Research On Multilevel Decision-making Mechanisms Of New Venture Growth

Along with the acceleration of economic globalization and the intensification of China’s social transition, entrepreneurship research is booming and ascends into mainstream of management research. Concepts born out of mainstream theory but emerged from entrepreneurial practice:effectuation, entrepreneurial orientation, bricolage, entrepreneurial learning etc, have sprung up. Research projects relied on particularity of entrepreneurial behavior:GEM, PSED etc, are developing vigorously. China’s entrepreneurial activity is very active, but the generation ratio of new venture is very low; guanxi plays a strong role in Chinese culture, then, what is the particular pattern of entrepreneurial activity in entrepreneurial environment characterized by institutional change, oriental culture, emerging economies in our country; whether there is certain scientific elements which can be inherited behind China’s experience...series of phenomena and problems have caused widely attention. However, integrating more Bold Orient into the construction, development and inspection of entrepreneurial management theory is no easy task and needs to focus on the front of business life cycle, embed into the level of behavior and process, refine scenario uniqueness of our country, and rely on scientific research design and methods.The research object of this paper is hierarchical Decision-making Mechanisms in view of effectuation, with an eye to new venture growth in China, the whole research process involved multidisciplinary knowledge, effectuation, social network, institutional theory, new venture growth theory, decision science, mathematical statistics, and so on. In terms of a logic mainline:microscopic serial entrepreneurs、guanxi network、macroscopic institutional change、new venture growth, I research on entrepreneurial decision-making mechanisms systematically. The basic research contents and innovative achievements of this paper are as follows:(1) Through tracking Prof. Sarasvathy’s research design, dissect the theoretical framework of effectuation. To establish the theoretical foundation for the research of multilevel decision-making mechanisms of new venture growth, effectuation is combined with causation、institutional change theory、new venture growth theory and so on.(2) Distinguish start-ups and entrepreneurs from the micro perspective, set serial entrepreneurs as the research object, an entrepreneur is modeled as a collection of propensities and levels of competence and confidence, learning is modeled through a reinforcement algorithm that is consistent with assumptions of bounded rationality, establish decision-making mode from multi-angle. Further, by using Chinese data to do empirical research of reentry from different perspectives of personal traits and expertise, creatively contrast the inconsistent assumptions drawn from traits and luck, entrepreneurial learning and expertise, and scientifically analyze reentry after failure, firm performance after reentry and the effects of human and social capital.(3) Along the above microscopic angle, we study the relationship between individual action in the labor market and decision-making approach moderating with gaunxi. Results show that three kinds of behavioral choice corresponds with three kinds of strategy, beyond the binary opposition way of thinking, from the truly perceptual sense, wipe out the simple and rigid way of thinking, have unique significance. At the same time, through putting emphasis up on the role of guanxi, inspires the importance of analyzing the influence of cultural characteristics in entrepreneurial activity. In the Chinese context, it’s the first attempt to balance causal logic and effectual logic decision-making approach, combining with individual action in the labor market and availing strategy optimization in entrepreneurial decision-making, deepens our understanding of the boundary of effectuation effectiveness.(4) From the dynamic perspective, we creatively tests explanatory power of effectuation at macro level through looking into institutional environment and entrepreneurial decision-making logic, the contributions is embodied in the following aspects:Firstly, we break through the limitations of paying little attention to the environment in western entrepreneurship research, or only regard institution as a kind of static existing state, and bring institution into the dynamic evolution process, considering longitudinal institutional change. Second, it will inevitably lead to the biased conclusion if purely concern on the microscopic level research, taking entrepreneurial decision-making mechanism into the macro environment of institutional change of the economy can be regard as beneficial attempt to the breakthrough of effectuation application fields.(5) According to entrepreneurial decision-making modes in the microscopic level, contextual learning and macro institutional change, we propose an integrated model in view of decision-making ability based new venture growth, in order to research entrepreneurial decision-making and new venture growth in Chinese context. Reasonably considering research variables spanning different levels as well as the special function of Chinese scenario elements, and effectively reflecting them in the model, provide new opportunities for future study to a certain extent.