Customer Development, Innovation, and Decision-Making Biases int he Lean Startup

  • Jonathan L. York California Polytechnic State University
  • Jeffrey E. Danes California Polytechnic State University

Abstract

This paper reviews current research relevant to new product development, customer development, and the lean startup. Customer development and the lean startup are a new and increasingly used form of entrepreneurship process, which rely on hypothesis testing but not in the traditional sense; the entrepreneur is encouraged to scan the environment, collect information, and form and evaluate educated guesses so as to make accurate judgments and decisions. The present research provides a review of the customer development model for entrepreneurial activities and a critique of this hypothesis testing methodology. We then consider ways in which to improve decision making within the startup via a systematic study of System 1 ( intuition) and System 2 ( reasoned and rational) decision-making styles. This paper has significant implications for entrepreneurs, entrepreneurship support organizations, such as incubators and accelerators, and entrepreneurship educators, all of whom are increasingly practicing and teaching this process.

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Published
2014-05-22
How to Cite
YORK, Jonathan L.; DANES, Jeffrey E.. Customer Development, Innovation, and Decision-Making Biases int he Lean Startup. Journal of Small Business Strategy, [S.l.], v. 24, n. 2, p. 21-40, may 2014. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/191>. Date accessed: 08 dec. 2019.
Section
Articles