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Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process

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  • Jiang, Yi
  • Tornikoski, Erno T.

Abstract

In this study, drawing on effectuation theory, we combine analytical strategies for process data to examine inductively and theorize how founder teams' perceptions of uncertainty and behavioral logics develop during new venture creation processes. The results reveal four phases and suggest a possible evolution from a causal conditional relationship between perceived uncertainty and behavioral logics to an integrative relationship. We bring to light the notion of temporality and unanticipated consequences, discuss their central roles in perceived uncertainty, effectuation, and causation, and offer revelatory insights into why and when effectuation is used in relation to uncertainty and entrepreneurial action.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:jbvent:v:34:y:2019:i:1:p:23-40
    DOI: 10.1016/j.jbusvent.2018.06.002
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    7. Margot Racat & Antonin Ricard & René Mauer, 2024. "Effectuation and causation models: an integrative theoretical framework," Small Business Economics, Springer, vol. 62(3), pages 879-893, March.
    8. Sipos, Norbert & Lukovszki, Lívia & Rideg, András & Vörös, Zsófia, 2023. "A vállalkozói döntéshozatali logikák kognitív megközelítése [Entrepreneurial effectuation through the lens of cognitive processes]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-563.
    9. Mika Gabrielsson & Markus Raatikainen & Saara Julkunen, 2022. "Accelerated Internationalization Among Inexperienced Digital Entrepreneurs: Toward a Holistic Entrepreneurial Decision-Making Model," Management International Review, Springer, vol. 62(2), pages 137-168, April.
    10. Dutta, Tanurima & Packard, Mark D., 2024. "The needle of charisma and the threads of trust: Advancing effectuation theory's crazy quilt principle," Journal of Business Venturing, Elsevier, vol. 39(4).
    11. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
    12. David J. Rapp & Michael Olbrich, 2021. "On predictive entrepreneurial action in uncertain, ill-structured conditions," Review of Managerial Science, Springer, vol. 15(7), pages 1961-1979, October.
    13. 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.
    14. 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).
    15. Jiang, Yi Dragon & Straub, Caroline & Klyver, Kim & Mauer, René, 2021. "Unfolding refugee entrepreneurs' opportunity-production process — Patterns and embeddedness," Journal of Business Venturing, Elsevier, vol. 36(5).
    16. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    17. Scazziota, Vanessa & Serra, Fernando & Sarkar, Soumodip & Guerrazzi, Luiz, 2023. "The antecedents of entrepreneurial action: A meta-synthesis on effectuation and bricolage," Journal of Business Research, Elsevier, vol. 155(PA).
    18. Peng, Xue Bing & Liu, Yue Ling & Jiao, Qi Qi & Feng, Xiao Bin & Zheng, Bei, 2020. "The nonlinear effect of effectuation and causation on new venture performance: The moderating effect of environmental uncertainty," Journal of Business Research, Elsevier, vol. 117(C), pages 112-123.
    19. Slade Shantz, Angelique & Zietsma, Charlene & Kistruck, Geoffrey M. & Cruz, Luciano Barin, 2024. "Exploring the relative efficacy of ‘within-logic contrasting’ and ‘cross-logic analogizing’ framing tactics for adopting new entrepreneurial practices in contexts of poverty," Journal of Business Venturing, Elsevier, vol. 39(1).
    20. Shirokova, Galina & Morris, Michael H. & Laskovaia, Anastasiia & Micelotta, Evelyn, 2021. "Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis," Journal of Business Research, Elsevier, vol. 129(C), pages 169-182.
    21. Emami, Amir & Yoruk, Esin & Jones, Paul, 2023. "The interplay between market need urgency, entrepreneurial push and pull insights and opportunity confidence in the course of new venture creation in the developing country context," Journal of Business Research, Elsevier, vol. 163(C).
    22. Kurdoglu, Rasim Serdar & Lerner, Daniel & Ates, Nufer Yasin, 2022. "Unsticking the rationality stalemate: Motivated reasoning, reality, and irrationality," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    23. Dan Long & Houhong Wang & Peili Wang, 2021. "Built to Sustain: The Effect of Entrepreneurial Decision-Making Logic on New Venture Sustainability," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    24. Yalong Wei & Dan Long & Lihua Fu, 2024. "The Influence of Intuitive-Analytical Cognitive Styles on Entrepreneurial Decision-Making Logic: Moderated by Environmental Uncertainty," SAGE Open, , vol. 14(3), pages 21582440241, August.
    25. 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).

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    More about this item

    Keywords

    Unanticipated consequence; Temporality; Perceived uncertainty; Effectuation; Entrepreneurial action; New venture creation process;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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