A Theory of Entrepreneuring

36 Pages Posted: 17 Mar 2016

See all articles by Nathan Furr

Nathan Furr

INSEAD

Jackson A. Nickerson

Washington University in St. Louis - John M. Olin Business School

Robert Wuebker

University of Utah - David Eccles School of Business

Date Written: March 14, 2016

Abstract

This paper develops theory for the organization and governance of value-creating search. While there is broad agreement in both strategy and entrepreneurship that search strategies are deeply connected with value creation, surprisingly little research considers which strategies to design and enact, in which sequence, the tools to employ, or how to structure decision rights concerning those choices.

The extant work on value creating search in both entrepreneurship and strategy also tends to emphasize the context in which search occurs, with less attention paid to cognitive and psychological challenges associated with the process. Our approach suggests that corruption of the search process through psychological and cognitive bias is the critical factor that constrains and potentially severely limits entrepreneurial success.

Our main finding is a prediction of discriminative alignment between different types of search needs, which we represent as a taxonomy, and governance mechanisms that effectively counter search biases and reduce ex ante and ex post search costs.

Keywords: Entrepreneurship, Experimentation, Search, Governance, Problem-Solving Perspective

Suggested Citation

Furr, Nathan and Nickerson, Jackson A. and Wuebker, Robert Joseph, A Theory of Entrepreneuring (March 14, 2016). INSEAD Working Paper No. 2016/16/STR. Available at SSRN: https://ssrn.com/abstract=2747458 or http://dx.doi.org/10.2139/ssrn.2747458

Nathan Furr (Contact Author)

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Jackson A. Nickerson

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-6366 (Phone)
314-935-6359 (Fax)

Robert Joseph Wuebker

University of Utah - David Eccles School of Business ( email )

1645 East Campus Circle Drive
Salt Lake City, UT 84112-9304
United States

HOME PAGE: http://about.me/rwuebker

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