Do Values Play a Role in Entrepreneurial Success

ABSTRACT Using the Rokeach Values Survey instrument, we find significant differences in the personal values of successful and unsuccessful entrepreneurs. In particular, successful entrepreneurs place higher emphasis than unsuccessful entrepreneurs on the values of freedom, independence, broadmindedness, and courage, and they place less emphasis on wisdom, obedience, politeness, and responsibility. A theoretical model is presented to explain the link between values and entrepreneurial success. INTRODUCTION Individual and cultural values have been of interest to business scholars for decades. Values have been linked to career choice (Katz, 1992), managers' goal choices (Schaeffer, 1986), strategic behavior (Bamberger, 1986; Olson & Currie, 1992), cross-cultural management differences (Connor, Becker, Kakuyama, & Moore, 1993), gender and socio-economic status (Rokeach, 1967), organizational performance (Cunningham, 1995), the championing process (Shane, 1994), job satisfaction (Blood, 1969), job motivation (Brown, 1976), differences between minority and nonminority entrepreneurs (Enz, Dollinger, & Daily, 1990), differences between managers and entrepreneurs (Fagenson, 1993), and differences between entrepreneurs and non-entrepreneurs (McGrath, MacMillan, & Scheinberg, 1992). It is not surprising that values have received so much attention in die management literature. Values shape attitudes, which in turn influence behavior and decision-making (Connor & Becker, 1994; England, 1967). Similar to attitudes (Robinson, Stimpson, Huefher, & Hunt, 1991), the study of values yields interesting and meaningful insights into the phenomenon of entrepreneurship. For example, entrepreneurs tend to exhibit unique value systems when compared to non-entrepreneurs or when compared to managers (Fagenson, 1993; McGrath, MacMillan, & Scheinberg, 1992). Therefore, it is surprising that researchers have neglected to directly investigate the relationship between individual values and entrepreneurial success. To our knowledge, there is no research investigating differences in values between successful and unsuccessful entrepreneurs. The literature suggests that values, through their influence on behavior and decision-making, are an important ingredient of success. Hence, the purpose of this paper is to investigate the value differences between successful and unsuccessful entrepreneurs. LITERATURE REVIEW The values literature includes many different definitions of values (for a review, see Connor & Becker, 1994). Despite the variety of conceptualizations of values, Rokeach's research established his view as one of the most compelling in the field. Rokeach defined values as "an enduring belief that a specific mode of conduct or end-state of existence is personally and socially preferable to alternative modes of conduct or end-states of existence" (Rokeach, 1968:160). Values are viewed as intrinsic, enduring, stable factors that influence an individual's behavior and choices, both directly and indirectly (Ravlin & Meglino, 1987; Rokeach, 1973). Research has found that values impact decision making tasks (Ravlin & Meglino, 1987) and behavior at work (England, 1967). In addition, previous work also establishes a relationship between values and occupational choice (Connor & Becker, 1994; Judge & Bretz, 1992; Vroom, 1966) and values and managerial success (England & Lee, 1974). These findings are consistent with the understanding that values have strong motivational components (Rokeach, 1968) and that values have an indirect influence on behavior and decision-making (Connor & Becker, 1994). Rokeach distinguished between terminal and instrumental values. Terminal values represent desired end-states; instrumental values represent methods and behaviors important to achieving those desired end-states (Rokeach, 1973). Subsequent research has demonstrated that respondents' ranking of values on the Rokeach scale are related to behavior and decision-making (Connor & Becker, 1994; England, 1967; Feather, 1982). …