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Ethical Judgment and Radical Business Changes: The Role of Entrepreneurial Perspicacity

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  • Massimiliano Pellegrini
  • Cristiano Ciappei

Abstract

This study examines the implications of practical reason for entrepreneurial activities. Our study is based on Thomas Aquinas’ interpretation of such virtue, with a particular focus on the partition of practical reason in potential parts such as synesis, or common sense, and gnome, or perspicacity. Since entrepreneurial acts and actions deal with extremely uncertain situations, we argue that only this perspicacity, as the ability of correctly judging in exceptional cases, has the power to find wisdom under such blurred conditions. Perspicacity frees entrepreneurs from their cognitive schemata rendering them able to be truly entrepreneurial. Based on this vision and thanks to a semantic analysis of the meaning of the Greek word gnome, we construct an interpretative model for entrepreneurial judgment composed of three dimensions, specifically, knowledge-cognitive, external-affective and personal-reflective. The model highlights how a ‘successful’ entrepreneurial judgment is also such from a holistic point of view. Copyright Springer Science+Business Media Dordrecht 2015

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  • Massimiliano Pellegrini & Cristiano Ciappei, 2015. "Ethical Judgment and Radical Business Changes: The Role of Entrepreneurial Perspicacity," Journal of Business Ethics, Springer, vol. 128(4), pages 769-788, June.
    • Handle: RePEc:kap:jbuset:v:128:y:2015:i:4:p:769-788
    DOI: 10.1007/s10551-013-1988-4
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    2. Alenka Slavec Gomezel & Rok Stritar, 2023. "Does it pay to be an ethical leader in entrepreneurship? An investigation of the relationships between entrepreneurs’ regulatory focus, ethical leadership, and small firm growth," Review of Managerial Science, Springer, vol. 17(1), pages 155-173, January.
    3. Claudius Bachmann & André Habisch & Claus Dierksmeier, 2018. "Practical Wisdom: Management’s No Longer Forgotten Virtue," Journal of Business Ethics, Springer, vol. 153(1), pages 147-165, November.
    4. Vallaster, Christine & Kraus, Sascha & Merigó Lindahl, José M. & Nielsen, Annika, 2019. "Ethics and entrepreneurship: A bibliometric study and literature review," Journal of Business Research, Elsevier, vol. 99(C), pages 226-237.
    5. Gianpaolo Abatecola, 2021. "Prioritizing Short-Termism in Behavioural Strategy: Lessons from Enron – 20 Years On," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(4), pages 1-60, July.
    6. Gianpaolo Abatecola & Matteo Cristofaro & Federico Giannetti & Johan Kask, 2022. "How can biases affect entrepreneurial decision making? toward a behavioral approach to unicorns," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 693-711, June.
    7. Mohammad Fakhar Manesh & Giulia Flamini & Damiano Petrolo & Rocco Palumbo, 2022. "A round of dancing and then one more: embedding intuition in the ballet of entrepreneurial decision making," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 499-528, June.
    8. Lamberto Zollo & Massimiliano Matteo Pellegrini & Cristiano Ciappei, 2017. "What Sparks Ethical Decision Making? The Interplay Between Moral Intuition and Moral Reasoning: Lessons from the Scholastic Doctrine," Journal of Business Ethics, Springer, vol. 145(4), pages 681-700, November.

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