Impact of Richness of Information on Entrepreneurship


Matthew S Wood, J Michãl Pearson. Journal of Leadership & Organizational Studies. Flint: Nov 2009. Vol. 16, Iss. 2; pg. 117

This article develops a theoretical model that suggests that differential levels of uncertainty, knowledge relatedness, and richness of information will have a substantial impact on the decision to engage in entrepreneurship. Effects of the individual differences fear of failure and general self-efficacy are also considered.

Using a metric conjoint methodology, respondents are asked to evaluate a series of profiles with different levels of each attribute and then indicate their willingness to invest in an entrepreneurial opportunity. This approach allows for the calculation of main and interaction effects as well as the importance of each factor in the investment decision. Results indicated that all three factors and their interactions play a significant role in the decision to engage in entrepreneurial action.

The degree of opportunity-related uncertainty was found to be the most important factor in the decision-making process.

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