The effect of effectuation and causation approach on entrepreneurial orientation in the presence of leader dominance and self-efficacy
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 11 January 2022
Issue publication date: 5 July 2023
Abstract
Purpose
Entrepreneurial orientation (EO) has witnessed a daunting rise in firm-level practices; to some extent, it has been augmented by the factors such as globalization and technological shift. The wide variety of literature has explained the importance of EO for firm performance. However, it has not yet been explored at a firm-level the approaches of causation and effectuation through the prism of leader traits such as leader dominance and self-efficacy as administrative ability and EO as strategic manoeuvring with strategic decisions obliged as a spin of firms.
Design/methodology/approach
The authors used the quantitative method to analyse the proposed relationships. For this reason, the authors targeted the Chinese firms to collect the data through the semi-structured survey from December 2020 to March 2021 and contributed to the literature by investigating 480 valid responses of leaders from Chinese firms.
Findings
The findings support the incorporated view of causation and effectuation on EO, which serve as vital strategic manoeuvring along with leader traits for firm stability and growth.
Practical implications
This study assists the decision-makers (including the top management team, Chief Financial Officer and Chief Executive Officer choose the particular approach (effectual or causal) to create the new venture/new product/new process or scale up the existing firm on another level for optimal benefits by considering their existing resources.
Originality/value
EO is a unidirectional process with three dimensions: innovativeness, proactiveness and risk-taking that could directly favour the firm by considering the well-known approaches (effectuation and causation) in crisis circumstances (like Covid-19). These approaches help the executives enhance their firm’s performance and maintain its sustainability and stability in crisis conditions by effectively using the available resources within its boundaries.
Keywords
Acknowledgements
Conflict of interest: Each of the authors confirms that this manuscript has not been previously published and is not currently under consideration by any other journal. Moreover, all authors agreed and declared no conflict of interest for this research paper.
Ethical approval: This article does not contain any studies with human and animals participants, performed by any of the authors.
Citation
Jun, M., Ariyesti, F.R., Ali, S. and Xiaobao, P. (2023), "The effect of effectuation and causation approach on entrepreneurial orientation in the presence of leader dominance and self-efficacy", Journal of Entrepreneurship in Emerging Economies, Vol. 15 No. 4, pp. 835-858. https://doi.org/10.1108/JEEE-07-2021-0286
Publisher
:Emerald Publishing Limited
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