From venture idea to venture formation: The role of sensemaking, sensegiving and sense receiving

Abstract

This article explores the sensemaking processes entrepreneurs use when transitioning between venture ideas and venture formation. Adopting a sensemaking/sensegiving approach and utilising an interpretivist methodology, we use sensemaking to analyse the entrepreneurial journey of four diverse entrepreneurs. In so doing, we make three contributions: first, we locate the early stages of the entrepreneurial context as a primary site where sensemaking occurs as entrepreneurs deal with the differences between expectations and reality. Second, we show how sensemaking occurs when entrepreneurs build a causal map of the problem they wish to address and how social exchanges are crucial as entrepreneurs then refine that idea with other sensegivers. Finally, we extend scholarly understanding through explaining the ways in which sensemaking, sensegiving and sense receiving contribute to the decision of entrepreneurs to act and create a new venture.

Entrepreneurial thinking and action in opportunity development: A conceptual process model

“…However, at the same time, opportunity is certainly not the only concept entrepreneurs use; they also use the 'idea' concept (Goldstein, 2018; Newlands, 2019) -perhaps even more so than the opportunity concept. Moreover, the 'idea' concept figures prominently in extant entrepreneurship research (Bird, 1988;Brush et al, 2001;Hill and Birkinshaw, 2010;Hoyte et al, 2019). Thus, it is important to clarify the relationship between ideas and opportunities not only for research/theory-building purposes but also for bridging the gap between research and practice in entrepreneurship.…”

“…Importantly, entrepreneurial ideas have both raw and refined aspects (Dimov, 2007a(Dimov, , 2007bHill and Birkinshaw, 2010) whose roles we need to better understand in opportunity development. Indeed, recent research shows that the interaction between different types of ideas is important in opportunity development, such as when entrepreneurs start a venture (Hoyte et al, 2019).…”

“…This is achieved by developing a conceptual process model that clearly defines key entities of interest as well as processes underlying the potential movement in time between key entities. In this model, as called for in the literature, entrepreneurial ideas, entrepreneurial opportunities and venture offerings are separated (Davidsson, 2015(Davidsson, , 2017bDimov, 2011;Hoyte et al, 2019;Kitching and Rouse, 2017). Translation theory is used to understand how these entities (ideas, venture offering and opportunity) relate to each other over time.…”

“…Importantly, entrepreneurs receive feedback about the viability of the venture offering from social interaction (Dimov, 2007a(Dimov, , 2007b. This acts as an input for further opportunity development (Hoyte et al, 2019). Hence, whereas ostensive and performative ideas reside in the realm of the conceptual and entrepreneurial thinking, venture offerings reside in actual business worlds and entrepreneurial action.…”

“…Drawing on translation theory, the article clarifies the current conceptual entanglement between ideas, venture offerings and opportunities (Davidsson, 2015(Davidsson, , 2017a(Davidsson, , 2017b(Davidsson, , 2017cDimov, 2011Dimov, , 2018Ramoglou and Tsang, 2016Shane, 2012). Furthermore, applying this theory helps to illuminate the transition between these entities over time (Hoyte et al, 2019).…”