The Relationship Between Decision Making Logic,Opportunity Exploitation And Entrepreneurial Performance In Startups

The effective development of entrepreneurial activities has become an important driving force for sustainable economic and social development.The survival of new venture has also attracted attention.The problem such as short life span and insufficient growth caused by the disadvantages of the new enterprise has become increasingly prominent.facing knight's uncertainty,unpredictabe,and the inability to choose output,the new venture desperately need more funds to inject and entrepreneurial opportunities to survive and develop.However,due to information asymmetry and income instable,new ventures are limited in financing,and low-level opportunity development will exacerbate this reality.As a result,how new ventures seek to survive and develop under realistic circumstances has become an issue that needs to be answered.Abandoning the decision-making logic of traditional cause and effectuation and choosing effectuation or bricolage to find new ways and exploiting limited resources to develop viable entrepreneurial opportunities becomes an effective path for new venture to ease financial constraints and realize corporate value.Firstly,based on fully interpreting the decision logic of new ventures,we define the key concepts such as effectuation and bricolage,and clarify the scope of research.On this basis,this paper sorts out and summarizes the relevant theories and literatures,focusing on the deficiencies of the existing research,and provides theoretical support for the follow-up study in this paper.Secondly,on the basis of analyzing the decision logic and entrepreneurial performance of new ventures,this paper analyzes the connotation and dimension structure of effectuation,bricolage and opportunity development,and then puts forward the concept model and research hypothesis.Finally,this paper studies and examines the direct and indirect effects of the decision logic of new venture on entrepreneurial performance,and the different performance in the context of financing constraints,so as to clarify the internal mechanism of the influence of corporate decision logic on entrepreneurial performance.The innovations in this article are as follows:At the level of research factors,this paper takes the factors into consideration and fully integrates the two main entrepreneurial situations of the new venture,namely environmental uncertainty and resource scarcity,in order to study more closely the entrepreneurial process of new ventures.First of all,based on the consideration of the uncertainties of the new venture's environment,this paper selects the two major logics of effectuation and bricolage which are more appropriate than causation,and continues the research paradigm of "logical-result" performance theory research.While fully interpreting the logic of effectuation,this paper excavates and finds out from the existing literature,and commits to a deeper level of the principle perspective,rather than the content perspective to explore the concept of bricolage,and divides the bricolage in the empirical research process.Secondly,combining entrepreneurial opportunity theory,this article regards the development of entrepreneurial opportunities as a direct source of corporate advantages and organizational development.Considering that the complexity and heterogeneity of the environment faced by new venture are more significant than other enterprises,the opportunity for development failure is far greater than the threat to mature enterprises,when new ventures develop balanced opportunities or innovative opportunities.This has led to the need to study how new ventures can make decision-making opportunities.Finally,focusing on the broad resource scarcity,this paper uses the financing constraint theory to introduce the common financing constraints of new ventures into entrepreneurial research from the perspective of capital constraints,and to explore the impact of financing constraints on the effect of the decision logic of the enterprise in the process of new ventures and decisions.At the level of theoretical model construction and empirical research,this paper constructs a theoretical model to further restore the real situation of new ventures.The empirical research in this paper is based on the series of questions:how do the effectuation and bricolage decision logic help resource-deficit new ventures making rational decisions in the process of opportunity development,which can promote the survival and development of the company.”and interpret the not yet fully-defined mechanism of the relationship between the decision logic of new ventures and entrepreneurial performance.First of all,this paper studies the effect of decision logic that puts effectuation and bricolage on the same organization level to the entrepreneurial performance,and constructs an analysis paradigm of the subjective logic and result of the mesocosm.This study of entrepreneurial performance pre-factors—the logic of enterprise decision-making,further extends the existing theoretical framework of decision-making logic and perfects the "logical-result"research system.This design is devoted to answering the question of "is there more rational decision-making logics for new ventures than causation under uncertain Scenarios";Second,research on bricolage deconstructs it from the perspective of logical principles.After further theoretical analysis,it is not at the behavioral level of effectuation or causation,but is a logical layer parallel to the two.This discovery also conforms to the relationship between the decision logic called for in the existing research,that is,the effectuation and the causation are not the opposite and bricolage is also a new venture's entrepreneurial process often using decision logic.This is a clear response to the question of "What is bricolage?”and "What is the relationship with effectuation?”.Finally,from the meso level,the new venture decision logic and opportunity development behavior are integrated into the same research framework.Through the integration of effectuation,bricolage and entrepreneurial opportunities,this paper proposes a conceptual model on the basis of "financing constraints" in the capital related theory system.This paper explores the mediating effect of opportunity development on the relationship between decision logic and entrepreneurial performance,and the moderating effect of financing constraints on the relationship between decision logic and entrepreneurial performance.Among them,the mediating effect is designed to answer questions such as“how does the decision logic of new startups affect entrepreneurial performance","what is the specific mechanism of the firm's performance brought by the decision logic" and "what kind of decision logic,and the performance obtained from matching opportunity development is greater".The design of the moderating effect answers the question,"Whether the logic of decision-making logic is favorable to entrepreneurial performance,is the decision logic of the newly-created company ready to use?”and further answers the question"Which is better for the effect of effectuation and bricolage".The empirical results show that balanced opportunity development and innovative opportunity development have some mediating effects on the relationship between different decision-making logic and entrepreneurial performance,and under the influence of financing constraints;the bricolage of entrepreneurship is beneficial to obtaining more direct entrepreneurial performance compared to the effectuation logic.This means that different decision logic has different paths of influence,and different decisions have different preferences for different types of opportunity development.In addition,even if the effectuation and the bricolage of the venture are considered to be the two logic under the circumstances of uncertainty,there is still a better decision logic in the context of different financing constraints.In general,the conclusions of the study open up the context of the logic of business decision making,and the relationship between behavior and results.Under the framework of the overall framework,the study of the effect of effectuation and bricolage selection under financing constraints on opportunity development and entrepreneurial performance can not only enrich the research on the middlevel of entrepreneurial activity in new ventures,which lay a theoretical foundation for the follow-up research,but also provide a new way of thinking for alleviating new ventures' entrepreneurial difficulties,opportunities development path and entrepreneurial resource management practice.