Identifying the Main Factors Transforming Entrepreneurial Perseverance into Escalation of Commitment
Journal Title: Journal of Science and today’s world - Year 2014, Vol 3, Issue 5
Abstract
Entrepreneurs face various problems and difficulties in different stages of their businesses and need to persevere in order to overcome them. Perseverance is influenced by various individual, organizational and environmental factors. By analyzing the literature on Entrepreneurial perseverance under reverse circumstances and after receiving initial negative feedbacks, the question arises; that to what extent could this perseverance goes. In other words, persistence on executing a decision or a strategy that according to initial feedbacks is doomed to fail is prone to be transformed into escalation of commitment, a very common decision making bias. Escalation of commitment has positive as well as negative effects on entrepreneurial enterprises. According to the previous research on this topic, psychological and individual factors are the main causes of entrepreneurial perseverance as well as escalation of commitment. The border between perseverance and escalation is so subtle and the question remains that what are the main factors turning perseverance into escalation of commitment among entrepreneurs? In order to answer this question, we conducted a vast quantitative study on 73 techno-entrepreneurs, which had shown perseverance in some phases of their enterprises. Given the uncertain and tumultuous environment of their activity, reverse circumstances are rife in the field of techno-entrepreneurship and therefore perseverance and escalation seems to be more common. According to our findings, which were acquired after conducting Friedman test, Spearman test and Regression analysis, individual factors like trying to avoid the loss of face among others, desire to justify one’s decision to oneself and the reluctance to make the decision making process all over again are the main factors transforming perseverance into escalation of commitment among entrepreneurs.
Authors and Affiliations
Jahangir Yadollahi Farsi, Pouria Nouri, Mahla zare
Keywords
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