COMPREHENSIVENESS IN START-UPS: THE ROLE OF THE ENVIRONMENT IN START-UP DECISION MAKING

Authors

Claudia Gomez, Kent State University at Stark
Robin T. Peterson, New Mexico State University
Terry R. Adler, New Mexico State University
Judith Y. Weisinger, Mills College

Abstract

Little understanding exists on the decision-making processes used by entrepreneurs and how these processes interpret environmental dimensions. This study looks at the effects of perceived environmental conditions on the level of comprehensiveness in decision-making in business start-ups. The proposed hypotheses are tested with a data set including 147 entrepreneurs from a wide range of start-up organizations. The findings suggest that complexity, instability, and munificence are key components of perceptions of environmental conditions that need consideration when studying strategic decision-making in start-ups. These findings question the argument that business founders use heuristics and biases when faced with environmental instability, complexity and scarcity suggesting that comprehensiveness is a relevant construct in entrepreneurial decision making.

Recommended Citation

Gomez, Claudia; Peterson, Robin T.; Adler, Terry R.; and Weisinger, Judith Y. (2015) "COMPREHENSIVENESS IN START-UPS: THE ROLE OF THE ENVIRONMENT IN START-UP DECISION MAKING," Journal of Business & Entrepreneurship: Vol. 27: No. 1, Article 2.
Available at: https://repository.ulm.edu/jbe/vol27/iss1/2