IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i10p8310-d1151135.html
   My bibliography  Save this article

Driving New Venture Sustainability: A Study Based on Configuration Theory and Resource Orchestration Theory

Author

Listed:
  • Ruiqi Song

    (School of Management, Hefei University of Technology, Hefei 230009, China)

  • Lingduan Xiang

    (School of Management, Hefei University of Technology, Hefei 230009, China)

Abstract

New ventures often face the challenge of resource scarcity, and how to overcome the resource constraint problem and improve new venture sustainability has been a long-standing concern of scholars and practitioners. Most existing studies have explored the impact on the financial performance of new ventures of a single factor, and few studies have focused on the impact of the configuration effect of multiple factors on new venture sustainability. In this paper, based on the configuration theory and resource orchestration theory, we use fuzzy-set qualitative comparative analysis (fsQCA) with a sample of 189 entrepreneurs to explore the mechanisms driving the configuration effects of multiple factors of entrepreneurial decision-making logic, resource bundling, and environmental uncertainty on new venture sustainability. The empirical results show that the paths to achieve high new venture sustainability are diverse and equivalent, and effectuation is a core antecedent condition in all paths. There are four conditional configurations of the drivers of high sustainability in new ventures, including dual-logic resource integration, market-driven resource integration, means–resource innovation in emerging markets, and resource-rich or resource-creating integration under dual logic.

Suggested Citation

  • Ruiqi Song & Lingduan Xiang, 2023. "Driving New Venture Sustainability: A Study Based on Configuration Theory and Resource Orchestration Theory," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:10:p:8310-:d:1151135
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/10/8310/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/10/8310/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. João M. Lopes & Sofia Gomes & Rosselyn Pacheco & Elizabete Monteiro & Carolina Santos, 2022. "Drivers of Sustainable Innovation Strategies for Increased Competition among Companies," Sustainability, MDPI, vol. 14(9), pages 1-18, May.
    3. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    4. Yaqun Yi & Yuan Li & Michael A. Hitt & Yi Liu & Zelong Wei, 2016. "The influence of resource bundling on the speed of strategic change: Moderating effects of relational capital," Asia Pacific Journal of Management, Springer, vol. 33(2), pages 435-467, June.
    5. Mas-Tur, Alicia & Pinazo, Pablo & Tur-Porcar, Ana María & Sánchez-Masferrer, Manuel, 2015. "What to avoid to succeed as an entrepreneur," Journal of Business Research, Elsevier, vol. 68(11), pages 2279-2284.
    6. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    7. Clint Chadwick & Janice F. Super & Kiwook Kwon, 2015. "Resource orchestration in practice: CEO emphasis on SHRM, commitment-based HR systems, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 360-376, March.
    8. Jessica Alzamora-Ruiz & María Fuentes-Fuentes & Myriam Martinez-Fiestas, 2021. "Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1917-1943, December.
    9. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    10. 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.
    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. 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.
    13. Wu, Liang & Liu, Heng & Zhang, Jianqi, 2017. "Bricolage effects on new-product development speed and creativity: The moderating role of technological turbulence," Journal of Business Research, Elsevier, vol. 70(C), pages 127-135.
    14. Salzmann, Oliver & Ionescu-somers, Aileen & Steger, Ulrich, 2005. "The Business Case for Corporate Sustainability:: Literature Review and Research Options," European Management Journal, Elsevier, vol. 23(1), pages 27-36, February.
    15. Werhahn, Dorothea & Mauer, René & Flatten, Tessa C. & Brettel, Malte, 2015. "Validating effectual orientation as strategic direction in the corporate context," European Management Journal, Elsevier, vol. 33(5), pages 305-313.
    16. Smail Benzidia & Naouel Makaoui, 2020. "Improving SMEs performance through supply chain flexibility and market agility: IT orchestration perspective," Post-Print hal-03029925, HAL.
    17. Anastasiia Laskovaia & Galina Shirokova & Michael H. Morris, 2017. "Erratum to: National culture, effectuation, and new venture performance: global evidence from student entrepreneurs," Small Business Economics, Springer, vol. 49(3), pages 711-715, October.
    18. Ortrud Lessmann & Felix Rauschmayer, 2013. "Re-conceptualizing Sustainable Development on the Basis of the Capability Approach: A Model and Its Difficulties," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 14(1), pages 95-114, February.
    19. Deng, Cheng & Yang, Jianjun & Su, Zhongfeng & Zhang, Shuman, 2021. "The double-edged sword impact of effectuation on new product creativity: The moderating role of competitive intensity and firm size," Journal of Business Research, Elsevier, vol. 137(C), pages 1-12.
    20. Berends, Hans & van Burg, Elco & Garud, Raghu, 2021. "Pivoting or persevering with venture ideas: Recalibrating temporal commitments," Journal of Business Venturing, Elsevier, vol. 36(4).
    21. Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
    22. Anastasiia Laskovaia & Galina Shirokova & Michael H. Morris, 2017. "National culture, effectuation, and new venture performance: global evidence from student entrepreneurs," Small Business Economics, Springer, vol. 49(3), pages 687-709, October.
    23. Javier Martínez-Falcó & Bartolomé Marco-Lajara & Eduardo Sánchez-García & Luis A. Millan-Tudela, 2023. "Sustainable Development Goals in the Business Sphere: A Bibliometric Review," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    24. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2008. "Outlines of a behavioral theory of the entrepreneurial firm," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 37-59, April.
    25. C. K. Prahalad & Gary Hamel, 1994. "Strategy as a field of study: Why search for a new paradigm?," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 5-16, June.
    26. Welter, Christopher & Kim, Sungho, 2018. "Effectuation under risk and uncertainty: A simulation model," Journal of Business Venturing, Elsevier, vol. 33(1), pages 100-116.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Masoud Karami & Ben Wooliscroft & Maryam Hejazinia, 2024. "Struggling and Thriving: Effectuation in Social and Economic Stress," Sustainability, MDPI, vol. 16(4), pages 1-16, February.
    2. Adriano Martins de Souza & Fabio Neves Puglieri & Antonio Carlos de Francisco, 2024. "Competitive Advantages of Sustainable Startups: Systematic Literature Review and Future Research Directions," Sustainability, MDPI, vol. 16(17), pages 1-24, September.

    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. 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.
    2. Fischer, Denise & Greven, Andrea & Tornow, Mark & Brettel, Malte, 2021. "On the value of effectuation processes for R&D alliances and the moderating role of R&D alliance experience," Journal of Business Research, Elsevier, vol. 135(C), pages 606-619.
    3. Cherbib, Jihene, 2024. "Exploring the interplay between entrepreneurial orientation, causation and effectuation under unexpected covid-19 uncertainty: Insights from large French banks," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Chetty, Sylvie & Martín Martín, Oscar & Bai, Wensong, 2024. "Causal foreign market selection and effectual entry decision-making: The mediating role of collaboration to enhance international performance," Journal of Business Research, Elsevier, vol. 172(C).
    5. 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.
    6. Jessica Alzamora-Ruiz & María Fuentes-Fuentes & Myriam Martinez-Fiestas, 2021. "Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1917-1943, December.
    7. Sylvia Hubner & Fabian Most & Jochen Wirtz & Christine Auer, 2022. "Narratives in entrepreneurial ecosystems: drivers of effectuation versus causation," Small Business Economics, Springer, vol. 59(1), pages 211-242, June.
    8. Jenny María Ruiz-Jiménez & Matilde Ruiz-Arroyo & María Mar Fuentes-Fuentes, 2021. "The impact of effectuation, causation, and resources on new venture performance: novice versus expert entrepreneurs," Small Business Economics, Springer, vol. 57(4), pages 1761-1781, December.
    9. 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).
    10. Szambelan, Sebastian & Jiang, Yi & Mauer, René, 2020. "Breaking through innovation barriers: Linking effectuation orientation to innovation performance," European Management Journal, Elsevier, vol. 38(3), pages 425-434.
    11. 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.
    12. 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.
    13. Masoud Karami & Ben Wooliscroft & Lisa McNeill, 2020. "Effectuation and internationalisation: a review and agenda for future research," Small Business Economics, Springer, vol. 55(3), pages 777-811, October.
    14. Yanxia Li & Bo Zou & Feng Guo & Jinyu Guo, 2022. "Academic entrepreneurs’ effectuation logic, role innovation, and academic entrepreneurship performance: an empirical study," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 49-72, March.
    15. 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.
    16. Cowden, Birton & Karami, Masoud & Tang, Jintong & Ye, Wenping & Adomako, Samuel, 2023. "The gendered effects of effectuation," Journal of Business Research, Elsevier, vol. 155(PB).
    17. Gry Agnete Alsos & Tommy Høyvarde Clausen & René Mauer & Stuart Read & Saras D. Sarasvathy, 2020. "Effectual exchange: from entrepreneurship to the disciplines and beyond," Small Business Economics, Springer, vol. 54(3), pages 605-619, March.
    18. Magdalena Markowska & Dietmar Grichnik & Jan Brinckmann & Diana Kapsa, 2019. "Strategic orientations of nascent entrepreneurs: antecedents of prediction and risk orientation," Small Business Economics, Springer, vol. 53(4), pages 859-878, December.
    19. Stefano D’Angelo & Angelo Cavallo & Antonio Ghezzi & Francesco Di Lorenzo, 2024. "Understanding corporate entrepreneurship in the digital age: a review and research agenda," Review of Managerial Science, Springer, vol. 18(12), pages 3719-3774, December.
    20. Dafnis N. Coudounaris & Henrik G.S. Arvidsson, 2021. "Relationships between the Big-5 Model and Effectuation versus Causation Logics of Entrepreneurs in New Ventures: The Estonian IT Sector," Administrative Sciences, MDPI, vol. 11(4), pages 1-25, September.

    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:gam:jsusta:v:15:y:2023:i:10:p:8310-:d:1151135. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.