SOCIAL NETWORKS, COGNITION AND RISK RECOGNITION IN NEW VENTURES: EVIDENCE FROM CHINA

Junping Yang and Jing Zhang ()
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Junping Yang: School of Economics and Management, Zhejiang Science and Technology University, Hangzhou, Zhejiang, China, 310018, China
Jing Zhang: Department of Management, Strome College of Business, Old Dominion University, 2038 Constant Hall, Norfolk, VA 23529, USA

Journal of Developmental Entrepreneurship (JDE), 2015, vol. 20, issue 02, 1-27

Abstract: Although risk has always been at the center of entrepreneurship, research on risk recognition in new ventures is limited. Applying cognitive information-processing theory, we develop a theoretical framework that explores the interactive influences of entrepreneurs' social networks and their cognitive characteristics on the outcomes of risk recognition. We test the framework on a sample of 226 Chinese entrepreneurs. The results show that network size, tie strength and structural holes enhance risk recognition outcomes and that cognition (i.e. risk propensity and illusion of control) generally reduces such effects, except in the case of illusion of control, which has no effect on structural holes.

Keywords: Risk recognition; social network; cognition; cognitive information-processing theory; China (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S1084946715500120

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