A Judgmental Decision-Making Approach to Entrepreneurship: Toward a Behavioral Model

An increasing number of scholars have called for a more robust view of the micro-foundations for strategy and entrepreneurship, typically understood as foundations that are rooted in individual cognition, behavior, and action. We offer a rich theoretical model of judgmental decision-making that treats judgmental decision making as an ongoing process, rather than a discreet event, and ties entrepreneurship to strategy through its emphasis on environmental scanning and analysis, action, and resource acquisition and use. In doing so, our theoretical framework not only exposes limitations of existing theories of entrepreneurship, but also contributes to a deeper understanding of the iterative, dynamic, and recursive relationships among evolutionary and discontinuous judgmental decision-making processes that drive entrepreneurial action.