The Four E Model of Entrepreneurial Decision to Pursue an Opportunity

摘要

In this article, using strategic choice theory, we provide a model to comprehend the entrepreneurial decision making process. The entrepreneurial decision to pursue an idea is viewed as a dynamic three-step process, in which exploration, evaluation and exploitation function together in an evolutionary manner. During this process, entrepreneurs endure four tests before they actually make their decisions. We argue that perceived good ideas are not opportunities and that only confirmed good ideas will be pursued. Our model synthesizes several theories and helps to clarify previous confusing findings. We contribute by advancing the opportunity two-test perspective, and the exploration and exploitation learning theory. We hypothesize that well-aligned relationship between motivation and searching behavior, between feasibility-desirability tests and evaluating techniques, and exploration and exploitation results in the decision to pursue an idea.