Decision‐making logics and high‐tech entrepreneurial opportunity identification: The mediating role of strategic knowledge integration

Abstract

In the era of Industry 4.0 and Made in China 2025 initiatives, this research is focused on exploring how entrepreneurial decision‐making logics contribute to opportunity identification by combining effectuation theory and knowledge‐based theory under high uncertainty through strategic knowledge integration in emerging economies, such as the Chinese economy. Empirical data were collected from 196 entrepreneurs and top executives in Chinese high‐tech new ventures using an interview survey. An established mediation model's assessment approach was used to test hypotheses through multivariate linear regression analyses. The analysis results show that both effectuation and causation have positive effects on opportunity identification. Also, emergent/planned knowledge integration plays a fully mediating role in the relationship between effectuation/causation and opportunity identification. This research contributes to the literature by providing empirical evidence to explain the problem of entrepreneurial opportunity identification under high uncertainty through the lens of effectuation theory. It facilitates the development of effectuation theory and enriches the literature on strategic knowledge integration. Moreover, our findings have important managerial implications for high‐tech new ventures to effectively recognize new opportunities in the context of emerging economies.

Turning entrepreneurial networks into business model innovation for start-ups

“…Entrepreneurial networks relate positively to BMI 2.3 Influence of causation and effectuation on business model innovation When beginning to create a BM, entrepreneurs need to make decisions that influence start-up innovation (Zhou et al, 2022). Causation and effectuation, as two basic decision-making logics, impact the choices of resource management methods in start-up BMI (Futterer et al, 2018;Sarasvathy, 2001;Yang et al, 2021;Guo et al, 2020). Causation is a plan-oriented strategy.…”

“…Causation and effectuation enable effective resource management from entrepreneurial networks in BMI (Guo et al, 2016a). In addition, organizational resources are the foundation of decision-making logic (Guo et al, 2020;Servantie and Rispal, 2018). Therefore, causation and effectuation are important potential mediators linking entrepreneurial networks and BMI.…”

New venture entrepreneurship and context in East Asia: a systematic literature review

“…Furthermore, effectuation approaches to entrepreneurship based on goal selection within a given set of means have been examined intensively in the China context. The effectuation approach is found to have a positive influence on various outcomes, such as opportunity identification (Guo et al, 2020) and new venture performance (Cai et al, 2017b). However, for an effectuation approach to play an effective role, new ventures need to engage in exploratory learning (Cai et al, 2014(Cai et al, , 2017b.…”

“…A different stream of research has examined how East Asian entrepreneurs develop the capabilities and strategies to use their resources. There is little doubt that capabilities and strategies to utilize resources are central to the success of entrepreneurial firms (e.g., Guo et al, 2020). However, due to different resource endowments across East Asian countries, different organizational capabilities are emphasized in the literature.…”

A Study on Effectual Decision Making of Construction Projects in Islamabad, Pakistan: Analyzing the Influence of Risk-Taking Behavior, Leadership Skills, and Business Case Implementation.

“…Causal logic was presented by (Sarasvathy, 2001) on the grounds of its inadequacy in the process of entrepreneurship and argues that risk and uncertainties are inherent in the process of entrepreneurship. Logic of effectuation describe the future which can be controlled by actions and imagine a potential result that can generate opportunities for them (Guo et al, 2020).…”