Reference point formation and new venture creation

Hack, Andreas; von Bieberstein, Frauke; Kraiczy, Nils Daniel (2016). Reference point formation and new venture creation. Small Business Economics, 46(3), pp. 447-465. Springer Science+Business Media 10.1007/s11187-015-9694-5

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In this study, we introduce reference point formation as an important antecedent of new venture creation. Based on considerations from prospect theory, we hypothesize that individuals who generally and consistently set more aspiring reference points have a higher intention to form a new venture. Testing our hypothesis with entrepreneurs and managers, results show that entrepreneurs indeed set more aspiring reference points. Therefore, they might find themselves more often in a perceived loss situation which in turn increases their risk-taking behavior, following the predictions of prospect theory. In testing entrepreneurial intention of business graduate students, results are shown to be robust. We discuss theoretical and managerial implications of the findings and develop avenues for future research.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Organization and Human Resource Management > Human Resource Management
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Organization and Human Resource Management > Organisation

UniBE Contributor:

Hack, Andreas; von Bieberstein, Frauke and Kraiczy, Nils Daniel

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics
600 Technology > 650 Management & public relations

ISSN:

0921-898X

Publisher:

Springer Science+Business Media

Language:

English

Submitter:

Claudia Probst

Date Deposited:

12 Jan 2017 14:23

Last Modified:

12 Jan 2017 14:23

Publisher DOI:

10.1007/s11187-015-9694-5

BORIS DOI:

10.7892/boris.91274

URI:

https://boris.unibe.ch/id/eprint/91274

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