Journal
JOURNAL OF BUSINESS RESEARCH
Volume 117, Issue -, Pages 112-123Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2020.05.048
Keywords
Effectuation; Causation; New venture performance; Environmental uncertainty; The nonlinear effect
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Funding
- Natural Science Foundation of China (NSFC) [71672181]
- Natural Science Foundation of China NSFC [71772166]
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Prior researches suggest that there are either positive or negative effect of E&C on new venture performance (NVP). To reconcile the conflicting view, this study proposes the nonlinear relationships between E&C and NVP, and the moderating effect of environmental uncertainty on them. An examination of 407 new ventures data in an emerging economics reveals that while there is a J-shaped curvilinear relationship between effectuation and NVP, there is an inverted U-shaped curvilinear relationship between causation and NVP. Empirical studies also reveal that environmental uncertainty positively moderates the J-shaped curvilinear effect of effectuation on NVP. This study contributes to the literature of E&C-performance linkage in nonlinear perspective and offers a more nuanced view of the relationship between E&C and NVP in environmental uncertainty.
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