The uncertainty characterizing nascent markets makes it difficult for entrepreneurs to successfully make a focused commitment to a business model at the outset of the venture.
A first alternative approach referred to in the literature is simply to wait. By acting later rather than now, entrepreneurs delay commitment until information is available. A second approach is trial and error. In this approach, commitment to key aspects of the business model is delayed, and conditional to the successful completion of trials designed to acquire information. A third approach observes, by contrast, that successful entrepreneurs pursue commitments actively, but these are made with stakeholders.
Hence the concept of commitment seems central to the management of uncertainty. However, through the different approaches they highlight, scholars take opposite views on the role that it should play. A reason for this is that researchers know very little about entrepreneurial commitments. In this paper, we study how entrepreneurial commitments with stakeholders enable entrepreneurs to reduce uncertainty in nascent markets.
"THE ROLE OF ENTREPRENEURIAL COMMITMENT IN THE MANAGEMENT OF UNCERTAINTY IN NASCENT MARKETS: THE CASE OF NEW TECHNOLOGY VENTURES (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 32
, Article 16.
Available at: http://digitalknowledge.babson.edu/fer/vol32/iss6/16