Decision making behavior in smaller entrepreneurial and larger professionally managed firms
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Strategic diagnosis of information processing structures and commercialization in new ventures
2018, Journal of Business ResearchCitation Excerpt :To achieve such actions, founders must engage in information processing. Although a significant body of work on information processing has focused on managers and top management teams (Simons, Pelled, & Smith, 1999; Smith, Gannon, Grimm, & Mitchell, 1988; Thomas & McDaniel, 1990), the development of the underlying structures of information processing is lower, and the founders are responsible for strategic diagnosis. Although Busenitz and Barney (1997) find that entrepreneurs rely on heuristics, use limited information, and follow a less rational decision process, others show that entrepreneurs gather more information and pay more attention to risk-related cues (Kaish & Gilad, 1991), recognize patterns, and make quick decisions (Bird, 1988; Forbes, 2005; Robert Baum & Wally, 2003; Talaulicar, Grundei, & Werder, 2005).
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