This book explains the transitions in twentieth-century industrial leadership from Britain to the United States and, most recently, to Japan, in terms of the changing business investment strategies and organizational structures in these nations. The author criticizes economists for failing to understand these historical changes. The book shows that this intellectual failure is not inherent in the discipline of economics; there are important traditions in economic thought that the mainstream of the economics profession has simply ignored.

Business Organization and the Myth of the Market Economy

Examines the motivation for achievement as a psychological factor that shapes economic development. Refuting arguments based on race, climate, or population growth, the book instead argues for cultural customs and motivations - especially the motivation for achievement - as the major catalysts of economic growth. Considering the Protestant Reformation, the rise of capitalism, parents' influences on sons, and folklore and children's stories as shaping cultural motivations for achievement, the book hypothesizes that a high level of achievement motivation precedes economic growth. This is supported through qualitative analysis of the achievement motive, as well as of other psychological factors - including entrepreneurial behavior and characteristics, and available sources of achievement in past and present highly achieving societies. It is the achievement motive - and not merely the profit motive or the desire for material gain - that has advanced societies economically. Consequently, individuals are not merely products of their environment, as many social scientists have asserted, but also creators of the environment, as they manipulate it in various ways in the search for achievement. Finally, a plan is hypothesized to accelerate economic growth in developing countries, by encouraging and supplementing their achievement motives through mobilizing the greater achievement resources of developed countries. The conclusion is not just that motivations shape economic progress, but that current influences on future people's motivations and values will determine economic growth in the long run. Thus, it is most beneficial for a society to concentrate its resources on creating an environment conducive to entrepreneurship and a strong ideological base for achievement. (CJC)

The Achieving Society

Risk attitudes have an impact on not only the decision to become an entrepreneur but also the survival and failure rates of entrepreneurs. Whereas recent research underpins the theoretical proposition of a positive correlation between risk attitudes and the decision to become an entrepreneur, the effects on survival are not as straightforward. Psychological research posits an inverse U-shaped relationship between risk attitudes and entrepreneurial survival. On the basis of recent waves of the German Socio-Economic Panel (SOEP), we examine the extent to which risk attitudes influence survival rates of entrepreneurs. The empirical results confirm that persons whose risk attitudes are in the medium range survive significantly longer as entrepreneurs than do persons with particularly low or high risks.

The impact of risk attitudes on entrepreneurial survival

Publisher Summary This chapter discusses the psychology of risk: what risk is (if it is anything at all), how people think about it, what they feel about it, and what they do about it. The chapter describes the way psychologists think about risk: how they study it, what tasks they use, what factors they vary, and what models they build (or borrow) to describe risk-taking behavior. Technically, the word risk refers to situations in which a decision is made whose consequences depend on the outcomes of future events having known probabilities. Psychological studies of risky choice (it is the term used conventionally to refer to all but the most extreme instances of ignorance or ambiguity) fall into two groups. At one extreme are the studies run by mathematically inclined experimental psychologists in which subjects make decisions about gambles described in terms of amounts and probabilities. At the other extreme are studies run by personality psychologists, who are mostly interested in individual differences in risk taking. A theory of risky choice is presented in the chapter that attempts to meld the strengths of both approaches. Empirically and methodologically it is tied to the experimental approach to risky choice. But theoretically it is more strongly tied to motivational approaches.

[Advances in Experimental Social Psychology] Advances in Experimental Social Psychology Volume 20 Volume 20 || Between Hope and Fear: The Psychology of Risk

The personal characteristics of entrepreneurs can be importantly related to entrepreneurial startup intentions and behaviors. A country-moderated hypothesis including the relationship between an in...

Risk-Taking Propensity and Entrepreneurship: The Role of Power Distance

The personality of entrepreneurs can have an important influence on entrepreneurial startup intentions and behaviors. Risk-taking propensity can be defined as a person’s orientation to take risks. ...

Risk-Taking Propensity and Entrepreneurship: The Role of Power Distance in Six Countries

The personality of entrepreneurs can have a large influence on entrepreneurial startups. The general locus of control, which is an element of the personality of entrepreneurs, is considered to be critical for the creation of entrepreneurial startups. Despite the generally acknowledged importance of one’s locus of control for entrepreneurial intentions and new firm startups, a research gap exists because less emphasis has been given to external locus of control, in particular chance control. Chance non-control can be defined as a person’s disbelief in chance- or luck-based outcomes. In this study, a country-moderated hypothesis about the relationship between a person’s chance non-control and his or her entrepreneurship (activities or intentions) was developed and empirically tested by using data collected through a structured questionnaire from 645 students in three countries (China, Finland and Slovenia). Regression analysis was used to test the hypothesis. Based on the findings, which are partially in support of the moderated hypothesis, recommendations for research and practice are proposed. The key contribution of the study is the explanation of the role of chance non-control in entrepreneurship and the notion the relationship between chance non-control and entrepreneurship tends to be moderated depending on uncertainty avoidance.

Matjaz Gantar

Papers

Risk-Taking Propensity and Entrepreneurship: The Role of Power Distance

Risk-Taking Propensity and Entrepreneurship: The Role of Power Distance in Six Countries

Chance non-control and entrepreneurship