Regulatory Modes and Entrepreneurship: The Mediational Role of Alertness in Small Business Success

Abstract

Previous studies suggest that entrepreneurs play a key role in the success of their ventures. But relatively little is currently known about how they produce such effects. The present research provides data suggesting that two modes of entrepeneurs’ self‐regulation—locomotion and assessment—enhance a firm's success through their effects on the components of alertness. This mediational model was tested and supported with data from 120 entrepreneurs. Locomotion was positively related to the scanning and search component, while assessment was positively related to the association and evaluation components. These findings are discussed in terms of the role of founders’ self‐regulation in the performance of their companies.

Notes

15. Missing values of the control variables have been replaced with the mean.

16. We compared our model with an alternative model with direct effects of regulatory modes on perceived success. Overall the results of the SEM analysis confirmed that this new model does not add new information: either locomotion (b = 0.32, n.s.) or assessment (b =− 0.27, n.s.) has direct effects on perceived success. The fit indexes of the alternative models are: (χ² ₍₂₀₈₎ = 334.98, p < .001; RMSEA = 0.072; NNFI = 0.84; CFI = 0.88; SRMSR = 0.079; NNFI = 0.84). Since there is no difference between our model and alternative model (Δχ² ₍₂₎ = 1.13, n.s.), our model has to prefer for the parsimony principle.

Additional information

Notes on contributors

Clara Amato

Clara Amato is research fellow in the Department of Social and Developmental Psychology at University of Rome ‘La Sapienza.’

Robert A. Baron

Robert A. Baron is professor in the School of Entrepreneurship at Oklahoma State University.

Barbara Barbieri

Barbara Barbieri is professor in the Department of Social and Developmental Psychology at University of Rome.

Jocelyn J. Bélanger

Jocelyn J. Bélanger is professor in the Department of Psychology at New York University Abu Dhabi, United Arab Emirates.

Antonio Pierro

Antonio Pierro is professor in the Department of Social and Developmental Psychology at University of Rome.