Unbreakable: A beliefs-based theory of rule-breaking in the entrepreneurial context

ABSTRACT Academic research largely supports the popular notion that successful entrepreneurs are rule-breakers; that is, individuals who do not follow society's rules and often create their own. However, despite an abundance of research on “rule-breakers”, little is known about the nature of rule-breaking in the entrepreneurial context. What, for example, is rule-breaking in the entrepreneurial context, what causes it, and how does it benefit entrepreneurs? Drawing heavily from theories in cognitive and moral psychology, we develop a conceptual model of rule-breaking in the entrepreneurial context that centres around a novel psychological cognitive construct that we term constructive rule beliefs. We argue that individuals high in constructive rule beliefs are more open than those low in constructive rule beliefs to breaking rules in the presence of various contextual rule-breaking triggers. We also argue that rule-breaking can benefit entrepreneurs and suggest that entrepreneurs with a paradox mindset (i.e., the tendency to accept and embrace competing demands) will reliably benefit from rule-breaking. We discuss the necessity for rule-breaking in the entrepreneurial context and outline several implications of our model for entrepreneurs and policymakers.