Understanding dynamics of strategic decision-making in venture creation: a process study of effectuation and causation

Isabelle Reymen, Petra Andries, Hans Berends, Rene Mauer, Ute Stephan, Elco van Burg

Research output: Contribution to journalArticle

Abstract

This study draws upon effectuation and causation as examples of planning-based and flexible decision-making logics, and investigates dynamics in the use of both logics. The study applies a longitudinal process research approach to investigate strategic decision-making in new venture creation over time. Combining qualitative and quantitative methods, we analyze 385 decision events across nine technology-based ventures. Our observations suggest a hybrid perspective on strategic decision-making, demonstrating how effectuation and causation logics are combined, and how entrepreneurs’ emphasis on these logics shifts and re-shifts over time. We induce a dynamic model which extends the literature on strategic decision-making in venture creation.
Original languageEnglish
Pages (from-to)351–379
Number of pages29
JournalStrategic entrepreneurship journal
Volume9
Issue number4
Early online date16 Jul 2015
DOIs
Publication statusPublished - Dec 2015

Bibliographical note

This is the peer reviewed version of the following article: Reymen, I., Andries, P., Berends, H., Mauer, R., Stephan, U., & van Burg, E. (2015). Understanding dynamics of strategic decision-making in venture creation: a process study of effectuation and causation. Strategic entrepreneurship journal, Early view, which has been published in final form at http://dx.doi.org/10.1002/sej.1201. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

Funding: European Community grant: ENT/EFORCE.

Keywords

  • entrepreneurship
  • decision-making
  • uncertainity
  • process research
  • effectuation
  • new venture creation

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