Organizational Behaviour Theories
Organizational Behaviour Theories in Entrepreneurship
Understanding Motivation, Leadership, and Group Dynamics
Organizational Behaviour (OB) is the study of how individuals and groups act within an organization. For founders, these theories are the "operating system" for managing teams, sustaining personal resilience, and scaling culture.
A — D
Achievement Motivation Theory: McClelland's core motivation theory suggesting that entrepreneurs are driven by a high "Need for Achievement" (n-Ach).
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Ambiguity Tolerance Theory: A behavioral trait theory exploring how individuals function and make decisions when outcomes are uncertain—a vital trait for early-stage founders.
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Attribution Theory: Explores how founders explain the causes of success or failure—whether they credit internal effort or external luck (Self-Serving Bias).
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Cognitive Evaluation Theory: Examines the tension between intrinsic motivation (passion) and extrinsic rewards (VC funding/money) in the entrepreneurial process.
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Disagreeableness Theory: Drawing from the "Big Five" personality traits, this theory argues that entrepreneurs often succeed not by being liked, but by being willing to challenge social consensus and friction.
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E — H
Entrepreneurial Identity Theory: A social psychology perspective on how a founder constructs their "self-concept." It explores how role identity (e.g., "I am an innovator") dictates behavior and persistence.
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Expectancy Theory: Vroom's theory stating that effort is based on the belief that it will lead to performance and a desired reward (Valence).
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Great Man Theory: An early leadership theory suggesting that great leaders are born with certain traits that make them naturally fit to lead.
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Hubris Theory: A cognitive bias theory explaining how overconfidence and exaggerated pride can lead founders to underestimate risks and overestimate their ability to control events.
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Human Capital Theory: Focuses on the individual's stock of knowledge, habits, and creativity. It argues that success is a function of the founder's investment in their own education and skills.
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I — N
Impulsivity Theory: A psychological trait theory linking entrepreneurship to a lack of premeditation. It suggests that highly impulsive individuals are more likely to act on opportunities that others over-analyze.
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Jack-of-all-Trades Theory: Lazear’s theory that posits entrepreneurs are not specialists, but generalists who have invested in a balanced portfolio of skills to manage a business.
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Narcissism Theory: Examines the "Dark Triad" of personality. It explores how a founder's grandiose sense of self can drive ambitious vision but also lead to toxic organizational cultures.
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L — P
Locus of Control Theory: Differentiates between individuals who believe they control their own destiny (Internal) versus those who credit fate (External).
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Planned Behavior Theory: Ajzen’s model for how attitudes, subjective norms, and perceived behavioral control combine to predict entrepreneurial intention.
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Procedural Justice Theory: Focuses on the perception of fairness in processes. In startups, this dictates how founders distribute equity and make decisions to maintain team motivation.
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R — Z
Regulatory Focus Theory: Higgins’ theory distinguishing between two motivational orientations: "Promotion" (seeking gains/growth) vs. "Prevention" (avoiding losses/safety).
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Resilience Theory: The psychological capacity to adapt to stress. This theory studies the behavioral mechanisms that allow founders to bounce back from failure and rejection.
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Self-Efficacy Theory: Bandura's theory on an individual's belief in their own ability to execute the tasks required to succeed.
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Social Identity Theory: Explores how founders derive self-esteem from their group membership. It explains the "us vs. them" mentality often seen in startup culture versus corporate incumbents.
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Upper Echelons Theory: Posits that a firm's strategic outcomes are a direct reflection of the top managers' values and backgrounds.
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