Entrepreneurial strategies have different implications for different actions

April 03, 2008

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."
-end-
This study is published in the Strategic Entrepreneurship Journal. Media wishing to receive a PDF of this article may contact journalnews@bos.blackwellpublishing.net.

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.

Wiley-Blackwell was formed in February 2007 as a result of the acquisition of Blackwell Publishing Ltd. by John Wiley & Sons, Inc., and its merger with Wiley's Scientific, Technical, and Medical business. Together, the companies have created a global publishing business with deep strength in every major academic and professional field. Wiley-Blackwell publishes approximately 1,400 scholarly peer-reviewed journals and an extensive collection of books with global appeal. For more information on Wiley-Blackwell, please visit www.blackwellpublishing.com or http://interscience.wiley.com.

Wiley

Related Leadership Articles from Brightsurf:

Women in leadership positions face more sexual harassment
Power in the workplace does not stop women's exposure to sexual harassment.

Collective leadership groups maintain cohesion and act decisively
Members of collective leadership groups can maintain cohesion and act decisively when faced with a crisis, in spite of lacking the formal authority to do so, according to new research from Cass Business School.

Leadership's in the blood for tiny fish
Leadership during cooperation runs in the family for tiny fish called Trinidadian guppies, new research shows.

Rice study assesses college leadership training programs
A new study from psychologists at Rice University found they teach students about leadership, but additional measures are needed to evaluate how they impact students' real-life leadership skills.

These four values lessen the power of transformational leadership
Transformational leadership is considered one of the most effective ways to motivate and inspire employees.

Preventing toxic work environments through ethical leadership
Recently published research from SDSU management professor, Dr. Gabi Eissa and University of Wisconsin -- Eau Claire management professor, Dr.

Women, your inner circle may be key to gaining leadership roles
According to a new Notre Dame study, women who communicate regularly with a female-dominated inner circle are more likely to attain high-ranking leadership positions.

Feminine leadership traits: Nice but expendable frills?
The first study to examine tradeoffs in masculine versus feminine leadership traits reveals that stereotypically feminine traits -- like being tolerant and cooperative -- are viewed as desirable but ultimately superfluous add-ons.

Leadership and adaptive reserve are not associated with blood pressure control
Primary care leadership and practice resilience can strengthen organizational culture.

Values and gender shape young adults' entrepreneurial and leadership
Young adults who are driven by extrinsic rewards and money and less by a sense of security are more likely to want to become entrepreneurs and leaders, according to a recent study.

Read More: Leadership News and Leadership Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.