Does personality influence effectual behaviour?

Abstract

Purpose The purpose of this paper is to develop a model to analyse what personality traits impact entrepreneurial cognitive and social strategic decision-making skills, originating from the effectuation framework. Design/methodology/approach A total of 128 participants from an entrepreneurial pre-launch programme were assessed by experienced incubator and business coaches. Personality was measured by a Big Five test. Based on a confirmatory factor analysis, the relationships were analysed between personality and three core dimensions of the effectuation framework: the bird-in-hand principle, the crazy quilt principle and the pilot in the plane principle. Findings Specific patterns (moderation effects) as opposed to levels of personality traits proved to be relevant. The bird-in-hand and the crazy quilt principles are related to the moderating effect between sensitivity to feedback, sociability and ambition. The pilot in the plane principle was related to the whole pattern of entrepreneurial key qualities embedded in the extraversion domain. Furthermore, relationships of personality with key issues in the effectuation framework were found, examples being reflecting on a high diversity of means or on own talents, conducting a thorough risk analysis and engaging in inspirational networking. The final model revealed a direct positive influence of the capacity to conduct a thorough risk analysis on the overall capacity to apply the effectuation principles. Research limitations/implications A limitation of this study is the exclusion of the lemonade principle from the final model. This being based on unsatisfying model fit indices. Another limitation is the cross-sectional design, as well as the chosen research context: the pre-launch entrepreneurial programme. Practical implications The research results shed a light on the impact that personality plays in adoption of effectual decision making. Social implications The effectuation framework is widely used by individual entrepreneurs, SMEs and start-ups, to design innovative business models or implement an up-scaling strategy. Originality/value Little is known about the underlying mechanisms of the effectuation framework. Moreover, evidence-based insights are offered to entrepreneurs that intent to mobilise effectual behaviours.