Critical realism based entrepreneurial action theory

We propose to use critical realism as the basis for ontology and epistemology in entrepreneurship research. Further, we argue that the teleology of entrepreneurship is value creation. Based on these assumptions we propose that an essential part of the entrepreneurial process is the creation of a business model that shows conceptually how the value will be created. This model can be categorized in three different categories along with the value system continuum: stable value system, redefined value system and emerging value system. We propose an entrepreneurial value creation framework that describes elements that are essential to the value creation.