IDEAS home Printed from https://ideas.repec.org/a/jfr/bmr111/v3y2014i1p18-30.html
   My bibliography  Save this article

A Theory of Entrepreneurial Opportunity Discovery, Knowledge Creation, and Decision-Making

Author

Listed:
  • Frederick A. Lins
  • Robert H. Doktor

Abstract

The philosophy and methodology of Bayesian statistics bring with it a ¡°style of reasoning¡± which may inform organizational researchers as they seek to conceptualize and model managerial decision-making processes. The style of reasoning of the Bayesian approach, in which posterior probabilities of the hypothesis are rigorously and continuously updated given new data, appears to closely model the researched observed decision behavior of a very important subset of managers- innovative entrepreneurs. That is, Bayesian reasoning may serve as a model of the cognitive processes undertaken by innovative entrepreneurs as they engage in knowledge creation through recombination of resources in response to new information from the environment (Schumpeter, 1934). Modeling disciplined intuitive implementation of Bayesian reasoning may assist researchers in building a cognitive theory of how and why innovative entrepreneurs are better at estimating the probabilities of success of newly recognized opportunities than the general public. Because innovative entrepreneurs are thought to play a very important role in the development of economic growth and productivity (Baumol, Sheshinski & Strom, 2007), a theory of their decision processes may assist organizational researchers devoted toward uncovering the here-to-fore poorly understood cognitive dynamics of the innovative entrepreneur, and may play a role in enhancing the efficacy of managerial decision behavior more generally.

Suggested Citation

  • Frederick A. Lins & Robert H. Doktor, 2014. "A Theory of Entrepreneurial Opportunity Discovery, Knowledge Creation, and Decision-Making," Business and Management Research, Business and Management Research, Sciedu Press, vol. 3(1), pages 18-30, March.
    • Handle: RePEc:jfr:bmr111:v:3:y:2014:i:1:p:18-30
    as

    Download full text from publisher

    File URL: http://www.sciedupress.com/journal/index.php/bmr/article/download/3929/2583
    Download Restriction: no
    File URL: http://www.sciedupress.com/journal/index.php/bmr/article/view/3929
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs & Attila Varga, 2008. "Entrepreneurship, Agglomeration and Technological Change," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 24, pages 341-352, Edward Elgar Publishing.
    2. Jeffery McMullen & Lawrence Plummer & Zoltan Acs, 2007. "What is an Entrepreneurial Opportunity?," Small Business Economics, Springer, vol. 28(4), pages 273-283, April.
    3. Zoltan Acs, 2008. "How is Entrepreneurship Good for Economic Growth?," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 21, pages 291-301, Edward Elgar Publishing.
    4. Patrick M. Kreiser & Louis D. Marino & K. Mark Weaver, 2002. "Assessing the Psychometric Properties of the Entrepreneurial Orientation Scale: A Multi-Country Analysis," Entrepreneurship Theory and Practice, , vol. 26(4), pages 71-93, July.
    5. Jeffrey G. Covin & Kimberly M. Green & Dennis P. Slevin, 2006. "Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship," Entrepreneurship Theory and Practice, , vol. 30(1), pages 57-81, January.
    6. Eytan Sheshinski & Robert J. Strom, 2007. "Introduction to Entrepreneurship, Innovation, and the Growth Mechanism of the Free-Enterprise Economies," Introductory Chapters, in: Eytan Sheshinski & Robert J. Strom & William J. Baumol (ed.),Entrepreneurship, Innovation, and the Growth Mechanism of the Free-Enterprise Economies, Princeton University Press.
    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. Santos, Gina & Marques, Carla Susana & Ferreira, João J.M., 2020. "Passion and perseverance as two new dimensions of an Individual Entrepreneurial Orientation scale," Journal of Business Research, Elsevier, vol. 112(C), pages 190-199.
    2. Torbjörn Ljungkvist & Jim Andersén, 2021. "A taxonomy of ecopreneurship in small manufacturing firms: A multidimensional cluster analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1374-1388, February.
    3. Tobias Kollmann & Andreas Kuckertz & Christoph Stöckmann & Patrick Krell, 2012. "Die Entrepreneurshipforschung in Deutschland, Österreich und der Schweiz. Eine Resonanzanalyse," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 60(1), pages 53-76.
    4. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    5. G. Lumpkin & Todd Moss & David Gras & Shoko Kato & Alejandro Amezcua, 2013. "Entrepreneurial processes in social contexts: how are they different, if at all?," Small Business Economics, Springer, vol. 40(3), pages 761-783, April.
    6. Jelica Rastoka & Saša Petković & Dragana Radicic, 2022. "Impact of Entrepreneurship on the Quality of Public Health Sector Institutions and Policies," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    7. Jonathan Levie & Erkko Autio, 2008. "A theoretical grounding and test of the GEM model," Small Business Economics, Springer, vol. 31(3), pages 235-263, October.
    8. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    9. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    10. Boudreaux, Christopher & Caudill, Steven, 2019. "Entrepreneurship, Institutions, and Economic Growth: Does the Level of Development Matter?," MPRA Paper 94244, University Library of Munich, Germany.
    11. Angulo-Guerrero, María J. & Pérez-Moreno, Salvador & Abad-Guerrero, Isabel M., 2017. "How economic freedom affects opportunity and necessity entrepreneurship in the OECD countries," Journal of Business Research, Elsevier, vol. 73(C), pages 30-37.
    12. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.
    13. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    14. Fredström, Ashkan & Peltonen, Juhana & Wincent, Joakim, 2021. "A country-level institutional perspective on entrepreneurship productivity: The effects of informal economy and regulation," Journal of Business Venturing, Elsevier, vol. 36(5).
    15. R. Lamadrid & A. Heene & X. Gellynck, 2008. "Rewiring Business Firms through an Entrepreneurial-Oriented Strategy Making," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/499, Ghent University, Faculty of Economics and Business Administration.
    16. García-Villaverde, Pedro M. & Rodrigo-Alarcón, Job & Parra-Requena, Gloria & Ruiz-Ortega, María José, 2018. "Technological dynamism and entrepreneurial orientation: The heterogeneous effects of social capital," Journal of Business Research, Elsevier, vol. 83(C), pages 51-64.
    17. Fang, Hanqing & Chrisman, James J. & Memili, Esra & Wang, Minglin, 2020. "Foreign venture presence and domestic entrepreneurship: A macro level study," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 68(C).
    18. Muhammad Shahid & Shafaq Chaudhry & Muhammad Bilal & Hina Amber & Shoaib Aslam & Shumaila Malik & Khuram Shahzad, 2022. "The Link Between Team Identification, Entrepreneurial Orientation, and Innovative Work Behavior and Its Dimensions in the Context of Pakistan," SAGE Open, , vol. 12(1), pages 21582440221, March.
    19. Danny Miller, 2011. "Miller (1983) Revisited: A Reflection on EO Research and Some Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 35(5), pages 873-894, September.
    20. Yaron Zelekha, 2013. "The Effect of Immigration on Entrepreneurship," Kyklos, Wiley Blackwell, vol. 66(3), pages 438-465, August.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    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:jfr:bmr111:v:3:y:2014:i:1:p:18-30. 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: Simon Lee (email available below). General contact details of provider: http://bmr.sciedupress.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.