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Switch or persevere? The effects of experience and metacognition on persistence decisions

Author

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  • Eric Shaunn Mattingly

    (Boise State University)

  • Trayan N. Kushev

    (California State Polytechnic University)

  • Manju K. Ahuja

    (University of Louisville)

  • Dalong Ma

    (Missouri Western State University)

Abstract

This paper extends the scholarly understanding of entrepreneurial persistence decisions by identifying individual-level constructs that moderate which decision criteria have the most influence on entrepreneurs’ persistence decisions. Prior research demonstrates that contextual factors, such as feedback through adversity and the attractiveness of opportunities in an entrepreneur’s environment, determine whether or not an entrepreneur will persist with their current venture. We contribute to this literature by theoretically proposing and empirically testing how individual differences in entrepreneurial experience, metacognitive experience, and metacognitive knowledge moderate which aspects of environmental information entrepreneurs pay the most attention to when deciding whether or not to persist. We test our proposed model using a conjoint experiment that allows for monitoring actual persistence decisions of 124 entrepreneurs. Results suggest that metacognitive knowledge influences persistence decisions primarily through altering the impact that probability of expected outcomes associated with potential alternatives has on entrepreneurs’ persistence decisions. Furthermore, the results provide evidence that more experienced entrepreneurs weigh financial returns and switching costs more heavily when making persistence decisions.

Suggested Citation

  • Eric Shaunn Mattingly & Trayan N. Kushev & Manju K. Ahuja & Dalong Ma, 2016. "Switch or persevere? The effects of experience and metacognition on persistence decisions," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1233-1263, December.
    • Handle: RePEc:spr:intemj:v:12:y:2016:i:4:d:10.1007_s11365-016-0391-x
    DOI: 10.1007/s11365-016-0391-x
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    Cited by:

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    3. Dheer, Ratan J.S. & Castrogiovanni, Gary J., 2023. "Cognitive adaptability’s impact on entrepreneurial intent: The mediating roles of entrepreneurial passion and efficacy," Journal of Business Research, Elsevier, vol. 160(C).
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    6. Ricardo Teruel‐Sánchez & Antonio Juan Briones‐Peñalver & Juan Andrés Bernal‐Conesa & Carmen de Nieves‐Nieto, 2021. "Influence of the entrepreneur's capacity in business performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2453-2467, July.
    7. Bob Bastian & Antonella Zucchella, 2022. "Entrepreneurial metacognition: a study on nascent entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1775-1805, December.
    8. Boss, Alan D. & Yan, Jiaju & Reger, Rhonda K., 2023. "Keep on keeping on: A psychological approach to entrepreneurial persistence," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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