Impulsivity and entrepreneurial behaviour: Exploring an unreasoned pathway

Abstract

While entrepreneurial behaviour is generally seen to arise from a reasoned, judgement-then-action pathway, evidence of an alternative is emerging. Yet, this alternative – an unreasoned, impulse-driven pathway remains to be empirically explored. We develop a novel measure to capture this unreasoned pathway and test a mediation model explaining how multidimensional trait impulsivity impacts entrepreneurial behaviour via this pathway. Employing structural equation modelling with longitudinal survey data from owner-managers and several robustness tests, we find compelling support for our model. We demonstrate a lack of reasoning, exhibited through placing more salience on an entrepreneurial opportunity’s desirability than feasibility, as a critical pathway explaining how impulsivity encourages entrepreneurial behaviour and overcomes the inhibitory effects of uncertainty in entrepreneurial pursuits. These results advance a rapidly unfolding scholarly debate regarding whether all entrepreneurial behaviour ought to be ascribed a reasoned, intendedly rational role, the implications of which extend to theories of entrepreneurial behaviour and the inclusion of an unreasoned pathway within them.