The relationship between the personality traits of entrepreneurs and their decision-making process: the role of manufacturing SMEs’ Institutional Environment in India

Abstract

The objective of the current research is to investigate and pinpoint the expected impacts of specific personality characteristics of entrepreneurs (i.e. their goalorientation and risk propensity) on the decisionmaking process concerning the growth and development of their new ventures. Moreover, it explores the mediating role of risk propensity in the relationship between the personality characteristics of entrepreneurs and their decision-making process, as well as the moderating influence of the institutional environment on the relationshipbetween risk propensity and the decision-making process of SMEs. Data has been gathered viaa single cross-sectional survey with a structured questionnaire administrated to182 Indian entrepreneurs. Partial least squares structural equation modelling (PLS-SEM) has been used to test the proposed hypotheses and analyse the empirical results of the study. The overall findings of the present study indicate that entrepreneurs’ personality traits have a considerable effect on their decisionmaking process regarding their new business models. Furthermore, the empirical evidence supports the moderating effects of the institutional environment.