IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v5y2015i4p251-268n4.html
   My bibliography  Save this article

The Theory of Entrepreneurship

Author

Listed:
  • Mishra Chandra S.

    (Florida Atlantic University, Boca Raton, FL, USA)

  • Zachary Ramona K.

    (Zicklin School of Business, Baruch College, The City University of New York, New York, NY, USA)

Abstract

The theory of entrepreneurship, namely the entrepreneurial value creation theory, explains the entrepreneurial experience in its fullest form, from the entrepreneurial intention and the discovery of an entrepreneurial opportunity, to the development of the entrepreneurial competence, and the appropriation of the entrepreneurial reward (Mishra and Zachary 2014). The theory of entrepreneurship provides in sufficient detail the interiors of the entrepreneurial process using a two-stage value creation framework. In the first stage of venture formulation, the entrepreneur driven by a desire for entrepreneurial reward (i.e., entrepreneurial intention) leverages the entrepreneurial resources at hand to sense an external opportunity (cue stimulus) and effectuate the entrepreneurial competence that is sufficient to move to the second stage. Several ventures fail at this stage. In the second stage of venture monetization, the entrepreneur may acquire external resources such as venture capital or strategic alliance to effect growth. Investors face an adverse selection problem when entrepreneurial ability and venture quality are difficult to ascertain. Entrepreneurs may use incentive signals to secure a higher valuation offer from the investors. A business model design with embedded dynamic capabilities can reconfigure the entrepreneurial competence to create sustained value and appropriate the entrepreneurial reward.

Suggested Citation

  • Mishra Chandra S. & Zachary Ramona K., 2015. "The Theory of Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 5(4), pages 251-268, October.
    • Handle: RePEc:bpj:erjour:v:5:y:2015:i:4:p:251-268:n:4
    DOI: 10.1515/erj-2015-0042
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2015-0042
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2015-0042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chandra S. Mishra & Ramona K. Zachary, 2014. "The Theory of Entrepreneurship," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-37146-1, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amare Abawa Esubalew & A. Raghurama, 2021. "The moderating effect of size on the relationship between commercial banks financing and the performance of micro, small, and medium enterprises (MSMEs)," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 1-14, December.
    2. Mishra Chandra S., 2017. "Entrepreneurial Orientation," Entrepreneurship Research Journal, De Gruyter, vol. 7(4), pages 1-20, October.
    3. Dana, Léo-Paul & Salamzadeh, Aidin & Mortazavi, Samira & Hadizadeh, Morteza & Zolfaghari, Mahnaz, 2022. "Strategic Futures Studies and Entrepreneurial Resiliency: A Focus on Digital Technology Trends and Emerging Markets," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 16(1), pages 87-100.
    4. Md. Abdul Momen & Shamsul Huq Bin Shahriar & Md. Kamrul Hassan & Seyama Sultana, 2020. "Determinants of Using Social Networking Sites Toward Entrepreneurial Success: Experience from a Developing Nation," Emerging Economy Studies, International Management Institute, vol. 6(2), pages 191-200, November.
    5. H. R., Ganesha & Aithal, Sreeramana, 2020. "Exclusive Brand Outlet Expansion Framework for Lifestyle Brands in India (EBOE-LS)," MPRA Paper 102551, University Library of Munich, Germany.
    6. Sandra Misiak-Kwit & Małgorzata Wiścicka-Fernando & Kelaniyage Shihan Dilruk Fernando, 2021. "The Symbiotic Mutualism between Co-Creation and Entrepreneurship," Sustainability, MDPI, vol. 13(11), pages 1-12, June.
    7. Nurul Ashykin Abd Aziz & Mohamad Rohieszan Ramdan & Nik Syuhailah Nik Hussin & Zuraimi Abdul Aziz & Juliana Osman & Hasif Rafidee Hasbollah, 2021. "The Determinants of Global Expansion: A Study on Food and Beverage Franchisors in Malaysia," Sustainability, MDPI, vol. 13(18), pages 1-16, September.
    8. Sandra Misiak-Kwit & Yunhua Zhang, 2022. "Entrepreneurial attitude of students - comparative study between China and Poland," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(3), pages 118-133, March.
    9. Greenwood Davydd James, 2015. "Completing the Cycle in Entrepreneurial Research: Action Research to Link Entrepreneurs and Researchers and Reform the University," Entrepreneurship Research Journal, De Gruyter, vol. 5(4), pages 269-292, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:5:y:2015:i:4:p:251-268:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.