The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspect of entrepreneurship

This chapter introduces the content of the book, presenting the key insights from the contributed chapters.

This chapter analyzes how entrepreneurs of a same district, thus dealing with similar sets of resources and accesses to market, respond to innovation pressure. Spread over five-year period from 2010 to 2014, this is a longitudinal qualitative multiple case studies conducted in Italy’s Prato textile district, near Florence. The authors adopted a content analysis to reconstruct the perceptions about innovation trajectories adopted by a sample of entrepreneurs. Our findings show that despite equal pre-conditions, we observe firms evolving differently due to their approach to pursing opportunities, based on network configurations and cognitive interpretations of internal support for implementation. This chapter develops an interpretation of the findings adopting a framework based on the effect of strong and weak ties and a cognitive approach based on an effectual or causal entrepreneurial decision-making.

Entrepreneurship educators have recently employed various computer- and game-based teaching methods to develop students’ entrepreneurship knowledge and competencies. However, our understanding of the learning outcomes (LOs) of such methods for students and specifically gamification teaching techniques is fragmented and underdeveloped. This chapter aimed to narrow the gap by systematically analyzing the peer-reviewed empirical studies on gamification and students’ entrepreneurship LOs (ELOs).

This study employed the systematic literature review method to examine the papers on the intersection between gamification and entrepreneurship education (EE). Some of 80 papers were retrieved from Google Scholar, Web of Science and Scopus databases and 16 papers were included in the final analysis. The papers were analyzed based on the key LOs that teaching entrepreneurship using gamification have for students.

This study found limited literature on the interrelationship between gamification and students’ ELOs. The majority of these studies suggested a positive association between gamification and students’ ELOs. These ELOs were classified into four key groups including cognitive, behavioral, social/interpersonal and skill-based LOs. This analysis explored the huge gap in empirical studies on the impact of gamification on students’ ELOs.

This exploratory study is limited to the systematic review of the empirical researches published in scientific journals. Of the numerous game-based and simulation teaching methods, this systematic analysis focused on gamification and its effects on cultivating entrepreneurial knowledge and competencies in students. Future studies should include published and unpublished papers in other sources (such as books, book chapters, working papers and theses) and other types of technology-based entrepreneurship teaching methods.

Educators and computer-based game designers may use the findings of this study to improve the effectiveness of gamified EE and training programs by connecting the objectives and content of the programs to students’ ELOs and examining if the programs create the intended ELOs in students.

This chapter is one of the first attempts that examines students’ LOs of gamification in EE. This chapter contributes to the limited validated knowledge and understanding of the impact of gamification on ELOs of students.

Crowdfunding campaigns reflect the personality traits of the entrepreneur, influencing the chances of a successful fundraising. In this study, the authors focus on three different entrepreneurs’ personality dark traits: narcissism, Machiavellianism and psychopathy. Through a text analysis of 338 equity-crowdfunding campaigns in the UK, the authors identified narcissistic expressions used by entrepreneurs in their pitches, and their impact on funding success. The authors found an inverted U-shape relationship between entrepreneurs’ narcissism and the crowdfunding success. On the other hand, entrepreneurs’ psychopathy has a negative linear relationship with crowdfunding success. This study contributes to the entrepreneurship literature, highlighting the importance of displayed entrepreneurs’ personality traits in engaging with crowd investors.

Since 2012, with the Growth Decree 2.0, the Italian Government has been engaged in promoting the establishment and the growth of new innovative startups with a high technological value. The general objective of the policy is to promote sustainable growth, technological advancement and innovation. In the Decree framework, startups have to own an innovative character that is identified by at least one of the following three criteria: investments in research and development, qualified workforce, holding patents or registered software. Such three characteristics can be considered as innovation inputs able to create the conditions for a competitive advantage and greater economic performance. The research objective is to analyze how innovation inputs in innovative startups affect their economic performance. Each input factor can have a different impact on the company profitability. To this end, we apply the methodology SMAA for strategic management analysis and assessment (or SMAA-S) to detect the relation between innovation and profitability in Italian startups.

The present chapter aims to provide a holistic perspective by investigating how passion types can have a role on entrepreneurs’ target of passion with the integration of Hofstede’s cultural dimensions. A conceptual framework was administered in order to build the association between passion types and targets of passion in the light of the literature by which harmonious and obsessive passions are proposed to be the determinants of different targets of entrepreneurs’ passion. Additionally, based on the extant literature, the role of culture in shaping the entrepreneurs’ target of passion is addressed by utilizing Hofstede’s cultural approach. Seven major propositions were discussed to provide a comprehensive understanding of entrepreneurial passion and targets of passion.

Research has found that stereotypes affect occupational choices, but there has been almost no research on how they specifically affect the choice of becoming an entrepreneur. This study bridges different fields of research by combining theories on entrepreneurial intent, self-esteem, and stereotypes. The author argues that in situations of insufficient information individuals assess prospective careers in commercial and social entrepreneurship by means of stereotypes, and the author is the first to explore the influence of commercial and social entrepreneurial stereotypes on an individual’s intention to start a commercial (for-profit) or social (not for-profit) venture. The author uses the framework outlined by the stereotype content model to disclose the existence of distinct stereotypes for commercial and social entrepreneurs exist and, thereafter, the author analyzes the influences of both entrepreneurial stereotypes on the specific startup intentions. The author test the hypotheses with unique survey data from a sample of German non-entrepreneurs which reveals that commercial entrepreneurs are seen as competent but cold, whereas social entrepreneurs are regarded as warm but incompetent. Using structural equation modeling and multi-group analysis, the data implies that higher levels of perceived warmth and competence of commercial entrepreneurs have a positive indirect effect on commercial startup intentions. No such effect was found for social startup intentions; however, the results indicate that a higher societal status of social entrepreneurs exerts a positive indirect impact on the intention to start a social business. The author discusses the practical implications of our approach and point out avenues for future research.

This chapter seeks to advance ongoing research concerning entrepreneurial commitment. While the concept of commitment has been addressed time and again in organizational literature, few entrepreneurship scholars have used it to understand entrepreneurial behaviors. In line with recent developments in entrepreneurial psycho-social literature (Fayolle & Liñán, 2014; Adam & Fayolle, 2015; Van Gelderen, Kautonen, Wincent, & Biniari, 2018), this conceptual chapter aims to advance understanding of the concept of commitment in the context of emerging organizations. Building on Meyer and Allen’s three-component model of commitment (TCM), it addresses how this multidimensional concept, developed in the organizational setting, is a lens through which one can investigate volitional phases of the entrepreneurial process (Van Gelderen, Kautonen, & Fink, 2015). Our work also explores how the TCM could be specifically adapted for emerging organizations, drawing on its main evolutions and re-conceptualizations since the 1990s. In this way, it uncovers potential avenues for further research on how to operationalize entrepreneurial activity. In doing so, it enhances knowledge of the entrepreneurial process and can improve training and support techniques for nascent entrepreneurs. It also contributes to broader discussions on the TCM and how it should be adapted in order to foster self-determined processes.

This chapter uses reflexive praxis to advance a framework for developing creative virtuosities for entrepreneurs based on four interrelated aspects: finding their own voice and passion at work; unleashing creativity and imagination at work; working collaboratively toward innovation; and handling complexity and integrative thinking. These four creative virtuosities emerged from observations and exploratory interviews with training program participants on five different occasions in Turkey, the UK, and Canada. They are illustrated through four arts-based metaphors: poetry; theater; orchestra; and jazz. The core premise of this chapter is that these four virtuosities can provide entrepreneurs with a sound basis and a wealth of knowledge on developing creative solutions to new socioeconomic challenges of prospective radical technological and economic changes.

When entrepreneurs create new ventures, they struggle with making consequential decisions under severe restrictions such as tight deadlines, limited resources, and lack of information. Making challenging decisions inherently requires creativity as entrepreneurs improvise and work around the limitations they face. Under these conditions, entrepreneurs resort to their heuristics and biases instead of rational decision models. Entrepreneurs employ – sometimes for better and sometimes for worse – a myriad of rule-setting heuristics and experience-based biases to navigate the difficult path between novelty and utility. In this chapter, the authors answer Shepherd, Williams, and Patzelt’s (2015) call for research into how entrepreneurs leverage heuristics and biases in decision-making and the benefits they gain as a result. The authors explore how entrepreneurs introduce heuristics and biases at different stages of their decision-making process using a qualitative study of 21 new ventures. The results attest to entrepreneurs’ ingenuity and creativity in managing complexity, ambiguity, and uncertainty.

This study enriches the theory of effectuation by discussing the four independent dimensions of effectuation and their relationships with causation. Additionally, we fill the gap in prior literature by showing how entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture. Our study of 171 practising entrepreneurs regarding their entrepreneurial decision-making logic yielded multiple findings. The authors find that entrepreneurs rely on causation as well as effectuation in their decision-making; the more experienced entrepreneurs are, the more they actually use causation; and entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture firm.

Rational use of the information available to companies is one of the strategic concerns for both family businesses and non-family businesses. The aim is to make the best use of the information resulting from data analysis in order to gain strategic advantage and to be more competitive as a company in all its functional areas. Experience indicates that emotions play an important role, especially in family businesses. Many maturation models exist to analyze decision-making processes (DMPs), but none from the perspective of family business cognition. The authors start from their own “Circumplex Hierarchical Representation of Organisation Maturity Assessment” (CHROMA) model (Parra, Tort-Martorell, Ruiz-Viñals, & Alvarez-Gomez, 2017), which was created to support decision processes in family businesses. This model was proven successful in the analysis of DMPs in large family businesses. The model was simplified as CHROMA-SHADE (Parra, Tort-Martorell, Ruiz-Viñals, & Alvarez-Gomez, 2019), more adequate for the analysis of small and medium-sized family businesses. Despite being a good DMP analysis instrument, intangible aspects such as family values and emotions have not yet been included. Both entrepreneurial emotions and entrepreneurial cognition must be taken into account when analyzing the DMP of the family business. In this chapter, the authors wish to explore attributes that can be introduced into a new dimension in the CHROMA model in order to make it more specific in the analysis of DMPs of family businesses regardless of size. The resulting FAMILY-CHROMA model represents a specific maturation model to evaluate DMPs based on the use of business information of family businesses.

Venture capital is a critical source of funding and development of new ventures. The investment decision of venture capitalists (VCs) is a multi-stage assessment process where the entrepreneurs’ characteristics are the most important criteria to determine the decision to accept or to reject the proposal at the screening stage. At this stage, the decision-making of VCs is influenced by their subjective characteristics and their interactions with the entrepreneurs who share the same characteristics as theirs. How do the entrepreneurial experiences of both VCs and entrepreneurs interact and bias the evaluation? Several studies have tried to provide an answer to this still pending question. Research concurs in that entrepreneurial experience drives primarily the screening decisions of VCs. Yet, if many studies have shown that VCs are prone to cognitive biases in their evaluations, research focusing on the relationship between of those biases and entrepreneurial experience in the context of investment decision is scarce. VCs’ cognitive biases have been linked to the subjective characteristics of VCs. Most precisely, many studies have shown that a common bias among investors is the similarity-attraction bias such that VCs’ evaluations improve when VCs and entrepreneurs share the same characteristics. As a result, it is likely that entrepreneurial experience plays a significant role in explaining biases in investment decisions. Overall, research points out the importance of entrepreneurial experience of both VCs and entrepreneurs, their interactions and the cognitive biases shaped by their respective experiences in explaining the investment decisions of VCs at the screening stage.

According to the World Health Organization (WHO, 2015), in the next 30 years, the world population will age rapidly, so that in the middle of the twenty-first century those people who are over 60 years of age will be double that at the beginning of the century. Between 2015 and 2050, the world population with more than 60 years of age will increase from 900 million to 2,000 million.

Faced with this demographic change experienced by the world population, formulas are increasingly being raised that make active aging possible, opening possibilities for self-realization and personal and professional growth until the end of life. This is one of the reasons why more and more scholars and practitioners are focusing on the value of entrepreneurship in older adults and the programs that encourage it.

This chapter aims to reflect on what leads the group of so-called senior entrepreneurs to start a new work–life based on entrepreneurship or self-employment, as well as discuss some myths of entrepreneurship. To what extent we must consider the firm performance as a variable on which the decision can be taken is pivoted. Entrepreneurship is a complex issue, and although it is true that it has been strongly analyzed both academically and professionally by different generations of young people, the behavior of senior entrepreneurs, a population group that is becoming increasingly important sociologically and economically, has barely been studied.

Entrepreneurship and small- and medium-sized enterprises (SMEs) play a pivotal role in the socio-economic development worldwide. They are, indeed, recognised as important economic drivers as their activities can boost economic growth in various ways, such as being source of employment, promoting equality among socio-economic groups, and fostering the development of new products. In line with this, SMEs contribution to innovation has been extensively investigated by researchers and policymakers. European Union, for example, has developed numerous programmes to foster innovation in and by SMEs, even identifying, categorizing, and periodically analysing the so-called ‘innovative SMEs’.

However, very scant is the attention, at the international level, devoted to the analysis of the role of gender in innovation per se and in innovative SMEs. This chapter fits into this underinvestigated stream of research by specifically analysing the impact, if any, of gender on Italian innovative SMEs’ performance.

This case study describes practices in a micro-entrepreneur peer-to-peer network (MicroENTRE network), an example of a community of practice (CoP) where entrepreneurs, researchers and local public business advisory services (PBAS) seek to promote entrepreneurial behaviour through joint activities, such as sharing ideas, peer learning and business development. The concept was originally established to address the practical needs of micro-entrepreneurs and business development agencies in sparsely populated areas (SPA). Through the network, micro-entrepreneurs and PBAS are provided with direct contact to the university research team, which transfers recent research-based knowledge to the network. This chapter bridges the literature on micro-entrepreneurship and entrepreneurial behaviour in networks through an empirical description of micro-entrepreneurs’ activities in the context of a peer-to-peer network using the typical CoP activity classifications developed by Wenger as the framework. The case study is based on the longitudinal analysis of monthly meetings (from 2015 to 2019) of 13 micro-entrepreneur groups. The data consist of participatory observations during the network meetings and the audio recordings and meeting memos of the authors. The findings describe typical examples of CoP activities in the network. For example, entrepreneurs use the network to share ideas, make requests for advice based on experience of fellow entrepreneurs and reuse the assets of other network members. Moreover, the data show that regular, peer-to-peer network meetings, jointly facilitated by PBAS and researchers, are an acceptable and accessible platform for micro-enterprise development in SPA.

Entrepreneurs and their ventures face innumerous constraints (e.g., lack of funding, lack of business skills, and lack of social support) since the moment business opportunities are identified and chased, until the venture comes to reality. Scholars have conceptualized constraints as obstacles in nature, that is, as always undermining entrepreneurs’ behavior. Nonetheless, prior research has presented conflicting results. Specifically, a same constraint may or may not have a negative effect on entrepreneurs’ action. As advanced by Van Gelderen, Thurik, and Patel (2011), this suggest that “the nature of [entrepreneurial] problems is essentially evaluative, and therefore subjective.” Accordingly, a same constraint may be seen as a problem by one person but not by another. This chapter explores the evaluative nature of entrepreneurial constraints. Based on the cognitive appraisal framework (Lazarus & Folkman, 1984) – which argues that constraints are not the direct precipitating cause of a behavior, but rather the person’s appraisal of challenge and threat that determines the response – this chapter argues that distinct appraisals (i.e., challenge vs threat) of a same entrepreneurial constraint will be associated with distinct degrees of effort from entrepreneurs (i.e., enhanced vs reduced, respectively). This chapter provides a useful framework for entrepreneurship scholars to study the nuanced effect of entrepreneurial constraints on entrepreneurs’ behavior.