Performance variability, prior failure experience and entrepreneurs’ physical health

Abstract

Purpose

Past studies have mainly concentrated on the impact of stress and self-employment on physical health. However, little research has paid attention to firm-level determinants of entrepreneurs’ physical health. This study aims to investigate the relationship between performance variability and entrepreneurs’ physical health as well as the moderating effect of prior failure experience.

Design/methodology/approach

This study uses data drawn from 255 start-ups across the Bohai Economic Rim in China over a period of three years (2015–2017). The results are still robust after several robustness checks.

Findings

Results show that performance variability is positively related to the probability of entrepreneurs showing poor health. This confirms that performance variability has an adverse effect on entrepreneurs’ physical health. Moreover, this relationship is moderated by the prior failure experience of entrepreneurs.

Practical implications

First, entrepreneurs should gain more information about the firm’s daily operation to reduce the potential threat of performance variability. Second, it is imperative for entrepreneurs to build a stable relationship with their stakeholders to avoid the potential costs related to performance variability. Finally, entrepreneurs should take health consequences into consideration when making strategic decisions.

Originality/value

First, this paper contributes to the studies on the antecedents of entrepreneurs’ physical health by introducing a firm-level determinant (i.e. performance variability). The findings enhance the understanding of the association between entrepreneurs and new ventures. Second, this paper also enriches the extant literature on the outcomes of performance variability. Finally, this paper attempts to offer new insights into prior failure experience by establishing its moderating effect on the performance–health relationship.

Citation

Lin, S. and Zhang, R. (2024), "Performance variability, prior failure experience and entrepreneurs’ physical health", Chinese Management Studies, Vol. 18 No. 4, pp. 897-920. https://doi.org/10.1108/CMS-02-2023-0052