Kirsi Snellman and Gabriella Cacciotti
The purpose of this chapter is to explore whether and how angel investors’ emotions unfold in the investment opportunity evaluation process as they interact with the social…
Abstract
Purpose
The purpose of this chapter is to explore whether and how angel investors’ emotions unfold in the investment opportunity evaluation process as they interact with the social environment. Complementing recent research that has emphasized the financial calculations, we add angel investors’ own emotional arousal to the list of tools that may help them to rate investment opportunities.
Design/Methodology/Approach
Drawing on semi-structured qualitative interviews, we develop a phenomenological analysis of the investment opportunity evaluation process at the level of angel investors’ lived experience.
Findings
Our findings indicate that when angel investors use their emotional arousal in evaluating investment criteria, they engage in a developmental process characterized by three elements: subjective validation, social validation, and investment decision.
Research Limitations/Implications
We illuminate how discrete emotions can complement rational considerations in the opportunity evaluation journey. Capturing the nature of emotion as action oriented, embodied, socially situated, and distributed, we embrace its adaptive socially situated dynamics.
Practical Implications
Taking a step toward better understanding of the soft aspects in the relationship development that leads to investments, we hope this study will help not only those entrepreneurs who need funding but also those policymakers who design new incentives that improve the flow of investment into promising new ventures.
Originality/Value
We demonstrate how angel investors’ emotions can complement their rational considerations in the investment opportunity evaluation process as they interact with the social environment. Identifying boundary values for the conditions that are necessary and sufficient to advance in the process, we have demonstrated how emotion can serve as a driving or restraining force not only during subjective validation but also during social validation.
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In the study of choice processes the classical model is Utility Theory — its characteristics and limitations are discussed. Several taxonomies of choice heuristics from the…
Abstract
In the study of choice processes the classical model is Utility Theory — its characteristics and limitations are discussed. Several taxonomies of choice heuristics from the literature are compared and information processing models are then analysed. The article concludes with suggestions for future research.
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A number of aspects of landing gear design are introduced in order to examine the design impact when providing a rough ground capability.
The study addresses the effect of product usage, satisfaction derived out of the same and the brand switching behaviour in several product categories while looking at the product…
Abstract
The study addresses the effect of product usage, satisfaction derived out of the same and the brand switching behaviour in several product categories while looking at the product involvement level in the Indian marketplace. A fair amount of work has been done in the area of customer satisfaction and loyalty and many customer satisfaction indexes are available in the market using different variables and characteristics. The study attempts to understand the brand switching behaviour of the customers and its relation not with just satisfaction derived out of the product but also connects to the usage pattern of the customers and product involvement. Five categories (vehicles, television, soap, hair oil, and ice cream), involving varying levels of involvement were chosen. Cluster analysis was used to understand the grouping of the characteristics across the categories and their effect on brand switching behaviour in correlation with satisfaction and involvement level. It was observed that product usage and related level of satisfaction fail to explain the brand switching behaviour. Product involvement was found to have moderate impact on readiness to switch. The study emphasises that marketers will have to keep a constant eye to understand the usage pattern associated with their products and the satisfaction derived out of it and also at how customers involve themselves with the product to lessen the brand switching behaviour among their customers.
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V.W. Mitchell and Pari Boustani
The idea that risk could be a motivating factor in consumers′choice of breakfast cereal seemed less than plausible on firstconsideration. However, reports an investigation of…
Abstract
The idea that risk could be a motivating factor in consumers′ choice of breakfast cereal seemed less than plausible on first consideration. However, reports an investigation of secondary sources, some focus groups and a survey of 180 shoppers which revealed that this initial reaction was unfounded and that risk appeared significant in affecting consumers′ purchasing behaviour. The most important risks were those of taste and nutritional value. The most important risk relievers were choosing a well‐known brand and obtaining free samples. The findings seem to support the high advertising spends characteristic of the market, but question the widespread use of celebrity endorsements.
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Whatever happened to retail trade area analysis? Some may recall that through the late 1950s and middle 1960s, location scholars seemed to be organising and expanding an…
Abstract
Whatever happened to retail trade area analysis? Some may recall that through the late 1950s and middle 1960s, location scholars seemed to be organising and expanding an interesting body of literature. However in the recent past, the central thrust of economic analysis seems to have stalled, with research dispersing in numerous directions.
Zuzana Bednarik and Maria I. Marshall
As many businesses faced economic disruption due to the Covid-19 pandemic and sought financial relief, existing bank relationships became critical to getting a loan. This study…
Abstract
Purpose
As many businesses faced economic disruption due to the Covid-19 pandemic and sought financial relief, existing bank relationships became critical to getting a loan. This study examines factors associated with the development of personal relationships of rural small businesses with community bank representatives.
Design/methodology/approach
We applied a mixed-method approach. We employed descriptive statistics, principal factor analysis and logistic regression for data analysis. We distributed an online survey to rural small businesses in five states in the United States. Key informant interviews with community bank representatives supplemented the survey results.
Findings
A business owner’s trust in a banker was positively associated with the establishment of a business–bank relationship. However, an analysis of individual trust’s components revealed that the nature of trust is complex, and a failure of one or more components may lead to decreased trustworthiness in a banker. Small businesses that preferred personal communication with a bank were more inclined to relationship banking.
Research limitations/implications
Due to the relatively small sample size and cross-sectional data, our results may not be conclusive but should be viewed as preliminary and as suggestions for future research. Bankers should be aware of the importance of trust for small business owners and of the actions that lead to increased trustworthiness.
Originality/value
The study extends the existing knowledge on the business–bank relationship by focusing mainly on social (instead of economic) factors associated with the establishment of the business–bank relationship in times of crisis and high uncertainty.
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Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships…
Abstract
Purpose
Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, the purpose of this study is to uniquely examine entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.
Design/methodology/approach
This study uses a cross-sectional sample of several thousand US small enterprises from the NFIB’s proprietary credit survey. The data set offers links between owners’ perceptions and financing behavior. Robust univariate analysis examines differences across gender ownership groups. Multivariate regression analyzes how gender, business environment and other factors determine the entrepreneurs’ financing relationships.
Findings
This study highlights how entrepreneurs affect their own financing outcomes. Findings suggest that switching lenders, seeking multiple relationships and other actions determine financing satisfaction. Growth intent, business performance and characteristics of the entrepreneur are among significant posited factors influencing perception and behavior of entrepreneurs in their financing relationships that drive business performance. Furthermore, equal ownership concentration firms appear to be similar to those primarily owned by men. This study indicates that researchers need to further delineate among entrepreneurs. The results of this study also have implications for policy-makers in their assessment of gender discrimination and government entrepreneurial financing initiatives.
Originality/value
Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, this study uniquely examines entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.