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COMPETITIVE ADVANTAGE THROUGH ENTREPRENEURIAL DECISION-BEHAVIOR: EFFECTUATION FOR FAST PROBLEM-SOLVING (SUMMARY)
Matthias Blauth René Mauer
Research on entrepreneurship has acknowledged the role of employee’s decision-behavior for creating competitive advantage through corporate entrepreneurship (Ireland et al., 2009). One source of competitive advantage is problem-solving speed, as it fosters the ability to develop and market innovative products in a timely manner (Atuahene-Gima and Wei, 2011). Problem-solving speed can be defined as the time needed to find, evaluate and implement an adequate solution to a particular problem (Atuahene-Gima and Li, 2004). In uncertain situations, traditional management methods based on causal logic come to their explanatory limits. Effectuation as logic of entrepreneurial decision-behavior delineates principles describing an alternative behavioral approach, focusing rather on control than on prediction (Sarasvathy, 2001). These principles are the starting point of venturing, the attitude towards risk, towards stakeholders and the attitude towards unexpected events. Building decisions on effectual logic in uncertain situations might explain the differences in problem-solving speed and thus uncover a novel source of competitive advantage.