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The Egocentrism of Entrepreneurs: Bias in Comparative Judgments

  • Jiseon Shin ORCID logo and Sang Kyun Kim ORCID logo EMAIL logo
Published/Copyright: November 15, 2017

Abstract

Research in entrepreneurship decision making assumes that entrepreneurs use a relatively distinct decision-making process when it comes to market entry. Building on a biased comparative-judgment-formation framework and egocentrism theory, this article theorizes a model of entrepreneurs’ egocentric market entry decisions. Specifically, we illustrate how entrepreneurs may be vulnerable to cognitive biases in the three stages of decision making: information acquisition, evaluation, and comparative judgment formation. This article contributes to understanding the high failure rate of new ventures by suggesting that egocentric and myopic decision-making processes on the part of entrepreneurs may impede rational decision making.

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Published Online: 2017-11-15

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