The effects of personality and uncertainty on the decision making process and new venture outcomes of South African entrepreneurs

Abstract

Recent research has concluded that personality factors influence entrepreneurial success. This study used a causal steps approach, to test a model that included effectuation and causation decision processes as mediators and environmental uncertainty as a moderator, in the relationship between personality and venture success. Conscientiousness and openness, two relevant big five personality dimensions, were shown to be positively related to the use of causation and effectuation decision logic depending on the level of uncertainty in the environment. The level of causation was further linked to venture revenue growth being more successful in low uncertainty environments supporting its nomination as a mediator for personality. Consequences for entrepreneurship research are discussed and recommendations made for further research in this area. Copyright