or a few) of those micro-identities (e.g., identity as family member often represents a primary source of belonging) (Oswald and Suter, 2004; Stewart, 2003). In the section that follows we suggest that the entrepreneur's selection of identity management strategies will impact the extent to which multiple, micro-identities serve as conduits for both feelings of distinctiveness and of belonging (and thus enhanced psychological well-being). The effectiveness of an identity management strategy depends on the nature of the boundaries and synergies that exist between the micro-identities. However the challenges of identity management strategies – such that psychological well-being is maximized – lies in managing the transition; crossing from one identity to another such that the individual can “psychologically (and where relevant, physically) exit one role and enter another (Ashforth et al., 2000: 477; Stephens, 1984)”. The notion of transitioning across identity boundaries can be represented as a psychological, transaction cost function (see Ortona and Scacciati, 1992) such that the greater the costs of psychologically exiting one identity to enter another, the greater the cost to psychological well-being. We now move to describe two micro-identity management strategies – compartmentalization and integration – and offer propositions as they relate to understanding the implications of the distinct ‘entrepreneurial’ identity on an individual's psychological well-being. 4.1. Micro-identity management strategies: compartmentalization and integration Compartmentalization is representative of a strategy by which entrepreneurs preserve an identity that confers distinctiveness (entrepreneurial identity) and an identity that confers belonging, and the entrepreneur chooses to employ the different micro-identities at different times and in different contexts (Breakwell, 1986). Compartmentalization strategies dictate that entrepreneurs infrequently oscillate between one micro-identity and other micro-identities as a mechanism for managing boundaries, and specifically the costs of boundary transitions. For example, an entrepreneur may also be a parent, thereby possessing a ‘parenting’ identity that confers feelings of belonging (Oswald and Suter, 2004). Given a compartmentalization strategy for managing micro-identities, the entrepreneur separates entrepreneur from non-work roles by enacting one identity and then the other through a process of infrequent transitions. Doing so allows the entrepreneur to internalize the ‘entrepreneurial’ micro-identity while at work, and when outside work “switch” to other identities such as parent, buddy, sportsperson, card shark, etc. Another example of managing multiple identities using compartmentalization may be an entrepreneur who switches micro-identities twice a day by never doing work at home, and conversely never addressing family-related matters while at work. Compartmentalization does not change the shape of the entrepreneurial identity curve, but instead adds an additional curve representative of the non-work micro-identity; in our example, two curves representing two identities (refer to Fig. 2b). The entrepreneurial identity curve is positioned to the far right, and confers distinctiveness while the individual is engaged in entrepreneurial activities, and a non-work curve is positioned to the left conferring belonging while the individual is engaged in these non-work-related activities. Compartmentalization of multiple, micro-identities facilitates the development of a super-ordinate identity that maximizes an individual's psychological well-being by

326

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

satisfying both the need to be distinctive (through his or her entrepreneurial identity) and to belong (through, for example, his or her parent identity, team identity, or neighborhood identity). However for many entrepreneurs, identity management strategies based on minimizing identity conflict through compartmentalization may be a difficult task. There is a substantial body of literature focused on identity conflict, and in particular work–family conflict (Allen et al., 1983; Greenhaus and Beutell, 1985; Lobel, 1991). This research suggests that attempts to keep identities separate through the use of compartmentalization strategies may fail (Lobel, 1991). For example, Greenhaus and Beutell (1985) identified three theoretical types of work–family, inter-role conflict: 1) timebased conflict, defined as the amount of time required from both the entrepreneurial and parent identity is excessive or conflicting (the entrepreneur is required to be in two places at one time); 2) strain-based conflict, defined as the individual's strain (e.g., illnesses, fatigue or tension) brought on by the pressures of one role making it more difficult to perform the other adequately; and 3) behavior-based conflict, defined as the behavior required in one identity is different from the behavior required with another identity. For example the strain caused by the uncertainty of entrepreneurial tasks make it difficult to effectively immerse in the “parent” identity, and the behavior-based inter-role conflict among family members in family businesses is due to the differences between family and business cultures (e.g., Dyer, 1986). While compartmentalization defines one end of the continuum representative of identity management strategies, at the opposite end is integration. Integration is representative of a strategy by which entrepreneurs can manage multiple micro-identities, and thus mitigate the trade-off between distinctiveness and belonging by bringing together the identity that confers distinctiveness (i.e. entrepreneurial identity) and an identity that confers belonging (e.g., family, sports club, church), so that both identities can be employed simultaneously (or approaching simultaneously) through frequent transitions. Integration is a strategy representative of an attempt to fuse together identities into “a single, all purpose mentality, one way of being, one amorphous self” (Nippert-Eng, 1996: 568). The most simplistic depiction of an integrated identity could be a family business. In this case, the roles defined by different micro-identities – so prominent in a compartmentalized strategy – are essentially fused given an integration strategy. Integration attempts to overcome the competing demands of managing multiple micro-identities by occupying multiple identities simultaneously or by rapidly transitioning between them. In Fig. 2c we illustrate integration where two distinct identities are replaced by a single identity. As with compartmentalization, it may be difficult for entrepreneurs to employ integration strategies for managing multiple identities. Given efforts to reduce separation between micro-identities, the result may be unpredictable interruptions to one micro-identity from the other. Although these interactions can be a source of optimizing the tradeoff between distinctiveness and belonging, they can also be distracting. These distractions can come without warning (Hall, 1990) and disrupt an entrepreneur's immersion in to a particular identity. For example, a phone call from a friend can disrupt immersion into an entrepreneurial identity and a phone call from a client can disrupt immersion into a social gathering of friends such that the entrepreneur may face diminished psychological well-being from feelings that neither his or her needs of distinction or belonging are being sufficiently met as well as confusion and anxiety about which identity is or should be most salient (Ashforth et al., 2000). Such interruptions are less likely for compartmentalization where entrepreneurs maintain the identities separately. Given the conceptualizations of both compartmentalization and integration offered above, it is important to acknowledge that we do not suggest that the extreme forms of either strategy are necessarily common or appropriate, but only posit that these strategies represent anchors on a continuum where individuals position themselves as more compartmentalized or more integrated in the management of multiple micro-identities. Further, given the costs and benefits associated with compartmentalization and integration, we assume entrepreneurs vary in their preferences for identity management strategies focused on satisfying their needs for both distinctiveness and belonging. We also assume that entrepreneurs have some latitude over the extent to which distinctiveness and/or belonging is pursued. Generally, we assume that engaging an entrepreneurial identity is more likely to satisfy the need to be distinctive, while engaging other ‘collective’ identities is more likely to satisfy the need for belonging. Some entrepreneurs will prefer greater compartmentalization (i.e. value the benefits of compartmentalization over integration, or may be better equipped to deal with the challenges of compartmentalization), while others may prefer greater integration for the same reasons. Generally, it is our position that regardless of entrepreneurs' preferences toward a given management strategy (compartmentalization or integration) they generally seek to: a) satisfy needs for distinctiveness and belonging, b) minimize the difficulties of identity transition where difficulties are defined as ‘the effort required to become psychologically and physically disengaged from one identity and re-engaged in another identity (adapted from Burr, 1972; Ashforth et al., 2000: 473), and c) minimize the frequency and magnitude of identity conflict.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

327

To extend the notion of compartmentalization and integration to entrepreneurs as they seek to balance distinctiveness and belonging, in the next section we investigate in greater detail how the nature and character of identity boundaries and identity synergies impact the extent to which compartmentalization and integration strategies may be appropriate for balancing the needs for distinctiveness and belonging in entrepreneurs. In doing so, we develop our arguments based on the notion that identity boundaries and potential synergies are strategic constraints (consistent with the social constructed nature of identities [Ashforth et al., 2000]). From this perspective, identity is not solely determined by, and within the control of, the focal individual but he or she “takes” the role characteristics that others “offer” (Katz and Kahn, 1966). However, the propositions below are not dependent upon this assumption and allow for the possibility that, for example, the nature of identity boundaries can be strengthened or weakened by entrepreneurs. That is, identities can be the result of a negotiation process (Goffman, 1959; Swann, 1987) where not only does the social reality shape individuals (Turner, 1984) but also individuals shape social reality (Buber, 1951; McNulty and Swann, 1994). For example, individuals bring others to see them as they see themselves through techniques such as impression management and in their choice of partners (Swann, 2005). 4.2. Identity synergies, identity boundaries, and management strategy In the previous section we developed a continuum of identity management strategies by detailing the strategies that anchor that continuum — compartmentalization at one extreme, and integration at the other. Given this framework, the relevant question becomes why would (or should) an entrepreneur select a more compartmentalized strategy over a more integrated one (or vice versa) as the more appropriate means through which to optimize distinctiveness and belonging and thus maximize psychological well-being? We propose that the effectiveness of an identity management strategy (the frequency of transitioning between micro-identities) to maximize psychological well-being depends on the concomitant consideration of the extent to which synergies exist between competing micro-identities (the potential benefits arising from transitioning between identities), and the nature of the boundaries that exist between these identities (the difficulties or costs of transitioning between identities). This model is developed below and illustrated in Fig. 3. Identity synergy, as conceptualized by Foreman and Pratt (2000), describes the level of relatedness between identities; the more convergent the identities, the greater the potential that each identity has to enhance the performance of the other. Foreman and Pratt provide the example of an individual with strong religious beliefs (and thus a strong micro-identity related to his/her role in the church) working for a religious organization serving to “align one's religious and work-related identities (Foreman and Pratt, 2000: 23)”. To again carry forward the family business scenario, an example of a synergy may be a family business where one's micro-identity of ‘family’ (and thus a central feature of that identity as being ‘provider’) aligns with running the family business to put food on the table. Identity synergy is manifest when one identity enhances the outcomes of another identity — the family identity enhances the

Fig. 3. Managing entrepreneurs multiple micro-identities to maximize psychological well-being.

328

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

Fig. 4. Synergy and micro-identities.

entrepreneurial identity's ability to satisfy needs for distinctiveness and/or the entrepreneurial identity enhances the family identity's to satisfy needs for belonging. Moving beyond a family business example, consider the case of Phil Knight – the founder of Nike – as an example of an identity synergy in an entrepreneurial context. Knight's identity as a member of the University of Oregon track team in the early 1960s, and his strong desire to maintain an identity as a member of the running community when he graduated from the University, drove him to design, develop, and market a revolutionary running shoe. Thus it was Knight's entrepreneurial identity that not only conferred and satisfied the need for distinctiveness, this identity also served to further Knight's identification with the community of runners, maintaining an identity that served to satisfy needs for belonging; each identity enhancing the performance of the other. Our conceptualization of the role that synergies serve in the context of competing micro-identities is analogous to how organizational theorists characterize the relationship between individuals, groups, and performance. Findings from this area of research consistently demonstrate that when synergies are present between group members (see Hackman, 1987), the performance of the group will exceed the sum of the individual performances of each group member (Watson et al., 1991). In the same vein, we suggest that, at the level of the micro-identity, synergies between identities provide the opportunity to both “broaden” and “raise” the super-ordinate identity curve. When synergies between micro-identities exist, the benefits conferred upon the entrepreneur's holistic identity from enacting these identities exceed the sum of the benefits from enacting each identity alone. In this case, the ‘benefits’ we describe are an enhanced psychological well-being as a result of satisfying the need for both distinctiveness and belonging. This notion is represented in Fig. 4. Turning to the boundaries that define micro-identities, we characterize them as being either strong or weak. Strong boundaries are defined as those that are inflexible and impermeable and those that are weak as flexible and permeable. Boundary flexibility refers to the extent that identities are tied to distinct contexts, settings, or times. Inflexible boundaries are rigid, and serve to define a given micro-identity based on identity specific attributes such as work hours, location, relationships, and even physiological characteristics. For example, an inflexible boundary would be one where the entrepreneurial identity is tied to being in the office from 7 a.m. to 6 p.m. Another example may be the entrepreneur who commutes from the suburbs to the city every day, where the entrepreneurial identity is tied to being in town. At the other extreme, a flexible boundary is one where the transitions between competing micro-identities are illdefined and subtle. In the case of flexible boundaries, competing micro-identities are blurred. Boundary permeability refers to the vulnerability of the boundary to interruptions and distractions that require a transition from one identity to another. A highly impermeable boundary is one that permits for few incursions into a given identity from the roles and activities of a different identity. On the contrary, a permeable boundary is one vulnerable to such intrusions. Bringing together both synergies (low to high) and boundaries (weak to strong), in the context of compartmentalization and integration strategies, serves to define a framework of discrete conditions through which we can investigate a given strategy in the context of an entrepreneur seeking to maximize psychological well-being by optimizing identity distinctiveness and belonging. Simply for illustration purposes we dichotomize the continuous variables of the model (see Fig. 5).

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

329

Fig. 5. Management strategy, boundaries, and synergy.

4.2.1. Compartmentalization of micro-identities A compartmentalization strategy is most effective when boundaries are strong. Strong boundaries assist entrepreneurs in keeping their entrepreneurial and non-work identities apart. That is, interruptions from one identity to the other (and vice versa) are minimized. Infrequent transitions from one identity to the other provide the opportunity to “balance” distinctiveness and belonging. For example, transitioning from family to entrepreneurial identity at the start of the day satisfies an entrepreneur's need for distinctiveness and transitioning from one's entrepreneurial identity to one's identity as a soccer player (or dance partner) at the end of the day satisfies his or her need to belong. However, the compartmentalization strategy of keeping identities separate with transitions deliberately infrequent makes it difficult to realize any potential synergies. For synergies to be fully realized there needs to be integration of the two entities (Allred et al., 2005; Schweiger and Goulet, 2005); realizing potential synergies depends on the extent of interaction and coordination between the identities (Larrson and Finkelstein, 1999). Thus, Proposition 3. Entrepreneurs who pursue a compartmentalization strategy for managing multiple micro-identities increase psychological well-being when identity boundaries are strong, but decrease psychological well-being when identity boundaries are weak. 4.2.2. Integration of micro-identities An integration strategy is representative of a strategy through which entrepreneurs attempt to mitigate the trade-off between distinctiveness and belonging by bringing together the identity that confers distinctiveness (i.e. entrepreneurial identity) and an identity that confers belonging, so that both identities can be employed simultaneously or approaching simultaneity through frequent transitions. The benefits of such a strategy are to realize potential synergies between identities. But for this strategy to capitalize on potential synergies, the boundaries between identities need to be weak; for example, a blurring of the separation of “market” and “home” that occurs in many businesses where the family and the business are inextricably intertwined (Fournier and Lightfoot, 1997; Hamilton, 2006). Weak boundaries reduce the difficulties or psychological costs of the transitioning between identities necessary to take advantage of synergies. In contrast, stronger boundaries means that the gulf between the identities is broader requiring more “work” to bridge the gulf, increasing the psychological costs of frequent transitioning between identities. Stronger boundaries are likely to obstruct or diminish potential synergistic benefits. It is for this reason that we suggest that inflexible and impermeable boundaries make it more difficult – if not impossible – for an integration strategy to realize the benefits of potential synergies between a distinctive entrepreneurial identity and other identities satisfying needs to belong. But even with

330

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

flexible and permeable boundaries, without the potential of synergies then the entrepreneur faces the costs of weak boundaries – such as sources of identity conflict from blurred boundaries such that the roles and responsibilities of one identity (entrepreneurial identity) spillover into another identity and vice versa (Williams and Alliger, 1994) – without the synergistic upside. Consider the integration of entrepreneurial and parent identities at a single table that simultaneously represents (or with frequent oscillation between) a kitchen table (parent identity) and a boardroom table (entrepreneurial identity). These weak boundaries enhance the effectiveness of an integration strategy to manage entrepreneurial and family member identities to balance distinctiveness with belonging to maximize psychological well-being. In spite of Friedman's (1991) previously cited contention that family business interests are rarely congruous, it is possible that for some entrepreneurs, their non-entrepreneurial identities such as one's family identity can enhance their entrepreneurial role. For example, Stewart (2003: 387) emphasized the importance of kinship arising from family in enhancing entrepreneurial action — “relatives provide a diffuse, long term source of social support that underwrites the capacity of entrepreneurs to take short term risks (Benedict, 1968; Goody, 1996; Greenhalgh, 1989; Mattessich and Hill, 1976)”. Perhaps the sense of belonging from a family identity enhances the entrepreneurial role by encouraging a more distinctive entrepreneurial identity. There are also some examples of potential synergies where the entrepreneurial role helps provide a sense of belonging — working in a family business may strengthen a marriage (Wicker and Burley, 1991). Therefore, synergies offer the opportunity to raise the psychological well-being curve higher than the simple additive effects of the two micro-identities (see Fig. 4), but in order for this to occur there must exist an opportunity for synergy, a permeable boundary between micro-identities, and the use of an integration strategy. Alternate configurations involving only integration are unable to achieve the same fit and therefore do not provide the same benefits to psychological well-being. Although compartmentalization can represent an appropriate “fit” when the boundaries are less permeable and there are few if any potential synergies, this “best” compartmentalization configuration enhances psychological well-being less than the “best” integration configuration because the later has access to, and capitalizes on, potential synergies. Thus, Proposition 4. When the synergy between identities is high, entrepreneurs who pursue an integration strategy for managing multiple micro-identities increase psychological well-being more the weaker the identity boundaries. Proposition 5. Entrepreneurs with greater integration of identities when synergies are high and boundaries weak have higher psychological well-being than any other combination of strategy, boundary strength and level of synergy. 5. Discussion The entrepreneurship literature has focused almost exclusively on the extrinsic (Zahra et al., 1999) and intrinsic (Kuratko et al., 1997) benefits arising from entrepreneurship. One exception is Kets de Vries' (1985: 160) article on the dark-side of entrepreneurship. In this article we acknowledged that the same creative energies that drive an entrepreneur have its source in destructive internal needs that can ruin a career or company. In our model we acknowledge that the benefits of being an entrepreneur in satisfying needs for distinctiveness may come at the expense of satisfying needs to belong and if these needs are not “balanced” then entrepreneurs are susceptible to experiencing the dark-side. If scholars are to examine the entrepreneur in entrepreneurship, then there is an opportunity to address research questions that do not have improving organizational performance as an underlying motivation for the study. Although an entrepreneur's psychological well-being may have a positive relationship with firm performance (a relationship to be empirically tested), we believe psychological well-being is a valuable dependent variable in its own right. An individual's entrepreneurial behavior can extend across a number of organizations (Greenhaus and Powell, 2006); so a focus on the people side of entrepreneurship that is tied to specific organizations is likely to unnecessarily constrain our research. We have an opportunity to move beyond the health of the organization to the health of the individuals that create and grow these organizations. By acknowledging a dark-side of entrepreneurship we were able to explore strategies that help individuals obtain the benefits and minimize the costs of entrepreneurial action. In our model we acknowledged conventional wisdom that an entrepreneur's identity is intimately intertwined with his or her venture (Cardon et al., 2005). However, in moving from the identity as the level of analysis to the entrepreneur as the level of analysis provides the opportunity to explore the role that multiple micro-identities have in balancing a distinctive, entrepreneurial identity with one or more identities that satisfy needs for belongingness.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

331

Acknowledging different strategies for managing multiple micro-identities and the conditions where they are most effective, we are able to offer an explanation for why some entrepreneurs maximize the psychological benefits of an entrepreneurial identity while others do not. Our notion of strategies for managing multiple identities makes a contribution to Optimal Distinctiveness Theory (Brewer, 1991). Rather than maximizing psychological well-being by maintaining an identity that optimizes distinctiveness and belonging, individuals can “change the equation” by introducing and managing multiple microidentities to “create” a super-ordinate identity that maintains a higher psychological well-being for a greater range of distinctiveness. Applying Optimal Distinctiveness Theory at the level of the entrepreneurial identity may provide an unsatisfactory explanation of entrepreneurs' psychological well-being, because some individuals with highly distinctive entrepreneurial identities are able to satisfy needs for belonging through other micro-identities, while other individuals might have less distinctive entrepreneurial identities but do not maintain other identities and face a darkside of diminished psychological well-being. Our optimal distinctiveness approach to managing the multiple micro-identities of entrepreneurs complements organizational research on multiple identities. First, research on individuals' identification with organizations has focused on employees and fostering a sense of belonging (Ashforth, 2001; Barker and Tomkins, 1994). We focused on entrepreneurs where their work-related identity (entrepreneurial identity) is likely to satisfy needs to be distinctive, potentially at the expense of belonging (Gumpert and Boyd, 1984). Investigating entrepreneurs provides an interesting counterbalance to organizational research on the identities of employees and opens up new avenues for future research on over-identification. Second, Optimal Distinctiveness Theory's emphasis on distinctiveness and belonging in contributing to psychological well-being provides an important focus for investigating the specific contributions of different micro-identities and strategies to manage them. We position this research, in part, as a response to Pratt and Foreman's suggestion that a further elaboration is needed on the ‘specific mechanisms’ through which multiple identities are managed (Pratt and Foreman, 2000). Specifically, we addressed strategies for managing multiple microidentities (compartmentalization and integration as anchors on a continuum of the frequency of transitioning between identities) and how the relationship between strategy and balancing the needs of distinctiveness and belonging were moderated by identity synergies (the potential benefits from transitioning between identities) and the strength of boundaries (the difficulties in transitioning between identities). 5.1. Future research We suggest that for scholars interested in pursuing empirical investigations of the relationships proposed in this article, one of the most promising aspects of such inquiry is that it does not necessarily require the development of new measures or research designs. Generally, the testing of social identity theories is based on psychometric instruments, and correlation analysis. Specifically in the case of Optimal Distinctiveness Theory, both experimental (Pickett and Brewer, 2001) and survey-based (Van Hiel and Mervielde, 2004) designs have been employed to investigate the tradeoff between distinctiveness, belonging, and psychological well-being and have been found to be valid. For example, there are several generalized and contextually-specific measures of psychological well-being (see Ryff, 1989 for a review) including the Life Satisfaction Index (Neugarten et al., 1961) and the Affect Balance Scale (Bradburn, 1969). Further, instruments designed to capture both belonging (Identification with a Psychological Group [Mael and Tetrick, 1992]) and distinctiveness (Need for Uniqueness Scale [Snyder and Fromkin, 1980]) are readily accessible to researchers. A more challenging proposition than how to measure the relative affect of the entrepreneur (detailed above) lies in operationalizing the 1) identity management strategy employed by the entrepreneur (more compartmentalization vs. more integration), 2) the strength of the micro-identity boundaries, and 3) the synergies that exist between micro-identities. As a first step toward decomposing the identity management strategy ‘in-use’ by the entrepreneur, as well as assessing the strength of the boundaries between identities, researchers interested in empirical investigation may employ experience sampling (ESM) methodologies (Csikszentmihalyi and Larson, 1987; Hormuth, 1986), where entrepreneurs record their daily activities, and thus the researcher can employ a classification schema designed to identify the relevant micro-identity management strategies employed. Such research can build on the solid foundation of existing ESM designs (Stone, 1982). Turning to synergies, the investigation of our general proposition that synergies between microidentities serve to enhance the contribution of individual, micro-identities in terms of distinctiveness, belonging, and thus psychological well-being has methodological precedents in the literature. For example, scholars have long

332

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

investigated the notion of synergy in the context of the ‘individual-team’ dynamic using experimental designs. For example, Distefano and Maznevski, 2000 employed cross-cultural awareness training – as a manipulation – to promote synergies given multi-cultural teams, and subsequently examined the performance of culturally synergistic teams in comparison to a control group. In this case, synergy was operationalized using training as a proxy. Watson et al. (1991) considered synergy as a function of team experience in a longitudinal study where they considered the relative contribution of the team's highest performer as compared to the team as a whole, highlighting that as synergies were developed (through experience working as a team), the relative contribution of the top performer was reduced in comparison to the performance of the team as a whole. Adapting optimal distinctiveness from the level of the identity to the level of the individual (super-ordinate identity) highlights the possibilities of future research at other levels of analysis and perhaps across levels. The organizational level is already well established in terms of multiple organizational identities (Foreman and Pratt, 2000; Foreman and Whetten, 2002; Turner et al., 1994) and strategies for managing these identities (Pratt and Foreman, 2000). Do organizations have a need to be distinctive? Do they have a need to belong? Strategy research has been based on the first premise — organizations need to be distinctive (Barney, 1991; Porter, 1980) and maintain this unique position for reasons of competitive advantage (Yip, 1982). But industry associations, for example, provide an indication that organizations also ‘need to belong’. However, if you create a new industry or destroy an established industry, to which industry association should the firm belong? Finally, we assume that entrepreneurial identities are high on distinctiveness and begin with a set of micro-identities to investigate how they can be managed. There is likely heterogeneity across different forms of entrepreneurial action in the extent to which they are distinctive and the extent to which the satisfy needs for belongingness. Relative to more radical entrepreneurial actions, do less distinctive entrepreneurial actions — such as becoming a franchisee: (a) provide less satisfaction of the need to be distinctive, and/or (b) represent a context in which the entrepreneur is less likely to experience the dark-side of an unsatisfied need for belonging? We have suggested that entrepreneurs who were part of a founding team are less likely to experience this dark-side than those who were sole founders. There are likely other variables for explaining the location of the micro-identity curves and such research will make an important contribution to entrepreneurship. An additional research opportunity is to investigate existing micro-identities and how they might influence which additional roles are added. For example, perhaps individuals that have a non-work identity that provides considerable satisfaction of the need for belonging are able, or desire to, pursue entrepreneurial microidentities that are more highly distinctive than those individuals who have less of their needs for belonging satisfied. Does one's micro-identity “make-up” impact which additional micro-identities are added and how they are managed? These research questions that “push” the boundary conditions of this article's model represents a promising line of research. 5.2. Practical implications The primary implication of our model is that given an assessment of the permeability of one's micro-identity boundaries and potential synergies, entrepreneurs can chose a more compartmentalized or more integrated identity management strategy to achieve the best “fit” and in doing so minimize the dark-side of an unsatisfied need for belonging to maximize psychological well-being. To enact an integration identity strategy (following Dumas, 2003: 33; Nippert-Eng, 1995, 1996; Perlow, 1998), entrepreneurs may 1) talk about one role while in another (e.g., talk about one's entrepreneurial activities while at a softball game with friends or talk about community activities while at work), 2) perform activities from one role while physically located in another role (e.g., making phone calls to raise money for the local church while at the office or answering emails from customers on the Blackberry during a round of golf with friends), and 3) allow role-set members associated with the entrepreneurial role to interact with role-set members from other roles (e.g., invite family members to the company's holiday party or invite employees to one's 50th birthday party at home). These activities encourage integration. For a compartmentalization strategy (following Dumas, 2003: 33; Nippert-Eng, 1995, 1996; Perlow, 1998), the entrepreneur would avoid the integration activities detailed above: 1) not talk about the activities of the entrepreneurial role while in another role and vice versa, 2) restrict physical artifacts to their domains of origin (e.g., keep photos of the family at home, trophies at the sorts club, computers and fax machines at the office), 3) delineate specific times and places where one would be in his or her entrepreneurial role and times and places for other roles (e.g., from 8am–6pm, Monday to Saturday one is in the office and during this time and in this place the individual engages exclusively his or her entrepreneurial role; other times and places engages other roles), and

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

333

4) keeps separate the entrepreneurial role-set members and role-set members from other roles (e.g., employees, customers, suppliers do not mix with family, recreational friends, and/or fellow church members). These activities help enact a compartmentalization identity strategy. 5.3. Conclusion In this article, we investigated the role that micro-identities have in satisfying the psychological needs of distinctiveness and belonging. We position the role of entrepreneur as generating a possible ‘dark-side’ for individuals, suggesting that an entrepreneurial role may satisfy individuals' needs for distinctiveness; it often does so at the expense of belongingness, and, ultimately, psychological well-being. By integrating social-identity and role identity literatures with Optimal Distinctiveness Theory, we propose a framework positioned to decompose strategies for managing multiple microidentities, such that the distinctiveness inherent in an entrepreneur's identity does not come at a cost to belonging, and in turn psychological health. In our treatment of entrepreneurship, this article represents a departure from convention. Our focus here is to better understand how and under what conditions entrepreneurship is destructive and dysfunctional for the entrepreneur. Reflecting upon this research, it is our hope that as scholars move to “re-examine the people-side of entrepreneurship (Mitchell et al., 2002:93)”, the ongoing conversation acknowledges and embraces the fact that there are potential psychological downsides to entrepreneurship and that, through management, these downsides can be minimized or eliminated. More theoretical and empirical work is required to appropriately detail and develop the ‘identity’ implications of entrepreneurship. It is our hope that this article represents a first step toward that end.

References Abrams, D., Hogg, M.A., 1988. Comments on the motivational status of self-esteem in social identity and inter-group discrimination. European Journal of Social Psychology 18 (4), 317–334. Akande, A., 1994. Coping with entrepreneurial stress: evidence from Nigeria. Journal of Small Business Management 32 (1), 83–87. Allen, V., Wilder, D., Atkinson, M., 1983. Multiple group membership and social identity. In: Sarbin, T.R., Scheibe, K.E. (Eds.), Studies in Social Identity. Praeger, New York, NY, pp. 92–115. Allred, B., Boal, K., Holstein, W., 2005. Corporations as stepfamilies: a new metaphor for explaining the fate of acquired companies. Academy of Management Executive 19 (3), 23–37. Ames, M., Runko, M.A., 2005. Predicting entrepreneurship from ideation and divergent thinking. Creativity and Innovation Management 14 (3), 311–315. Ashforth, B.E., 2001. Role Transitions in Organizational Life: An Identity-Based Perspective. Erlbaum, Mahwah, NJ. Ashforth, B.E., Mael, F., 1989. Social identity theory and the organization. Academy of Management Review 14 (1), 20–39. Ashforth, B., Kreiner, G., Fugate, M., 2000. All in a day's work: boundaries and micro role transitions. Academy of Management Journal 25 (3), 472–491. Baker, T., Nelson, R.E., 2005. Creating something from nothing: resource construction through entrepreneurial bricolage. Administrative Science Quarterly 50 (3), 329–366. Barker, J.R., Tomkins, P.K., 1994. Identification in the self-managing organization: characteristics of target and tenure. Human Communication Research 21, 223–240. Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management 17 (1), 99–120. Baumeister, R., Leary, M.R., 1995. The need to belong: desire for interpersonal attachments as a fundamental human motivation. Psychological Bulletin 117 (3), 497–529. Baumeister, R., Tice, D.M., 1990. Anxiety and social exclusion. Journal of Social and Clinical Psychology 9, 165–195. Benedict, B., 1968. Family firms and economic development. Southwestern Journal of Anthropology 24 (1), 1–19. Boyd, D.P., Gumpert, D.F., 1983. Coping with entrepreneurial stress. Harvard Business Review 44–64 March–April. Bradburn, N., 1969. The Structure of Psychological Well-Being. Aldine, Chicago. Breakwell, G., 1986. Coping with Threatened Identities. Methuen, London. Brewer, M.B., 1991. The social self: on being the same and different at the same time. Personality and Social Psychology Bulletin 17 (5), 475–482. Brewer, M.B., 1993. The role of distinctiveness in social identity and group behavior. In: Hogg, M.A., Abrams, D. (Eds.), Group Motivation: Social Psychological Perspectives. Harvester Wheatsheaf, London. Brewer, M.B., Gardner, W., 1996. Who is this we? Levels of collective identity and self representations. Journal of Personality and Social Psychology 71 (1), 83–93. Brewer, M.B., Pickett, C.L., 1999. Distinctiveness motives as a source of the social self. In: Tyler, T.R., Kramer, R.M., John, O.P. (Eds.), The Psychology of the Social Self. Erlbaum, Mahwah, NJ, pp. 71–87. Brewer, M.B., Weber, J.G., 1994. Self-evaluation effects of interpersonal versus intergroup social comparison. Journal of Personality and Psychology 66 (2), 268–275.

334

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

Brewer, M., Manzi, J., Shaw, J., 1993. Ingroup identification as a function of depersonalisation, distinctiveness and status. Psychological Science 4, 88–92. Bruno, A.V., McQuarrie, E.F., Torgrimson, C.G., 1992. The evolution of new technology ventures over 20 years: patterns of failure, merger, and survival. Journal of Business Venturing 7 (4), 291–302. Buber, M., 1951. Distance and relation. The Hibbert Journal: Quarterly Review of Religion, Theology and Philosophy 49, 97–129. Burr, W., 1972. Role transitions: a reformulation theory. Journal of Marriage and the Family 34, 407–416. Busenitz, L.W., 1999. Entrepreneurial risk and strategic decision making: it's a matter of perspective. Journal of Applied Behavioral Science 35 (3), 325–340. Busenitz, L.W., Barney, J.B., 1997. Differences between entrepreneurs and managers in large organizations: biases and heuristics in strategic decision-making. Journal of Business Venturing 12 (1), 9–30. Buttner, E.H., 1992. Entrepreneurial stress: is it hazardous to your health? Journal of Managerial Issues 4, 223–240. Cantor, N., Kemmelmeier, M., Basten, J., Prentice, D., 2002. Life task pursuit in a college setting: the interplay of individual goals and group environments. Journal of the International Society for Self and Identity 1 (2), 177–184. Caporael, L.R., 1997. The evolution of truly social cognition: the core configurations model. Personality and Social Psychology Review 1, 276–298. Cardon, M.S., Zeitsma, C., Saparito, P., Matherne, B.P., Davis, C., 2005. A tale of passion: new insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing 20 (1), 23–45. Clarysse, B., Moray, N., 2004. A process study of entrepreneurial team formation: the case of a research-based spinoff. Journal of Business Venturing 19 (1), 55–76. Codol, J., 1984a. On the system of representations in an artificial social situation. In: Farr, R.M., Moscovici, S. (Eds.), Social Representations. Cambridge University Press, Cambridge, pp. 239–253. Codol, J.P., 1984b. Social differentiation and nondifferentiation. In: Tajfel, H. (Ed.), The social dimension, vol. 1. Cambridge University press, Cambridge, pp. 314–337. Codol, J., 1987a. Comparability and incomparability between oneself and others: means of differentiation and comparison reference points. Cahiers de Psychologie Cognitive 7, 87–105. Codol, J.P., 1987b. Comparability and incomparability between oneself and others: means of differentiation and comparison reference points. European Journal of Cognitive Psychology 7, 87–105. Cova, B., Svanfeldt, C., 1993. Societal innovations and the postmodern astheticization of everyday live. International Journal of Research in Marketing 10 (3), 297–310. Covin, J.G., Slevin, D.P., 1991. A conceptual model of entrepreneurship as firm behavior. Entrepreneurship Theory and Practice 7–25 (Fall). Csikszentmihalyi, M., Larson, R., 1987. Validity and reliability of the experience-sampling method. The Journal of Nervous and Mental Disease 175 (9), 526–536. DeLongis, A., Folkman, S., Lazarus, R.S., 1988. The impact of daily stress on health and mood: psychological and social resources as mediators. Journal of Personality and Social Psychology 54 (3), 486–495. Distefano, J.J., Maznevski, M.L., 2000. Creating value with diverse teams in global management. Organizational Dynamics 29 (1), 45–63. Dumas, T. 2003. When to draw the line: effects of identity and role boundary management on inter-role conflict. Northwestern University, Dissertation. Dyer, W.G., 1986. Cultural Change in Family Firms. Jossey-Bass, San Francisco. Eden, D., 1975. Organizational membership vs. self-employment: another blow to the American dream. Organizational Behavior and Human Performance 13, 79–94. Eisenhardt, K.M., Schoonhoven, C.B., 1990. Organizational growth: linking founding team, strategy, environment, and growth among US semiconductor ventures, 1978–1988. Administrative Science Quarterly 35 (3), 504–529. Elsbach, K.D., 1999. An expanded model of organizational identification. Research in Organizational Behavior 21, 163–200. Ensley, M., Carland, J.W., Carland, J.C., 2000. Investigating the existence of the lead entrepreneur. Journal of Small Business Management 38 (4), 59–77. Fiske, S.T., 2003. Five core social motives, plus or minus five. In: Spencer, S.J., Fein, S., Zanna, M.P., Olson, J. (Eds.), Motivated Social Perception: The Ontario Symposium, vol. 9. Erlbaum, Mahwah, NJ, pp. 233–246. Foreman, P., Whetten, D.A., 2002. Members' identification with multiple-identity organizations. Organization Science 13 (6), 618–635. Fournier, V., Lightfoot, G., 1997. Identity work and family business. In: Ram, M., Deakins, D., Smalbone, D. (Eds.), Small Firms: Enterprising futures. Paul Chapman Publishing, London. Friedman, S., 1991. Sibling relationships and inter-generational succession in family firms. Family Business Review IV, 3–20. Fromkin, H.L., 1970. Effects of experimentally aroused feelings of undistinctiveness upon valuation of scarce and novel experiences. Journal of Personality and Psychology 16, 521–529. Goffman, E., 1959. The Presentation of Self in Everyday Life. Doubleday, Garden City, NY. Goody, J., 1996. The East in the West. Cambridge University Press, Cambridge. Gramzow, R., Gaertner, L., 2005. Self-esteem and favoritism toward novel in-groups the self as an evaluative base. Journal of Personality and Social Psychology 88 (5), 801–815. Greenhalgh, S., 1989. Land reform and family entrepreneurship in East Asia. Population and Development Review 15, 77–118. Greenhaus, J., Beutell, N., 1985. Sources of conflict between work and family roles. Academy of Management Review 10, 76–88. Greenhaus, J.H., Powell, G., 2006. When work and family are allies: a theory of work–family enrichment. Academy of Management Review 31, 72–92. Gumpert, D., Boyd, D., 1984. The loneliness of the small business owner. Harvard Business Review 62 (November/December). Guth, W.D., Ginsberg, A., 1990. Guest editor's introduction: corporate entrepreneurship. Strategic Management Journal 27, 25–41. Hackman, J.R., 1987. The design of work teams. In: Lorsch, J. (Ed.), Handbook of Organizational Behavior. Prentice-Hall, Englewood Cliffs, NJ, pp. 315–342.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

335

Hall, S., 1990. Cultural identity and diaspora. In: Rutherford, J. (Ed.), Identity, Community, Culture, Difference. Lawrence and Wishart, London, pp. 237–247. Hamilton, E., 2006. Whose story is it anyway?: narrative accounts of the role of women in founding and establishing family businesses. International Small Business Journal 24 (3), 253–271. Hannafey, F.T., 2003. Entrepreneurship and ethics: a literature review. Journal of Business Ethics 46 (2), 99–110. Harris, J.A., Saltstone, R., Fraboni, M., 1999. An evaluation of the job stress questionnaire with a sample of entrepreneurs. Journal of Business and Psychology 13 (3), 447–455. Hormuth, S., 1986. The sampling of experiences in SITU. Journal of Personality 51 (1), 262–293. Hornsey, M.J., Jetten, J., 2004. The individual within the group: balancing the need to belong with the need to be different. Personality and Social Psychology Review 8 (3), 248–264. Jamal, M., Badawi, J.A., 1995. Job stress and quality of working life of self-employed immigrants: A study in workforce diversity. Journal of Small Business and Entrepreneurship 12, 55–63. Katz, D., Kahn, R.L., 1966. The Social Psychology of Organizations. Wiley, New York. Kets de Vries, M.F.R., 1985. The dark side of entrepreneurship. Harvard Business Review 63, 160–167. Khandwalla, P., 1987. Generators of pioneering innovative management: some Indian evidence. Organization Studies 8 (1), 39–59. Kim, M.S., Sharkey, W., Singelis, T., 1994. The relationship between individuals' self construal and perceived importance of interactive constraints. International Journal of Intercultural Relations 18, 117–140. Kolvereid, L., 1996. Organizational employment versus self-employment: reasons for career choice intentions. Entrepreneurship Theory and Practice 23–31. Korunka, C., Frank, H., Lueger, M., Mugler, J., 2003. The entrepreneurial personality in the context of resources, environment, and the startup process: a configurational approach. Entrepreneurship Theory and Practice 28, 23–43. Kreiner, G., Ashforth, B.E., 2004. Evidence toward an expanded model of organizational identification. Journal of Organizational Behavior 25, 1–27. Kuratko, D.F., Hodgetts, R.M., 1995. Entrepreneurship: A Contemporary Approach. Druyden Press, Harcourt Brace & Co., Fort Worth, TX. Kuratko, D., Hornsby, S., Naffziger, D., 1997. An examination of owner's goals in sustaining entrepreneurship. Journal of Small Business Management 35, 24–33. Larrson, R., Finkelstein, S., 1999. Integrating strategic, organizational and human resources perspectives on mergers and acquisitions: a case survey of synergy realization. Organization Science 10 (1), 1–26. Leary, M.R., 1990. Responses to social exclusion: social anxiety, jealousy, loneliness, depression, and low self-esteem. Journal of Social and Clinical Psychology 9, 221–229. Lechler, T., 2001. Social interaction: a determinant of entrepreneurial team venture success. Small Business Economics 16 (4), 263–278. Leonardelli, G.J., Brewer, M.B., 2001. Minority and majority discrimination: when and why. Journal of Experimental Social Psychology 37, 468–485. Levine, R.A., Campbell, D.T., 1972. Ethnocentrism: Theories of Conflict, Ethnic Attitudes and Group Behavior. John Wiley & Sons, Inc., London. Leyens, J.P., Yzerbyt, V.Y., Rogier, A., 1997. Personality traits that distinguish you and me are better memorized. European Journal of Social Psychology 27, 511–522. Lobel, S., 1991. Allocation of investment in work and family roles: alternative theories and implication for research. Academy of Management Review 16, 507–521. Longenecker, J.G., McKinney, J.A., Moore, C.W., 1988. Egoism and independence: entrepreneurial ethics. Organizational Dynamics 16, 64–72. Lumpkin, G.T., Dess, G.G., 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review 21 (1), 135–172. Lynch, J.J., 1979. The Broken Heart: The Medical Consequences of Loneliness. Basic Books, New York, NY. Mael, F.A., Tetrick, L.E., 1992. Identifying organizational identification. Educational and Psychological Measurement 52 (4), 813–825. Markus, H.R., Kitayama, S., 1991. Culture and the self: implications for cognition, emotion, and motivation. Psychological Review 98 (2), 224–253. Mattessich, P., Hill, R., 1976. Family Enterprises and societal development: a theoretical assessment. Journal of Comparative Family Assessment 7 (2), 147–158. McAdams, D.P., 1985. Power, intimacy, and the life story: personological inquiries into identity. Dorsey, Homewood, IL. McAdams, D.P., Bryant, F.B., 1987. Intimacy motivation and subjective mental health in a nationwide sample. Journal of Personality 55, 395–413. McNulty, S.E., Swann, W.B., 1994. Identity negotiation in roommate relationships: the self as architect and consequence of social reality. Journal of Personality and Social Psychology 67, 1012–1023. Mead, G.H., 1934. Mind, Self, and Society. University of Chicago Press, Chicago, IL. Michel, A.A., Jehn, K., 2003. The dark-side of identification: overcoming identification-induced performance problems. In: Neale, M., Mannix, E., Polzner, J. (Eds.), Research on Managing Groups and Teams. JAI Press, Greenwich, CT, pp. 189–219. Miller, D., 1983. The correlates of entrepreneurship in three types of firms. Management Science 29, 770–791. Mitchell, R., Busenitz, L., Lant, T., McDougall, P., Morese, E., Smith, J.B., 2002. Toward a theory of entrepreneurial cognition: rethinking the people side of entrepreneurship. Entrepreneurship Theory and Practice Winter. Naffziger, D.W., Hornsby, J.S., Kuratko, D.F., 1994. A proposed research model of entrepreneurial motivation. Entrepreneurship Theory and Practice 18, 29–42. Naman, J.L., Slevin, D.P., 1993. Entrepreneurship and the concept of fit: a model and empirical tests. Strategic Management Journal 14, 137–153. Naughton, T.J., 1987. Quality of working life and the self-employed manager. American Journal of Small Business 11 (4), 33–40. Neuberg, S.L., Cottrell, C.A., 2002. Intergroup emotions: a biocultural approach. In: Mackie, D.M., Smith, E.R. (Eds.), From Prejudice to InterGroup Emotions: Differentiated Reactions to Social Groups. Psychology Press, New York, NY, pp. 265–283. Neugarten, B., Havighurst, R., Tobin, S., 1961. The measurement of life satisfaction. Journal of Gerontology 16, 134–143.

336

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

Nippert-Eng, C.E., 1995. Home and Work: Negotiating Boundaries through Everyday Life. The University of Chicago Press, Chicago. Nippert-Eng, C., 1996. Calendars and keys: the classification of “home” and “work”. Sociological Forum 11, 563–582. Oakes, P.J., Haslam, A., Turner, J.C., 1994. Stereotyping and Social Reality. Oxford University Press, Oxford. Ortona, G., Scacciati, F., 1992. New experiments on the endowment effect. Journal of Economic Psychology 13 (2), 277–296. Oswald, R., Suter, E., 2004. Heteronormative inclusion and exclusion processes during ritual: a “gay” versus “straight” comparison. Journal of Family Issues 25 (7), 881–899. Oyserman, D., Coon, H.M., Kemmelmeier, M., 2002. Rethinking individualism and collectivism: evaluation of theoretical assumptions and metaanalysis. Psychological Bulletin 128–1, 3–72. Park, B., Rothbart, M., 1982. Perception of out-group homogeneity and levels of social categorization: memory for the subordinate attributes of ingroup and out-group members. Journal of Personality and Social Psychology 42, 1051–1068. Perlow, L., 1998. Boundary control: the social ordering of work and family time in a high-tech corporation. Administrative Science Quarterly 43, 328–357. Pickett, C., Brewer, M., 2001. Assimilation and differentiation needs as motivational determinants of perceived in-group and out-group homogeneity. Journal of Experimental Social Psychology 37 (4), 341–348. Porter, M.E., 1980. Competitive Strategy. The Free Press, New York. Pratt, G., 1998. Grids of difference: place and identity formation. In: Fioncher, R., Jacobs, J. (Eds.), Cities of Difference. Guilford, Press, New York, NY. Pratt, M.G., Foreman, P.O., 2000. Classifying managerial responses to multiple organizational identities. Academy of Management Review 25 (1), 18–42. Redding, G., 1993. The Spirit of Chinese Capitalism. Walter de Gruyter, Berlin. Russell, D., Cutron, C.E., Rose, J., Yurko, K., 1984. Social and emotional loneliness: an examination of Weiss's typology of loneliness. Journal of Personality and Social Psychology 46 (6), 1313–1321. Ryan, R.M., Deci, E.L., 2001. To be happy or to be self-fulfilled: a review of research on hedonic and eudaimonic well-being. In: Fiske, S. (Ed.), Annual Review of Psychology, vol. 52. Annual Reviews, Inc., Palo Alto, CA, pp. 141–166. Ryff, C., 1989. Happiness is everything, or is it? Explorations on the meaning of psychological well-being. Journal of Personality and Social Psychology 57 (6), 1069–1081. Schollhammer, H., 1982. Internal corporate entrepreneurship. In: Kent, C.A., Sexton, D.L., Vesper, K.G. (Eds.), Encyclopedia of Entrepreneurship. Prentice Hall, Englewood Cliffs, NJ, pp. 209–223. Schweiger, D., Goulet, P., 2005. Facilitating acquisition integration through deep-level cultural learning interventions: a longitudinal field experiment. Organization Studies 26, 1477–1499. Shane, S., 2000. Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science 11 (4), 448–469. Sherif, M., Harvey, O.G., White, J.J., Hood, W.R., Sherif, C.W., 1961. Intergroup Cooperation and Competition: The Robbers Cave Experiment. University Book Exchange, Norman, OK. Sine, W., Mitsuhashi, R., 2006. Revisiting burns and stalker: formal structure and new venture performance in emerging economic sectors. Academy of Management Journal 49 (1), 121–132. Singelis, T.M., Bond, M.H., Sharkey, W.F., Lai, C.S.Y., 1999. Unpackaging culture's influence on self-esteem and embarassability: the role of selfconstruals. Journal of Cross-Cultural Psychology 30 (3), 315–341. Snyder, C.R., Fromkin, H.L., 1980. Uniqueness: The Pursuit of Difference. Kluwer Academic, New York, NY. Spivey, E. 1990. Social exclusion as a common factor in social anxiety, loneliness, jealousy, and social depression: testing an integrative model. Unpublished master's thesis, Wake Forest University, Winston-Salem, NC. Stephens, G., 1984. Crossing internal career boundaries: the state of research on subjective career transitions. Journal of Management 20, 479–501. Stewart, A., 2003. Help one another, use one another: toward an anthropology of family business. Entrepreneurship Theory and Practice 27 (4), 383–396. Stinchcombe, A.L., 1965. Handbook of Organizations: Social Structure and Organizations. Rand McNally, Chicago, IL, pp. 142–193. Stone, A., 1982. The objectivity and subjectivity of life events. Journal of Clinical Psychology 38 (2), 333–340. Swann, W.B., 1987. Identity negotiation: where two roads meet. Journal of Personality and Social Psychology 53, 1038–1051. Swann, W.B., 2005. The self and identity negotiation. Interaction Studies: social behaviour and communication in biological and artificial systems. Special Issue: Making Minds I 6 (1), 69–83. Tajfel, H., Turner, J., 1979a. An integrative theory of intergroup conflict. In: Austin, W.G., Worchel, S. (Eds.), The Social Psychology of Intergroup Relations. Brooks/Cole, Monterey, CA, pp. 33–47. Tajfel, H., Turner, J.C., 1979b. An integrative theory of intergroup conflict. In: Austin, W., Worchel, S. (Eds.), The Social Psychology of Intergroup Relations. Brooks/Cole, Pacific Grove, CA, pp. 33–48. Tajfel, H., Turner, J.C., 1986. The social identity theory of intergroup behavior, In: Worchel, S., Austin, W. (Eds.), Psychology of Intergroup Relations, 2nd ed. Nelson-Hall, Chicago, pp. 7–24. Tambor, E.S., Leary, M.R., 1993. Perceived Exclusion as a Common Factor in Social Anxiety, Loneliness, Jealousy, Depression, and Low SelfEsteem. Working manuscript. Teal, E.H., Carroll, A.B., 1999. Moral reasoning skills: are entrepreneurs different? Journal of Business Ethics 19 (3), 229–240. Thoits, P.A., 1983. Multiple identities and psychological well-being: a reformulation and test of the social isolation hypothesis. American Sociological Review 48, 174–187. Triandis, H., Brislin, R., Hui, C., 1988. Cross-cultural training across the individualism–collectivism divide. International Journal of Intercultural Relations 12, 269–289. Turner, J.C., 1984. Social identification and psychological group formation. In: Tajfel, H. (Ed.), The Social Dimension: European Developments in Social Psychology, vol. 2. Cambridge University Press, Cambridge, England, pp. 518–538. Turner, J.C., 1985. Social categorization and the self concept: a social–cognitive theory of group behavior. In: Lawlor, E.J. (Ed.), Advances in Group Processes: Theory and Research, vol. 2. JAI Press, Greenwich, CT, pp. 106–134.

D. Shepherd, J.M. Haynie / Journal of Business Venturing 24 (2009) 316–337

337

Turner, J.C., Hogg, M.A., Oakes, P.J., Reicher, S.D., Wetherell, M., 1987. Rediscovering the Social Group: A Self-Categorization Theory. Blackwell, Oxford. Turner, J.C., Oakes, P.J., Haslam, S.A., McGarty, C., 1994. Self and collective: cognition and social context. Personality and Social Psychology Bulletin 20 (5), 454–463. Ucbasaran, D., Lockett, A., Wright, M., Westhead, P., 2003. Entrepreneurial founder teams: factors associated with member entry and exit. Entrepreneurship Theory and Practice 28 (1), 107–127. Ufuk, H., Ozgen, O., 2001. Interaction between the business and family lives of women entrepreneurs in Turkey. Journal of Business Ethics 31, 95–106. Vandervoort, D.J., 1996. Depression, anxiety, hostility, and physical health. Current Psychology: Development, Learning, Personality, Social 14, 69–82. Van Hiel, A., Mervielde, I., 2004. Openness to experience and boundaries in the mind: relationships with cultural and economic conservative beliefs. Journal of Personality 72 (4), 659–686. Verlinden, S., Hersen, M., Thomas, J., 2002. Risk factors in school shootings. Clinical Psychology Review 20 (1), 3–56. Vignoles, V.L., Chryssochoou, X., Breakwell, G.M., 2000. The distinctiveness principle: identity, meaning, and the bounds of cultural relativity. Personality and Social Psychology Review 4 (4), 337–354. Watson, W., Michaelson, L.K., Sharp, W., 1991. Member competence, group interaction, and group decision making: a longitudinal study. Journal of Applied Psychology 76, 803–809. West, G.P., 2007. Collective cognition: when entrepreneurial teams, not individuals, make decisions. Entrepreneurship Theory and Practice 31, 77–102. Wicker, A., Burley, K., 1991. Close coupling in work–family relationships: making and implementing decisions in a new family business and at home. Human Relations 44 (1), 77–92. Wiklund, J., 1999. The sustainability of the entrepreneurial orientation–performance relationship. Entrepreneurship Theory and Practice 24 (1), 37–48. Williams, K., Alliger, G., 1994. Role stressors, mood spillover, and perceptions of work–family conflict in employed parents. Academy of Management Journal 37 (4), 837–868. Wills, T.A., 1991. Similarity and self-esteem in downward comparison. In: Suls, J., Wills, T.A. (Eds.), Social Comparison: Contemporary Theory and Research. Erlbaum, Hillsdale, NJ, pp. 51–87. Yip, G.S., 1982. Barriers to Entry. Lexington Books, D.C. Heath and Company, Lexington, MA. Yli-Renko, H., Autio, E., Sapienza, H.J., 2001. Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms. Strategic Management Journal 22 (6–7), 587–613. Yusuf, A., 1995. Critical success factors for small business: perceptions of South Pacific entrepreneurs. Journal of Small Business Management 33 (1), 68–73. Zahra, S.A., 2003. International expansion of U.S. manufacturing family businesses: the effect of ownership and involvement. Journal of Business Venturing 18 (4), 495–512. Zahra, S., Kuratko, D., Jennings, D., 1999. Entrepreneurship and the acquisition of dynamic organizational capabilities. Entrepreneurship Theory and Practice 23, 5–10.