Entrepreneurial Strategic Decision-Making
Show Less

Entrepreneurial Strategic Decision-Making

A Cognitive Perspective

Patrick A.M. Vermeulen and Petru L. Curseu

Strategic choices made by entrepreneurs have major consequences for SME performance. This book explores the factors that influence entrepreneurial strategic decisions using a cognitive theoretical framework.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 1: Entrepreneurs and Strategic Decisions

Patrick A.M. Vermeulen and Petru L. Curseu


Patrick A.M. Vermeulen and Petru L. Curseu ¸ 1.1 INTRODUCTION Making decisions is a daily routine. We make decisions that involve our private life (for example, what we eat, how to dress, what to do in our free time) as well as specific decisions related to our work. Decision-making is a cognitive process that involves the selection of a specific course of action that is supposed to bring us to a certain result. The fact that there is selection in decision-making implies that there are alternative choices to be considered. Often, we do not know the exact outcomes of these alternatives and thus one of the key challenges in decision-making is the reduction of uncertainty. One way to reduce uncertainty is to gather relevant information before we make a decision. We use the specific information to fill in the cognitive gaps and choose the most suitable alternative for our purposes. For example, if we want to make a choice about what to wear, we might check the weather forecast, look at our agenda for important meetings, or ask someone for advice. On the basis of this information we look over our alternatives and make a choice. Another way to reduce uncertainty is to apply pre-existing heuristics (cognitive short cuts developed through experience) and to use just a minimal number of cues when making a choice. In the example above, we might decide to take our jacket as well as an umbrella, simply based on the observation that so...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.