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First published online May 1, 2009

Taken on Faith? The Impact of Uncertainty, Knowledge Relatedness, and Richness of Information on Entrepreneurial Opportunity Exploitation

Matthew S. Wood and J. Michael PearsonView all authors and affiliations
Volume 16, Issue 2
https://doi.org/10.1177/1548051809335358

Abstract

This article develops a theoretical model that suggests that differential levels of uncertainty, knowledge relatedness, and richness of information will have a substantial impact on the decision to engage in entrepreneurship. Effects of the individual differences fear of failure and general self-efficacy are also considered. Using a metric conjoint methodology, respondents are asked to evaluate a series of profiles with different levels of each attribute and then indicate their willingness to invest in an entrepreneurial opportunity. This approach allows for the calculation of main and interaction effects as well as the importance of each factor in the investment decision. Results indicated that all three factors and their interactions play a significant role in the decision to engage in entrepreneurial action. The degree of opportunity-related uncertainty was found to be the most important factor in the decision-making process.

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1. All reported mean values are estimated marginal means.

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Published In

Volume 16, Issue 2
Pages: 117 - 130
Article first published online: May 1, 2009
Issue published: November 2009

Keywords

  1. entrepreneurial opportunity
  2. opportunity exploitation
  3. cognition
  4. action

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Baker College.

Authors

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Matthew S. Wood
University of North Carolina Wilmington, [email protected]
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J. Michael Pearson
Southern Illinois University at Carbondale
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