Modelling Owner Experience: Linking Theory and Practice

This paper reports on the findings of research that seeks to construct and test an owner experience index. By doing so, the relationships among stage of firm, years of management experience (stock) and breadth (diversity) of experience are also examined. The latent structure of experience is best described by a six-factor solution, the dimensions of which include: small firm, operational, fiscal, marketing, technology, and innovation management. Contrary to previous research, this study suggests that, with the exception of technology-related experience, all dimensions of experience are stable across stage of firm. At the variable level, adopting new technology, new product development, on-line communications, promotions and advertising, and software skills have the highest discrimination power between business owners who intend to grow the firm and those who do not. The implications for future research are considered.