Prediction and Control: An Agent-Based Simulation of the Entrepreneurial Problem Space

Abstract

This study seeks to understand the boundary conditions and successful application of search processes in the entrepreneurial problem space. To this end, we employ an agent-based simulation approach to formally investigate the influence of environmental isotropy, unpredictability, and goal ambiguity on two distinct search processes, one prediction-based and one control-based. Specifically, we investigate the performance of effectuation as an example of non-predictive, control-based search and causation as an example of prediction-based search. Results enhance theory by revealing a more nuanced relationship between the environment and entrepreneurial search than previous conceptual and empirical work has suggested.