Moderating Effect of Affect on Decision Making in Small and Medium Sized Enterprises

21 Pages Posted: 13 Oct 2010 Last revised: 16 Oct 2010

See all articles by Seonghee Cho

Seonghee Cho

University of Missouri at Columbia

Rachel S. Shinnar

Appalachian State University - John A. Walker College of Business

Lilia Ziamou

Baruch College

Date Written: June 1, 2010

Abstract

Working within the framework of the Affect Infusion Model (AIM), we use a sample of 351 minority owned, small and medium sized firms, to test whether negative affect is infused into business related decision making. Findings suggest that negative affect has a relationship with business owner’s intent to quit the business. Perceptions of success and satisfaction with the business and the entrepreneur’s personal goals were also related to owner’s intent to quit. Negative affect was found to moderate the relationship between perceived success and satisfaction and the entrepreneur’s personal goals and intent to quit which offer support to the AIM.

JEL Classification: M13

Suggested Citation

Cho, Seonghee and Shinnar, Rachel S. and Ziamou, Lilia, Moderating Effect of Affect on Decision Making in Small and Medium Sized Enterprises (June 1, 2010). Available at SSRN: https://ssrn.com/abstract=1691103 or http://dx.doi.org/10.2139/ssrn.1691103

Seonghee Cho

University of Missouri at Columbia ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States

Rachel S. Shinnar (Contact Author)

Appalachian State University - John A. Walker College of Business ( email )

Boone, NC 28608
United States

Lilia Ziamou

Baruch College ( email )

One Bernard Baruch Way, B12-240
New York, NY 10010-5585
United States

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