Phan et al. (2009) called for corporate entrepreneurship scholars to investigate the role of cognitive and organizational factors in a firm’s entrepreneurial actions. We use the social cognition arguments of Corbett and Hmieleski (2007) to demonstrate how corporate entrepreneurs think differently from independent entrepreneurs. Corbett and Hmieleski (2007) argue that cognition differences between these two groups are attributable to a difference in entrepreneurial context and the demands of different entrepreneurial roles that engage distinct role schemas. We investigate how corporate entrepreneurs and independent entrepreneurs make decisions regarding the pursuit of entrepreneurial opportunities.

We examine three factors in our approach to entrepreneurial assessment of new venture opportunities. First, we explore the probability of successful outcomes from the initiative. We also include product similarity and market familiarity of the new business to the existing business of the corporation or individual in order to examine if entrepreneurs prefer opportunities that are related to their current businesses. Independent of these three factors, we also experimentally manipulate slack resources.