Entrepreneurs, Effectual Logic, and Over-Trust.

This article complements extant literature on entrepreneurship and trust by proposing a model of over-trust (the tendency to trust more than what is warranted) using entrepreneurial characteristics and effectual logic. We trace how entrepreneurs following effectual processes may tend to over-trust. More formally, we propose that specific personality characteristics of the entrepreneur interact with effectual logic to make the entrepreneur more susceptible to over-trust. The proposed model is value neutral in that we do not imply that over-trust has negative consequences for entrepreneurs. In fact, it may be part of the overall risk that entrepreneurs assume in a new venture creation.

Journal or Publication:
Entrepreneurship Theory and Practice
Ranjan Karri
Sanjay Goel
Year Published
Relevant Principles:
Download Attachment:
 PDF Download