Title: Blinded by passion? Entrepreneurial passion and its effect on risk propensity

Authors: Daniela Gimenez-Jimenez; Corinna Vera Hedwig Schmidt; Cécile Wilm; Steffen Strese

Addresses: TU Dortmund University, Vogelpothsweg 87, 44227 Dortmund, Germany ' TU Dortmund University, Otto-Hahn-Str. 4, 44227 Dortmund, Germany ' TU Dortmund University, Otto-Hahn-Str. 4, 44227 Dortmund, Germany ' TU Dortmund University, Otto-Hahn-Str. 4, 44227 Dortmund, Germany

Abstract: Drawing on identity theory, we investigate the relationship between harmonious and obsessive entrepreneurial passion and risk propensity, moderated by illusion of control. We argue that illusion of control, as a cognitive bias, interacts in this relationship because it relates to entrepreneurs' decision-making in risky environments. We examine our model based on a sample of 445 German entrepreneurs. We find both harmonious and obsessive entrepreneurial passion positively relates to risk propensity. Illusion of control strengthens the relationship between obsessive passion and risk propensity, while it weakens the relationship between harmonious passion and risk propensity. We contribute to theory and practice by providing evidence that entrepreneurs' risk propensity depends on their identification as 'being an entrepreneur', which is influenced by both entrepreneurial obsessive and harmonious passion and that this relationship is further shaped by the illusion of control bias.

Keywords: harmonious and obsessive passion; illusion of control; risk propensity; cognitive bias; identity theory.

DOI: 10.1504/IJEV.2025.154196

International Journal of Entrepreneurial Venturing, 2025 Vol.17 No.4, pp.415 - 443

Accepted: 03 Dec 2025
Published online: 16 Jun 2026 *

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