How Good Is Entrepreneurs' Optimism For Creative Performance? Role Of Entrepreneurs' Experience And Environmental Dynamics

This study investigates the relationship between entrepreneurs’ dispositional optimism and the creative performance of their new ventures. While optimism is generally regarded as a positive entrepreneurial trait, this research explores whether excessive optimism may, under certain conditions, undermine creative outcomes. Drawing on social cognitive theory, the study surveyed 1,000 new ventures across Pakistan using a stratified random sampling technique. Data were collected from 231 top-level founding entrepreneurs using validated psychometric scales. Hierarchical regression and interaction analyses were conducted to examine the direct and moderated effects of optimism on creative performance. Results reveal a significant negative association between high levels of dispositional optimism and creative performance. This effect is intensified by two moderating variables: prior entrepreneurial experience and environmental dynamism. Specifically, optimism has the most detrimental impact on creativity among experienced entrepreneurs operating in highly dynamic industry environments. A three-way interaction analysis confirmed that these contextual factors amplify the adverse consequences of excessive optimism. Although optimism is often considered a vital entrepreneurial trait, this study demonstrates that its effects on creativity are not universally positive. Instead, excessive optimism, when paired with experience and environmental volatility, can impair decision-making and reduce creative output. These findings highlight the importance of balancing optimism with realism in entrepreneurial settings. Educators and practitioners should promote self-regulation and metacognitive strategies to help entrepreneurs channel their optimism effectively. The study also encourages a nuanced approach to entrepreneurial training and theory, emphasizing the need to account for dispositional traits in context.