A Theory of Nascent Entrepreneurship and Organization
Version of Record online: 10 JUL 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Managerial and Decision Economics
Special Issue: Emergent Nature of Organization, Markets and Wisdom of Crowds
Volume 33, Issue 5-6, pages 409–426, July-September 2012
How to Cite
Felin, T. and Knudsen, T. (2012), A Theory of Nascent Entrepreneurship and Organization. Manage. Decis. Econ., 33: 409–426. doi: 10.1002/mde.2557
- Issue online: 17 AUG 2012
- Version of Record online: 10 JUL 2012
- Manuscript Received: 4 JUN 2012
- Manuscript Accepted: 4 JUN 2012
In this paper, we develop a theory and model of organizational founding and the emergence of collective beliefs and strategies. We explicate how collective beliefs, resulting in the formation of new organizations, emerge via three social mechanisms: sorting or matching, interaction, and selection. We specifically highlight how value homophily, social processes, and threshold effects contribute to the actualization (or not) of entrepreneurial beliefs and ideas. Our theory and model highlight not only the emergence of collective beliefs but also the socially interdependent nature of belief realization, choice, and strategy in nascent organizations. Copyright © 2012 John Wiley & Sons, Ltd.