The effectiveness of effectuation: a meta-analysis on contextual factors

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.

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