Modeling the Role of Cognitive and Emotional Components in Entrepreneurs’ Strategic Decision-Making

Abstract

This study aimed to identify and model the interactive role of cognitive and emotional components in entrepreneurs’ strategic decision-making processes. This applied qualitative study was conducted using thematic analysis. The study population comprised university academics specializing in management and entrepreneurship, as well as experienced entrepreneurs working in start-ups and knowledge-based companies. Participants were recruited through purposive and snowball sampling, and in-depth semi-structured interviews were conducted with 12 participants until theoretical saturation was achieved. After audio recording and verbatim transcription, the interviews were analyzed through the thematic network approach in three consecutive stages: extracting basic themes, developing organizing themes, and constructing global themes. MAXQDA software was used to organize and code the qualitative data. The credibility and trustworthiness of the findings were enhanced through member checking, agreement among researchers during coding, the use of diverse data sources, and the simultaneous collection and analysis of data. The findings indicated that entrepreneurs’ strategic decision-making emerged from the interaction of five global themes: cognitive dimensions, emotional dimensions, individual characteristics, environmental factors, and outcomes and strategies. Cognitive dimensions, including information processing, option evaluation, analytical thinking, and knowledge-based learning, provided the rational foundation for strategic decisions. Emotional regulation, motivational emotions, intuition, and emotional intelligence influenced the direction, intensity, and implementation of these decisions. Individual characteristics, particularly resilience, risk-taking, self-efficacy, and an opportunity-oriented mindset, acted as catalytic factors that shaped entrepreneurs’ interpretations of environmental stimuli. Environmental conditions could either intensify or mitigate cognitive load and emotional pressure. The central phenomenon of the model was “cognitive–emotional balance,” through which rational analysis, experiential intuition, and emotional regulation were integrated. This balance contributed to improved organizational performance, adaptability, organizational learning, sustainable profitability, and competitive advantage. Effective strategic decision-making in entrepreneurship depends on the entrepreneur’s ability to integrate rational analysis with intuition, emotional regulation, and environmental adaptability; therefore, the simultaneous development of cognitive and emotional competencies can strengthen decision quality under uncertainty.