An intersubjective perspective on entrepreneurial decision making : a computer simulation study on the implications of networks and interactions for effectuation

Both practitioners and scientists regard entrepreneurship as an important driver of product and market innovation. Researchers have identified numerous strategies employed by entrepreneurs to successfully introduce new products and services in new markets. Most strategies employ prediction of future market characteristics as a key ingredient. “The business plan” has become a ubiquitous buzzword for entrepreneurial practitioners and scientists alike. In 2001, effectuation was presented as a radically different approach to entrepreneurship designed especially for highly uncertain environments. Derived from the study of expert serial entrepreneurs, effectuation focuses on controlling market outcomes rather than predicting them. This thesis investigates the implications of networks and interactions for effectuation from an intersubjective perspective. Using computer simulation, it reveals the importance of docile and persistent market participants, challenges classic entrepreneurial assumptions regarding network position and shape, and reveals docility as a precursor for successful entrepreneurship in highly complex environments