When the Quest for the Best Pays Off: How Maximising Entrepreneurs Improve Performance by Creating Entrepreneurial and Market Oriented Businesses

Abstract

New research in the behavioural sciences has identified that some individuals consistently strive to make the best choice through extensive information search (maximisers), while others are inclined to select options that are good enough (satisficers). The purpose of this study is to investigate how these decision-making styles impact the entrepreneurial process. It is predicted that maximising entrepreneurs will perform better in their entrepreneurial ventures than satisficing entrepreneurs. In order to achieve improved outcomes, it is expected that maximisers will apply their preference for information search to develop more entrepreneurially oriented and market-oriented businesses. Data gathered from a sample of 172 entrepreneurs in the United States indicate that entrepreneurs who maximise outperformed their satisficing counterparts. This relationship was mediated by both entrepreneurial orientation and market orientation, suggesting that maximising entrepreneurs are more likely than satisficers to adopt innovative and market driven approaches to improve entrepreneurial performance.