Prediction and Control: An Agent-Based Simulation of the Entrepreneurial Problem Space
49 Pages Posted: 14 Apr 2017
Date Written: April 11, 2017
This study seeks to understand the boundary conditions and successful application of search processes in the entrepreneurial problem space. To this end, we employ an agent-based simulation approach to formally investigate the influence of environmental isotropy, unpredictability, and goal ambiguity on two distinct search processes, one prediction-based and one control-based. Specifically, we investigate the performance of effectuation as an example of non-predictive, control-based search and causation as an example of prediction-based search. Results enhance theory by revealing a more nuanced relationship between the environment and entrepreneurial search than previous conceptual and empirical work has suggested.
Keywords: Prediction, Control, Agent-Based Simulation, Entrepreneurial Problem Space, Effectuation
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