Re-visiting Effectuation: The Relationships with Causation, Entrepreneurial Experience, and Innovativeness

Abstract

This study enriches the theory of effectuation by discussing the four independent dimensions of effectuation and their relationships with causation. Additionally, we fill the gap in prior literature by showing how entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture. Our study of 171 practising entrepreneurs regarding their entrepreneurial decision-making logic yielded multiple findings. The authors find that entrepreneurs rely on causation as well as effectuation in their decision-making; the more experienced entrepreneurs are, the more they actually use causation; and entrepreneurial experience moderates the relationship between effectuation and innovativeness of the venture firm.

Citation

Cha, V., Ruan, Y. and Frese, M. (2020), "Re-visiting Effectuation: The Relationships with Causation, Entrepreneurial Experience, and Innovativeness", Caputo, A. and Pellegrini, M.M. (Ed.) The Entrepreneurial Behaviour: Unveiling the cognitive and emotional aspect of entrepreneurship (Entrepreneurial Behaviour Series), Emerald Publishing Limited, Leeds, pp. 213-237. https://doi.org/10.1108/978-1-78973-507-920201014