The effectiveness of effectuation: a meta-analysis on contextual factors
International Journal of Entrepreneurial Behavior & Research
ISSN: 1355-2554
Article publication date: 6 January 2021
Issue publication date: 19 March 2021
Abstract
Purpose
Empirical data on the impacts of entrepreneurial effectuation on firm performance are scattered and controversial. This study conducts a meta-analysis to obtain evidence on whether and under what conditions effectuation is valuable. A contextual framework is proposed that highlights the boundary condition of the performance impact of effectuation.
Design/methodology/approach
Both the traditional approach of meta-analysis and advanced techniques of Bayesian meta-analytic tests are used to combine numerous studies from varied research contexts.
Findings
Meta-analytic results show that effectuation generally has a positive impact on firm performance, and is context-dependent, leading to stronger performance for older firms and firms in high-tech industries and emerging countries.
Originality/value
The findings provide important implications for entrepreneurs who are considering applying effectuation. This study highlights that effectuation is context-dependent and the performance implications of effectuation are contingent on contextual factors at organizational, industrial and institutional levels. This study extends the contextual understanding of the effectuation–performance relationship.
Keywords
Acknowledgements
The authors acknowledge the financial support from the National Natural Science Foundation of Guangdong Province of China (Project No. 2019A1515110715). In addition, the authors would like to thank the two anonymous reviewers and the editors for their valuable suggestions that improve the paper quality.
Citation
Chen, J., Liu, L. and Chen, Q. (2021), "The effectiveness of effectuation: a meta-analysis on contextual factors", International Journal of Entrepreneurial Behavior & Research, Vol. 27 No. 3, pp. 777-798. https://doi.org/10.1108/IJEBR-02-2020-0050
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited