Abstract

Innovation is often seen as essential for ventures to succeed. High business failure rates in entrepreneurship, however, suggest that innovations are frequently driven by entrepreneurs blinded by overconfidence. Thus, anticipating when and why entrepreneurs will be motivated to innovate is fundamental for entrepreneurial success. Using a large sample obtained from population surveys conducted in 77 countries, this study analyzes the variables that are significantly associated with innovative behaviors. The research tests a model proposing that the joint effects of hubris, growth aspirations, and an entrepreneur’s level of entrepreneurial experience have a crucial impact on innovative endeavors. It finds that hubris is significantly related to entrepreneurs’ growth aspirations and that ambition, in turn, is positively related to innovative behaviors. In addition, the study finds that both relationships are moderated by the level of entrepreneurial experience. These findings highlight the need to wise up amateur entrepreneurs before they embark on innovative endeavors.