The Entrepreneurs Random Walk

Fiore, Robert A.

doi:10.19030/jabr.v28i3.6957

Cited by 2 publications

(5 citation statements)

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“…As related to entrepreneurship, FAE occurs when biased, cognitive tendencies lead people to attribute business success as due to the entrepreneur's behavior rather than environmental circumstances. This FAE tends to be stronger when it comes to celebrity entrepreneurs (Fiore, 2012).…”

Section: Theoretical Backgroundmentioning

confidence: 89%

“…Examples of variance between ex ante statements and ex post outcomes were surprisingly prevalent in archived material. Additional examples are found in previously published work (Fiore, 2012). Quotes presented below are statements from important entrepreneurs related to their organizations with large market capitalizations.…”

Section: Jepp 42mentioning

confidence: 99%

“…To imply causation with confidence, the CEO-entrepreneur would have to consciously display a strong level of ex ante knowledge of expected ex-post-facto success. To imply causation of ex post results without ex ante knowledge implies a degree of randomness through the existence and interaction of chance events (Fiore, 2012). Shane (2008) reported that about only 2 percent of new firms achieve substantial growth rates and large market capitalizations.…”

Section: Business Growth Intentions and Faementioning

confidence: 99%

“…Hence, the "nearest" supply organization succeeds and the remaining competing business-plans fail. When compensating for the over-weighting of entrepreneurial success due to attribution-error bias, and while factoring in the evidence of archived entrepreneurial statements of ex ante doubt, and while considering the non-repeatability of organizational creation, we may possibly consider successful entrepreneurial success a random event in competitive markets (Fiore, 2012).…”

Section: Business Growth Intentions and Faementioning

confidence: 99%

“…We may conclude that while the entrepreneurial tasks are critical imperatives; the longer time-frame of organizational growth factors may result in growth much more important to wealth-creation. Finally, within the competitive markets of entrepreneurship, the mechanism of "opportunistic exploitation" and even random luck may be important factors in entrepreneurial business success than generally believed (Fiore, 2012).…”

Section: Fae In Entrepreneurshipmentioning

confidence: 99%

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Measuring and testing general fundamental attribution error in entrepreneurship effecting public policy

Fiore

Lussier

2015

Journal of Entrepreneurship and Public Policy

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Purpose – The purpose of this paper is to empirically test for fundamental attribution error (FAE) – the naturally occurring bias of humans to over-attribute business success to celebrity-entrepreneur disposition. Design/methodology/approach – Employing a five-step process, this paper measures and tests for FAE bias in entrepreneurial situations. The methodology includes anecdotal historical evidence; developing a FAE survey instrument; having 101 respondents classify variables; statistically testing and validating the instrument; and then statistically identifying the importance of each factor with a sample 105. Findings – Significant statistical evidence for an active FAE bias was found. People do tend to attribute business success to entrepreneurial dispositions, rather than team behavior and circumstantial outcome factors which can reduce the effectiveness of public policy. Research limitations/implications – There is minimal research on FAE in entrepreneurship effecting public policy, thus there is a need for research to better understand factors of business outcomes actually based on entrepreneurial dispositions vs team behavior and circumstantial-situational factors. Practical implications – FAE bias may lead the general public, entrepreneurs, and public policy makers to overemphasize the impact of the entrepreneur’s behavior and especially the dispositional factors of the celebrity-based entrepreneur when assessing causation of firm performance. This would under-emphasize the value of other organizational factors. Misidentification of true cause-effect factors may lead to inappropriate managerial conclusions and introduction of error in public policy decisions. Originality/value – Although FAE is primarily a psychological literature concept, this is the first study to contribute empirical evidence of the FAE of professionals employed in business as it applies to entrepreneurship and economic outcomes.

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Section: Theoretical Backgroundmentioning

confidence: 89%

Section: Jepp 42mentioning

confidence: 99%

Section: Business Growth Intentions and Faementioning

confidence: 99%

Section: Business Growth Intentions and Faementioning

confidence: 99%

Section: Fae In Entrepreneurshipmentioning

confidence: 99%

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