Cognitive Biases, Risk Perception, and Individual's Decision to Start a New Venture

2018 ◽  
Vol 9 (3) ◽  
pp. 14-29 ◽  
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Risk Perception ◽  
Cognitive Biases ◽  
New Venture ◽  
Illusion Of Control ◽  
Mediating Role ◽  
Correlation And Regression Analysis ◽  
Reduce Risk ◽  
Relationship Of ◽  
The Relationship

The purpose of this article is to investigate the relationship of overconfidence and illusion of control towards the start of new venture, taking in consideration the mediating role of risk perception in the context of Tunisia. This article examines students' responses to surveys based on a teaching case titled “Optical Distortion, Inc.” The authors tested hypotheses by correlation and regression analysis. The results show that the perception towards risk associated with new venture plays an important role in decision-making. Moreover, they find that overconfidence and illusion of control reduce risk perception associated to the decision to start a venture. While overconfidence directly affects the decision to start a venture and indirectly through its effect on reducing the risk perception, illusion of control has neither a direct nor an indirect impact on that. These results partially confirm those of Simon show that the mediation exists but partially.

scholarly journals The Mediating Role of Risk Perception among Cognitive Biases towards Decision to Start a New Venture

2015 ◽  
Vol 54 ◽  
pp. 88-95
Author(s):  
Maheen Butt ◽  
Nadia Jamil ◽  
Rabia Nawaz
Keyword(s):  
Risk Perception ◽  
Risk Perceptions ◽  
Cognitive Biases ◽  
Negative Impact ◽  
New Venture ◽  
Illusion Of Control ◽  
Mediating Role ◽  
Overconfidence Bias ◽  
The Relationship

The Objective of the study is to investigate the relationship of overconfidence bias and illusion of control bias towards the start of new venture, with the mediating role of risk perception in context of Pakistan. To understand the relationship, this study developed and tested hypothesis by correlation and regression analysis. This study’s sample consisted of 170 students pursuing a Masters of Business Administration. The students’ responses to a survey based on a case study regarding a decision to start a venture were examined. This study found illusion of control and risk perceptions have significant effect on decision to start new venture. Conversely, overconfidence bias has insignificant relationship with decision to start new venture. The positive and negative impact of biases and perceiving low levels of risk suggest the importance of exploring the area of venture formation. As this study has incorporated two biases but many other biases should also be considered that effect human decision making process like self-efficacy, availability heuristics, law of small numbers and escalation of commitment.

The dimensional linkage between public service motivation and innovative behavior in public sector institutions; the mediating role of psychological empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Asim Rafique ◽  
Yumei Hou ◽  
Muhammad Adnan Zahid Chudhery ◽  
Nida Gull ◽  
Syed Jameel Ahmed
Keyword(s):  
Public Sector ◽  
Public Service ◽  
Psychological Empowerment ◽  
Public Service Motivation ◽  
Innovative Behavior ◽  
Content Type ◽  
Mediating Role ◽  
Relationship Of ◽  
The Relationship

PurposeInnovations are imperative for organizational growth and sustainability. This study focuses on the employees' innovative behavior, a source of organizational innovations, which has received substantial attention from the researchers. Based on the psychological empowerment theory, the study exposes the effect of the various dimensions of public service motivation (PSM) on employees' innovative behavior (IB) in public sector institutions especially in the context of developing countries such as Pakistan. Moreover, the study also investigates the mediating role of psychological empowerment (PSE) between the dimensions of PSM and IB.Design/methodology/approachThis study used the cross-sectional research design. By using random sampling, the adapted survey questionnaires were used to collect data from 346 faculty members of public sector universities located in provincial capitals of Pakistan. A partial least square–structural equation modeling (PLS-SEM) tool was used to assess the proposed hypotheses through SMART-PLS software.FindingsResults revealed that attraction to policymaking (APM), compassion (COM), self-sacrifice (SS) have a significant impact on employees' PSE and their innovative behavior, while the relationship of commitment to the public interest (CPI) with PSE and IB was found insignificant. Moreover, PSE partially mediated the relationship between PSM dimensions and employees' IB.Originality/valueThere was a scarcity of research on IB especially in public sector institutions such as academia. This study theoretically contributed to the literature by providing a refined picture in assessing the proposed relationship of the constructs. This is also one of the original studies that examine the relationship between the dimensions of PSM and IB.

Van rechtvaardigheid naar uitputting en bevlogenheid

2012 ◽  
Vol 25 (2) ◽  
Author(s):  
Peter Verboon ◽  
Klaas Schakel ◽  
Karen van Dam
Keyword(s):  
Organizational Justice ◽  
Affective Commitment ◽  
Positive Behavior ◽  
Mediating Role ◽  
Two Samples ◽  
Group Engagement ◽  
Relationship Of ◽  
The Relationship ◽  
Moderating Role

From justice to exhaustion and engagement. The role of affective commitment to the organization From justice to exhaustion and engagement. The role of affective commitment to the organization In two studies the relationship between perceived organizational justice and emotional exhaustion and engagement was studied. Especially, the role of affective commitment to the organization in this relationship was examined. According to the group engagement model of Tyler and Blader (2003), procedural justice will result in positive behavior and attitudes because it increases commitment to the organization, thus implying that affective commitment mediates the relationship of justice with exhaustion and engagement. Conversely, Glazer and Kruse (2008) argue that a strong commitment to the organization can mitigate the effect of stressors, like injustice perceptions, on exhaustion and engagement, implying a moderating effect of commitment. These models were tested in two samples with employees working in a police organization. Both studies supported the mediating role of commitment; no evidence was found for a moderating role of commitment. The implication of these outcomes and the limitations of the study are discussed.

scholarly journals A Proposed Framework Of Mediating Role Of Interpersonal Employee Conflict Between The Relationship Of Servant Leadership And Academicians OCB, Using PLS

2019 ◽  
Vol 8 (5C) ◽  
pp. 1369-1374
Keyword(s):  
Servant Leadership ◽  
Organizational Citizenship ◽  
Structure Equation ◽  
Equation Modeling ◽  
Mediating Role ◽  
Structure Equation Modeling ◽  
Relationship Of ◽  
The Relationship ◽  
New Framework

Interpersonal employee conflicts exist in every organization, which relates to Organizational citizenship behaviours of employees. This study investigates the mediating role of interpersonal employee conflict between the relationship of servant leadership approach and academicians OCB. Variance based structure equation modeling is implementes as smar PLS is used to investigate the reltionship. A new framework is proposed as Interpersonal employee conflict mediates the relationship between servant leadership and academicians OCB. It is recommened to reduce the interpersonal employee conflict as these hampers the relationship between servant leadership dimensios ad academicians OCB.

The Mediating Role of Passion in the Relationship of Exercise Motivational Regulations with Exercise Dependence Symptoms

2014 ◽  
Vol 12 (4) ◽  
pp. 406-419 ◽  
Author(s):  
Irini S. Parastatidou ◽  
Georgios Doganis ◽  
Yannis Theodorakis ◽  
Symeon P. Vlachopoulos
Keyword(s):  
Exercise Dependence ◽  
Mediating Role ◽  
Relationship Of ◽  
The Relationship

Incivility and Counterproductive Work Behavior

2020 ◽  
pp. 1-26
Author(s):  
Zahid Hameed ◽  
Ikram Ullah Khan ◽  
Muhammad Adnan Zahid Chudhery ◽  
Donghong Ding
Keyword(s):  
Emotional Regulation ◽  
Counterproductive Work Behavior ◽  
Workplace Incivility ◽  
Work Behavior ◽  
Moderation Effect ◽  
Work Related ◽  
Mediating Role ◽  
Relationship Of ◽  
The Relationship

This research aims to extend the literature on stress by exploring the relationship between incivility and employees' counterproductive work behavior (CWB). We investigate the mediating role of psychological distress (PD) to understand the relationship of family and workplace incivility with CWB. The study also evaluates the moderation effect of emotional regulation between incivility and PD. Analysis of three-wave lagged data (N=328), collected from bank employees in Pakistan, indicates that PD mediates the effect of family and workplace incivility on CWB and emotional regulation moderates the effect of family and workplace incivility on PD. Our findings highlight the fact that emotional regulation and PD are important mechanisms in the incivility–CWB relationship. The inclusion of these two constructs is a key to understanding the relationships among family incivility, workplace incivility, and work-related outcomes. The paper concludes with a discussion of theoretical and practical implications.

Sign in / Sign up

Export Citation Format

Share Document