IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v36y2012i1p69-96.html
   My bibliography  Save this article

Emotions and Opportunities: The Interplay of Opportunity Evaluation, Fear, Joy, and Anger as Antecedent of Entrepreneurial Exploitation

Author

Listed:
  • Isabell M. Welpe
  • Matthias Spörrle
  • Dietmar Grichnik
  • Theresa Michl
  • David B. Audretsch

Abstract

This research examines the interplay of opportunity evaluation and emotions as determinants of entrepreneurial exploitation using affect–as–information theory and the affective processing principle as conceptual bases. Three central assumptions are confirmed across two studies. The first is that the effects of opportunity characteristics on exploitation are mediated by evaluation. The second is that emotions influence exploitation decisions in addition to evaluation. Fear reduces exploitation, whereas joy and anger increase it. The third is that fear, joy, and anger influence evaluation's effect on exploitation with higher levels of fear reducing and higher levels of joy and anger increasing the positive impact of evaluation on exploitation.

Suggested Citation

  • Isabell M. Welpe & Matthias Spörrle & Dietmar Grichnik & Theresa Michl & David B. Audretsch, 2012. "Emotions and Opportunities: The Interplay of Opportunity Evaluation, Fear, Joy, and Anger as Antecedent of Entrepreneurial Exploitation," Entrepreneurship Theory and Practice, , vol. 36(1), pages 69-96, January.
  • Handle: RePEc:sae:entthe:v:36:y:2012:i:1:p:69-96
    DOI: 10.1111/j.1540-6520.2011.00481.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2011.00481.x
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dunne, Timothy & Roberts, Mark J & Samuelson, Larry, 1989. "Firm Entry and Postentry Performance in the U.S. Chemical Industries," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 233-271, October.
    2. Brundin, Ethel & Patzelt, Holger & Shepherd, Dean A., 2008. "Managers' emotional displays and employees' willingness to act entrepreneurially," Journal of Business Venturing, Elsevier, vol. 23(2), pages 221-243, March.
    3. Forlani, David & Mullins, John W., 2000. "Perceived risks and choices in entrepreneurs' new venture decisions," Journal of Business Venturing, Elsevier, vol. 15(4), pages 305-322, July.
    4. Anthony Endres & Christine Woods, 2006. "Modern Theories of Entrepreneurial Behavior: A Comparison and Appraisal," Small Business Economics, Springer, vol. 26(2), pages 189-202, March.
    5. Smilor, Raymond W., 1997. "Entrepreneurship: Reflections on a subversive activity," Journal of Business Venturing, Elsevier, vol. 12(5), pages 341-346, September.
    6. Dietmar Grichnik & Alexander Smeja & Isabell Welpe, 2010. "The Importance of Being Emotional: How do Emotions Affect Entrepreneurial Opportunity Evaluation and Exploitation?," Post-Print hal-00856603, HAL.
    7. Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1989. "Entrepreneurship and the initial size of firms," Journal of Business Venturing, Elsevier, vol. 4(5), pages 317-332, September.
    8. Palich, Leslie E. & Ray Bagby, D., 1995. "Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom," Journal of Business Venturing, Elsevier, vol. 10(6), pages 425-438, November.
    9. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Oxford University Press, vol. 30(2), pages 199-218, September.
    10. Mark Casson, 2005. "The Individual – Opportunity Nexus: A Review of Scott Shane: A General Theory of Entrepreneurship," Small Business Economics, Springer, vol. 24(5), pages 423-430, June.
    11. Carroll, Glenn R. & Mosakowski, Elaine M., 1987. "The Career Dynamics of Self-Employment," Institute for Research on Labor and Employment, Working Paper Series qt13p1n10b, Institute of Industrial Relations, UC Berkeley.
    12. Cardon, Melissa S. & Zietsma, Charlene & Saparito, Patrick & Matherne, Brett P. & Davis, Carolyn, 2005. "A tale of passion: New insights into entrepreneurship from a parenthood metaphor," Journal of Business Venturing, Elsevier, vol. 20(1), pages 23-45, January.
    13. Baron, Robert A., 2000. "Counterfactual thinking and venture formation: The potential effects of thinking about "what might have been"," Journal of Business Venturing, Elsevier, vol. 15(1), pages 79-91, January.
    14. Macmillan, Ian C. & Siegel, Robin & Narasimha, P. N. Subba, 1985. "Criteria used by venture capitalists to evaluate new venture proposals," Journal of Business Venturing, Elsevier, vol. 1(1), pages 119-128.
    15. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
    16. KruegerJR, Norris F. & Reilly, Michael D. & Carsrud, Alan L., 2000. "Competing models of entrepreneurial intentions," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 411-432.
    17. Brockner, Joel & Higgins, E. Tory & Low, Murray B., 2004. "Regulatory focus theory and the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 19(2), pages 203-220, March.
    18. Hean Tat Keh & Maw Der Foo & Boon Chong Lim, 2002. "Opportunity Evaluation under Risky Conditions: The Cognitive Processes of Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 27(2), pages 125-148, April.
    19. Lee, Lena & Wong, Poh Kam & Foo, Maw Der & Leung, Aegean, 2011. "Entrepreneurial intentions: The influence of organizational and individual factors," Journal of Business Venturing, Elsevier, vol. 26(1), pages 124-136, January.
    20. Dean A. Shepherd, 1999. "Venture Capitalists' Assessment of New Venture Survival," Management Science, INFORMS, vol. 45(5), pages 621-632, May.
    21. Matthias Spoerrle & Nicola Breugst & Isabell Welpe, 2009. "'That seems to be promising!' – Predicting opportunity evaluation by means of situational characteristics and individual cognitions," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 1(1), pages 41-56.
    22. Busenitz, Lowell W. & Barney, Jay B., 1997. "Differences between entrepreneurs and managers in large organizations: Biases and heuristics in strategic decision-making," Journal of Business Venturing, Elsevier, vol. 12(1), pages 9-30, January.
    23. Sarason, Yolanda & Dean, Tom & Dillard, Jesse F., 2006. "Entrepreneurship as the nexus of individual and opportunity: A structuration view," Journal of Business Venturing, Elsevier, vol. 21(3), pages 286-305, May.
    24. Yosem Companys & Jeffery McMullen, 2007. "Strategic Entrepreneurs at Work: The Nature, Discovery, and Exploitation of Entrepreneurial Opportunities," Small Business Economics, Springer, vol. 28(4), pages 301-322, April.
    25. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    26. Douglas, Evan J. & Shepherd, Dean A., 2000. "Entrepreneurship as a utility maximizing response," Journal of Business Venturing, Elsevier, vol. 15(3), pages 231-251, May.
    27. Sen Sendjaya & James C. Sarros & Joseph C. Santora, 2008. "Defining and Measuring Servant Leadership Behaviour in Organizations," Journal of Management Studies, Wiley Blackwell, vol. 45(2), pages 402-424, March.
    28. Phillip H. Phan & Poh Kam Wong & Clement K. Wang, 2002. "Antecedents To Entrepreneurship Among University Students In Singapore: Beliefs, Attitudes And Background," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 151-174.
    29. Shepherd, Dean A. & Wiklund, Johan & Haynie, J. Michael, 2009. "Moving forward: Balancing the financial and emotional costs of business failure," Journal of Business Venturing, Elsevier, vol. 24(2), pages 134-148, March.
    30. Baron, Robert A., 2004. "The cognitive perspective: a valuable tool for answering entrepreneurship's basic "why" questions," Journal of Business Venturing, Elsevier, vol. 19(2), pages 221-239, March.
    31. Grichnik, Dietmar & Smeja, Alexander & Welpe, Isabell, 2010. "The importance of being emotional: How do emotions affect entrepreneurial opportunity evaluation and exploitation?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 15-29, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maw–Der Foo & Marilyn A. Uy & Charles Murnieks, 2015. "Beyond Affective Valence: Untangling Valence and Activation Influences on Opportunity Identification," Entrepreneurship Theory and Practice, , vol. 39(2), pages 407-431, March.
    2. Andranik Tumasjan & Isabell Welpe & Matthias Spörrle, 2013. "Easy Now, Desirable Later: The Moderating Role of Temporal Distance in Opportunity Evaluation and Exploitation," Entrepreneurship Theory and Practice, , vol. 37(4), pages 859-888, July.
    3. Stroe, Silvia & Sirén, Charlotta & Shepherd, Dean & Wincent, Joakim, 2020. "The dualistic regulatory effect of passion on the relationship between fear of failure and negative affect: Insights from facial expression analysis," Journal of Business Venturing, Elsevier, vol. 35(4).
    4. Hernan E. Riquelme & Abdulaziz Alqallaf, 2020. "Anticipated emotions and their effects on risk and opportunity evaluations," Journal of International Entrepreneurship, Springer, vol. 18(3), pages 312-335, September.
    5. Boris Nikolaev & Christopher John Boudreaux & Matthew Wood, 2020. "Entrepreneurship and Subjective Well-Being: The Mediating Role of Psychological Functioning," Entrepreneurship Theory and Practice, , vol. 44(3), pages 557-586, May.
    6. Josh Wei-Jun Hsueh & Manuel Gomez-Solorzano, 2019. "Social Tie Heterogeneity and Firms’ Networking Strategy," Entrepreneurship Theory and Practice, , vol. 43(2), pages 352-359, March.
    7. Boris Nikolaev & Nadav Shir & Johan Wiklund, 2020. "Dispositional Positive and Negative Affect and Self-Employment Transitions: The Mediating Role of Job Satisfaction," Entrepreneurship Theory and Practice, , vol. 44(3), pages 451-474, May.
    8. Ratan J. S. Dheer & Tomasz Lenartowicz, 2018. "Multiculturalism and Entrepreneurial Intentions: Understanding the Mediating Role of Cognitions," Entrepreneurship Theory and Practice, , vol. 42(3), pages 426-466, May.
    9. Amanda J. Williamson & Martina Battisti & Michael Leatherbee & J. Jeffrey Gish, 2019. "Rest, Zest, and My Innovative Best: Sleep and Mood as Drivers of Entrepreneurs’ Innovative Behavior," Entrepreneurship Theory and Practice, , vol. 43(3), pages 582-610, May.
    10. Vivianna Fang He & Charlotta Sirén & Sheetal Singh & George Solomon & Georg von Krogh, 2018. "Keep Calm and Carry On: Emotion Regulation in Entrepreneurs’ Learning from Failure," Entrepreneurship Theory and Practice, , vol. 42(4), pages 605-630, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:36:y:2012:i:1:p:69-96. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.