Session 235

Cognitive and Behaviorial Perspectives of Entrepreneurial Decision Making

Track K

Date: Sunday, September 21, 2014


Time: 15:45 – 17:00


Room: Moscu

Session Chair:

  • Tiona Zuzul, London Business School

Title: Risk and Ambiguity in Evaluating a New Venture: An Experimental Study


  • Anisa Shyti, IE Business School
  • Corina Paraschiv, HEC-Paris

Abstract: Past research points to risk attitudes as an important variable driving decisions to enter entrepreneurship. However, entrepreneurs confront more often uncertainty and ambiguity (unknown probabilities), rather than risk (known probabilities). Through an experiment we investigate risk and ambiguity attitudes of entrepreneurs and non-entrepreneurs in occupational choice decisions, for different likelihood levels and different degrees of ambiguity. Findings suggest that both entrepreneurs and non-entrepreneurs, seek risk and ambiguity for low likelihoods, and avoid risk and ambiguity for high likelihoods, a behavioral pattern consistent with Prospect Theory. For both risk and ambiguity, entrepreneurs are more optimistic than non-entrepreneurs. However, entrepreneurs give more pessimistic evaluations for ambiguity compared to risk, while non-entrepreneurs do not discriminate between risk and ambiguity, exhibiting the same pattern of behavior in both conditions.

Title: Risk Tolerance, Information Uncertainty, and Exchange Orientation: An Investigation of their Roles in Social Exchanges


  • Curtis Wesley, University of Houston
  • Todd Saxton, Indiana University
  • Kim Saxton, Indiana University
  • John Busenbark, University of Georgia

Abstract: Using social exchange theory as the underlying framework, we develop a model that incorporates risk, exchange orientation, and information uncertainty into helping behavior research. We argue helping behaviors are a form of social exchange, and leverage expectancy and signaling theories to show how a person’s risk tolerance, exchange orientation, and perception of uncertainty associated with the information provided influences their likelihood to provide assistance to others. Using survey assessments from venture community members judging presentations of entrepreneurs soliciting for support, we find risk tolerance and exchange orientation are positively associated with helping behaviors while information uncertainty is negatively related to helping behaviors. Likewise, risk tolerance positively moderates while information uncertainty negatively moderates the relationship between a person’s exchange orientation and willingness to engage in helping behaviors.

Title: Shaping and Experimenting in a Nascent Industry


  • Tiona Zuzul, London Business School
  • Mary Tripsas, Boston College

Abstract: We explore the activities entrepreneurs undertake when building a new organization in a new, or nascent, industry. Using in-depth qualitative data, we tracked the development of four organizations in the air taxi market. We found that founders enacted two sets of activities: one aimed at shaping their market, the other at experimenting with their organizations’ identities and business models. We thus conceptualize shaping and experimenting as distinctive tasks driven by divergent entrepreneurial mindsets, and propose that entrepreneurs in a nascent industry are unlikely to pursue both simultaneously. We also propose that successful entrepreneurs focus on experimenting before attempting to shape their nascent industries. Our analysis suggests that visionary entrepreneurs who set out to create a new industry are not always poised to build successful, resilient organizations.

All Sessions in Track K...

Sun: 08:00 – 09:15
Session 386: Entrepreneurial Corporate Governance
Sun: 09:30 – 10:45
Session 387: Social Capital in Emerging Markets: Local, Glocal or Global?
Sun: 11:15 – 12:30
Session 462: Crowdfunding: State of the Art and Directions for Future Research
Sun: 15:45 – 17:00
Session 235: Cognitive and Behaviorial Perspectives of Entrepreneurial Decision Making
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 607: Entrepreneurship and Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 227: Entrepreneurial Orientation, capabilities and firm performance
Session 445: Adaptation issues for Entrepreneurial Firms
Mon: 11:00 – 12:15
Session 232: Theory Building in the Field of Entrepreneurship
Session 440: Entrepreneurial Strategies in Emerging and International markets
Mon: 14:45 – 16:00
Session 231: Entrepreneurial Leadership: What it Takes to be a Successful Enterprise?
Session 457: Ownership and Funding Structures: Performance Implications for the entrepreneurial firms
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 229: Who Founds and how the Founding Team Impacts the Entrepreneurial Firm?
Tue: 08:00 – 09:15
Session 224: Funding an Entrepreneurial Venture: What Works and What Does Not?
Session 236: Universities, Academics and Incubators: The Role of Academic Institutions in Shaping Entrepreneurial Firm and Outcomes
Tue: 11:00 – 12:15
Session 230: TMTs as Firm Resources
Session 309: New Conversations on Business Models
Tue: 15:30 – 16:45
Session 225: Entrepreneurial Networks: Formation and Implications
Session 228: Dynamic Capabilities and Performance Implications for New Firms
Tue: 17:15 – 18:30
Session 234: Institutional, Industry and Firm Specific Impacts on Nascent Firms
Session 441: Funding Entrepreneurial Ventures: Sources and Successes

Strategic Management Society