IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v8y2018i1p11n3.html
   My bibliography  Save this article

Entrepreneurial Causation vs. Effectuation in a Business Incubation Context: Implications for Recruiting Policy and Management

Author

Listed:
  • Høvig Øystein

    (Western Norway University of Applied Sciences, 5063Bergen, Norway)

  • Pettersen Inger Beate

    (Western Norway University of Applied Sciences, 5063Bergen, Norway)

  • Aarstad Jarle

    (Western Norway University of Applied Sciences, 5063Bergen, Norway)

Abstract

Many business incubators aim to provide network resources and to stimulate the sharing of ideas, but previous research has shown that limited knowledge exchange takes place between incubated firms. In this paper, we examine if an entrepreneurial approach of causation vs. effectuation is associated with the proclivity to share ideas between firms and the perceived value of such inter-tenant network resources. A causation approach implies that entrepreneurs focus on a predefined goal and then aim to find the means to reach this goal. An effectuation approach implies that entrepreneurs focus on the means at hand, which they aim to materialize into one or more goals that were not necessarily predefined. We carry out a multiple case study of start-ups in a business incubator and find that entrepreneurs taking an effectuation approach have a proclivity to share ideas and they perceive such network resources as having a high value. Entrepreneurs taking a causation approach, on the other hand, have limited proclivity to share ideas with other incubator firms and they perceive such network resources as having a relatively low value. The findings are striking since many incubators implicitly or explicitly tend to recruit firms taking a causation approach by selecting candidates with a rigorous and predefined business plan. We discuss the findings’ implications for incubator recruiting policy and management.

Suggested Citation

  • Høvig Øystein & Pettersen Inger Beate & Aarstad Jarle, 2018. "Entrepreneurial Causation vs. Effectuation in a Business Incubation Context: Implications for Recruiting Policy and Management," Entrepreneurship Research Journal, De Gruyter, vol. 8(1), pages 1-11, January.
    • Handle: RePEc:bpj:erjour:v:8:y:2018:i:1:p:11:n:3
    DOI: 10.1515/erj-2017-0065
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2017-0065
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2017-0065?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fischer, Eileen & Reuber, A. Rebecca, 2011. "Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?," Journal of Business Venturing, Elsevier, vol. 26(1), pages 1-18, January.
    2. Inger Pettersen & Anita Tobiassen, 2012. "Are born globals really born globals? The case of academic spin-offs with long development periods," Journal of International Entrepreneurship, Springer, vol. 10(2), pages 117-141, June.
    3. Bliemel Martin J. & McCarthy Ian P. & Maine Elicia M.A., 2014. "An Integrated Approach to Studying Multiplexity in Entrepreneurial Networks," Entrepreneurship Research Journal, De Gruyter, vol. 4(4), pages 367-402, October.
    4. Sleutjes Bart & Schutjens Veronique, 2012. "The Added Value of Neighborhood-Based Support Networks to Local Firm Growth," Entrepreneurship Research Journal, De Gruyter, vol. 2(2), pages 1-31, March.
    5. Spithoven, André & Teirlinck, Peter, 2015. "Internal capabilities, network resources and appropriation mechanisms as determinants of R&D outsourcing," Research Policy, Elsevier, vol. 44(3), pages 711-725.
    6. Christine Cooper & Stephanie Hamel & Stacey Connaughton, 2012. "Motivations and obstacles to networking in a university business incubator," The Journal of Technology Transfer, Springer, vol. 37(4), pages 433-453, August.
    7. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    8. Brettel, Malte & Mauer, René & Engelen, Andreas & Küpper, Daniel, 2012. "Corporate effectuation: Entrepreneurial action and its impact on R&D project performance," Journal of Business Venturing, Elsevier, vol. 27(2), pages 167-184.
    9. Phillip Phan & Donald S. Siegel & Mike Wright, 2016. "Science Parks and Incubators: Observations, Synthesis and Future Research," World Scientific Book Chapters, in: Phillip H Phan & Sarfraz A Mian & Wadid Lamine (ed.), TECHNOLOGY ENTREPRENEURSHIP AND BUSINESS INCUBATION Theory • Practice • Lessons Learned, chapter 9, pages 249-272, World Scientific Publishing Co. Pte. Ltd..
    10. Metzger Matthew L. & King Jesse S., 2015. "Extending Constructivist Perspectives on Opportunity Production Through An Incorporation of Effectual Logics," Entrepreneurship Research Journal, De Gruyter, vol. 5(4), pages 323-345, October.
    11. Lechner, Christian & Dowling, Michael & Welpe, Isabell, 2006. "Firm networks and firm development: The role of the relational mix," Journal of Business Venturing, Elsevier, vol. 21(4), pages 514-540, July.
    12. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    13. Chandler, Gaylen N. & DeTienne, Dawn R. & McKelvie, Alexander & Mumford, Troy V., 2011. "Causation and effectuation processes: A validation study," Journal of Business Venturing, Elsevier, vol. 26(3), pages 375-390, May.
    14. Tamara Galkina & Sylvie Chetty, 2015. "Effectuation and Networking of Internationalizing SMEs," Management International Review, Springer, vol. 55(5), pages 647-676, October.
    15. Christian Lechner & Michael Dowling, 2003. "Firm networks: external relationships as sources for the growth and competitiveness of entrepreneurial firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(1), pages 1-26, January.
    16. Greg Fisher, 2012. "Effectuation, Causation, and Bricolage: A Behavioral Comparison of Emerging Theories in Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 36(5), pages 1019-1051, September.
    17. Jarle Aarstad & Sven A. Haugland & Arent Greve, 2010. "Performance Spillover Effects in Entrepreneurial Networks: Assessing a Dyadic Theory of Social Capital," Entrepreneurship Theory and Practice, , vol. 34(5), pages 1003-1020, September.
    18. Paul Westhead & Deniz Ucbasaran & Mike Wright & Martin Binks, 2005. "Novice, Serial and Portfolio Entrepreneur Behaviour and Contributions," Small Business Economics, Springer, vol. 25(2), pages 109-132, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).
    2. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    3. Engel, Yuval & Kaandorp, Mariëtte & Elfring, Tom, 2017. "Toward a dynamic process model of entrepreneurial networking under uncertainty," Journal of Business Venturing, Elsevier, vol. 32(1), pages 35-51.
    4. Tamara Galkina & Irina Atkova, 2020. "Effectual Networks as Complex Adaptive Systems: Exploring Dynamic and Structural Factors of Emergence," Entrepreneurship Theory and Practice, , vol. 44(5), pages 964-995, September.
    5. Marko Matalamäki & Tero Vuorinen & Elina Varamäki & Kirsti Sorama, 2017. "Business Growth in Established Companies; Roles of Effectuation and Causation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 123-148, June.
    6. Mumford, Jonathan Van & Zettinig, Peter, 2022. "Co-creation in effectuation processes: A stakeholder perspective on commitment reasoning," Journal of Business Venturing, Elsevier, vol. 37(4).
    7. Jiang, Yi & Tornikoski, Erno T., 2019. "Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process," Journal of Business Venturing, Elsevier, vol. 34(1), pages 23-40.
    8. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    9. Yi Jiang & Charles-Clemens Rüling, 2019. "Opening the Black Box of Effectuation Processes: Characteristics and Dominant Types," Entrepreneurship Theory and Practice, , vol. 43(1), pages 171-202, January.
    10. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.
    11. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    12. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.
    13. Koller, Sonia & Stephan, Ute & Ahmetoglu, Gorkan, 2022. "Ecological rationality and entrepreneurship: How entrepreneurs fit decision logics to decision content and structure," Journal of Business Venturing, Elsevier, vol. 37(4).
    14. Tobias Frese & Ingmar Geiger & Florian Dost, 2020. "An empirical investigation of determinants of effectual and causal decision logics in online and high-tech start-up firms," Small Business Economics, Springer, vol. 54(3), pages 641-664, March.
    15. Denis A. Grégoire & Naïma Cherchem, 2020. "A structured literature review and suggestions for future effectuation research," Small Business Economics, Springer, vol. 54(3), pages 621-639, March.
    16. Elżbieta Duliniec, 2018. "Mechanizmy decyzyjne w przedsiębiorstwach wcześnie umiędzynarodowionych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 99-128.
    17. Saras D. Sarasvathy, 2021. "The Middle Class of Business: Endurance as a Dependent Variable in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1054-1082, September.
    18. Richard A. Martina, 2020. "Toward a theory of affordable loss," Small Business Economics, Springer, vol. 54(3), pages 751-774, March.
    19. Igor Laine & Tamara Galkina, 2017. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 905-941, September.
    20. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:8:y:2018:i:1:p:11:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.