Error orientation and entrepreneurial decision making in Chinese enterprises: Opportunity identification as mediator

We examined how error orientation and opportunity identification behavior relate to entrepreneurial decision making in Chinese small and medium enterprises (SMEs) and how these perceptions of opportunity identification mediate the effects of error orientation on entrepreneurial decision making. We analyzed 187 questionnaires from participants in SME firms in China. The results indicated that perceived error orientation and opportunity identification were related to and explained variance in entrepreneurial decision making. Opportunity identification also fully or partially mediated the relationship between error orientation and entrepreneurial decision making. Elevating opportunity identification beliefs and clarifying an entrepreneur’s understanding of the importance of opportunity identification for the functionality and effectiveness of his/her firm can help promote entrepreneurial decision making. Alertness to error orientation can contribute to the development of stronger perceptions of entrepreneurial opportunity identification and lead to better entrepreneurial decision making.