Uncertain but able: Entrepreneurial self-efficacy and novices׳ use of expert decision-logic under uncertainty

Y. Engel, N.G. Dimitrova, S.N. Khapova, T. Elfring

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Entrepreneurs' initial strategy choices are made in the face of inherently uncertain and fundamentally unpredictable futures. Yet, unlike experts, novice entrepreneurs still tend to rely on predictions and forecasts as they move their ideas through t h e venture creation process. This study examines the role of entrepreneurial self-efficacy (ESE) and situational framing in mitigating t h e seemingly negative consequences of an "experience deficit" and promoting the use of effectuation - a non-predictive logic associated with entrepreneurial expertise. The results of a randomized experiment show that, in contrast to a control group and a l ow ESE group, novices who experienced an increase in ESE were more likely to use effectuation under uncertainty. This relationship was mediated by the framing of the situation as an opportunity.
LanguageEnglish
Pages12-17
JournalJournal of Business Venturing Insights
Volume1
Issue number2
DOIs
Publication statusPublished - 2014

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Experiments
Uncertainty
Logic
Self-efficacy
Effectuation
Entrepreneurs
Expertise
Randomized experiments
Venture creation
Prediction

Cite this

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abstract = "Entrepreneurs' initial strategy choices are made in the face of inherently uncertain and fundamentally unpredictable futures. Yet, unlike experts, novice entrepreneurs still tend to rely on predictions and forecasts as they move their ideas through t h e venture creation process. This study examines the role of entrepreneurial self-efficacy (ESE) and situational framing in mitigating t h e seemingly negative consequences of an {"}experience deficit{"} and promoting the use of effectuation - a non-predictive logic associated with entrepreneurial expertise. The results of a randomized experiment show that, in contrast to a control group and a l ow ESE group, novices who experienced an increase in ESE were more likely to use effectuation under uncertainty. This relationship was mediated by the framing of the situation as an opportunity.",
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Uncertain but able: Entrepreneurial self-efficacy and novices׳ use of expert decision-logic under uncertainty. / Engel, Y.; Dimitrova, N.G.; Khapova, S.N.; Elfring, T.

In: Journal of Business Venturing Insights, Vol. 1, No. 2, 2014, p. 12-17.

Research output: Contribution to JournalArticleAcademicpeer-review

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