Understanding Dynamics of Strategic Decision Making in Venture Creation: A Process Study of Effectuation and Causation
Isabelle M.M.J. Reymen, Petra Andries, Hans Berends, Rene Mauer, Ute Stephan, Elco van Burg
Strategic Entrepreneurship Journal · 2015 · Volume 9 · Issue 4
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 that extends the literature on strategic decision making in venture creation. Copyright © 2015 Strategic Management Society.
Keywords
decision making, effectuation, new venture creation, uncertainty, process research
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