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Exploring antecedents of business angels’ intention to invest

Author

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  • Mateja Drnovšek

    (Faculty of Economics, University of Ljubljana, Academic unit for entrepreneurship, Kardeljeva pl. 17, Ljubljana, Slovenia)

  • Sanda Franiæ

    (Faculty of Economics, University of Ljubljana, Kardeljeva pl. 17, Ljubljana, Slovenia)

  • Alenka Slavec

    (University of Ljubljana, Academic unit for entrepreneurship, Kardeljeva pl. 17, Ljubljana, Slovenia. Scientific affiliation: psychology of entrepreneurs, financing in entrepreneurshi)

Abstract

In this research, we use regulatory focus theory to explore the cognitive mechanisms that contribute to the formation of business angels’ intention to invest. Although prior literature has argued that perceived desirability and perceived feasibility are the two main antecedents of the intentional behavior of entrepreneurs, little is known about the antecedents of the intentional behavior of business angels. We address this gap by linking the role of regulatory focus and entrepreneurial alertness to the formation of investment intentions. We begin by collecting qualitative data via semi-structured interviews with business angels to gain a broad perspective on business angels’ intentional behavior, their goals, planning activities and several characteristics related to cognition. We collected survey data from an international sample of business angels to find that entrepreneurial alertness with its scanning and search dimension plays an important role in intentionality. Furthermore, business angels that have promotion regulatory focus are more likely to form investment intentions.

Suggested Citation

  • Mateja Drnovšek & Sanda Franiæ & Alenka Slavec, 2018. "Exploring antecedents of business angels’ intention to invest," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(2), pages 701-734.
    • Handle: RePEc:rfe:zbefri:v:36:y:2018:i:2:p:701-734
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    References listed on IDEAS

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    Cited by:

    1. Jessica Birkholz, 2023. "Do not judge a business idea by its cover: The relation between topics in business ideas and incorporation probability," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1327-1358, August.
    2. Araujo, Clécio Falcão & Karami, Masoud & Tang, Jintong & Roldan, Lucas Bonacina & dos Santos, Julia Aita, 2023. "Entrepreneurial alertness: A meta-analysis and empirical review," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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    More about this item

    Keywords

    intention to invest; entrepreneurial alertness; regulatory focus; cognitive style; risk propensity;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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