Entrepreneurs’ Capital Budgeting Orientations and Innovation Outputs: Evidence From Australian Biotechnology Firms

How do different kinds of planning orientations affect entrepreneurial firms’ innovation outputs? To address this question, we position real options reasoning (ROR) and net present value (NPV) as business planning orientations with distinctive heuristics. We empirically investigate heterogeneity in entrepreneurs’ business planning in terms of these ROR and NPV orientations and we relate this heterogeneity to material new venture outcomes. Key...