A Proposal for a Standard With Innovation Management System

Modelling the Style in Entrepreneurial Learning From
Experience
Ioannis Akritidis 1 and Alexandros Kakouris 1,2
1 Career Office, National and Kapodistrian University of Athens, Athens, Greece
2 Faculty of Informatics and Telecommunications, National and Kapodistrian
University of Athens, Athens, Greece
akakour@phys.uoa.gr
Abstract: Entrepreneurial learning is fundamentally experiential. According to Minniti and Bygrave (2001),
entrepreneurs essay their options based on observations of real parameters of the market. In this way, they
“learn” a market situation, react and modify their decisions relying on gradually verified expectations. Experiential
learning has also been described by Kolb as a sequential process amongst certain learning modes. Due to
individual differences, practitioners exhibit preferences in the way that they learn experientially – i.e. the learning
style conception. Hence, entrepreneurial performance may not depend on mere information but on learning
asymmetries. In this work, we extend the evolutionary model of Minniti and Bygrave to simulate the effect of an
underlying “style” in observing and conceptualising market data and events. Comparative examples for different
styles are illustrated and discussed. The results indicate different efficiency in adaptation between individuals of
different style. Implications pertain to evolution of small firms which operate in fluctuating niche markets. They
also concern innovating firms that aim to enter new markets with unknown parameters beforehand. The present
article is a first attempt for a more concise modelling of entrepreneurial learning from experience.
Keywords: entrepreneurial learning, experiential learning, numerical modelling, innovation, individual differences,
adaptation
1. Introduction
Learning from experience is considered the base for everyday business venturing as entrepreneurs
have to react on changing markets (e.g. Minniti and Bygrave 2001, Politis 2005). Entrepreneurs
decide to systematically observe selected market features relevant to their entrepreneurial options.
The information they receive about the market is considered crucial for their entrepreneurial success.
For instance, participation in networks (e.g. Birley1985, Hoang and Antoncic 2003) is considered an
essential activity for entrepreneurs as to receive information relevant to their ventures. Thus, depend
on the agreement/disagreement of what really happens with what they were expecting to happen,
entrepreneurs are thought to adjust their options and decisions accordingly. This is a form of practical
informal learning within the context of learning from experience. Not only successful crosschecks but
also failures in business expectations are sources for learning, reconsideration of options and
strategic modification of alternative actions (e.g. Shepherd 2003, Politis and Gabrielsson 2007).
Through learning from experience, an entrepreneur gradually “learns” a situation in the market and it
is expected to intentionally align his/her initiatives (or investments) accordingly. Apparently,
adaptation in the market is a genuine entrepreneurial virtue for successful start-ups (Bhidé 2000,
Kruijne 2007).
Effects of experiential learning become more crucial in the studies of the small firms which are more
person-centric. Small firm owners are responsible to “understand” and “follow” the niche markets they
pursue. SMEs usually lack the costs for extensive marketing surveys about their products or services.
But even larger corporations with availability in marketing methods have to “learn from the market”
step by step, especially when they introduce innovations. Innovations open new markets not entirely
known beforehand. For instance, von Hippel (1986) addressed the role of lead users, i.e. a population
in the marketplace able to provide feedback in the very initial promotion phase of innovative products.
The innovating firm “learns” from lead users and accepts amendments for the very new product which
will significantly increase its subsequent market share. Moreover, experiential learning processes
support the pursuit of changing markets. In this work, we focus on the evolution of small firms since
organisational learning from experience is more complex compared to personal, own-management of
businesses. Due to the lack of a general entrepreneurship theory (Bygrave and Hofer 1991, Fiet
2001), the study of situated empirical responses due to market observations are central in
understanding the origin and evolution of small firms.
Minniti and Bygrave (2001) developed a numerical model for entrepreneurial learning from
experience. According to their iterative model, the entrepreneur examines and alters his/her options
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