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Toward Entrepreneurial Organizations: Meeting Ambiguity with Engagement

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  • Mariann Jelinek
  • Joseph A. Litterer

Abstract

Entrepreneurial activities fit poorly with traditional organizational approaches–-the rules, procedures and structure to delimit members’ response that seek to constrain behavior to a predetermined program. Nevertheless, in response to increasing competition, organizations have emerged to support broad entrepreneurial activity. Three interrelated elements appear necessary to support organizational entrepreneurship: pervasive sharing of managerial tasks and responsibilities, mindful alertness to anomalies, and ambiguity absorption by means of mutual support and information sharing. These elements render organizations more flexible, but also increase ambiguity, requiring further action incompatible with traditional organizational approaches. Entrepreneurship is not only inconsistent with traditional organizations, but with traditional organization theory. To effectively analyze entrepreneurial organizations requires a shift from the static, deterministic paradigm of traditional organization and theory to a cognitive paradigm which focuses on individual sensemaking and collective decision processes, and on the organizational context that shapes and influences them. This article outlines basic elements of an emerging cognitive paradigm to describe organizational entrepreneurship in theoretical and pragmatic terms, contrasting with traditional theory and practice. Benefits and hazards of entrepreneurial approaches are discussed. The Implications for research and management practice are also suggested.

Suggested Citation

  • Mariann Jelinek & Joseph A. Litterer, 1995. "Toward Entrepreneurial Organizations: Meeting Ambiguity with Engagement," Entrepreneurship Theory and Practice, , vol. 19(3), pages 137-168, April.
  • Handle: RePEc:sae:entthe:v:19:y:1995:i:3:p:137-168
    DOI: 10.1177/104225879501900309
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    3. Bhuian, Shahid N. & Menguc, Bulent & Bell, Simon J., 2005. "Just entrepreneurial enough: the moderating effect of entrepreneurship on the relationship between market orientation and performance," Journal of Business Research, Elsevier, vol. 58(1), pages 9-17, January.
    4. Gupta, Vipin & MacMillan, Ian C. & Surie, Gita, 2004. "Entrepreneurial leadership: developing and measuring a cross-cultural construct," Journal of Business Venturing, Elsevier, vol. 19(2), pages 241-260, March.
    5. Meek, William R. & Pacheco, Desirée F. & York, Jeffrey G., 2010. "The impact of social norms on entrepreneurial action: Evidence from the environmental entrepreneurship context," Journal of Business Venturing, Elsevier, vol. 25(5), pages 493-509, September.
    6. Dean A. Shepherd & Holger Patzelt & J. Michael Haynie, 2010. "Entrepreneurial Spirals: Deviation–Amplifying Loops of an Entrepreneurial Mindset and Organizational Culture," Entrepreneurship Theory and Practice, , vol. 34(1), pages 59-82, January.
    7. Jeewhan Yoon & George T Solomon, 2017. "A curvilinear relationship between entrepreneurial orientation and firm performance: The moderating role of employees’ psychological safety," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1139-1156, December.
    8. Gita Surie & Allan Ashley, 2008. "Integrating Pragmatism and Ethics in Entrepreneurial Leadership for Sustainable Value Creation," Journal of Business Ethics, Springer, vol. 81(1), pages 235-246, August.
    9. Patricia G. Greene & Candida G. Brush & Myra M. Hart, 1999. "The Corporate Venture Champion: A Resource-Based Approach to Role and Process," Entrepreneurship Theory and Practice, , vol. 23(3), pages 103-122, April.
    10. Doh, Kyungrok & Park, Sangwon & Kim, Dae-Young, 2017. "Antecedents and consequences of managerial behavior in agritourism," Tourism Management, Elsevier, vol. 61(C), pages 511-522.
    11. Gary Akehurst & José Comeche & Miguel-Angel Galindo, 2009. "Job satisfaction and commitment in the entrepreneurial SME," Small Business Economics, Springer, vol. 32(3), pages 277-289, March.
    12. Dean A. Shepherd & Norris F. Krueger, 2002. "An Intentions–Based Model of Entrepreneurial Teams’ Social Cognition," Entrepreneurship Theory and Practice, , vol. 27(2), pages 167-185, April.
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