Transformative and transactional mechanisms in action-based entrepreneurship education

Paper in proceeding, 2013

In this paper, we argue that transactional and transformative mechanisms can be mutually reinforcing in action-based entrepreneurship program. Transactional mechanisms are defined as predetermined objectified exchanges which students experience, exemplified by all types of formal course examination. Transformative mechanisms are the ways in which students are allowed to re-relate to their identity as entrepreneurs and re-relate to the identity of their venturing experience. The paper explores transactions and transformations and hypothesizes around their interrelation in educational and value creation aspects. The conceptual model builds upon illustrations from a master-level venture creation program in which the authors have extensive day-to-day involvement to anchor generated hypotheses. Whether from an entrepreneurship policy or an educational point of view, the established conceptual framework holds promise to offer novel insights into how to structure programs aimed at both venture development as well as personal development. A main conclusion then is that the two mechanisms – transactional and transformative – can and should be considered in tandem to facilitate the spanning of educational and value creating worlds. Using transactional and transformative mechanisms as boundary objects between education and value creation is novel and non-obvious, and leads to fruitful questions for further empirical testing. Sample questions include: when can transaction mechanisms operate both towards educational and value creation objectives, how do transactional and transformative mechanisms correlate (and when are they unrelated), and how are transformative mechanisms affected by time and teamwork, and type and frequency of related transaction mechanism.