How Much Entrepreneurial Characteristics Matter in Strategic Decision-Making?

Abstract

The main object of this paper is to examine the effects of entrepreneurial characteristics on the dimensions of strategic decision-making (SDM) process. Thus the research was conducted with 308 Turkish women entrepreneurs listed in The Union of Chambers and Commodity Exchanges of Turkey (TOBB)’s members in the form of local chambers of commerce and industry. As the results of analyses, women entrepreneurs’ risk propensity have negative effect on their rational SDM process where as their risk propensity have positive effect on their formalized and centralized SDM process controlling environmental dynamism. Results show that women entrepreneurs with high need for achievement tend to make less rational SDs and centralize authority into the hands of themselves in dynamic environments. According to the results of analyses, women entrepreneurs with internal locus of control are more likely to make less rational decisions; favor more formalized processes and centralization. Results also show that optimistic women entrepreneurs make SDs based on subjective factors instead of rational SDs but follow more rule formalization in dynamic environments. According to findings, it can be suggested that women entrepreneurs’ aggressive and proactive behavior lead them to make less rational decisions. Also they tend to follow more rule formalization in dynamic environments. Nevertheless, results also show women entrepreneurs with innovativeness tend to deal with novel and complex problems while adopting innovations. However, they make rational decisions while following rule formalization and do not delegate SDM authority. Furthermore, from the results of the analyses it is seen that entrepreneurial characteristics matter most in rational SDM process. This study's theoretical contribution is examination of effects of entrepreneurial characteristics on dimensions of SDM process in a comprehensive model; proposing new variables in the model and filling this gap in the research. Furthermore, this study's practical contribution is there is lack of research that consists of stated variables in our model conducted in small and medium size enterprises (SMEs) especially with women entrepreneurs. And finally, the methodological contribution of this study is investigation of predictors of SDM process in the context of entrepreneurial characteristics and business environment in Turkey, a developing country; it shows the external validity of factors influence on SDM process which were tested in Western developed countries.