05 Role of Action & Action Theory Process Model

behavioral patterns of innovative entrepreneurs

1. Questioning frequently, challenging the status quo

2. Observing the world around, everyday experiences to find new ideas

3. Experimenting with hypothesis-testing and an open mindset

4. Idea Networking, testing ideas with a network of individuals, diverse in background and perspective

role of action in entrepreneurship

• catalyst for associational thinking

• change the status quo

• less susceptible to status quo bias

• innovative breakthroughs often happen at the intersection of disciplines and fields

model of entrepreneurial opportunity recognition

characteristics personal initiative (PI)

• self-starting (starting from scratch)

• proactive (future-oriented)

• overcoming barriers (persistent)

firm performance is dependent on…

pre- and post-entry learning

action theory process model antecedents

antecedents and outcomes of actions:

• cognition (e.g., human capital, knowledge, cognitive biases)

• motivation (e.g., self-efficiany, passion)

• emotion (e.g., positive/negative affect, fear of failure)

action theory process model action sequence/mediators

• goal setting → information seeking → action planning → execution/monitoring/feedback → goal setting

• function as mediators, as they transmit the antecedents

action theory process model performance outcomes in the prelaunch phase

• business ideas

• business opportunity identification

• innovations

action theory process model performance outcomes in the launch phase

• business oppportunity development

• innovation

• resources

• organization structure

action theory process model performance outcomes in the postlaunch phase

• business opportunity development

• innovations

• growth

• sales

• survival

action theory process model (overall)

personal initiative throughout the action theory process model: goal setting

• self-starting: active, self-set goal which implies an innovative approach, introduce something new

• proactive: anticipate future opportunities/problems, convert to a goal, set long-term goals

• overcoming barriers: protect goals, continue wokring on goals when frustrated or taxed

personal initiative throughout the action theory process model: information seeking

• self-starting: active search e.g., exploration, active scanning of environment, look actively fo information use creativity techniques, exercise “core techniques” to create/identify opportunities

• pro-active: consider potential future problems before they occur, develop knowledge on alternative routes of action

• overcoming barriers: maintain search in spite of complexity and negative emotions, look for information difficult to obtain

personal initiative throughout the action theory process model: planning

• self-starting: avtive plan, execute the plan immediately yourself without having to wait for anything

• proactive: back-up plans, have action plans for opportunities/problems, long-range plans

• overcoming barriers: return to plan quickly when disturbed or distracted, avoid distraction

personal initiative throughout the action theory process model: monitoring/feedback

• self-starting: self-developed feedback, active search for feedback

• proactive: develop presignals for potential problems/opportunities, actively gather (negative) feedback

• overcoming barriers: protect feedback search, do products meet future needs?