Title:
Pursuit of Entrepreneurship: Operational Models

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Author(s)
Wang, Zeya
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Rahmani, Morvarid
Ramachandran, Karthik
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Abstract
This dissertation comprises three essays that explore innovative operational solutions for addressing entrepreneurial challenges. Building on the existing entrepreneurial operations literature, it emphasizes managing the inherent uncertainties of entrepreneurship through entrepreneurial learning. Specifically, the dissertation (i) employs diverse analytical approaches such as game theory, stochastic processes, and optimization models, and (ii) covers three critical topics: operational challenges faced by entrepreneurs, advising entrepreneurs, and hybrid entrepreneurship. Operational Challenges Faced by Entrepreneurs: Despite the significance of entrepreneurship in today’s economies, the harsh reality is that most entrepreneurial ventures ultimately fail. In recent years, there has been a growing awareness among researchers and practitioners that a significant portion of these failures can be attributed to execution and operational issues. Startups face unique challenges that differ from those of established firms, and these obstacles can vary significantly depending on their stage in the entrepreneurial process. To organize the existing entrepreneurial operations literature, we first review the literature on entrepreneurial stages. We then delve into the operational challenges faced at each stage. Lastly, we propose some future research opportunities in entrepreneurial operations. Advising Entrepreneurs: When novel and urgent challenges arise, entrepreneurs often lack the expertise needed to identify potential solutions. Additionally, they typically have a limited timeframe, or “runway,” in which to implement a viable solution. Consequently, startups often seek help from external experts, known as mentors or advisors, who can identify candidate solutions. Advisors are experienced professionals who have either engaged in or provided counsel to businesses in related fields. While substantial research in operations management has focused on entrepreneurial challenges, there is an important gap that remains: understanding the role of advisors in guiding entrepreneurs. This chapter addresses this gap by exploring how advisors should recommend options to entrepreneurs, considering the entrepreneur’s capability to execute and the iterative nature of the solution validation process. Hybrid Entrepreneurship: One of the primary reasons behind the high failure rate of startups is the significant uncertainty they face. To navigate these challenges, entrepreneurs must engage in extensive exploratory work. They often encounter two contrasting strategies for pursuing their ventures. The first strategy, endorsed by prominent venture capitalists and seasoned operators, advocates for unwavering commitment to one’s entrepreneurial vision, based on the belief that hesitation or half measures can undermine potential success. The second strategy, suggested by other experts in entrepreneurship, promotes a more fiscally cautious approach, advising entrepreneurs to maintain employment until their venture’s viability is firmly established, a concept also referred to as Hybrid Entrepreneurship. In this chapter, we complement existing studies by incorporating the dimension of entrepreneurial learning into Hybrid Entrepreneurship and examining the circumstances under which this approach should be adopted.
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Date Issued
2024-07-24
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Dissertation
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