This study examines how an entrepreneur’s psychological ownership (PO) impacts their decisionmaking orientation and a new venture’s growth. An entrepreneur’s PO is an important part of the entrepreneurial process (Cardon, et al., 2005). Over identification with their venture influences entrepreneur’s persistence on an emotional level that helps reduce grief due to business failure (DeTienne, Shepherd and De Castro, 2008; Shepherd, Wiklund, Haynie, 2009). Although the concept of PO is well known in organizational literature, there are few studies that empirically examine the impact of PO on the entrepreneurial process.
It is argued that PO influences an entrepreneur’s ability to make rational decisions (Hayward, Shepherd and Griffin, 2006). Researchers argue that entrepreneurs’ decision making is influenced by their over confidence (Hayward, Shepherd and Griffin, 2006) and reliance on cognitive biases such as heuristics (Busenitz and Barney, 1997). However, when entrepreneurs have final decision authority, the decision speed and comprehensiveness is found to be interrelated to the degree of trust within the top management team (Talaulicar, Grundei and Werder, 2005).
Yitshaki, Ronit; Wodnizki, Orly; and Kropp, Fredric
"ENTREPRENEURIAL SYMBIOSES: ENTREPRENEURS’ PSYCHOLOGICAL OWNERSHIP, DECISION MAKING AND GROWTH (INTERACTIVE PAPER),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 24.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss5/24