Unfolding the Relationship Between Entrepreneurs’ Cognitive Style and Performance: Experiential Learning as a Mediator and Responsibility and Risk-taking as Moderators

Abstract

The aim of the study is to examine the effects of entrepreneurs’ cognitive style on firm performance mediated through experiential learning. A conceptual model was developed showing the responsibility as a moderator between cognitive style and experiential learning, and risk taking as a moderator between experiential learning and firm performance. Using a survey instrument, data were collected from 378 entrepreneurs in the Southern part of India. Hayes’s PROCESS macros were used to test the hypothesised relationships. The results reveal that all dimensions of cognitive style: Knowing style, planning style and creating style, are significantly and positively related to firm performance. The results also suggest that experiential learning mediates the relationship between three dimensions of cognitive style and firm performance. Further, the findings indicate that entrepreneurs’ responsibility moderates the relationship between all three dimensions of cognitive style (knowing style, planning style and creating style) and experiential learning. The results also showed risk-taking as a moderator between experiential learning and firm performance. This study offers practical insights to both entrepreneurs and educators by highlighting the role of cognitive styles in achieving success. Further, educational institutions can conduct workshops and training programs to bring awareness about the antecedents to entrepreneurial success. The conceptual model developed, to the best of our knowledge, is first of its kind especially in the context of a developing country—India. This study emphasises the significance of three dimensions of cognitive style as precursors to firm performance, mediated through experiential learning. This study extends the current knowledge on the effect of cognitive styles on entrepreneurship intentions by exploring the responsibility and risk-taking as moderators.