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A Dual Mediation Model between Entrepreneurial Intention and Subsequent Actions: Loss Aversion and Affordable Loss

Author

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  • Liangxing He

    (Nanjing University of Finance & Economics
    Nanjing University of Finance & Economics
    Nankai University
    International (Macau) Institute of Academic Research)

  • Huihui Li

    (Nankai University
    Nankai University)

  • Yuli Zhang

    (Nankai University
    Nankai University)

Abstract

Current studies on the discrepancy between entrepreneurial intention and action have obtained some interesting findings. However, attention to the factors embedded in entrepreneurship uncertainty remains lacking. This study constructs a dual mediation model from the perspective of loss aversion and affordable loss and examines the roles of loss aversion and affordable loss in explaining the discrepancy with a survey data from 235 individuals. The results indicate that loss aversion and affordable loss mediate the effect of entrepreneurial intention on taking entrepreneurial action, and the mediating effect of affordable loss is stronger than that of loss aversion. Being faced with unknown outcomes of entrepreneurial activities, individuals’ loss aversion hinders them from taking entrepreneurial actions, whereas affordable loss can help them overcome the hindering effect and improve the translation from entrepreneurial intention to concrete actions. This study not only provides theoretical support for addressing the discrepancy between entrepreneurial intention and action but also offers some specific practical implications for actors to transform entrepreneurial intention into concrete actions.

Suggested Citation

  • Liangxing He & Huihui Li & Yuli Zhang, 2024. "A Dual Mediation Model between Entrepreneurial Intention and Subsequent Actions: Loss Aversion and Affordable Loss," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3122-3146, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01237-5
    DOI: 10.1007/s13132-023-01237-5
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    More about this item

    Keywords

    Entrepreneurial intention; Entrepreneurial action; Loss aversion; Affordable loss;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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