Entrepreneurial cognition and the quality of new venture ideas: An experimental approach to comparing future-oriented cognitive processes

• Published in: Journal of business venturing 2019-03, Vol.34 (2), p.327-347
• Main Authors: Frederiks, Arjan J., Englis, Basil G., Ehrenhard, Michel L., Groen, Aard J.
• Format: Article
• Language: English
• Subjects: Counterfactual thinking; Experimental study; Future-oriented cognition; New venture idea; Perspective taking; Prospective thinking
• ISSN: 0883-9026; 1873-2003
• DOI: 10.1016/j.jbusvent.2018.05.007

In the research reported here, we compared how future-oriented cognitive processes underpin differences in the quality of new venture ideas (NVIs) generated by respondents. We primed the use of future-oriented cognitive processes in two experiments. The first experiment shows that prospective thinking leads to NVIs of higher quality in comparison to counterfactual thinking, perspective taking and a control group. The second experiment shows that prospective thinking and perspective taking result in NVIs of higher quality compared to counterfactual thinking and the control group. We also find that prior knowledge of technology strengthens these effects. Post-hoc analyses show that these effects are present when respondents are prompted to generate NVIs, but not when they spontaneously generate NVIs, and that respondents with more prior business experience are more likely to spontaneously generate NVIs. Finally, we discuss contributions our research makes to the literature on entrepreneurial cognition and opportunity recognition, and to practice. •We compare the effects of three cognitive processes on new venture ideas' quality.•Using prospective thinking results in new venture ideas of higher quality•Using perspective-taking results in new venture ideas of higher quality•Prior knowledge of technology strengthens these relationships.•Inexperienced entrepreneurs could benefit from actively using these processes.