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Purpose

This article synthesizes research on perspective taking (PT) in entrepreneurship and identifies conceptual patterns and future directions. It also positions PT as the cognitive foundation of the emerging simulated empathy theory (SET) of entrepreneurship. By illustrating how PT enables entrepreneurs to mentally simulate stakeholders’ experiences, the review provides microfoundations for understanding others in entrepreneurial processes.

Design/methodology/approach

An integrative literature review of 96 peer-reviewed articles was conducted, in which PT plays a central role in entrepreneurial cognition. The review includes a descriptive analysis of trends in the field, and a thematic coding process was used to identify recurring themes and functional areas.

Findings

The review reveals 10 themes across 4 entrepreneurial functions: (1) opportunity identification, (2) design thinking and new product development, (3) social entrepreneurship and prosocial motivation, (4) learning and knowledge absorption in organizations, (5) entrepreneurial education, (6) decision-making, (7) PT in teams, (8) negotiations, (9) investors and venture financing and (10) negative consequences. These intersections highlight promising directions for future research.

Originality/value

The review demonstrates how PT serves as the cognitive engine of SET. It clarifies the breadth of the construct’s relevance to entrepreneurship and identifies opportunities for further theoretical and empirical development.

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