Entrepreneuring as a puzzle: an attempt to its explanation with truncation of subjective probability distribution of prospects

Deligönül, Z. Șeyda; Hult, G. Tomas M.; Çavuşgil, S. Tamer

doi:10.1002/sej.44

Cited by 21 publications

(13 citation statements)

References 97 publications

(121 reference statements)

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“…A heterogeneous distribution of knowledge throughout society creates a context in which only certain individuals possessing unique stocks of knowledge will have the ability to recognize any given opportunity (Felin and Zenger 2009). Therefore, an alert entrepreneur's potential to recognize an opportunity forms through the idiosyncratic accumulation of knowledge and experiences, the cognitive schemas that allow the individual to detect patterns within this knowledge, and biases in truncating alternative prospects (Baron and Ensley 2006;Deligonul et al 2008). Upon detecting patterns within his/ her knowledge, the entrepreneur then undertakes a sensemaking process by discussing ideas with others regarding the attractiveness and feasibility of the opportunity (Felin and Zenger 2009;Wood and McKinley 2010).…”

Section: Opportunity Recognitionmentioning

confidence: 99%

Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory

Webb

Ireland

Hitt

et al. 2010

J. of the Acad. Mark. Sci.

182

152

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Marketing and entrepreneurship have long been recognized as two key responsibilities of the firm. Despite their tight integration in practice, marketing and entrepreneurship as domains of scholarly inquiry have largely progressed within their respective disciplinary boundaries with minimal cross-disciplinary fertilization. Furthermore, although firms increasingly undertake their marketing and entrepreneurial activities across diverse settings, academe has provided little insight into how changes in the institutional environment may substantially alter the processes and outcomes of these undertakings. Herein, we integrate research on marketing activities, the entrepreneurship process, and institutional theory in an effort to address this gap. We first discuss market orientation as enhancing a firm's opportunity recognition and innovation, whereas marketing mix decisions enhance opportunity exploitation. We then examine how entrepreneurship leads to innovation directed toward market orientation and marketing mix activities. Based on this foundation, we examine differences in marketing and entrepreneurship activities across institutional contexts.

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Section: Opportunity Recognitionmentioning

confidence: 99%

Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory

Webb

Ireland

Hitt

et al. 2010

J. of the Acad. Mark. Sci.

182

152

View full text Add to dashboard Cite

show abstract

“…Productive entrepreneurship occurs when the discovery of new attributes leads to an increase in net social benefits. This occurs when, for example, the marketer discovers new local tastes in a country that can be the basis for new products elsewhere (Deligonul et al 2008;Foss and Foss 2000).…”

Section: Tools Of Adaptabilitymentioning

confidence: 99%

Reflections on international marketing: destructive regeneration and multinational firms

Çavuşgil

2011

J. of the Acad. Mark. Sci.

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Constant in the evolution of the business enterprise has been its relentless search for competitive advantage. What has been phenomenally different about this quest is that it is, increasingly, a global landscape that defines the firm's opportunities and challenges. The global marketplace has always been dynamic and complex in terms of the changes it brings, but the last two decades have been exceptionally transformational. In terms of opportunities, firms pursuing international customers have never before faced such open markets, rise in discretionary income, and modern tools for accessing global markets. In terms of challenges, intense competition, complexity of managing multiple markets and coordinating marketing strategy, a host of risk elements, and the sheer difficulty of managing geographic, cultural, and political barriers are among the factors which impede the firm's success in global markets. Often, these changes come in the form of radical, transformative disruptions. This essay draws attention to major disruptions impacting international marketers and provides insights for appropriate firm response.

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“…Accordingly they overweight their chance of success, which lead them to begin a venture even if the probability of failure is high. Deligonul et al (2008) show that entrepreneurs consider a distribution of returns truncated when they evaluate their opportunity to create a new venture. They have the tendency to view the future performance of their venture taking for granted its survival, even if the rate of failure of new business is relatively high.…”

Section: The Weighting and Value Function Of Cptmentioning

confidence: 99%

The private equity premium puzzle: a behavioural finance approach

Hamelin¹,

Pfiffelmann²

2015

IJESB

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This paper adds new insights on the specificities of entrepreneurs, by focusing on the specificity of entrepreneurs' financial behaviour. First, we provide a detailed review of the literature on the private equity premium puzzle. This review underlines that, from a financial perspective, entrepreneurs differ from non-entrepreneurs because of the low, according to financial theory, risk-return trade-off of their asset portfolio. Our analysis of the literature shows that the higher risk tolerance of entrepreneurs is not sufficient to explain the private equity premium puzzle. Therefore, we apply behavioural finance in order to explain why entrepreneurs, who are aware of their high risk exposure, do still accept low returns. We show how cognitive biases can explain the private equity puzzle. Moreover, we highlight that this puzzle can be understood in light of cumulative prospect theory (Tversky and Kahneman, 1992) and behavioural portfolio theory (Shefrin and Statman, 2000) findings.

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Entrepreneuring as a puzzle: an attempt to its explanation with truncation of subjective probability distribution of prospects

Cited by 21 publications

References 97 publications

Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory

Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory

Reflections on international marketing: destructive regeneration and multinational firms

The private equity premium puzzle: a behavioural finance approach

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