The Impact of Role Identities on Entrepreneurs’ Evaluation and Selection of Opportunities

Abstract

Extant research suggests that entrepreneurs’ identities influence the venture creation process. However, we know little about how the “hats” that entrepreneurs wear (i.e., their different role identities) influence how entrepreneurs think about—and select—opportunities. Employing verbal protocol and content analysis techniques, we show that, depending on the role identity assumed, entrepreneurs attend to different opportunity features and make different decisions with regard to opportunity consideration and selection. As a result, role identity has an important situated influence on entrepreneurs’ cognition, which may significantly affect the pattern of growth and pursuit of their new ventures.

Entrepreneurs’ social identity and the preference of causal and effectual behaviours in start-up processes

“…On the one hand, role identity theory reflects the differences in perceptions and actions that come with a role (Mathias and Williams 2014). This role can be a stable or more situated identity (Ashforth, Harrison, and Corley 2008), and assuming a particular role makes us think and act differently than when taking another role (Ren and Guo 2011).…”

“…Recent research suggests that we should not assume a single role identity; entrepreneurs can assume and navigate many role identities and, depending on the role identity assumed, entrepreneurs will think differently about opportunities and make different decisions with regard to them. Mathias and Williams (2014) emphasize within-work role identities. In addition, Farmer et al (2011) suggest that it is not just the current identity but also the aspirational role identity as an entrepreneur that predicts entrepreneurial behaviour.…”

After the harvest: A stewardship perspective on entrepreneurship and philanthropy

“…For example, entrepreneurs might retain their wealth within their family, spend it lavishly on themselves, invest in new business ventures, donate money to charitable causes, or expend their resources on a combination of these, or potentially other, avenues. To date, scholars have examined how entrepreneurs formulate and deploy exit strategies (DeTienne, 2010;Wennberg et al, 2010) as well as how entrepreneurs make decisions when launching a new venture (Short et al, 2010) or reinvesting in a current venture (Mathias and Williams, 2017), but scholars are silent on how entrepreneurs make decisions following a harvest.…”

“…Whereas wealthy individuals might identify with other philanthropists, this social categorization is somewhat broad relative to entrepreneurs, who often share similar life experiences and have a more clearly defined social group (Mathias and Williams, 2017). Given that entrepreneurs comprise a significant proportion of a community's wealthiest individuals who share identifying features and experiences, their influence on one another could have a potentially amplifying and cyclical effect.…”

Filthy Lucre? Innovative Communities, Identity, and Commercialization

“…Passion for entrepreneurship is dependent on individuals seeing themselves in an entrepreneurial identity (Cardon et al 2009), and the choice to become an entrepreneur is strongly influenced by an individual's identity (Murnieks et al 2014). Not only are career transitions to entrepreneurship affected by identity, but people who do not identify as entrepreneurs may process information in a way that causes them to see fewer entrepreneurial opportunities (Hoang andGimeno 2010, Mathias andWilliams 2014). Self-identity may therefore play a large role in the decision to commercialize.…”