Session 109

Current Research on Uncertainty and Entrepreneurship

Track K

Date: Wednesday, October 14, 2009


Time: 11:30 – 12:45


Room: Meeting Room 13

Session Chair:
Richard Reed, Cleveland State University

Title: In the Middle of Uncertainties: An Examination of the Emergence and Evolution of Social Enterprises


  • Dorothy Kirkman, University of Houston-Clear Lake

Abstract: This paper examines how uncertainties influenced the emergence and evolution of a revolutionary innovation – social enterprises (SEs). SEs introduce for-profit market strategies into social sector (Austin et al., 2006). I present two models to facilitate this discussion. The antecedence of social enterprise model (ASM) highlights the uncertainties that led some nonprofit organizations (NPOs) to seek a different way of doing things (Schumpeter, 1934) and draws attention to NPOs growing dependence on their environment for resources (Pfeffer and Salancik, 1978). The post-innovation model (PIM) describes the uncertainties that materialized when NPOs exploited SE opportunities. This discussion facilitates a robust understand of NPOs strategic response to uncertainty and provides a framework through which scholars may integrate strategy and nonprofit research.

Title: Managing Uncertainty Using Real Options and Goals That Investors Have: A Preliminary Analysis


  • Tandy Dilworth, University of Colorado-Boulder

Abstract: The business climate is fraught with uncertainty and uncertainty can be problematic in this environment because indiviuals are faced with decision problems that must be addressed in the near term, but that could have long-reaching effects for an organization. This research focuses on how uncertainty affects individuals and firms that manage multiple investments in startup firms in light of their goals. Real options theory has proved effective as a tool in helping firms manage uncertainty so I use this theoretical approach along with goal setting theory to uncover differential decision making in the private equity context. This study starts the conceptual process of shedding light on the question, how do goals affect the selection and management of real options for investors?

Title: Uncertainty and Risk as Determinants of New-Venture Strategies


  • Richard Reed, Cleveland State University
  • Susan Storrud-Barnes, Cleveland State University
  • Leonard Jessup, Washington State University

Abstract: Technological, economic, social, and political change has been increasing at an increasing rate, and with such change comes increased uncertainty. We argue that uncertainty is not the same as risk, which is generally thought of in terms of the downside. As the finance literature on options and the strategy literature on real-options explains, with uncertainty there also exists the potential for an upside. We draw on real-options thinking and on prospect theory to determine how uncertainty and risk affect entrepreneurial actions. Specifically, how do they affect the likelihood of undertaking new ventures, and what strategies are independent entrepreneurs and managers in established firms most likely to adopt—licensing, alliances, or new-venture development—under the contingencies of uncertainty and risk.

All Sessions in Track K...

Sun: 10:00 – 11:30
Session 254: Developing a Game Plan for Strategy Research on Social Entrepreneurship
Sun: 13:00 – 14:30
Session 253: Knowledge Spillovers and Strategic Entrepreneurship
Sun: 15:00 – 16:30
Session 252: Key Issues and Emerging Questions in Entrepreneurial Strategy Research
Sun: 16:30 – 17:30
Session 315: Entrepreneurship & Strategy, IG Meeting
Mon: 12:45 – 14:00
Session 102: Networks, Alliances and Entrepreneurship
Session 244: Entrepreneurship in Emerging and Transition Economies
Mon: 15:45 – 17:00
Session 100: Founders, Founding Conditions and Human Capital
Session 249: Examining Entrepreneurial Phenomena at Multiple Levels
Mon: 17:15 – 18:30
Session 101: Opportunities & Founders
Session 248: Issues in Governance and Technology Commercialization in New Ventures
Tue: 10:00 – 11:15
Session 107: Current Thoughts on Entrepreneurship in Emerging and Transition Economies
Session 111: Opportunties, Uncertainty & Innovation in Entrepreneurial Ventures
Tue: 11:30 – 12:45
Session 106: Current Thoughts on Signaling and Venture Capital
Tue: 14:30 – 15:45
Session 108: The Impact of Institutions, Regions and Countries on Entrepreneurial Ventures
Wed: 10:00 – 11:15
Session 105: Current Research on Serial Entrepreneurs and Market Makers
Session 112: The Impacts of Diversification on Entrepreneurial Ventures
Wed: 11:30 – 12:45
Session 104: Employees Mobility and Corporate Entrepreneurship
Session 109: Current Research on Uncertainty and Entrepreneurship

Strategic Management Society

Washington DC