The Anatomy of Entrepreneurial Failure: Antecedents of the Performance Failure Appraisal Inventory and the Role of Social Support

Alamir Al-Alawi (), Sohail Amjed, Ahmed Mohamed Elbaz and Nasser Alhamar Alkathiri
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Alamir Al-Alawi: University of Technology and Applied Sciences, Salalah 211, Oman
Sohail Amjed: College of Economics and Business Administration, University of Technology and Applied Sciences, Salalah 211, Oman
Ahmed Mohamed Elbaz: College of Economics and Business Administration, University of Technology and Applied Sciences, Salalah 211, Oman
Nasser Alhamar Alkathiri: College of Economics and Business Administration, University of Technology and Applied Sciences, Salalah 211, Oman

Sustainability, 2023, vol. 15, issue 9, 1-16

Abstract: The purpose of this study is to investigate the impact of stress factors on entrepreneurial failure and to examine the relationship between prior entrepreneurial failure and future fear of failure. This study takes a novel approach by considering the moderating role of social support on this relationship. We employed the least squares–structural equation modeling (PLS-SEM) technique to analyze the responses of 162 failed entrepreneurs in Oman. Our findings demonstrate that stress factors in all four dimensions (managerial and planning elements, working capital, competitive environment, and growth and overexpansion) have a significant impact on entrepreneurial failure. Moreover, the results reveal that prior entrepreneurial failure is positively related to fear of failure. However, social support has a crucial moderating effect on the relationship between prior failure and present and future failure-related anxiety, reducing the influence of prior entrepreneurial failure on entrepreneurs’ fear of failure. This study contributes to the theoretical understanding of the antecedents and outcomes of entrepreneurial failure and offers practical implications for policymakers and practitioners seeking to promote entrepreneurship and reduce failure rates.

Keywords: entrepreneurship; Performance Failure Appraisal Inventory (PFAI); failure; fear of failure; Oman (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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