Affective states and ecological rationality in entrepreneurial decision making

Abstract

Purpose

The purpose of this paper is to explore the impact of affective appraisal dimensions on the use of two ecologically rational, social heuristics: imitate the majority (IMH) and imitate the best (IBH) during an entrepreneurial strategic decision-making process (ESDM).

Design/methodology/approach

The authors test the hypotheses in a controlled field experiment, on a final sample of 98 entrepreneurs.

Findings

The study shows that entrepreneurs experiencing affect described by certainty appraisal display a preference for relying on IMH, but not on IBH. Moreover, entrepreneurs who experience unpleasant affect tend to rely more on IMH, rather than IBH. The reverse is true for the entrepreneurs who experience positive affect. Finally, the use of IMH is most likely under unpleasant and certain affect, while the use of IBH is most likely under pleasant and certain affect.

Originality/value

The main contribution of this study is that it provides initial support for the impact of affective appraisal dimensions on the use of ecologically rational heuristics (i.e. heuristics that save important resources, but bring beneficial results) during an ESDM process.

Citation

Fodor, O.C., Curşeu, P.L. and Fleştea, A.M. (2016), "Affective states and ecological rationality in entrepreneurial decision making", Journal of Managerial Psychology, Vol. 31 No. 7, pp. 1182-1197. https://doi.org/10.1108/JMP-07-2015-0275