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Increasing alertness to new opportunities: the influence of positive affect and implications for innovation

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Abstract

Understanding how entrepreneurs’ positive affect influences firm innovation through the cognitive processes (e.g., entrepreneurial alertness to business opportunities) is important because emotions often impact evaluations and judgments of opportunities and (subsequent) firm engagement in innovative activities. Using data involving Iranian entrepreneurs, we find that (1) Tang, Kacmar, and Busenitz’s (2012) three alertness components unfold sequentially (i.e., information scanning and search leads to information association and connection which in turn leads to opportunity evaluation and judgment); (2) positive affect has a positive impact on all three alertness dimensions; and (3) evaluation and judgment impacts firm incremental innovation positively. Implications and future research directions are discussed.

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Authors and Affiliations

  1. Indian Institute of Management Bangalore, Entrepreneurship Area, Bangalore, 560076, India

    Ludvig Levasseur

  2. Institute for Development Strategies, O’Neill School of Public and Environmental Affairs, Indiana University, Bloomington, 47405, IN, USA

    Ludvig Levasseur

  3. Richard Chaifetz School of Business, Saint Louis University, St. Louis, MO, 63108, USA

    Jintong Tang

  4. Department of Marketing, Otago Business School, University of Otago, Dunedin, 9054, New Zealand

    Masoud Karami

  5. Queenstown Resort College, Queenstown, 9348, New Zealand

    Masoud Karami

  6. Price College of Business, University of Oklahoma, Norman, OK, 73019, USA

    Lowell Busenitz

  7. Fields Chair of Ethics, McCoy College of Business, Texas State University, San Marcos, TX, 78666, USA

    K. Michele Kacmar

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  1. Ludvig Levasseur
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Levasseur, L., Tang, J., Karami, M. et al. Increasing alertness to new opportunities: the influence of positive affect and implications for innovation. Asia Pac J Manag 39, 27–49 (2022). https://doi.org/10.1007/s10490-020-09724-y

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