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How can biases affect entrepreneurial decision making? toward a behavioral approach to unicorns

Author

Listed:
  • Gianpaolo Abatecola

    (Tor Vergata University of Rome)

  • Matteo Cristofaro

    (Tor Vergata University of Rome)

  • Federico Giannetti

    (Tor Vergata University of Rome)

  • Johan Kask

    (Örebro University School of Business, INTERORG Marketing Research Center)

Abstract

How can cognitive biases affect the birth and evolution of entrepreneurial ventures? In Entrepreneurial Decision Making (EDM), this lively research question remains largely unaddressed when the world of Unicorns, as a per se entrepreneurial species, is considered. Thus, through this conceptual article, we aim to contribute toward knowledge creation in this context. We start by proposing a conceptual framework of Unicorns’ EDM based on a behavioral approach. Through three propositions, this novel framework advances how the birth, transition, and consolidation of a Unicorn may be explained by the sequentially intertwined occurrence of biases, from which establishment and legitimization eventually emerge. We complement the framework with examples from the social media industry and then discuss its main implications for theory and practice.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:intemj:v:18:y:2022:i:2:d:10.1007_s11365-021-00772-4
    DOI: 10.1007/s11365-021-00772-4
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    3. José Manuel Saiz-Alvarez, 2022. "Network Data Maps on Entrepreneurial Intention, Unicorns, and Human Flourishing on the SCOPUS Database: A Visual Analysis Using VOSviewer," World, MDPI, vol. 3(4), pages 1-19, October.
    4. Gu, Wentao, 2023. "Impact of Managers’ overconfidence upon listed Firms’ entrepreneurial behavior in an emerging market," Journal of Business Research, Elsevier, vol. 155(PB).
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