The impact of psychological micro-foundations on entrepreneurship research

This dissertation explores the integration of psychological micro-foundations in entrepreneurship research for the first time, focusing on the affective, cognitive, and behavioral dimensions that influence entrepreneurial behavior and success. The concept of psychological micro-foundations, stemming from strategic management literature, refers to the psychological aspects of humans that drive organizational phenomena. Central to this investigation is the notion that understanding the psychological components at the individual and collective levels can provide valuable insights into the complexities of entrepreneurship beyond the traditional focus on economic outcomes. The dissertation is structured around three studies that examine the role of Psychological Capital and Organizational Psychological Capital (PsyCap) among small and medium-sized enterprises (SMEs) during crisis scenarios, particularly the COVID-19 pandemic, and the conceptualization of the Mittelstand Mindset. The first study assesses the impact of SME leaders' PsyCap on strategic decision-making and company performance during a crisis. Findings suggest that higher levels of PsyCap correlate with a preference for investment measures over cost-cutting measures, highlighting the influence of psychological micro-foundations on strategic choices and business outcomes. The second study extends the analysis to the collective level, investigating the effects of Organizational Psychological Capital (OPC) on SME performance during the pandemic. Results indicate that OPC enhances economic performance and fosters creative innovation and socially valuable behaviors such as organizational citizenship, cooperation, and solidarity. This underscores the significant role of collective psychological micro-foundations in navigating business crises and promoting a resilient organizational culture. The third paper conceptualizes the 'Mittelstand Mindset,' a unique psychological orientation that defines certain German companies known for moderate growth and significant contributions to economic stability. This study utilizes qualitative analysis to delineate the cognitive, affective, and behavioral elements of the Mittelstand Mindset, proposing it as a model of entrepreneurship that prioritizes long-term sustainability and social responsibility over rapid scaling. III Synthesizing these studies, the dissertation underscores the importance of psychological micro-foundations in understanding and enhancing entrepreneurial performance. It demonstrates how affective, cognitive, and behavioral dimensions interact and influence entrepreneurial activities, suggesting that these foundations can serve as crucial tools for navigating complex and challenging business environments. Overall, this research contributes to entrepreneurship theory by highlighting the value of psychological insights in understanding the dynamics of entrepreneurial behavior. It calls for a broader incorporation of psychological micro-foundations in entrepreneurship research, advocating for a multi-level approach that recognizes the interplay between individual factors, collective resources, and business outcomes. This perspective enriches academic discussions and offers practical implications for enhancing entrepreneurial effectiveness and resilience in various economic contexts.