ANALYZING THE EFFECT OF DECISION-MAKING APPROACHES ON ENTREPRENEURIAL PERSONALITY TRAITS

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1 ANALYZING THE EFFECT OF DECISION-MAKING APPROACHES ON ENTREPRENEURIAL PERSONALITY TRAITS Mohammad Mehdi Tanaomi 1, HazharAzizi 2*, Jamal Roshanzadeh 3, VahidFaraji 4 1-Assistant Professor, University of Tehran 2-MA student, University of Tehran 3-MA student, Azad University of Mahabad 4-MA student, University of Tehran *Corresponding Author: Abstract Entrepreneurial decision making is amazingly influenced by entrepreneurs beliefs and their personality traits. Hence, without choosing an appropriate approach, entrepreneurs may confront with problems on decision-making process. The aim of the paper is to explain the relationships between approaches of decision making and entrepreneurial personality traits which might be known as characteristics of students who study humanities, engineering, natural sciences and veterinary at University of Tehran.The results of study showed that decision-making approaches associated positively with entrepreneurial features of students. However, among approaches, "Decisive and Determined" and "Risk taking" effect strongly on entrepreneurial personality traits. More specifically, the results of tests revealed that there is a meaningful relationship between male and female students on the creativity trait. In addition, high amount of risk taking trait not necessarily leads to careless or emotional decisions. Keywords: Decision making approaches, entrepreneurial personality traits, entrepreneurship, University of Tehran. 1. INTRODUCTION Entrepreneurs seek to establish new ventures by means of innovative and creative ideas, opportunity pursuit and resource organizing, which are accompanied by highly risk taking [1]. To play a distinguished role in the modern and intercultural wide communications period, we need to enough capabilities in the decision making process, conceptualizing, and critical thinking. Meanwhile, many researchers have paid meticulous attention toidentify entrepreneurial personality traits such as need for risk -taking, innovativeness, need for achievement and internal locus of control [2]. More than anything, the attitudes of entrepreneurs are formed due to intellectual processes and their beliefs, directly impacting on their decision making procedures. However, they make their decision under their entrepreneurial understanding, beliefs and information processing. The entrepreneurial decision making amazingly is influenced by their beliefs and personality features [3]. The difference between an entrepreneur and a layman lies in the decision making step, which is utilized to define problems [4]. Today's problems require premise and up-to-dated decisions, accurate understanding and predictions about possible events in order to being survive for the future. Based on this fact, this study will investigate the effect of decision making approaches on entrepreneurial personality traits of students who study at university of Tehran. 2.Literature review Definition of Entrepreneurship Entrepreneurship phenomenon is linked with individual's cultural and social conditions. Economic, cultural and psychological factors as well as their combinations influence on emergence of an entrepreneurship [5].

2 Regarding the importance of individual psychological backgrounds in the tendency to do entrepreneurship, it said that in the early 1960s, entrepreneurial studies have been started [6]. Furthermore, Berman (2007) postulates that common tendency to risk taking is not a determining factor to being an entrepreneur. Furthermore, Karland (2005) emphasizes the following characteristics: 1- Need for achievement, 2- Internal locus of control, 3- Propensity to take risk, 4- Independence 5- Creativity 6- Tolerance for ambiguity 7- Dreaming 8- Facing to Challenges Need for achievement: is defined as the success of motivation in the individual tendency to reach settled goals based on some standards (Need to achievement might be effective through its success possibility and inherent attraction). However, according to Maslow s theory when individuals undertake repetitive failures, the need for avoidance of failures are formed in their characteristics. This, should be considered as setting the avoidance of failure with learning experiences [8]. Internal locus of control: identifies how individuals attribute positive or negative results to themselves or other aspects [9]. In addition, internal locus of control is divided into three categories: 1- External locus of control 2- Internal locus of control 3- External-internal locus of control [8]. Propensity to risk taking: it is believed that entrepreneur is a moderate person who takes calculated risks but never in vain [4]. Independence: is like a power that enforces entrepreneurs to take risk and tolerance of possible consequences in order to create new ventures [11]. In other words, independence is defined as controlling on self-destiny [11]. Creativity: combines problem solving, which enable entrepreneurs to meet environmental challenges and problems [12]. Creativity is described as ability of organization to create a new product, thought or service. Tolerance for ambiguity: by which a person accepts instability and changes in conditions of uncertainty and ambiguity. Tolerance of ambiguity is evaluated on factors such as the amount of tendency and access to information. Dreaming: entrepreneurs tend to imagine the future. This imagination allows them to continue their business interestingly, enabling them to realize their dreams. Facing to Challenges: entrepreneurs never be satisfied with whatever they have. They are motivated to accomplish their mission, trying to act ahead of possible challenges. Decision making approaches Decision making, inherently is a rational process. The rationality has a strong relationship with calculated behaviors [15]. Information processing requires risk taking for an entrepreneur. However, these factors, might overlook by managers in their decision process. Adversely, entrepreneurs may use selection factor in opportunity evaluation [15]. Entrepreneurs should take all their activity dimensions into account as the decision making approach, deserving following features: Decisive and : successful entrepreneurs rely on their initiative sense, skills, required knowledge to survive, and even to their courage and dare in order to prosecute big ideas without entering to detailed and rational process which may interrupt other s decision process [4] Risk taking: given the general notion of an entrepreneur as one who predicts possible events, entrepreneurs take actions rapidly that involve cost, by the way entrepreneurs tend to pay mentioned costs [4]

3 Resistant - Resolved: Entrepreneurs may imagine about achievement of successes and incredible progress in their career, but to exploit the results, they tend to live in a real life. They should know that what would be effective in recognizing the events and possible advantages in order to take actions [4] : Entrepreneurs tend to be immensely passionate about their work enjoying what they are doing, time passes so quickly for them, but they never get tired and always are motivated to accomplish their goals [4]. Relation between decision making approaches and entrepreneurial traits Many researchers have studied the role of different entrepreneurship psychological behaviors [17]. These studies show that decision making is known as the critical feature for an entrepreneur, which concerns with entrepreneur's personality traits. Gibcus et al (2008) by developing current typology in entrepreneurial decision making area present various type of entrepreneur decision makers and their distinguished orientation in related approaches [16]. Early investigation of determining an entrepreneur s decision making features have been carried out by McGrath et al (1992), Baron (2006), Richard and Allen (2006) that led to an information processing approach to explore a framework, by which entrepreneurs can make decisions toward identifying opportunities. The new insight was presented in entrepreneurship decision making area, which might help entrepreneurs to recognize opportunities [17]. According to Robert lamb (1952), an entrepreneur plays as a decision making role, emphasizing the notion that the entrepreneurship is described as a social decision making process which is took by innovative economists. From his perspective, the most important role of an entrepreneur is to perform a widespread process, by which local and international communities or transforming social - economic symbols are provided [15]. Wright et al (2000) have proved that entrepreneurs take their decisions by utilizing entrepreneurial perceptions, beliefs and individual creeds, determining beliefs and individual values. These impact on their decision which seems to be considered as a reason for their successful decision. The Mentioned researchers intended to distinguish between entrepreneurial information processing and management perception in which systematic decisions making have been explained. NA D & D ILC RT Entrep. Traits Decision making approaches PTR IN RR CR HE Fig 1.Conceptual model TA DR METHODOLOGY

4 The investigation methodology is based on descriptive-survey evaluation. The research questionnaire was distributed among 400 students of University of Tehran who study humanities, engineering, natural sciences and veterinary. The method was selected through random sampling. Finally, the sum of 374 completed questionnaires were analyzed. Related Questionnaire was used for collecting data which its questions have been designed as closed fivechoice in which, the questions have been rated according to decision making and entrepreneurship personality indices. In addition, its validity before the propagation and distribution is assessed by experts. Moreover, like every valid questionnaire, Cronbach s alpha tested the reliability. The descriptive statistic was used for calculating of the frequency, frequency percent, and cumulative frequency percent; the inferential statistic such as: Pearson`s correlation coefficient test were used. The findings are presented in two tables. Table 2 demonstrates Score mean of decision making approaches and entrepreneurial personality traits regarding the type of gender and education. Table 1. Descriptive statics Variable Frequency Percent Gender Male Female Education Humanitie 158 Engineeri 126 Science 74 Veterinary RESULTS Table 2 shows average of scores for all students on entrepreneurship test, among male and female genders with different educational degrees. The related scores for both of them are less than 3.The high mean score is belonged to students of engineering with 2.91, while minimum score is belonged to students of humanities with Entrepreneurship mean score for male is 2.94, little much than female students score which is Based on the result of Table 2, best scores for both male and female students are in decisive decision making approach, while low score has gained in resistant-resolve. In order to analyze the relations precisely, Pearson Correlation Coefficient Test was used to evaluate relation between entrepreneurship index and decision making approaches. FINDINGS Table 3 reveals these results: The analysis revealed that students entrepreneurship talents correlate strongly with decisive and approach. But persistent-stable and decisive and approaches associate significantly with entrepreneurial personality traits. Resistant-resolved approach has a significant relation with all personality traits, except Tolerance for ambiguity. In addition, high energy level has negative and significant correlation with tolerance for ambiguity. In response to question 1: is there relation between decisive and approach with entrepreneurial personality traits belonged to students of University of Tehran? Based on the results, correlation coefficient is 56%, which affirms positive and significant relationship between decisive and approach with students entrepreneurship talent.

5 Entrepreneurshi Std. Entrepreneurshi Mean Std. Mean Frequency Decision-making approaches Variable SAUSSUREA (ISSN: ) Table 2.Score mean of decision making approach and entrepreneurial personality traits regarding gender and education Gender Male Decisive % 42% 42% 44% % Female Decisive % 42% 47% 44% % Humanities Decisive Resistant % 44% 43% 45% % Natural Sciences Education Decisive % 43% 40% 45% % EngineeringDecisive % 42% 40% 43% % Veterinary Decisive % 44% 56% 47% %

6 Entrepreneurship* Challenging Dreaming Tolerance for ambiguit Creativity Independence Risk taking Internal locus of contro Need for achievement SAUSSUREA (ISSN: ) Question 2 is aimed to determine that: risk- taking approach has relation with entrepreneurial personality traits of students who study in University of Tehran? The score 32 % of correlation coefficient assures meaningful relationship between risk-taking approach and entrepreneurship talents of the students of university of Tehran. Question 3 seeks to find answer for: stable-persistent approach and entrepreneurial personality traits have meaningful relationship? Correlation coefficient for this question is 42%, determining that stable and entrepreneurship talents in students have meaningful and positive relationship. Following question analyzes the relationship between the resistant-resolved approaches with entrepreneurial personality traits. While the correlation coefficient is 11% and is considered low, but there are positive and significant relation.our findings show that decisive and with correlation coefficient 56% approaches have more effect on entrepreneurial personality traits than others, while and high energy level has the lowest correlation coefficient 11% with resistant approach. To make clear the relationship among decision making approaches and their ability to predict entrepreneurial personality traits for evaluating their multiple relations, the Regression analysis was used. Table 3 - Pearson Correlation Coefficient Test results for decision making approaches and entrepreneurial personality traits Entrepreneurial Traits Decision making Approaches Decisive & Determined 0.43* 0.24* 0.48** 0.37* 0.23* 0.12** 0.35* 0.59* 0.56** Risk taking 0.34* 0.13* 0.24** 0.28* * 0.25* 0.32** Resistant-Resolve 0.33* 0.20* 0.33** 0.29* 0.23* *.035* 0.42** High energy leve 0.18* * ** 0.17* *

7 * P<0.05 ** P<0.001 Table 4. Multiple relationships in decision making approaches and entrepreneurship Variable R R 2 Modera d R 2 F β Significant Interval Decisive an Decisive an Risk-takin CONCLUSION Our study concludes that there is no distinguished difference among the mean of all decision making approaches estimated (3.5), understanding that students of university of Tehran no have a special tendency toward an approach, however, they might use all of approaches in contingency circumstances. Regarding meaningful correlation of decisive and approach, we can infer that students follow to create novel ideas based on decision making approach. But, approaches such as decisive and, stable - persistent and resistant, have positive and meaningful relationship with entrepreneurial traits of students. This demonstrate that entrepreneurs always follow new ideas, making efforts much than ever to realize that. High level of risk taking no cause careless or emotional decisions, adversely provide appropriate conditions to rational analysis of cost- benefit which lead to take actions consciously. Other result of study revealed that tolerance for ambiguity and approaches such as resistant and resolved and high energy level have meaningful but negative relationship. In other words, entrepreneurs with these approaches never accept that uncertainty is considered as a part of life neither making enable to keep life with deficient knowledge. They are successful, emotional entrepreneurs who resolve their own intellectual ambiguities. REFERENCES 1. Stevenson H. C.jarillo A paradigm of enterpreneurship: entrepreneurial managemen.management Journal, vol.11, (1990). pp Alavi A., Entrepreneurship and University mission, Rahyaft journal, No. 29, (2004). pp Kickul, J., Gundry, L.K., Barbosa, S.D., Simms, S. One style does not fit all: The role of cognitive style in

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