SOCIAL NETWORKS, COGNITION AND RISK RECOGNITION IN NEW VENTURES: EVIDENCE FROM CHINA

2015 ◽  
Vol 20 (02) ◽  
pp. 1550012 ◽  
Author(s):  
JUNPING YANG ◽  
JING ZHANG
Keyword(s):  
Social Networks ◽  
New Ventures ◽  
Network Size ◽  
Illusion Of Control ◽  
Risk Propensity ◽  
Structural Holes ◽  
Risk Recognition ◽  
Processing Theory ◽  
Cognitive Information Processing ◽  
Cognitive Information

Although risk has always been at the center of entrepreneurship, research on risk recognition in new ventures is limited. Applying cognitive information-processing theory, we develop a theoretical framework that explores the interactive influences of entrepreneurs' social networks and their cognitive characteristics on the outcomes of risk recognition. We test the framework on a sample of 226 Chinese entrepreneurs. The results show that network size, tie strength and structural holes enhance risk recognition outcomes and that cognition (i.e. risk propensity and illusion of control) generally reduces such effects, except in the case of illusion of control, which has no effect on structural holes.

Entrepreneurial Passion, Cognitive Bias, and Technology Commercialization of New Ventures

2020 ◽  
pp. 148-163
Author(s):  
Biaoan Shan ◽  
Shuanghui Yan ◽  
Xifeng Lu ◽  
Datian Bi
Keyword(s):  
Cognitive Bias ◽  
Cognitive Theory ◽  
New Ventures ◽  
Theoretical Research ◽  
Illusion Of Control ◽  
Technology Commercialization ◽  
Risk Propensity ◽  
Mediating Role ◽  
Entrepreneurial Passion ◽  
The Relationship

This chapter utilizes cognitive theory to explain how entrepreneurial passion influences the speed of new venture's technology commercialization and explore the roles of cognitive bias (illusion of control and risk propensity) played in this process. The results show that both entrepreneurial passion and cognitive bias positively impact on the speed of technology commercialization. The authors also find that illusion of control and risk propensity play a partial mediating role in the relationship between entrepreneurial passion and the speed of technology commercialization. This conclusion can make up for the gap of existing theoretical research.

scholarly journals The Journey of Business Opportunity Evaluation: When and Why Does Opportunity Novelty Promote Vs. Inhibit Opportunity Adoption?

2021 ◽  
Vol 12 ◽  
Author(s):  
Lin Lin ◽  
Yanan Lin ◽  
Song Lin
Keyword(s):  
Information Processing ◽  
Business Environment ◽  
Future Research ◽  
Construal Level ◽  
Sustainable Competitive Advantage ◽  
Business Opportunity ◽  
Processing Theory ◽  
Cognitive Information Processing ◽  
Cognitive Information ◽  
Adoption Decisions

As a typical characteristic of entrepreneurial opportunities, novelty is essential for firms to establish and maintain a sustainable competitive advantage under the current complex and dynamic business environment. However, why is it that some entrepreneurs adopt novel opportunities but others do not. Little is known about the precise nature of cognitive evaluation for opportunity novelty. Drawing upon information processing theory and construal level theory (CLT), we propose that the effects of opportunity novelty on adoption decisions depend on entrepreneurs' construal level through which information is processed. We design an experiment and find partial support for our hypotheses. Results indicate that entrepreneurs using a low-level construal perceive more risk for opportunity novelty, which in turn decreases the possibility of opportunity adoption. Meanwhile, opportunity novelty also positively influences entrepreneurs' creativity perception, which in turn increases the possibility of opportunity adoption. But construal level does not play any role in this evaluation path. Taken together, the findings improve our understanding of “how entrepreneurs evaluate an opportunity based on its objective characteristics” by providing empirical insights into the cognitive information processing process from opportunity novelty to adoption. Additionally, we discuss implications for entrepreneurial practice and future research.

Cognitive information processing theory

2018 ◽  
pp. 61-77
Author(s):  
Debra S. Osborn ◽  
Casey Dozier ◽  
Gary W. Peterson ◽  
Emily Bullock-Yowell ◽  
Denise E. Saunders ◽  
...  
Keyword(s):  
Information Processing ◽  
Information Processing Theory ◽  
Processing Theory ◽  
Cognitive Information Processing ◽  
Cognitive Information

scholarly journals Developing Knowledge-Based Resources: The Role of Entrepreneurs’ Social Network Size and Trust

2018 ◽  
Vol 10 (10) ◽  
pp. 3380 ◽  
Author(s):  
Miaomiao Yin ◽  
Asghar Jahanshahi
Keyword(s):  
Social Networks ◽  
Social Network ◽  
New Ventures ◽  
Business Environment ◽  
Network Size ◽  
Knowledge Based ◽  
Social Network Size ◽  
The Relationship ◽  
Developing Knowledge

Entrepreneurs’ social networks play a crucial role in developing knowledge-based resources for their new ventures. Although most studies in an entrepreneurship context find that trust is very important when entrepreneurs develop social networks, limited research examines how trust can explain the variation in the relationship between an entrepreneur’s social networks and a firm’s knowledge-based resources. Therefore, the major objective of the paper is to understand the effects of the size of an entrepreneur’s social network on his or her firm’s knowledge-based resources with high and low levels of trust. Our data were collected from surveys administered to 476 entrepreneurs in China in 2018. Our multiple regression analysis indicates that social networks reinforce knowledge-based resources in a situation where entrepreneurs highly trust their major networks partners in their business environment (e.g., family, close friends, consultants, suppliers, peers, etc.). However, with a low level of trust, the relationship between social network and knowledge-based resources is curvilinear (inverse U-shaped). Our empirical validations showed that the relationship between social network and a firm’s knowledge-based resources is highly contingent to the level of trust among network members.

Sign in / Sign up

Export Citation Format

Share Document