Entrepreneurs as theorists: on the origins of collective beliefs and novel strategies

What are the origins of entrepreneurial beliefs about new opportunities and the value of resources? In this article, we outline a theory and model of the emergence of entrepreneurial beliefs and novel strategies. We first summarize extant literature by highlighting both the experiential and perceptual (or observational) origins of entrepreneurial beliefs and strategies. Thereafter we carefully explicate the role that entrepreneurial theorizing plays in the emergence of novel beliefs about new opportunities and make links with experiential and perceptual arguments. We specifically discuss three key mechanisms of entrepreneurial theorizing, namely: (1) the triggering role of experiential and observational fragments; (2) the imagination of possibilities; and (3) reasoning and justification. Importantly, we also explicate the social mechanisms of entrepreneurial theorizing and the emergence of entrepreneurial beliefs and novel strategies, specifically by discussing the role of social interaction and self-selection in entrepreneurial activity. Copyright © 2009 Strategic Management Society