When Work Doesn’t Work: An Alternative Framework to Examine Cognitive Factors in Employment-Entrepreneurship Transitions

Employees’ transition from wage employment to entrepreneurship, influenced by cognitive factors, has garnered significant scholarly attention. Despite this focus, the conventional Push and Pull Model, explaining these cognitive factors, has generated inconsistent findings. Our study critically reviews the cognitive factors shaping employees’ entrepreneurial transitions. Utilizing the Kaleidoscope Career Model parameters, we categorize these cognitive factors based on an analysis of 78 articles. Our comprehensive analysis identifies 23 distinct cognitive factors related to these transitions, which shed light on the multifaceted nature of employees’ decision-making processes. Our review reveals the limitations of the existing Push and Pull Model and advocates for the Kaleidoscope Career Model as an alternative model, which we argue offers a nuanced understanding of entrepreneurial transitions. Our research contributes to existing knowledge and provides a foundation for future studies, guiding scholars toward a more comprehensive exploration of employees’ transitions into entrepreneurship.