Prediction- and Control-Based Strategies in Entrepreneurship: The Role of Information

Graciela Kuechle (), Béatrice Boulu-Reshef and Sean D. Carr
Additional contact information
Sean D. Carr: University of Virginia - University of Virginia

Post-Print from HAL

Abstract: Prediction- and control-based strategies are the two main hypotheses of how entrepreneurs deal with uncertainty in theories of entrepreneurship. Prediction-based strategies focus on estimating unknowns via sampling methods, whereas control-based strategies focus on shaping unknowns via proactive behavior. These strategies may lead to different propensities to undertake uncertain prospects, as they differ in terms of cognition and involvement. In an experimental test, we study the conditions under which prediction- and control-based strategies lead subjects to accept bets in ambiguous environments. Individuals who use control methods to mitigate uncertainty are more likely to accept the bet after a favorable outcome compared to those who use predictive methods. These results revert in the presence of unfavorable outcomes. We discuss the implications for entrepreneurship theory and practice.

Keywords: entrepreneurship; uncertainty; effectuation; experimental economics; theories of entrepreneurship (search for similar items in EconPapers)
Date: 2016-03-21
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Published in Strategic Entrepreneurship Journal, 2016, 10, pp.43-64. ⟨10.1002/sej⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Prediction- and Control-Based Strategies in Entrepreneurship: The Role of Information (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01296948

DOI: 10.1002/sej

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().