Why the Wrong Entrepreneurs Take Big Risks
Monday, July 11, 2011
Inc. Magazine -- A study finds that companies best positioned to benefit from ambitious goals rarely pursue them.
The study: "The Paradox of Stretch Goals: Organizations in Pursuit of the Seemingly Impossible," by Sim B. Sitkin, Duke University; Kelly E. See, New York University; C. Chet Miller, University of Houston; Michael W. Lawless, University of Maryland; and Andrew M. Carton, Duke University; published in Academy of Management Review
The thesis: Setting stretch goals, or very ambitious objectives, can make companies more innovative. But those best positioned to benefit from such goals rarely pursue them. Weaker companies, though, often reach for unrealistic solutions out of desperation. (Full Story)
One of authors of this study, Michael Lawless, is a new USD School of Business Administration professor who will be teaching entrepreneurship.