Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis

Shirokova, Galina; Morris, Michael H.; Laskovaia, Anastasiia; Micelotta, Evelyn

doi:10.1016/j.jbusres.2021.02.045

Cited by 44 publications

(28 citation statements)

References 76 publications

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“…This motivated this article to investigate if certain entrepreneurial behaviors can reinforce or weaken sustainability orientation in existing sustainability ventures. Causal and effectual behaviors are chosen as entrepreneurial behaviors of specific interest for this study as they experience increasing attention in entrepreneurship research and practice (e.g., Shirokova et al, 2021; Tolstoy et al, 2021). Additionally, effectuation is associated with a growing flexibility and eagerness to experiment in entrepreneurial ventures (Chandler et al, 2011; Sarasvathy, 2001).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Reinforcing or counterproductive behaviors for sustainable entrepreneurship? The influence of causation and effectuation on sustainability orientation

Johnson¹,

Hoerisch

2021

Bus Strat Env

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Effectuation, as an emerging theoretical approach in entrepreneurship, is receiving increasing attention in research and practice. Still, the integration of effectuation in sustainable entrepreneurship literature is sparse, and its influence on the sustainability orientation of ventures has so far not been examined in the academic literature. This article, therefore, investigates the influence that causal and effectual behaviors have on the sustainability orientation of established entrepreneurial ventures. This is important to consider, especially if entrepreneurial behaviors were to influence sustainability orientation negatively, this could potentially thwart the venture's ability to create lasting sustainability value. Based on a quantitative survey among 140 sustainable ventures, we find support for the hypothesis that causal behaviors reinforce sustainability orientation. We demonstrate that effectual behaviors exert a positive influence on sustainability orientation as well. Thus, the experimentation and flexibility of goals that ventures possess reflect that effectual behaviors are not at the expense of sustainability orientation. These results can inform sustainable entrepreneurs and educators to use both behaviors purposefully and highlight causal and effectual behaviors are equally important elements for sustainable entrepreneurship education.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Reinforcing or counterproductive behaviors for sustainable entrepreneurship? The influence of causation and effectuation on sustainability orientation

Johnson¹,

Hoerisch

2021

Bus Strat Env

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“…Finally, environmental dynamism strengthens the relationship between effectuation and BMI. The relationship between decision logic and performance is significantly influenced by environmental contexts (Shirokova et al, 2021). Prior studies indicate that effectuation is more beneficial for firm performance in high levels of environmental uncertainty (Deligianni et al, 2017; Smolka et al, 2018; Yu et al, 2018).…”

Section: Discussionmentioning

confidence: 99%

Entrepreneurial networks, effectuation and business model innovation of startups: The moderating role of environmental dynamism

Jie

Morrison

et al. 2022

Creat Innov Manage

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The effects of entrepreneurial networks and effectuation on business model innovation (BMI) are widely recognized. However, the existing researches focus on the driving of entrepreneurial networks (external factor) and effectuation (internal factor) on BMI separately. Few studies explore the combination of internal and external drivers. Consequently, how entrepreneurial networks' resource translates into the BMI in start-ups remains unclear. Based on RBV, this research explored the impacts of entrepreneurial networks on BMI through effectuation in dynamic environments. A survey of 408 start-ups in China reveals that (1) entrepreneurial networks have positive impacts on BMI. Particularly, network size and network strength positively impact BMI. (2) Effectuation plays a mediating role in the relationship between entrepreneurial networks and BMI. (3) Environmental dynamism strengthens the relationship between effectuation and BMI. The findings enrich the theoretical understanding of the relationships among entrepreneurial networks, effectuation and BMI and provide practical implications for start-up BMI in dynamic environments.

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“…Moreover, there is a lack of consensus about the appropriate methods for measuring alliance performance (Carton & Hofer, 2010). Nevertheless, objective indicators (e.g., increases in revenue, profits, and market value) (Do & Mai, in press), along with subjective measures (e.g., the development of new products or services and customer satisfaction) (Shirokova et al, 2021), can be employed to evaluate alliance performance. Many studies include both objective and subjective measures of alliance performance (Haber & Reichel, 2005).…”

Section: Firm Performancementioning

confidence: 99%

Examining the relationship between strategic alliances and the performance of small entrepreneurial firms in telecommunications

et al. 2022

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An alliance is an effective strategy for knowledge-intensive businesses in competition. Yet, little is known about how strategic alliances work within small firms in the telecommunications industry, which plays an essential part in the COVID-19 pandemic infrastructure. The purpose of this article is to examine the impact of strategic alliance on firm performance among small entrepreneurial firms (SEFs) in the telecommunications industry. The study uses structural equation modeling to analyze primary data obtained from a sample of 74 small entrepreneurial firms in the telecommunications sector. We find that strategic alliances significantly and positively impact partners' performance in terms of financial, operational, and organizational effectiveness among small entrepreneurial firms in the telecommunication sector. Drawing on the findings, we recommend small entrepreneurial firms pay particular attention to pre-alliance and post-alliance issues, including partner similarity, alliance experience, partner' reputation, complementary skills, industry scope, commitment to improving trust and skill, and collaboration to boost performance. In addition, based on the results of this study, we discuss research implications for challenges of telecommunications SEFs in the time of the COVID-19 pandemic crisis.

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Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis

Cited by 44 publications

References 76 publications

Reinforcing or counterproductive behaviors for sustainable entrepreneurship? The influence of causation and effectuation on sustainability orientation

Reinforcing or counterproductive behaviors for sustainable entrepreneurship? The influence of causation and effectuation on sustainability orientation

Entrepreneurial networks, effectuation and business model innovation of startups: The moderating role of environmental dynamism

Examining the relationship between strategic alliances and the performance of small entrepreneurial firms in telecommunications

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