Bad Vision, No Growth - An Empirical Study of the Relationship between Founders’ Growth Motivation, Vision Statements and Venture Growth at Internet Start-ups

Master Thesis - Daniel Zaleski

Master's Thesis , 2011 , 81 Pages , Grade: 2,5

Business economics - Company formation, Business Plans

ABSTRACT

This study seeks to identify the relationship between founder motivation, vision statements, and venture growth at small internet firms. Based on a review of small firm growth, motivation, and vision theory, five hypotheses are developed. To empirically test these hypotheses, data was collected with a self-administrated online survey from 75 founders of small internet firms and 56 unique vision statements.

The main findings from hierarchical multiple regression analysis reveal that Venture growth, measured by employment, is positively related to founder Growth aspiration and Vision attributes. Merely having a vision statement or including growth-related content is not associated with higher growth. However, the quality of a vision statement, as measured by several effectiveness attributes is positively related to venture growth. The perception of vision statements is very firm-specific, and perception gaps caused by founder and objective key-word evaluation are not significantly related to venture growth. The challenge for future research lies in developing more over-arching conceptualizations for the phenomenon of firm growth, but also in capturing the frequency and extent to which vision communication takes place at small firms.

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Inhaltsverzeichnis (Table of Contents)

• ABSTRACT
• TABLE OF CONTENTS
• INDEX OF FIGURES
• INDEX OF TABLES
• INTRODUCTION
• PART 1: THEORY AND HYPOTHESES
• 1.1 Growth
• 1.1.1 Entrepreneurship and growth
• 1.1.2 The definition of firm growth
• 1.1.3 Conceptualization of growth at firms and the unit of analysis
• 1.1.4 The use of historical growth and current founder's motivation
• 1.1.5 Measures of growth
• 1.1.6 Growth models
• 1.1.7 Growth patterns
• 1.1.8 Determinants of growth
• 1.2 Motivation
• 1.2.1 Motivation theories
• 1.2.2 Content theories of motivation
• 1.2.3 Process theories of motivation
• 1.2.4 Theory of reasoned action
• 1.2.5 Theory of planned behavior
• 1.2.6 Motivation as main determinant of entrepreneurship process and growth
• 1.3 Vision
• 1.3.1 Vision definition
• 1.3.2 The implementation of a vision statement strategy, mediators and moderators
• 1.3.3 Vision attributes
• 1.3.4 VisionPlex®'s Seven Key Dimensions as extension of traditional vision attributes
• 1.3.5 Vision content
• 1.3.6 Building effective vision statements
• 1.3.7 Vision communication
• PART 2: METHODOLOGY
• 2.1 Research model
• 2.2 Questionnaire and measurement instruments
• 2.3 Questionnaire design and means to reduce non-response error
• 2.4 Translation and Pilot study
• 2.5 Population and Respondents
• 2.6 Calculating firm growth
• 2.7 Calculating growth aspiration, vision attributes, vision content, and vision attribute gap
• 2.8 Internal consistency of Constructs
• PART 3: RESULTS
• 3.1 Descriptive statistics and correlations
• 3.2 Multiple Linear Regression Analysis
• 3.3 Hierarchical multiple linear regression model building
• PART 4: DISCUSSION AND CONCLUSION
• PART 5: LIMITATIONS AND RECOMMENDATIONS FOR FUTURE RESEARCH
• REFERENCES
• APPENDIX
• Questionnaire
• Vision statements with key words
• Evaluation of Vision Statements

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study aims to investigate the relationship between founder motivation, vision statements, and venture growth at small internet firms. It seeks to understand how these factors influence the growth trajectory of these businesses. The study utilizes a quantitative approach, employing a self-administered online survey to collect data from 75 founders of small internet firms and 56 unique vision statements.

• The impact of founder motivation on venture growth
• The role of vision statements in driving venture growth
• The relationship between vision statement attributes and venture growth
• The influence of vision statement communication on venture growth
• The perception of vision statements and its impact on venture growth

Zusammenfassung der Kapitel (Chapter Summaries)

The first part of the thesis lays the theoretical foundation for the study. It explores the concepts of firm growth, motivation, and vision, drawing on existing literature and theories. The chapter on growth examines various definitions, measures, models, and determinants of firm growth, highlighting the importance of entrepreneurship and growth in the context of small firms. The chapter on motivation delves into different theories of motivation, including content and process theories, and explores the role of motivation in driving entrepreneurial activity and firm growth. The chapter on vision defines vision statements, their implementation, attributes, content, and communication, emphasizing the importance of effective vision statements in guiding and motivating firms towards their goals.

The second part of the thesis focuses on the methodology employed in the study. It outlines the research model, the questionnaire design, the data collection process, and the measures used to assess the variables of interest. The chapter discusses the population and respondents, the calculation of firm growth, and the assessment of growth aspiration, vision attributes, vision content, and vision attribute gap. It also addresses the internal consistency of the constructs used in the study.

The third part of the thesis presents the results of the study. It provides descriptive statistics, correlation analysis, and multiple linear regression analysis to examine the relationships between the variables. The chapter explores the impact of founder motivation and vision statement attributes on venture growth, highlighting the key findings and insights derived from the data analysis.

Schlüsselwörter (Keywords)

The keywords and focus themes of the text include venture growth, founder motivation, vision statements, internet startups, small firms, entrepreneurship, growth aspiration, vision attributes, vision content, vision communication, and perception of vision statements. The study explores the relationship between these factors and their impact on the growth trajectory of small internet firms.

• College: Maastricht University
• Course: International Business Entrepreneurship
• Grade: 2,5
• Author: Daniel Zaleski (Author)
• Publication Year: 2011
• Pages: 81
• Catalog Number: V183875
• ISBN (eBook): 9783656086161
• ISBN (Book): 9783656086420
• Language: English
• Tags: Venture Growth, Entrepreneurship, Motivation, Vision statement, startups, Daniel Zaleski, Growth Motivation, www.danielzaleski.de