Why are optimistic entrepreneurs successful? An application of the regulatory focus theory

Does entrepreneurial optimism affect business performance? Using a unique data set based on repeated survey design, we investigate this relationship empirically. Our measures of ëoptimismí and ërealismí are derived from comparing the turnover growth expectations of ...133 owners-managers with the actual outcomes one year later. Our results indicate that entrepreneurial optimists perform significantly better in terms of profits than pessimists. Moreover, it is the optimist-realist combination that performs best. We interpret our results using regulatory focus theory.

Why are optimistic entrepreneurs successful? An application of the regulatory focus theory

Does entrepreneurial optimism affect business performance? Using a unique data set based on repeated survey design, we investigate this relationship empirically. Our measures of ‘optimism’ and ‘realism’ are derived from comparing the turnover growth expectations of 133 owners-managers with the actual outcomes one year later. Our results indicate that entrepreneurial optimists perform significantly better in terms of profits than pessimists. Moreover, it is the optimist-realist combination that performs best. We interpret our results using regulatory focus theory.

Workplace duties or opportunities? Challenge stressors, regulatory focus, and creativity

Previous research has produced contradictory findings about the impact of challenge stressors on individual and team creativity. Based on the challenge-hindrance stressors framework (LePine, Podsakoff, & LePine, 2005) and on regulatory focus theory (Higgins, 1997), we argue that the effect of challenge stressors on creativity is moderated by regulatory focus. We hypothesize that while promotion focus strengthens a positive relationship between challenge stressors and creativity, prevention focus reinforces a negative relationship. Experimental data showed that high demands led to better results in a creative insight task for individuals with a strong trait promotion focus, and that high demands combined with an induced promotion focus led to better results across both creative generation and insight tasks. These results were replicated in a field R&D sample. Furthermore, we found that team promotion focus moderated the effect of challenge stressors on team creativity. The results offer both theoretical insights and suggest practical implications. © 2013 Elsevier Inc.

The impact of stressors and regulatory focus on creativity:a dual level of analysis

Presentation

Regulatory foci and organisational commitment

We use regulatory focus theory to derive specific predictions regarding the differential relationships between regulatory focus and commitment. We estimated a structural equation model using a sample of 520 private and public sector employees and found in line with our hypotheses that (a) promotion focus related more strongly to affective commitment than prevention focus, (b) prevention focus related more strongly to continuance commitment than promotion focus, (c) promotion and prevention focus had equally strong effects on normative commitment. Implications of these findings for the three-component model of commitment, especially the ‘dual nature’ of normative commitment, as well as implications for human resources management and leadership are discussed.

Job satisfaction and organizatinal commitment in Greece

In Study 1 this research investigated research hypotheses based on the moderating role of the economic sector to job satisfaction/organizational commitment relationships, and especially to the forms of commitment and the facets of satisfaction – extrinsic satisfaction and intrinsic satisfaction. Overall, 618 employees successfully completed the questionnaires (258 from private sector companies and 360 from the public administration). Then, distinguishable organizational commitment profiles developed and constructed from the forms or constructs of commitment. Two different samples were used in Study 2 in order to test the relevant hypotheses – 1,119 employees from the private sector and 476 from the public sector. Study 3 used the concept of regulatory focus, where the two foci relate differently to forms of organizational commitment and these two states moderate the satisfaction/commitment relationship and furthermore, individuals develop four separable regulatory focus characters based on the two major regulatory foci. Moreover, the moderating intervention is crucially influenced by the employment status of the individuals. The research hypotheses developed in this part were tested through two samples of employees: 258 working in the private sector and 263 in the public sector. Study 4 examined the mediating role of job satisfaction on the organizational commitment/organizational citizenship behaviours relationship. It argued that job satisfaction mediates more strongly the relationship between these forms and loyal boosterism (one of the OCB dimensions). The relevant hypotheses were tested through a combined sample of 646 employees, equally drawn from the two sectors.

Growth expectations and financial performance of small businesses:evidence from Latvia

By applying regulatory focus theory, this paper investigates the impact of both initial confidence and of exactness of growth expectations on subsequent financial performance of the small firms. Drawing on the unique data set based on the repeated survey design, we make one of the first attempts to explore the complexity of this relationship empirically. Overall the findings suggest that controlling for other relevant factors, including actual growth, the entrepreneurs having higher growth expectations perform significantly better later on in terms of profitability. In addition, education has a strong modifying effect: the impact of high growth expectations on subsequent profit performance is stronger for entrepreneurs with lower level of education.