Title: Cognitive misfit and firm growth in technology-oriented SMEs

Authors: Keith H. Brigham, Ronald K. Mitchell, Julio O. De Castro

Addresses: Jerry S. Rawls College of Business Administration, Texas Tech University, Box 42101 Lubbock, TX 79409, USA. ' Jerry S. Rawls College of Business Administration, Texas Tech University, Box 42101 Lubbock, TX 79409, USA. ' The Arthur Blank Center for Entrepreneurship, Babson College, 231 Forest Street, Babson Park, MA 02451, USA

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.

Keywords: entrepreneurship; entrepreneurs; founders; owner-managers; cognitive style index; CSI; firm growth; cognitive misfit; cognition; person-organisation fit; technology management; technology-oriented SMEs; small and medium-sized enterprises; cognitive styles; formalisation; intuitive decision making.

DOI: 10.1504/IJTM.2010.035853

International Journal of Technology Management, 2010 Vol.52 No.1/2, pp.4 - 25

Published online: 06 Apr 2013 *

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