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Utility maximization? An expectancy view of entrepreneurial persistence

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  • Daniel V. Holland

Abstract

Purpose - The purpose of this paper is to examine the use of expectancy and valence in the decision policies of entrepreneurs when choosing whether or not to persist with their current venture. Design/methodology/approach - Using a conjoint experiment design, 105 entrepreneurs made a series of decisions based on a common set of attributes. The decisions were analyzed using hierarchical linear modeling to determine how the attributes were weighed in the decision policies. Findings - The results indicate that entrepreneurs use expectancy and valences and interestingly, a negative interaction between expectancy and valences in their persistence decision policies. Practical implications - An understanding of how individuals make decisions may be of great value to entrepreneurs as they consider the decision to persist with a venture in the face of adversity. Originality/value - Previous research has focused on the decision to start a business. This study adds to the literature by considering the important decision of whether to persist with a business or not. The results provide interesting insights into why and how entrepreneurs choose to persist and contributes to the literature on expectancy theory.

Suggested Citation

  • Daniel V. Holland, 2011. "Utility maximization? An expectancy view of entrepreneurial persistence," Management Research Review, Emerald Group Publishing Limited, vol. 34(3), pages 337-352, March.
    • Handle: RePEc:eme:mrrpps:v:34:y:2011:i:3:p:337-352
    DOI: 10.1108/01409171111116349
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    Citations

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    Cited by:

    1. Virginia Barba-Sánchez & Carlos Atienza-Sahuquillo, 2017. "Entrepreneurial motivation and self-employment: evidence from expectancy theory," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1097-1115, December.
    2. Marco Caliendo & Maximilian Goethner & Martin Weißenberger, 2020. "Entrepreneurial persistence beyond survival: Measurement and determinants," Journal of Small Business Management, Taylor & Francis Journals, vol. 58(3), pages 617-647, May.
    3. Kim Klyver & Benson Honig & Paul Steffens, 2018. "Social support timing and persistence in nascent entrepreneurship: exploring when instrumental and emotional support is most effective," Small Business Economics, Springer, vol. 51(3), pages 709-734, October.
    4. Lin, Nidthida & Wilden, Ralf & Chirico, Francesco & Ghasrodashti, Elahe & DeTienne, Dawn R., 2022. "Persist or let it go: Do rational entrepreneurs make decisions rationally?," Journal of Business Venturing, Elsevier, vol. 37(4).

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