Entrepreneurs, effectual logic and over-trust

Document type: Journal Articles
Article type: Original article
Peer reviewed: Yes
Full text:
Author(s): Sanjay Goel, Ranjan Karri
Title: Entrepreneurs, effectual logic and over-trust
Journal: Entrepreneurship Theory and Practice
Year: 2006
Volume: 30
Issue: 4
Pagination: 477-493
ISSN: 1042-2587
Publisher: Blackwell
Organization: Blekinge Institute of Technology
Department: School of Management (Sektionen för management)
School of Management S- 371 79 Karlskrona
+46 455 38 50 00
Authors e-mail: sgoel@d.umn.edu, rkarr2@uis.edu
Language: English
Abstract: This article complements extant literature on entrepreneurship and trust by proposing a model of over-trust (the tendency to trust more than what is warranted) using entrepreneurial characteristics and effectual logic. We trace how entrepreneurs following effectual processes may tend to over-trust. More formally, we propose that specific personality characteristics of the entrepreneur interact with effectual logic to make the entrepreneur more susceptible to over-trust. The proposed model is value neutral in that we do not imply that over-trust has negative consequences for entrepreneurs. In fact, it may be part of the overall risk that entrepreneurs assume in a new venture creation.
Subject: Business Administration\Organization