, Volume 45, Issue 4, pp 287–300 | Cite as

Personality characteristics and the process of start-up: the moderating role of institutional environment

  • M. KannadhasanEmail author
  • Pankaj Singh
  • Parikshit Charan
  • Pavan Kumar Balivada
Research Article


The study investigates the relationship between entrepreneur’s personality characteristics, i.e. need for achievement and internal locus of control, with the process of start-up. Besides, this study examines the role of risk propensity as a mediator in the relationship between personality characteristics and the process of start-up. Also, this study assesses the interaction effects of institutional environment on the relationship between risk propensity and the process of start-ups. Data were collected through a single cross-sectional survey from 478 entrepreneurs in India. The study used partial least squares approach to path modelling to examine the proposed relationship in the research model. After controlling the effects of risk propensity, the results reveal internal locus of control and need for achievement are significantly related to start-up process. Furthermore, the relationship between risk propensity and start-up was moderated by institutional environment. Findings of the study indicate the importance of personal characteristics in the process of start-up. The study also emphasizes how the institutional environment enhances the level of the process of start-up. Moreover, this study is useful in differentiating personality characteristics from non-entrepreneurs.


Needs for achievement Internal locus of control Institutional environment Risk propensity Start-up 

JEL Classification




Authors thank Mrs Bharathi and Mr Chanti Babu Ravupalli for their support during data collection.


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Copyright information

© Indian Institute of Management Calcutta 2018

Authors and Affiliations

  1. 1.Indian Institute of Management RaipurRaipurIndia
  2. 2.Institute of Management TechonologyHyderabadIndia

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