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Abstract

Judgment and decision-making research has a long tradition in management and represents a substantial stream of research in entrepreneurship. Despite numerous reviews of this topic in the organizational behavior, psychology, and marketing fields, this is the first review in the field of entrepreneurship. This absence of a review of entrepreneurial decision making is surprising given the extreme decision-making context faced by many entrepreneurssuch as high uncertainty, time pressure, emotionally charged, and consequential extremesand the large number of studies in the literature (e.g., 602 articles in our initial screen and 156 articles in a refined search). In this review, we (1) inductively categorize the articles into decision-making topics arranged along the primary activities associated with entrepreneurshipopportunity assessment decisions, entrepreneurial entry decisions, decisions about exploiting opportunities, entrepreneurial exit decisions, heuristics and biases in the decision-making context, characteristics of the entrepreneurial decision maker, and environment as decision context; (2) analyze each context using a general decision-making framework; (3) review and integrate studies within and across decision-making activities; and (4) offer a comprehensive agenda for future research. We believe (hope) that this proposed review, integration, and research agenda will make a valuable contribution to management scholars interested in decision making and/or entrepreneurship.

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... However, despite the high amount of literature produced about heuristics and traps in EDs, witnessed by related review articles (Cossette, 2015;Shepherd et al., 2015;Zhang and Cueto, 2017;Arend, 2020a;2020b;De Winnaar and Scholtz, 2020), some important questions still need answers. Specifically, as maintained by Shepherd et al. (2015; p. 22): "future contributions are likely to come from research detailing the types of heuristics used, how these are formed and triggered, and the benefits generated […]. ...
... However, despite the high amount of literature produced about heuristics and traps in EDs, witnessed by related review articles (Cossette, 2015;Shepherd et al., 2015;Zhang and Cueto, 2017;Arend, 2020a;2020b;De Winnaar and Scholtz, 2020), some important questions still need answers. Specifically, as maintained by Shepherd et al. (2015; p. 22): "future contributions are likely to come from research detailing the types of heuristics used, how these are formed and triggered, and the benefits generated […]. To the extent future research reveals benefits from heuristics, we can worry less about biases and focus more on when to use heuristics and how one develops, learns, adapts, and communicates heuristics". ...
... Second, generating initial codes: communication messages have been coded according to a mixed approach (Braun and Clarke, 2006) based on both deductive analysis (by which communication messages are thematized according to an initial codebook) and inductive analysis (by which new themes are free to emerge). The initial codebook was composed by the type of heuristic (availability heuristic, representativeness heuristic, affect heuristic, and anchoring-and-adjustment heuristic;Shepherd et al., 2015;Zhang and Cueto, 2017), while the emerging codes were related to the features of the decision context (N. of issue-related cues, N. of not-issue-related cues, social environment). Third, searching for themes: codes were analyzed and combined to form overarching themes that, in this case, have been found as the outcome of the implementation of heuristics -i.e., positive, negative or mixed. ...
... This temporal nature is crucial to entrepreneurial actions and the performance of the ventures (Chen & Hambrick, 1995;Delmar & Shane, 2004). Since resources are an essential part of opportunity evaluation decisions by nascent entrepreneurs (Haynie, Shepherd, & McMullen, 2009), the speed of resource acquisition is therefore critical to new venture emergence (Shepherd, Williams, & Patzelt, 2015;Delmar & Shane, 2004). Indeed, resource acquisition and leveraging are at the center of the transition from opportunity recognition to opportunity exploitation (Webb, Kistruck, Ireland, & Ketchen, 2010;Grégoire, Corbett, & McMullen, 2011). ...
... Prior research has focused on the efficiency of resource acquisition (Kamarudin, Nassir, Yahya, Said, & Nordin, 2014;Sufian & Kamarudin, 2014), indicating an emphasis on the temporal dimension, or speed. Indeed, the speed of entrepreneurial actions is critical to new venture emergence (Shepherd et al., 2015), and its survival and performance (Chen & Hambrick, 1995;Delmar & Shane, 2004). ...
... Resource acquisition is the key to opportunity exploitation (Haynie et al., 2009;Webb et al., 2010) and new venture emergence (Shepherd et al., 2015;Yu & Wang, 2021). In emerging economies, an identified opportunity may be exploited by competitors quickly (Qin et al., 2017), as scarce resources controlled by the government may be obtained by rivals due to the lack of transparency in resource allocation in weak institutional environments (Child & Yuan, 1996). ...
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Venture creation is an entrepreneurial process initiated by nascent entrepreneurs to identify and exploit opportunities. Beliefs of opportunity feasibility are found to facilitate new venture emergence in developed economy contexts. This paper examines how opportunity beliefs influence venture creation in an emerging economy context. The results of the Chinese Panel Study of Entrepreneurial Dynamics show that opportunity beliefs are negatively related to new venture emergence and the speed of resource acquisition, respectively. Further, entrepreneurs’ bribery behavior moderates the relationship between opportunity beliefs and the speed of resource acquisition. Our research provides important theoretical and policy implications for entrepreneurs and policy makers, especially in emerging economies.
... Traditionally, entrepreneurial decision-making is primarily based on an individual's subjective recognition of opportunities and their personal judgment concerning the value of different combinations of resources when recognising an opportunity (Foss et al., 2008;Ramoglou and Tsang, 2016). To fully understand the decisionmaking processes made by a BoD, a multi-subject entrepreneurial decision-making approach must be used (Shepherd et al., 2015;Caputo and Pellegrini, 2020;Pappas et al., 2021). From a collective perspective, the synergy of multiple subjects' judgments can shape a more holistic entrepreneurial vision about decision-making . ...
... These individuals influence the decision-making process in various ways. This responds to calls for further inquiry with regards to entrepreneurial decision-making from a multi-subject perspective (Gartner et al., 1994;Shepherd et al., 2015) and is distinct from the traditional single-subject focus on decision-making. Secondly, our results shed more light on gender diversity and female directors' roles in relation to the decision-making process. ...
... Gender diversity is generally evaluated positively, composing dissimilar assessments of market contingencies (Davis et al., 2010;Ye et al., 2019). Indeed, entrepreneurial decision-making is based on individual understandings of contexts and subjective cognitions regarding opportunity recognition (Foss et al., 2008;Shepherd et al., 2015). This can lead to an improved assessment, as well as alternative interpretations of the market situation (Ye et al., 2019). ...
Article
Purpose An increased globalisation pushes forward the study of international entrepreneurship that however has been mainly analysed at a macro-environmental and an individual level. The authors want instead identify the determinants of international entrepreneurship from a firm-level perspective, specifically in relation to the key decision-making entity – the board of directors. The authors focused on the overall composition of the board of directors in terms of gender diversity and how this affects multi-subject decision-making when it comes to international entrepreneurship. Design/methodology/approach Based on entrepreneurial decision-making and the neo-institutional theory, the authors analyse the relationship between gender diversity in boards of directors and firms' international entrepreneurship, assessing how state ownership and ownership concentration moderate this relationship. Using a sample made up of China's listed companies from 2009 to 2018, the authors empirically test the main effect and the moderating effects. Findings International entrepreneurship is less prevalent in firms with more female directors, but in terms of quality of the decisions, these boards perform better. State ownership and ownership concentration can strengthen and weaken the relationship between the presence of female directors and the intensity of international entrepreneurship, respectively. Originality/value Firstly, the authors draw attention to the implications of gender diversity in boards of directors, calling for further studies on communication and collaboration patterns within multi-subject decision-making. Secondly, the authors’ conclusions enrich academic literature on female directors by exploring the roles they play in firms' decision-making when it comes to international entrepreneurship.
... This paper aimed at explaining the critical role played by heuristics and optimism in the entrepreneurial behaviour of the intrapreneurs 'now turned' entrepreneurs through their journey in the entrepreneurship process. However, the study drew references from Shepherd et al. (2015) in evaluating the cognitive factors (heuristics and optimism inclusive) that affected the entrepreneur's decisions in their entrepreneurial activities. These activities include opportunity evaluation, entrepreneurial entry and opportunity utilisation/exploitation. ...
... Notwithstanding, entrepreneurs operating with a balanced level of optimism will rely more heavily upon heuristics in applying less effort toward gaining new information with which to make sense and partake in unsolicited risktaking (Klayman et al., 1999;Akinbinu et al., 2020;Nguyen, 2020). In the articles reviewed by Shepherd et al. (2015), heuristics played a role in influencing entrepreneur's decision-making process, Adomako et al. (2016) observed that optimism impacts on entrepreneurial behaviour. The duo cognitive factors (heuristics and optimism) impact the entrepreneurs' behaviour or action and must be measured since in this study, entrepreneurial behaviours cannot be evaluated directly, except by adopting cognitive variables. ...
... Qualitative-wise, heuristics and optimism are cognitive factors that favourably affect the development of entrepreneurship in their entrepreneurial path towards entrepreneurship. Therefore, entrepreneurs should be guided by the need to identify and embrace heuristics and optimism as cognitive factors that could enhance the developmental process that leads to entrepreneurship (Shepherd et al., 2015). ...
... Although entrepreneurial persistence may result in underperforming firms that become a drain on societal resources in the long term (Meyer and Zucker, 1989), it is also a key factor that leads entrepreneurs to pursue and exploit business opportunities, realizing potential long-term economic returns (Adomako, 2020;Caliendo et al., 2020). Despite its significance and related implications, entrepreneurial persistence decision making has received scarce attention in the entrepreneurship literature (Chirico et al., 2020;DeTienne, 2010;Holland and Shepherd, 2013;Shepherd et al., 2015). ...
... Complementing prior research on entrepreneurs' cognitive ability (Shepherd et al., 2015), we examine the cognitive process of how entrepreneurs gather and process information when making persistence decisions by focusing on two key aspects: (1) rational decision making that indicates the cognitive style of how entrepreneurs collect and process information; ...
... Only participants who met all criteria were directed to begin the online experiment. We limited our sample to SMEs to control for the potential effect of the entrepreneurial decision context (Shepherd et al., 2015); that is, the potential differences in decision making of entrepreneurs compared to large organizations in which resource constraints may be less of an issue. ...
Article
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We theorize that both highly rational entrepreneurs and entrepreneurs with a high need for cognitive closure (NFCC) are likely to put more emphasis on retrospective factors (period and degree of underperformance, personal investments) and less on prospective factors (risk of going into default, potential for growth, personal options) when deciding whether to persist with an underperforming venture. Our findings from three discrete choice experiments with three independent samples of entrepreneurs (a sample of 176 Australian entrepreneurs; a narrow-replication with 128 Australian entrepreneurs; and a quasi-replication with 157 United Kingdom entrepreneurs) consistently show that entrepreneurs who perceive themselves as rational do not always demonstrate rational behavior and entrepreneurs with a high NFCC put more emphasis on retrospective factors in persistence decisions. Important theoretical and practical contributions flowing from our study are shared in the concluding section.
... Second, high financial munificence reduces motivation for cost-saving and resource efficiency and leads to two consequences that may limit the effectiveness of R&D: (1) reduced motivation to save results in unnecessary wastes of time and money during R&D processes, which reduces investment efficiency; (2) while cost-saving efforts can lead to learning benefits re the creative use, reuse, and recombination of resources at hand (Baker & Nelson, 2005), such benefits fade if the new venture has low motivation for cost-saving. To fully utilize R&D investments, new ventures should proactively learn new knowledge through the process of searching, combining, and utilizing various resources (Alvarez & Busenitz, 2001;Senyard et al., 2014). However, when financial resources are munificent, stretching every coin becomes less urgent and new ventures become less efficiency-oriented, thereby undermining resourcing efforts (Bradley et al., 2011;Manzaneque et al., 2020). ...
... Previous entrepreneurship literature mostly focuses on the benefits of financial resources and suggests that such resources are critical to new venture growth and survival by enabling entrepreneurs to execute strategic objectives, launch ambitious plans or strategic initiatives, and enhance strategic flexibility and resilience in the face of volatility (Gilbert et al., 2006;Hsu & Ziedonis, 2013). We echo previous qualitative works on the merits of resource constraints which suggest that resource limitations compel firms to seek novel solutions, new combinations of available resources, and more efficient ways of deploying resources (Baker & Nelson, 2005;Mosakowski, 2017;Senyard et al., 2014;Stenholm & Renko, 2016;Welter et al., 2016). Unlike ventures with munificent resources, financially constrained ventures find ways of "making do" with limited resources. ...
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Plain English Summary While capital is essential for new ventures to innovate and survive, is having more of it always good? Our research shows “No” because more money may “spoil the child” by reducing the benefits that new ventures enjoy from R&D investment. We analyzed 791 new technology ventures across six years and found evidence of a side effect of munificent financial resources, such that when ventures have high levels of financial munificence, they garner fewer survival benefits from increasing R&D. This side effect is weakened when ventures have CEOs who are more experienced, highly educated, or female. These findings extend previous research on the limitations of financial munificence by showing its negative moderating effect on the R&D–survival relationship. For entrepreneurs and venture capitalists in the industry, we advise caution regarding the role of abundant financial resources in new ventures.
... We decided to limit the review to the broad entrepreneurship literature, and following Shepherd, Williams, and Patzelt (2015), we used criterion sampling (Patton 1990). We conducted our search in five well-established entrepreneurship journals: Entrepreneurship Theory and Practice, Entrepreneurship and Regional Development, the Journal of Business Venturing, the Journal of Small Business Management and the Strategic Entrepreneurship Journal. ...
... The choice of these five journals was guided by other literature reviews conducted within the field of entrepreneurship (cf. Shepherd, Williams, and Patzelt 2015). However, from the initial search, we also identified and included three additional entrepreneurship journals that have published a large share of the articles (2005-March 2020): the International Journal of Entrepreneurial Behaviour and Research, the International Journal of Entrepreneurship and Small Business, and the International Journal of Gender and Entrepreneurship. ...
... However, underlying mechanisms of the emotional effects, i.e., how emotion affects entrepreneurs' cognitive process in strategic decision-making from a micro-foundational perspective, remain little understood. This is partly because of the limitations of traditional research methodologies, and thus new techniques are required to directly measure emotional responses and in-the-moment cognitive processes (Baron and Ward, 2004;Grégoire et al., 2011;Mitchell et al., 2002Mitchell et al., , 2014Shepherd and Zacharakis, 2002a,b;Shepherd et al., 2015). ...
... The exploration of entrepreneurial cognition, i.e., the aspects and roles of cognition in entrepreneurial processes and settings, is a common research pursuit (Baron and Ward, 2004;Grégoire et al., 2011;Mitchell et al., 2002Mitchell et al., , 2014Shepherd and Zacharakis, 2002a,b;Shepherd et al., 2015). In particular, studies have examined the complexity of cognition in entrepreneurs compared with that in non-entrepreneurs, and aspects of various decision-making processes. ...
Article
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Emotion significantly affects strategic decision-making by entrepreneurs in family business organisations (FBOs). This paper proposes a cognitive framework of management in FBOs that emphasises the importance of emotion, based on a micro-foundational perspective: that is, an integrated hierarchy of cognitive processes underlying FBOs’ strategic decision-making and their interactions with external affective events. Previous studies that used traditional behavioural methodologies are reviewed with reference to the proposed cognitive framework to highlight importance of understanding effect of emotion-cognition interactions on entrepreneurs’ strategic decision-making process. New techniques using biological, physiological, and neuroscientific tools are then introduced as complementary methods for this line of research. Finally, future research directions are discussed with a focus on implicit cognitive processing, complex emotions, and cognitive interventions.
... The entrepreneurship implies decision-making in times of great uncertainty, which makes risk taking an integral part of entrepreneurial activity (Shepherd et al., 2015). However, successful entrepreneurs take only calculated risks (Palanivelu & Manikandan, 2015), considering all available information from reliable sources, as well as relying on knowledge and previous experience when making business decisions. ...
... Previous academic literature suggests that rational and risky decision-making depends on the involvement of entrepreneurs in the process (Deligianni et al., 2016;Shepherd et al., 2015). It is well known that entrepreneurs may act as owners, but also as managers (Velu & Jacob, 2016) and that there are a large number of cases in which these roles are separated or combined. ...
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This paper assesses the ways in which the characteristics of entrepreneurs from transition economies, and the extent to which they participate in making business decisions, affect their propensity to make rational/risky decisions in a work environment. A multicontextual analysis of entrepreneurial decision-making is provided, facilitating a better understanding and the further advancement of entrepreneurship in the transition countries of Montenegro and Serbia. Logistic regression and a Structural Equation Model (SEM) were used to assess data collected from a stratified random sample of 260 entrepreneurs. The results reveal that the demographic characteristics of entrepreneurs have a significant impact on their propensity to make rational/risky decisions. Elderly entrepreneurs with more years of service are more prone to make rational decisions in comparison to younger entrepreneurs, who lack business experience and thus rely on intuition, leading to risky decision-making. Additionally, the results show that the more involved entrepreneurs are in the decision-making process, the more risky decisions will be made; while more employee inclusion leads to business decisions based on rational thinking. The results also reveal that entrepreneurs in transition economies have formed attitudes towards the nature of entrepreneurial activity. Finally, these results reveal that entrepreneurs who consider levels of economic development, national culture, and intuition to be important when making business decisions are more prone to implement risky decisions. Considering the obtained results, this paper provides guidelines for the future research of this issue in transition countries and other developing economies.
... Nonetheless, some scholars believe that higher levels of human capital may result in higher opportunity costs for potential entrepreneurs. These higher costs may make pursuing entrepreneurial opportunities less appealing (Shepherd et al., 2015). ...
Article
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Entrepreneurship is a highly complex process influenced by numerous factors. The goal of this paper is to identify the combinations of fundamental entrepreneurial determinants that drive opportunity recognition (OR) in different economic environments. We focus on two points in Tunisia’s recent economic cycle: before and after the 2011 Revolution. Using micro-level survey data, the study employs ordered logit analysis to identify basic entrepreneur characteristics that may increase the likelihood of identifying entrepreneurial opportunities during these two economic cycle phases. Several key factors, such as training, creativity, and social networks, are found to be ineffective in the OR process. Furthermore, education attainment lost its major and well-established function throughout Tunisia’s profound and protracted socioeconomic crisis. Only self-efficacy and prior experience have particularly strong effects on identifying entrepreneurial opportunities during the period of economic downturn. Despite the government's efforts to incorporate entrepreneurship education into university curricula and business practices, these findings show that Tunisia is still in the early phases of entrepreneurship integration and development, with patchy and uncoordinated activity. The drivers of entrepreneurial perception in the quest for opportunities described by western theories should not be applied uniformly in less developed economies, which have unique political and economic contexts and challenges. We also noticed that the revolution’s resulting crisis did not deter young entrepreneurs from launching business ventures. This finding may pique the Tunisian government’s interest in devising an effective strategy to support young entrepreneurship, especially in light of the new COVID-19 outbreak’s potential impact on Tunisia’s already vulnerable economy.
... While the exploration of fear of failure in the IB literature is still scant, this topic receives great interest from entrepreneurship scholars. For instance, fear of failure is one of the antecedents to decision-making (Shepherd et al., 2015) with subsequent effect on influencing entrepreneurs' actions throughout the entrepreneurship process (Ucbasaran et al., 2009;Cacciotti et al., 2016). ...
Article
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The road to internationalisation is paved with risk, uncertainty, the possibility of failure, and the Coronavirus Disease-19 (COVID-19) phenomenon. However, the process of internationalisation (IP) theory treats an individual decision-maker as a “black box.” Emotions are largely ignored by international business (IB) researchers. This study offers conceptual thoughts on the role of fear of failure in the process of internationalisation. It argues that managers experience this emotion in making internationalisation decisions for a firm, which is an area of study that requires further understanding. Following the content analysis method in the literature review and a theory-based adaptation approach to complete the conceptualisation, this manuscript joins the scholarly conversations on “connecting the IP model to people” and “emotion and internationalisation.” Focussing on fear of failure as a new perspective, this manuscript contributes to IB literature by suggesting new avenues in understanding decision-making about international activities by embracing psychological insights. It also contributes to IB practitioners by offering implications for understanding one’s emotional state and its effect on decision-making about internationalising ventures.
... The need to structure uncertainty and entrepreneurial actions undertakings Given the criticality of making accurate decisions under uncertainty, studies have tried to understand how, when, where, and by whom new products are explored, assessed, and leveraged (Shane & Venkataraman, 2000). There has been an increasing effort to describe the entrepreneurial decision-maker and the environment as a decision-maker context on entrepreneurship activities (Shepherd, Williams, & Patzelt, 2015). These works have demonstrated that factors such as motivations, self-perception, the use of decision-making tools, and environmental factors can influence an entrepreneur's decision-making. ...
Article
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While the research on entrepreneurship in impoverished contexts has overemphasized income as the primary driver of entrepreneurial activity, this paper investigates the non-monetary individual-centric and contextual elements that motivate entrepreneurs. Using a sample of 210 fresh vegetable producers in Benin and a hierarchical regression, the study reveals that both factors spur up entrepreneurial activities. Notably, the factors interplay to comfort the budding entrepreneur on the engagement into a new business.
... Furthermore, when starting a business, the product to be offered is still unknown in the market and thus, various activities or actions need to be considered before operations open. Several researchers explain the importance of preparing a business plan before starting a business (Blank, 2013;Shepherd et al., 2015;Peschl et al., 2020). Blank (2013) explains that by drafting a business plan, individuals are able to predict what might happen in advance, before they implement their ideas. ...
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This study investigates the moderating effect of students' programs on entrepreneurship education aimed at pre-start-up and its effect on the students' behavior. This study also attempts the level of entrepreneurship education and pre-start-up behavior among students. A survey was carried out among 441 final year students, including 214 students from business programs, and 227 students from non-business programs. Data were analyzed using IBM SPSS 22 and SmartPLS 3.3.0, to perform descriptive and multi-group analysis (MGA), including assessment of measurement invariance of the composite model (MICOM). The results reveal that all direct relationships were supported. It was also found that student programs do have a moderating effect on the relationship between entrepreneurship education and pre-start-up behavior. Furthermore, the results discovered that risk control is a crucial component of entrepreneurship education and should be highlighted in the curriculum. This study contributes to the literature by considering student programs as a moderator, a comparatively new factor in the pre-start-up behavior among university students at the tertiary level. Therefore, entrepreneurship education must be properly designed, and the co-curriculum must be properly organized, so that entrepreneurship will be the preferred career choice in the future.
... A typical question often asked in entrepreneurship research is why some individuals but not others are more willing to create or start businesses in the face of uncertainly or setbacks (Baron 2004). The literature on entrepreneurship has identified a wide range of factors that influence an individual's likelihood of launching a new business (Shepherd, Williams, and Patzelt 2015;Simoes, Crespo, and Moreira 2016), such as demographic factors (Fischer, Reuber, and Dyke 1993), psychological variables (e.g. attitudes, aspirations, and cognition; Robinson et al. 1991;Birley and Westhead 1994;Mitchell et al. 2002), personality characteristics (Beugelsdijk and Noorderhaven 2005), and social capital (De Carolis and Saparito 2006). ...
... Thus, emotions together with attitudinal and motivational factors, could influence the interest and intention to become an entrepreneur (Ustav and Venesaar, 2018). In other terms, emotions are found in literature to play a crucial role on entrepreneurial behaviour (Fordon and Pintea, 2017;Fayolle, 2013;Lundmark and Westelius, 2014) because entrepreneurs are very emotionally committed to their ventures (Shepherd et al., 2015). More precisely, recent research argues that emotions are highly related to action (Blakemore and Vuilleumier, 2017), decision-making (Welpe et al., 2012), opportunity recognition (Hayton and Cholakova, 2012), and memory (Bower, 1992;Tyng et al., 2017). ...
Article
Gabbianelli, L., Bonfanti, A., Loza Adaui, C. R., & Mion, G. (2021). An overview of students’ entrepreneurial intention antecedents. Piccola Impresa / Small Business, (1). https://doi.org/10.14596/pisb.2841
... For affect-related keywords, we adoptedCardon et al.'s (2012) list (emotion*, affect*, feeling*, mood*, and passion*). For entrepreneurship-related keywords, we adoptedShepherd et al.'s (2015) list (opportunit*, founder*, entrepreneur*), adding the keyword "small business", which is often (but not always) associated with entrepreneurship(Busenitz et al., 2003;Meyer et al., 2014). 2 Our sample is considerably larger than the 65 articles covered inGarcía et al. (2015) and 71 articles inHuang et al. (2020), and it compares favorably with other comprehensive reviews in the entrepreneurship literature (e.g.,Shepherd, Williams, & Patzelt, 2015). ...
Article
Research on the role of affect in the entrepreneurial process has surged over time, resulting in a vibrant field of inquiry. To advance scholarship in this area, we conduct an inductive analysis of 162 published articles, critically analyzing the state of research on affect in entrepreneurship. We develop an organizing framework to capture three major conversations in existing research-affect valence (feelings), discrete emotions, and emotional competences-and encompass several outcomes studied within each conversation. We find that limited work has been done to explore the antecedents of affect (both feelings and discrete emotions), anticipated affect deserves greater consideration, and affective influence of stakeholders on entrepreneurs remains overlooked. Research on negative affect and emotional competences also remains scarce in the entrepreneurship literature. Future inquiry would do well to take a multilevel approach to affect, explore affective phenomena over time, and cast light on the role of emotional competence in the entrepreneurial process. We also spotlight crucial empirical advancements, including big data and artificial intelligence, for affect research going forward.
... This study focuses on the views of tourism service providers on existing and proposed REI in Iceland. The beliefs and perceptions of tourism service providers regarding the impacts of REI on tourism and their spatial extent are likely to affect their decision-making on future investments and actions related to tourism planning and development in the areas that tourism service providers perceive as affected [8,25]. Furthermore, tourism service providers play a major role in shaping tourist attitudes toward REI encountered during their travels [26]. ...
Article
Estimating the spatial extent of the impacts of renewable energy infrastructure on tourism is crucial for the identification of potential locations of resource use conflict. Such a task, however, is complicated and requires inclusion of social perceptions on the spatial extent of the impacts. This study investigates perceptions of the tourism industry in Iceland regarding the impact area of existing and proposed energy projects on tourism and analyses the factors affecting its size and shape. It is based on semi-structured interviews with tourism service providers, during which participants mapped their perceived impact areas using participatory mapping software. The results revealed that the reasoning affecting the perceived spatial extent of the impacts falls into three categories: visibility of renewable energy infrastructure and related environmental impacts; tourist mobility; and changes in tourism due to energy projects. Moreover, the impacts of the proposed energy projects were perceived as more negative compared to existing ones. Energy projects were considered less suitable in wilderness areas, which were defined by the tourism service providers as an important resource for nature-based tourism, but more acceptable in developed areas. Thus, the spatial extent of the impacts and the compatibility of renewable energy infrastructure with tourism highly depend on changes in place meanings and tourism processes brought by energy infrastructure as well as affected elements of tourism networks. This emphasizes the importance of including tourism stakeholder perceptions and knowledge into the early stages of energy planning to ensure sustainable development of both the tourism and energy industries.
... The experimental design is typically orthogonal for metric conjoint analysis, as it guarantees that the effect of one factor or interaction can be estimated separately from the effect of any other factor or interaction in the model. Conjoint analysis is a suitable and useful method in entrepreneurship studies for investigating entrepreneurial decision-making (Lohrke et al., 2010;Shepherd et al., 2015;Shepherd and Zacharakis, 1999), as it enables researchers to capture the decision-makers' decision policies while they are "in use", thus overcoming many of the limitations associated with post-hoc techniques that require extensive and potentially error-prone introspection (Wood et al., 2014). ...
Article
We investigate how potential co-founders' perceptions of a founder's obsessive passion (OP) influence the decision to join a venture team. Using a conjoint experiment with a primary sample of 116 founder-entrepreneurs and validating it with an additional sample of 59 founder entrepreneurs, we found that potential co-founders were more likely to join if they perceived that the founder had OP for developing ventures. Potential co-founders were less likely to join if they perceived OP for founding ventures. Further, we found significant interactions between perceived OPs, as well as interactions between perceived OP and potential co-founders' own OP.
... Prior work contends that entrepreneurs are not only motivated by economic objectives and personal wealth, but also highly value the autonomy, independence, and control related to entrepreneurship (Amit et al. 2001;Douglas and Shepherd 2002;Schwienbacher 2008;Souitaris et al. 2020;Shepherd et al. 2015). At the same time, entrepreneurs rarely control all resources required to build company value and, therefore, may need to attract resources such as human, social, and financial capital from other parties like co-founders, hires and/or investors (Brush et al. 2008;Colombo and Grilli 2010;Evans and Jovanovic 1989;Ruef et al. 2003;Sapienza et al. 2003;Schwienbacher 2007). ...
Article
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In order to obtain a better understanding why some entrepreneurs retain more control over their venture than others, this article analyzes the relationship between the social identity of the entrepreneur and her/his desire for control. In fact, entrepreneurs face an important tradeoff between attracting resources required to build company value and retaining decision-making control. Yet, we currently lack insight into whether and how entrepreneurs’ social motivations shape this trade-off. This study draws on social identity theory and a unique sample of 148 buyout entrepreneurs, as this setting confronts aspiring entrepreneurs directly with the value–control tradeoff. In our logistic regression, we find that entrepreneurs with a strong missionary identity, where venture creation revolves around advancing a cause, hold a higher desire for control. We do not observe a significant relationship between entrepreneurs having a Darwinian (driven by economic self-interest) or communitarian (driven by the concern for the community) identity and the desire to control their venture. When adding the moderating role of the portion of personal wealth the entrepreneur is willing to invest in her/his venture, the relationships between having a Darwinian or missionary social identity and the desire for control become significantly positive when the entrepreneur is looking to invest a larger portion of her/his wealth.
... For entrepreneurship-related keywords, we adopted Shepherd et al.'s (2015) list (opportunit à , founder à , entrepreneur à ), adding the keyword "small business," which is often (but not always) associated with entrepreneurship (Busenitz et al., 2003;Meyer et al., 2014). 2. Our sample is considerably larger than the 65 articles covered in García et al. (2015) and 71 articles in Huang et al. (2020), and it compares favorably with other comprehensive reviews in the entrepreneurship literature (e.g., Shepherd, Williams, & Patzelt, 2015). ...
Article
Full-text available
Research on the role of affect in the entrepreneurial process has surged over time, resulting in a vibrant field of inquiry. To advance scholarship in this area, we conduct an inductive analysis of 162 published articles, critically analyzing the state of research on affect in entrepreneurship. We develop an organizing framework to capture three major conversations in existing research—affect valence (feelings), discrete emotions, and emotional competencies—and encompass several outcomes studied within each conversation. We find that limited work has been done to explore the antecedents of affect (both feelings and discrete emotions), anticipated affect deserves greater consideration, and affective influence of stakeholders on entrepreneurs remains overlooked. Research on negative affect and emotional competencies also remains scarce in the entrepreneurship literature. Future inquiry would do well to take a multilevel approach to affect, explore affective phenomena over time, and cast light on the role of emotional competencies in the entrepreneurial process. We also spotlight crucial empirical advancements, including big data and artificial intelligence, for affect research going forward.
... The rationale is that small firms may identify or develop many international opportunities; however, those opportunities will not contribute to the firm's international performance unless they get exploited (Shepherd et al., 2015;William and Wood, 2015). Therefore, opportunity exploitation which refers to gaining return from new opportunities (Choi and Shepherd, 2004) becomes an important construct in IE that determines the international performance of internationalizing small firms (Coviello et al., 2011). ...
Article
Extant research has studied how entrepreneurial cognition influences firm international performance but what mechanisms translates entrepreneurial cognition into international performance remains a puzzle in the field. In this paper, the authors utilize effectuation theory to theorize this association. Using a survey of 164 internationalizing small firms from New Zealand, the authors examined a model of entrepreneurial cognition, action and gaining new knowledge as a framework to explain how effectual control, partnership for new opportunity creation and gaining new knowledge influence small firms’ performance. The authors found that partnership for new opportunity creation, and gaining new knowledge are two important mediation mechanisms in the focal association between effectual control and international performance. These findings identify the critical importance of continuous knowledge development in internationalization process. The authors contribute to international entrepreneurship research by delineating and verifying the important associations between entrepreneurial cognition, action and gaining new knowledge and their outcomes for firm’s international performance. The authors also contribute to effectuation theory by elaborating on effectual control and how this logic leads to the development of new knowledge.
... Anticipated emotions have been deemed crucial when entrepreneurs evaluate a business opportunity (Delgado García et al., 2015;Foo et al., 2009). Entrepreneurship is conceptualized as an emotional journey (Baron, 2008;Cardon et al., 2012;Shepherd et al., 2015) and the entrepreneurship process starts from the entrepreneur's recognition, enactment, and regulation of positive and negative feelings (Riquelme, 2020). For example, Kato and Wiklund (2011), who analyzed entrepreneurs' diary blogs during the early stage of the venture, suggest that entrepreneurs were experiencing highly stimulated states in terms of both positive (i.e., hope, optimism) and negative effects (i.e., fear, worry, anxiety). ...
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This study examines the job satisfaction dynamics of entrepreneurs. Using the Household Income and Labour Dynamic in Australia (HILDA) survey, we evaluate the temporal pattern of anticipation, reaction, and adaptation in job satisfaction occurring before, during, and after the transition into self-employment. Results vary across the different domains of job satisfaction: while entrepreneurship entry induces a short-term boost in overall job satisfaction and satisfaction with the work itself, it has a long-lasting negative impact on satisfaction with income and job security. Further, entrepreneurs exhibit positive adaption to balancing work, non-work commitments, and leisure time. No significant gender differences were identified.
... Entrepreneurs face decisions about opportunity assessment, entrepreneurial entry, exploiting opportunities and entrepreneurial exit. Often these decisions are made in extreme contexts characterised by high uncertainty, time pressure and intense emotions (Shepherd et al., 2015). Entrepreneurs with higher levels of human capital are better able to map alternatives and criteria for decision-making. ...
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Plain English Summary Nascent entrepreneurs’ cognitive abilities shape the impacts of their human and social capital on success in the new venture creation process. Entrepreneurship starts long before the actual birth of the new venture. Nascent entrepreneurs are those individuals seeking to establish a new business by discovering opportunities, conceiving strategies and obtaining resources. Human capital (the knowledge entrepreneurs derive from their education and work experience) and social capital (the networks of contacts entrepreneurs use to learn about the market and gain access to resources) are recognised as important determinants of success in launching a business. This study finds that cognitive abilities (the psychological dispositions that influence entrepreneurs’ behaviours) also affect the outcome of the nascent entrepreneurship process both directly and by boosting the impacts of human and social capital. This result has implications for researchers as it shows that human and social capital attributes do not act in isolation, but rather interact with cognitive abilities. There are also implications for venture capitalists and SME support agencies. Investment and support decisions need to consider more than the business opportunity and the resources available, as success may hinge on the cognitive abilities of the entrepreneur.
... These differences in terminology and the fact that some studies do not build on each other make it difficult to evaluate and compare results across studies (Narayanan et al., 2009). Overall, this limits our understanding of the CE phenomenon, hamper the development of further knowledge in this area, and make it more difficult to establish relations and boundaries with other relevant constructs (Shepherd et al., 2015). ...
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Plain English Summary This review analyzes the articles published in the corporate entrepreneurship field and presents the future research agenda. Research agrees that corporate entrepreneurship has a positive impact on firms’ profits and growth. This has generated an increase in the number of research articles published in this area. However, previous literature has some limitations and areas that should be further explored. First, there are many different definitions and terms to refer to corporate entrepreneurship activities. This makes it difficult to understand the current state of corporate entrepreneurship research. Second, we lack up to date comprehensive literature reviews summarizing the knowledge and advances generated in the field in the last years. Overall, the objective of this research is to explore the content and evolution of corporate entrepreneurship research. This research contributes by summarizing and synthesizing the main findings in previous literature. It also contributes by identifying relevant inconsistencies and ambiguities in previous literature that have prevented the development of certain areas within the corporate entrepreneurship field.
... These objectives have been often studied in management research as demonstrated by the several literature reviews (e.g. Hausknecht and Trevor 2011;Shepherd et al. 2015). As examples, we can cite studies that have looked at growth of small firms as the change in sales and profitability (Coleman 2007;Gupta and Somers 1996). ...
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In a fast-changing world, characterized by evenly unexpected challenges and shocks, being resilient is a crucial aspect for every organization. Drawing from the goal setting theory and the double standards of competence perspective, this study aims at understanding the antecedents of organizational proactive resilience. More precisely, it looks at the impact of quantitative and qualitative organizational growth goals on proactive resilience, distinguishing between women-led and non-women-led firms. Based on a unique sample of 167 Italian wineries (67 women-led and 100 non-women-led), this paper tests this theoretical model using path analysis techniques. The wine sector is a particularly interesting context to study the phenomenon due to its exposure to natural disasters, new consumers' behaviours that are requiring firms to continuously innovate and differentiate in a traditionally low-tech sector, but also changes happening at wineries' management level. In fact, the sector has been traditionally male dominated, but women are increasingly taking the lead. The findings indicate that growth goals differently contribute to proactive organizational resilience , but their effects vary in women-and non-women-led businesses. Specifically, these results suggest that in women-led wineries, proactive organizational resilience depends on quantitative growth goals while in non-women-led wineries businesses this depends on qualitative growth goals.
... Opportunity evaluation refers to a process of ambiguity reduction in which an individual progressively defines the subjective elements of circumstances and events (e.g., opportunity) such that they are seen (or not seen) as a desirable and feasible future reality (Dimov, 2011;Shepherd et al., 2007). Essential to the process of opportunity evaluation is entrepreneurs' interpretation and judgment about the possibility of taking entrepreneurial action based on experience, education, different mental templates, and cognitive images stimulated by the given circumstances (Shepherd, Williams, & Patzelt, 2015;Williams & Wood, 2015). ...
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Drawing on construal-level theory (CLT), this study observes that potential entrepreneurs perceive less risk and are more likely to evaluate an opportunity positively when the psychological distance is far rather than near. Two experimental studies are conducted using two samples. We further demonstrate the weaker influence of psychological distance on opportunity evaluation through risk perception when entrepreneurs are experienced and have longer prior start-up experience. We contribute by highlighting the value of integrating CLT into research on entrepreneurial opportunities and revealing the effect of the various dimensions of psychological distance on opportunity evaluation. Moreover, we uncover the interrelationships between psychological distance and risk perception and entrepreneurial experience.
... Toda esta evidencia acerca de los alcances del entrenamiento cognitivo es prometedora y valiosa porque el potenciamiento de la performance emprendedora tiene que ver con la necesidad de un mayor rendimiento de funciones cognitivas del cerebro emprendedor (Baron, 2013) tales como la memoria (Ariely, 2008), la atención (Pérez, 2017a), la toma de decisiones (Shepherd, Williams, & Patzelt, 2015) así como el procesamiento visual (Cumming & Williams, 2012). La utilidad del procesamiento visual es menos obvia, no por ellos menos importante considerando que el 80% de información que una persona utiliza para tomar una decisión proviene del sentido de la visión 22 . ...
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RESUMEN En el esfuerzo por develar los 'secretos más íntimos' del cerebro emprendedor, el campo de la neurociencia es el contendiente más apropiado. Sobre la base de una revisión de literatura previa a acerca del rol de la neurociencia en el emprendimiento, este articulo a) reflexiona sobre la utilización de la neurociencia en la investigación y práctica del emprendimiento, b) presenta los cinco 'vientos de disrupción' para señalar el futuro en cuanto al estudio del emprendimiento desde una perspectiva neurocientífica, c) describe cuatro formas de maximizar el aporte de las neuro tecnologías en la investigación y enseñanza del emprendimiento, d) introduce el concepto de "entrepreneurial enhancement" y e) revela tres técnicas para desarrollar y potenciar la performance de un emprendedor.
... What has not been adequately explored is the role that perceived barriers can play in terms of accessing finance for different firms based on gendered ownership. Rather than the actual institutional environment, on many occasions it is the perception of the environment that might affect ventures (Shepherd, Williams and Patzelt, 2015;Krueger, 2008;Kwapisz, 2019). Shepherd, Williams and Patzelt (2015, p. 35) in this context argue that 'it is not so much the objective environment that is an input to entrepreneurial decisions but, rather, the entrepreneur's perception of that environment'. ...
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Do firms with majority female ownership differ from firms with minority female ownership or male‐owned firms in terms of perceived constraints on accessing finance? Using World Bank Enterprise Survey (WBES) data for Indian firms, our results show that there is no significant difference in male‐ and female‐owned firms in terms of their perceptions about accessing finance. Yet, this is true only for firms with minority female ownership (less than 50%). Firms with majority female ownership do perceive more constraints on accessing finance relative to firms with minority female ownership or zero female ownership. Based on demand‐ and supply‐side factors relating to business inexperience, weaker networking, and lender perceptions, as suggested by signalling and gender congruity theories, the results imply that majority‐female‐owned firms need to negotiate more for financing access, as they need to display positive signals for those investors who might possess stereotypical and gendered beliefs about the abilities of entrepreneurs. We also find that in relation to funding sources being one's own retained earnings or money from family and friends or advances from clients, majority‐female‐owned firms do not perceive financial barriers differently from male‐owned firms or firms with minority female ownership.
... Smith & Woodworth (2012) focus on Missionary social identity and state that social entrepreneurship education influences the development of a missionary social identity which increases entrepreneurial intention. Furthermore, Shepherd et al. (2015) performed a literature review on entrepreneurial intention and concluded that social identity motivates the decision to create a new venture. ...
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The main purpose of this paper is to examine whether potential entrepreneurs are mainly driven by entrepreneurial skills or by a social identity to engage in entrepreneurial behaviors. Using a sample of 696 Colombian students from the data of Global University Entrepreneurial Spirit Students'Survey (GUESSS), findings confirm Darwinian and Missionary social identity influence entrepreneurial intention positively. Furthermore , we find that the more a person identifies with a Darwinian social identity, the less entrepreneurial intention depends on entrepreneurial self-efficacy, while the contrary happens for missionary social identity. This study provides empirical evidence that competence, and identification influence the entrepreneurial process. Additionally, this study provides an explanation in a new setting, about why some individuals with strong entrepreneurial self-efficacy do not exhibit strong entrepreneurial intention.
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Entrepreneurship is major source of jobs creation, economic growth, and innovation in most of economies. It entails identification of opportunity, and a series of steps taken to commercialize the identified opportunity in profitable manner. Along the way, entrepreneur encounters many decision problems pertaining to strategy and operation, ranging from deciding on the business opportunity to go-to-market plan. Decision-making in entrepreneurial setting becomes difficult and challenging because of many unknowns requiring knowledge of contextual intelligence and changing business environment, further accentuated in emerging economies because of regulatory uncertainty and change. Right decision-making is key to profitable exit or early disengagement, resulting in reduced sunk cost. The paper proposes a framework for decision-making in entrepreneurial setting based on experimentation. We posit that entrepreneurial decision-making can be modelled in the settings of contextual bandits. In the process, we detail out aspects of decision problems, entrepreneurial ecosystem, and experiments, which impacts decision-making processes and associated cost. We develop propositions pertaining to association between decision problems, ecosystem, and entrepreneurial growth. Based on that, we draw implications for entrepreneurs and policymakers.
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Purpose The study aims to investigate whether the perceived problems in exiting a business—as well as the scope of and access to external support—may impact an entrepreneur's decision regarding the exit strategy, that is, the choice between the stewardship and harvest exit strategy. Design/methodology/approach The authors have collected data from 302 entrepreneurs using a novel survey instrument and subjected the sample to structural equation modeling (SEM) and ordered logit regressions. Findings The results reveal that potential difficulties in implementing an exit strategy, the scope of external support anticipated by the exiting entrepreneur and access to such support influence the potential choice of an exit strategy. Furthermore, the findings indicate that the stewardship exit strategy is preferred over the harvest exit strategy by entrepreneurs who face potential difficulties in obtaining external support or foresee problems related to a potential exit strategy. Originality/value This study provides new insights into an entrepreneur's exit phenomenon by adding new elements, such as perceived problems involved in exiting a business as well as the scope of and access to external support, to the list of factors that may affect the choice of an exit strategy.
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Entrepreneurial decision-making is a complex area that impacts the creation and development of new ventures and is one of the main subjects of entrepreneurial research. Our study focuses on the impact of regional disparities on the entrepreneurial decision-making process regarding the adoption of alternative funding sources such as crowdfunding. Crowdfunding has recently garnered considerable interest because of its ability to “democratize” access to capital. Using a least-squares method (OLS) and inferential t-test statistics, we analyze how the entrepreneurial decision-making process differs across Italian regions on the adoption of equity crowdfunding campaigns as fundraising tools. Our results show that regional disparities matter in the entrepreneur’s decision-making process, pushing it towards alternative tools such as crowdfunding. Overall, we provide evidence that crowdfunding has gained prominence in Italy in recent years and may be a viable option for entrepreneurs operating in less developed regions to bridge the traditional regional disparity gap.
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p class="MsoNormal" xss=removed> Celem badań była próba poznania, czy charakter firmy – rodzinny vs. nierodzinny – może warunkować wybór potencjalnej strategii wyjścia przez zarządzającego nią właściciela. Badanie też miało na celu poznanie czynników, które mogą motywować do podjęcia decyzji o potencjalnym wyjściu, jak również identyfikację potencjalnych źródeł trudności w procesie wyjścia, dostrzeganych przez przedsiębiorców z firm rodzinnych i nierodzinnych. Wyniki badań ujawniły zdecydowaną orientację badanych przedsiębiorców – niezależnie czy byli to zarządzający właściciele firm rodzinnych czy też nie, na strategię sukcesji wewnętrznej (tj. pozostawienie firmy w rękach rodziny). Wśród kluczowych powodów, które mogą warunkować potencjalne wyjście przedsiębiorcy znalazło się przejście na emeryturę oraz czynniki finansowe (np. niezależność finansowa, bezpieczeństwo finansowe). Czynniki te były też ważniejsze dla przedsiębiorców z firm nierodzinnych w porównaniu do przedsiębiorców z firm rodzinnych. Za najtrudniejsze kwestie związane z wyjściem z firmy badani przedsiębiorcy, niezależnie czy postrzegali swoją firmę jako rodzinną czy też nie, uznali kwestie związane z biurokracją procesu wyjścia jak również jej opuszczenie. Na kolejnych miejscach listy potencjalnych barier dla swojego wyjścia respondenci z obu grup umieścili kwestie związane z finansowaniem tego procesu oraz wycenę firmy. </p
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We propose and test a process where potential entrepreneurs (PEs) prioritize a venture idea consideration set using preference-based decision-specific heuristics to assess idea feasibility and desirability. We test our hypotheses through two studies with PEs. The first experiment shows that prioritization occurs, with 113 of 122 PEs voluntarily changing a randomized list of their ideated ventures into a rank-ordered priority list of potential opportunities. Second, we employ a novel “equivocal forced-choice” conjoint design with 250 PEs. We find empirical support that PEs prioritize via relative preferences for experience-based knowledge, strong social ties, and low risk/low reward venture ideas. We contribute to the entrepreneurship literature by theorizing and providing evidence of a prioritization stage for multiple idea sets before evaluation. Further, we demonstrate the influence of individual and social network factors on prioritization and expand our understanding of how PEs conceptualize risk in venturing.
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Over the last decades, scholars considered entrepreneurship as synonymous with thinking “outside of the box” and breaking the status quo. In this view, entrepreneurs are often viewed as heroes that try to improve the status quo. However, not all entrepreneurial rule-breaking are legal or moral a priori. The business landscape depicts a number of entrepreneurial ventures holding rebellious and anti-social postures. Despite the relevance of such a phenomenon, the motives and the dynamics beyond how and why some entrepreneurs deliberately diverge from laws and social norms has been overlooked. Accordingly, we introduce a novel conceptual model and framework using four propositions that contributes to the extant literature in two ways: first, we propose a logic through which entrepreneurs consciously diverge from legal and legitimate institutions, and second, we introduce antecedents and moderating variables explaining the behaviors of disobeying regulations and moral codes by leveraging cognitive and institutional theories. Finally, practical implications of the proposed model for entrepreneurs, policymakers, and business educators are discussed.
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Despite the increasing interest in studying the concept of resilience in entrepreneurship, existing research often fails to account for stressors that induce entrepreneurs' need for resilience and coping efforts. By arguing the need to study stress, resilience, and coping together to understand how entrepreneurs build resilience in the face of adversities, we systematically review the en-trepreneurship scholarship (125 articles) on these three concepts. By critically appraising these three literatures in light of current thinking in psychology, we then develop a model of the process of building psychological resilience in entrepreneurship and offer a clear pathway for future research.
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Purpose Decision-making is of utmost importance for entrepreneurs. One of the most important entrepreneurial decisions is the decision to persist, which under certain circumstances such as a high level of adversity may seal the fate of entrepreneurs’ businesses. Nevertheless, the main antecedents of the decision to persist among entrepreneurs have remained understudied. This dearth of research is more obvious with respect to women entrepreneurs, especially in developing countries. To address this gap, this paper aims to explore the main antecedents of the decision to persist among women entrepreneurs. Design/methodology/approach By adopting a narrative approach, data were collected through a combination of semi-structured and in-depth questions with a sample of Iranian women entrepreneurs founding and running small businesses offering services in a variety of sectors and analysed by narrative data analysis. Findings According to the findings, the pandemic-emanated uncertainty, personal attachment to one’s venture as well as the reluctance of being blamed by one’s family, and the fear of the unknown future were the main drivers of the decision to persist among the entrepreneurs. Originality/value This paper offers two novel contributions to the extant literature. This paper is a pioneer not only in exploring entrepreneurs’ decisions during the COVID-19 pandemic but also in studying the decision to persist in the context of the developing nations.
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We construct a discrete choice experiment to study opportunity evaluation by entrepreneurs. This new method in entrepreneurship studies allows us to measure entrepreneurs’ utility functions and thereby their perceptions of opportunity. Consequently, we produce empirical evidence for how entrepreneurs evaluate opportunities beyond the objective facts and find two types of entrepreneurs with different evaluative behavior that cannot be explained by situational or demographic differences. We contribute to the opportunity evaluation literature by measuring perceptions, provide theoretical argument and present empirical evidence for heterogeneity among entrepreneurs, and introduce new methods that allow for more nuanced empirical analyses of entrepreneurial decision-making.
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Based on the regret regulation theory and entrepreneurial cognition theory, this study aims to investigate the relationship between entrepreneurs’ anticipated regret and entrepreneurial persistence through the mediator of entrepreneurial cognition. To that end, we distributed surveys to entrepreneurs who were supported by the “Xing Chuang Tian Di” project and used 248 questionnaire data to examine the hypotheses. The results show that entrepreneurs’ anticipated regret has a significant and direct impact on entrepreneurial persistence. Also, entrepreneurship cognition plays a mediating role between anticipated regret and entrepreneurial persistence. In addition, the entrepreneurial environment plays a positive role in moderating the relationship between anticipated regret and entrepreneurial persistence.
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This article aimed to evaluate the influence of the alignment of operators’ preferences for aggregating or disaggregating on the use of managerial information. Although studies indicate that accounting information has the potential to support the decision-making process, they also point to its limited use. However, those studies have basically investigated aspects such as information received versus demanded, timeliness, and legal and corporate aspects. There remains the question of whether divergences in preferences regarding the way information is presented, between those who elaborate and those who use it, could also be an explanatory factor. Thus, this study sought to investigate, under the lens of Mental Accounting Theory (MAT), whether there are differences in operators’ preferences that help to explain the low use of accounting information to support the decision-making process. The relevance of this article lies in better understanding the reasons for the low use of accounting information to support the decision-making process, despite its contributive potential, seeking organizational continuity and prosperity. As an impact on the area, this article helps preparers to understand and contemplate users’ demands and preferences, resulting in greater use of information. The aim is for informed decisions to be taken without the influence of opportunisms, randomness, or the bias of whoever prepares the information. A quasi-experiment was operationalized with 1,074 students, 550 of accounting courses (preparers) and 524 of management courses (users) at four (public and private) universities in the south of Brazil. The study involves empirical, quantitative, descriptive, and applied research. For the data analysis, descriptive statistics, logistic regressions, and homogeneity analysis by means of alternating least squares (HOMALS) were used. In most of the scenarios, the operators (preparers and users) presented a preference for disaggregating the information, independently of whether they follow the assumptions of MAT or not. It was observed that the search for informational volume for more assertive decision making predominates over the psychological gains and the value function perceived by the individual. Those who prefer disaggregated information are willing to align/use accounting information for management.
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During new venture creation, entrepreneurs make decisions in a variety of areas from seeking funding to hiring employees. When and why entrepreneurs use effectual or causal logics to make such decisions is poorly understood. In this study, we integrate ecological rationality theory and effectuation theory to examine how the nature of decisions influences entrepreneurs' use of decision logics. In a qualitative study with 41 entrepreneurs across 290 decisions, we explore how decision content (what the decision is about) and decision structure (what information about a decision is represented in the decision-maker's mind) influence entrepreneurs' use of effectual or causal logics. We extend our findings in an experiment with 224 entrepreneurs where we manipulate decision structure. Our results suggest that decision content influences entrepreneurs' mental representations of decision structure. In turn, the combination of two elements of decision structure — decision complexity and the perceived costs of implementing different options — drives entrepreneurs' use of decision logics. We contribute to the effectuation literature by integrating it with ecological rationality theory, introducing the concept of decision fit as a driver of decision logics, and developing our understanding of hybrid decision-making (the simultaneous use of effectuation and causation).
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While research on overconfidence and entrepreneurship has grown rapidly in recent decades, extant studies provide conflicting theoretical predictions and empirical results about the role of overconfidence for entrepreneurship. To help resolve the controversy in the literature, we draw on information-processing theory to propose a theoretical framework that disentangles the influence of three types of overconfidence (i.e., overprecision, overestimation, and overplacement) in three major phases of the entrepreneurial process. The results of meta-analytical structural equation modeling (MASEM) based on 62 primary studies reveal varying effects of the three types of overconfidence in the entrepreneurial process. We discuss the implications of these findings and identify future research opportunities to advance this stream of research.
Thesis
This thesis empirically explores the interaction between cognitive factors related to an entrepreneur’s confidence, financial decisions, and a firm’s performance. The objective of this study is to analyze the effects of some specific cognitive variables highly present in the entrepreneurial context and better understand how they shape a firm’s capital structure and entrepreneurial funding decisions. We first rely on a systematic literature review that investigates what are the main cognitive factors related to entrepreneurial confidence and how it affects a firm’s decisions and firm’s outcomes. Second, we address the relationship between ESE and fundraising and a firm’s performance in the second study of the thesis. A third study empirically addresses three cognitive factors related to an entrepreneur’s confidence in the decision to borrow bank credits. The manuscript brings originality and novelty by analyzing the effects of a specific class of cognitive variables related to an entrepreneur’s confidence.
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Purpose This study aims to explore the heuristics applied by tech entrepreneurs in the Middle East during the opportunity evaluation process. Design/methodology/approach A multiple case-based methodology was applied, which consisted of semi-structured interviews with entrepreneurial experts from different cities in the Middle East. Qualitative data analysis was then performed with inductive thematic coding using the Eisenhardt method. Findings The results suggest that entrepreneurs mostly use six heuristics to evaluate opportunities quickly. Three of them are related to the opportunity as an abstract idea, and three are connected with the person (s) involved in the opportunity. In addition, entrepreneurs in the Middle East were more interested in the personal characteristics of the opportunity presenter than in the opportunity itself. Research limitations/implications Identifying the heuristics applied by experts may neglect the perspective of the community of entrepreneurs as a whole. Hence, future research should target a wider segment of entrepreneurs. Furthermore, the effect of applying such heuristics on the strategic growth of startups remains an open question. Practical implications The identified heuristics are aligned with the hands-on approach of entrepreneurship and can be applied as a decision-making technique for aspiring entrepreneurs who seek to succeed in this region. Originality/value This study explores the under-examined topic of heuristics in opportunity evaluation within the regional context of the Middle East, which has also been scarcely investigated. It sheds light on the importance of cultural factors in identifying the cognitive shortcuts used in a business context.
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O objetivo deste estudo é verificar, à luz da Teoria do Prospecto, se mulheres apresentam menor tolerância ao risco do que homens, em decisões organizacionais. Realizou-se experimento de campo com 236 gestores (115 mulheres e 121 homens) distribuídos em dois grupos, um de controle (decisões pessoais) e outro experimental (decisões organizacionais) e, após, avaliou-se isoladamente as 115 mulheres. Os dados foram analisados por meio de regressão logística, utilizando dois modelos. Os resultados indicam que a premissa inicial, referente decisões no campo pessoal, de que mulheres são menos tolerantes ao risco do que homens, se aplica com menor frequência quando as decisões são tomadas no campo organizacional. Além disso, a influência do gênero sobre a tolerância ao risco é mais evidente em situações envolvendo ganhos do que em situações de perdas. Os achados do estudo trazem reflexões sobre o tema ao constatar que premissas aceitas pela literatura no campo de decisões pessoais podem não ser aplicáveis ou totalmente válidas em decisões no campo organizacional e tampouco iguais para situações de ganhos ou de perdas.
Article
Purpose Entrepreneurship as a development engine has a distinct character in the economic growth of countries. Therefore, governments must support entrepreneurship in order to succeed in the future. The best way to improve the performance of this entrepreneurial advocacy is through efficient measurement methods. For this reason, the purpose of this paper is to propose a new integrated dynamic multi-attribute decision-making (MADM) model based on neutrosophic set (NS) for assessment of the government entrepreneurship support. Design/methodology/approach Due to the nature of entrepreneurship issues, which are multifaceted and full of uncertain, indeterminate and ambiguous dimensions, this measurement requires multi-criteria decision-making methods in spaces of uncertainty and indeterminacy. Also, due to the change in the size of indicators in different periods, researchers need a special type of decision model that can handle the dynamics of indicators. So, in this paper, the authors proposed a dynamic neutrosophic weighted geometric operator to aggregate dynamic neutrosophic information. Furthermore, in view of the deficiencies of current dynamic neutrosophic MADM methods a compromised model based on time degrees was proposed. The principle of time degrees was introduced, and the subjective and objective weighting methods were synthesized based on the proposed aggregated operator and a nonlinear programming problem based on the entropy concept was applied to determine the attribute weights under different time sequence. Findings The information of ten countries with the indicators such as connections (C), the country's level of education and experience (EE), cultural aspects (CA), government policies (GP) and funding (F) over four years was gathered and the proposed dynamic MADM model to assess the level of entrepreneurial support for these countries. The findings show that the flexibility of the model based on decision-making thought and we can see that the weights of the criteria have a considerable impact on the final evaluations. Originality/value In many decision areas the original decision information is usually collected at different periods. Thus, it is necessary to develop some approaches to deal with these issues. In the government entrepreneurship support problem, the researchers need tools to handle the dynamics of indicators in neutrosophic environments. Given that this issue is very important, nonetheless as far as is known, few studies have been done in this area. Furthermore, in view of the deficiencies of current dynamic neutrosophic MADM making methods a compromised model based on time degrees was proposed. Moreover, the presented neutrosophic aggregation operator is very suitable for aggregating the neutrosophic information collected at different periods. The developed approach can solve the several problems where all pieces of decision information take the form of neutrosophic information collected at different periods.
Article
This study explores which local factors affect the creation of sustainable or green startups in a geographical area. The analysis aims to help regional legislators get a more nuanced view of regional economic and sustainable policymaking and to promote a transition toward a greener economy. Building on knowledge spillover theory, results from 4301 companies across Europe show that the driving factors for the emergence of green startups go beyond funding opportunities. Knowledge exchange and industry networks are equally if not more important in attracting green entrepreneurs. Results also reveal that green startups are more likely than non-green startups to change their location. Of those who change their location, green founders prefer large cities and have a negative inclination to establish their companies in small cities. Companies in the sustainable information technology (IT) industry are less likely to change their location, whereas green manufacturing companies are more likely to change. In summation, results indicate that the location choices and resulting evolution of clusters for green startups are based on a number of variables, including local knowledge stock and spillovers, company density, availability of educated talent, and industry affiliations.
Article
Purpose This study aims to achieve two objectives: First, to investigate the moderating influences of Coronavirus-19 (Covid-19)-related psychological distress on the process of entrepreneurial cognition; and second, to close the gap between entrepreneurial intention and behavior of higher education institutions students. Design/methodology/approach Scales from previous studies have been adopted to develop a questionnaire survey. An online survey questionnaire then is carried out to collect the data; the final sample includes 405 university students. The validity and reliability of scales are tested throughout Cronbach's alpha and confirmatory factor analysis. Hypothesized correlations were then tested via structural equation modeling. Findings The results confirm the important roles of perceived behavioral control and entrepreneurial intention in encouraging entrepreneurial behavior, whereas attitude toward entrepreneurship is strongly and positively related to intention to engage in a business venture. Yet, subjective norms are not found to have an impact on entrepreneurial intention. Entrepreneurial attitude-intention link has been negatively moderated by Covid-19-related psychological distress. Also, Covid-19-related psychological distress can lessen the entrepreneurial intention–behavior linkage of higher education institutions students. Practical implications The study provides useful recommendations for practitioners such as educators and policymakers to promote higher education institutions students' entrepreneurship, especially in the global crisis context of the spread of Covid-19. Social implications Being aware of the effects of the Covid-19 pandemic on the entrepreneurship process and translations from intention into behavior to become entrepreneurs provide useful insights to nascent entrepreneurs, community and our society to limit the negative influence of the Covid-19 pandemic and help us overcome this crisis. Originality/value Addressing the entrepreneurial intention–behavior gap is considered as the biggest contribution of this study. Moreover, the association between perceived behavioral control and entrepreneurial behavior, overlooked by previous studies, is also tested in this study. Furthermore, the findings confirm that psychological distress caused by Covid-19 can inhibit the cognitive process of entrepreneurship.
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