University of Twente Student Theses
The Role of Institutional Context in Shaping Decision-Making Styles of Novice Entrepreneurs in Dutch Startup Incubators
Tchalikian, C.A.T. (2024) The Role of Institutional Context in Shaping Decision-Making Styles of Novice Entrepreneurs in Dutch Startup Incubators.
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| Abstract: | Decision-making in entrepreneurial environments is highly influenced by the level of uncertainty faced by the entrepreneur. In the face of uncertainty entrepreneurs can implement planned and emergent strategies to influence their performance. The planned approach falls in line with causation logic while the emergent approach falls in line with effectuation logic. Both approaches can also be overlapped, and intertwined in many different ways across a mix-match of contexts, decisions, and actions. Novice Entrepeneurs establishing their very first enterprise tend to join Business Incubators, since incubators address the issues entrepreneurs face in the early stages by providing them access to knowledge, resources and network. Business incubators are influenced by their shareholders, and adopt certain strategies to deal with the expectations of their shareholders. These shareholders relate to institutional theory, specifically formal institutions which represent structures of codified and explicit rules and standards that shape interaction among societal members. This paper dives into the effect of the institutional context on the decision-making style of novice entrepreneurs in startup incubators using an exploratory qualitative research design, with semi structured interviews with entrepreneurs at NovelT’s “Incubase” a University Business Incubator (UBI). The results show us that the effect of the institutional context on the decision-making styles of entrepreneurs are both direct and indirect and entail a blend of both causation and effectuation logic. Direct effects were highlighted by the requirements stakeholders and financing parties had for the entrepreneurs, while more indirect effects were highlighted by the community, network and overall ecosystem of the incubator. Future research is needed to dive deeper into the the effect and role of the institutional context on entrepreneurial decision making. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/100335 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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