Entrepreneurial opportunity decisions under uncertainty: Recognizing the complementing role of personality traits and cognitive skills

Abstract

Purpose: The aim of this paper focuses on advancing the entrepreneurial literature by enhancing the understanding of the connections between personal behavior and cognitive skills in decision making under uncertainty. Methodology: The method of this research has been adapted the framework used by Garrett and Holland (2015), who developed propositions from the conceptual narratives of how environmental uncertainty and complexity differentially affect the motivations and cognition of independent entrepreneurs and corporate entrepreneurs to engage in entrepreneurial action. Findings: The findings of this research provide a conceptual basis for a broader perspective on behaviors and cognitions that motivate or hinder entrepreneurial actions while at the same time, positioning the entrepreneur’s decision at the core of decision theory. Implications for theory and practice: Theoretically, this research contributes to a holistic view of opportunity decisions. It redirects the traditional analyses path of entrepreneurial decisions discussed distinctively from the personal behavior or cognition paradigm, which does not provide a complete view into the larger entrepreneurial decisions under uncertainty. Practically, our argument provides further insight into the black box of entrepreneurial opportunity decisions under uncertainty and thus highlights the need for a broader perspective for the entrepreneur, especially in the early stage of venture formation, where some cognitions and required personal attributes are needed in consonance for entrepreneurial action. Originality and value: Entrepreneurship research on decision making under uncertainty has mainly focused on the effect of uncertainty on entrepreneurial actions, while an attempt at the individual level, particularly, from the cognitive framework seeks to explain why actions differ. Scholarly efforts have also been made on what informs entrepreneurial actions from the perspective of the entrepreneur’s personal attributes. However, no integrated approach is offered in the literature to study how cognitive skills and personality traits complement each other.

Context-specific micro-foundations and successful SME internationalisation in emerging markets: A mixed-method analysis of managerial resources and dynamic capabilities

“…The international business market is a complex environment, which is formed by interconnected different stakeholders such as suppliers and distributors, customers, competitors, involved in both public and private sectors (Garousi Mokhtarzadeh et al, 2020;Kalinic & Forza, 2012;Kim & Hemmert, 2016). Highlighting its crucial function in the internationalisation process, the literature highlights that international networking assists firms (SMEs in particular) exploit new opportunities to overcome their shortcomings of necessary resources (Chandra & Wilkinson, 2017;Mensah et al, 2021). Therefore, leveraging international networking is seen as an important strategy for SME managers looking at global markets as an opportunity for their business (Jafari- Sadeghi, Dutta, Ferraris, & Del Giudice, 2020;Jafari-Sadeghi, Kimiagari, & Biancone, 2020;Jafari-Sadeghi, Nkongolo-Bakenda, Dana, Anderson, & Biancone, 2020;Narooz & Child, 2017).…”

Entrepreneurial propensity for market analysis in the time of COVID-19: benefits from individual entrepreneurial orientation and opportunity confidence

“…Depending on the obtainable information, uncertainty can be mild, severe, or absolute. While mild uncertainty has a negligible impact on entrepreneurs' decisions, severe uncertainty -like what is being experienced during the COVID-19 crisis-might make entrepreneurs unable to differentiate relevant from irrelevant information in the time of perceiving opportunity (Mensah et al 2021). Extensive knowledge and information about the market balance entrepreneurial decisions (Krizner 1979), but due to morbid uncertainty in the COVID-19 crisis, there seems to be a dearth of information at first sight.…”

“…However, in a different circumistance, having ample OC leads entrepreneurs to try to eliminate the uncertainty surrounding the opportunity. This uncertainty stems from unknown or limited information about the new circumstance and can be abated by accessibility to information (Mensah et al 2021). Hence, by fueling the uncertainty, the COVID-19 crisis is increasing EPMA in nascent entrepreneurs who need to corroborate the feasibility and favorability of the opportunity.…”

Identification, analysis and improvement of red meat supply chain strategies considering the impact of COVID-19 pandemic: a hybrid SWOT-QSPM approach in an emerging economy

“…Extensive studies have been carried out in the field of supply chain studies, especially the meat supply chain. Literature sought to create transparency in the meat supply chain following international standards (Bresciani et al, 2015a, b;Jafari-Sadeghi et al, 2020b;Kassahun et al, 2016;Mensah et al, 2021). To address this concern, a transparency software system was needed at the chain level designed to be able to meet the needs of the stakeholder.…”