We analyze the relationship between entrepreneurship and decision-making under risk and uncertainty using the Columbia Card Task: an experimental task eliciting affective decision-making under conditions of risk and uncertainty. In a sample of 127 university students, we find robust evidence that individual entrepreneurial orientation (IEO) is negatively related to decision-making under risk and uncertainty. In addition, we show that distinguishing the subscales of IEO is key to understanding this relationship, since while the relationship is negative for the Proactiveness and Innovativeness subscales, it is positive for the Risk taking subscale. Moderation analyses show that heterogeneous sensitivity towards possible gains and losses explains the main relationship.
Bibliographical noteFunding Information:
Kristel de Groot is supported by an NWO Research Talent Grant (406.17.505). The authors thank Marin Baelde, Denisa Debrecka, and Eline Hagenberg for their assistance in collecting the data. They also thank Roy Thurik for his valuable contribution to the conceptualization of this study. Christiaan Tieman and Marcel Boom are acknowledged for their crucial role in programming the CCTs in E‐prime. Finally, the authors thank the Erasmus Research Institute of Management (ERIM) for the financial support to conduct the experiments.
© 2022 The Authors. Applied Psychology published by John Wiley & Sons Ltd on behalf of International Association of Applied Psychology.