The Impact of Entrepreneurs’ Cognitive Biases on Their Risk-Taking Propensity: A Research in the Technology Sector via Pls-Sem Method

Abstract

The purpose of this research was to examine the impact of the two main cognitive biases, i.e., jumping to conclusion bias and the belief inflexibility bias, on the entrepreneurs operating in the technology sector in terms of their risk-taking propensities. The participants of this research are 90 entrepreneurs in the technology sector. The PLS-SEM analysis method was used to analyse the data collected within the scope of this research. Based on the prospect theory, this study aimed to test the effects of jumping-to-conclusions bias and belief inflexibility bias on economic, general and career-based risk-taking propensities. It was observed that jumping-to-conclusions bias is associated with all risk-taking propensities, but belief inflexibility bias is only associated with general risk-taking propensity, but not with economic and career risk taking propensities. The findings were discussed within the framework of the literature and suggestions were made for future research.