Emotions and new venture judgment in China

Asia Pacific Journal of Management

Volumn 28, Issue 2, 2011, Pages 277-298

  Li, Yan ^a  

^a CITY UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

Anticipated emotion; Blends of emotion; China; Entrepreneurship; New venture creation; Opportunity discovery; Subjective probability; Subjective value

Indexed keywords

EID: 79955038382     PISSN: 02174561     EISSN: 15729958     Source Type: Journal    
DOI: 10.1007/s10490-009-9145-4     Document Type: Article

References (110)

1. Ashton-James, C. E., & Ashkanasy, N. M. 2008. Affective events theory: A strategic perspective. In W. J. Zerbe, C. E. J. Hartel & N. M. Ashkanasy (Eds.). Research on emotion in organizations, 4: Emotions, ethics, and decision-making: 1-34. Oxford: Elsevier.
2. Ahlstrom, D., Bruton, G., & Yeh, K. S. 2008. Private firms in China: Building legitimacy in an emerging economy. Journal of World Business, 43: 385-399.
3. Atkinson, J. W. 1957. Motivational determinants of risk-taking behavior. Psychological Review, 64: 359-372.
4. Averill, J. 1996. Intellectual emotions. In R. Harre & W. G. Parrot (Eds.). The emotions: Social, cultural and biological dimensions: 24-38. London: Sage.
5. Bandura, A., & Schunk, D. H. 1981. Cultivating competence, self-efficacy, and intrinsic interest through proximal self-motivation. Journal of Personality and Social Psychology, 41: 586-598.
6. Bagozzi, R. P., Dholakia, U. M., & Basuroy, S. 2003. How effortful decisions get enacted: The motivating role of decision processes, desires, and anticipated emotions. Journal of Behavior Decision Making, 16: 273-295.
7. Baron, R. A. 1999. Counterfactual thinking and venture formation: The potential effects of thinking about "what might have been". Journal of Business Venturing, 15: 79-91.
8. Baron, R. A. 2008. The role of affect in the entrepreneurial process. Academy of Management Review, 33: 328-340.
9. Baron, R. A., & Ensley, M. D. 2006. Opportunity recognition as the detection of meaningful patterns: Evidence from comparisons of novice and experienced entrepreneurs. Management Science, 52: 1331-1344.
10. Bell, D. 1982. Regret in decision making under uncertainty. Operations Research, 30: 961-981.
11. Bell, D. 1985. Disappointment in decision making under uncertainty. Operations Research, 33: 1-27.
12. Berry, J. W., Poortinga, Y. H., Segall, M. H., & Dasen, P. R. 2002. Cross-cultural psychology: Research and applications. Cambridge: Cambridge University Press.
13. Bonifield, C., & Cole, C. 2007. Affective responses to service failure: Anger, regret, and retaliatory versus conciliatory responses. Marketing Letters, 18: 85-99.
14. Bosma, N., & Harding, R. 2006. Global entrepreneurship monitor: Summary results. Wellesley: Babson College.
15. Bosman, R., & Winden, F. 2002. Emotional hazard in a power-to-take experiment. The Economic Journal, 112: 147-169.
16. Brandstatter, E., Kuhberger, A., & Schneider, F. 2002. A cognitive-emotional account of the shape of the probability weighting function. Journal of Behavior Decision Making, 15: 79-100.
17. Camille, N., Coricelli, G., Sallet, J., Pradat-Diehl, P., Duhamel, J., & Sirigul, A. 2004. The involvement of the orbitofrontal cortex in the experience of regret. Science, 304: 1167-1170.
18. Cardon, M., Zietsma, C., Saparito, P., Matherne, B., & Davis, C. 2005. A tale of passion: New insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing, 20: 23-45.
19. Carney 1998. A management capacity constraint? Obstacles to the development of the overseas Chinese family business. Asia Pacific Journal of Management, 15: 137-162.
20. Carter, N., Gartner, W., Shaver, K., & Gatewood, E. 2003. The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18: 13-39.
21. Carroll, J., & Russell, J. 1996. Do facial expressions signal specific emotions? Judging emotion from the face in context. Journal of Personality and Social Psychology, 70: 205-218.
22. Chen, X. Y., Rubin, H. K., Li, B. S., & Li, D. 1999. Adolescent outcomes of social functioning in Chinese children. International Journal of Behavior Development, 23: 199-223.
23. Christensen, C. M., & Raynor, M. E. 2003. The innovators solution: Creating and sustaining successful growth. Boston: Harvard Business School Press.
24. Chua, R., Ingram, P., & Morris, M. 2008. From the head and the heart: Locating cognition- and affect-based trust in managers' professional networks. Academy of Management Journal, 51: 436-452.
25. Clore, G. L., Gasper, K., & Garvin, E. 2001. Affect as information. In J. Forgas (Ed.). Affect and social cognition. New Jersey: LEA.
26. Cope, J. 2005. Toward a dynamic learning perspective of entrepreneurship. Entrepreneurship Theory and Practice, 29: 373-397.
27. Cropanzano, R., Weiss, H. M., Hale, J. M. S., & Reb, J. 2003. The structure of affect: Reconsidering the relationship between negative and positive affectivity. Journal of Management, 29: 831-857.
28. Currim, I. S., & Sarin, R. K. 1984. A comparative evaluation of multiattribute comsumer preference models. Management Science, 30: 543-561.
29. Damasio, A. R. 1994. Descartes' error: Emotion, reason, and the human brain. New York: Putnam.
30. Delmar, F., & Shane, S. 2004. Legitimating first: Organizing activities and the survival of new venture. Journal of Business Venturing, 19: 385-410.
31. Dimov, D. 2007. Beyond the single-person, single-insight attribution in understanding entrepreneurial opportunities. Entrepreneurship Theory and Practice, 31: 713-731.
32. Dunn, J., & Schweitzer, M. 2005. Feeling and believing: The influence of emotion on trust. Journal of Personality and Social Psychology, 88: 736-748.
33. Ekman, P., Sorenson, E. R., & Friesen, W. V. 1969. Pan-cultural elements in facial displays of emotion. Science, 164: 86-88.
34. Ellsworth, P. 1991. Some implications of cognitive appraisal theories of emotion. In K. T. Strongman (Ed.). International review of research on emotion: 143-161. New York: Wiley.
35. Finucane, M., Peters, E., & Slovic, P. 2003. Judgment and decision making: The dance and affect and reason. In S. Schneider & J. Shanteau (Eds.). Emerging perspectives on judgment and decision research: 327-365. New York: Cambridge University Press.
36. Fischhoff, B., Slovic, P., & Lichtensterin, S. 1978. Faulty trees: Sensitivity of estimated failure probabilities to problem representation. Journal of Experimental Psychology: Human Perception and Performance, 4: 330-334.
37. Forgas, J. P. 1991. Affect and social judgments: An introductory review. In J. P. Forgas (Ed.). Emotion and social judgments: 3-29. Oxford: Pergamon Press.
38. Fox, C. R. 1999. Strength of evidence, judged probability, and choice under uncertainty. Cognitive Psychology, 38: 167-189.
39. Frijda, N. H. 1986. The emotions. Cambridge: Cambridge University Press.
40. Gibb, A. 2002. In pursuit of a new "enterprise" and "entrepreneurship" paradigm for learning: Creative destruction, new values, new ways of doing things and new combinations of knowledge. International Journal of Management Reviews, 4: 233-269.
41. Gigerenzer, G., Hoffrage, U. H., & Kleinbolting, H. 1991. Probabilistic mental models: A Brunswikian theory of confidence. Psychological Review, 98: 506-528.
42. Goss, D. 2005. Schumpeter's legacy? Interaction and emotions in the sociology of entrepreneurship. Entrepreneurship Theory and Practice, 29: 205-218.
43. Harman, M. M. 1967. Modern factor analysis. Chicago: University of Chicago Press.
44. Harrison, R., & March, J. 1984. Decision making and postdecision surprise. Administrative Science Quarterly, 29: 26-42.
45. Isen, A. M., Nygren, T. E., & Ashby, F. G. 1988. Influence of positive affect on the subjective utility of gains and losses: It is just not worth the risk. Journal of Personality and Social Psychology, 55: 710-717.
46. Izard, C. E., & Ellis, C. 1971. The face of emotions. New York: Appleton-Century-Crofts.
47. James, W. 1884. What is an emotion?. Mind, 9: 188-205.
48. Kahneman, D., & Lovallo, D. 1993. Timid choices and bold forecasts: A cognitive perspective on risk taking. Management Science, 39: 17-31.
49. Kahneman, D., & Miller, D. T. 1986. Norm theory comparing reality to its alternatives. Psychological Review, 93: 136-153.
50. Kahneman, D., & Tversky, A. 1979. Prospect theory: An analysis of decisions under risk. Econometrica, 47: 263-291.
51. Kahneman, D., & Tversky, A. 1982. The simulation heuristic. In D. Kahneman, P. Slovic & A. Tversky (Eds.). Judgment under uncertainty: Heuristics and biases: 201-208. New York: Cambridge University Press.
52. Kahneman, D., Slovic, P., & Tversky, A. (Eds.) 1982. Judgment under uncertainty: Heuristics and biases. New York: Cambridge University Press.
53. Knight, F. 1921. Risk, uncertainty and profit. New York: Kelley.
54. Landman, J. 1987. Regret and elation following action and inaction: Affective responses to positive versus negative outcomes. Personality and Social Psychology Bulletin, 13: 524-536.
55. Landman, J. 1993. Regret: The persistence of the possible. New York: Oxford University Press.
56. Lazarus, R. S. 1991. Progress on a cognitive-motivational-relational theory of emotion. American Psychologist, 46: 819-834.
57. Lazarus, R. S. 2000. Toward better research on stress and coping. American Psychologist, 55: 665-673.
58. Lazarus, R. S., & Smith, C. 1988. Knowledge and appraisal in the cognition-emotion relationship. Cognition and Emotion, 2: 281-300.
59. Lerner, J. S., & Keltner, D. 2000. Beyond valence: Toward a model of emotion-specific influences on judgment and choice. Cognition and Emotion, 14: 473-493.
60. Li, Y. 2008a. Risk taking in the gain domain: A predictive decision model of new venture creation. Presented at the Academy of Management Annual Meeting, Anaheim, US, August.
61. Li, Y. 2008b. Emotional rationality on decision-making under uncertainty. Presented at the Academy of Management Annual Meeting, Anaheim, US, August.
62. Li, Y., & Ahlstrom, D. 2007. Decomposing the effects of positive affect negative affect and multilevel drama of emotion on organizational commitment. Presented at the Asia Academy of Management Annual Meeting, Philadelphia, US, August.
63. Loewenstein, G., & Lerner, J. S. 2003. The role of affect in decision making. In R. J. Davidson, K. R. Scherer & H. H. Goldsmith (Eds.). The handbook of affective science: 619-642. Oxford: Oxford University Press.
64. Loewenstein, G. F., Weber, E. U., Hsee, C. K., & Welch, E. S. 2001. Risk as feelings. Psychological Bulletin, 127: 267-286.
65. Loomes, G., & Sugden, R. 1982. Regret theory: An alternative theory of rational choice under uncertainty. Econometrics Journal, 92: 805-824.
66. Loomes, G., & Sugden, R. 1986. Disappointment and dynamic consistency in choice under uncertainty. Review of Economic Studies, 53: 271-282.
67. Luthje, C., & Franke, N. 2003. The "making" of an entrepreneur: Testing a model of entrepreneurial intent among engineering students at MIT. R& D Management, 33: 135-147.
68. Malatesta, C. Z., & Wilson, A. 1988. Emotion/cognition interaction in personality development: A discrete emotions, functionalist analysis. British Journal of Social Psychology, 27: 91-112.
69. Markman, G. D., Baron, R. A., & Balkin, D. B. 2005. Inventors and new venture formation: The effects of general self-efficacy and regretful thinking. Entrepreneurship Theory and Practice, 27: 149-165.
70. McClelland, D. C. 1951. Personality. New York: Sloane.
71. Medvec, V. H., Madey, S. F., & Gilovich, T. 1995. When less is more counterfactual thinking and satisfaction among Olympic medalists. Journal of Personality and Social Psychology, 69: 603-610.
72. Mellers, B. A., Schwartz, A., Ho, K., & Ritov, I. 1997. Decision affect theory: Emotional reactions to the outcomes of risky options. Psychological Science, 8: 426-429.
73. Moore, B. S., & Isen, A. M. 1990. Affect and social behavior. New York: Cambridge University Press.
74. Mullins, J. W., & Forlani, D. 2005. Missing the boat or sinking the boat: A study of new venture decision making. Journal of Business Venturing, 20: 47-69.
75. Murphy, K. R. 1982. Assessing the discriminant validity of regression models and subjectively weighted models of judgments. Multivariate Behavioral Research, 17: 359-370.
76. Parkinson, B., & Manstead, A. S. 1992. Appraisal as a cause of emotion. In M. S. Clark (Ed.). Review of personality and social psychology, 13: 122-149. Newbury Park: Sage.
77. Payne, J. W. 1982. Contingent decision behavior. Psychological Bulletin, 92: 382-402.
78. Peng, M. W. 2001. How entrepreneurs create wealth in transition economies. Academy of Management Executive, 15: 95-108.
79. Plutchik, R. 1980. Emotion: A psychoevolutionary synthesis. New York: Harper & Row.
80. Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. 2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88: 879-903.
81. Rauch, A., & Frese, M. 2000. Psychological approaches to entrepreneurial success. A general model and an overview of findings. In C. L. Cooper & I. T. Robertson (Eds.). International review of industrial and organizational psychology: 101-142. Chichester: Wiley.
82. Robinson, M. D., & Clore, G. L. 2002. Episodic and semantic knowledge in emotional self-report: Evidence for two judgment process. Journal of Personality and Social Psychology, 83: 198-215.
83. Roseman, I. J. 1984. Cognitive determinants of emotions: A structural theory. In P. Shaver (Ed.). Review of personality and social psychology, 5: 11-36. Berkeley: Sage.
84. Roseman, I. J., Antoniou, A. A., & Jose, P. E. 1996. Appraisal determinants of emotions: Constructing a more accurate and comprehensive theory. Cognition and Emotion, 10: 241-277.
85. Roseman, I. J., Wiest, C., & Swartz, T. S. 1994. Phenomenology, behaviors, and goals differentiate discrete emotions. Journal of Personality and Social Psychology, 67: 206-221.
86. Russell, J. A. 1980. A circumplex model of affect. Journal of Personality and Social Psychology, 39: 1161-1178.
87. Savage, L. 1954. The foundations of statistics. New York: Wiley.
88. Schank, R. C., & Abelson, R. P. 1995. Knowledge and memory: The real story. In R. Wyer (Ed.). Advances in cognition, 3: 1-87. Hillsdale: Erlbaum.
89. Scherer, K. R. 1988. Criteria for emotion-antecedent appraisal: A review. In V. Hamilton, G. H. Bower & N. H. Frijda (Eds.). Cognitive perspectives on emotion and motivation: 89-126. Dordrecht: Nijhoff.
90. Schumpeter, J. A. 1942. Socialism and democracy. New York: Harper.
91. Seo, M., & Barrett, L. 2007. Being emotional during decision-making-good or bad? An empirical investingation. Academy of Management Journal, 50: 923-940.
92. Shah, J., & Higgins, E. T. 1997. Expectancy value effects: Regulatory focus as determinant of magnitude and direction. Journal of Personality and Social Psychology, 73: 447-458.
93. Shane, S., & Venkataraman, S. 2000. The promise of entrepreneurship as a field of research. Academy of Management Review, 25: 217-226.
94. Sieck, W. R., Merkle, E. C., & Zandt, T. V. 2007. Option fixation: A cognitive contributor to overconfidence. Organizational Behavior and Human Decision Processes, 103: 68-83.
95. Simon, H. A. 1959. Theories of decision-making in economics and behavioral science. The American Economic Review, 49: 253-283.
96. Slovic, P., Finucane, M., Peters, E., & MacGregor, D. G. 2002. The affect heuristic. In T. Gilovich, D. Griffin & D. Kahneman (Eds.). Heuristics and biases: The psychology of intuitive judgment: 397-420. New York: Cambridge University Press.
97. Snyder, C., Ilardi, S., Cheavens, J., Michael, S., Yamhure, L., & Sympson, S. 2000. The role of hope in cognitive-behavior therapies. Cognitive Therapy and Research, 24: 747-762.
98. Svenson, O. 2003. Values, affect, and processes in human decision making: A differentiation and consolidation theory perspective. In S. L. Schneider & J. Shanteau (Eds.). Emerging perspectives on judgment and decision research: 287-326. Cambridge: Cambridge University Press.
99. Teigen, K. H., & Keren, G. 2003. Surprises: Low probabilities or high contrasts?. Cognition, 87: 55-71.
100. Thompson, J. G. 1988. The psychobiology of emotions. New York: Plenum.
101. Tomkins, S. S., & McCarter, R. 1964. What and where are the primary affects? Some evidence for a theory. Perceptual and Motor Skills, 18: 119-158.
102. Tulving, E. 1984. Precis of elements of episodic memory. Behavioral and Brain Sciences, 7: 223-268.
103. Tversky, A., & Koehler, D. J. 1994. Support theory: A nonextensional representation of subjective probability. Psychological Review, 101: 547-567.
104. Utsch, A., Rauch, A., Rothfuss, R., & Frese, M. 1999. Who becomes a small scale entrepreneur in a post-socialist environment: On the differences between entrepreneurs and managers in East Germany. Journal of Small Business Management, 37: 31-42.
105. Watson, D., Clark, L., & Tellegen, A. 1988. Development and validation of brief measures of positive and negative affect: The PANAS scales. Journal of Personality and Social Psychology, 54: 1063-1070.
106. Watson, J., & Everett, J. 1996. Do small businesses have high failure rates?. Journal of Small Business Management, 34: 45-62.
107. Wright, W. F., & Bower, G. H. 1992. Mood effects on subjective probability assessment. Organizational Behavior and Human Decision Processes, 52: 276-291.
108. Wyer, R. S., Adaval, R., & Colcombe, S. J. 2002. Narrative-based representations of social knowledge: Their construction and use in comprehension, memory, and judgment. Advances in Experimental Social Psychology, 34: 131-150.
109. Zajonc, R. B. 1980. Feeling and thinking: Preferences need no inferences. American Psychologist, 35: 151-175.
110. Zeelenberg, M., Beattie, J., Plight, J., & Vries, N. K. 1996. Consequences of regret aversion: Effects of expected feedback on risky decision making. Organizational Behavior and Human Decision Process, 65: 148-158.