Entrepreneurial passion and venture profit: Examining the moderating effects of political connections and environmental dynamism in an emerging market

Abstract

This article analyses the contingent factors which influence the relationship between entrepreneurial passion and venture profit. While research on entrepreneurial passion is burgeoning, studies that analyse contingent factors and boundary conditions surrounding entrepreneurial passion theory are sparse. Moreover, we know very little about how the influence of entrepreneurial passion on venture outcomes might vary in emerging markets, typically characterised by higher levels of bureaucratic involvement and institutional deficiencies. We extend entrepreneurial passion theory by testing a contingent model that evaluates the influence of political connections and environmental dynamism on the relationship between entrepreneurial passion and venture profit. More specifically, we examine the role of passion on venture profit and the moderating impact of political connections and perceived environmental dynamism. Using time-lagged data from 231 small businesses in Ghana, we find that political connections amplify the potency of passion as a driver of venture profit. In addition, we find that this interaction is conditioned by environmental dynamism; specifically, the moderating effect of political connections on the relationship between entrepreneurial passion and venture profit is stronger when dynamism is high. Our fine-grained analysis increases the conceptual scope and generalisability of entrepreneurial passion to non-Western contexts.