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Search and execution: examining the entrepreneurial cognitions behind the lean startup model

Author

Listed:
  • Xiaoming Yang

    (University of Nebraska Omaha)

  • Sunny Li Sun

    (University of Massachusetts Lowell)

  • Xiangyang Zhao

    (Beijing Normal University)

Abstract

The lean startup model emerging from the Silicon Valley recently has become worldwide practice. In this model, search and execution are the two primary activities conducted by entrepreneurial firms. Search activities focus on learning and discovery, such as exploring new customer and market segments, while execution activities focus on implementing well-defined plans and scaling up. Effectuation and causation are two different cognitive approaches an entrepreneur might use to conduct strategic moves. We argue that entrepreneurial effectuation cognition is associated with more search behaviors and that entrepreneurial causation cognition is associated with more execution behaviors. We test these hypotheses in a survey of 160 firms and find evidence in support of our arguments.

Suggested Citation

  • Xiaoming Yang & Sunny Li Sun & Xiangyang Zhao, 2019. "Search and execution: examining the entrepreneurial cognitions behind the lean startup model," Small Business Economics, Springer, vol. 52(3), pages 667-679, March.
    • Handle: RePEc:kap:sbusec:v:52:y:2019:i:3:d:10.1007_s11187-017-9978-z
    DOI: 10.1007/s11187-017-9978-z
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    References listed on IDEAS

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    Cited by:

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    2. Sunny Li Sun & Weilei (Stone) Shi & David Ahlstrom & Li (Rachel) Tian, 2020. "Understanding institutions and entrepreneurship: The microfoundations lens and emerging economies," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 957-979, December.
    3. Tomás F. González-Cruz & Dolores Botella-Carrubi & C. M. Martínez-Fuentes, 2020. "The effect of firm complexity and founding team size on agile internal communication in startups," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1101-1121, September.
    4. Ghezzi, Antonio, 2020. "How Entrepreneurs make sense of Lean Startup Approaches: Business Models as cognitive lenses to generate fast and frugal Heuristics," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Ahsan, Mujtaba & Musteen, Martina, 2021. "International opportunity development on crowdfunding platforms: A spatial, temporal, and structural framework," International Business Review, Elsevier, vol. 30(6).
    6. Peng, Xue Bing & Liu, Yue Ling & Jiao, Qi Qi & Feng, Xiao Bin & Zheng, Bei, 2020. "The nonlinear effect of effectuation and causation on new venture performance: The moderating effect of environmental uncertainty," Journal of Business Research, Elsevier, vol. 117(C), pages 112-123.
    7. Chengbin, Wang & Hongbin, Wang & Min, Dai & Yongyan, Fang, 2022. "Lean Startup Approaches(LSAs): Convergence, Integration and Improvement," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    8. Jianxin Ge & Tong Li, 2019. "Entrepreneurial Resources, Complementary Assets, and Platform Sustainability," Sustainability, MDPI, vol. 11(16), pages 1-20, August.

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    More about this item

    Keywords

    Lean startup; Effectuation; Causation; Search; Execution;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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