MCMULLEN SHEPHERD Entrepreneurial Act - 13331 Words

à ® ½ Academy of Management Review 2006, Vol. 31, No. 1, 132–152. ENTREPRENEURIAL ACTION AND THE ROLE OF UNCERTAINTY IN THE THEORY OF THE ENTREPRENEUR JEFFERY S. MCMULLEN Baylor University DEAN A. SHEPHERD Indiana University By considering the amount of uncertainty perceived and the willingness to bear uncertainty concomitantly, we provide a more complete conceptual model of entrepreneurial action that allows for examination of entrepreneurial action at the individual level of analysis while remaining consistent with a rich legacy of system-level theories of the entrepreneur. Our model not only exposes limitations of existing theories of entrepreneurial action but also contributes to a deeper understanding of important conceptual issues, such†¦show more content†¦However, the role this uncertainty plays in preventing entrepreneurial action has remained a matter of debate. As a result, two research streams have emerged, each inspired by alternative conceptualizations of uncertainty. The first stream focuses on the amount of uncertainty perceived and frequently discriminates those who decide to act entrepreneurially from those who do not as a matter of differences in knowledge (e.g., Busenitz, 1996; Gaglio Katz, 2001; Kaish Gilad, 1991; Kirzner, 1979). Thus, the amount of uncertainty is considered to be the barrier between prospective entrepreneurs and entrepreneurial action. The second stream highlights the willingness to bear uncertainty and typically proposes that those who decide to act entrepreneurially are distinguishable from those who do not owing to differences in motivation, attitude, or risk propensity (e.g., Douglas Shepherd, 2000; Knight, 1921; Schumpeter, 1934). In this scenario, an unwillingness to bear uncertainty is deemed responsible for preventing prospective entrepreneurs from engaging in entrepreneurial action. Because an individual must ultimately act to become an entrepreneur, and because action involves knowledge and motivation (Higgins Kruglanski, 2000), we propose that each stream merely emphasizes a different aspect of the uncertainty experienced in the decision to act entrepreneurially.Show MoreRelatedIndividual Level And Systemic Level Of Opportunity Recognition1511 Words   |  7 Pagesentering into new markets. Hence, it is vital for entrepreneurs to engage in opportunities that they have identified. The first form of the theory is system level approach, which is essentially involved in how the economic system operates (McMullen Shepherd, 2006). For this theory, economic conditions such as the stability of macroeconomic conditions and level of economic growth, income inequality, and employment might have an impact on the type of opportunities that will be available. For exampleRead MoreMarket-Oriented Approaches to Firms2515 Words   |  10 Pagesknowledge spans how knowledge is generated, communicated, analyzed and integrated to strengthen competitive standing (Caleiro, 2008). In more recent years, flattening organizations, incorporating specialized teams, and appointing middle managers who act as liaisons within the organizational hierarch y has helped many companies increase and expedite knowledge sharing (Dew et.al, 2004). This has also shifted power to employees who have a greater voice and role in the overall outcomes of the organizations