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Regulatory Focus and Executives' Intentions
To Commit Their Firms to Entrepreneurial Action

Babson College Entrepreneurship Research Conference (BCERC) 2006

Frontiers of Entrepreneurship Research 2006

14 Pages Posted: 11 Feb 2009 Last revised: 14 May 2014

Jeffery S. McMullen

Indiana University - Kelley School of Business - Management & Entrepreneurship

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: January 21, 2009

Abstract

Higgins (1997) suggests that strategic actions are influenced by an individual's regulatory focus, which consists of two distinct strategic orientations: promotion focus and prevention focus. Using survey data from senior executives of 275 telecommunications firms, we find that entrepreneurial intent is positively correlated with both the promotion focus and the prevention focus of the firm and that the positive correlation between promotion focus and entrepreneurial intent becomes even stronger at higher levels of environmental hostility. In contrast, we find that the positive correlation between prevention focus and entrepreneurial intent weakens and eventually reverses at higher levels of environmental hostility.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

McMullen, Jeffery S. and Zahra, Shaker A., Regulatory Focus and Executives' Intentions To Commit Their Firms to Entrepreneurial Action (January 21, 2009). Frontiers of Entrepreneurship Research 2006; Frontiers of Entrepreneurship Research 2006. Available at SSRN: https://ssrn.com/abstract=1331053 or http://dx.doi.org/10.2139/ssrn.1331053

Jeffery S. McMullen (Contact Author)

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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