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A psychological model of entrepreneurial decision making

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A causal model of a mechanism related to entrepreneurial decision making was built using information obtained from psychological questionnaires (the Entrepreneurial Alertness Questionnaire, Miao, 2006; The Prior Knowledge Questionnaire, derived from Shane, 2000, and 2 questionnaires developed by Miao - The Entrepreneurial Opportunity and Entrepreneurial Decision Making Questionnaire). Based on data from 327 entrepreneurs, the hypothesized structural equation model was validated. Results indicated that the individual psychological factors (entrepreneurial alertness and prior knowledge) were the antecedents of entrepreneurial opportunity recognition and influenced entrepreneurial decision-making criteria. Therefore, it was evident that opportunity recognition played a key mediating role in the model.
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