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Effect of the different forms of overconfidence on venture creation: Overestimation, overplacement and overprecision

Published online by Cambridge University Press:  23 January 2020

Zsófia Vörös Open the ORCID record for Zsófia Vörös [Opens in a new window]
Zsófia Vörös*
Affiliation:
Faculty of Business and Economics, University of Pecs, H-7622, Pécs Rákóczi út 80, Hungary
*
*Corresponding author. Email: [email protected]
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Abstract

This paper focuses on the effects of entrepreneurial overconfidence at new venture creation. By analyzing Global Entrepreneurship Monitor data and using the theory of planned behavior as a framework, the study provides new evidence on the relative or absolute nature of overconfidence in entrepreneurial skills and the effect of overprecision on new venture creation. Overprecision of supporting beliefs is newly linked to venture creation and it is shown that nascent entrepreneurs’ overconfidence is based on a self-focusing attitude. The results confirm that overconfidence is not a single construct and highlights the differences between the forms of overconfidence habitually confused in the entrepreneurship literature.

Keywords

new venture creationoverconfidenceconfirmation biastheory of planned behavior
Type
Research Article
Information
Journal of Management & Organization , Volume 30 , Issue 2 , March 2024 , pp. 304 - 317
Copyright
© Cambridge University Press and Australian and New Zealand Academy of Management 2020.

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