This paper systematically reviews the literature on the entrepreneurial action theory and its derivative studies both at home and abroad, traces the theory’s formation process, compares and refines its core insights—subjectivity, contextuality, and processuality—and constructs a theoretical research framework. Focusing on the action subject, specific actions, and the action process, this paper identifies three major application themes for the entrepreneurial action theory and proposes interdisciplinary integration as a direction for theoretical expansion. Considering the shortcomings of theory development, the differences between Eastern and Western innovation and entrepreneurship contexts, and the characteristics of the era, this paper further proposes four future development directions: improving the theoretical framework, integrating with local contexts, adapting to the era’s characteristics, and supporting with multiple methods. The conclusions contribute to constructing unique theories in the field of entrepreneurship, promoting the in-depth development of entrepreneurial action theory, and stimulating the vitality of the theory in innovation and entrepreneurship practice.