When ‘Good Enough’ Is Not Enough: The Role of Maximizing or Satisficing Decision-Making Styles, Innovation Behavior, and Entrepreneurial Alertness in the Pursuit of New Business Opportunities

Abstract

This paper investigates whether an individual’s tendency to maximize when making decisions influences their entrepreneurial intentions, innovation behavior, entrepreneurial alertness, and opportunity evaluation. It is predicted that maximizers will have greater entrepreneurial intentions. Underlying this process, it is predicted that maximizers will report greater innovation behavior and entrepreneurial alertness. Using data from a survey of 253 working professionals in the U.S., hypotheses are tested using multiple regression and mediation analysis. The results suggest that maximizers have higher entrepreneurial intentions, and that this relationship is mediated by their innovation behavior and entrepreneurial alertness. A second study is conducted with a survey of 192 students to explore how maximizers evaluate a specific entrepreneurial opportunity, and how their evaluation influences their entrepreneurial intentions. Using mediation analysis, findings of study 2 suggest that maximizers are more likely to see business opportunities as attractive, which increases their entrepreneurial intentions. The second study also replicates the main results of study 1 in a unique sample.

The Partial Mediator Role of Satisficing Decision-Making Style Between Trait Emotional Intelligence and Compassion Fatigue in Healthcare Professionals

“…This observed relationship might be explained by the fact that decision-makers who can handle their emotions also tend to deal easily with complex decisions by focusing their attention only on the relevant information and reducing the overwhelm and fatigue caused by challenging decisions such as routinary clinical decisions (Soltwisch, 2015). Coherently, emotionally intelligent individuals may also find less decision difficulty, regret, self-blame, and more adaptation due to their capacity to weigh alternatives and see other viewpoints (Schwartz et al, 2002; Soltwisch & Krahnke, 2016).…”

How decision-styles and cultural orientation influence entrepreneurial and social entrepreneurial intentions: A cross-cultural comparison

“…Recently, it has been found that maximizers in the U.S. have a more innovative mindset and are more entrepreneurially orientated, which makes them more likely to see entrepreneurship as a viable career path ( Soltwisch et al, 2022 ). It makes sense that entrepreneurship may be a viable means for achieving better results for those who maximize, especially in the U.S., where the economic environment may favor those who take steps to create a better future for themselves.…”

“…The goals of social entrepreneurs often require considerable effort, and it is important for entrepreneurs to build support for others to help reach the venture’s goals. Maximizers are more innovative and identify additional opportunities for new businesses in their environment ( Soltwisch et al, 2022 ). They persistently seek out additional information and options to find better solutions.…”

“…Among a growing list of entrepreneurial trait variables in this research stream, it appears that the way people approach decisions may contribute to one’s desire to start new business ventures. A recent study in the U.S. found that those who seek out additional information and options to find the best alternatives by applying a maximizing decision-making style had greater entrepreneurial intentions than those who settle for good enough choices, known as satisficers ( Soltwisch et al, 2022 ). Behind these increased intentions, the maximizing trait is associated with greater innovativeness and an entrepreneurial orientation that allowed the potential entrepreneurs to identify more potential business opportunities in their environment.…”