Entrepreneurial Improvisation Theory
Wing it Like a Pro: The Strategic Power of Entrepreneurial Improvisation
In the traditional world of business, "improvisation" is often a polite word for "unprepared." We are taught to plan, forecast, and mitigate. But in the volatile world of startups and international expansion, the rigid plan is often the first thing to break.
Current research suggests that the most successful entrepreneurs don't just react to chaos—they practice strategic improvisation. It isn't about lack of preparation; it’s about a highly developed skill set that allows firms to pivot in real-time.
The Rhythm of Success: Oscillating Improvisation
When a firm enters a foreign market, they face a "liability of foreignness." How do they survive? Christopher Bingham (2009) discovered that success isn't found in a straight line, but in oscillation.
Bingham’s research shows that entrepreneurial firms succeed by cycling between improvisation and semi-structured rules. They don't just make it up as they go forever; they improvise to capture a new opportunity, then capture those lessons into "heuristics" (simple rules) before improvising again. It is this rhythmic movement—the "oscillation"—that allows firms to scale without losing their agility.
Can You Teach 'The Pivot'?
If improvisation is a key to success, can it be learned? Lakshmi Balachandra (2019) argues that it can—and should—be a core part of entrepreneurship education. Drawing from the world of jazz and improvisational theater, Balachandra highlights that "Yes, and..." thinking is vital for entrepreneurs.
Improvisation training helps founders manage the anxiety of the unknown, improves their ability to pitch under pressure, and sharpens their listening skills. It’s not about being funny; it’s about being present and adaptive.
The Performance Link: When Does it Work?
However, improvisation isn't a magic wand. Hmieleski, Corbett, and Baron (2013) found that the effectiveness of improvisational behavior depends heavily on the person and the environment.
Interestingly, their study found that improvisation has a more positive impact on firm performance when the entrepreneur has high levels of positive affect (optimism and energy) and when the industry is highly dynamic. In stable environments, too much improvisation can actually be detrimental. It is a tool designed for the storm, not the calm.
Synthesis: The "Alternative Theory" of Success
To truly understand how modern startups survive, we have to look at the intersection of three distinct behaviors. Archer, Baker, and Mauer (2009) propose an alternative theory of entrepreneurial success by integrating Bricolage, Effectuation, and Improvisation.
- Bricolage: Making do with the resources at hand.
- Effectuation: Starting with your means and letting goals emerge (rather than picking a goal and finding means).
- Improvisation: The convergence of design and execution in time.
Archer and colleagues argue that these aren't just "backup plans." They form a cohesive logic for navigating uncertainty.
Video: How entrepreneurs improvise:
References
Archer, G. R., Baker, T., & Mauer, R. (2009). Towards an alternative theory of entrepreneurial success. Frontiers of entrepreneurship research, 29(6), 1-23.
Balachandra, L. (2019). The improvisational entrepreneur. Journal of Small Business Management, 57, 60-77.
Bingham, C. B. (2009). Oscillating improvisation. Strategic Entrepreneurship Journal, 3(4), 321-345.
Hmieleski, K. M., Corbett, A. C., & Baron, R. A. (2013). Entrepreneurs’ improvisational behavior. Strategic Entrepreneurship Journal, 7(2), 138-150.
Explore Related Theories
Strategic improvisation is part of a larger toolkit of adaptive entrepreneurial behaviors. To understand the full "alternative theory" of success, explore our deep dives into these core concepts:
Learn how entrepreneurs use the resources "at hand" to solve new problems and build value without traditional capital.
Discover the "Bird in Hand" principle and how expert entrepreneurs start with means rather than goals.
Explore how firms overcome the "liability of foreignness" through rapid adaptation in global markets.
Understand the organizational capacity to sense, seize, and transform in rapidly changing environments.
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