Metaphors and mental models: sensemaking and sensegiving in innovative and entrepreneurial activities

Journal of Management, Nov-Dec, 1995 by Hill Robert C., Michael Levenhagen

Entrepreneurs operate at the edge of what they do not know (Burgelman, 1983; Kanter, 1983; Kidder, 1981). Within established industries, a common interpretive scheme or mental model of the industry tends to set in (Huff, 1982). The entrepreneur, although typically educated within the industry status quo, may operate outside of it. Some entrepreneurs seek to create new industries or segments wherein they can compete on a different basis than is done in the mainline industry - to create or "enact" a new industry environment or sub-environment (Levenhagen, Porac & Thomas, 1993; Weick, 1979).

The role of the entrepreneur starting a new business is similar to that of a CEO instigating major strategic change. A major task for both consists of sensemaking and sensegiving (Gioia & Chittipeddi, 1991). In both situations, a new vision or mental model of the given business environment must be developed and communicated to others (e.g., partners, employees, investors, potential customers, and suppliers) to gain their support. This process:

... involves calling into question an obsolete interpretive scheme, framing a new interpretive scheme in understandable and evocative terms, providing guidance for action toward the incipient change and exerting influence to accomplish it. (p. 446)

In the entrepreneurial setting, this is a particularly difficult and important task requiring the ability to "offer explanations of current and future equivocal events as non-equivocal interpretations" (Gartner, Bird & Starr, 1992). Entrepreneurs typically operate somewhat intuitively in relatively uncertain and ambiguous environments (Mintzberg, 1973, 1978; Mitton, 1989). Their intuitive concepts are sometimes not consciously articulated (Schein, 1985). Moreover, language may not be available to adequately communicate these concepts (Mintzberg, 1978; Ortony, 1975) and "vague feelings" (Bird, 1989). As a result, an entrepreneur could have a valid and workable concept or mental model and not be able to fully implement it due to the lack of an adequate means of articulating it in evocative terms. In part due to the specialized demands of entrepreneurial activity, entrepreneurial communication patterns have been found to differ from those of larger mature organizations (Smeltzer & Fann, 1989).

This paper presents a model of how such models are developed and implemented with particular attention to the entrepreneurial environment. Articulation of the concept is regarded an important step in this process. It is suggested that entrepreneurs make extensive use of metaphor both in developing a vision or mental model of their environments (sensemaking) and articulating that vision to others (sensegiving). A fundamental process of entrepreneurship is the creation of a less equivocal reality (Gartneret et al., 1992; Gartner & Gatewood, 1992). Metaphors provide helpful interpretive schemes to aid in the reduction of equivocality. Moreover, metaphors are useful in coping with ambiguity and in interpreting large amounts of data. More importantly, perhaps, metaphors are an effective and evocative means of articulation and premise setting within an organization (Nonaka & Yamanouchi, 1989).

The study of entrepreneurs and entrepreneurship is a rather wide domain with various different definitions used to set the boundaries of individual studies. As a result, it is necessary to clarify the operating definition of entrepreneurship and the scope of inquiry at the outset of discussion (Gartner, 1990). This paper focuses more on the nature of entrepreneurial activity than on the traits of individual entrepreneurs (Gartner, 1988). Drawing from the dimensions of entrepreneurship proposed by Gartner (1990), the distinguishing characteristics of entrepreneurial activity in this discussion are: (1) a focus on innovation and innovative activity, (2) an emphasis on growth by the entrepreneur and/or the organization and, (3) an emphasis on the creation of something unique. In keeping with Drucker (1985), entrepreneurs, "...create something new, something different; they change or transmute values." The specific activity under consideration is the process by which entrepreneurial visions are developed and then communicated to others. This type of entrepreneurial activity may be displayed by independent entrepreneurs as well as by individuals within innovative organizations. Finally, metaphorically expressed visions may even become the driving force behind the evolution of new industries.

Mental Models and Organizations

Metaphors and other mental models provide a means for individuals and, ultimately, organizations to create and share understanding (Lyles & Mitroff, 1980; McCaskey, 1982; Morgan, 1980). These mental models establish images, names and an understanding of how things fit together. They articulate what is important and unimportant depending on underlying values, shared interests, and common understandings (Kiesler & Sproull, 1982). Organizational mental models constitute the frameworks of organizational rationalities and belief systems on which formal analyses, policies and procedures are based. Moreover, these models form the foundations for initiating and organizing subsequent actions (Nisbet & Ross, 1980). Beliefs in mental models allow individuals to predict and control their environments. Individuals (and their own organizations) will be successful in this process only to the extent to which their models are accurate and fitting for the given situation (Barr, Stimpert & Huff, 1992). Finally, the models must be articulated and accepted within the organization for them to be effective. Thus, metaphors and other mental models articulate perceptual salience and motivate a selection process by implicit or explicit choice. In the context of such models "believing is seeing" (Weick, 1979).