Cognitive misfit and firm growth in technology-oriented SMEs. (1st January 2010)

• Record Type: Journal Article
• Authors: Brigham, Keith H.; Mitchell, Ronald K.; De Castro, Julio O.
• Is Part Of: International journal of technology management. Volume 52:Number 1/2(2010)
• Page Start: 4
• Page End: 25
• Publication Date: 2010-01-01
• Subjects: entrepreneur -- founder -- owner-manager -- cognitive style index -- CSI -- firm growth -- cognitive misfit -- cognition -- person-organisation fit -- technology; Technology -- Management -- Periodicals; 658.4062
• Languages: English
• ISSNs: 0267-5730

Abstract

In this study, we examine how the founding owner-managers' cognitive style, levels of formalisation in their firms, and the interaction of these two variables (cognitive misfit) are related to firm growth in technology-oriented SMEs. We found that an intuitive decision-making style, higher levels of formalisation, and their interaction were significantly associated with firm growth over a five-year period. There has been a recent surge of interest in entrepreneurs' cognition (Mitchell et al., 2002, 2007) and the role of context on cognitive processes (Baron, 1998). Our findings suggest that incorporating individual cognition within a PO fit approach from the field of organisational behaviour can further our understanding of the key role of the founding owner-managers play in the subsequent growth of their firms. The implications of these findings for practitioners, researchers, and policy makers are developed.