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Beyond hubris: How highly confident entrepreneurs rebound to venture again

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  • Hayward, Mathew L.A.
  • Forster, William R.
  • Sarasvathy, Saras D.
  • Fredrickson, Barbara L.
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    Abstract

    This article outlines why highly confident entrepreneurs of focal ventures are better positioned to start and succeed with another venture; and therefore why overconfidence in one's capabilities functionally persists and pervades amongst entrepreneurs. By combining cognitive perspectives on confidence in decision making with Fredrickson's [Fredrickson, B.L. 1998. What good are positive emotions?. Review of General Psychology, 2, 300-319.; Fredrickson, B.L. 2001. The role of positive emotions in positive psychology: the broaden-and-build theory of positive emotions. American Psychologist, 56, 218-226.; Fredrickson, B.L. 2003. The value of positive emotions. American Scientist, 91: 330-335] 'broaden-and-build' theory of positive emotions, this paper elaborates the manner in which such entrepreneurs can develop emotional, cognitive, social and financial resilience that can be marshaled and mobilized for a subsequent venture.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 25 (2010)
    Issue (Month): 6 (November)
    Pages: 569-578

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    Handle: RePEc:eee:jbvent:v:25:y:2010:i:6:p:569-578

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    Web page: http://www.elsevier.com/locate/jbusvent

    Related research

    Keywords: Confidence Resilience Serial entrepreneurship;

    References

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    Cited by:
    1. Wood, Matthew S. & McKelvie, Alexander & Haynie, J. Michael, 2014. "Making it personal: Opportunity individuation and the shaping of opportunity beliefs," Journal of Business Venturing, Elsevier, vol. 29(2), pages 252-272.
    2. Parhankangas, Annaleena & Ehrlich, Michael, 2014. "How entrepreneurs seduce business angels: An impression management approach," Journal of Business Venturing, Elsevier, vol. 29(4), pages 543-564.
    3. Parker, Simon C., 2013. "Do serial entrepreneurs run successively better-performing businesses?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 652-666.
    4. Baron, Robert A. & Hmieleski, Keith M. & Henry, Rebecca A., 2012. "Entrepreneurs' dispositional positive affect: The potential benefits – and potential costs – of being “up”," Journal of Business Venturing, Elsevier, vol. 27(3), pages 310-324.
    5. Uy, Marilyn A. & Foo, Maw-Der & Song, Zhaoli, 2013. "Joint effects of prior start-up experience and coping strategies on entrepreneurs’ psychological well-being," Journal of Business Venturing, Elsevier, vol. 28(5), pages 583-597.
    6. Jenkins, Anna S. & Wiklund, Johan & Brundin, Ethel, 2014. "Individual responses to firm failure: Appraisals, grief, and the influence of prior failure experience," Journal of Business Venturing, Elsevier, vol. 29(1), pages 17-33.

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