Capabilities, entrepreneurial competencies, and success: some explorations

Abstract

Entrepreneurial competencies are a specific group of competencies that enable the entrepreneur to start and grow a venture and are relevant to ensure successful entrepreneurship (Man et al., 2002). The significant push within the Indian context towards a robust entrepreneurial ecosystem and greater entrepreneurial activity makes it imperative to look at the entrepreneurial competencies which are fundamental for business success and growth (Mitchelmore & Rowley, 2010). While the existing literature (Unger et al., 2011) relies on the investments in human capital for the development of entrepreneurial competencies, there is a developing perspective focussing on human development in terms of the notion of capabilities (Nussbaum, 2000; Sen, 1985). The capabilities encompass elements such as opportunities, freedoms, resources, and entitlements on which skill and ability development of individuals is contingent (Subramanium & Zimmerman, 2020). We are extending this perspective focussed on capabilities to understand their relationship with entrepreneurial competencies and success. The purpose of our study is multifold: (a) to examine the relationship between capabilities and entrepreneurial competencies; (b) to examine the relationship between central capabilities and success of entrepreneurs and to capture the role of entrepreneurial competencies in explaining this relationship; (c) to explore the influence of personal attributes and environmental factors on the interlinkages among entrepreneurial competencies and entrepreneurial success. The methodology adopted for this study is a multi-method approach, conducted in two phases. Within the first phase, an exploratory qualitative study was first conducted with entrepreneurs, to primarily identify and confirm the various capabilities, competencies, success dimensions and personal factors as applicable to entrepreneurs. The inputs from the qualitative study were used to identify the relevant sample and further develop the proposed conceptual framework. Thereafter, in the second phase, we conducted a quantitative study to examine the relationships between capabilities, entrepreneurial competencies, success, personal attributes and environmental factors in the form of a conceptual framework, within which we explored the mediating role of entrepreneurial competencies in the relation between capabilities and success; following which, we examined the moderating role of environmental factors. This study becomes relevant in today’s context wherein entrepreneurship can play an indispensable role in promoting economic growth (Singh et al., 2019). With the push for a more supportive entrepreneurial ecosystem and for incorporating capabilities perspective within HRM, this study contributes to the competencies literature by providing the framework for the development of entrepreneurial competencies through the capabilities perspective.