The entrepreneurial perceptions of strategy makers: Constructing an exploratory path in the pursuit of radical growth
For established firms, radical growth requires experimenting with new alternatives, which can test the boundaries of management's thinking. This study proposes that entrepreneurial perceptions of the strategic situation and market environment have a direct influence on corporate entrepreneurship (CE) strategy, which is strategy that supports new business development and renewal. The results indicate that strategy makers will pursue a more explorative CE strategy in situations framed as positive, less controllable and yet knowable, and in environments perceived as munificent and dynamic. Additionally, with explorative CE strategy comes a greater investment in radical growth (i.e., new lines of business). The paper concludes with a discussion of the study's implications in regards to the relationship between interpretation and strategy and the management of attention and meaning.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Varadarajan, Rajan, 2009. "Fortune at the bottom of the innovation pyramid: The strategic logic of incremental innovations," Business Horizons, Elsevier, vol. 52(1), pages 21-29.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
- Zeki Simsek & John F. Veiga & Michael H. Lubatkin, 2007. "The Impact of Managerial Environmental Perceptions on Corporate Entrepreneurship: Towards Understanding Discretionary Slack's Pivotal Role," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1398-1424, December.
- Doty, D. Harold & Bhattacharya, Mousumi & Wheatley, Kathleen K. & Sutcliffe, Kathleen M., 2006. "Divergence between informant and archival measures of the environment: Real differences, artifact, or perceptual error?," Journal of Business Research, Elsevier, vol. 59(2), pages 268-277, February.
- Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
- Yasemin Y. Kor & Joseph T. Mahoney & Steven C. Michael, 2007. "Resources, Capabilities and Entrepreneurial Perceptions," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1187-1212, November.
- Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
- Wu, Jianfeng & Shanley, Mark T., 2009. "Knowledge stock, exploration, and innovation: Research on the United States electromedical device industry," Journal of Business Research, Elsevier, vol. 62(4), pages 474-483, April.
- Neill, Stern & Rose, Gregory M., 2006. "The effect of strategic complexity on marketing strategy and organizational performance," Journal of Business Research, Elsevier, vol. 59(1), pages 1-10, January.
- Zahra, Shaker A., 1991. "Predictors and financial outcomes of corporate entrepreneurship: An exploratory study," Journal of Business Venturing, Elsevier, vol. 6(4), pages 259-285, July.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:65:y:2012:i:7:p:1003-1009. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.