Research on Policy Environment, Entrepreneurial Altertness, and Innovative Entrepreneurial Decision-Making
1. Management Department, China Women’s University, Beijing 100101, China
2. Human Resources Department, China Logistics Co., Ltd, Beijing 100073, China
| Abstract: | The ability to make innovative entrepreneurial decisions in entrepreneurship is crucial for firms to participate in the highly competitive market. Whether the government policy environment influences innovation and entrepreneurship decisions and what the mechanism is remains to be explored. Based on the theory of entrepreneurial cognition, a moderated mediation model is constructed and the mechanism of this influence is explored. The results show that the policy environment can trigger innovative entrepreneurship decisions, and further results show that both protective and promotional policy environments significantly promote the use and exploration of innovative entrepreneurship decisions. The mediating effect of entrepreneurial alertness is significant, i.e., the policy environment triggers entrepreneurial alertness that promotes innovative entrepreneurial decisions. Positive personality positively moderates exploitative innovative entrepreneurial decisions and does not significantly moderate exploratory innovative entrepreneurial decisions. Positive personality reinforces the indirect effect of policy perceptions on innovative entrepreneurial decisions by enhancing the role of entrepreneurial alertness on innovative entrepreneurial decisions. The managerial insights and policy implications include: first, promoting entrepreneurial alertness through resource-based and patent-protection policies to increase the likelihood of entrepreneurs making exploratory and exploitative innovative entrepreneurial decisions; second, diversification to enhance entrepreneurial alertness and to exercise entrepreneurs' sensitivity to cognitive information in an externally diverse, inclusive, and highly dynamic environment; and finally, shaping entrepreneurs' positive personalities to facilitate their exploratory and exploitative innovative entrepreneurial decisions. |
| Keywords: | Policy Environment; Entrepreneurship Awareness; Innovative Entrepreneurial Decision-Making; Positive Personality |
| DOI: | 10.57237/j.wjeb.2024.01.003 |
View:
Downloads:
Received: 23 February 2024
Accepted: 18 April 2024
Published Online: 24 April 2024
References
| [1] | Chen, D. L., and XinRui Mao. (2021). The relationship between entrepreneurial alertness, resource patchwork and entrepreneurial firm performance, East China Economic Management, 35(7): 46-55. |
| [2] | Gu Chen, Wang Yingjun, Cui Lianguang, Yu Jun. (2019). Influence mechanism of entrepreneurial institutional environment on entrepreneurial decision-making. Research in Science, 37(4): 711-720. |
| [3] | Aghion, P., P. Howitt. (1992). A model of growth through creative destruction. Econometrica, 60(2): 323-351. |
| [4] | Baron, R. A. (2006). Opportunity recognition as pattern recognition: how entrepreneurs” connect the dots” to identify new business opportunities. Academy of Management Perspective, 20(1): 104-119. |
| [5] | Baron R. A. (2004). The cognitive perspective: a valuable tool for answering entrepreneurship’s basic ’why’ questions. Journal of Business Venturing, 19(2): 221-239. |
| [6] | Barrick, M. R., Mount, M. K., Li, N. (2013). The theory of purposeful work behavior: the role of personality, higher-order goals and job characteristics. Academy Management Review, 38: 132-153. |
| [7] | Bateman, T. S, Crant, J. M. (1993). The proactive component of organizational behavior: a measure and correlates. Journal of Organizational Behavior, 14(2): 103-118. |
| [8] | Boris Urban. Corporate entrepreneurship in South Africa: the role of organizational factors and entrepreneurial alertness in advancing innovativeness [J]. Journal of Developmental Entrepreneurship. 2017, 22(3): 1-20. |
| [9] | Chavoushi, Z. H., Zali, M. R., Valliere, D., Faghih, N., Hejazi, R., & Dehkordi, A. M. (2020). Entrepreneurial alertness: a systematic literature view. Journal of Small Business & Entrepreneurship. |
| [10] | Delle, E., Amadu, I. M. (2015). Proactive personality and entrepreneurial intention: employment status and student level as moderators. International Journal of Small Business and Entrepreneurship Research, 3(4): 1–13. |
| [11] | Dragoni, L, Oh, I., Vankatwyk, P. Tesluk, P. E. (2011). Developing executive leaders: the relative contribution of cognitive ability, personality, and the accumulation of work experience in predicting strategic thinking competency. Pers. Psychol, 64: 829-864. |
| [12] | Foo, M. D. (2011). Emotions and entrepreneurial opportunity evaluation. Entrepreneurship Theory and Practice, 35: 375–393. |
| [13] | Forgas, J. P. (1995). Mood and judgment: the affect infusion model (AIM). Psychological Bulletin, 117, 39–66. |
| [14] | Funder, D. C. (2001). Personality. Annu. Rev. Psychol, 52: 197-221. |
| [15] | Harry P Bowen, Dirk De Clercq. (2008). Institutional Context and the Allocation of Entrepreneurial Effort. Journal of International Business Studies, 39: 747-767. |
| [16] | Hu, R., Ye, Y. (2017). Do entrepreneurial alertness and self-efficacy predict Chinese sports major students’ entrepreneurial intention?. Social Behavior and Personality, 4(7): 1187–1196. |
| [17] | Jansen, J. J. P, Van den Bosch, F. A. J, Volberda, H. W. (2006). Exploratory innovation, exploitative innovation, and performance: effects of organizational antecedents and environmental moderators. Manag. Sci, 52: 1661-1674. |
| [18] | K. D. Winnaar, F. Scholtz. (2020). Entrepreneurial decision-making: new conceptual perspectives. Management Decision, 58(7): 1283-1300. |
| [19] | Kirzner, I. M. (1979). Perception, opportunity, and profit. Chicago: University of Chicago Press. |
| [20] | Kirzner, I. M. (2009). The alert and creative entrepreneur: a clarification. Small Business Economics, 32(2): 145-152. |
| [21] | Kostopoulos, K. C.; Bozionelos, N. (2011). Team Exploratory and Exploitative Learning: Psychological Safety, Task Conflict, and Team Performance. Group Organ. Manag, 36: 385-415. |
| [22] | Lerner, J. S., Li, Y., Valdesolo, P. and Kassam, K. S.. (2015). Emotion and decision making. Annual Review of Psychology, 66(1): 799-823. |
| [23] | Manolova, T. S, Eunni, R. V., Gyoshev, B. S. (2008). Institutional environments for entrepreneurship: evidence from emerging economics in eastern Europe. Entrepreneurship Theory&Practice, 3(1): 203-218. |
| [24] | Martin Obschonka; Kai Hakkarainen; Kirsti Lonka; Katariina Salmela-Aro. Entrepreneurship as a twenty-first century skill: entrepreneurial alertness and intention in the transition to adulthood [J]. Small Business Economics. 2017, 48(3): 487-501. |
| [25] | McCaffrey, M. (2014). On the theory of entrepreneurial incentives and alertness. Entrepreneurship Theory and Practice, 38(8), 891–911. |
| [26] | Mom, T. J. M.; van den Bosch, F. A. J.; Volberda, H. W. (2009). Understanding variation in managers’ ambidexterity: Investigating direct and interaction effects of formal structural and personal coordination mechanisms. Organ. Sci, 20: 812-828. |
| [27] | Perez-Luno A, Wiklund J, Cabrera R. V. (2011). The dual nature of innovative activity: how entrepreneurial orientation influnces innovation generation and adoption. Journal of Business Venturing, 26(5): 555-571. |
| [28] | Phillip, T. R, David, A. H. (2017). Entrepreneurial alertness as pathway to strategic decisions and organizational performance. Strategic Organization, 2: 1-35. |
| [29] | Roundy, P. T., Harrison, D. A., Khavul, S., Pérez-Nordtvedt, L., & Mcgee, J. E. (2018). Entrepreneurial alertness as a pathway to strategic decisions and organizational performance. Strategic Organization, 16(2), 192-226. |
| [30] | Schumpeter, J. (1942). Capitalism, socialism and democracy. New York: Harper. |
| [31] | Seibert, S. E, Crant, J. M., Kraimer, M. L. (1999). Proactive Personality and Career Success. Journal of Applied Psychology, 84(3): 416-427. |
| [32] | Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1): 217-226. |
| [33] | Short, J. C., Ketchen, D. J., Jr., Shook, C. L., & Ireland, R. D. (2010). The concept of “opportunity” in entrepreneurship research: past accomplishments and future challenges. Journal of Management, 36(1): 40-65. |
| [34] | Tang, J., Kacmar, K. M., & Busenitz, L. (2011). Entrepreneurial alertness in the pursuit of new opportunities. Journal of Business Venturing, 27(1), 77–94. |
| [35] | Valliere, D. (2013). Toward a schematic theory of entrepreneurial alertness. Journal of Business Venturing, 28(3), 430–42. |
| [36] | Watson, D., Clark, L. A., Tellegen, A. (1998). Development and validation of brief measures of positive and negative affect: the PANAS scales. Journal of Personality and Social Psychology, 54: 1063–1070. |
| [37] | Zhao, H, Seivert S, E, (2006). The big five personality dimensions and entrepreneurial status: a meta-analytical review. J. Appl. Psychol, 91: 259-271. |
| [38] | Zimmerman M A, Zeitz G J. (2002). Beyond Survival: Achieving New Venture Growth by Building Legitimacy. Academy of Management Review, 27(3): 414-431. |
| [39] | Zimmermann, H. J. (2011). Fuzzy set theory-and its applications. Springer Science & Business Media, Heidelberg, DE. |
Join the Editorial Board
We invite active, qualified and high profile scientists and researchers to join as Editorial Board Members.
Join UsBecome a Reviewer
Scholars with a strong interest in reviewing are invited to join the reviewer panel to ensure the quality of the research to be published.
Join Us