1. the qualities of wise entrepreneurs. Finally, the author

1.     
Introduction

The article,”From
Rational to Wise Action: Recasting Our Theories of Entrepreneurship”, by Laura
C. Dunham. The key research question is the author want to find out the
practical wisdom approach is better to explain the entrepreneurial decisions making
than using rationality approach. The main objective of this paper is the author
want to achieve the practical wisdom approach is far better and richer than the
rationality approach as a framework for exploring entrepreneurial decision
making. Also, there are some sub-objective in this paper, the author want to
define the qualities of rational actors and define the qualities of wise
entrepreneurs. Finally, the author compare the entrepreneurial decision making base
on rational action and practical wisdom to achieve his main objective. The
rationale of this paper is in much of entrepreneurial studies are using the “Separation
Thesis” which is separate the ethics to studies, but it cannot possibly do
justice to the entrepreneurial decision making, the author believe that ethics
are necessarily and significantly involved in the entrepreneurial decision making,
so he propose to use practical wisdom is more better to explore entrepreneurial
decision making.

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2.1 Literature review

In this article, there are some key lines
of the arguments. The author argue that the Separation Thesis is remains rife
in the literature so they are not fully integrated the normative ethics, the
author should review more literature to support this argument, I against that
the normative ethics not fully integrated is causing by the remains of
Separation Thesis, because I found that there are many research are challenge the
Separation Thesis and suggest to bring ethics to the entrepreneurial studies.

 

Then, the author argue that the context of entrepreneurship
is dynamic and uncertain, suggest using practical wisdom approach is well
suited on it and can greatly broadens the role of ethics in the value creation
process. I agree this argue because the author base on the literature of Moberg
which define the practical wisdom is good and feasible for oneself and others,
it can show that practical wisdom approach is well suited on the specific
situation which like the uncertain context of entrepreneurship.

 

The author argue that opportunity
recognition is a stream of research that has been strongly influenced by theories
of rational choice, the author use the literature of Kirzner which is articulate
the role of opportunity in the entrepreneurial process buildup upon the foundations
of rational choice, and the author look up the three particular areas of the
study of entrepreneurial opportunity recognition which have influenced by assumptions
of rationality, include the motivators, cognitive processes, and social relationships,
In this argument I suggest that the author can use more different literature
which are exam the opportunity recognition buildup upon foundations the
rational choice, not just use the literature written by Kirzner, and also it is
not fair on this argument that the author choose three particular areas by
himself without any support.

 

2.2 Key findings/ arguments

The key findings in this paper is the practical
wisdom approach allows us to explore a process in which motivation and
opportunity occur together but the rational choice approaches can’t. The author
use the example of the founder of Body Shop, Anita

Roddick. She motivated by her vision of the good life
and shaped the entrepreneurial venture what she founded. The example is
coincide with the finding.

 

The paper also find that the entrepreneur’s pursuit
of the good life and desire to live in conformance with virtue can provide different
ideas for them to use to identify and assess new opportunities. The literature
of the entrepreneurial opportunities (e.g., Brush, 1992; Kaish and Gilad, 1991)
the practical wisdom approach is suggest to looking within the values and beliefs
which are most important for the entrepreneur to find the opportunities that
can bring new and meaningful value to customers.

 

The other key findings of
this paper is the practical wisdom approach provides a distinctive perspective
on norms and behaviors which can be the good guide for the management of the entrepreneur’s
social network to shaping the opportunity recognition and pursuit. The author
use the example of the founding of Starbucks, and found out that when viewed the
process of entrepreneurial opportunity recognition through the lens of
practical wisdom will look very different. Because the practical wisdom approach
suggests the new explanations of entrepreneurial behaviors and processes and Inspire
the new research questions.

 

Overall the author
literature review is coincide with his findings, the example of body or starbucks
are linkage with the results of the findings.

 

2.3 Research Approach/ Methods

In this article, the author is using the deductive
approach, which starts with presentation of a rule and is followed by example
in which the rule is applied. Frist, the author define the qualities of
rational actors and define the qualities of wise entrepreneurs. And for proving
the 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 of
her values and virtues, then she create an entrepreneurial venture which being great
entrepreneurial success. The example show that practical wisdom approach can
let us to explore the process in which motivation and opportunity can being
together, when the entrepreneur’s shapes the purpose and pursue the opportunity
by their vision of good life.

 

The other example is Howard Shultz, the
founding of Starbucks. He is less directed at drawing personal benefit and more
targeted at understanding stakeholder needs. This example prove that when using
practical wisdom approach is better than rationality approach, because the
practical wisdom provides different perspective on norms and behaviors.

 

The limitation of deductive approach is
truncated from the general idea, that mean the author are begins with an
already researched theory, so that the research aims are usually on agreeing or
disagreeing on the findings and no new theory will be come out.