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.
Bibliographical noteThis 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.
- process research
- new venture creation