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Increasing alertness to new opportunities: the influence of positive affect and implications for innovation

Author

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  • Ludvig Levasseur

    (Indian Institute of Management Bangalore, Entrepreneurship Area
    Institute for Development Strategies, O’Neill School of Public and Environmental Affairs, Indiana University)

  • Jintong Tang

    (Saint Louis University)

  • Masoud Karami

    (University of Otago
    Queenstown Resort College)

  • Lowell Busenitz

    (University of Oklahoma)

  • K. Michele Kacmar

    (Texas State University)

Abstract

Understanding how entrepreneurs’ positive affect influences firm innovation through the cognitive processes (e.g., entrepreneurial alertness to business opportunities) is important because emotions often impact evaluations and judgments of opportunities and (subsequent) firm engagement in innovative activities. Using data involving Iranian entrepreneurs, we find that (1) Tang, Kacmar, and Busenitz’s (2012) three alertness components unfold sequentially (i.e., information scanning and search leads to information association and connection which in turn leads to opportunity evaluation and judgment); (2) positive affect has a positive impact on all three alertness dimensions; and (3) evaluation and judgment impacts firm incremental innovation positively. Implications and future research directions are discussed.

Suggested Citation

  • Ludvig Levasseur & Jintong Tang & Masoud Karami & Lowell Busenitz & K. Michele Kacmar, 2022. "Increasing alertness to new opportunities: the influence of positive affect and implications for innovation," Asia Pacific Journal of Management, Springer, vol. 39(1), pages 27-49, March.
    • Handle: RePEc:kap:asiapa:v:39:y:2022:i:1:d:10.1007_s10490-020-09724-y
    DOI: 10.1007/s10490-020-09724-y
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