Architecture of Entrepreneurial Learning: Exploring the Link among Heuristics, Knowledge, and Action

Abstract

We extend existing theories of entrepreneurial learning and highlight the effects of heuristics under two different learning contexts: experiential learning and vicarious learning. Specifically, we argue that heuristics are consequential in explaining variations in learning. In some cases, heuristics can be highly adaptive and beneficial to the accumulation of knowledge. In others, they can distort judgments and bias learning. By considering linkages among heuristics, knowledge, and action, we seek to provide a more complete model of entrepreneurial learning that allows for examination of the influence of judgments on learning and to expose conditions that can benefit or limit effective action in an entrepreneurial setting.

Market Orientation and Entrepreneurial Success: Mediating Role of Entrepreneurial Learning Intensity

“…As an effect, it is found that entrepreneurial learning could improve business outcome (Shyh-Rong Fang et al 2014;Wang 2008). However, the characteristic of learning is rough and intense in entrepreneurial ventures; where entrepreneurs often rely on their limited knowledge and make decisions without conducting exhaustive analysis (Holcomb, Ireland, Holmes & Hitt 2009;Stokes & Blackburn 2002). That being said, entrepreneurial success depends on high intensity of learning, which has long been implied by Frese's concept of entrepreneur-in-action (2009).…”

“…Although MO and learning are synergistic in understanding business performance in marketing literature, entrepreneurship literature emphasizes more on intense and continuous learning in attaining entrepreneurial success (Cope 2003;Rae & Carswell 2001;Holcomb et al 2009). According to Cope (2003) entrepreneurs learn much from discontinuous experiences where they invest significantly in terms of mental and emotional commitment to learn new knowledge.…”

“…Intensity for learning occurs when there is a lack of knowledge by entrepreneurs. In that situation, entrepreneurs will rely on heuristic in making decision as to act on certain opportunities (Holcomb et al 2009). However, empirical work on entrepreneurial learning intensity with its antecedents and outcomes is needed (Brockman 2013).…”

“…Lastly, we developed item instruments for entrepreneurial learning intensity, as guided by the organizational learning and entrepreneurial learning literature (Holcomb, Ireland, Holmes & Hitt 2009;Levitt & March 1988). Entrepreneurial learning intensity is defi ned as the mental efforts to learn new knowledge from direct experiences by acquiring, organizing, and capitalizing the new knowledge into decisions in order to exploit or explore opportunities.…”

“…Entrepreneurial learning intensity is defi ned as the mental efforts to learn new knowledge from direct experiences by acquiring, organizing, and capitalizing the new knowledge into decisions in order to exploit or explore opportunities. A 6-item instrument was taken from Holcomb et al (2009) since they already assimilated all the major concerns of previous researchers in organizational learning literature. A sample items includes "I put a great deal to learn business knowledge from direct experience".…”