Journal
SMALL BUSINESS ECONOMICS
Volume 57, Issue 4, Pages 1761-1781Publisher
SPRINGER
DOI: 10.1007/s11187-020-00371-7
Keywords
Effectuation; Causation; Resources; Performance; Experience; New technology-based firms
Categories
Funding
- Spanish Ministry of Science, Innovation and Universities [ECO2016-80677-R]
- European Union (FEDER Grants)
- Andalusian Department of Economy, Innovation and Science [P12-SEJ-2396]
- Faculty of Economics and Business of the University of Granada
Ask authors/readers for more resources
Effectuation theory offers new perspectives to understand entrepreneurial decisions, showing differences between novice and expert entrepreneurs in applying effectual and causal logics. The availability of resources interacts differently with causation and effectuation, impacting firm performance in new technology-based firms.
Effectuation theory offers new ways of understanding entrepreneurial decisions and it is opposed to the traditional, rational, and so-called causal approach. A significant portion of the effectuation literature is rooted in the idea of entrepreneurial experience and expertise, with conclusions suggesting that novice and expert entrepreneurs apply effectual and causal logics differently when making decisions about their ventures. Further, resources are seen as critical to deployment of effectual vs. causal behaviors. The main goal of this paper is thus to evaluate whether the roles of effectuation and causation in performance differ for experts and novices, and how these logics interact with resource availability. Based on data from a sample composed of 178 new technology-based firms (NTBFs), our analyses show that causation seems to be determinant of firm performance in experts' ventures only, whereas effectuation is relevant for both experts and novices. Moreover, the availability of resources seems to interact only with causation in their relationship to performance.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available