Browsing by Subject "Business venturing"
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Item Open Access Decision-making under extreme uncertainty: Eristic rather than heuristic(Emerald Publishing Limited, 2023-01-02) Kurdoğlu, Rasim Serdar; Ateş, Y. N.; Lerner, D. A.Purpose – This paper aims to introduce eristic decision-making in entrepreneurship. A decision is eristically made when it utilizes eristics, which are action-triggering short-cuts that draw on hedonic urges (e.g. sensationseeking). Unlike heuristics, eristic decision-making is not intendedly rational as eristics lead to decision-making without calculating or even considering the consequences of actions. Eristics are adaptive when uncertainty is extreme. Completely novel strategies, nascent venturing, corporate venturing for radical innovation and adapting to shocks (e.g. pandemic) are typically subject to extreme uncertainties. Design/methodology/approach – In light of the relevant debates in entrepreneurship, psychology and decision sciences, the paper builds new conceptual links to establish its theoretical claims through secondary research. Findings – The paper posits that people adapt to extreme uncertainty by using eristic reasoning rather than heuristic reasoning. Heuristic reasoning allows boundedly rational decision-makers to use qualitative cues to estimate the consequences of actions and to make reasoned decisions. By contrast, eristic reasoning ignores realistic calculations and considerations about the future consequences of actions and produces decisions guided by hedonic urges. Originality/value – Current entrepreneurial research on uncertainty usually focuses on moderate levels of uncertainty where heuristics and other intendedly rational decision-making approaches pay off. By contrast, this paper focuses on extreme uncertainty where eristics are adaptive. While not intendedly rational, the adaptiveness of eristic reasoning offers theoretically and psychologically grounded new explanations about action under extreme uncertainty.Item Embargo Unsticking the rationality stalemate: Motivated reasoning, reality, and irrationality(Elsevier Inc., 2022-08-21) Kurdoglu, Rasim Serdar; Lerner, D; Ates, N. Y.Rationality is an elusive and increasingly debated concept in entrepreneurship research. We offer a novel conceptualization of rationality based on reasoning motivations. We posit that logical, probabilistic, and heuristic reasoning logics are motivationally rational because the decision-maker attempts to accurately perceive the external world and problem-solve (even if rapidly and approximately). By contrast, when the reasoning ignores an assessment of reality and accuracy in problem-solving and instead is deluded by psychological (e.g., hedonic) urges that prompt self-serving inferences, we categorize such decisions as motivationally irrational. We develop a theoretical account for how motivational irrationality is adaptive under extreme uncertainty as it enables entrepreneurs to dare action when even heuristic reasoning is inconclusive or entirely ineffective.