Challenge and threat appraisal of entrepreneurial errors: a latent profile analysis and examination of coping responses

According to transactional stress theory (TST), entrepreneurs’ coping strategies, such as error damage control or rumination about disengaging from business goals, hinge on whether they view action errors as challenges or threats. Using latent profile analysis (LPA), the study explores distinct profiles of challenge and threat appraisals among 649 entrepreneurs and their links to coping behaviors. The findings reveal five appraisal profiles with varying levels of challenge and threat, highlighting differences in error damage control and rumination, and suggesting avenues for the further development of TST and developing effective error management interventions among entrepreneurs.

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