The DOI matches its Crossref record; 10 of the 10 references it cites were found in a registry or an index.
Falling Forward: Real Options Reasoning and Entrepreneurial Failure
Abstract
Although failure in entrepreneurship is pervasive, theory often reflects an equally pervasive antifailure bias. Here, I use real options reasoning to develop a more balanced perspective on the role of entrepreneurial failure in wealth creation, which emphasizes managing uncertainty by pursuing high-variance outcomes but investing only if conditions are favorable. This can increase profit potential while containing costs. I also offer propositions that suggest how gains from entrepreneurship may be maximized and losses mitigated.
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Cites
Prospect Theory: An Analysis of Decision under Risk
Kahneman, D., & Tversky, A. (1979) · Econometrica · doi:10.2307/1914185 · Cited by 48,524
The pricing of options and corporate liabilities
Black, F., & Scholes, M. (1973) · Journal of Political Economy · doi:10.1086/260062 · Cited by 29,074
Judgment under Uncertainty: Heuristics and Biases
Tversky, A., & Kahneman, D. (1975) · Utility, Probability, and Human Decision Making · doi:10.1007/978-94-010-1834-0_8 · Cited by 22,650
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March, J. G. (1991) · Organization Science · doi:10.1287/orsc.2.1.71 · Cited by 21,942
Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance
Lumpkin, G. T., & Dess, G. G. (1996) · The Academy of Management Review · doi:10.5465/amr.1996.9602161568 · Cited by 10,159
Dixit, R. K., & Pindyck, R. S. (1994) · doi:10.1515/9781400830176 · Cited by 9,029
Judgment under Uncertainty: Heuristics and Biases
(1982) · doi:10.1017/cbo9780511809477 · Cited by 8,240
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Core capabilities and core rigidities: A paradox in managing new product development
Leonard-Barton, D. (1992) · Strategic Management Journal · doi:10.1002/smj.4250131009 · Cited by 6,477
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Cited by
Entrepreneurial orientation and small business performance: a configurational approach
Wiklund, J., & Shepherd, D. (2005) · Journal of Business Venturing · doi:10.1016/j.jbusvent.2004.01.001 · Cited by 3,196
Teece, D., Peteraf, M., & Leih, S. (2016) · California Management Review · doi:10.1525/cmr.2016.58.4.13 · Cited by 2,317
Organizational Response to Adversity: Fusing Crisis Management and Resilience Research Streams
Williams, T. A., Gruber, D. A., Sutcliffe, K. M., Shepherd, D. A., & Zhao, E. Y. (2017) · Academy of Management Annals · doi:10.5465/annals.2015.0134 · Cited by 1,945
Social Entrepreneurship: Why We Don't Need a New Theory and How We Move Forward From Here
Dacin, P. A., Dacin, M. T., & Matear, M. (2010) · Academy of Management Perspectives · doi:10.5465/amp.2010.52842950 · Cited by 1,527
Business model innovation through trial-and-error learning
Sosna, M., Trevinyo-Rodríguez, R. N., & Velamuri, S. R. (2010) · Long Range Planning · doi:10.1016/j.lrp.2010.02.003 · Cited by 1,054
Metadata
- Authors
- McGrath, R. G.
- Venue
- The Academy of Management Review
- Publisher
- Academy of Management
- Published
- 1999-01
- Volume
- 24
- Issue
- 1
- Pages
- 13
- ISSN
- 0363-7425 (ISSN-L)
- OpenAlex
- W2158222839
- Cited by
- 1,476
- References
- 10
- FWCI
- 40.73
- Type
- journal article
- Language
- en
- Open access
- closed
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- McGrath, R. G. (1999). Falling Forward: Real Options Reasoning and Entrepreneurial Failure. The Academy of Management Review. https://doi.org/10.2307/259034
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
