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Do Effectuation Processes Shape the Relationship between Product Diversification and Performance in New Ventures?

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  • Ioanna Deligianni
  • Irini Voudouris
  • Spyros Lioukas

Abstract

This study applies the lens of effectuation to product diversification and examines the moderating effects of effectuation processes on the relationship between diversification and performance in new ventures. Effectuation processes are conceptualized in terms of experimentation, affordable loss, flexibility, and pre–commitments. The findings indicate that, with the exception of affordable loss, effectuation processes exert a positive effect on the diversification–performance relationship. Theoretical and empirical implications are discussed.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:entthe:v:41:y:2017:i:3:p:349-377
    DOI: 10.1111/etap.12210
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