How do entrepreneurs learn from critical events? A case study of critical event learning

Abstract

Purpose

How do entrepreneurs learn from critical events or significant entrepreneurial experience? It is an important field in entrepreneurship cognition and learning studies. Previous studies have given interpretations from many perspectives, such as effectuation, scenario change of entrepreneurial behaviors, cognitive development, situated learning, etc. These studies provide important clues for exploring the dynamic mechanism of entrepreneurship learning; the problems, such as narrow study angle, fragmentation of knowledge and lack of systematic explanation, however, have also been exposed. For this reason, this study aims to reveal the deep structure and the effectiveness mechanism of entrepreneurs’ learning from critical events, based on existing theoretical progress and specific cases, through the abstract method of retrospective analysis. A conceptual model of entrepreneurial critical events learning is built on this basis, thus deepening the understanding of entrepreneurial learning mechanism.

Design/methodology/approach

This study combines retrospection of critical realism with a single case study. On the one hand, data are collected through many channels, such as semi-structured interview, field observation and collection of secondhand information to describe events as detailed as possible. On the other hand, strict coding principles and processes are followed to ensure the validity and reliability of the research.

Findings

Entrepreneurial critical event learning reflects the legitimacy, competency and dominancy of entrepreneurial behavior script and leaves a positive influence on the quality improvement of entrepreneurial behavior script. Entrepreneurial critical event learning is an effectual process of decision-making and a process of situated learning and cognitive development. Thus, critical event learning plays an important role in enhancing the influence capacity of stakeholders.

Research limitations/implications

Single case study is used in this paper and, thus, lacks comparison and verification of multi-case study. In addition, selection biases might have occurred during the process of retrospection.

Originality/value

This study broadens research on new enterprise generation process from the aspect of interaction between entrepreneurs and environment. This study reveals the deep structure and effectiveness mechanisms that restrain entrepreneurial behaviors. The study overcomes the problem of over-emphasis on institutional restriction and insufficient understanding on the subjective initiative of entrepreneurs in the research on institutional legitimacy. This study addresses over-emphasis on individual initiative and insufficient focus on behavior legitimacy in effectuation theory.

Citation

Song, Z., He, L. and Zhang, Y. (2017), "How do entrepreneurs learn from critical events? A case study of critical event learning", Chinese Management Studies, Vol. 11 No. 4, pp. 778-796. https://doi.org/10.1108/CMS-08-2016-0171