The Role of Awareness, Learning and Knowledge in Entrepreneurial and Firm Leadership Processes

Scholars in recent years have urged researchers to shift from their traditional focus on specific characteristics of entrepreneurs and leaders toward research on entrepreneurship and leadership processes. To do this, researchers must better understand entrepreneurs and leaders’ cognitive processes involved in learning, awareness and knowledge acquisition. In this paper systems thinking theory and system dynamics methodologies are used in the development of a dynamic conceptual framework of learning effectiveness. The research applies the conceptual framework to nine U.S. wineries and identifies the consequences of varying levels of awareness and types of knowledge, as well as alternative learning processes on entrepreneurship and leadership effectiveness. Results indicate that one’s level of awareness and knowledge are key factors in enhancing one’s ability to learn. The types of awareness and knowledge identified most critical for enhancing entrepreneurship and leadership effectiveness are: (a) awareness of one’s mental models and learning patterns, (b) systemic knowledge and (c) business related knowledge. Results also identify that there is a positive relationship between the level of entrepreneurs’ intangible key resources and the scope of the learning process undergone. The higher the level of the intangible resources the entrepreneur moves from conducting single loop learning to double loop learning.