Abstract
Errors are common in the entrepreneurial world, but the ability to learn from past mistakes can separate successful entrepreneurs from the rest. On the other hand, it has been demonstrated that the average population can anticipate future problems based on emotional signals elicited from past experience—a capacity known as emotion-based learning. The present research was aimed at examining emotion-based learning while also incorporating risk-taking predisposition (RTP) as an additional measurement among entrepreneurs using Iowa gambling task (IGT). Participants were instructed to pick cards from a deck, and each card either awarded or subtracted points. While performing this task, participants’ skin conductance response (SCR) was recorded to examine subtle emotional signals. The sample of entrepreneurs involved in our study showed worse IGT performances than those in the control group. This was similar to findings in a previous study (Muehlfeld et al., Entrep Theory Pract 41:533–565, 2017) that surmised that the typical behavior was simply due to exploring all opportunities that eventually had significant cost to participants. Here, we extend the explanation that the SCR measurement supported emotion-based learning, indicating that our participants were aware of the potential risks of the IGT. Furthermore, entrepreneurs’ RTP could explain the incompatibility between physiological and behavioral outcomes. Entrepreneurs seemed to ignore the bodily-emotional signals, perhaps tempted by a particular card deck’s gain/loss ratio, which eventually led to significant losses. This study illuminates the interplay between risk-taking propensity, physiological markers of emotion, and performance in a game scenario that simulates decision-making in an ambiguous environment.
Résumé
Il est courant de commettre des erreurs dans le monde de l’entrepreneuriat, mais la capacité d’apprendre des erreurs passées peut séparer les entrepreneurs qui réussissent des autres. D’autre part, il a été démontré que la population normale peut anticiper les problèmes futurs en se basant sur les signaux émotionnels provoqués par les expériences passées, une capacité connue sous le nom d’apprentissage basé sur les émotions. La présente étude visait à examiner l’apprentissage basé sur les émotions, tout en incorporant la prédisposition à la prise de risque (risk taking predisposition ou RTP) comme mesure supplémentaire, chez les entrepreneurs en utilisant l’Iowa Gambling Task (IGT). Les participants devaient choisir des cartes dans des jeux, et chaque carte donnait ou soustrayait des points. Pendant l’exécution de la tâche, la réponse de conductance de la peau (skin conduction response ou SCR) des participants a été enregistrée pour examiner les signaux émotionnels subtils. L’échantillon d’entrepreneurs participant à notre étude a présenté une performance IGT plus faible que celle du groupe témoin, ce qui est similaire à une étude précédente (Muehlfeld et al. 2017) qui supposait que le comportement typique était simplement dû à l’exploration de toutes les opportunités qui ont finalement coûté aux participants une grande perte. Ici, nous étendons l’explication selon laquelle la mesure du SCR a soutenu l’occurrence d’un apprentissage basé sur les émotions, indiquant que nos participants étaient conscients du risque potentiel de l’IGT. L’incompatibilité entre les résultats physiologiques et comportementaux pourrait être expliquée par le RTP des entrepreneurs. Les entrepreneurs ont semblé ignorer les signaux émotionnels corporels, peut-être tentés par le rapport gain/perte d’un jeu de cartes particulier, ce qui a finalement conduit à des pertes importantes. Cette étude met en lumière l’interaction entre la propension à prendre des risques, les marqueurs physiologiques de l’émotion et la performance dans un scénario de jeu qui émule la prise de décision dans un environnement ambigu.
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Data Availability
The data that support the findings of this study are available from the corresponding author, Gian Seloni, upon reasonable request.
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Seloni, G., Kusrohmaniah, S. & Lufityanto, G. The perils of acting rashly: Risk-taking propensity impeding emotion-based learning in entrepreneurs. J Int Entrep 21, 89–110 (2023). https://doi.org/10.1007/s10843-022-00325-y
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DOI: https://doi.org/10.1007/s10843-022-00325-y