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Identifying the main Individual Factors Influencing Entrepreneurial Decision making Biases: A Qualitative Content Analysis Approach

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  • Kambiz Talebi
  • Pouria Nouri
  • Abdolah Ahmadi Kafeshani

Abstract

Entrepreneurial decisions are one of the most important functions of entrepreneurs so as to manage their ventures on a daily basis. These decisions are not fully rational and because of various factors like cognitive and personal characteristics, environmental and firm-related issues, entrepreneurial decisions are prone to biases. Decision making biases has become a favorable research topic among entrepreneurial scholars. Decision making biases are responsible for lots of entrepreneurial successes as well as failures. Being the conjunction of entrepreneurship, management and psychology, there is some ambiguity regarding the main factors influencing the genesis of these biases among entrepreneurs. By reviewing the body of literature on factors affecting these biases, one comes to the conclusion that individual factors play the major role in this regard. Coming to the conclusion that there are some gaps regarding the nature of these individual factors, this paper conducted a qualitative content analysis approach by studying entrepreneurial narratives resulting from interviews with 20 entrepreneurs. According to our findings, self-efficacy, personal optimism and risk taking propensity are the main individual factors influencing the genesis of entrepreneurial decision making biases.

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  • Kambiz Talebi & Pouria Nouri & Abdolah Ahmadi Kafeshani, 2014. "Identifying the main Individual Factors Influencing Entrepreneurial Decision making Biases: A Qualitative Content Analysis Approach," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 1-11, August.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:8:p:1-11
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    1. Kambiz Talebi & Pouria Nouri & Abdolah Ahmadi Kafeshani, 2014. "What Factors Contribute to Entrepreneurs’ Decision Making Biases? A Comprehensive Study," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 4(2), pages 59-68.

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