Entrepreneurs' emotional intelligence as a factor explaining entrepreneurial psychological ownership and high-tech start-up growth

Abstract

PurposeThe purpose of this study is to examine the role of emotional intelligence (EI) in explaining high-tech entrepreneurs' psychological ownership (PO) and, in turn, how their PO influences venture growth.Design/methodology/approachThis study is based on data collected from 106 high-tech Israeli entrepreneurs.FindingsThe findings indicate that using emotions for problem-solving is positively associated with PO sense of efficacy, and that appraisal of emotions of others is negatively associated with PO sense of territoriality. Moreover, PO sense of efficacy is positively associated with growth, whereas sense of territoriality is negatively associated with growth. Finally, sense of territoriality has a curvilinear effect on venture growth.Research limitations/implicationsUnderstanding of the antecedents of entrepreneurs' PO and its influence on firms' growth is scant. The findings contribute to the psychology of entrepreneurship and PO literature by showing the influence of affective-based processes on high-tech start-up growth.Practical implicationsThe findings of this study suggest the entrepreneurs' EI indirectly affects other affective behaviors such as PO, which in turn influence venture growth. It highlights the need of entrepreneur to regulate their emotions and manage the emotional- and cognitive-based processes for the sake of firms' growth.Originality/valueThe findings expand the knowledge pertaining to the psychology of entrepreneurship by showing how EI as an affective dimension is interrelated with affective-based process and entrepreneurial firms' growth.