Entrepreneurial decision making in a microcosm

This study investigates when, how and why students use causation, effectuation and bricolage behaviours within a fundraising project that acted as a microcosm of the entrepreneur’s world. Such a pedagogical device reveals students use of different OM behaviours over the different stages of entrepreneurship. Although research has confirmed the use of these behaviours by entrepreneurs, how student entrepreneurs learn, and practice, them, remains underexplored. Causation is the predominant focus for university teaching, yet our data reveal that students adopted all three behaviours at different stages of the fundraising project as they responded to different contextual forces. Our findings suggest that opportunity management theories should take a more prominent role in the higher education entrepreneurship curriculum. Educators also need to provide a better means of facilitating students to learn about, and practice, a greater repertoire of opportunity management behaviours than is currently the case

The potential of trading activity income to fund third sector organisations operating in deprived areas

In the United Kingdom, as in other countries, Third Sector Organisations (TSOs) have been drawn towards income sources associated with trading activities (Teasdale, 2010), but many remain reliant on grant funding to support such activities (Chell, 2007). Using a multivariate analysis approach and data from the National Survey of Charities and Social Enterprises (NSCSE), it is found that trading activities are used relatively commonly in deprived areas. These organisations are also more likely to attempt to access public sector funds. This suggests policy-makers need to consider the impact of funding cuts on TSOs in the most deprived areas as TSOs are unlikely achieve their objectives without continuing support

Bricolage and firm performance: The moderating role of the environment

The behavioral theory of “entrepreneurial bricolage” attempts to understand what entrepreneurs do when faced with challenges and constraints. Most research about bricolage, defined as “making do by applying combinations of the resources at hand to new problems and opportunities” (Baker & Nelson 2005: 333), has been qualitative and inductive (Garud & Karnoe, 2003). Although this has created a small body of rich descriptions and interesting insights, little deductive theory has been developed and the relationship between bricolage and firm performance has not been systematically tested. In particular, prior research has suggested bricolage can have both beneficial and harmful effects. Ciborra’s (1996) study of Olivetti suggested that bricolage helped Olivetti to adapt, but simultaneously constrained firm effectiveness. Baker & Nelson (2005) suggested that bricolage may be harmful at very high levels, but more helpful if used judiciously. Other research suggests that firm environments may play an important role in shaping the outcomes of bricolage (Fisher, 2012). In this paper, we theorize and provide preliminary test of the bricolage-performance relationship and how it is affected by environmental dynamism

Venture creation and resource processes: using bricolage in sustainability ventures

Abstract not available

Effectuation and home-based online business entrepreneurs

This article explores effectual processes within home-based online businesses. Our empirical evidence provides a number of refinements to the concept of effectuation in this specific domain. First, the ubiquity of non-proprietary online trading platforms encourages the adoption of effectual approaches and removes the importance of forming proprietary strategic alliances and pre-commitments. Second, the notion of affordable loss - a central tenet of effectuation - should be extended beyond the notion of economic to social affordable loss, including loss of status and reputation and finally, home-based online businesses allow effectuation to be associated with low levels of entrepreneurial self-efficacy and experience

Local relationships matter! The impact of intellectual capital on entrepreneurial bricolage in African social entrepreneurs

Social entrepreneurs aim to create societal value while pursuing financial sustainability. However, they typically face several challenges and constraints when operating in resource-scarce environments. For this reason, social entrepreneurs typically engage in entrepreneurial bricolage, which is described as a process of using whatever tools and resources necessary that are immediately available. The behavioral theory of entrepreneurial bricolage attempts to understand what entrepreneurs do when faced with resource constraints. In this vital process, little empirical research has been conducted to investigate what drives social entrepreneurs to engage in such a way. This study aims to understand the antecedents of bricolage and, in particular, empirically test its link to intellectual capital. A survey was administered to 115 social entrepreneurs from Ghana and Sierra Leone. Data analysis shows that relational capital plays a crucial role in driving social entrepreneurs to engage with bricolage. In fact, the quality of local relationships and external support received (by suppliers, customers, and communities) is positively related and statistically significant with entrepreneurial bricolage. The results of this study not only extend the academic literature of bricolage in social entrepreneurship but also point out the focal role of relational capital as an enabler toward effectively operating in difficult conditions in developing African countries. We thus provide theoretical implications to the field of social entrepreneurship through the lens of intellectual capital and knowledge management. Practical implications are provided to social entrepreneurs operating in developing countries, such as government, NGOs, and agencies seeking to support entrepreneurship initiatives. Limitations and future research opportunities are suggested as well