Rethining Entrepreneurial Performance: Value Creation in Entrepreneurial Ventures from a Human Development Perspective

This dissertation investigates entrepreneurial performance from a broader perspective that incorporates both economic and non-economic consequences. Combining concepts from stakeholder theory and capability approach in welfare economics, it examines various issues of value creation from a human development point of view. The first part theoretically develops the concept of “Stakeholder Capabilities” as a unit of value creation and value assessment. It investigates current practices in entrepreneurial performance measurement by reviewing extant literature, categorizes several dimensions of performance and proposes a measurement framework based on changes in stakeholder capabilities. The second part is a qualitative study comprised of 11 in-depth interviews of entrepreneurs. The entrepreneurs are founders of either Inc. 500 companies or B- Corporations. Both groups are deemed successful by third party recognition on differing parameters of success and this differentiation is a practical example of the separation thesis. It aims to understand the nature and type of value creation for different stakeholders and also to see if this separation by stakeholder vs. shareholder orientation matter at the ground level or not. The final part of the dissertation builds on the earlier two by discussing how and why taking cognizance of stakeholder capabilities matters for business and society, highlights contributions, limitations and potential research avenues.