World Technopolis Review

World Technopolis Association (세계과학도시연합)
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Formal Business Plans as Myth and Ceremony: Education and Practical Implications

  • Mahdjoubi, Darius (Graduate Faculty of Entrepreneurship, University of Tehran) ;
  • Gibson, David V. (IC2 Institute, The University of Texas at Austin)
  • Received : 2015.09.04
  • Accepted : 2015.12.14
  • Published : 2015.12.30
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Abstract

Business plan competitions and related education are common activities to regions that are, or desire to be, important innovative and start-up regions. The literature is contradictory regarding the value of formal business plans (FBPs) toward venture planning, capital acquisition, and education. This study analyzes the relevant literature and sample of 35 FBPs to assess these contradictions. We propose the theoretical constructs of "myth and ceremony" to explain the loose coupling of FBPs to real business environments, an observation consistent with theory that suggests organizations perpetuate the myths of their institutional environment to maintain their legitimacy. We offer Action Business Planning as an alternative to more accurately address the realities of venture creation and survival, and for education.

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