Phase Transitions and Bifurcation Points in the Initiation Dynamics of Venture Emergence: A Conceptual Framework

Based on isomorphic considerations, this paper attempts to establish an entrepreneur as complex adaptive system, which is one of the concepts that appear prominently in the field of complexity sciences. The attempt to equate the notion of an entrepreneur with the idea of a complex adaptive system, presupposes recognition of the entrepreneur’s role in adaptive agency. Along with this recognition, comes the convenience of contextualizing the concepts of phase transitions and bifurcation points in terms of venture emergence. The dynamics of these concepts are however more commonly explored within the workings of complex or dynamic physical systems. Yet, the broad applicability of the underlying ideas offers the possibility of identifying similar concepts in biological systems and by extension, the field of entrepreneurial cognition and behavior. Thus, the paper adopts an interdisciplinary approach and employs retroductive reasoning in the assemblage of relevant ideas, sought from diverse literary sources. The outcome is a conceptual framework, which presents certain propositions that offer implication for action.

International business opportunity recognition and development

PurposeUnderstanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.Design/methodology/approachWe draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.FindingsWe find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.Originality/valueConceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.

Positive Emotions and Entrepreneurial Intention: The Mediating Role of Entrepreneurial Cognition

Under the background of “mass entrepreneurship and innovation,” entrepreneurship and innovation for college students not only alleviates the current social employment pressure but also sets off the upsurge of their entrepreneurship. It is a significant field to research the entrepreneurial intention of undergraduates as potential entrepreneurs, which covers the study of entrepreneurial intention from the perspective of personal traits and entrepreneurial cognition. This article studies entrepreneurial intention from two aspects: irrational positive emotions and rational entrepreneurial cognition, which aims to reveal the mechanism of positive emotions and entrepreneurial cognition on entrepreneurial intention. After investigating 288 college students participating in entrepreneurial competitions, establishing structural equations, and using SmartPLS software for data analysis, the research result showed that positive emotions significantly positively impact the three scripts of entrepreneurial cognition: arrangement scripts, willing scripts, and ability scripts. The arrangement, willing, and ability scripts positively influence entrepreneurial intention, while positive emotions do not affect entrepreneurial intention. Arrangement scripts and ability scripts have a full mediating effect between positive emotions and entrepreneurial intention. Based on these findings, we provide suggestions for the government and society, schools, and individual students on innovation and entrepreneurship.

The Influence of Entrepreneurial Cognition on Business Model Innovation: A Hybrid Method Based on Multiple Regressions and Machine Learning

How to achieve business model innovation (BMI) has always been a focus topic in the field of entrepreneurship. Based on cognitive theory, this study takes new ventures as the research object to build a theoretical model to explore the impact of entrepreneurial cognition on BMI choice, its intermediary mechanism, and boundary conditions. We test our framework with a sample of 242 questionnaires; the empirical research results show that entrepreneurial configuration cognition, willing cognition, and ability cognition indirectly affect the BMI of new ventures. Strategic sensitivity (SSE) mediated the relationship between entrepreneurial cognition and BMI; knowledge diversity positively moderates the relationship between SSE and BMI. Machine learning algorithm research has found three prediction models for BMI of new ventures. By constructing a theoretical analysis framework of BMI from the perspective of cognition, the results deepen the relevant research on BMI of new ventures, clarify the source of unique characteristics and capabilities of entrepreneurs, provide a new research perspective for analyzing the impact mechanism of entrepreneurial cognition on BMI, enrich the research results in the field of “situation-cognition behavior,” and further clarify the important role of knowledge in the development of new ventures.

Entrepreneurial cognition and premature scaling of startups: a qualitative analysis of determinants of start-up failures

Purpose This study aims to explore the behavioral patterns of entrepreneurs, their cognitive styles and personality characteristics that can lead to a self-destructive chain of events during the transition from a fledgling business to one capable of long-term, profitable growth. This study adopts the self-regulation attitude theory to uncover the reasons for premature start-up scaling, which will help founders to study on their cognitive biases, emotions and behaviors and make efforts to do what does not come naturally to them. Design/methodology/approach The respondents for this qualitative study were selected from a group of entrepreneurs with extensive experience with technology start-ups that have either failed or succeeded during their development stages. In-depth semi-structured interviews were conducted with eight participants, who were selected through snowball sampling, on the theme of understanding “How do premature scaling mistakes happen?”. Thematic analysis was used to unearth common themes. Findings The results of this study identified the following themes, “comparison,” “emotional over-reaction,” “impatience,” “mistaken customer priorities,” “overestimation” and “overconfidence,” which eventually leads to premature scaling. The underlying decision-making heuristics of entrepreneurs can be identified as engulfed in different cognitive biases and emotions resulting in negative behavioral patterns, as in the case of premature scaling. Of the six themes, “comparison,” “mistaken customer priorities,” “overestimation” and “overconfidence relates to cognitive bias” and “emotional over-reaction” and “impatience” relate to emotional factors. Research limitations/implications The study was made possible with the support of the voluntary participants chosen by purposive and snowballing data sampling. The interviewee and interviewer biases could have also crept in as part of this qualitative approach. The study pertains only to start-ups in the information technology sector and further studies need to be done to generalize the results across industries as well. Practical implications This early-stage underestimation of unexpected obstacles in the entrepreneurship journey necessitates a focus on the entrepreneur too, as much as the concept. In these hectic and fast-paced circumstances, aspiring entrepreneurs must be taught how to deal objectively with themselves and others, as well as think strategically. Leaders who scale do so because they take purposeful measures to overcome their weaknesses through self-discipline, soliciting advice from others and using their right to change their attitude and points of view. Originality/value The study frames the new approach into the entrepreneurial literature, linking it to self-regulation attitude theory and adds to the nascent literature on neuroentrepreneurship which discuss entrepreneurial cognition, decision-making, and entrepreneurial behavior. This study attempted to explore the reasons behind the premature scaling of startups on an individual level. This study is pioneering in exploring the cognitive factors underlying an entrepreneur’s decision that results in premature scaling. This study provides insights for academicians, entrepreneurs and policymakers and helps understand the cognitive journey that leads to premature scaling.

Cognitive Control in Entrepreneurship: The Neuroscience of Producing Novel Action Despite Uncertainty

Research on entrepreneurial cognition and uncertainty has existed for decades, yet most empirical studies have not integrated methods or concepts from neuroscience. To address this, we provide a framework to unpack the micro-foundations of entrepreneurial cognition. Leveraging theories of cognitive control we show how novel actions are produced, and how the resulting uncertainty can be mediated by context, emotions, social cognition, and metacognition. In addition, by summarising where neuroscience methods have already been used and suggesting future research avenues, we aid further investigation into how entrepreneurial thinking can overcome uncertainty to drive innovation.

Positionality of refugee business support and hospitality building under cognitive dissonance theory: an enterprising route of refugee entrepreneurship

Purpose For the developed economies in Europe, to which refugees move, and as refugees’ enterprising expectations evolve, emerging cognitive factors have become closely intertwined with their post-arrival encounters. However, the link between refugees’ social cognition and entrepreneurship commitment tends to be overlooked. This paper aims to join the international debates regarding cognitions of refugee entrepreneurship and explain the bewildering effects of refugees’ social cognitive dissonance on refugee business support. Design/methodology/approach This paper reviews the extant knowledge of refugee entrepreneurship and refugee business support. It synthesizes the literature on cognitive dissonance, multiple embeddedness and hospitality to inform a conceptual model and explain the ramifications of refugees’ entrepreneurial cognition on refugee business support and how public attitudes in the destination transform accordingly. Findings This paper illustrates the prevalent imbalance between the provision of support and refugees’ anticipations in developed economies. A conceptual toolkit is framed to disclose the succeeding influence of cognitive dissonance on the performances of refugee business support. This framework indicates that the cognitive dissonance could elicit heterogeneous aftermath of refugee business support service, resulting in a deteriorated/ameliorated hospitality context. Originality/value This conceptual toolkit unfolds cognitive ingredients in the refugee entrepreneurship journey, providing a framework for understanding refugee business support and the formation of hospitality under cognitive dissonance. Practically, it is conducive to policymakers nurturing rational refugee anticipation, enacting inclusive business support and enhancing hospitality in the host country.