How Entrepreneurial Alertness Influences the Leader's Choice of Strategic Approached in New Venture Creation During the COVID-19 Pandemic

• Main Author: Lagdameo, John Luis
• Format: text
• Published: Archīum Ateneo 2021
• Subjects: entrepreneurship, causation, effectuation, pandemic, leadership; Business Administration, Management, and Operations
• Online Access: https://archium.ateneo.edu/theses-dissertations/528
• Institution: Ateneo De Manila University

This study examines how the entrepreneurial alertness of ten entrepreneurs influence the choice of strategic approaches in new venture creation, namely causation and effectuation. Eight of the entrepreneur-leaders initially used causation, in which they had a desired concept that was developed into a venture. Two of the leaders used effectuation, where they developed options based on their available resources and knowledge, and then chose to develop one of the options into their new venture. The COVID-19 pandemic triggered a shift from causation to effectuation for most of the entrepreneurs. because the external environment limited their ability to access the elements or measures for their enterprise. The leaders had to make sense of whatever elements were left or what other available elements might be useful to their business. They also went through a deeper process of internal sensemaking, which led to the understanding of one’s own strengths and weaknesses and revisiting organizational purpose and objectives. The combination of the external context of the pandemic and the internal sensemaking brought about by the qualities and competencies of the leaders led to entrepreneurial alertness that enabled them to better position their new ventures in the new normal.