Identifying and understanding entrepreneurial decision-making logics in entrepreneurship education

Abstract

Purpose It is unclear how nascent entrepreneurs make decisions during the venture creation process. The purpose of this paper is to investigate decision-making logics and their transformation over time among student entrepreneurs who aim to create new business ventures in the higher education setting. Design/methodology/approach The study employs the mixed methods approach through the use of survey and observation data. The longitudinal survey data comprise three surveys collected via an internet-aided tool. The constructs of causation and effectuation are measured using previously tested scales (Chandler et al., 2011). Non-participant observation data were collected during the course, focussing on the venture creation processes of four different start-ups, and were analysed thematically. Findings The findings show three transformation patterns – doubts in how to proceed, unwillingness to proceed, and unsatisfactory team dynamics – that led individuals towards a coping decision-making logic in which no causation or effectuation is emphasised. The findings illustrate that, despite this stage of decision-making logic, the learning process continues: Even if no new business venture is launched, entrepreneurship education can still generate learning outcomes that improve students’ understanding of entrepreneurship as well as understanding of themselves as entrepreneurs. Originality/value This study brings the theories of causation and effectuation into the teaching of entrepreneurship. Of particular value to scholars is the fact that the study generates new understanding of the decision-making logics during new venture creation. Accordingly, this study sheds new light on the transformation and complementarity of the decision-making logic of an individual as new ventures emerge in an educational context reflecting the real-life start-up context.

The effectiveness of effectuation: a meta-analysis on contextual factors

“…Entrepreneurs are encouraged to apply effectual processes or practices because they are positively related to venture performance. As current entrepreneurial education has been promoting effectuation courses globally (Günzel-Jensen and Robinson, 2017; Ilonen et al , 2018), entrepreneurs can invest to increase their skills or knowledge of effectuation by taking entrepreneurial training programs. However, this study recommends entrepreneurs to pay attention to how the organizational, industrial and institutional contexts of their ventures influence the success of effectuation.…”

“…These mixed findings may be because the value creation of effectuation may suffer from entrepreneurs' cognitive and behavioral bias (Goel and Karri, 2006; Ye, 2016). Disentangling the puzzling effects is important, since effectuation has become a cornerstone in entrepreneurship education (Günzel-Jensen and Robinson, 2017; Ilonen et al , 2018) and is used in the design of both accelerators and incubators (Høvig et al , 2018). In addition, the contexts in which effectuation is beneficial are unclear from extant studies, although entrepreneurial research has highlighted the importance of contextual contingencies (Brinckmann et al , 2010; Stam et al , 2014; Thomassen et al , 2019).…”

The Mediating Effect of Emotion on Entrepreneurship Education and Business Opportunity Recognition

“…Some researchers stated that the factors causing graduates not to venture into entrepreneurship is because of the failure to assess the environment, the fear of failure, insufficient financial resources, and difficulties in identifying and exploiting opportunities (Cacciotti et al, 2016;Gielnik, Frese, Graf, & Kampschulte, 2012;Schmitt, Rosing, Zhang, & Leathherbee, 2017). This is parallel to Ilonen, Heinonen, and Stenholm (2018), that it is still unclear on how potential students who become entrepreneurs make decisions during the process of business creation. How about the emotional effects after the exposure to entrepreneurship education and entrepreneurship process, particularly in opportunity recognition?…”

Inclusivity of entrepreneurship education on entrepreneurial attitude among young community: evidence from India

“…Entrepreneurship plays an important role in the stabilization of economic activities in any country (Ahmed et al , 2017; Ilonen et al , 2018; Ratten, 2019). It is conventionally explained as initiating and running an enterprise, mainly beginning as a small enterprise, by utilizing the entrepreneurial skills and abilities and offering the products and services to the society based on innovative ideas, and the individuals who do all these activities are recognized as “entrepreneurs”.…”