A situated model of entrepreneurial learning and entrepreneurs' innovation propensity and its application in China's transitional economy

Consistent with the calls for a context-process-outcome research structure, this study takes a situated perspective to integrate environmental uncertainty, entrepreneurial learning, and entrepreneurs' innovation propensity into a coherent theoretical framework. Specifically, information uncertainty is proposed to negatively relate to the degree of exploration of entrepreneurial learning and entrepreneurs' innovation propensity; and resource uncertainty is proposed to positively relate to the degree of exploration of entrepreneurial learning and entrepreneurs' innovation propensity. In addition, entrepreneurial learning is proposed to mediate the relationship between environmental uncertainty and entrepreneurs' innovation propensity. The paper tests the framework using the Entrepreneurial Research Consortium's Panel Study of Entrepreneurial Dynamics. In general, our analysis of a national survey based nascent entrepreneurs provides broad support for our hypotheses. We further apply our situated model in China's transitional economy, and specifically address (1) a staged perspective of transformations of SOEs' (State Owned Enterprises) entrepreneurial orientation; and (2) the distinction between managers from SOEs and those from POEs (Privately-Owned Enterprises) in terms of their innovation propensity. We conclude the paper with policy implications.