scholarly journals Entrepreneurial opportunity decisions under uncertainty: Recognizing the complementing role of personality traits and cognitive skills

2021 ◽  
Vol 17 (1) ◽  
pp. 25-55
Author(s):  
Emmanuel Kwasi Mensah ◽  
◽  
Lawrence Adu Asamoah ◽  
Vahid Jafari-Sadeghi ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Personality Traits ◽  
Cognitive Skills ◽  
Theory And Practice ◽  
Personal Attributes ◽  
Decision Making Under Uncertainty ◽  
Entrepreneurial Opportunity ◽  
Decisions Under Uncertainty ◽  
Entrepreneurial Action ◽  
Personal Behavior

Purpose: The aim of this paper focuses on advancing the entrepreneurial literature by enhancing the understanding of the connections between personal behavior and cognitive skills in decision making under uncertainty. Methodology: The method of this research has been adapted the framework used by Garrett and Holland (2015), who developed propositions from the conceptual narratives of how environmental uncertainty and complexity differentially affect the motivations and cognition of independent entrepreneurs and corporate entrepreneurs to engage in entrepreneurial action. Findings: The findings of this research provide a conceptual basis for a broader perspective on behaviors and cognitions that motivate or hinder entrepreneurial actions while at the same time, positioning the entrepreneur’s decision at the core of decision theory. Implications for theory and practice: Theoretically, this research contributes to a holistic view of opportunity decisions. It redirects the traditional analyses path of entrepreneurial decisions discussed distinctively from the personal behavior or cognition paradigm, which does not provide a complete view into the larger entrepreneurial decisions under uncertainty. Practically, our argument provides further insight into the black box of entrepreneurial opportunity decisions under uncertainty and thus highlights the need for a broader perspective for the entrepreneur, especially in the early stage of venture formation, where some cognitions and required personal attributes are needed in consonance for entrepreneurial action. Originality and value: Entrepreneurship research on decision making under uncertainty has mainly focused on the effect of uncertainty on entrepreneurial actions, while an attempt at the individual level, particularly, from the cognitive framework seeks to explain why actions differ. Scholarly efforts have also been made on what informs entrepreneurial actions from the perspective of the entrepreneur’s personal attributes. However, no integrated approach is offered in the literature to study how cognitive skills and personality traits complement each other.

scholarly journals Entrepreneurial opportunity decisions under uncertainty: Conceptualizing the complementing role of personal and cognitive abilities

2018 ◽  
Author(s):  
Emmanuel Kwasi Mensah ◽  
Vahid Jafari Sadeghi
Keyword(s):  
Personality Traits ◽  
Cognitive Abilities ◽  
Entrepreneurial Opportunity ◽  
Decisions Under Uncertainty

<p>Paper develops propositions on the complementing role of entrepreneurial personality traits and cognitive abilities towards opportunity decisions under uncertainty </p><p><br></p><p><br></p><p><br></p><p><br></p>

7. Personalities, moods, and emotions

2017 ◽  
pp. 82-99
Author(s):  
Michelle Baddeley
Keyword(s):  
Decision Making ◽  
Personality Traits ◽  
Psychological Factors ◽  
Cognitive Skills ◽  
Openness To Experience ◽  
Five Dimensions ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Affect Heuristic ◽  
Financial Decision

‘Personalities, moods, and emotions’ explains how and why psychological factors affect our economic and financial decision-making. It looks at measuring personality through OCEAN tests that capture traits across five dimensions: Openness to experience, Conscientiousness, Extraversion, Agreeableness, and Neuroticism. Our personalities have an impact on many of our economic and financial decisions and choices. Often decision-making requires some thought, and our personality traits can determine our cognitive skills and, through our cognition, drive our choices. Are emotions an irrational element in our decision-making or can emotions and rationality complement each other? The affect heuristic—where emotions guide our actions—is discussed along with the somatic market hypothesis, dual-system models, and neuroeconomics.

scholarly journals Exploiting Risk–Reward Structures in Decision Making under Uncertainty

2017 ◽  
Author(s):  
Christina Leuker ◽  
Thorsten Pachur ◽  
Ralph Hertwig ◽  
Timothy Joseph Pleskac
Keyword(s):  
Decision Making ◽  
Adaptive Change ◽  
Decision Making Under Uncertainty ◽  
Decisions Under Uncertainty ◽  
The Mind

People often have to make decisions under uncertainty – that is, in situations where the probabilities of obtaining a reward are unknown or at least difficult to ascertain. Because outside the laboratory payoffs and probabilities are often correlated, one solution to this problem might be to infer the probability from the magnitude of the potential reward. Here, we investigated how the mind may implement such a solution: (1) Do people learn about risk–reward relationships from the environment — and if so, how? (2) How do learned risk–reward relationships impact preferences in decision–making under uncertainty? Across three studies (N = 352), we found that participants learned risk–reward relationships after being exposed to choice environments with a negative, positive, or uncorrelated risk–reward relationship. They learned the associations both from gambles with explicitly stated payoffs and probabilities (Experiments 1 &amp; 2) and from gambles about epistemic events (Experiment 3). In subsequent decisions under uncertainty, participants exploited the learned association by inferring probabilities from the magnitudes of the payoffs. This inference systematically influenced their preferences under uncertainty: Participants who learned a negative risk–reward relationship preferred the uncertain option over a smaller sure option for low payoffs, but not for high payoffs. This pattern reversed in the positive condition and disappeared in the uncorrelated condition. This adaptive change in preferences is consistent with the use of the risk–reward heuristic.

scholarly journals Entrepreneurial opportunity decisions under uncertainty: Recognizing the complementing role of personality traits and cognitive skills

2019 ◽  
Author(s):  
Emmanuel Kwasi Mensah ◽  
Lawrence Adu Asamoah ◽  
Vahid Jafari Sadeghi
Keyword(s):  
Personality Traits ◽  
Cognitive Skills ◽  
Integrated Approach ◽  
Personal Attributes ◽  
Individual Level ◽  
The Core ◽  
Cognitive Framework ◽  
Complementary Role ◽  
The Individual

<p> </p><div> <div> <div> <p>Entrepreneurship research on decision making under uncertainty has focused largely on the effect of uncertainty on the entrepreneurial actions while attempt at the individual level particularly, from the cognitive framework seeks to explain why actions differ. Scholarly efforts have also been made on what informs entrepreneurial actions from the perspective of the entrepreneur’s personal attributes. However, no integrated approach is offered in the literature to study how cognitive skills and personality traits complement each other. In this paper, we consider how cognitive skills and personality traits affect an entrepreneur’s decision to discover or create opportunities under uncertainty. Specifically, we examine the complementary role of personality traits and cognitive skills towards opportunity decisions. We provide a conceptual basis for a broader perspective on behaviors and cognitions that motivate or hinder entrepreneurial actions while at the same time positioning the entrepreneur’s decision at the core of the decision theory. Propositions regarding the application of some selected personality traits and cognitive skills and their complementarity are presented and discussed. </p> </div> </div> </div><br><p></p>

scholarly journals Experiments on Decisions under Uncertainty: A Theoretical Framework

2016 ◽  
Vol 106 (7) ◽  
pp. 1775-1801 ◽  
Author(s):  
Eran Shmaya ◽  
Leeat Yariv
Keyword(s):  
Decision Making ◽  
Experimental Design ◽  
Theoretical Framework ◽  
Decision Making Under Uncertainty ◽  
Experimental Protocol ◽  
Decisions Under Uncertainty ◽  
Underlying Theory

The analysis of lab data entails a joint test of the underlying theory and of subjects' conjectures regarding the experimental design itself, how subjects frame the experiment. We provide a theoretical framework for analyzing such conjectures. We use experiments of decision making under uncertainty as a case study. Absent restrictions on subjects' framing of the experiment, we show that any behavior is consistent with standard updating (“anything goes”), including those suggestive of anomalies such as overconfidence, excess belief stickiness, etc. When the experimental protocol restricts subjects' conjectures (plausibly, by generating information during the experiment), standard updating has nontrivial testable implications. (JEL C91, D11, D81, D83)

scholarly journals Entrepreneurial opportunity decisions under uncertainty: Recognizing the complementing role of personality traits and cognitive skills

2019 ◽  
Author(s):  
Emmanuel Kwasi Mensah ◽  
Lawrence Adu Asamoah ◽  
Vahid Jafari Sadeghi
Keyword(s):  
Personality Traits ◽  
Cognitive Skills ◽  
Integrated Approach ◽  
Personal Attributes ◽  
Individual Level ◽  
The Core ◽  
Cognitive Framework ◽  
Complementary Role ◽  
The Individual

<p> </p><div> <div> <div> <p>Entrepreneurship research on decision making under uncertainty has focused largely on the effect of uncertainty on the entrepreneurial actions while attempt at the individual level particularly, from the cognitive framework seeks to explain why actions differ. Scholarly efforts have also been made on what informs entrepreneurial actions from the perspective of the entrepreneur’s personal attributes. However, no integrated approach is offered in the literature to study how cognitive skills and personality traits complement each other. In this paper, we consider how cognitive skills and personality traits affect an entrepreneur’s decision to discover or create opportunities under uncertainty. Specifically, we examine the complementary role of personality traits and cognitive skills towards opportunity decisions. We provide a conceptual basis for a broader perspective on behaviors and cognitions that motivate or hinder entrepreneurial actions while at the same time positioning the entrepreneur’s decision at the core of the decision theory. Propositions regarding the application of some selected personality traits and cognitive skills and their complementarity are presented and discussed. </p> </div> </div> </div><br><p></p>

Sign in / Sign up

Export Citation Format

Share Document