Effect of Entrepreneur Network, Behavioral, and Personality Traits on Enterprise Performance: A Study of Rural Artisan Clusters, India

Abstract

This study examines the impact of entrepreneurial network structure (density and centrality), network type (internal network and external network), behavioral attribute (entrepreneurial self-efficacy), and personality traits (extraversion, agreeableness, emotional stability, conscientiousness, and openness) on enterprise performance (subjective performance and sales). The sample consisted of 152 micro and small enterprises in two textile handloom clusters in Madhya Pradesh, India. Hierarchical regression analysis results suggested that centrality, internal network, entrepreneur self-efficacy, extraversion, conscientiousness, and emotional stability together accounted for about 68 per cent in subjective performance. Whereas, centrality, external network, entrepreneur self-efficacy, extraversion, and conscientiousness together accounted for about 53 of the variance in sales. Contrary to the expectation, conscientiousness and emotional stability were negatively associated with Sales. Density, Agreeableness and Openness to experience were unrelated to sales. Results are explained by taking interdisciplinary theoretical support from the theory of social network, cluster theory, entrepreneur cognitive theory and personality trait theory. The research has implications for policy making, research, and entrepreneurship training and education.