Research on entrepreneurial identity is increasingly focused on the identity tensions of entrepreneurs’ self-understanding of ‘who they are’. These tensions are a natural part of the entrepreneurial journey, but little is known about the socio-cognitive factors that influence how entrepreneurs deal with them. Drawing on self-theory, we have developed a theory that outlines three pathways that entrepreneurs may take based on their preferred processing style: informational, normative, and diffuse-avoidant. Additionally, we explore the identity-related outcomes of these responses, such as achievement and moratorium, foreclosure, and diffusion. We also examine how each self-theorizing style influences whether perceived identity tensions are seen as threats or opportunities, and how entrepreneurs engage in identity work to resolve these tensions. Our theory aims to provide a deeper understanding of the origins of entrepreneurial identity tensions and how entrepreneurs respond to them based on socio-cognitive factors.
