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The Egocentrism of Entrepreneurs: Bias in Comparative Judgments

Author

Listed:
  • 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))

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.

Suggested Citation

  • Shin Jiseon & Kim Sang Kyun, 2019. "The Egocentrism of Entrepreneurs: Bias in Comparative Judgments," Entrepreneurship Research Journal, De Gruyter, vol. 9(1), pages 1-11, January.
    • Handle: RePEc:bpj:erjour:v:9:y:2019:i:1:p:11:n:3
    DOI: 10.1515/erj-2017-0100
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    References listed on IDEAS

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