Theorizing Lean Startup Principles: An Action Regulation Theory Perspective

Abstract

The principles of the lean startup approach are increasingly gaining relevance in theory and practice. At the same time, key principles such as ‘pivoting’ and the ‘build-measure-learn cycle’ remain under-theorized. This hurts the clarity of these concepts and it hinders more effective use of them in practice. We tackle both of these issues in this article. First, we draw on action regulation theory to theorize both ‘pivoting,’ as well as the ‘build-measure-learn cycle.’ Subsequently, we build on this theorizing to develop theoretically grounded design principles. This article contributes to both theory and practice. First, theorizing the lean startup principles improves the clarity of the focal concepts and helps to understand why, for whom, and when they work. Second, the developed design principles contribute to the increasing body of design knowledge which provides scientifically grounded guidance for entrepreneurs and entrepreneurship educators.