A Hubris Theory of Entrepreneurship

Hayward, Mathew, L. A., Shepherd, Dean A. and Griffin, Dale (2006) A Hubris Theory of Entrepreneurship. Management Science, 52 2: 160-172. doi:10.1287/mnsc.1050.0483

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Author Hayward, Mathew, L. A.
Shepherd, Dean A.
Griffin, Dale
Title A Hubris Theory of Entrepreneurship
Journal name Management Science   Check publisher's open access policy
ISSN 0025-1909
Publication date 2006-02-01
Sub-type Critical review of research, literature review, critical commentary
DOI 10.1287/mnsc.1050.0483
Open Access Status Not yet assessed
Volume 52
Issue 2
Start page 160
End page 172
Total pages 13
Place of publication Baltimore, MD
Publisher Institute for Operations Research and the Management Sciences
Language eng
Subject 15 Commerce, Management, Tourism and Services
Abstract This paper develops a hubris theory of entrepreneurship to explain why so many new ventures are created in the shadow of high venture failure rates: More confident actors are moved to start ventures, and then act on such confidence when deciding how to allocate resources in their ventures. Building on theory and evidence from the behavioral decision-making literature, we describe how founders' socially constructed confidence affects the manner in which they interpret information about their prior and current ventures. We then link founders' propensity to be overconfident to their decisions to allocate, use, and attain resources. In our model, founders with greater socially constructed confidence tend to deprive their ventures of resources and resourcefulness and, therefore, increase the likelihood that their ventures will fail. [PUBLICATION ABSTRACT]
Keyword confidence
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Critical review of research, literature review, critical commentary
Collections: Excellence in Research Australia (ERA) - Collection
UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 204 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 230 times in Scopus Article | Citations
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