First time strategy formation of nascent entrepreneurs

We develop a model of first-time strategy formation of nascent entrepreneurs. In a longitudinal study, we examine factors that impact three strategic orientations of nascent entrepreneurs: prediction orientation, flexibility orientation and risk-return orientation. Subsequently, we analyze whether based on the three strategic orientations we can identify groups of founders that display similar strategic mindsets (i.e. combinations of strategic orientations). Based on longitudinal data, we discover that the strategic orientations of the nascent entrepreneurs are affected by their prior work experience, founding expertise and market dynamism. We further find that the strategic orientations facilitate the grouping of nascent entrepreneurs into three clusters with fairly time-stable strategic mindsets: the ambitious predictors, the flexible profit-seekers and the flexible risk-avoiders. The article presents theoretical and practical implications and offers insights regarding the measurements of key constructs.