Capability Theories

Capability Theories of Entrepreneurship

Exploring individual skill sets, psychological resilience, and organizational agility.

Module 1: The Entrepreneur's Skillset

UNIT 1 Jack of All Trades Theory

UNIT 2 Ambiguity Tolerance Theory

UNIT 3 Resilience and Entrepreneurship

Module 2: Strategic Agility

UNIT 4 Entrepreneurial Orientation (EO)

UNIT 5 Dynamic Capabilities Theory

UNIT 6 Individual Ambidexterity

Module 3: Niche Performance

UNIT 7 Sports-Based Entrepreneurship

Capability Theory Quiz

1. The "Jack of All Trades" theory (Lazear) posits that entrepreneurs: Should be competent in many different skills rather than being a specialist in one Must hire specialists for every single task from day one

2. In Entrepreneurial Orientation (EO), the three core dimensions are usually: Passive, Careful, and Reactive Innovativeness, Proactiveness, and Risk-Taking

3. Dynamic Capabilities Theory focuses on a firm's ability to: Integrate, build, and reconfigure competencies to address rapidly changing environments Maintain a rigid structure to prevent internal disruptions

4. Individual Ambidexterity in entrepreneurship refers to the capacity to: Balance the exploitation of existing resources with the exploration of new opportunities Use both left and right hands equally for business tasks

5. Ambiguity Tolerance is a crucial capability because entrepreneurs must: Make decisions without having all the information or a clear roadmap Ensure that every contract is 100% predictable

6. Resilience in entrepreneurship is defined as: The ability to recover and bounce back from venture failure or setbacks The act of never failing in the first place

Review these theories: