Behavioral finance and perceived ethnic entrepreneurial investment success: The dual role of project management methodology
Behavioral finance and perceived ethnic entrepreneurial investment success: The dual role of project management methodology

Summary/Abstract: PURPOSE: The study aims to investigate the effects of behavioral finance (BF) on ethnic entrepreneurship investment success (EEIS), with a particular focus on ethnic entrepreneurs operating in host-country contexts. It further hypothesizes that project management methodology (PM2) both moderates and mediates this relationship. METHODOLOGY: A quantitative research design was employed using survey data collected in 2024 from a sample of 183 ethnic entrepreneurs in the province of Quebec. The study is grounded in a descriptive-analytical approach and forms part of a broader empirical investigation examining behavioral and contextual determinants of entrepreneurial investment outcomes. FINDINGS: The results indicate that behavioral finance has a significant negative impact on ethnic entrepreneurs’ decisions; however, the PM2 methodology both moderates and mediates this relationship. A detailed examination of behavioral finance factors revealed that heuristic effects and framing-dependent biases had significant impacts, whereas market conditions exhibited weaker associations. The findings also suggest that the convergence of heuristic effects, framing-dependent biases, and ethnic market conditions, when integrated with project management methodology, significantly enhances the decision-making processes of ethnic entrepreneurs. IMPLICATIONS: This study offers valuable insights for immigrant investors and ethnic entrepreneurs operating in host countries. The findings suggest that adopting the PM2 methodology can serve as both a moderator and a mediator of behavioral finance’s influence on decision-making processes. ORIGINALITY & VALUE: Despite the growing prominence of behavioral finance in the financial sector, its impact on the decisions of non-financial investors, particularly entrepreneurs, remains insufficiently understood. This study is among the first to empirically examine the combined roles of behavioral finance and PM2 methodology in shaping ethnic entrepreneurship decisions.

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