The relationship between employee propensity to innovate and their decision to create a company

Abstract

The main objective of this paper is to analyze the relationship between the decisions by employees’ to initiate a new venture, whilst continuing in employment. Based on survey data collected from employees working for a public organization, we provide evidence that an analysis of individuals’ propensity to innovate, provides an insight into entrepreneurial intention which increases in probability where there is a lower opportunity cost. This study contributes to the growing empirical literature on entrepreneurial intentions which currently lacks focus on employed potential entrepreneurs.