Making Lemonade out of Lemons: The Role of Information Processing and Strategy in Managing "Misperceived" Start-Ups

Mark Simon, Susan M. Houghton, G. T. Lumpkin

Research output: Chapter in Book/Entry/PoemChapter

1 Scopus citations

Abstract

The entrepreneurs' ability to identify opportunities can lead to wealth creation and competitive advantage. Often, however, opportunities that are innovative may defy up-front analysis suggesting that the entrepreneurs may have had somewhat inaccurate perceptions and need to refine their ideas after the ventures are started. This paper therefore focuses on mitigating the negative impact of early misperceptions through the use of learning-oriented information processing systems to refine opportunities post starting a venture. Specifically, it suggests that an experienced and heterogeneous top management team and a decentralized, organic structure enhance the system's ability to gain knowledge from acting on early misperceptions and may even form the basis for a distinctive capability that leads to competitive advantage.

Original languageEnglish (US)
Title of host publicationEntrepreneurial Strategic Processes
EditorsG.T. Lumpkin, Jerome Katz
Pages131-157
Number of pages27
DOIs
StatePublished - 2007

Publication series

NameAdvances in Entrepreneurship, Firm Emergence and Growth
Volume10
ISSN (Print)1074-7540

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)

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