The effects of strategic decision making on entrepreneurial self-efficacy

This study builds on the construct of entrepreneurial self-efficacy (ESE), which measures the degree to which individuals believe they are capable of performing the tasks associated with new-venture management. I examined whether entrepreneurs' levels of ESE are influenced by the ways in which their ventures make strategic decisions. Results show that entrepreneurs exhibit a stronger belief in their own abilities when their ventures make decisions in ways that involve other employees, that are more comprehensive, and that incorporate more current information. Exploratory analyses also provide preliminary evidence that ESE enhances firm performance.