IDEAS home Printed from https://ideas.repec.org/a/kap/sbusec/v54y2020i3d10.1007_s11187-019-00155-8.html
   My bibliography  Save this article

Configurations of effectuation, causation, and bricolage: implications for firm growth paths

Author

Listed:
  • Wenwen An

    (Guangdong University of Technology)

  • Charles-Clemens Rüling

    (Grenoble Ecole de Management, Univ Grenoble Alpes CoMUE
    Université Savoie Mont Blanc)

  • Xin Zheng

    (Sun Yat-Sen University)

  • Jianqi Zhang

    (Sun Yat-Sen University)

Abstract

This study examines how firms’ decision-making logics and entrepreneurial resourcing behaviors combine to create value. We conduct a qualitative comparative analysis investigating configurations of effectuation, causation, and bricolage that are associated with firm performance. We consider firm size and development stage as contextual factors that differentiate the effectiveness of ways in which firms combine effectuation, causation, and bricolage. Using a sample of 305 Chinese firms, we find six solutions explaining entrepreneurial processes in high-performing firms. Based on a comparison of effective configurations across firm size and development stages, we theorize three paths along which small early-stage firms can evolve into large late-stage firms while maintaining high performance.

Suggested Citation

  • Wenwen An & Charles-Clemens Rüling & Xin Zheng & Jianqi Zhang, 2020. "Configurations of effectuation, causation, and bricolage: implications for firm growth paths," Small Business Economics, Springer, vol. 54(3), pages 843-864, March.
    • Handle: RePEc:kap:sbusec:v:54:y:2020:i:3:d:10.1007_s11187-019-00155-8
    DOI: 10.1007/s11187-019-00155-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11187-019-00155-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11187-019-00155-8?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. 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. Niina Nummela & Sami Saarenketo & Päivi Jokela & Sharon Loane, 2014. "Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies," Management International Review, Springer, vol. 54(4), pages 527-550, August.
    3. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    4. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    5. Daniel Appelhoff & René Mauer & Veroniek Collewaert & Malte Brettel, 2016. "The conflict potential of the entrepreneur’s decision-making style in the entrepreneur-investor relationship," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 601-623, June.
    6. Bryan T. Stinchfield & Reed E. Nelson & Matthew S. Wood, 2013. "Learning from Levi–Strauss’ Legacy: Art, Craft, Engineering, Bricolage, and Brokerage in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 37(4), pages 889-921, July.
    7. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, December.
    8. Patricia Doyle Corner & Marcus Ho, 2010. "How Opportunities Develop in Social Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(4), pages 635-659, July.
    9. Cheng, Cheng-Feng & Chang, Man-Ling & Li, Chu-Shiu, 2013. "Configural paths to successful product innovation," Journal of Business Research, Elsevier, vol. 66(12), pages 2561-2573.
    10. Brinckmann, Jan & Grichnik, Dietmar & Kapsa, Diana, 2010. "Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 24-40, January.
    11. Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(2), pages 124-141, March.
    12. 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.
    13. Wagemann, Claudius & Buche, Jonas & Siewert, Markus B., 2016. "QCA and business research: Work in progress or a consolidated agenda?," Journal of Business Research, Elsevier, vol. 69(7), pages 2531-2540.
    14. Read, Stuart & Song, Michael & Smit, Willem, 2009. "A meta-analytic review of effectuation and venture performance," Journal of Business Venturing, Elsevier, vol. 24(6), pages 573-587, November.
    15. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2009. "Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices," Journal of Business Venturing, Elsevier, vol. 24(4), pages 287-309, July.
    16. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    17. Jonas Gabrielsson & Diamanto Politis, 2011. "Career motives and entrepreneurial decision-making: examining preferences for causal and effectual logics in the early stage of new ventures," Small Business Economics, Springer, vol. 36(3), pages 281-298, April.
    18. 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.
    19. Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 35(4), pages 334-334, July.
    20. 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.
    21. Ragin, Charles C., 2006. "Set Relations in Social Research: Evaluating Their Consistency and Coverage," Political Analysis, Cambridge University Press, vol. 14(3), pages 291-310, July.
    22. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    23. H. Robert Dodge & Sam Fullerton & John E. Robbins, 1994. "Stage of the organizational life cycle and competition as mediators of problem perception for small businesses," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 121-134, February.
    24. Steven H. Hanks & Collin J. Watson & Erik Jansen & Gaylen N. Chandler, 1994. "Tightening the Life-Cycle Construct: A Taxonomic Study of Growth Stage Configurations in High-Technology Organizations," Entrepreneurship Theory and Practice, , vol. 18(2), pages 5-29, January.
    25. Pramodita Sharma & Carlo Salvato, 2011. "Commentary: Exploiting and Exploring New Opportunities over Life Cycle Stages of Family Firms," Entrepreneurship Theory and Practice, , vol. 35(6), pages 1199-1205, November.
    26. Jane W. Lu & Paul W. Beamish, 2001. "The internationalization and performance of SMEs," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 565-586, June.
    27. Wai-sum Siu & Zhi-chao Liu, 2005. "Marketing in Chinese Small and Medium Enterprises (SMEs): The State of the Art in a Chinese Socialist Economy," Small Business Economics, Springer, vol. 25(4), pages 333-346, November.
    28. Marta A. Geletkanycz, 1997. "The salience of ‘culture’s consequences’: the effects of cultural values on top executive commitment to the status quo," Strategic Management Journal, Wiley Blackwell, vol. 18(8), pages 615-634, September.
    29. Rajshree Agarwal & David B. Audretsch, 2001. "Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 21-43, March.
    30. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
    31. Paul Steffens & Per Davidsson & Jason Fitzsimmons, 2009. "Performance Configurations over Time: Implications for Growth– and Profit–Oriented Strategies," Entrepreneurship Theory and Practice, , vol. 33(1), pages 125-148, January.
    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. Reypens, Lina & Bacq, Sophie & Milanov, Hana, 2021. "Beyond bricolage: Early-stage technology venture resource mobilization in resource-scarce contexts," Journal of Business Venturing, Elsevier, vol. 36(4).
    2. Du, Yunzhou & Kim, Phillip H., 2021. "One size does not fit all: Strategy configurations, complex environments, and new venture performance in emerging economies," Journal of Business Research, Elsevier, vol. 124(C), pages 272-285.
    3. Bai, Wensong & Johanson, Martin & Oliveira, Luis & Ratajczak-Mrozek, Milena & Francioni, Barbara, 2022. "Where business networks and institutions meet: Internationalization decision-making under uncertainty," Journal of International Management, Elsevier, vol. 28(1).
    4. Laurence Cohen & Peter Wirtz, 2022. "Decision-making style in entrepreneurial finance and growth," Small Business Economics, Springer, vol. 59(1), pages 183-210, June.
    5. Paul Muller & Bérangère L. Szostak & Thierry Burger-Helmchen, 2020. "The role of middleground's entrepreneurial activities for the circulation of creative ideas. The case of Krautrock Music [Le rôle d’intermédiation des activités entrepreneuriales du middleground da," Post-Print hal-03539612, HAL.
    6. Shuangfa Huang & David Pickernell & Martina Battisti & Thang Nguyen, 2022. "Signalling entrepreneurs’ credibility and project quality for crowdfunding success: cases from the Kickstarter and Indiegogo environments," Small Business Economics, Springer, vol. 58(4), pages 1801-1821, April.
    7. Liang Wu & Heng Liu, 2022. "How bricolage influences green management in high‐polluting manufacturing firms: The role of stakeholder engagement," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3616-3634, November.
    8. Zhishan Yan & Haiqing Hu, 2024. "Research on the Influencing Factors of Green Entrepreneurial Orientation of Manufacturing Start-ups," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12152-12176, September.
    9. Valerija Botric & Sonja Radas & Bruno Skrinjaric, 2023. "Gender differences in management styles during crisis and the effect on firm performance," Working Papers 2301, The Institute of Economics, Zagreb.
    10. Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2023. "The roles of innovation strategy and founding team diversity in new venture growth," Journal of Business Research, Elsevier, vol. 158(C).
    11. 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).
    12. Christopher Idemudia EBEGBETALE & Abdul-Hameed Adeola SULAIMON & Simeon Emezana IFERE, 2024. "Impact of Causation and Effectuation on Competitiveness among Nano Businesses in Nigeria," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 91-103, February.
    13. David J. Rapp, 2022. "Predictive vs. non-predictive entrepreneurial strategies: What’s the difference, anyway?," Review of Managerial Science, Springer, vol. 16(7), pages 2161-2179, October.
    14. Vuorio, Anna & Torkkeli, Lasse, 2023. "Dynamic managerial capability portfolios in early internationalising firms," International Business Review, Elsevier, vol. 32(1).
    15. Mansi Singh & Sanjay Dhir & Harsh Mishra, 2024. "Synthesizing research in entrepreneurial bootstrapping and bricolage: a bibliometric mapping and TCCM analysis," Management Review Quarterly, Springer, vol. 74(1), pages 487-520, February.
    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. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.
    18. 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).
    19. Shilei Hu & Xiaohong Wang, 2021. "The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?," Sustainability, MDPI, vol. 13(3), pages 1-23, January.
    20. 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).
    21. Qi Song & Xiaohong Chen & Hao Gu, 2023. "How Technological, Organizational, and Environmental Factors Drive Enterprise Digital Innovation: Analysis Based on the Dynamic FsQCA Approach," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    22. 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.
    23. Tobias Kollmann & Simon Hensellek & Philipp Benedikt Jung & Katharina de Cruppe, 2023. "How bricoleurs go international: a European cross-country study considering the moderating role of governmental entrepreneurship support programs," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1126-1159, June.

    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Yu, Xiaoyu & Tao, Yida & Tao, Xiangming & Xia, Fan & Li, Yajie, 2018. "Managing uncertainty in emerging economies: The interaction effects between causation and effectuation on firm performance," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 121-131.
    8. 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).
    9. 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.
    10. 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.
    11. Ioanna Deligianni & Irini Voudouris & Spyros Lioukas, 2017. "Do Effectuation Processes Shape the Relationship between Product Diversification and Performance in New Ventures?," Entrepreneurship Theory and Practice, , vol. 41(3), pages 349-377, May.
    12. 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.
    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. Villani, Elisa & Linder, Christian & Grimaldi, Rosa, 2018. "Effectuation and causation in science-based new venture creation: A configurational approach," Journal of Business Research, Elsevier, vol. 83(C), pages 173-185.
    15. Sebastian Markus Szambelan & Yi Dragon Jiang, 2020. "Effectual control orientation and innovation performance: clarifying implications in the corporate context," Small Business Economics, Springer, vol. 54(3), pages 865-882, March.
    16. Deligianni, Ioanna, 2023. "Revisiting the relationship between product and international diversification in new ventures: The moderating effect of effectuation processes," International Business Review, Elsevier, vol. 32(1).
    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. 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.
    19. 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.
    20. Stroe, Silvia & Parida, Vinit & Wincent, Joakim, 2018. "Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy," Journal of Business Research, Elsevier, vol. 89(C), pages 265-272.

    More about this item

    Keywords

    Effectuation; Causation; Bricolage; Firm performance; Qualitative comparative analysis (QCA);
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    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:kap:sbusec:v:54:y:2020:i:3:d:10.1007_s11187-019-00155-8. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.