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The Creation Corridor: Environmental Load and Pre-Organization Information-Processing Ability

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  • Eric L Hansen
  • Kathleen R. Allen

Abstract

A model of the relationships between pre-organlzational Information processing and environmental load specifies an interaction effect on new organization creation. The model proposes that levels of Information-processing ability In pre-organlzational networks can be either superoptimal or suboptimal relative to the levels of environmental load encountered by intending entrepreneurs. Either condition will reduce the likelihood that the entrepreneurs’ Intentions will be realized. However, when an appropriate balance between Information-processing ability and environmental load Is achieved, the likelihood of new organization creation increases. Environmental load Is described in terms of information load and information diversity. Entrepreneurs’ information-processing ability is specified In terms of pre-organlzational size, interconnectivity, and frequency of communication.

Suggested Citation

  • Eric L Hansen & Kathleen R. Allen, 1992. "The Creation Corridor: Environmental Load and Pre-Organization Information-Processing Ability," Entrepreneurship Theory and Practice, , vol. 17(1), pages 57-65, October.
    • Handle: RePEc:sae:entthe:v:17:y:1992:i:1:p:57-65
    DOI: 10.1177/104225879201700107
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    Citations

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    Cited by:

    1. Pankaj C. Patel & Yoav Ganzach, 2019. "Returns to balance in cognitive skills for the self-employed: evidence from 18 countries," Small Business Economics, Springer, vol. 52(1), pages 89-109, January.
    2. Peters, Michael P. & Brush, Candida G., 1996. "Market information scanning activities and growth in new ventures: A comparison of service and manufacturing businesses," Journal of Business Research, Elsevier, vol. 36(1), pages 81-89, May.
    3. Verheul, I. & Thurik, A.R., 2000. "Start-Up Capital," ERIM Report Series Research in Management ERS-2000-07-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Eric L. Hansen, 1995. "Entrepreneurial Networks and New Organization Growth," Entrepreneurship Theory and Practice, , vol. 19(4), pages 7-19, July.
    5. Annelore Huyghe & Mirjam Knockaert & Evila Piva & Mike Wright, 2016. "Are researchers deliberately bypassing the technology transfer office? An analysis of TTO awareness," Small Business Economics, Springer, vol. 47(3), pages 589-607, October.
    6. Jintong Tang, 2010. "How entrepreneurs discover opportunities in China: An institutional view," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 461-479, September.
    7. Parida, Vinit & George, Nerine Mary & Wincent, Joakim, 2018. "Strategic diagnosis of information processing structures and commercialization in new ventures," Journal of Business Research, Elsevier, vol. 85(C), pages 83-90.
    8. Lowell W. Busenitz & Chung-Ming Lau, 1996. "A Cross-Cultural Cognitive Model of New Venture Creation," Entrepreneurship Theory and Practice, , vol. 20(4), pages 25-40, July.
    9. Julie M. Hite, 2005. "Evolutionary Processes and Paths of Relationally Embedded Network Ties in Emerging Entrepreneurial Firms," Entrepreneurship Theory and Practice, , vol. 29(1), pages 113-144, January.
    10. Ravindra K. Jain, 2011. "Entrepreneurial Competencies," Vision, , vol. 15(2), pages 127-152, June.

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