A neuroeconomic perspective on strategic decision-making

Only abstrac

Emotions, cognitions and the individual-opportunity nexus:interactive paper

The question why some individuals and not others exploit entrepreneurial opportunities is still not answered. There is consensus that the nature of opportunity plays a key part in the pre-entrepreneurial decision-making process (e. g. Lang-von Wins 2004, Phan et al. 2002) which contains the recognition, the evaluation and the exploitation of an entrepreneurial opportunity (Shane and Venkataraman 2000). Some researchers (e. g. Busenitz and Lau 1996, Mitchell et al. 2000) argue that the subjective, mental processes in individuals play a crucial role in the pre-entrepreneurial process and for the decision to exploit an opportunity. Therefore, this study seeks to explore individuals’ different perceptions of entrepreneurial opportunities and the role of cognitive appraisals and affective states in this perception-shaping process in order to fill the gap of the ‘Individual-Opportunity-Nexus’ (Shane 2003)

Der Einfluss von Kognition und Affekt auf Unternehmensgründungsentscheidungen : eine vergleichende Analyse von Angestellten und Uunternehmern # The influence of cognition and affect on entrepreneurial decisions : a comparative analysis of employees and entrepreneurs

The relationship between individuals’ entrepreneurial behavior and objective situational characteristics of an entrepreneurial opportunity—individual-opportunity nexus—lies in the focus of entrepreneurship research. The role of subjective appraisals and affective influences in the pre-entrepreneurial process was neglected in this context so far. On the basis of a questionnaire experiment with two different samples of employees and entrepreneurs, our results confirm central assumptions of cognitive appraisal and emotion theories. The subjective appraisals of objective entrepreneurial opportunities better predict entrepreneurial evaluation and exploitation decisions than the objective characteristics of the entrepreneurial opportunity. Furthermore, the results show in addition to an inverse direct effect of negative affect that the relationship between the entrepreneurial evaluation and exploitation is negatively moderated by negative affect. Our analyses indicate that the two subsamples show differences in their cognitive processes, but that they are still generally comparable. The affective influences on the pre-entrepreneurial process, however, demonstrate no group specific differences. These results extend the individual-opportunity-nexus-paradigm that is based on objective characteristics by examining the meaning of subjective appraisals and affective reactions and therefore the intersection of individuals and entrepreneurial opportunities

Emotions and opportunities : the interplay of opportunity evaluation fear, joy, and anger as antecedent of entrepreneurial exploitation

This research examines the interplay of opportunity evaluation and emotions as determinants of entrepreneurial exploitation using affect-as-information theory and the affective processing principle as conceptual bases. Three central assumptions are confirmed across two studies. The first is that the effects of opportunity characteristics on exploitation are mediated by evaluation. The second is that emotions influence exploitation decisions in addition to evaluation. Fear reduces exploitation, whereas joy and anger increase it. The third is that fear, joy, and anger influence evaluation's effect on exploitation with higher levels of fear reducing and higher levels of joy and anger increasing the positive impact of evaluation on exploitation

Psychological perspective on Entrepreneurship

Østergaard, Santos, and Costa argue that entrepreneurship is increasingly perceived as a lifestyle and underscore the importance of understanding how entrepreneurial activities influence and are influenced by the entrepreneurs’ well-being. Through the lenses of well-being theories, building on the eudaimonic and hedonic dimensions of well-being, Østergaard et al. put forward a general framework to inspire future research and practice in entrepreneurship grounded on the psychological theory of well-being. According to Østergaard et al., integrating theories of well-being from psychology into entrepreneurship research is necessary to understand the impact of entrepreneurship on individuals’ mental health, promote quality of life, understand the motivations underlying entrepreneurial behavior, and further understand how entrepreneurs change their environment, discover opportunities, and advance societies in innovative ways