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Trust in Generative AI : Impact on Causal/Effectual Decision-Making
Jordan, M.N.C. (2025) Trust in Generative AI : Impact on Causal/Effectual Decision-Making.
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| Abstract: | This study aims to explore to what extend trust in Generative AI influences the decision-making logic of novice entrepreneurs during the startup phase of the new venture. A qualitative research design was adopted, following a mixed-method approach in data collection – conducting both survey and semi-structured interviews. Data from 10 novice entrepreneurs were then analyzed through the combination of abductive approach and the Gioia method. This allowed for a flexible yet systematic analysis of the data with existing theories. In the findings, effectual entrepreneurs tend to trust GenAI and they utilize the technology to help them maximize their available means, set acceptable losses, and operate under uncertainty. In contrast, causal entrepreneurs favoured manually doing tasks such as creating business plans and analyzing the market, exhibiting distrust in GenAI. In summary, this study suggests that depending on how the entrepreneurs view GenAI and what role it has in their decision- making, trust in the technology can significantly shape their entrepreneurial decision- making approaches. Entrepreneurs with high trust are more likely to adopt effectual decision-making approaches as they see GenAI with a role of an exploratory partner, as well as a tool that allows them to embrace contingency and leverage existing means. On the other hand, entrepreneurs with distrust are more likely to engage in causal reasoning as they want to reduce risks and maintain control by adhering to known and tested processes. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/106951 |
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