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Is more always better with respect to entrepreneurial self-efficacy? An experimental investigation

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  • Hayet Saadaoui

    (Higher Institute of Business Administration of Gafsa)

Abstract

This paper experimentally analyzes the effect of incidental emotions on destructive tendencies of the entrepreneurially self-efficacious. Subjects experience an emotion induction procedure that involves a visual stimulus triggering a negative or positive emotion. At this point, they participate in the joy-of-destruction mini-game in which two players simultaneously decide whether they have to reduce the other player’s payoff at their own cost. The results show that entrepreneurial self-efficacy could be related to more destructive behavior. Such behavior increases when individuals experience a positive emotional state. These results contribute to the growing literature on the potential downsides of high self-efficacy in entrepreneurial contexts and underscore the importance of considering the role of emotions in shaping economic decision-making.

Suggested Citation

  • Hayet Saadaoui, 2024. "Is more always better with respect to entrepreneurial self-efficacy? An experimental investigation," Journal of Business Economics, Springer, vol. 94(5), pages 1-26, July.
    • Handle: RePEc:spr:jbecon:v:94:y:2024:i:5:d:10.1007_s11573-023-01183-3
    DOI: 10.1007/s11573-023-01183-3
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    More about this item

    Keywords

    Entrepreneurial self-efficacy; Destruction; Emotions; Experiment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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