Overcoming Market Competition: The Moderating Effect Of Entrepreneurial Self-Efficacy

Abstract

Existing literature shows that firms in industries which experience high competition typically have lower subsequent performance in various areas across the firm. Overcoming this competition is integral to firms which wish to persevere and experience prolonged success. Entrepreneurs that are particularly effective at overcoming competition can have higher individual characteristics which make them more successful than their competitors. I believe that one of these characteristics is self-efficacy. In the context of entrepreneurs, self-efficacy is known as entrepreneurial self-efficacy. In this study, I examine the moderating effects of entrepreneurial self-efficacy in relation to high perceived competition and subsequent firm performance. My theories and findings indicate that entrepreneurial self-efficacy attenuates the negative relationship between high competition and subsequent firm performance. The results prove the importance of high entrepreneurial self-efficacy in the business venture process.