Decision Making in Entrepreneurship
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Decision Making in Entrepreneurship

Selected Joint Papers of Dean A. Shepherd

Dean A. Shepherd

In this volume, Dean Shepherd focuses on the varying topics of entrepreneurship unified through conjoint analysis. Although the topic of entrepreneurial decision making is broad, in doing so, he reveals the mechanisms that come into play during the entrepreneurial decision-making process.
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Chapter 15: CAPABILITY DEVELOPMENT AND DECISION INCONGRUENCE IN STRATEGIC OPPORTUNITY PURSUIT

J. Robert Mitchell and Dean A. Shepherd

Abstract

In strategic opportunity pursuit, decision incongruence (the gap between the decision-making rationale that an individual conveys to others and the rationale that informs his/her actual decisions) can lead to difficulties achieving the commitment necessary to grow a venture. To understand why some individuals have greater decision incongruence in strategic opportunity pursuit than others, we conducted a field experiment to test how a configuration of theoretically-based capability-building mechanisms—codification, general human capital, and specific human capital—affected 127 CEOs’ decision incongruence. The results indicate that codification decreases decision incongruence the most for CEOs with low general but high specific human capital.

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