A model of the relationships between pre-organizational information processing and environmental load specifies an interaction effect on new organization creation. The model proposes that levels of information-processing ability in pre-organizational networks can be either superoptimal or suboptimal relative to the levels of environmental load encountered by intending entrepreneurs. Either condition will reduce the likelihood that the entrepreneur's intentions will be realized. However, when an appropriate balance between information-processing ability and environmental load is achieved, the likelihood of new organization creation increases. Environmental load is described in terms of information load and information diversity. Entrepreneurs' information-processing ability is specified in terms of pre-organizational size, interconnectivity, and frequency of communication. (Reprinted by permission of the publisher.)
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