A model of Decision-making for New Venture Creation: a Grounded Theory approach

The decision-making process of entrepreneurs is not appropriately explainable through utilizing teleological approach. Through a non-teleological approach and employing a grounded theory research design, this research aims to explore a process of new venture creation decision-making in a sample of nascent entrepreneurs in Iranian high-tech businesses. Data collection was conducted through qualitative event-based interviews with 20 nascent entrepreneurs of the research theoretical sample. Analysis of gathered data was done by three integrated procedures of open, axial and selective coding. Results determine six categories as constituent elements of the studied process. These categories are "entrepreneur’s properties and background", "specific contextual conditions", "general contextual conditions", "entrepreneurial orientation and competency", "identification, evaluation and empowerment" and "venture creation decision". Propositions concerning the relationships between the categories, lead to development of the model of new venture creation decision-making in the sample of entrepreneurs of Iranian high-tech businesses. Moreover, the studied process is explained by the story line of the substantive grounded theory.