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The artisans' dilemma: Artisan entrepreneurship and the challenge of firm growth
Journal article   Peer reviewed

The artisans' dilemma: Artisan entrepreneurship and the challenge of firm growth

Shelby J. Solomon and Blake D. Mathias
Journal of business venturing, Vol.35(5), 106044
09/2020
DOI: https://doi.org/10.1016/j.jbusvent.2020.106044
Web of Science ID: WOS:000571235100004

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Abstract

An increasing number of entrepreneurial ventures are growing at exponential rates despite their founders' professed intentions not to grow their firms. We refer to these individuals as artisan entrepreneurs. Through an inductive, phenomenon-based research approach, we explore how artisan entrepreneurs subscribe to a counter-institutional identity yet engage in a divergent set of behaviors. We discover that artisans' counter-institutional identity contains two sides—promoting the exclusion of ‘who we are not’ (oppositional identity) or providing support for ‘who we are’ (relational identity). We theorize that artisan entrepreneurs' differing views regarding their independence led to very different approaches to growth. When artisans either do not see forms of external control as impinging on their independence or sense that serving stakeholders is a means to perform relational identity work, they embrace growth. Thus, artisans may find that growth serves stakeholders, but funding growth brings about financial pressures, which may force the artisan down a path of growth. •We provide explanations for how and why artisan entrepreneurs significantly grow their ventures.•We highlight a new pathway to achieve venture growth, showing that de-emphasizing growth might represent a superior growth strategy.•We suggest that independence may be a credible means of authentication for firms.•We show recent technological and social changes have empowered artisans, rendering them highly entrepreneurial.•Our theoretical development of counter-institutional identity helps explain how and why artisan entrepreneurs embrace growth.

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