Entrepreneurial Strategies Have Different Implications for Different Actions
Columbus, OH – April 3, 2008 –
A new study published in the
Strategic Entrepreneurship
Journal illustrates the important implications that both Discovery
Theory and Creation Theory have on the effectiveness of a variety of
entrepreneurial actions within different contexts.
Discovery Theory is categorized by the idea that entrepreneurial
opportunities exist, independent of the perceptions of entrepreneurs, just
waiting to be discovered. In contrast, Creation Theory holds that these
opportunities are created by the actions of entrepreneurs.
Led by Sharon A. Alvarez and Jay B. Barney of the Fisher College of Business
at Ohio State University, researchers explored these theories of
entrepreneurship and their implications for the actions of entrepreneurs.
Both Discovery and Creation theory assume the goal of entrepreneurs is to
form and exploit opportunities. However, the theories often generate
different predictions about when specific actions will be more or less
effective in enabling entrepreneurs to form these opportunities.
Only when the theories are linked to specific actions can they have
repercussions. The study reviews the implications of discovery and creation
assumptions for seven actions, including leadership, decision making, human
resource practices, strategy, finance, marketing, and sustaining competitive
advantages.
When entrepreneurs operate in a discovery context, a variety of specific
actions are likely to be most effective. When they operate in a creation
context, a different set of entrepreneurial actions are likely to be most
effective.
For example, when exploring the entrepreneurial action of leadership, when
operating in a discovery context it would be best for the entrepreneur to
lead based on expertise and experience. However, if operating within a
creation context, it would be best to lead based on charisma.
“Future research in entrepreneurship will need to carefully examine the
context under which entrepreneurs are operating,” the authors conclude.
“Understanding the implications of these two theories for the effectiveness
of a wide variety of entrepreneurial actions is important.”
_________________________________________________________________
This study is published in the Strategic Entrepreneurship Journal.
Media wishing to receive a PDF of this article may contact
journalnews@bos.blackwellpublishing.net.
To view the abstract for this article, please
click here.
Sharon A. Alvarez, Ph.D., is affiliated with the Fisher College of Business
at The Ohio State University and can be reached for questions at
alvarez_42@cob.osu.edu.
An official journal of the Strategic Management Society,
Strategic Entrepreneurship
Journal publishes original work
recommended by a developmental, double-blind review process conducted by
peer scholars. The journal values contributions which lead to improved
practice of managing organizations as they deal with the entrepreneurial
process involving imagination, insight, invention, and innovation and the
inevitable changes and transformations that result and benefit society.
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