An Exploratory Study of Antecedents of Entrepreneurial Decision-Making Logics: The Role of Self-Efficacy, Optimism, and Perspective Taking

Abstract

ABSTRACTThis study explores the impacts of psychological factors on entrepreneurs’ preferences for causal and effectual decision-making logics. Data were collected in the USA and China. The research findings suggest that self-efficacy was positively related to the control decision-making logic and the prediction decision-making logic both in the USA and China. Optimism was negatively related to the prediction decision-making logic in the USA while there was no significant relationship between optimism and the prediction decision-making logic in China. We also found that perspective taking was positively related to the prediction decision-making logic both in the USA and China. Meanwhile, perspective taking was positively related to the control decision-making logic in China. Our findings indicate that psychological factors have impacts on entrepreneurs’ preferences for causal and effectual decision-making logics. Our research contributes to extend effectuation by exploring psychological antecedents and demonstrating that effectual logics can also stem from an increase in psychological factors.