Journal
JOURNAL OF BUSINESS VENTURING
Volume 26, Issue 3, Pages 375-390Publisher
ELSEVIER
DOI: 10.1016/j.jbusvent.2009.10.006
Keywords
Causation; Effectuation; Measurement validation
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We develop and validate measures of causation and effectuation approaches to new venture creation and test our measures with two samples of entrepreneurs in young firms. Our measure of causation is a well-defined and coherent uni-dimensional construct. We propose that effectuation is a formative, multidimensional construct with three associated sub-dimensions (experimentation, affordable loss, and flexibility) and one dimension shared with the causation construct (pre-commitments). As specified by Sarasvathy (2001), we also show that causation is negatively associated with uncertainty, while experimentation, a sub-dimension of effectuation, is positively correlated with uncertainty. The major contribution is the resulting validated scales that measure causation and effectuation. (C) 2009 Elsevier Inc. All rights reserved.
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