The frugal entrepreneur: A self-regulatory perspective of resourceful entrepreneurial behavior

Michaelis, Timothy L.; Carr, Jon C.; Scheaf, David J.; Pollack, Jeffrey M.

doi:10.1016/j.jbusvent.2019.105969

Cited by 83 publications

(75 citation statements)

References 78 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Overall, multiple questions remain unanswered with regards to how entrepreneurs can respond to the ongoing COVID-19 crisis. To provide insight here, in this Rapid Response contribution, we translate research insights from: (1) business planning (e.g., Brinckmann et al, 2010;Brinckmann and Kim, 2015), (2) frugality behavior (Michaelis et al, 2019), and (3) entrepreneurs' social support (Kim et al, 2008;Klyver et al, 2018). We integrate these complementary areas of research with the crisis response phases: in-crisis, post-crisis, and pre-crisis (Lettieri et al, 2009) to propose a guiding framework for entrepreneurial action under an exogenous shock.…”

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

“…Frugality is an individual disposition associated with entrepreneurs and defined as, “one’s general preference to (a) conserve resources and (b) apply an economic rationale in the acquisition of resources (i.e., assessing the opportunity cost of newly acquired resources)” ( Michaelis et al., 2019 , p. 1). The idea of frugality has persisted over time as a means to reduce consumption while simultaneously building wealth in periods of economic turmoil ( Michaelis, 2017 ).…”

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

“…In fact, research suggests quite the opposite, “… that frugality is not pure deprivation but reflects short-term sacrifices in buying and using consumer goods to achieve idiosyncratic longer-term goals” ( Lastovicka et al., 1999 , p. 87). Recent research in the entrepreneurship literature suggests that the quality of being frugal predicts resourceful behaviors that are more often displayed by entrepreneurs (i.e., bricolage and effectuation) ( Michaelis et al., 2019 ). Similarly, frugality represents an individual orientation towards self-sufficiency ( Westacott, 2018 ), which aligns well with the concept of resource bootstrapping in entrepreneurial ventures ( Winborg and Landström, 2001 ).…”

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

See 2 more Smart Citations

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Giones

Brem

Pollack

et al. 2020

Journal of Business Venturing Insights

Self Cite

226

202

View full text Add to dashboard Cite

With regards to the ongoing impact of the COVID-19 pandemic in the domain of entrepreneurship, we offer research-based evidence and associated insights focused on three perspectives (i.e., business planning, frugality, and emotional support) regarding entrepreneurial action under an exogenous shock. Beyond the initial emergency response that countries around the world have taken, we argue that it is time to revise entrepreneurial action guidance in such a context. Our aim is to highlight ways that entrepreneurs can take action in light of the current COVID-19 pandemic. We position our insights to be relevant to both researchers and practitioners coping with an unprecedented situation that has catastrophic consequences both economically and socially. 1. Research context The COVID-19 outbreak began with the first reporting of an unknown virus in December 2019. Within months, the outbreak had become a global crisis affecting the world both economically and socially. By March 2020, the World Health Organization (WHO) had declared the COVID-19 outbreak a pandemic. The absence of short-term medical responses to the virus (either as vaccines or treatments) has necessitated the use of lockdowns and social distancing restrictions as government tools to reduce the transmission of the virus across the population. However, the lockdowns (including, in some cases, the introduction of border controls and/or travel bans) have triggered an economic activity disruption that does not resemble any such prior demand or supply crisis. Beyond the temporal freeze of activity, there are growing concerns about the long-term effects originating with the need for lockdown protocol extensions (increasing its total duration and impact), as well as on the need to sustain behavioral rules such as social distancing to reduce the risk of new contagions. While the crisis affects all types of economic activity, the public support programs tend to prioritize and protect established organizations. And, unfortunately, the priority for the public institutions seems to be to reduce the risk of bankruptcies and destruction of * Corresponding author.

show abstract

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

Section: Insights On Entrepreneurial Action Under An Exogenous Shock:mentioning

confidence: 99%

See 1 more Smart Citation

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Giones

Brem

Pollack

et al. 2020

Journal of Business Venturing Insights

Self Cite

226

202

View full text Add to dashboard Cite

show abstract

“…Frugality is sacrifice in denying a series of short-term purchasing whims and industriousness by resourcefully using what is already owned or available for use; all of this is in service of achieving longer term goals. " Similarly, Michaelis et al (2020) defined frugality as a consumer trait, which triggers a preference for conserving resources and applying economic rationality in their acquisition (i.e., assessing the opportunity cost of purchased goods and products). As a lifestyle trait or orientation, frugality has been positively linked with voluntary simplicity and anticonsumption, and negatively with materialism.…”

Section: Introductionmentioning

confidence: 99%

Determinants of Frugal Behavior: The Influences of Consciousness for Sustainable Consumption, Materialism, and the Consideration of Future Consequences

et al. 2020

View full text Add to dashboard Cite

The transition toward sustainability and the adjustment to climate change should involve the reduction of consumption behavior and the need to maintain social practices of frugality. This paper investigates the influences of consciousness for sustainable consumption (CSC), materialism, and the consideration of future consequences (CFC) on frugal behaviors. Four-hundred-and-forty-four individuals responded to an instrument investigating these variables. Results of a structural model revealed that materialism significantly and negatively influenced the three dimensions of CSC: economic, environmental, and social. The consideration of distant future consequences positively and significantly affected the economic dimension of CSC. Frugal behavior received significant and positive influences from the three CSC dimensions and from consideration of distant future consequences. The model explained 46% of variance in frugal behavior, revealing the importance of awareness of the consequences of resource consumption and the CFC has on promoting a moderate consumption of resources.

show abstract

“…In what follows, the intention of the possible interconnection between effectuation and frugal innovation is focused on. Michaelis et al [29] thought that a complementarity between frugal innovation and effectual logic is noticeable. Effectuation observes that entrepreneurs start with the means at their disposal, and not by considering those they could have.…”

Section: Linking Effectuation To Frugal Innovationmentioning

confidence: 99%

Linking Entrepreneurial Innovation to Effectual Logic

et al. 2021

View full text Add to dashboard Cite

The terms “innovation” and “effectuation” are frequently used but not in the same thought. In this order, publications linking innovation to effectuation are presented and discussed through a methodology based on the publish and perish tool. In the last two decades, effectuation has become an active criterion in entrepreneurship research. However, previous studies do not interconnect effectuation to the different innovation approaches. In order to overcome this gap, this paper focuses on studying innovation in an effectual context and linking different innovation approaches to effectual logic. Indeed, effectuation is a way of thinking that serves entrepreneurs in the processes of opportunity identification and new venture creation. Effectuation includes a set of decision-making principles expert entrepreneurs are observed to employ in situations of uncertainty (as defined in Society for Effectual Action). This article outlines the four most-studied innovation approaches from the date of their apparitions until January 2021: frugal innovation, disruptive innovation, lean start-up, and design thinking. In this context, effectuation as the essence of innovation must be clarified as a method that has similarities and differences with frugal and disruptive innovation, lean start-up, and design thinking. To validate the proposed theorical model, a bibliometrics tool, named “Harzing publish” or “perish”, is used. The main finding of this research affirms that the two most linked innovation approaches to effectuation are “lean start-up” and “design thinking”, compared to “frugal innovation” and “disruptive innovation”. In an entrepreneurial innovation context, design thinking and lean start-up are flexible tools that can stimulate and validate the effectual cycle.

show abstract

The frugal entrepreneur: A self-regulatory perspective of resourceful entrepreneurial behavior

Cited by 83 publications

References 78 publications

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Revising entrepreneurial action in response to exogenous shocks: Considering the COVID-19 pandemic

Determinants of Frugal Behavior: The Influences of Consciousness for Sustainable Consumption, Materialism, and the Consideration of Future Consequences

Linking Entrepreneurial Innovation to Effectual Logic

Contact Info

Product

Resources

About