Strategic entrepreneurship in VUCA environment: the competing forces of outcome variability

Abstract

Purpose Scholars have extensively studied the concept of strategic entrepreneurship (SE), shedding light on its antecedents, dynamics and outcomes. However, a notable gap exists in understanding the reliability of its performance implications, which explains the inherent risks as well as the possibility of yielding outliers (instances of exceptionally high or low performance). Addressing this gap, this study aims to present a detailed analysis of the implications of SE for the variance of resulting performance distribution. Design/methodology/approach This conceptual study uses the deductive theory-building approach to dissect the four dimensions of SE (entrepreneurial mindset, entrepreneurial leadership and culture, managing resources strategically and applying creativity and developing innovations) as presented by Ireland et al.’s (2003) model, offering theoretical propositions on how each of them influences the variability of resulting performance distribution. Findings This study demonstrates that the strategic entrepreneurship (SE) dimensions have distinct impacts on the reliability/variability of performance outcomes, acting as boosters or attenuators in the volatile, uncertain, complex and ambiguous (VUCA) context. Originality/value The study uniquely links each component of SE with outcome variability in VUCA environments, thereby shifting the focus from traditional performance metrics to outcome variability. This approach complements the existing body of knowledge on the performance implications of the SE construct by integrating a previously neglected critical perspective on the reliability of resulting performance distribution. These insights allow subsequent investigation of SE’s outcomes, including explaining the likelihood of obtaining positive outlier performance or firm failure.