The role of entrepreneurial passion and entrepreneurial alertness in risk propensity behavior: evidence for Brazilian firms

Purpose This study aims to explore the relationship between entrepreneurial passion (EP) and risk propensity (RP) and to examine the mediating role of entrepreneurial alertness (EA). Design/methodology/approach Using theoretical a model that posits RP as the dependent variable, EP as the independent variable and EA as mediating variable, the authors tested four hypotheses, on data from 285 entrepreneurs from Brazil, and examined the influence of EP to RP, through a mediation involving EA. Findings The findings show not significantly positive effect to EP on RP, but EA mediate the relation between EP and RP. Complementarily, EP was positive related to EA and EA was positive related to RP. Thus, EA is relevant in explaining the relationship between EP and RP in the analyzed context. Originality/value This research proposes new insights into the dynamics between affective (such as EP) and cognitive components (such as EA) in influencing risk-taking behaviors.