Entrepreneurs, Effectual Logic, and Over–Trust

Sanjay Goel and Ranjan Karri

Entrepreneurship Theory and Practice, 2006, vol. 30, issue 4, 477-493

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.

Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:30:y:2006:i:4:p:477-493

DOI: 10.1111/j.1540-6520.2006.00131.x

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