PERSUASIVE ENTREPRENEURIAL BEHAVIOR AND SYSTEMS THINKING: TESTING A MODEL OF STARTUP RESILIENCE IN UNCERTAIN ENVIRONMENTS

Startups in developing markets face high uncertainty and resource constraints that threaten early failure. Although there has been increased interest in the resilience of startups, few empirical studies examine the joint effect of behavioral and cognitive capabilities of founders in their adaptive capacity in those situations. This paper evaluates the relationship between persuasive entrepreneurial behavior (PEB) and systems thinking (ST) and startup resilience (SR) amongst early-stage ventures in Nigeria. Based on the resource-based view and the cognitive capability perspectives, the research hypothesizes that resilience is increased through concerted action of persuasive relational behaviors and systemic reasoning. Data were collected from a sample of 312 founders and co-founders of Nigerian startups in various sectors via a cross-sectional survey data. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that PEB has a positive and significant effect on startup resilience ([Formula: see text], [Formula: see text]) and systems thinking ([Formula: see text], [Formula: see text]), where systems thinking also positively influences startup resilience ([Formula: see text], [Formula: see text]). Mediation analysis indicates that systems thinking partially mediates the relationship between PEB and resilience ([Formula: see text], [Formula: see text]), suggesting complementary behavioral and cognitive pathways. The results contribute to entrepreneurship research in that persuasive influence and systemic reasoning are both examples of intangible founder capabilities that contribute to the strengthening of venture resilience in resource-constrained environments. The paper also provides context-relevant suggestions to entrepreneurship development initiatives in developing economies by identifying the importance of incorporating stakeholder communication and systems-based decision training to facilitate robust startup development in the presence of adverse conditions.