2x SITE paper development workshops. 'Opportunity selection in new venture founding teams. The effect of emotion regulation on opportunity risk perceptions' by Stela Ivanova and 'Competing Perspectives on IT Ambidexterity: An Exploratory Study of the Digi
SITE (Science, Innovation, Technology, and Entrepreneurship)
|Speaker:||Stela Ivanova/ Ana Ortiz de Guinea Lopez de Arana, University of Exeter|
|Date:||Wednesday 2 October 2019|
|Location:||Streatham Court B|
Opportunity selection in new venture founding teams. The effect of emotion regulation an opportunity risk perceptions by Stela Ivanova, Theresa Treffers and Markus Groth
While research in entrepreneurship continues to increase general understanding of the opportunity-related cognitive-emotional processes preceding entrepreneurial action, questions about their nature nonetheless persist. In this study, we seek to complement recent research on opportunity selection by investigating team-level inter-individual emotional processes associated with risk perceptions of business to business (B2B) and business to consumer (B2C) opportunities. Grounded in theory of emotion regulation (Gross, 1998; Gross & John, 2003), we investigate the effect of emotion regulation of negative emotions on B2B and B2C opportunity risk perceptions and opportunity selection in a laboratory experiment with 80 dyads. During the experiment, dyads were randomly assigned to one of two emotion regulation conditions: suppression or expression of negative emotions. Results from mediation model (Preacher & Hayes, 2008) show significant indirect effect of emotion regulation on B2B opportunity selection, such that dyads in suppression condition perceived less risk in the B2B opportunity in comparison to dyads in expression condition, and in return were more likely to select the B2B opportunity over the B2C opportunity. With this research we make contributions towards understanding more fully the cognitive-emotional processes behind opportunity selection at the team level. Furthermore, our study is the first study to explore the selection between B2B and B2C market opportunities in new venture teams. Finally, we also contribute to the growing literature on the effect of emotion regulation in entrepreneurship (De Cock et al., 2019). Unlike previous research which focuses on the role of emotion regulation after failure, our study focuses on the unexplored pre-venture creation stage of opportunity selection, thus expanding evidence of the importance of emotion regulation throughout the entrepreneurial journey.