Failing and exiting in social and commercial entrepreneurship: The role of situated cognition



Muñoz, Pablo ORCID: 0000-0002-8843-5943, Cacciotti, Gabriella and Ucbasaran, Deniz
(2020) Failing and exiting in social and commercial entrepreneurship: The role of situated cognition. Journal of Business Venturing Insights, 14. e00196-e00196.

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Abstract

This paper explores the decision-making process social entrepreneurs go through when faced with a failing venture, in comparison to commercial entrepreneurs. Findings point towards the role of situated cognition. Using a ‘think-aloud’, scenario-based experiment and two assessments of cognitive effort, our research reveals a unique “person-in-situation” decision-making process in failing situations. The entrepreneurs’ sequences of cognitive activities and cognitive effort are distinctively influenced by the nature of the failing venture as they reach the decision to persist or exit, regardless of the entrepreneurs’ baseline motivations. This is counterintuitive against the predominance of explanations emphasizing the relevance of orientation and intentions to address social needs or maximize profit as well as the role of escalation of commitment in the termination/persistence decision.

Item Type: Article
Uncontrolled Keywords: Behavioral and Social Science, Clinical Research
Depositing User: Symplectic Admin
Date Deposited: 07 Sep 2020 15:52
Last Modified: 17 Mar 2024 09:42
DOI: 10.1016/j.jbvi.2020.e00196
Related URLs:
URI: https://livrepository.liverpool.ac.uk/id/eprint/3100294