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Entrepreneurs' emotional intelligence as a factor explaining entrepreneurial psychological ownership and high-tech start-up growth

Ronit Yitshaki (Department of Economics and Business Administration, Ariel University, Ariel, Israel)

Journal of Small Business and Enterprise Development

ISSN: 1462-6004

Article publication date: 29 April 2021

Issue publication date: 23 June 2021

595

Abstract

Purpose

The purpose of this study is to examine the role of emotional intelligence (EI) in explaining high-tech entrepreneurs' psychological ownership (PO) and, in turn, how their PO influences venture growth.

Design/methodology/approach

This study is based on data collected from 106 high-tech Israeli entrepreneurs.

Findings

The findings indicate that using emotions for problem-solving is positively associated with PO sense of efficacy, and that appraisal of emotions of others is negatively associated with PO sense of territoriality. Moreover, PO sense of efficacy is positively associated with growth, whereas sense of territoriality is negatively associated with growth. Finally, sense of territoriality has a curvilinear effect on venture growth.

Research limitations/implications

Understanding of the antecedents of entrepreneurs' PO and its influence on firms' growth is scant. The findings contribute to the psychology of entrepreneurship and PO literature by showing the influence of affective-based processes on high-tech start-up growth.

Practical implications

The findings of this study suggest the entrepreneurs' EI indirectly affects other affective behaviors such as PO, which in turn influence venture growth. It highlights the need of entrepreneur to regulate their emotions and manage the emotional- and cognitive-based processes for the sake of firms' growth.

Originality/value

The findings expand the knowledge pertaining to the psychology of entrepreneurship by showing how EI as an affective dimension is interrelated with affective-based process and entrepreneurial firms' growth.

Keywords

Acknowledgements

The author would like to thank Orly Wodnizki for her assistance in data collection. The author also would like to thank the three anonymous reviewers for their insightful comments.

Citation

Yitshaki, R. (2021), "Entrepreneurs' emotional intelligence as a factor explaining entrepreneurial psychological ownership and high-tech start-up growth", Journal of Small Business and Enterprise Development, Vol. 28 No. 4, pp. 489-514. https://doi.org/10.1108/JSBED-06-2019-0209

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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