Coping-Dueling-Fit Theory of ADHD

Research Paper Title:

Towards a coping-dueling-fit theory of the ADHD-entrepreneurship relationship: Treatment’s influence on business venturing, performance, and persistence

Authors:

Nathan Greidanus (University of Manitoba, Asper School of Business)
Chi Liao (University of Manitoba, Asper School of Business)

Background:

ADHD is a neurodevelopmental disorder characterized by inattentiveness and/or hyperactivity and impulsivity. Diagnostic criteria include, among others, difficulty organizing tasks and activities, significant failure to pay close attention to detail, and making careless mistakes. While the symptoms of ADHD may be problematic for fitting a typical work environment, ADHD and its symptoms may be suited for the entrepreneurial process, and entrepreneurship as a vocation. This research stream seeks to understand whether entrepreneurship is a viable, possibly complementary, career choice for those with ADHD.

Methodology:

Sample: Panel Study of Income Dynamics (PSID), a longitudinal panel survey of U.S. families conducted by the Survey Research Centre at the University of Michigan and contains data on the demographic, economic, and social characteristics of a representative sample of U.S. households. Participant households were surveyed annually from 1968 to 1997 and biennially from 1999 to 2015. A supplement to the PSID was administered in 2014 that surveys PSID participants about childhood experiences. In particular, participants were asked whether or not they had ADHD during childhood as well as whether they were ever prescribed medication and/or saw a psychiatrist or psychologist to treat the ADHD.
The sample was restricted to individuals who participated in the 2014 supplement study, were at least 18 years old, and worked a positive number of hours in a year.
Sample Size: 7795 unique individuals who were observed for 9.6 survey waves on average resulting in a total sample of 74,848 individual observations.
Analytical Approach: Logistic regression, linear probability model, Ordinary least square (OLS) regressions, and negative binomial regression

Hypothesis:

1- The relationship between ADHD and overall business venturing is negatively moderated by receiving treatment for ADHD.

2(a)- Entrepreneurs with ADHD will have lower entrepreneurial performance than entrepreneurs without ADHD.
2(b)- The negative relationship between ADHD and entrepreneurial performance is positively moderated by treatment of ADHD.

3(a)- Entrepreneurs with ADHD will have shorter spells (less persistence) than entrepreneurs without ADHD.
3(b)- The negative relationship between ADHD and spell length is positively moderated by treatment for ADHD.

Results:

  • Those with ADHD who received treatment are 3.5 percentage points less likely to own a business relative to those with untreated ADHD.

  • Treatment positively moderates the relationship between ADHD and entrepreneurial performance. More specifically, those who received treatment for their ADHD have annual business incomes that are $24,003 higher on average relative to those diagnosed with ADHD but did not receive treatment.

  • Those who receive treatment for their ADHD have shorter spell lengths than those with ADHD but do not receive treatment.

Conclusion:

The authors examine the relationship between Attention Deficit and Hyperactivity Disorder (ADHD) and entrepreneurship with a specific focus on the influence of treatment. To guide their analysis, they develop the Coping-Dueling-Fit (CDF) theory as an extension to the dueling symptoms and person-environment fit perspectives. The CDF posits that ADHD symptoms' fit with entrepreneurship can act as both an asset and liability, and that coping, which the authors operationalize as treatment, serves to moderate this relationship to the benefit of the individual. The authors then test their hypotheses by drawing on unique data from the Panel Study of Income Dynamics and find that treatment moderates the relationships between ADHD and business venturing, performance, and persistence. A post-hoc analysis further explores nuances in the variety of ADHD including the influences of comorbidity with depression, treatment type, push and pull factors in entrepreneurial entry, as well as persistence in the face of negative performance.

 
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Informal Economy, Regulation & Productivity

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Entrepreneurial Actions and ‘Darker’ Motives.