The promise of social signal processing for research on decision-making in entrepreneurial contexts

Abstract

In this conceptual paper, we demonstrate how modern data science techniques can advance our understanding of important decisions in the context of entrepreneurship that involve social interactions. We know that individuals' decision-making is strongly affected by nonverbal behavior. The emerging domain of social signal processing aims at accurate computerized analysis of such behavior. Behavioral cues stemming from, for example, gestures, posture, facial expressions, and vocal expressions can now be detected and analyzed by state-of-the-art technologies utilizing artificial intelligence. This paper discusses and illustrates their potential value for future research on decision-making by entrepreneurs as well as by others yet directly affecting them (e.g., investors). In brief, social signal processing is more accurate and more efficient than conventional research methods and may reveal important characteristics that so far have been omitted in explaining decisions that are vital for firm survival and growth. We derive a total of five propositions from our newly developed conceptual framework, which we hope will be subject to extensive empirical scrutiny in future research.

Cognitive Biases in Critical Decisions Facing SME Entrepreneurs: An External Accountants’ Perspective

“…From their third-party role, accountants are in the position to have an overview of various types of decisions that entrepreneurs struggle with and seek advice for, as well as the cognitive biases that entrepreneurs may fall victim to in those decisions. Interestingly, a very recent conceptual study by Liebregts et al (2020) confirms that people in the social context of entrepreneurs (like the accountants in our study) and who can observe entrepreneurs in their decision making processes, are in a unique position to examine cognitive biases and Liebregts et al (2020) find this a promising avenue to advance our understanding of entrepreneurial decision making.…”

Artificial Intelligence and Entrepreneurship: Implications for Venture Creation in the Fourth Industrial Revolution

“…More importantly, a competent salesperson can usually interpret body language, gesture or a conversational pause as important features of mutually constituted meaning-making, underlining that social actions are context-bound and can be decoupled from the ostensive meaning of texts and discourses (Llewellyn & Hindmarsh, 2013). Yet surprisingly, despite these obstacles, developments in social signal processing and computer vision have demonstrated the remarkable ability of AI-enabled systems to interpret behavioural cues more effectively than humans (Liebregts et al, 2019), suggesting that AI could have potential use in an entrepreneurial selling context. This capability holds significant promise for new venture employees.…”

“…We contend that emerging forms of automation, together with some of the policy responses designed to countervail their socio-economic effects, have the potential Despite the increasing ubiquity of both mechanical and cognitive automation, little has been written specifically on the entrepreneurship-AI intersection (e.g. Liebregts, Darnihamedani, Postma, & Atzmueller, 2019;Obschonka & Audretsch, 2019;Townsend & Hunt, 2019). Instead, theoretical understanding of AI and broader processes of automation has been driven by economists who have taken a largely macro-level perspective to explore implications for employment, income and policy (Acemoglu & Restrepo, 2018;Agrawal, Gans, & Goldfarb, 2019a;Korinek & Stiglitz, 2017).…”

Eras of Digital Entrepreneurship

“…Researchers anticipate that the automation ability of artificial intelligence and its predictive capabilities will affect opportunity recognition, evaluation, and exploitation (Shane and Venkataraman 2000 ) at all stages of the entrepreneurial process (Garbuio and Lin 2019 ; Fossen and Sorgner 2021 ). Artificial intelligence could also change current or future business models (Chalmers et al 2020 ) and affect future entrepreneurial decision-making (Liebregts et al 2020 ) and the entrepreneurial ecosystem as a whole (Elia et al 2020 ). Consequently, we anticipate that improvements in artificial intelligence could define one of the forthcoming eras in the field of digital entrepreneurship, for example, by using the term “AI-entrepreneurship” (Chalmers et al 2020 ).…”