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Influence of subjective interpretation, causation, and effectuation on initial venture sale

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  • Parida, Vinit
  • George, Nerine Mary
  • Lahti, Tom
  • Wincent, Joakim

Abstract

This study investigates the influence of subjective interpretations of strategy-relevant cues, specifically, perceived control/uncontrol and perceived gain/loss, on the relationship between causation or effectuation approach and the likelihood of initial venture sales. The results support the greater likelihood of initial sales when the entrepreneur increasingly relies on causation (albeit at low to medium levels) and has a greater perception of control. Similarly, perceived gains (instead of losses) strengthen the positive relationship between effectuation and initial sales. These results extend previous research on influence of the perceptions of control/uncontrol and gain/loss by supporting the influence of such subjective interpretations for strategic decision making. Furthermore, this study responds to recent calls for research on the different interpretations of the same environmental conditions and the resulting consequences for entrepreneurs.

Suggested Citation

  • Parida, Vinit & George, Nerine Mary & Lahti, Tom & Wincent, Joakim, 2016. "Influence of subjective interpretation, causation, and effectuation on initial venture sale," Journal of Business Research, Elsevier, vol. 69(11), pages 4815-4819.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:11:p:4815-4819
    DOI: 10.1016/j.jbusres.2016.04.036
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    3. 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.
    4. 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.
    5. Idris Oyewale Oyelakin & Satirenjit Kaur Johl, 2022. "Does ISO 14001 and Green Servitization Provide a Push Factor for Sustainable Performance? A Study of Manufacturing Firms," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    6. Mansura Akter & Mahfuzur Rahman & Dragana Radicic, 2019. "Women Entrepreneurship in International Trade: Bridging the Gap by Bringing Feminist Theories into Entrepreneurship and Internationalization Theories," Sustainability, MDPI, vol. 11(22), pages 1-28, November.

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