Necessary Conditions and Theory-Method Compatibility in Quantitative Entrepreneurship Research

All-or-nothing necessary conditions are critical for the unfolding of subsequent entrepreneurial outcomes. A condition is necessary when an entrepreneurial outcome emerges only in the presence or absence of that condition. While a necessary condition does not guarantee the outcome, it makes the outcome possible by virtue of its theoretical necessity. We discuss the philosophical roots and importance of necessary conditions in entrepreneurship. We offer an empirical illustration of necessary condition analysis using founder's experience, a critical concept in entrepreneurship. We argue that theory-method compatibility in entrepreneurship research can be enhanced by explicitly accounting for necessary conditions.