ABSTRACT
The human side of corporate evaluation is frequently neglected in small firm and credit management research. However, it seems to matter both who is being evaluated, especially in smaller companies, and who is making the evaluation. A major reason is that individuals process information in different ways. The purpose of this paper is to develop a conceptual framework for the effects of human differences in corporate evaluation based on cognitive theories about individuals' information processing behavior. Empirical data show clear differences in which information processing pattern is suited for particular situations. This implies that there is no such thing as the one best small firm manager or evaluator style. Effective prediction of success requires instead consideration of how well the individual is matched to situational characteristics, such as industry, competition, and business idea. The framework contributes an understanding of the role of the evaluator's personal preferences regarding the small firm manager as a person and the business situation as such and the advantages of "pluralistic-style" assessments focusing on the actual business fit between the small firm manager and the business idea/situation.
