Effectuation and causation configurations for business model innovation: Addressing COVID-19 in the gastronomy industry

The gastronomy sector is among those that are hit particularly hard by a loss of customers and regulatory uncertainty of the COVID-19 crisis. When established ways of doing business become almost impossible, business model innovation (BMI) is a possible reaction to this high uncertainty level. Effectuation and causation are decision-making logics that may lead to BMI and help a firm navigate uncertainty. We investigate configurations of causation and effectuation components associated with a high BMI level during the first wave of COVID-19. We perform fuzzy-set-qualitative comparative analysis (fsQCA) on a sample of 143 gastronomy entrepreneurs in Munster county, Germany. We identify two paths that lead to a high BMI level: the planning soloist and the hedging networker. We conclude that innovators among the gastronomy entrepreneurs use effectuation and causation components in complex configurations.

Automated summary

This study examines how gastronomy entrepreneurs cope with high uncertainty during the COVID-19 pandemic by combining causal and effectual logics to achieve business model innovation. The research identifies different paths, such as planning soloists and hedging networkers, through which innovators use a combination of causal and effectual components to achieve a high level of BMI.