Big Five Personality Theory: The Five Factor Model

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1. INTRODUCTION Various personality traits have been identified during the past decades, nevertheless, they have been group into five broadly defined dimensions of personality trait which are known as the Five-Factor Model (FFM) or Big Five personality theory (Bergner, Neubauer & Kreuzthaler, 2010; McCrae & Costa, 2008). The model consists of five type of personality traits namely, Openness, Conscientiousness, Extraversion, Agreeableness and Neuroticism (McCrae & Costa, 2008). The FFM is a comprehensive arrangement of personality traits, which are tendencies to show constant patterns of thoughts, feelings, and actions (Bergner, Neubauer & Kreuzthaler, 2010; McCrae & Costa, 2008). Researchers such as Yan (2010) along with Gupta and Muita (2012)…show more content…
It was asserted by Nadkarni and Herrmann (2010:1050) that the personality traits of an entrepreneur influence the strategic decisions and actions of a firm which eventually have implications on the firm’s performance. Burger (2010) defined personality trait as the regular behaviour patterns and intrapersonal processes that is from within a person. In simply words, personality trait is characteristics that give someone their individuality. However, not much clarity has been given if personality trait participates in the business success as well. Business success which is defined as the accomplishment of the venture goals that was initially set by the entrepreneur , like the financial stability (Farrington, 2012). This paper plans to uncover whether or not the entrepreneur’s personality traits contribute in the business success. This will be done through the use of the FFM. The next sections of this essay include the purpose, problem, discussion and followed…show more content…
Personality traits are associated with the intention of starting a venture (Gupta & Muita, 2012; Leutner et al., 2014). In addition, the personality traits of an entrepreneur influence the strategic decisions and actions of a firm which eventually have implications on the firm’s performance (Nadkarni & Herrmann, 2010). It was found that the there is indeed a relationship between the entrepreneur’s personality traits and the business success (Gupta & Muita, 2012). From the Five-Factor Model that was reviewed, the personality traits that have shown correlation with business success are: Openness to experience, Conscientiousness, Extroversion and Low Neuroticism (Baer, 2014; Bergner, Neubauer & Kreuzthaler, 2010; Gupta & Muita, 2012; Leutner et al., 2014). Those traits were recognised influencing the entrepreneurial success, the financial performance, the development performance of the enterprise and managerial success (Baer, 2014; Bergner, Neubauer & Kreuzthaler, 2010; Gupta & Muita, 2012; Leutner et al.,

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