A new measure of entrepreneurial decision-making style

This study examines the development of a new measure: The Entrepreneurial Decision-Making Inventory to investigate a previously neglected area of research, namely entrepreneurial decision-making style. Questionnaires were distributed to 578 Victorian New Enterprise Incentive Scheme graduates resulting in 255 useable responses. Confirmatory factor analysis using AMOS 4.0 (Arbuckle and Wothke, 1999) indicated three distinct dimensions in the instrument: Convergent, Divergent, and Inventive decision-making styles. Semi-structured interviews were conducted to gather qualitative data which supported the confirmatory factor analysis and confirmed the multi-dimensional nature of the construct. The new instrument should assist researchers and practitioners to further understanding of the role of decision-making in small business development.