Unpacking the uncertainty construct: Implications for entrepreneurial action

Uncertainty is central to entrepreneurship; however robust and generalizable findings that explain the conditions in which uncertainty may impede [or promote] entrepreneurial action remain elusive. We operationalize uncertainty as a multi-dimensional construct composed of state, effect, and response...

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Bibliographic Details
Published in:Journal of business venturing Vol. 26; no. 3; pp. 273 - 292
Main Authors: McKelvie, Alexander, Haynie, J. Michael, Gustavsson, Veronica
Format: Journal Article
Language:English
Published: New York Elsevier Inc 01.05.2011
Elsevier Science Publ
Elsevier
Elsevier Sequoia S.A
Series:Journal of Business Venturing
Subjects:
Conjoint analysis
Conjoint-Analyse
Correlation analysis
Decision making
Entrepreneurial action
Entrepreneurs
Entrepreneurship
Entscheidung unter Unsicherheit
Opportunity
Opportunity exploitation
Software industry
Studies
Uncertainty
Uncertainty Entrepreneurial action Opportunity exploitation Conjoint analysis
Unternehmensgründung
Uncertainty
Entrepreneurial action
Conjoint analysis
Opportunity exploitation
ISSN:0883-9026, 1873-2003
Online Access:Get full text
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Summary:Uncertainty is central to entrepreneurship; however robust and generalizable findings that explain the conditions in which uncertainty may impede [or promote] entrepreneurial action remain elusive. We operationalize uncertainty as a multi-dimensional construct composed of state, effect, and response types of uncertainty (Milliken, 1987) to investigate the relationship between uncertainty and entrepreneurial action. We decompose more than 2800 exploitation decision policies nested within a sample of new product decision-makers working in entrepreneurial software firms. We focus on the primary decision-maker's willingness to exploit a given opportunity in the face of varying combinations and manifestations of uncertainty and find that the type of uncertainty experienced influences the willingness to engage in entrepreneurial action differently. Further, we find that differences in how each type of uncertainty is manifested in the environment, the scale of exploitation (i.e. large vs. small), and the entrepreneur's expertise serve to moderate the relationship between uncertainty and action in counter-intuitive ways. We discuss the implications for both theory and practice.
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ISSN:0883-9026
1873-2003
DOI:10.1016/j.jbusvent.2009.10.004