Decision Comprehensiveness and Corporate Entrepreneurship: The Moderating Role of Managerial Uncertainty Preferences and Environmental Dynamism

Abstract

abstract Although comprehensiveness is considered among the most salient and enduring strategic decision‐making characteristics in organizations, its influence on firm behaviour has remained elusive. As a first step, our study builds and tests a model that specifies the influence of comprehensiveness on the firm's pursuit of corporate entrepreneurship. Our core argument is that while comprehensiveness helps decision‐makers gain the knowledge needed to escape the ignorance and overcome doubt associated with this pursuit, this beneficial influence is conditional upon managerial uncertainty preferences, together with the level of dynamism in the external environment. Findings from a large sample study of CEOs from 349 SMEs provide general support for this argument and associated hypotheses.