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The purpose of this paper is to bridge the gap between entrepreneurial implementation intention and subsequent actions, addressing the isotropic issue under uncertain entrepreneurship.

The authors conducted two rounds surveys, a total of 2,350 individuals are surveyed, and 240 of whom expressed entrepreneurial intention but had yet to start a business comprised the sample.

This research finds that entrepreneurial implementation intention has a significant positive relationship with subsequent actions, affordable loss mediates the effect of implementation intention on subsequent actions, environmental uncertainty negatively moderates the relationship between affordable loss and subsequent actions, and the indirect effect of entrepreneurial implementation intention on entrepreneurial action can be enhanced at the low level of environmental uncertainty.

This study contributes new insights to the literature on Rubicon model of action phases in entrepreneurship field by using affordable loss and uncertainty. It also contributes to the literature on affordable loss by examining how environmental uncertainty conditions the effect of affordable loss on entrepreneurial action. Additionally, the negatively moderating role of environmental uncertainty offers a new possibility to explain entrepreneurial uncertainty.

This article conceptualises how the economic well-being of an entrepreneurial household affects its members' mental accounting process to establish its affordable loss for a plunge decision.

The article used research literature to analyze the resources available for entrepreneurial endeavours against a household's ability to maintain acceptable minimum material living standards, juxtaposing income and wealth against competing consumption and investment opportunities.

Mentally accounting for whether household resources can meet minimum material living standards is central to entrepreneurs' ability to raise affordable loss and decide to invest in a new venture. The article proposes that entrepreneurial households establish affordable loss by availing their money exceeding that required to maintain acceptable minimum material living standards. In low-income households, the author assumes that members are not employed and can thus avail their time (versus money) towards affordable loss.

Economic well-being introduces mental accounts of income and wealth and a hedonic reference outcome in the material living standards of households required to meet basic needs. The article introduces the tension entrepreneurial households face between using their income and wealth towards investing in a new business and maintaining their material living standards. It introduces the idea that a loss can be “affordable” according to an entrepreneurial household's ability to remain above its acceptable minimum material living standard. This view prompts scholars to consider a household unit of analysis and avoid assuming an entrepreneur makes the plunge decision in isolation.

The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers.

Literature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised.

This paper presents a conceptual model based on propositions relating to how effectuation logic may explain the predilection of small firm owner-managers to select trusted suppliers from within personal and business networks, and to engage on flexible terms. It suggests that supplier relationship decisions made using effectuation logic may enable wider choice of suppliers than the formal processes of large firms.

The findings were developed from a narrative review of literature and are yet to be empirically tested.

By synthesising research findings on small firm buyer behaviour, the IMP interaction approach and effectuation, it has been possible to develop a predictive model representing buyer–seller relationships in the context of small firms which suggests that owner-managers select suppliers in line with the principles of effectuation means and effectuation affordable loss.

The purpose of this paper is to bridge the obvious gap presented in research on antecedents of effectuation by building a research model from the perspectives of effectuation and entrepreneurial opportunity.

This paper examines the effects of patterns of opportunity discovery and the innovativeness of entrepreneurial opportunity on the decision-making process of effectuation in new venture creation. Eight hypotheses are put forward and examined by hierarchical multiple logistic regression. The data in this paper are based on the first two rounds of survey data from Chinese Panel Study of Entrepreneurial dynamics.

The empirical results show that patterns of opportunity discovery have significant positive effects (at least partially) on effectuation. Namely, entrepreneurs employing fortuitous discovery tend to use available means and leverage contingency. And with lower innovativeness of opportunity, entrepreneurs are more likely to use affordable loss and leverage contingency.

The study is limited to each dimension of effectuation based on the single-item measure, which cannot completely reflect the effectual construct. More research should to be done to improve measures of effectuation.

The findings are useful for entrepreneurs to make effective decisions whether to choose effectuation in the face of different patterns of opportunity discovery. Besides, it provides the advice on how to cope with the innovativeness of opportunity and seize entrepreneurial opportunities to entrepreneurs.

This paper first systematically studies the effects of entrepreneurial opportunity on effectuation, making up for the obvious gap of research on antecedents of effectuation.

Ever since Sarasvathy’s (2001) seminal article, scholars have sought to test effectuation’s affect on firm performance. Although recent work has begun the arduous process of testing effectuation’s effect on entrepreneurial performance, there is still much to learn about its impact on firm performance. One such area is the relationship between effectuation and innovation. The purpose of this paper is to first, propose a scale suitable to the explication of the effectuation construct relative to innovation. Second, it proposes a more parsimonious scale for the measurement of innovation. Third, these scales are tested relative to firm performance.

This paper develops and tests a structural model, which investigates aspects of effectuation as mediators between innovation orientation and product/service innovation. This is accomplished using a sample of 169 electronic product manufacturing-based small and medium-sized enterprises (SMEs). Subjective measures of performance are used as the dependent variable.

The three most widely used measures of innovativeness were found to break cleanly into two sub-constructs, namely innovation orientation and product/service innovation. Effectuation measures included means (who I know), leverage contingencies (experimentation), pre-commitments and affordable loss. Means and leverage contingencies were found to positively mediate innovation orientation and product/service innovation leading to increased firm performance. Affordable loss did not show a mediating role, but had a direct effect on firm performance.

This study establishes two distinct sub-constructs of firm-level innovation; namely innovation orientation and product/service innovation. Second, by testing an innovation-centric effectuation model, this research establishes an empirical relationship between effectuation, innovation and firm performance.

Practical implications include establishing a relationship between means, leverage contingencies and innovation-performance, indicating that the ways through which small and medium-sized enterprises use their innovation networks may affect innovation outcomes and ultimately firm performance.

This research establishes an empirical relationship between effectuation, innovation and firm performance, extending effectuation theory from the entrepreneurship to the innovation literature.

The purpose of this paper is to show that the entrepreneurial project ongoingly is transformed. Empirically, three defining junctions demonstrate the malleability of the entrepreneurial project in perpetual action, expanding beyond effectuation theory on what constitutes given means, affordable loss, and other key concepts from this theoretical perspective. Drawing upon actor-network theory (ANT), this study demonstrates how different framing and support devices implicate different human and non-human actors in changing interpositions within the entrepreneurial process.

This study uses a longitudinal case study design. The case provides an overview of a new business’s emergence based on three identified translations, each representing critical junctures in the business’s development. An ethnographic approach is selected, which combines observations with qualitative interviews. This design allows the authors to focus on how the project emerges and is continuously supported by allies but is sometimes not supported by various human and non-human actors.

This study demonstrates that the entrepreneurial project undertaken by the entrepreneurial network changes as new humans or non-humans become part of it. Including a resource in the network means simultaneously changing the network. This interactionism shows that what sparks interest or attracts resources to a business idea is not simply an influx of additional resources but is simultaneously a dynamic definition of the entrepreneurial endeavour.

This paper examines how ideas are transformed into business ventures by using the ANT to expand understanding from effectuation theory. This shows that means, for instance, are not given but are co-created by the process of translation. In addition, which losses are affordable can be determined by the process within which the entrepreneur frames the project and manages to associate allies within and into the network.

The purpose of this study is to explore the elements of the Marwari business community’s sociocultural context, which influence entrepreneurial behaviour. The entrepreneurial behaviour of the Marwari community is interrogated in the context of the wider indigenous entrepreneurship literature.

The study adopts a qualitative approach in exploring the thoughts, feelings, beliefs and effectual entrepreneurial behaviour of a sample of Marwari entrepreneurs. An exploratory, qualitative content analysis method was adopted to highlight the emerging insights into traditional entrepreneurship.

The study identifies unique, traditional Marwari behavioural constructs such as Sakh and Samai and the role it plays in trust-based business relationships. Overall, the study finds that although the Marwari practices and ecosystem enable a deep understanding of the entrepreneurial and business process, they do not facilitate creative innovation or entrepreneurial experimentation as seen within modern start-up incubation ecosystems.

The study took a conscious decision to restrict further data collection upon saturation and used a purposeful sampling technique to increase the richness of this study rather than enlarge the sample and dilute the quality of the data.

The study identifies nuances of Marwari’s traditional practices that have come to determine their effectual tendencies that support business growth and sustainability. The study, however, finds that the restrictiveness of the Marwari ecosystem practices on fluency of doing business rather than creative innovation and thought experimentation risks the longevity of the traditional ecosystem advantage enjoyed by the Marwaris for centuries.

The study broadens the understanding of the uniqueness of traditional business communities, which are comparatively marginalized in mainstream entrepreneurship research. Via this study, it is seen that the Marwari form of entrepreneurship is collectivist rather than individualist in nature, which differentiates them from their Western counterparts. This helps to explain why entrepreneurs tend to behave differently; hence, achieving a universal definition of entrepreneurship remains a challenge.

While the relationship between the sociocultural aspects of communities and their entrepreneurial behaviour is known, the role of the constituent elements of the Marwari sociocultural context and influence on business is unclear. This study takes the lead in identifying such elements of the Marwari sociocultural construct and argues how these elements can play a role in the Marwaris demonstrating tendencies of effectual behaviour.

This research investigates the nature of regulatory-focused effectuation (as the basis of entrepreneurial behavior) in absorptive capacity development for open innovation implementation, the role of crowds or communities management practices in the effectuation-based open innovation process, and open innovation performance as the output of the open innovation process in digital multi-sided platform (MSP) startups context.

In order to verify the hypothesis, the researcher conducts a quantitative study that is based on a self-administered questionnaire and employs the PLS-SEM approach. The sample comprises of 70 Indonesian digital MSP businesses that have been operational for at least three years and have used open innovation approaches with their audiences, communities or complementors.

The research findings imply that there is a connection between promotion-focused effectuation and the open innovation process. This connection is particularly strong when it comes to the incorporation of absorptive capacity and crowds or communities management practices. On the other hand, prevention-focused effectuation shows insignificant effect toward open innovation process in digital MSP startups context.

The research findings imply that with limited resources and experiences, young entrepreneurs can still implement open innovation strategy for their digital MSP platform through effectuation principles that leverage the external resources from digital platform ecosystem members.

In digital MSP startups context that perform promotion-based effectuation principles, innovation performance can be achieved by analyzing new insight, transforming the existing activities with the new insight, creating new offering afterward, as well as strengthening crowds or communities management practices through co-creation activities with platform ecosystem members that may lead into new business model.

The originality of this work is to make a contribution to the literature on strategic entrepreneurship by describing the phenomena of the paradox of resource-based theory; adopting open innovation strategy under constrained initial resources and capabilities scenario.

This chapter highlights an overemphasis and persistent bias in entrepreneurship pedagogy toward predictive logic that results in unidimensional instruction. In contrast, we explore how to teach a creative logic for entrepreneurial action. We argue that a more realistic and complete approach to teaching and pedagogy should include a creative logic that will augment existing methods focused on students’ research and analysis and balance these with taking explicit entrepreneurial action. Building upon social capital, networking, learning and real options theories, the chapter uses case studies and provides in-class exercises to illustrate our perspective and help researchers and instructors alike.

The purpose of this paper is to consider the impact of effectuation when used by small suppliers within key account management (KAM) relationships.

An exploratory longitudinal case study approach was used to examine a single small supplier operating in the snack foods sector of the UK foods industry, as it entered into a new KAM relationship with a major retailer and undertook four new product development projects.

Findings suggest effectuation may positively moderate the ability of a small supplier to enter into a KAM relationship by enabling it to obtain resources and limit risk. However, once within the relationship, the use of effectuation may negatively impact success by increasing the potential for failure to co-create new product development, leading to sub-optimal products, impacting buyer confidence and trust. Furthermore, a failed KAM relationship may impact other customers through attempts to recover revenues by selling these products, which may promote short-term success but, in the long-term, lead to cascading sales failure.

It cannot be claimed that the findings of just one case study represent all small suppliers or KAM relationships. Furthermore, the case presented specifically concerns buyer-supplier relationships within the food sector.

This study appears to suggest caution be exercised when applying effectuation to enter into a KAM relationship, as reliance on effectual means to garner required resources may lead to the production of sub-optimal products, which are rejected by the customer. Additionally, a large customer considering entering into a KAM relationship with a small supplier should take care to ensure their chosen partner has all resources needed to successfully deliver as required or be prepared to provide sufficient support to avoid the production of sub-optimal products.

Findings suggest the use of effectuation within a KAM relationship has the potential to develop a dark side within business-to-business buyer-supplier relationships through unintentional breaches of trust by the selling party.