Effectuation and Causation in Science-based New Venture Creation: A Configurational Approach

Villani, Elisa; Linder, Christian; Grimaldi, Rosa

doi:10.5465/ambpp.2017.12440abstract

Cited by 43 publications

(37 citation statements)

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“…Such an approach allows the conclusion that effectuation and causation can be combined together differently during decision-making processes. It eventually will help us to reveal which of these combinations can lead to higher performance outcomes (Smolka et al, 2018;Villani, Linder, & Grimaldi, 2018;Yu et al, 2018).…”

Section: Literature Review: Effectuation Causation and Firm Perfomentioning

confidence: 99%

Navigating the emerging market context: Performance implications of effectuation and causation for small and medium enterprises during adverse economic conditions in Russia

Shirokova

Osiyevskyy

Laskovaia

et al. 2020

Strategic Entrepreneurship

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Research Summary This study aims to broaden the understanding of effectuation and causation by investigating their effectiveness for small and medium enterprises (SMEs) in the emerging market context during adverse economic conditions. We embrace a holistic view of the performance implications of these behavioral logics, theorizing and empirically testing their impact not only on the level of firm performance but also on its variability. The findings suggest that emerging market conditions create significant contingencies in the relationships between effectuation, causation, and firm performance, substantively affecting their effectiveness. In particular, we demonstrate that for the firms affected by adverse conditions, causation brings marginal performance improvements while also making it highly unreliable (variable), whereas effectuation leads to performance improvements coupled with higher reliability. Managerial Summary Entrepreneurial actions can be based on one of two behavioral logics: causation (rigorous forward‐looking analysis, relying on well‐prepared plans, pre‐defined goals, and required resources) or effectuation (leveraging the existing resources and controlling the environmental uncertainty through creating new markets, products, and opportunities). We investigate the effectiveness of these logics for Russian SMEs navigating adversity in the emerging market context. The results suggest that causation leads to performance improvements, yet these become marginal and highly unreliable if a firm finds itself in adverse conditions. Effectuation, on the other hand, is a costly and unreliable strategy in stable times, yet leads to reliable performance improvements in volatile contexts.

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Section: Literature Review: Effectuation Causation and Firm Perfomentioning

confidence: 99%

Navigating the emerging market context: Performance implications of effectuation and causation for small and medium enterprises during adverse economic conditions in Russia

Shirokova

Osiyevskyy

Laskovaia

et al. 2020

Strategic Entrepreneurship

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“…Technology entrepreneurship can be understood as the ability, competence and attitude to the transformation of new ideas, technologies and inventions into commercially viable products and services to create economic and social value through innovative business models (Ratinho, Harms, & Walsh, 2015;Villani, Linder, & Grimaldi, 2018). This concept has a fundamental importance in modern business; that's why it is necessary to take it into account in the field of education, teaching and learning (Henrekson & Rosenberg, 2001;Passiante & Romano, 2016).…”

Section: Resultsmentioning

confidence: 99%

Technology Entrepreneurship Aspects On The Master’s Degree Level Of Education

Oksana¹

2019

The European Proceedings of Social and Behavioural Sciences

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Technology entrepreneurship plays a significant role in the emergence of new high-tech businesses and the development of the country's economy as a whole. Concerning technological development of a country there is a need for entrepreneurship training, which has certain specificity. Universities in this case generate and adopt elements from the traditional courses of entrepreneurship to the course of technology entrepreneurship. The aim of this study is to explore the present landscape of educational market on the course "Technology entrepreneurship" taught on master degree level programs. The authors took the example of Russian and American universities: Lomonosov Moscow State University, ITMO University, MIT and Stanford. A comparative analysis of MIT, Stanford university and collaboration of Russian universities was carried out according to the criteria of teaching methods and the set of topics covered in courses. Based on the analysis similarities and peculiarities of the course were discovered. The elements of teaching methodology in common were revealed -project approach, teamwork principle, use of case methodology, panel presentations and group discussions, mentoring and coaching. The distribution on topics taught on courses at different universities according to the methodology of Tony Bailetti' clusters was investigated. It showed that all the universities work in all the clusters teaching technology entrepreneurship. 730▪ social innovation (explore strategies and methods for entrepreneurs to create an impact in the world beyond shareholder value); ▪ scaling (learn to navigate the challenges associated with rapid growth).Stanford University also has a Management Science and Engineering master program where it is possible to study courses related to technology entrepreneurship. Students can choose an area of specialty -Technology and Engineering Management. According to the results of the program, students gain skills in managing technical companies, innovations, rapidly developing technologies and dynamic markets. In the process of learning, the implementation of specialized course work is provided. Flexibility is its distinguishing characteristic. For its successful implementation, students deeply study technical organizations. This deep understanding contributes to the development of an entrepreneurial culture and successful innovation (Etzkowitz, 2013). Also within the course, students study methods of decisionmaking in conditions of uncertainty, strategic planning, and financial analysis. https://doi.org/10.15405/epsbs.2019.12.78 Corresponding Author: Evseeva Oksana Selection and peer-review under responsibility of the Organizing Committee of the conference eISSN: 2357-1330 735 The Technology Entrepreneurship course itself is not in any master program, but it is in the undergraduate programs. Thus, students have the opportunity to gain knowledge of technology entrepreneurship immediately at the undergraduate level. Courses related to technology entrepreneurship are available in Stanford University ...

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“…Empirical studies make similar claims about simultaneity (e.g. Reymen et al, 2015;Villani et al, 2018). Yet simultaneous use of causal and effectual decision-making logics presupposes contradictory conceptions of the social world.…”

Section: Ontological Commitments Matter: Problems With Pragmatismmentioning

confidence: 92%

Contesting effectuation theory: Why it does not explain new venture creation

Kitching

Rouse

2020

International Small Business Journal: Researching Entrepreneurs

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We evaluate whether the theory of effectuation provides – or could provide – a powerful causal explanation of the process of new venture creation. We do this by conducting an analysis of the principal concepts introduced by effectuation theory. Effectuation theory has become a highly influential cognitive science-based approach to understanding how nascent entrepreneurs start businesses under conditions of uncertainty. But by reducing the process of venture creation to a decision-making logic, effectuation theory pays insufficient regard to the substantial, pervasive and enduring influence of social-structural and cultural contexts on venture creation. Powerful explanations should conceive of venture creation as a sociohistorical process emergent from the interaction of structural, cultural and agential causal powers and must be able to theorise, fallibly, how nascent entrepreneurs form particular firms in particular times and places. We conclude that effectuation’s contribution to entrepreneurship scholarship is more limited than its advocates claim because it can offer only an under-socialised, ahistorical account of venture creation. Failure to theorise adequately the influence of structural and cultural contexts on venture creation implicitly grants nascent entrepreneurs excessive powers of agency.

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Effectuation and Causation in Science-based New Venture Creation: A Configurational Approach

Cited by 43 publications

References 0 publications

Navigating the emerging market context: Performance implications of effectuation and causation for small and medium enterprises during adverse economic conditions in Russia

Navigating the emerging market context: Performance implications of effectuation and causation for small and medium enterprises during adverse economic conditions in Russia

Technology Entrepreneurship Aspects On The Master’s Degree Level Of Education

Contesting effectuation theory: Why it does not explain new venture creation

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