Explorative and exploitative choices in response to initiative failure : study of entrepreneurs and managers
Piotr Wójcik, Mariola Ciszewska-Mlinarič
Objective: The objective of the article is to investigate how cognitive framing of initiative failure affects strategic decision-making by entrepreneurs and managers in terms of exploitation and exploration. Research Design & Methods: A set of hypotheses is tested in a quasi-experimental study using a scenario-based approach and a usable sample of 59 participants. Specifically, the data were analysed using two paired t-tests and a one-way multivariate analysis of variance (MANOVA). Findings: We draw on prospect theory, behavioural theory, and the threat-rigidity hypothesis to investigate the individual intention to make explorative and exploitative choices in response to initiative failure. The study finds that – under the condition of uncertainty - the experience of initiative failure increases entrepreneurs’ (decreases managers’) willingness to make risky choices and decreases entrepreneurs’ (increases managers’) willingness to make risk-avoidant choices. Implications & Recommendations: This study differentiates the notion of initiative failure from the broader notion of entrepreneurial failure, showing that it has a stimulating (discouraging) effect on further entrepreneurial (managerial) intentions in terms of attitudes to risk. The study was conducted on a relatively small sample of participants representing businesses in Poland. Contribution & Value Added: This study extends existing lines of reasoning by considering initiative failure - clearly delineating it from entrepreneurial failure – and testing its effect on intentions to make strategic choices among entrepreneurs and managers. Decision-makers’ responses cannot be explained solely by the behavioural theory and individual factors, as they are also affected by the organisational context.
Year of publication: |
2020
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Authors: | Wójcik, Piotr ; Ciszewska-Mlinarič, Mariola |
Published in: |
Entrepreneurial business and economics review : EBER. - Kraków : [Verlag nicht ermittelbar], ISSN 2353-8821, ZDB-ID 2776188-5. - Vol. 8.2020, 3, p. 83-99
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Subject: | failure | decision-making | entrepreneurship | behavioural theory | Entrepreneurship | Entrepreneurship approach | Entscheidung | Decision | Führungskräfte | Managers |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Aufsatz in Zeitschrift ; Article in journal |
Language: | English |
Other identifiers: | 10.15678/EBER.2020.080305 [DOI] |
Classification: | D70 - Analysis of Collective Decision-Making. General ; L26 - Entrepreneurship ; M13 - Entrepreneurship |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012517911