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Entrepreneurs’ start-up versus persistence decisions: A critical evaluation of expectancy and value

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Abstract
  • Research suggests that entrepreneurs tend to seek to maximize utility when considering whether to pursue a new venture opportunity. However, when choosing whether to persist with their current venture or not, utility maximization may not be of primary importance. Using a conjoint experiment, we examine the difference between policies in start-up decisions versus persistence decisions. The analysis of the decisions of 135 entrepreneurs indicates that the manner in which entrepreneurs use expectancy and value in persistence decision policies is significantly different than the way that they use expectancy and value in general opportunity pursuit decision policies. The results offer novel insights into the entrepreneurial decision-making process.
  • This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by Sage Publications and can be found at: http://isb.sagepub.com/.
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  • Holland, D. V., & Garrett, R. (2013). Entrepreneurs’ start-up versus persistence decisions: A critical evaluation of expectancy and value. International Small Business Journal. doi:10.1177/0266242613480375
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  • 33
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  • 2
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