Entrepreneurship Theories Rosetta Stone
The Rosetta Stone
Academic research is written in a different language. We've decrypted the dense jargon into "Street-Smart" definitions you can actually use.
> DECRYPTING DATABASE...
Isomorphism SOCIOLOGY
Ivory Tower Definition:
"A constraining process that forces one unit in a population to resemble other units that face the same set of environmental conditions."
Street Translation:
Deep Dive: Institutional Theory
"Copy-Pasting Success."
Why all coffee shops look the same. You copy competitors to look legit so investors/customers trust you.
Why all coffee shops look the same. You copy competitors to look legit so investors/customers trust you.
Effectuation STRATEGY
Ivory Tower Definition:
"A logic of thinking that serves entrepreneurs in processes of opportunity identification and new venture creation by leveraging existing means."
Street Translation:
Deep Dive: Effectuation
"Cooking with leftovers."
Stop planning a 5-course meal. Open the fridge, see what you have, and make something edible right now.
Stop planning a 5-course meal. Open the fridge, see what you have, and make something edible right now.
Info Asymmetry ECONOMICS
Ivory Tower Definition:
"A condition in which at least some relevant information is known to some but not all parties involved."
Street Translation:
Deep Dive: Info Asymmetry
"The Hustle."
You know something they don't. You buy it cheap here, sell it expensive there. That gap is your profit.
You know something they don't. You buy it cheap here, sell it expensive there. That gap is your profit.
Bricolage RESOURCE
Ivory Tower Definition:
"Making do by applying combinations of the resources at hand to new problems and opportunities."
Street Translation:
Deep Dive: Bricolage
"MacGyvering it."
You don't have funding? Use a paperclip, bubblegum, and your roommate's laptop to build the MVP.
You don't have funding? Use a paperclip, bubblegum, and your roommate's laptop to build the MVP.
Creative Destruction MACRO
Ivory Tower Definition:
"Process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one."
Street Translation:
Deep Dive: Schumpeter
"Move fast and break things."
Your startup isn't just adding to the market; it's murdering the old way of doing things (e.g., Netflix vs. Blockbuster).
Your startup isn't just adding to the market; it's murdering the old way of doing things (e.g., Netflix vs. Blockbuster).
Absorptive Capacity COGNITIVE
Ivory Tower Definition:
"A firm's ability to recognize the value of new information, assimilate it, and apply it to commercial ends."
Street Translation:
Related: Knowledge Spillover
"Learning Speed."
It doesn't matter if you read the book; it matters how fast you can turn that reading into a feature in your app.
It doesn't matter if you read the book; it matters how fast you can turn that reading into a feature in your app.
Agency Costs MANAGEMENT
Ivory Tower Definition:
"Internal costs that arise from, and are necessary for, the monitoring of an agent acting on behalf of a principal."
Street Translation:
Deep Dive: Agency Theory
"The Slacker Tax."
The money and time you waste watching your employees to make sure they aren't watching Netflix on the job.
The money and time you waste watching your employees to make sure they aren't watching Netflix on the job.
Ent. Orientation STRATEGY
Ivory Tower Definition:
"The processes, practices, and decision-making activities that lead to new entry, characterized by innovativeness and risk-taking."
Street Translation:
Deep Dive: E.O.
"Startup Vibes."
Are you actually a startup (taking risks, moving fast)? Or are you just a small business acting like a corporate zombie?
Are you actually a startup (taking risks, moving fast)? Or are you just a small business acting like a corporate zombie?
Resource Dependence POWER
Ivory Tower Definition:
"The external environment provides resources upon which the organization is dependent, creating power dynamics."
Street Translation:
Deep Dive: Resource Dependence
"Golden Handcuffs."
If one VC holds all your money, or one supplier holds all your parts, they own you. Diversify or die.
If one VC holds all your money, or one supplier holds all your parts, they own you. Diversify or die.
