Entrepreneurial actions under uncertainty: the role of psychological variables and decision logics

Abstract

Purpose

Entrepreneurial action under uncertainty has captured the interest of scholars and practitioners alike. However, this growing body of research has yet to connect entrepreneurial action with actual actions of entrepreneurs. We combine insights from effectuation theory and the psychology of entrepreneurship to investigate drivers of entrepreneurial actions involved in starting and running ventures, particularly optimism, self-efficacy and the use of causal and effectual logics.

Design/methodology/approach

The study employs a unique mixed-method approach combining a survey with experience sampling data. After measuring demographics, preference for effectual or causal logics and psychological variables, the 197 US entrepreneurs sampled entrepreneurs logged their daily actions in the form of asks during 60 consecutive days.

Findings

Results suggest that self-efficacy and causal logics are key drivers of entrepreneurial actions, while optimism serves as a deterrent. Interestingly, the impact of self-efficacy on actions is moderated by the entrepreneur’s experience level, measured both in years and past asking experience.

Originality/value

The potential of the ask as the basic mechanism for entrepreneurial actions is explored. Based on the findings, the authors offer new and fertile insights by linking psychological traits to entrepreneurial actions, causal and effectual logics and entrepreneurial expertise development.

Citation

Ratinho, T. and Sarasvathy, S.D. (2024), "Entrepreneurial actions under uncertainty: the role of psychological variables and decision logics", International Journal of Entrepreneurial Behavior & Research, Vol. 30 No. 10, pp. 2701-2730. https://doi.org/10.1108/IJEBR-12-2023-1316