Entrepreneurial knowledge and start-up behavior in a turbulent environment

Purpose The purpose of this paper is to refine the relationship between environmental turbulence and start-up behavior by considering entrepreneurial-related antecedents (alertness to business ideas, entrepreneurial opportunities, and intention toward entrepreneurship) and moderating roles of entrepreneurial knowledge. Design/methodology/approach The study was conducted through a self-administered survey of owner/managers of SMEs in Pakistan. Correlation, moderated hierarchical regression, and structural equation modeling approach were used for the analysis. Findings The results revealed that environmental turbulence positively affects the alertness to business ideas and entrepreneurial opportunities which, in turn, affect intention toward entrepreneurship. The results also suggested that entrepreneurial knowledge significantly moderates the relationship between intention toward entrepreneurship and start-up behavior. Research limitations/implications The changes in the market and technologies which shape the entrepreneurial behavior toward start-up activities should be longitudinally observed. The research data came from the owner/managers of SMEs industries; therefore, the findings may not be generalized to other sectors due to industry-specific difference. Practical implications The positive impact of environmental turbulence suggests that turbulence is a presentiment signal, calling upon the entrepreneurs to collect meaningful information as well as identify new opportunities and adjust their capabilities for any challenges and changes ahead. Originality/value The study confirmed the positive impact of environmental turbulence toward the creation of new ventures in the context of developing economies as well as the moderating role of entrepreneurial knowledge on the relationship between intention toward entrepreneurship and start-up behavior in small and medium enterprises.