The Why and How of Entrepreneurial Action: An Integrative Model Based on Individual Values and Action Theory

Although individual values have been scarcely studied in the entrepreneurship literature, existing research provides evidence that they are relevant for understanding entrepreneurial behavior. Values, however, do not necessarily influence action in a direct way. Instead, they may indirectly predict behavior via more proximal psychological processes. We build upon previous research in entrepreneurship values using Schwartz (1992) individual-values theory and Frese's (2007) entrepreneurial action theory, and propose a theoretical model in which individual values have an indirect effect on entrepreneurial behavior through a series of four ulterior cognitive processes: Goal setting and intentions, mapping of information about the environment, planning and monitoring of the execution, and feedback processing. In doing so we integrate the theory of individual values with entrepreneurial cognition research. Despite their complementarity, these two theoretical approaches have not been studied together before. In this way, we offer new insights on the way individual values can explain entrepreneurial action. Based on these two lines of research we additionally propose a research agenda.