IDEAS home Printed from https://ideas.repec.org/a/eee/jobuve/v4y2015icp30-37.html
   My bibliography  Save this article

Entrepreneurial expertise and the use of control

Author

Listed:
  • Dew, Nicholas
  • Read, Stuart
  • Sarasvathy, Saras D.
  • Wiltbank, Robert

Abstract

Significant evidence has accumulated describing the importance of expertise. As this knowledge is extended, it is critical to understand when expertise matters and how. We unpack expertise in entrepreneurial decision making by presenting 412 founder/entrepreneur subjects with a unique tool involving four scenarios so we can measure an element of theoretical relevance to expertise in the entrepreneurial domain, efficacy at applying control and prediction strategies to situations which vary in environmental predictability and controllability. Results show that entrepreneurial expertise yields significant decision-making improvements in the situational use of control strategies – those strategies conceptually associated with uncertain new ventures, products and markets.

Suggested Citation

  • Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2015. "Entrepreneurial expertise and the use of control," Journal of Business Venturing Insights, Elsevier, vol. 4(C), pages 30-37.
    • Handle: RePEc:eee:jobuve:v:4:y:2015:i:c:p:30-37
    DOI: 10.1016/j.jbvi.2015.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2352673415300056
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbvi.2015.09.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J. Robert Baum & Stefan Wally, 2003. "Strategic decision speed and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(11), pages 1107-1129, November.
    2. Fischer, Eileen & Reuber, A. Rebecca, 2011. "Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?," Journal of Business Venturing, Elsevier, vol. 26(1), pages 1-18, January.
    3. Jonas Gabrielsson & Diamanto Politis, 2011. "Career motives and entrepreneurial decision-making: examining preferences for causal and effectual logics in the early stage of new ventures," Small Business Economics, Springer, vol. 36(3), pages 281-298, April.
    4. Wiltbank, Robert & Read, Stuart & Dew, Nicholas & Sarasvathy, Saras D., 2009. "Prediction and control under uncertainty: Outcomes in angel investing," Journal of Business Venturing, Elsevier, vol. 24(2), pages 116-133, March.
    5. Jerker Denrell & Christina Fang, 2010. "Predicting the Next Big Thing: Success as a Signal of Poor Judgment," Management Science, INFORMS, vol. 56(10), pages 1653-1667, October.
    6. Robert A. Baron & Michael D. Ensley, 2006. "Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs," Management Science, INFORMS, vol. 52(9), pages 1331-1344, September.
    7. Haynie, J. Michael & Shepherd, Dean & Mosakowski, Elaine & Earley, P. Christopher, 2010. "A situated metacognitive model of the entrepreneurial mindset," Journal of Business Venturing, Elsevier, vol. 25(2), pages 217-229, March.
    8. Gary Klein, 2009. "Streetlights and Shadows: Searching for the Keys to Adaptive Decision Making," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013398, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juan Camilo Serna-Zuluaga & David Juárez-Varón & Ana Mengual-Recuerda & Ana Medina-López, 2024. "Analysis of the influence of emotions on the decision-making of entrepreneurs using neurotechnologies," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 2169-2186, September.
    2. Willem Smit, 2023. "Top Manager Heuristics Under Knightian Uncertainty: Control Versus Prediction and the Moderating Impact of Framing," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1302-1340, July.
    3. Sebastian Markus Szambelan & Yi Dragon Jiang, 2020. "Effectual control orientation and innovation performance: clarifying implications in the corporate context," Small Business Economics, Springer, vol. 54(3), pages 865-882, March.
    4. Magdalena Markowska & Dietmar Grichnik & Jan Brinckmann & Diana Kapsa, 2019. "Strategic orientations of nascent entrepreneurs: antecedents of prediction and risk orientation," Small Business Economics, Springer, vol. 53(4), pages 859-878, December.
    5. Richard A. Martina, 2020. "Toward a theory of affordable loss," Small Business Economics, Springer, vol. 54(3), pages 751-774, March.
    6. Szambelan, Sebastian & Jiang, Yi & Mauer, René, 2020. "Breaking through innovation barriers: Linking effectuation orientation to innovation performance," European Management Journal, Elsevier, vol. 38(3), pages 425-434.
    7. Paul Ouma & James Kilika, 2018. "Innovation Strategies, First Mover Advantage and Performance in the Context of the Microfinance Sector: A Review of Literature," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(7), pages 195-195, June.
    8. Bi, Qingqing & Boh, Wai Fong & Christopoulos, Georgios, 2021. "Trust, fast and slow: A comparison study of the trust behaviors of entrepreneurs and non-entrepreneurs," Journal of Business Venturing, Elsevier, vol. 36(6).
    9. Stroe, Silvia & Parida, Vinit & Wincent, Joakim, 2018. "Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy," Journal of Business Research, Elsevier, vol. 89(C), pages 265-272.
    10. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.

    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. Koller, Sonia & Stephan, Ute & Ahmetoglu, Gorkan, 2022. "Ecological rationality and entrepreneurship: How entrepreneurs fit decision logics to decision content and structure," Journal of Business Venturing, Elsevier, vol. 37(4).
    2. Gry Agnete Alsos & Tommy Høyvarde Clausen & René Mauer & Stuart Read & Saras D. Sarasvathy, 2020. "Effectual exchange: from entrepreneurship to the disciplines and beyond," Small Business Economics, Springer, vol. 54(3), pages 605-619, March.
    3. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).
    4. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    5. Sara Sassetti & Giacomo Marzi & Vincenzo Cavaliere & Cristiano Ciappei, 2018. "Entrepreneurial cognition and socially situated approach: a systematic and bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1675-1718, September.
    6. Magdalena Markowska & Dietmar Grichnik & Jan Brinckmann & Diana Kapsa, 2019. "Strategic orientations of nascent entrepreneurs: antecedents of prediction and risk orientation," Small Business Economics, Springer, vol. 53(4), pages 859-878, December.
    7. Margot Racat & Antonin Ricard & René Mauer, 2024. "Effectuation and causation models: an integrative theoretical framework," Small Business Economics, Springer, vol. 62(3), pages 879-893, March.
    8. Anastasiia Laskovaia & Galina Shirokova & Michael H. Morris, 2017. "National culture, effectuation, and new venture performance: global evidence from student entrepreneurs," Small Business Economics, Springer, vol. 49(3), pages 687-709, October.
    9. Sylvia Hubner & Fabian Most & Jochen Wirtz & Christine Auer, 2022. "Narratives in entrepreneurial ecosystems: drivers of effectuation versus causation," Small Business Economics, Springer, vol. 59(1), pages 211-242, June.
    10. Jenny María Ruiz-Jiménez & Matilde Ruiz-Arroyo & María Mar Fuentes-Fuentes, 2021. "The impact of effectuation, causation, and resources on new venture performance: novice versus expert entrepreneurs," Small Business Economics, Springer, vol. 57(4), pages 1761-1781, December.
    11. Mack, Elizabeth A. & Marie-Pierre, Lisa & Redican, Kyle, 2017. "Entrepreneurs’ use of internet and social media applications," Telecommunications Policy, Elsevier, vol. 41(2), pages 120-139.
    12. Hsu, Ryan Shuwei & Chuang, Aichia & Wang, An-Chih, 2021. "Business founders' work design and new venture development," Journal of Business Venturing, Elsevier, vol. 36(1).
    13. Frederiks, Arjan J. & Englis, Basil G. & Ehrenhard, Michel L. & Groen, Aard J., 2019. "Entrepreneurial cognition and the quality of new venture ideas: An experimental approach to comparing future-oriented cognitive processes," Journal of Business Venturing, Elsevier, vol. 34(2), pages 327-347.
    14. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    15. Cheryl R. Mitteness & Rich DeJordy & Manju K. Ahuja & Richard Sudek, 2016. "Extending the Role of Similarity Attraction in Friendship and Advice Networks in Angel Groups," Entrepreneurship Theory and Practice, , vol. 40(3), pages 627-655, May.
    16. Domurath, Anne & Patzelt, Holger & Liebl, Andreas, 2020. "Does negative feedback impact new ventures' organizational identity? The role of founding teams' human capital and feedback source," Journal of Business Venturing, Elsevier, vol. 35(3).
    17. Masoud Karami & Ben Wooliscroft & Lisa McNeill, 2020. "Effectuation and internationalisation: a review and agenda for future research," Small Business Economics, Springer, vol. 55(3), pages 777-811, October.
    18. Saras Sarasvathy & K. Kumar & Jeffrey G. York & Suresh Bhagavatula, 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities," Entrepreneurship Theory and Practice, , vol. 38(1), pages 71-93, January.
    19. Yanxia Li & Bo Zou & Feng Guo & Jinyu Guo, 2022. "Academic entrepreneurs’ effectuation logic, role innovation, and academic entrepreneurship performance: an empirical study," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 49-72, March.
    20. Tobias Frese & Ingmar Geiger & Florian Dost, 2020. "An empirical investigation of determinants of effectual and causal decision logics in online and high-tech start-up firms," Small Business Economics, Springer, vol. 54(3), pages 641-664, March.

    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:eee:jobuve:v:4:y:2015:i:c:p:30-37. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-business-venturing-insights .

    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.