Public policy studies often seek to determine the effects of policy changes by treating the effects of individual differences as random error. Viewing managers as embedded agents whose social structures are subject to manipulation by policy makers, we illustrate how individual differences can be infused into policy research to glean insight into how and why policy changes affect decisions, such as where to locate new ventures. We consider how the effects of sociopolitical situational attributes (e.g., level of regulation, support services for business, cost of living, and natural and cultural amenities) are influenced by individual differences such as the manager’s position (entrepreneur or corporate executive), political party identification, and political values. Our illustrative investigation suggests that individual differences can systematically influence the efficacy of public policy and therefore deserve greater scholarly attention. We conclude by articulating the benefits of an embedded agency approach to researching entrepreneurship public policy.
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