The document discusses imagination as an important part of an entrepreneurial mindset. It explores how imagination involves simulating future events and possibilities in the mind and is linked to regions of the frontal brain. The literature review identifies three processes of imagination - prospective thinking, counterfactual thinking, and perspective taking. These are used for various entrepreneurial tasks like identifying opportunities and envisioning the future of a company. The findings suggest the processes and outcomes of imagination depend on the specific entrepreneurship task, and that imagining the future of a company can be beneficial while imagining how stakeholders will act may not be. The document notes methodological challenges in measuring imagination and proposes methods from social neuroscience could provide stronger evidence about different imagination processes.

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In search of imagination in the mindset
Arjan Frederiks

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Introduction
 Entrepreneurial mindset: “The way [entrepreneurs] think and feel”
(Krueger & Welpe, 2014)
 Many scholars that imagination is important for entrepreneurs
(Baron, 2006; Baron & Ensley, 2006; Foss & Foss, 2008; Foss, et al, 2008; Gartner, 2007; Kaish
& Gilad, 1991; Lumpkin & Dess, 1996; Mathews, 2010; Sarasvathy, 2001; Witt, 1998; 2007)
 Imagination is an important part of the entrepreneurial mindset

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Theory
 Frontal regions of the brain (Wheeler, 1997)
 Performed when the mind is not perceiving the present (Buckner, 2007)
 Develops in humans from three or four years on (Atance & O’Neill, 2005)
 Generates a simulation of a series of actions and events in concrete and
specific form (Taylor et al, 1998)
 Events seem real because imagination tends to be bounded by the
constrains of reality (Kahneman & Miller, 1986)
 Therefore, outcomes of imagination can function as a plan and are
plausible and relevant to real-world problem solving activities (Taylor et
al. 1998)

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Literature review
 Imagination consists of three different processes:
 Prospective thinking: “ability to ‘pre-experience’ the future by simulating it in our minds”
(Gilbert & Wilson, 2007: 1352)
 Counterfactual thinking: “Think[ing] about what might have been” (Byrne, 2005: 1)
 Perspective taking: “The cognitive capacity to consider the world from another individual’s
viewpoint” (Galisnky et al., 2008: 378)
 Imagination is used for eight different entrepreneurial tasks, a.o.
 Opportunities / business ideas
 Future of the company or product
 Scenarios and plans for company or product

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Findings
 Processes and outcomes are dependent:
 When thinking about a certain entrepreneurship related task, the use of
some type of imagination process is more likely than others.
 First results towards the link with success:
 Future of company / product: beneficial
 How stakeholders will act or think: not beneficial

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Methodological issues when measuring thinking
processes
 Diaires: is what entrepreneurs write down a true and complete overview
of their thoughts?
 Interviews: measures perception, are entrepreneurs aware of how they
think? Retrospective bias
 Surveys: how to measure imagination in standardized questions and
scales?

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Methods from social neuroscience could
advance
 Different imagination processes, different places in the (frontal part) of the
brain?
 Also distinguish between processes on biological level?
 Training imaginative thinking: experts and novice entrepreneurs?
 Stronger evidence for current findings

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Thank you!
Arjan Frederiks
a.j.frederiks@utwente.nl