The Impact Of Cognitive Style On Entrepreneurial Decision-making Logic

Under the background of “mass entrepreneurship,mass innovation”,entrepreneurial activities are becoming more and more active.however,failure rate of entrepreneurship has been high.Among them,entrepreneurial decision-making error is one of the most important reasons leading to entrepreneurial failure.Early scholars cannot break away from theoretical framework of traditional management and consider entrepreneurial decision-making process is a given special goal,focusing on finding the process to achieve it.However,Knight Uncertainty is a characteristic of entrepreneurial situation,the causal logic based on the above decision-making process can hardly guide and explain entrepreneurial decision-making behavior.Against this background,Professor Sarasvathy creatively put forward effectuation logic theory which is in line with the reality of entrepreneurship and can solve entrepreneurial practical problems.At present,the antecedents of entrepreneurial decision-making logic are insufficient discussed.Even though they focused on the influence of personal characteristics such as previous entrepreneurial experience on decision-making logic,they have drawn different conclusions.Based on this condition,this paper goes deep into the psychology of entrepreneurs and introduces cognitive style which describes the preference of personal processing information style into the influencing factors of entrepreneurial decision logic.Moreover,this paper tries to find the influence of comprehensive mechanism of cognitive style and environmental uncertainty on effectuation and causation.According to the data of entrepreneurial behavior investigation,this paper uses multiple linear regression method to carry on the empirical test.The results show that :(1)entrepreneurs with intuitive cognitive style tend to use means-oriented,affordable loss,partnership,and leverage contingency.(2)entrepreneurs with analytical cognitive style tend to apply goal-oriented,expected return,competitive analysis and avoid contingency.(3)when environmental uncertainty is high,intuitive entrepreneurs reduce the use of affordable loss and leverage contingency.However,the moderating effect of environmental uncertainty on intuitive cognitive style and means-oriented as well as partnership is not supported.(4)when environmental uncertainty is high,analytical entrepreneurs reduce the use of expected returns.However,the moderating effect of environmental uncertainty on analytic cognitive style and goal orientation,competition analysis as well as avoid contingency is not supported by datasets.On the one hand,this research enriches the contents of antecedents of effectuation and causation.Besides,this paper enriches the research on application of cognitive style in the field of entrepreneurship and also,it is a useful supplement to the research on decision logic in the context of Chinese entrepreneurship.On the other hand,this study is helpful for entrepreneurs to deeply understand the inherent law of entrepreneurial decisionmaking and to rationally understand their own cognitive style.Entrepreneurs should pay attention to the environmental uncertainty,then they could use decision logic more scientifically and effectively to improve the success rate of entrepreneurship,thus realize the high-quality development of social economy.