Uncertainty and Entrepreneurship: A Critical Review of the Research, with Implications for the Field

Uncertainty and Entrepreneurship provides a critical review of the uncertainty research, with implications for a field that has had an existential relationship with it ever since Knight’s clear delineation of the term as an essential wedge for new entry. We take a two-step approach in our literature review – where the objective facts are separated from the subjective interpretations – setting the new standard for such work. First, we provide the raw data taken directly from the hundreds of papers reviewed. This data is contextualized with definitions of key terms, the foundations of key concepts, and the limitations involved. Second, we provide our subjective analysis of that raw data. We assess the past research on uncertainty and its lack of evolution, discussing the theoretical and managerial implications. We find that much uncertainty-related alchemy exists – i.e., where a paper defines uncertainty as a condition that renders a focal decision unoptimizable, prior to it then suggesting a “new” optimization path. We make a clear and evidence-based case that the recent surge of such alchemy falls squarely on journal editors. We explain how this kind of misrepresentation of uncertainty has tarnished most of the recent theorizing in the field. As a result, we recommend significant changes.