1. IntroductionThe article,”FromRational to Wise Action: Recasting Our Theories of Entrepreneurship”, by LauraC. Dunham. The key research question is the author want to find out thepractical wisdom approach is better to explain the entrepreneurial decisions makingthan using rationality approach.
The main objective of this paper is the authorwant to achieve the practical wisdom approach is far better and richer than therationality approach as a framework for exploring entrepreneurial decisionmaking. Also, there are some sub-objective in this paper, the author want todefine the qualities of rational actors and define the qualities of wiseentrepreneurs. Finally, the author compare the entrepreneurial decision making baseon rational action and practical wisdom to achieve his main objective. Therationale of this paper is in much of entrepreneurial studies are using the “SeparationThesis” which is separate the ethics to studies, but it cannot possibly dojustice to the entrepreneurial decision making, the author believe that ethicsare necessarily and significantly involved in the entrepreneurial decision making,so he propose to use practical wisdom is more better to explore entrepreneurialdecision making.
2.1 Literature reviewIn this article, there are some key linesof the arguments. The author argue that the Separation Thesis is remains rifein the literature so they are not fully integrated the normative ethics, theauthor should review more literature to support this argument, I against thatthe normative ethics not fully integrated is causing by the remains ofSeparation Thesis, because I found that there are many research are challenge theSeparation Thesis and suggest to bring ethics to the entrepreneurial studies. Then, the author argue that the context of entrepreneurshipis dynamic and uncertain, suggest using practical wisdom approach is wellsuited on it and can greatly broadens the role of ethics in the value creationprocess. I agree this argue because the author base on the literature of Mobergwhich define the practical wisdom is good and feasible for oneself and others,it can show that practical wisdom approach is well suited on the specificsituation which like the uncertain context of entrepreneurship. The author argue that opportunityrecognition is a stream of research that has been strongly influenced by theoriesof rational choice, the author use the literature of Kirzner which is articulatethe role of opportunity in the entrepreneurial process buildup upon the foundationsof rational choice, and the author look up the three particular areas of thestudy of entrepreneurial opportunity recognition which have influenced by assumptionsof rationality, include the motivators, cognitive processes, and social relationships,In this argument I suggest that the author can use more different literaturewhich are exam the opportunity recognition buildup upon foundations therational choice, not just use the literature written by Kirzner, and also it isnot fair on this argument that the author choose three particular areas byhimself without any support. 2.
2 Key findings/ argumentsThe key findings in this paper is the practicalwisdom approach allows us to explore a process in which motivation andopportunity occur together but the rational choice approaches can’t. The authoruse the example of the founder of Body Shop, AnitaRoddick. She motivated by her vision of the good lifeand shaped the entrepreneurial venture what she founded. The example iscoincide with the finding. The paper also find that the entrepreneur’s pursuitof the good life and desire to live in conformance with virtue can provide differentideas for them to use to identify and assess new opportunities. The literatureof the entrepreneurial opportunities (e.g., Brush, 1992; Kaish and Gilad, 1991)the practical wisdom approach is suggest to looking within the values and beliefswhich are most important for the entrepreneur to find the opportunities thatcan bring new and meaningful value to customers.
The other key findings ofthis paper is the practical wisdom approach provides a distinctive perspectiveon norms and behaviors which can be the good guide for the management of the entrepreneur’ssocial network to shaping the opportunity recognition and pursuit. The authoruse the example of the founding of Starbucks, and found out that when viewed theprocess of entrepreneurial opportunity recognition through the lens ofpractical wisdom will look very different. Because the practical wisdom approachsuggests the new explanations of entrepreneurial behaviors and processes and Inspirethe new research questions. Overall the authorliterature review is coincide with his findings, the example of body or starbucksare linkage with the results of the findings. 2.3 Research Approach/ MethodsIn this article, the author is using the deductiveapproach, which starts with presentation of a rule and is followed by examplein which the rule is applied.
Frist, the author define the qualities ofrational actors and define the qualities of wise entrepreneurs. And for provingthe main objective the author used two example,Anita Roddick, the founder of body shop,she is motivated by her vision of the good life which reflected by the pursuit ofher values and virtues, then she create an entrepreneurial venture which being greatentrepreneurial success. The example show that practical wisdom approach canlet us to explore the process in which motivation and opportunity can beingtogether, when the entrepreneur’s shapes the purpose and pursue the opportunityby their vision of good life.
The other example is Howard Shultz, thefounding of Starbucks. He is less directed at drawing personal benefit and moretargeted at understanding stakeholder needs. This example prove that when usingpractical wisdom approach is better than rationality approach, because thepractical wisdom provides different perspective on norms and behaviors.
The limitation of deductive approach istruncated from the general idea, that mean the author are begins with analready researched theory, so that the research aims are usually on agreeing ordisagreeing on the findings and no new theory will be come out.