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Entrepreneurial sensegiving and the attention contract

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Abstract

A process model is developed in which entrepreneurs enlist stakeholders for their new ventures. According to stakeholder theory, this challenge should be insurmountable due to the extreme uncertainties regarding the ability of the new ventures to generate sufficient rents. The new model comprises two stages of contract formation: an attention contract and an investment contract. During the attention contract stage entrepreneurs gain attention by engaging in narrative sensegiving that reduces the perceived uncertainties of the new venture. By offering re-enactment of the resources controlled by the stakeholders, entrepreneurs are able to provide a credible story of future rents and therefore persuade stakeholders to support the new venture.

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Authors and Affiliations

  1. Ted Rogers School of Management, Ryerson University, 350 Victoria St., Toronto, Ontario, Canada, M5B 2K3

    Dave Valliere

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  1. Dave Valliere
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Correspondence to Dave Valliere.

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Valliere, D. Entrepreneurial sensegiving and the attention contract. Int Entrep Manag J 11, 77–94 (2015). https://doi.org/10.1007/s11365-013-0273-4

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