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Article
Publication date: 11 June 2024

Diego Antônio Bittencourt Marconatto, Emidio Gressler Teixeira, Gaspar Antônio Peixoto, Kadigia Faccin and Luis Felipe Dias Lopes

Little is known about the role causation plays in establishing the necessary conditions for micro and small enterprises (MSEs) to face the first stages of a major crisis. Our…

Abstract

Purpose

Little is known about the role causation plays in establishing the necessary conditions for micro and small enterprises (MSEs) to face the first stages of a major crisis. Our study aims to investigate how causation affects their ability to be successful at the onset of widespread calamities.

Design/methodology/approach

We examined how 191 Brazilian MSEs utilized causation in managing different aspects of their operating cycle before the COVID-19 pandemic using a combinatory methodology.

Findings

Causation is more important than usually supposed for MSEs when facing widespread crises.

Research limitations/implications

Our study did not explore the specific interactions between the intensified use of causation practices and other factors within MSEs that may lead to superior outcomes. The limitations of our data prevented a fully assessment of sales fluctuations of firms and how they responded to the latter stages of the COVID-19 crisis.

Practical implications

Our findings underscore the significance of causation in helping MSEs navigate future crises, emphasizing the enduring value of time-tested management practices. MSE owners and managers should ensure the presence of causation-oriented practices, as these forms the foundation for well-established management principles. This strong foundation equips MSEs to effectively employ effectuation strategies when it is needed.

Social implications

Small enterprises are the backbone of every economy and play a vital role in economic recovery. Our findings offer valuable insights that can help these enterprises effectively navigate major crises and contribute to economic recovery.

Originality/value

This study is among the first to answer to the call for more research that isolates and investigates granular elements of causation. Additionally, our study is original in that we address the need to consider the temporal dimension of causality.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 20 September 2024

Ekaterina Kozachenko, Galina Shirokova and Virginia Bodolica

Previous studies considered effectuation and causation as alternative decision-making strategies used by entrepreneurs to navigate uncertainty, having various individual- and…

Abstract

Purpose

Previous studies considered effectuation and causation as alternative decision-making strategies used by entrepreneurs to navigate uncertainty, having various individual- and firm-level antecedents. This study aims to broaden our understanding of individual-level antecedents by examining the role of Chief Executive Officer (CEO) temporal focus in decision-making processes in small and medium-sized enterprises (SMEs).

Design/methodology/approach

Based on a multiple case study research design, the authors empirically analyse 16 Russian SMEs to uncover how the CEO temporal focus relates to the choice of effectuation/causation strategies under uncertainty.

Findings

CEOs with past orientation tend to adopt causation, future-oriented CEOs adhere to effectuation, while present-focused CEOs rely on both decision-making strategies (i.e. ambidexterity). Prior crisis-related experience is the underlying mechanism behind the relationship between CEO temporal orientation and effectuation/causation strategies. The authors formulate several propositions that may be tested in future studies in the field.

Originality/value

The contribution of this study consists in uncovering a new individual-level antecedent of effectuation/causation under uncertainty (i.e. CEO temporal focus) and suggesting that prior crisis experience acts as a mechanism underlying this relationship. The authors advance the strategic leadership theory by underscoring the CEO’s role in decision-making processes in SMEs.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 12 October 2023

Xuecheng Yang and Yunfei Shao

Drawing on the upper echelons theory, this study focuses on how top management team (TMT) heterogeneity affects breakthrough innovations and examines how strategic decision-making…

Abstract

Purpose

Drawing on the upper echelons theory, this study focuses on how top management team (TMT) heterogeneity affects breakthrough innovations and examines how strategic decision-making logic (including causation and effectuation) moderates the relationship between TMT heterogeneity and breakthrough innovation.

Design/methodology/approach

By conducting an empirical test of 227 sample firms in China, the authors applied linear hierarchical regression analysis to test the hypotheses on the TMT heterogeneityinnovation relationship and the moderating roles of causation and effectuation.

Findings

The empirical tests show that TMT heterogeneity positively affects breakthrough innovation, and both causation and effectuation positively moderate the positive relationship between TMT heterogeneity and breakthrough innovation. In addition, effectuation has a stronger moderating effect on the positive correlation between TMT heterogeneity and breakthrough innovation than causation.

Originality/value

This study extends the upper echelons theory to explain how the characteristics of TMTs affect firm innovation. Specifically, the authors explore the TMT heterogeneity–breakthrough innovation relationship from the perspectives of information processing and core competence and reveal the boundary condition of strategic decision-making logic in the correlation between TMT heterogeneity and breakthrough innovation. In this vein, the authors contribute to the literature by untangling the internal mechanisms between TMT heterogeneity and breakthrough innovation and extending the discussion on effectuation theory from the entrepreneurship domain to the innovation field. Furthermore, the research findings can provide helpful implications for TMTs to manage breakthrough innovation effectively.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 23 September 2024

Xiaoyu Yu, Wenjing Zhao and Yida Tao

The entrepreneurial process often cannot be explained by a single entrepreneurial theory. Instead, it is more likely the result of the interaction between various entrepreneurial…

Abstract

Purpose

The entrepreneurial process often cannot be explained by a single entrepreneurial theory. Instead, it is more likely the result of the interaction between various entrepreneurial behavior patterns and different environmental conditions. However, existing research has frequently overlooked the complexity inherent in the entrepreneurial phenomenon. Building on a configurational perspective, this study aims to examine how new ventures can use different behavioral configurations to achieve high performance amid various uncertain environments.

Design/methodology/approach

Based on the survey data from 143 new start-ups in China’s software industry, this study uses fuzzy-set qualitative comparative analysis (fsQCA).

Findings

This study jointly considers multiple entrepreneurial behaviors − causation, effectuation and entrepreneurial bricolage and different types of environmental uncertainty − state uncertainty, effect uncertainty and response uncertainty. The findings reveal three behavioral configurations for high/nonhigh new venture performance.

Originality/value

This study expands previous insights into the relationship between entrepreneurial behaviors and new venture performance from the perspective of configurational theory. Moreover, it offers new insights into the types of uncertainty, further refining our understanding of the uncertainties inherent in entrepreneurial activities.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 July 2024

Luca A. Breit and Christine K. Volkmann

This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends…

Abstract

Purpose

This study aims to enrich the field of entrepreneurial marketing (EM) by examining decision-making processes in the unique context of start-up ventures. To do so, it extends research on the distinct EM dimensions to the behavioral context by revealing how causation and effectuation principles shape entrepreneurs’ actions.

Design/methodology/approach

The study investigates EM behavior through 12 semi-structured interviews with 10 start-up founders and two founder associates in Germany. Use of established frameworks of the EM dimensions and causation/effectuation principles paves the way for an in-depth analysis. This methodology uncovers a distinct pattern of decision-making behaviors characterizing various activities within start-ups.

Findings

The findings show that causal logic prevails in start-ups’ EM, and effectual reasoning serves a complementary role. On the dimensional level, the findings reveal a predominant goal-driven focus on customer intensity and value-creation processes. Predictive logic guides opportunity focus, proactiveness and risk management, with nonpredictive behaviors providing adaptability. The principle of affordable loss is also evident in risk management. Finally, start-ups exhibit a blend of causal and effectual logic in innovativeness and resource-leveraging.

Originality/value

To the best of the authors’ knowledge, this study is the first to illuminate the interplay of behavioral logics in start-up firms’ EM by exploring the nuanced principles underpinning the decision-making processes of entrepreneurs. In doing so, it advances understanding of the marketing–entrepreneurship interface and enriches decision-making literature.

Details

Journal of Research in Marketing and Entrepreneurship, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-5201

Keywords

Open Access
Article
Publication date: 8 August 2024

Satya Prasad Padhi

The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support…

Abstract

Purpose

The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support advanced service employment. In addition, the increasing use of manufacturing products in services highlights additional, new service sector employment opportunities.

Design/methodology/approach

This paper investigates (1) the manufacturing and service interactions and (2) the investment behaviour in manufacturing using Auto-Regressive Distributed lags (ARDL) and Vector Autoregressive (VAR) models. The models allow for different specifications to study whether investment behaviour in manufacturing supports dynamic manufacturing and service interactions.

Findings

The results underpin how Kaldorian manufacturing as an engine of growth is still relevant in Indian growth and is key to achieving higher advanced employment, export-orientation and services and manufacturing nexus outcomes. What matters, though, is that manufacturing investments are to be guided mainly by intermediate goods specializations. The slowdown of these specializations, explaining the slowdown of manufacturing investment, is therefore, a concern.

Originality/value

A reinterpretation of manufacturing as an engine of growth in which primacy is given to investment behaviour in technical progress functions that can support the growth of specializations in manufacturing and such specialized service employment.

Open Access
Article
Publication date: 28 November 2023

Timothy Manyise, Domenico Dentoni and Jacques Trienekens

This paper aims to investigate the entrepreneurial behaviours exhibited by commercial smallholder farmers in Zimbabwe, focusing on their socio-economic characteristics, and…

Abstract

Purpose

This paper aims to investigate the entrepreneurial behaviours exhibited by commercial smallholder farmers in Zimbabwe, focusing on their socio-economic characteristics, and considers their implication for outcomes of livelihood resilience in a resource-constrained and turbulent rural context.

Design/methodology/approach

The study used survey data collected from 430 smallholder farmers in Masvingo province, Zimbabwe. Using a two-step cluster analysis, the study constructed a typology of farmers based on their entrepreneurial behaviour and socio-economic characteristics.

Findings

The results revealed that commercial smallholder farmers are heterogeneous in terms of their entrepreneurial behaviours. Four clusters were identified: non-entrepreneurial, goal-driven, means-driven and ambidextrous. Beyond their entrepreneurial behaviours, these clusters significantly differ in the socio-economic characterises (gender, age, education levels, farm size, proximity to the market and social connection) and farm performance (seasonal sales per hectare and farm income per hectare).

Research limitations/implications

The typology framework relating farmers’ entrepreneurial behaviours to their socio-economic characteristics and business performance is important to tailor and therefore improve the effectiveness of farmer entrepreneurship programmes and policies. In particular, tailoring farmer entrepreneurship education is crucial to distribute land, finance and market resources in purposive ways to promote a combination of smallholder farmers’ effectual and causal behaviours at an early stage of their farm ventures.

Originality/value

Researchers still know little about which farmers’ behaviours are entrepreneurial and how these behaviours manifest in action during their commercial farm activities. This research leverages effectuation and causation theory to unveil previously overlooked distinctions on farmers’ entrepreneurial behaviours, thereby enhancing a more grounded understanding of farmer entrepreneurship in a resource-constrained context.

Details

Journal of Entrepreneurship in Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 7 May 2024

Haonan Qi, Zhipeng Zhou, Javier Irizarry, Xiaopeng Deng, Yifan Yang, Nan Li and Jianliang Zhou

This study aims to modify the human factors analysis and classification system (HFACS) to make it suitable for collapse accident analysis in construction. Based upon the modified…

Abstract

Purpose

This study aims to modify the human factors analysis and classification system (HFACS) to make it suitable for collapse accident analysis in construction. Based upon the modified HFACS, distribution patterns of causal factors across multiple levels were discerned among causal factors of various stakeholders at construction sites. It explored the correlations between two causal factors from different levels and further determined causation paths from two perspectives of level and stakeholder.

Design/methodology/approach

The main research framework consisted of data collection, coding and analysis. Collapse accident reports were collected with adequate causation information. The modified HFACS was utilized for coding causal factors across all five levels in each case. A hybrid approach with two perspectives of level and stakeholder was proposed for frequency analysis, correlation analysis and path identification between causal factors.

Findings

Eight causal factors from external organizations at the fifth level were added to the original HFACS. Level-based correlation analyses and path identification provided safety managers with a holistic view of inter-connected causal factors across five levels. Stakeholder-based correlation analyses between causal factors from the fifth level and its non-adjacent levels were implemented based on client, government and third parties. These identified paths were useful for different stakeholders to develop specific safety plans for avoiding construction collapse accidents.

Originality/value

This paper fulfils an identified need to modify and utilize the HFACS model for correlation analysis and path identification of causal factors resulting in collapse accidents, which can provide opportunities for tailoring preventive and protective measures at construction sites.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 10 April 2024

Daniel R. Clark and Dan Li

This study aims to integrate entrepreneurship theories and acculturation perspectives into a unified lens to understand opportunity development by transnational entrepreneurs…

Abstract

Purpose

This study aims to integrate entrepreneurship theories and acculturation perspectives into a unified lens to understand opportunity development by transnational entrepreneurs (TNEs).

Design/methodology/approach

This study uses a conceptual method, considering how acculturation strategies of TNEs influence cross-cultural arbitrage.

Findings

We develop six propositions that define how acculturation strategies relate to different levels of cultural embeddedness of transnational entrepreneurs and ultimately influence the process by which the entrepreneur engages in cross-cultural arbitrage.

Originality/value

We are one of the first to integrate the sociology of immigrants with entrepreneurship to better understand how TNEs engage in cross-cultural arbitrage.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 5 June 2023

Peipei Wang, Peter Fenn and Kun Wang

This paper aims to devise a case-controlled method combined with Bradford Hill criteria for causal inference of contractual disputes in construction projects. It is a genuine…

Abstract

Purpose

This paper aims to devise a case-controlled method combined with Bradford Hill criteria for causal inference of contractual disputes in construction projects. It is a genuine attempt in a systematic method from research design to execution for causal issues where only observational data is available.

Design/methodology/approach

The authors located insufficient top management support as the putative pathogen of construction disputes based on a literature review, an interview and Delphi surveys. A questionnaire survey was then conducted to collect case-controlled data to ensure comparability, in which for each disputed project put in the experimental group, the authors sought for a dispute-free project of similar characteristics. The incidence rates of insufficient top management support in the experimental and control groups were then examined by Bradford Hill criteria as an alternative to the test of intervention effect.

Findings

The association of insufficient top management support and construction disputes was tested to conform with the Bradford Hill criteria with case-controlled data where applicable and logical deduction where statistical tests were not applicable. With a clear, positive, reasonable and statistically significant association, while excluding methodological biases, confounding and chance, the authors reached a causal verdict of insufficient top management support causing contractual disputes.

Originality/value

This paper supports the validity of applying a case-controlled method combined with Bradford Hill criteria in investigating causal issues in project management, especially the verdict of causal inference based on empirical data. In addition, the located root cause of contractual disputes could inform project management personnel with reasoned strategies for dispute avoidance.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

1 – 10 of 375