The Role of Attributional Explanatory Style in the Perceived Outcomes of Entrepreneurial Venture Failure

Abstract

The study tests the application of combining attribution theory and the explanatory style models of Abramson, Seligman and Teasdale(1978) and Weiner (1979, 1986) to entrepreneurial situations, specifically venture failure. Data support the conclusion that attributional explanatory style does relate to the perceived outcomes of a failed venture, specifically, the four areas of risk identified by Liles (1974) as being influenced by the entrepreneurial startup—financial well-being, career opportunities, family relations, and self-esteem. Because of the possible difficulty in abstracting singular causal relationship concerning attribution, overall explanatory style may be more influential for how individuals interpret events and behaviors and make causal explanations for answering why things happen. In this study, an overall explanatory style of external, unstable, specific, and uncontrollable attributions was associated with more positive perceived outcomes related to all the four areas of risk in the context of a failed entrepreneurial venture.