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Abstract

RESEARCH SUMMARY
This study abductively investigates how a firm’s degree of business model development –the extent to which its strategic choices are crystallized—moderates the impact of a scientific approach to decisionmaking on performance. We present findings from a field experiment involving 261 entrepreneurs, where treated entrepreneurs learn to apply a scientific approach, while control counterparts receive comparable content without this approach. Treated entrepreneurs at a higher degree of business model development elaborated their theories of value focusing on lower-level choices, leading to superior economic performance compared to control firms. Conversely, treated entrepreneurs at a lower level of business model development reevaluated fundamental aspects of their business models, resulting in increased epistemic uncertainty and less favorable economic outcomes in the short term compared to controls.

MANAGERIAL ABSTRACT
Using a field experiment involving 261 entrepreneurs, we explored how the degree to which their business strategy is already defined can influence the benefits of adopting a scientific approach to decisionmaking. In the experiment, half of the entrepreneurs were taught to use a scientific approach for making decisions (the treated group), while the others received similar training without the scientific approach (the control group). Our results show that treated entrepreneurs with already defined strategies benefited more, experiencing improved performance even in the short term. Conversely, treated entrepreneurs with strategies still under definition experienced more uncertainty and lower short-term economic performance, as the scientific approach prompted them to reassess and adjust their core strategic decisions.

Publication Type:	Article
Additional Information:	This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution andreproduction in any medium, provided the original work is properly cited.© 2024 The Author(s). Strategic Management Journal published by John Wiley & Sons Ltd.
Publisher Keywords:	Entrepreneurial strategy, Experimentation, Field Experiment, Uncertainty, Business Model
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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