IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v10y2020i3p61-d401651.html
   My bibliography  Save this article

Getting Nothing from Something: Unfulfilled Promises of Current Dominant Approaches to Entrepreneurial Decision-Making

Author

Listed:
  • Richard J. Arend

    (Department of Business Administration, University of Southern Maine, P.O. Box 9300, Portland, ME 04104-9300, USA)

Abstract

We provoke. In this conceptual piece, we challenge the value of two dominant models of the entrepreneurial process that have existed over the past two decades—the creativity school and the logic of effectuation. We point out their weaknesses and their unfulfilled promises, and we argue for the field to move on forward with different ideas. We identify the lessons our field should learn so as to minimize the possibility of potentially detrimental model dominance in the future. We then outline three alternative approaches to modeling entrepreneurial decision-making that suggest further skills and policies required in improve the entrepreneurial process.

Suggested Citation

  • Richard J. Arend, 2020. "Getting Nothing from Something: Unfulfilled Promises of Current Dominant Approaches to Entrepreneurial Decision-Making," Administrative Sciences, MDPI, vol. 10(3), pages 1-22, August.
    • Handle: RePEc:gam:jadmsc:v:10:y:2020:i:3:p:61-:d:401651
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/10/3/61/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/10/3/61/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Sharon A. Alvarez & Jay B. Barney & Philip Anderson, 2013. "Forming and Exploiting Opportunities: The Implications of Discovery and Creation Processes for Entrepreneurial and Organizational Research," Organization Science, INFORMS, vol. 24(1), pages 301-317, February.
    3. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
    4. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
    5. Chandler, Gaylen N. & DeTienne, Dawn R. & McKelvie, Alexander & Mumford, Troy V., 2011. "Causation and effectuation processes: A validation study," Journal of Business Venturing, Elsevier, vol. 26(3), pages 375-390, May.
    6. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    7. Abatecola, Gianpaolo, 2014. "Research in organizational evolution. What comes next?," European Management Journal, Elsevier, vol. 32(3), pages 434-443.
    8. Denis A. Grégoire & Naïma Cherchem, 2020. "A structured literature review and suggestions for future effectuation research," Small Business Economics, Springer, vol. 54(3), pages 621-639, March.
    9. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    10. Baron, Robert A., 2009. "Effectual versus predictive logics in entrepreneurial decision making: Differences between experts and novices: Does experience in starting new ventures change the way entrepreneurs think? Perhaps, bu," Journal of Business Venturing, Elsevier, vol. 24(4), pages 310-315, July.
    11. Kirsten Foss & Nicolai J. Foss, 2005. "Resources and transaction costs: how property rights economics furthers the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 541-553, June.
    12. Cristofaro, Matteo, 2020. "“I feel and think, therefore I am”: An Affect-Cognitive Theory of management decisions," European Management Journal, Elsevier, vol. 38(2), pages 344-355.
    13. Jay B. Barney, 1989. "Asset Stocks and Sustained Competitive Advantage: A Comment," Management Science, INFORMS, vol. 35(12), pages 1511-1513, December.
    14. Scott L. Newbert, 2007. "Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 121-146, February.
    15. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    16. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    17. John T. Perry & Gaylen N. Chandler & Gergana Markova, 2012. "Entrepreneurial Effectuation: A Review and Suggestions for Future Research," Entrepreneurship Theory and Practice, , vol. 36(4), pages 837-861, July.
    18. Yanto Chandra, 2017. "A time-based process model of international entrepreneurial opportunity evaluation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(4), pages 423-451, May.
    19. Abatecola, Gianpaolo & Breslin, Dermot & Kask, Johan, 2020. "Do organizations really co-evolve? Problematizing co-evolutionary change in management and organization studies," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    20. Davidsson, Per, 2015. "Entrepreneurial opportunities and the entrepreneurship nexus: A re-conceptualization," Journal of Business Venturing, Elsevier, vol. 30(5), pages 674-695.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matteo Cristofaro & Maria José Sousa & José Carlos Sanchéz-Garcia & Aron Larsson, 2021. "Contextualized Behavior for Improving Managerial and Entrepreneurial Decision-Making," Administrative Sciences, MDPI, vol. 11(1), pages 1-5, February.
    2. Mariano Puglisi & Vincenzo Fasone & Giulio Pedrini & Deborah Gervasi & Guglielmo Faldetta, 2022. "Using a dual system of reasoning in small businesses: Entrepreneurial decisions and subjective risk intelligence," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 529-553, June.
    3. Scazziota, Vanessa & Serra, Fernando & Sarkar, Soumodip & Guerrazzi, Luiz, 2023. "The antecedents of entrepreneurial action: A meta-synthesis on effectuation and bricolage," Journal of Business Research, Elsevier, vol. 155(PA).
    4. Arend, Richard J., 2023. "Opportunity on Mars? roving for theory in the re(a)d dust rather than beyond," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    5. Gianpaolo Abatecola & Matteo Cristofaro & Federico Giannetti & Johan Kask, 2022. "How can biases affect entrepreneurial decision making? toward a behavioral approach to unicorns," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 693-711, June.
    6. Adam Sulich & Letycja Sołoducho-Pelc & Marcos Ferasso, 2021. "Management Styles and Decision-Making: Pro-Ecological Strategy Approach," Sustainability, MDPI, vol. 13(4), pages 1-18, February.

    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. Mohamed Mansouri & Cheklekbire Malainine & Hayat Souti & Ikram Cadimi, 2022. "Dynamic capabilities, competitiveness and performance of small and medium-sized enterprises: a systematic literature review [Capacités dynamiques, compétitivité et performance des petites et moyenn," Post-Print hal-03794567, HAL.
    2. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    3. Richard J. Arend & Moren Lévesque, 2010. "Is the Resource-Based View a Practical Organizational Theory?," Organization Science, INFORMS, vol. 21(4), pages 913-930, August.
    4. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    5. João José M. Ferreira & Cristina I. Fernandes & Vanessa Ratten, 2016. "A co-citation bibliometric analysis of strategic management research," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(1), pages 1-32, October.
    6. Alfredo De Massis & Josip Kotlar & Mike Wright & Franz W. Kellermanns, 2018. "Sector-Based Entrepreneurial Capabilities and the Promise of Sector Studies in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 42(1), pages 3-23, January.
    7. Nicolaï Foss & Nils Stieglitz, 2012. "Modern Resource-based Theory(ies)," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 20, Edward Elgar Publishing.
    8. Lorino, Philippe & Mourey, Damien, 2013. "The experience of time in the inter-organizing inquiry: A present thickened by dialog and situations," Scandinavian Journal of Management, Elsevier, vol. 29(1), pages 48-62.
    9. Villasalero, Manuel, 2017. "A resource-based analysis of realized knowledge relatedness in diversified firms," Journal of Business Research, Elsevier, vol. 71(C), pages 114-124.
    10. Cristina Fernandes & João J. Ferreira & Mário L. Raposo & Cristina Estevão & Marta Peris-Ortiz & Carlos Rueda-Armengot, 2017. "The dynamic capabilities perspective of strategic management: a co-citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(1), pages 529-555, July.
    11. Kim, Jongwook & Mahoney, Joseph T., 2006. "How Property Rights Economics Furthers the Resource-Based View: Resources, Transaction Costs and Entrepreneurial Discovery," Working Papers 06-0100, University of Illinois at Urbana-Champaign, College of Business.
    12. de Vasconcellos, Silvio Luis & Garrido, Ivan Lapuente & Parente, Ronaldo Couto, 2019. "Organizational creativity as a crucial resource for building international business competence," International Business Review, Elsevier, vol. 28(3), pages 438-449.
    13. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    14. Marina SOLESVIK, 2018. "The Rise and Fall of the Resource-Based View: Paradigm Shift in Strategic Management Elite Theory and Development of the Methodology for Researching Economic Well-Being in Mass Society," Journal of New Economy, Ural State University of Economics, vol. 19(4), pages 5-18, August.
    15. Stephen X. Zhang & Elco Burg, 2020. "Advancing entrepreneurship as a design science: developing additional design principles for effectuation," Small Business Economics, Springer, vol. 55(3), pages 607-626, October.
    16. Abel D Alonso, 2019. "Resources, competitiveness, and socioeconomic development: The case of a South American emerging economy," Local Economy, London South Bank University, vol. 34(1), pages 68-87, February.
    17. Kim, Jongwook & Mahoney, Joseph T., 2005. "Appropriating Economic Rents from Resources: An Integrative Property Rights and Resource-Based Approach," Working Papers 05-0123, University of Illinois at Urbana-Champaign, College of Business.
    18. Calvo, Nuria & Monje-Amor, Ariadna & Villarreal, Oskar, 2022. "When your value proposition is to improve others' energy efficiency: Analyzing the internationalization dilemma of eco-innovations in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    19. Amanda Haarman & Marcus M. Larsen & Rebecca Namatovu, 2022. "Understanding the Firm in the Informal Economy: A Research Agenda," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 3005-3025, December.
    20. Kraaijenbrink, Jeroen & Spender, JC & Groen, Aard, 2009. "The resource-based view: A review and assessment of its critiques," MPRA Paper 21442, University Library of Munich, Germany.

    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:gam:jadmsc:v:10:y:2020:i:3:p:61-:d:401651. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.