How do entrepreneurs innovate within a firm

What is it about?

We empirically explore the process of corporate entrepreneurship (CE) through the conceptual lens of effectuation, a theory describing how entrepreneurs innovate. In particular, we investigate how endogenous innovations emerge and evolve into new products or services. The study thus provides an alternative perspective to most CE research that assumes a causation or rational-analytic approach to innovation.

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Why is it important?

Findings reveal organic stages through which ideas are shaped into viable products. Findings show important effectuation principles at work including stakeholder commitments, affordable loss thinking, and a focus on control instead of prediction. Interestingly, findings illustrate how effectuation may differ in the corporate as compared to the new venture context.