The Egocentrism of Entrepreneurs: Bias in Comparative Judgments

Shin Jiseon () and Kim Sang Kyun ()
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Shin Jiseon: SKK Business School, Sungkyunkwan University, Organization & Human Resources, Seoul, Korea (Republic of)
Kim Sang Kyun: SKK Business School, Sungkyunkwan University, Organization & Human Resources, Seoul, Korea (Republic of)

Entrepreneurship Research Journal, 2019, vol. 9, issue 1, 11

Abstract: Research in entrepreneurship decision making assumes that entrepreneurs use a relatively distinct decision-making process when it comes to market entry. Building on a biased comparative-judgment-formation framework and egocentrism theory, this article theorizes a model of entrepreneurs’ egocentric market entry decisions. Specifically, we illustrate how entrepreneurs may be vulnerable to cognitive biases in the three stages of decision making: information acquisition, evaluation, and comparative judgment formation. This article contributes to understanding the high failure rate of new ventures by suggesting that egocentric and myopic decision-making processes on the part of entrepreneurs may impede rational decision making.

Keywords: entrepreneurs; egocentrism; decision making; comparative judgment (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1515/erj-2017-0100

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