Entrepreneurial alertness as a pathway to strategic decisions and organizational performance

Abstract

Entrepreneurial alertness can play a vital role in the identification and creation of opportunities involving early-stage ventures. However, the strategic function of entrepreneurial alertness in more mature organizations has not been explored. In a field study of organizations responding to an environmental disruption, we explore if entrepreneurial alertness influences decisions involving the creation and maintenance of competitive advantage. We find a direct effect of entrepreneurial alertness on strategic change decisions and organizational performance. Moreover, we find a synergistic influence of entrepreneurial alertness and other cognitions, including issue categorization and assessments of uncertainty, on strategic decisions. Findings demonstrate that managerial decision makers can take multiple, reinforcing pathways when heeding change.