Explanations for how entrepreneurs deal with uncertainty and develop their strategies can be found in two streams of literature: the entrepreneurial strategy literature and the entrepreneurial cognition literature. Recent research in these fields suggests that focusing on the individual level of the nascent entrepreneur and taking a cognition-based approach might be beneficial for understanding first-time strategy formation. Our study is concerned with one central question concerning first-time formation of a strategic mindset at the individual level. How does a strategic mindset come into existence at early stages of the entrepreneurial process? We analyze whether and how strategic mindsets come into existence focusing on three aspects: the extent of prediction orientation (Wiltbank et al., 2006; Sarasvathy, 2001), the extent to which the entrepreneur focuses on risk limitation as opposed to return maximization, i.e. the risk-return orientation (Sarasvathy et al., 1998; Sarasvathy, 2007; Dew et al., 2008; Sarasvathy, 2003), and the extent of strategic flexibility (Nicholls-Nixon, Cooper, 2000).
Grichnik, Dietmar; Brinckmann, Jan; and Kapsa, Diana
"STRATEGY FORMATION OF ENTREPRENEURIAL TEAMS: A LONGITUDINAL STUDY IN NASCENT VENTURES (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 29
, Article 8.
Available at: http://digitalknowledge.babson.edu/fer/vol29/iss13/8