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Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative

The survival of any entrepreneurial initiative depends on a working business model that could create value for the customers and, simultaneously, allow the firm to capture value from what has been created. Despite increased attention to business model research, the understanding of business models’...

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Autores principales: Lin, Mei-Hsing, Chou, Hsin-Hui
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9241967/
https://www.ncbi.nlm.nih.gov/pubmed/35783738
http://dx.doi.org/10.3389/fpsyg.2022.846434
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author Lin, Mei-Hsing
Chou, Hsin-Hui
author_facet Lin, Mei-Hsing
Chou, Hsin-Hui
author_sort Lin, Mei-Hsing
collection PubMed
description The survival of any entrepreneurial initiative depends on a working business model that could create value for the customers and, simultaneously, allow the firm to capture value from what has been created. Despite increased attention to business model research, the understanding of business models’ impact on entrepreneurial development is quite constrained. In particular, the question of how an entrepreneurial firm’s business model is influenced by its organizational members’ managerial cognition remains under-explored. To tackle this research question, we drew a linkage between the business model literature and a managerial cognition perspective to build the theoretical foundation. We used this theoretical lens to investigate the failure of Better Place, an Israeli entrepreneurial company that focused on its proprietary battery-swap electric vehicles. In our findings, we argued that organizational members’ managerial-cognition-based conceptual framework is critical to the business model decision-making of an entrepreneurial firm. The discrepant and strongly held conceptual framework may result in misjudgment of environmental changes, especially when emerging-market numbers in an industry are high, and consensus regarding technology innovation in an industry is still lacking. The improper conceptual framework can generate mistaken business models, which further bring about an organizational decline. It is crucial for entrepreneurial firms to learn and improve existing conceptual frameworks and consequent business models by business interaction in the initiative stage if they are to avoid failure. The research outcome paves the way for future empirical studies to contribute to machine learning in the field of cognitive automation, artificial-intelligence-driven smart manufacturing, and sustainable industrial value creation in the era of digital transformation.
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spelling pubmed-92419672022-06-30 Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative Lin, Mei-Hsing Chou, Hsin-Hui Front Psychol Psychology The survival of any entrepreneurial initiative depends on a working business model that could create value for the customers and, simultaneously, allow the firm to capture value from what has been created. Despite increased attention to business model research, the understanding of business models’ impact on entrepreneurial development is quite constrained. In particular, the question of how an entrepreneurial firm’s business model is influenced by its organizational members’ managerial cognition remains under-explored. To tackle this research question, we drew a linkage between the business model literature and a managerial cognition perspective to build the theoretical foundation. We used this theoretical lens to investigate the failure of Better Place, an Israeli entrepreneurial company that focused on its proprietary battery-swap electric vehicles. In our findings, we argued that organizational members’ managerial-cognition-based conceptual framework is critical to the business model decision-making of an entrepreneurial firm. The discrepant and strongly held conceptual framework may result in misjudgment of environmental changes, especially when emerging-market numbers in an industry are high, and consensus regarding technology innovation in an industry is still lacking. The improper conceptual framework can generate mistaken business models, which further bring about an organizational decline. It is crucial for entrepreneurial firms to learn and improve existing conceptual frameworks and consequent business models by business interaction in the initiative stage if they are to avoid failure. The research outcome paves the way for future empirical studies to contribute to machine learning in the field of cognitive automation, artificial-intelligence-driven smart manufacturing, and sustainable industrial value creation in the era of digital transformation. Frontiers Media S.A. 2022-06-15 /pmc/articles/PMC9241967/ /pubmed/35783738 http://dx.doi.org/10.3389/fpsyg.2022.846434 Text en Copyright © 2022 Lin and Chou. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Lin, Mei-Hsing
Chou, Hsin-Hui
Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title_full Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title_fullStr Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title_full_unstemmed Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title_short Collapse of Better Place: A Managerial Cognition Perspective on the Failure of an Entrepreneurial Initiative
title_sort collapse of better place: a managerial cognition perspective on the failure of an entrepreneurial initiative
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9241967/
https://www.ncbi.nlm.nih.gov/pubmed/35783738
http://dx.doi.org/10.3389/fpsyg.2022.846434
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