University of Twente Student Theses
The Dynamic Application of Effectual and Causal Decision-making in Low-Uncertainty New Venture Creation
Gardien, J M (2018) The Dynamic Application of Effectual and Causal Decision-making in Low-Uncertainty New Venture Creation.
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| Abstract: | The theory of effectuation would benefit greatly from more empirical studies researching the application of effectual and causal decision-making in new venture creation. Furthermore, the theory would benefit from research identifying what conditions drive entrepreneurs to apply causal or effectual decision-making. This current study makes a contribution here by exploring the role of effectuation in new venture creation with low-uncertainty, focusing on what dimensions of effectuation and causation play a role in the decision-making of entrepreneurs across separate stages of new venture creation. A qualitative analysis on the decision-making of both novice and expert entrepreneurs provides new insights in how effectuation and causation are dynamically applied in the process of new venture creation. The theory of effectuation would benefit greatly from more empirical studies researching the application of effectual and causal decision-making in new venture creation. Furthermore, the theory would benefit from research identifying what conditions drive entrepreneurs to apply causal or effectual decision-making. This current study makes a contribution here by exploring the role of effectuation in new venture creation with low-uncertainty, focusing on what dimensions of effectuation and causation play a role in the decision-making of entrepreneurs across separate stages of new venture creation. A qualitative analysis on the decision-making of both novice and expert entrepreneurs provides new insights in how effectuation and causation are dynamically applied in the process of new venture creation. The results yield the following three insights: 1) entrepreneurs apply both effectuation and causation when creating their venture in an environment that has low-uncertainty. 2) Novice entrepreneurs apply more effectual decision-making in the beginning of new venture creation but shift to more causal decision-making as their venture mature, whereas expert entrepreneurs apply a mix of effectual and causal methods throughout the new venture creation process. 3) The need to attract additional finance during new venture development forces entrepreneurs to apply more causal decision-making. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 70 social sciences in general, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/75833 |
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