Consensus and conflict: Exploring moderating effects of knowledge workers on industry environment and entrepreneurial entry relationship

This article examines how knowledge workers in the labor force moderate the relationship between industry environmental conditions and entrepreneurial entry by using two competing streams of research: the consensus theory of employment and the conflict theory of employment. The two distinct literature streams provide competing predictions about knowledge workers' opportunity cost of entrepreneurial entry. Empirical analyses indicate that neither theoretical framework wholly explains the relationships for both munificent and complex environments. Rather, the application of each theory varies for different industry environments; the consensus theory applies to the complex environment, but the conflict theory is consistent with the munificent environment. Findings indicate that the characteristics of industry environments determine whether predictions from the consensus theory of employment or the conflict theory of employment are supported. This study also suggests that the two theoretical frameworks can be integrated to explain the relationships between industry environments and entrepreneurial entry in the knowledge-based economy.