A NEW APPROACH TO STRATEGIC PLANNING IN ENTREPRENEURIAL PROCESS: EFFECTUATION
DOI:
https://doi.org/10.20319/pijss.2015.12.0118Keywords:
Entrepreneurial Process, Strategic Planning, Intuition, EffectuativeAbstract
The development and implementation of strategy within entrepreneurial organizations require skills and the ability to perceive environmental shifts and adapt accordingly to ensure organizational growth and preserve the resources of the firm. The entrepreneur must have an intimate knowledge of the business plus intuition and resourcefulness to successfully transform the strategy from its initial intent to one that accommodates the external forces and responds to its environment. This study presents an exploratory approach to describe and compare the formal and informal strategic planning processes of entrepreneurial organizations particularly focusing on new ventures. This study provides a conceptual framework for strategic planning of new venture entrepreneurial process by an integrated perspective of formal and informal approach, which is named as "Effectuative Entrepreneurial Process Framework". The framework presented in the study includes causal sequence components of the formal entrepreneurial process while considering the intuitive and creative part of the entrepreneurial process having components of cognitive adaptability of entrepreneurs and inter-firm and intra-firm strategic flexibility.
References
Bourgeois, L.J. (1980), "Strategy and Environment: A Conceptual Integration," Academy of Management Review, 5(1), 25-39.
Bygrave, W. and Zacharakis, A. (2008), Entrepreneurship. John Wiley & Sons, Inc., U.S.
Burgelman, R.A. (1983), "Corporate Entrepreneurship and Strategic Management: Insights from a Process Study," Management Science, 29 (12), 1349-1364.
Churchill, N.C. (1992), Research Issues in Entrepreneurship. In D.L.Sexton and J.D.Kasarda, eds., The State of the Art Entrepreneurship. Boston, MA: PWS-KENT.
Combe, I.A. and Greenley, G.E. (2004), "Capabilities for Strategic Flexibility: A Cognitive Content Framework," European Journal of Marketing, 38 (11-12), 1456- 1480.
Cossette, P. (2001), "A Systematic Method to Articulate Strategic Vision: An Illustration with a Small Business Owner-Manager," The Journal of Enterprising Culture, Vol. 9, Issue 2, 173- 198.
Drucker, P. (1986), Landmarks of Tomorrow, a Report on the Post Modern World, Harper & Row Publishers, Newyork, US.
Eisenhardt, K.M. and Brown, S.L. (2002), "Competing on the Edge: Strategy as Structured Chaos," Long Range Planning, 31(5), 786-789.
Farjoun, M. (2002), "Towards an Organic Perspective on Strategy," Strategic Management Journal, 23, 561-594.
Guterman, E. (2002), "Toward a Dynamic Assessment of Reading: Applying Metacognitive Awareness Guiding to Reading Assessment Tasks," Journal of Research in Reading 25, no. 3, 283-298.
Haynie, M, Shepherd, D.A., Mosakowski, E. and Earley, C. (2009), "A Situated Metacognitive Model of the Entrepreneurial Mindset," Journal of Business Venturing, 19, 460-475.
Hisrich, R.D. and Peters, M.P. (1992), Entrepreneurship-Starting Developing and Managing a New Enterprise. Boston. M.A.: Irwin.
Hitt, M.A. (2000), "The New Frontier: Transformation of Management for the New Millenium," Organizational Dynamics 28, No. 3, 7-17.
Hisrich, R.D., Peters, M.P. and Shepherd, D.A. (2010), Entrepreneurship, Eighth Edition, McGraw Hill International Edition. New York.
Ireland, R.D., Hitt, M. A. and Sirmon, D. G. (2003), "A Model of Strategic Entrepreneurship: The Construct and Its Dimensions," Journal of Management, 29, 963-990.
Kotler, P. (2003), Marketing Management, 11th Edition, Upper Saddle Rive. NJ: Prentice Hall.
Kuemmerle, W. (2002), "A Test for the Fainthearted," Harvard Business Review, 122-127.
Lumpkin, G.T. and Dess, G.G. (2001), "Linking Two Dimensions of Entrepreneurial Orientation to Firm Performance: The Moderating Role of Environment and Industry Life Cycle," Journal of Business Venturing, 16, 429-451.
Mevarech, Z. R. and Kramarski, B. (2003), "The Effects of Metacognitive Training versus Worked-out Examples on Students' Mathematical Reasoning," British Journal of Educational Psychology 73, No. 4, 449-471.
Mintzberg, H. (1973), "Strategy Making in Three Modes," Californian Management Review, Vol. 56, No. 2, 49-53.
Mintzberg, H. (1987), "Crafting strategy," Harvard Business Review, 65(4), 66-75.
Mintzberg, H. (1994), "The fall and rise of business planning," Harvard Business Review, 72(1), 107-114.
Mintzberg, H. (1997), "Managing on the Edges," International Journal of Public SectorManagement 10(3), 131-153.
Porter, M. (1996), "What is strategy?," Harvard Business Review, 74(6), 61-78.
Read, S., Dew, N., Sarasvathy, S.D., Song, M. and Wiltbank, R. (2009), "Marketing Under Uncertainty: The Logic of an Effectual Approach,"Journal of Marketing, Vol. 73, 1-18.
Sarasvathy, S. and Simon, H. A. (2000), “Effectuation, Near-Decomposability and the Creation and Growth of Entrepreneurial Firms,” paper presented at the First Annual Research Policy Technology Entrepreneurship Conference, University of Maryland, May 19-20.
Sarasvathy, S. (2002), “Entrepreneurship as a Science of the Artificial,” Journal of Economic Psychology, 24 (2), 203-220.
Schoemaker, P.J.H. (1993), "Strategic Decisions in Organizations: Rational and Behavioural Views," Journal of Management Studies, Vol. 30, No. 1, 107-129.
Schumpeter, J.A (1934), The Theory of Economic Development. Cambridge MA: Harvard University Press.
Senge, P. M. (1990), The Fifth Discipline: The Art and Practice of the Learning, Organization Century Press, London.
Sharfman, M.P. and Dean, J. W. (1997), "Flexibility in Strategic Decision-making: Informational and Ideological Perspectives," Journal of Management Studies, Vol. 34, No. 2, 191-217.
Stacey, R.D. (1991), The Chaos Frontier, Butterworth-Heinemann, Oxford.
Simon, H. A. (1991), “Bounded Rationality and Organizational Learning,” Organization Science, 2 (1), 125-134.
Vargo, S. and Lusch, R. (2004), “Evolving to a New Dominant Logic for Marketing,” Journal of Marketing, 68, January, 1-17.
Venkataraman, N. (1997), The Distinctive Domain of Entrepreneurship Research: An Editor's Perspective. Advances in Entrepreneurship. J. Katz and R. Brockhaus. Greenwich, JAI Press. 3: 119-138.
Vesper K.H., (1988), "Entrepreneurial Academics, How can we tell when the field is getting somewhere?," Journal of Business Venturing, 3(1), 1-10.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2015 Authors
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
