IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v8y2018i1d10.1186_s40497-018-0108-4.html
   My bibliography  Save this article

Does effectuation apply across cultures? A study amongst entrepreneurs in Kuwait

Author

Listed:
  • Rodrigo Magalhaes

    (Kuwait College of Science and Technology)

  • Mohamed A. Abouzeid

    (Amwal Financial Consultants)

Abstract

This exploratory study is aimed at examining the entrepreneurial process in the light of the cultural attributes of Kuwaiti society, using Effectuation theory as the epistemological background. The research question is centred on whether or not the principles of effectuation hold in the cultural context of Kuwait. A qualitative research methodology was followed with the analysis of the interviews using the “Nvivo” Qualitative Analysis Software. From a sample of 13 entrepreneurs, the findings show that, in the main, entrepreneurs favour an effectual approach in the setting up of new ventures. The results also suggest that some cultural dimensions inherent to the Kuwaiti culture, such as high uncertainty avoidance, are not a hindrance to the effectuation theory attributes of non-predictive control, affordable loss, partnerships and leveraging contingencies, as would be expected from the cultural profile of the society. Finally, it can be concluded that the dichotomy between effectuation and causation needs to be further researched taking into account not only cultural variables, but also variables of a social and economic nature. This study is unique in the sense that it brings together two variables that have been kept apart, effectuation and culture. It is also carried out in a geographical location where this type of research is very sparse.

Suggested Citation

  • Rodrigo Magalhaes & Mohamed A. Abouzeid, 2018. "Does effectuation apply across cultures? A study amongst entrepreneurs in Kuwait," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-18, December.
  • Handle: RePEc:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0108-4
    DOI: 10.1186/s40497-018-0108-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40497-018-0108-4
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1186/s40497-018-0108-4?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
    ---><---

    References listed on IDEAS

    as
    1. McGrath, Rita Gunther & MacMillan, Ian C. & Yang, Elena Ai-Yuan & Tsai, William, 1992. "Does culture endure, or is it malleable? Issues for entrepreneurial economic development," Journal of Business Venturing, Elsevier, vol. 7(6), pages 441-458, November.
    2. Sarasvathy, Saras D., 2003. "Entrepreneurship as a science of the artificial," Journal of Economic Psychology, Elsevier, vol. 24(2), pages 203-220, April.
    3. 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.
    4. 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.
    5. Peter W. Moroz & Kevin Hindle, 2012. "Entrepreneurship as a Process: Toward Harmonizing Multiple Perspectives," Entrepreneurship Theory and Practice, , vol. 36(4), pages 781-818, July.
    6. Rainer Harms & Holger Schiele, 2012. "Antecedents and consequences of effectuation and causation in the international new venture creation process," Journal of International Entrepreneurship, Springer, vol. 10(2), pages 95-116, June.
    7. 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.
    8. Thomas Gries & Wim Naudé, 2010. "Entrepreneurship and structural economic transformation," Small Business Economics, Springer, vol. 34(1), pages 13-29, January.
    9. Geert Hofstede, 1983. "The Cultural Relativity of Organizational Practices and Theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(2), pages 75-89, June.
    10. Fredric William Swierczek & Truong Quang, 2004. "Entrepreneurial Cultures In Asia: Business Policy Or Cultural Imperative," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 12(02), pages 127-145.
    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Subeika Rizvi & Shahid Querishi & ErumZaidi & Muhammad Ali Saeed, 2018. "The Entrepreneurial Decision Making: Use Of Effectuation And Relation With Perceived Financial Performanceand Innovation In The Firm," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 14-12.
    8. Subeika Rizvi & Shahid Querishi & ErumZaidi & Muhammad Ali Saeed, 2018. "The Entrepreneurial Decision Making: Use Of Effectuation And Relation With Perceived Financial Performanceand Innovation In The Firm," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 10-22.
    9. 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.
    10. 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.
    11. Xiaoming Yang & Sunny Li Sun & Xiangyang Zhao, 2019. "Search and execution: examining the entrepreneurial cognitions behind the lean startup model," Small Business Economics, Springer, vol. 52(3), pages 667-679, March.
    12. Marine Agogue & Mats Lundqvist & Karen Williams Middleton, 2015. "Mindful Deviation through Combining Causation and Effectuation: A Design Theory-Based Study of Technology Entrepreneurship," Post-Print hal-01196125, HAL.
    13. 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.
    14. Yu-Te Liu, 2019. "Exploring the role of original aspiration in effectuation tendency," International Entrepreneurship and Management Journal, Springer, vol. 15(3), pages 977-1016, September.
    15. 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.
    16. 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.
    17. 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.
    18. 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.
    19. 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.
    20. Benedetto Cannatelli & Matteo Pedrini & Michael Braun, 2019. "Individual-level antecedents of the entrepreneurial approach: the role of different types of passion in the Italian craft brewing industry," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1193-1219, December.

    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:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0108-4. 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.