Abstract
PurposeThe purpose of this paper is to unpack the underlying mechanisms of entrepreneurs' passion, orientation and behavior by investigating the role of rational and nonrational cognitive elements. Building on dual process theory and sociointuitionism, a conceptual model is proposed in order to explore the relationship between entrepreneurial passion, entrepreneurial orientation (EO) and strategic entrepreneurship behavior (SEB). Specifically, entrepreneurs' linear thinking styles (System 2) and nonlinear thinking styles (System 1) are hypothesized as being significant moderators of such a relationship.Design/methodology/approachCovariance-based structural equation modeling (CB-SEM) is used to empirically validate the proposed conceptual model and test the moderating hypotheses on a sample of 300 entrepreneurs actively involved in European small and medium enterprises (SMEs).FindingsEntrepreneurial passion is shown to be a significant antecedent of EO, which, in turn, strongly influences SEB. Moreover, entrepreneurs' linear thinking style positively moderates the EO-SEB relationship, but not the link between passion and EO. Instead, a nonlinear thinking style positively moderates the relationship between passion and EO, but not the links between EO and SEB.Practical implicationsEntrepreneurs should trust their nonlinear thinking style – related to affective/emotive and intuitive information processing systems – to foster the effect of their entrepreneurial passion on EO. Furthermore, entrepreneurs should rely on a linear thinking style, namely the rational and deliberative cognitive processes, to enhance the impact of their EO on SEB.Originality/valueDual process theory and sociointuitionism are integrated to simultaneously investigate the effect of nonrational and rational cognitive mechanisms on entrepreneurs' orientation and behavior. Moreover, the proposed model is empirically tested on a sample of entrepreneurs working in SMEs located in Europe, which have received little attention from entrepreneurship scholars in comparison to their US counterparts. The authors’ findings suggest important implications for entrepreneurs, policymakers and entrepreneurial universities educators.
Highlights
Small businesses with less than 50 employees make up the vast majority of enterprises in the 28 [1] EU countries
For nonlinear thinking style (M2), we observed an oppositional situation: this variable positively moderated the relationship between entrepreneurial passion (EP) and entrepreneurial orientation (EO), which increased at β 5 þ0.45 (p < 0.01), but had no significant moderating effect (p > 0.10) on the EO/strategic entrepreneurship behavior (SEB) relationship
While extant literature has already explored the existing relationship between EO and SEB, scholars have largely neglected the possible antecedents of such a link (Ferreira et al, 2015)
Summary
Small businesses with less than 50 employees make up the vast majority of enterprises in the 28 [1] EU countries. Small and medium enterprises (SMEs) are extremely important to the economic growth of countries worldwide (Adomako et al, 2016). Entrepreneurs, are characterized by their high capacity when it comes to stress resistance, risk tolerance and persuasiveness by virtue of their creativity and long-range orientation (Gartner, 1990; Davidsson et al, 2006; Laudano et al, 2019). They are scrupulous owners, eager to invest their own economic resources in order to succeed in value generation. Entrepreneurs frequently represent the strategic differential between successful and prospering businesses and unprofitable ones, which seem to resist change (Lechter, 2001; Futterer et al, 2018)
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