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Risk and rationality in entrepreneurial processes
Author(s) -
Miller Kent D.
Publication year - 2007
Publication title -
strategic entrepreneurship journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.061
H-Index - 46
eISSN - 1932-443X
pISSN - 1932-4391
DOI - 10.1002/sej.2
Subject(s) - rationality , entrepreneurship , bounded rationality , sociology , process (computing) , positive economics , risk management , point (geometry) , economics , epistemology , ecological rationality , business , management , microeconomics , computer science , philosophy , finance , operating system , geometry , mathematics
This study begins with a historical overview of the connection between risk and rationality. It then broadens beyond this historical trajectory by taking entrepreneurship as a point of departure for understanding risk and rationality. Drawing from the research of Littlechild (1986), Buchanan and Vanberg (1991), and Sarasvathy et al . (2003), this study considers three entrepreneurial processes: opportunity recognition, opportunity discovery, and opportunity creation. Associated with each of these processes are unique conceptualizations of risk and rationality, reflected in distinct research streams. The final section of the study considers implications of the process‐contingent nature of risk and rationality, and motivates a broadening of the research agenda from entrepreneurial decision making to practices. Copyright © 2007 Strategic Management Society